Income tax law
M. Nurunnabi, Rajshahi
Although in the income tax law profit includes loss, but that is not for imposition of tax but for other purposes, such as computation of Entertainment Allowance. But in the budget of this year a provision has been made for imposition of tax on the turnover of a Private Limited Company even if it incurs loss. If the honourable finance minister had the desire to impose tax on the turnover even if there is loss, he could arrange to pass such a law under the caption, "Turnover Tax" separately. The insertion of the section in the law of Income tax has affected the norms of the income tax law adversely. From both the legal and the social perspective this new law is unjust and illegal as the object of the law of income tax is to impose tax on a person in relation to his income not loss and till now there was no tax on the loss of any person but this year the Private Limited Company will have to bear the burden of tax even if it incurs loss. The lawyers, especially those who practice in income tax law, are supposed to be enlightened to understand the effect of this new law imposing tax on the Private Limited Company even if it is a losing concern.
|
|
