What is Income tax slab?
An income tax slab is a band of income taxed at a given rate. Payroll deduction applies the slabs to an employee's taxable income for the year and spreads the resulting tax across the months.
An income tax slab is a band of income taxed at a given rate. Payroll deduction applies the slabs to an employee's taxable income for the year and spreads the resulting tax across the months.
In Bangladesh
Slabs, exemptions and the investment rebate are set out in the annual finance act and NBR circulars, and they change. Payroll software that hard codes them is wrong every July.
An example
An employee's annual taxable income is worked out, the slabs are applied, and the resulting tax is spread across the remaining months of the financial year rather than deducted in one painful month.
In SORS ERP
Tax slabs in SORS ERP are configurable per financial year, with employee tax declarations and automatic deduction inside the payroll run, so a change in the rules is a configuration change.
Also called
- In Bangla
- আয়কর স্তর
Questions
Answered plainly, including where the answer is no.
What happens when the slabs change?
They are configuration, set per financial year, so a change in the finance act is entered once and applies to the runs that follow. Software with the rates written into its code has to be updated by its vendor instead.
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