The IT 10BB Form, also known as the Statement of Lifestyle Expenses, is a detailed record that captures an individual’s lifestyle-related expenses for a given financial year. This form, attached to the income tax return, serves to document how the taxpayer’s income has been spent throughout the year.
It offers a clear breakdown of various lifestyle expenses, providing insight into the total amount spent and where the individual’s earnings were allocated. Additionally, the form includes important tax-related details such as any taxes paid, including TDS (Tax Deducted at Source), TCS (Tax Collected at Source), and other tax payments made during the financial year.
Overall, the IT 10BB Form gives a comprehensive view of both the taxpayer’s spending habits and their tax contributions for the year.
When to submit Statement of expenses relating to Lifestyle?
The “IT 10BB Form-Statement of expenses relating to Lifestyle”, have to be submitted along with your income tax return. For individual taxpayers, it is important to file this statement on or before Tax Day.
As outlined in Section 2(23) of the Income Tax Act 2023, Tax Day falls on November 30th for taxpayers who have previously filed an income tax return. For new taxpayers who have not yet filed, the deadline is extended to June 30th of the following year. Therefore, timely submission of the Statement of expenses relating to Lifestyle with your income tax return is a key part of fulfilling your tax obligations.
Who is to submit the Lifestyle Statement?
Under Section 168 of the Income Tax Act 2023, certain individual taxpayers are required to submit the “IT 10BB Form-Statement of expenses relating to Lifestyle”. According to the provisions as mentioned in Section 168 of the Income Tax Act 2023, the requirement to file the Lifestyle Expenses Statement applies to the following categories of individuals:
(a) Individuals whose total income exceeds Tk. 5 lac
The main condition for the mandatory filing of the “IT 10BB Form-Statement of expenses relating to Lifestyle” is based on the assessee’s total income. If an individual’s total income exceeds Tk. 500,000 in a financial year (July to June in Bangladesh), they are required to submit the IT 10BB Form. This income threshold is a key factor in determining whether an individual must disclose their lifestyle expenses, ensuring compliance for those earning above Tk. 5 lac during the specified period.
Example 1
Say, Mr. Rezaul had the following income sources as on 30 June 2024:
Source of Income | Amount |
Salary Income: | |
Basic Salary | 440,000 |
Festival bonus | 73,333 |
House rent allowance | 220,000 |
Medical allowance | 44,000 |
Conveyance allowance | 25,000 |
Other source of income: | |
Bank Interest | 12,000 |
Total | 814,333 |
Does he have to submit “IT 10BB Form-Statement of expenses relating to Lifestyle”?
Solution 1
| Calculation of Taxable Income | |||
| Components of Income | Amount | Amount | Amount |
| Income from Employment: | |||
| Basic Salary | 440,000 | ||
| Festival bonus | 73,333 | ||
| House rent allowance | 220,000 | ||
| Medical allowance | 44,000 | ||
| Conveyance allowance | 25,000 | ||
| Total | 802,333 | ||
| Less: Tax Exemption (1/3 of Salary or Tk. 450,000 whichever is lower) | 267,444 | ||
| Taxable Income from Employment | 534,889 | ||
| Add: Income from Financial Assets | |||
| Bank Interest | 12,000 | ||
| Total Taxable Income | 546,889 | ||
In this scenario, Mr. Rahim is required to file “IT 10BB Form-Statement of expenses relating to Lifestyle” for the assessment year 2023-2024. This obligation arises because his total taxable income has exceeded Tk. 500,000, thus meeting the threshold for filing a Lifestyle Statement. As per Section 168 of the Income Tax Act 2023, individuals like Mr. Rezaul, with a total income exceeding Tk. 5 lac in the relevant financial year, must submit details of their “IT 10BB Form-Statement of expenses relating to Lifestyle” as part of their tax return filling.
(b) Individuals who own a motor car
Regardless of the total income, owning a motor car at any point in the fiscal year triggers the requirement to file the “IT 10BB Form-Statement of expenses relating to Lifestyle”. This obligation is independent of the individual’s income.
The requirement to file “IT 10BB Form-Statement of expenses relating to Lifestyle” is not based on the individual’s income alone. Instead, if a person owns a motor car at any time during the financial year, they must submit “IT 10BB Form-Statement of expenses relating to Lifestyle”, regardless of their income level. This rule highlights that owning a motor car is the key factor for filing lifestyle expenses, regardless of the person’s total income for the year.
Example 2
Ms. Farjana Chowdhury resides in the Rampur area of Dhaka. She is working as Brand Manager in a FMCG company. His salary details are as follows:
Source of Income | Amount |
Salary Income: | |
Basic Salary | 305,000 |
Festival bonus | 69,167 |
House rent allowance | 67,500 |
Medical allowance | 21,500 |
Conveyance allowance | 10,000 |
Other source of income: | |
Bank Interest | 12,000 |
Total | 485,167 |
Moreover, she owns a private car below 1500cc of Toyota Axio Brand. Shall she be required to file “IT 10BB Form-Statement of expenses relating to Lifestyle”?
Solution 2
| Calculation of Taxable Income | |||
| Components of Income | Amount | Amount | Amount |
| Income from Employment: | |||
| Basic Salary | 305,000 | ||
| Festival bonus | 69,167 | ||
| House rent allowance | 67,500 | ||
| Medical allowance | 21,500 | ||
| Conveyance allowance | 10,000 | ||
| Total | 473,167 | ||
| Less: Tax Exemption (1/3 of Salary or Tk. 450,000 whichever is lower) | 157,722 | ||
| Taxable Income from Employment | 315,445 | ||
| Add: Income from Financial Assets | |||
| Bank Interest | 12,000 | ||
| Total Taxable Income | 327,445 | ||
In this situation, even though Ms. Farjana Chowdhury’s total income is below Tk. 5 lac, she is still required to file “IT 10BB Form-Statement of expenses relating to Lifestyle”. This obligation is due to her ownership of a motor car, which, under the rules, necessitates the submission of lifestyle expenses.
In this case, the filing requirement is based on car ownership, not the total income exceeding Tk. 5 lac. As a result, Ms. Farjana Chowdhury must submit the “IT 10BB Form-Statement of expenses relating to Lifestyle” despite her lower income.
(c) Individuals who have income from Business
Additionally, the requirement to file a Lifestyle Statement applies to anyone with income from business activities during a financial year. Regardless of the total income amount, individuals earning from business must submit “IT 10BB Form-Statement of expenses relating to Lifestyle”. This rule highlights that engaging in business, rather than reaching a certain income level, triggers the obligation to report lifestyle expenses.
Example 3
Mr. Solaiman owns a business called “Solaiman Trading” in Mirpur 2, Dhaka. For the year ending June 30, 2024, the business made a profit of Tk. 400,000. Does he have to submit “IT 10BB Form-Statement of expenses relating to Lifestyle”?
Solution 3
Yes, based on the information provided, Mr. Solaiman must file “IT 10BB Form-Statement of expenses relating to Lifestyle”. This obligation arises because he earned income from his business, Solaiman Trading, which made a profit of Tk. 400,000 in the financial year ending on June 30, 2024. As per the rule, anyone with business income in a financial year is required to file a Lifestyle Statement, regardless of the income amount. Therefore, Mr. Solaiman is required to submit the statement due to the income from his trading business.
(d) Shareholder director of a company
If an individual serves as a shareholder director in a company, they must file “IT 10BB Form-Statement of expenses relating to Lifestyle”. In this case, the requirement to submit the “IT 10BB Form-Statement of expenses relating to Lifestyle” is not dependent on the person’s income. Instead, it is the role of shareholder director that triggers the obligation to disclose “IT 10BB Form-Statement of expenses relating to Lifestyle”, irrespective of their income level.
Example 4
Mr. Mahbub Karim is the founder of ABC Limited. He bought 20,000 shares in the company and holds the position of executive director. During the year from July 01, 2023 to June 30, 2024, he received an honorarium of Tk. 450,000 from ABC Limited. Is he supposed to submit “IT 10BB Form-Statement of expenses relating to Lifestyle”?
Solution 4
In this case, Mr. Karim must file “IT 10BB Form-Statement of expenses relating to Lifestyle” even though his income is below Tk. 5 lac. This requirement is due to his role as a shareholder director in a company. The need to submit the “IT 10BB Form-Statement of expenses relating to Lifestyle” is based on his position rather than his income level. Therefore, Mr. Karim is required to file the statement because of his role.
(e) Made investment in house property or Apartment in city corporation area
The obligation to file “IT 10BB Form-Statement of expenses relating to Lifestyle” is based on a specific condition – if an individual invests in house property or apartments within a city corporation area. This requirement is also independent of the individual’s asset value or income level.
Example 5
Mr. Shamin Hossain lives in an apartment in Badda, Dhaka. On May 22, 2024, he bought a 1500 square feet apartment. He has following assets as of June 30, 2024.
Particulars | Amount |
Bank balance: | |
Dhaka Bank | 113,050 |
Dutch Bangla Bank | 342,800 |
AB Bank | 127,300 |
Cash in hand | 502,000 |
Does he need to file “IT 10BB Form-Statement of expenses relating to Lifestyle”?
Solution 5
Yes, according to the information given, Mr. Hossain must file “IT 10BB Form-Statement of expenses relating to Lifestyle”. This requirement is due to his investment in house property located within a city corporation area. The obligation to file the statement is triggered by this investment, regardless of other factors.
Voluntary Submission of “IT 10BB Form-Statement of expenses relating to Lifestyle”
Under the rules for filing Lifestyle Expenses, some individuals are required to submit these statements. However, even if an individual is not obligated to file based on the criteria, they can still choose to do so voluntarily. In other words, those who are not subject to mandatory filing can opt to submit “IT 10BB Form-Statement of expenses relating to Lifestyle” if they wish to share the details about their lifestyle expenditures. This voluntary option allows individuals to provide extra information, even if it is not required.
Submission of “IT 10BB Form-Statement of expenses relating to Lifestyle” as per Notice of DCT
According to Section 168(2) of Income Tax Act 2023, the DCT may issue a notice requiring an individual to submit their “IT 10BB Form-Statement of expenses relating to Lifestyle” within the specified deadline. If such a notice is served, you must submit the form as instructed, without exception. In this case, there’s no need to link whether the conditions of Section 168 of Income Tax Act 2023 as mentioned above are met. Once the DCT wants it, compliance with the notice is mandatory.
Conclusion
In summary, the obligation to submit the ““IT 10BB Form-Statement of expenses relating to Lifestyle”” depends on various factors, not just income levels. These include investment in house property, ownership of certain assets, types of income and roles like directorship. It’s important to be aware of these requirements to ensure compliance with Bangladesh’s tax laws.
IT 10BB Form-Statement of expenses relating to Lifestyle – Reference/ Source:
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