Assets and Liabilities Statement IT 10B – An Assets and Liability Statement, also known as IT 10B, is a form used to represent the financial status of an individual at the end of a financial year. It provides a comprehensive overview of the assessee’s assets and liabilities, offering insights into their financial standing. The statement is an integral part of an income tax return, serving as a valuable tool for tax authorities to assess an individual’s tax liability.
The Assets and Liability Statement IT 10B details the types and values of assets owned by the assessee, such as property, investments, and cash. It also outlines the various liabilities they owe, including loans, debts etc. By understanding the composition of an assessee’s assets and liabilities, tax authorities can gain a clear picture of their financial situation, enabling them to accurately determine their tax obligations.
In some countries, the Assets and Liability Statement IT 10B is referred to as a wealth statement, emphasizing its role in assessing an individual’s overall financial well-being.
When to submit Assets and liabilities statement IT 10B ?
The Assets and Liability Statement IT 10B must be submitted along with the income tax return. The deadline for submitting the income tax return depends on the assessee’s status:
Old assessee: An individual who has filed income tax returns in previous years is considered an old assessee. For old assessees, the due date for submitting the income tax return, including the Assets and Liability Statement IT 10B, is November 30th. However, the Authority can extend it anytime.
New assessee: An individual who has not filed income tax returns in previous years is considered a new assessee. For new assessees, the due date for submitting the income tax return, including the Assets and Liability Statement IT 10B, is June 30th of the following year.
Who is to submit the assets liability statement IT 10B ?
As per section 167 of the Income Tax Act 2023, following individual assessee shall file an Assets and liabilities Statement IT 10B:
(i) If the value of total assets exceeds Tk. 40 lac
The primary condition for the obligation to file an Assets and Liabilities Statement IT 10B is dependent upon the value of one’s assets. Specifically, if the gross wealth, representing the total value of assets, exceeds Tk. 4,000,000 at the end of a financial year, it becomes mandatory for the individual to submit the Assets and Liabilities Statement IT 10B.
Example 1
Say, Mr. Rahim had the following assets as on 30 June 2022:
| Particulars | As on 30 June 2022 |
| Bangladesh Sanchaypatra | 1,000,000 |
| DPS (in Prime Bank) | 50,000 |
| FDR (in Brac Bank) | 200,000 |
| Funiture and fixtures | 780,000 |
| Bank balance:- | |
| Dhaka Bank | 123,450 |
| Dutch Bangla Bank | 446,800 |
| AB Bank | 87,300 |
| Cash in hand | 352,000 |
| Balance of Provident fund | 220,352 |
| Total | 3,259,902 |
During the year from 01 July 22 to 30 June 2023 he purchased a Sanchayapatra of Tk. 500,000. Moreover, he paid DSP installments of Tk. 10,000/month. His cash, bank and other assets balance position as on 30 June 2023 are as follows:
| Particulars | Amount |
| Bank balance:- | |
| Dhaka Bank | 113,050 |
| Dutch Bangla Bank | 342,800 |
| AB Bank | 127,300 |
| Cash in hand | 502,000 |
| Balance of Provident fund | 620,352 |
Solution 1
In the given situation, it is noteworthy that Mr. Rahim is not required to submit the Assets and Liabilities Statement IT 10B for the financial year 2021-2022, given that the value of his assets did not exceed Tk. 40 lac during that period. However, a change in circumstances arises in the subsequent financial year, 2022-2023. In this fiscal year, Mr. Rahim becomes obligated to file the Assets and Liabilities Statement IT 10B as the value of his assets exceeds Tk. 40 lac.
Total assets on 30 June 2023:
| Particulars | As on 30 June 2023 |
| Bangladesh Sanchaypatra | 1,500,000 |
| DPS (in Prime Bank) | 170,000 |
| FDR (in Brac Bank) | 200,000 |
| Funiture and fixtures | 780,000 |
| Bank balance: | |
| Dhaka Bank | 113,050 |
| Dutch Bangla Bank | 342,800 |
| AB Bank | 127,300 |
| Cash in hand | 502,000 |
| Balance of Provident fund | 620,352 |
| Total | 4,355,502 |
(ii) Owns motor car
In the event that an individual assessee owns a motor car at any point during the income year, it becomes mandatory for them to file an Assets and Liabilities Statement IT 10B. It’s crucial to note that this requirement is independent of whether the individual has earned any income during the year. Additionally, the condition stipulating a Tk. 40 lac threshold for assets, as mentioned previously, is not interconnected with this particular condition. The ownership of a motor car during the income year serves as a distinct criterion triggering the necessity to submit the Assets and Liabilities Statement, underscoring the multifaceted nature of compliance criteria in the tax framework.
Example 2
In the case of Ms. Tania Chowdhury, who resides in the Santinagor area of Dhaka and works as a Sales Manager in an FMCG company, as of 30th June 2023 she had 5 lac Sanchayapatra and Tk. 121,450 in her bank account. Additionally, she owns a private car of the Toyota Axio brand with an engine capacity below 1500cc. Notably, no other assets are held by her at the end of the financial year 2022-2023.
Shall he be required to file assets and liabilities statement IT 10B?
Solution 2
In evaluating the total asset value, it is evident that Ms. Tania Chowdhury’s assets do not exceed Tk. 40 lac. Considering this specific threshold, she may be exempted from the obligation to file the Assets and Liabilities Statement IT 10B. However, it’s crucial to note that a separate criterion comes into play when she owns a motor car, irrespective of the overall asset value.
In this scenario, the ownership of a motor car becomes a distinct requirement triggering the need for filing the Assets and Liabilities Statement IT 10B, independent of the total asset value. Therefore, although Ms. Tania Chowdhury’s total assets fall below Tk. 40 lac, the ownership of a motor car necessitates her compliance with the filing obligation for the Assets and Liabilities Statement IT 10B. This illustrates the nuanced nature of filing criteria, where specific asset ownership, such as a motor car, can override other considerations in determining filing requirements under the tax regulations.
(iii) Made investment in house property or Apartment in city corporation area
The obligation to file an Assets and Liabilities Statement IT 10B is triggered by a distinct condition – the investment in house property or apartments situated in any city corporation area. Importantly, this condition is independent and bears no correlation with the total value of assets or the income of the individual.
In simpler terms, if an individual makes an investment in residential properties or apartments within the jurisdiction of any city corporation area, they are required to submit the Assets and Liabilities Statement IT 10B, irrespective of the overall value of their assets or their income.
Example 3
Mr. Shamin Hossain resides in Badda area in an Apartment in Dhaka. As on 22 May 2023, he purchased an apartment of 1500 sft. He had the following assets on 30 June 2023:
| Particulars | Amount |
| Bangladesh Sanchayapatra | 800,000 |
| Bank balance | |
| Dhaka Bank | 113,050 |
| Dutch Bangla Bank | 342,800 |
| AB Bank | 127,300 |
| Cash in hand | 502,000 |
| Balance of Provident fund | 620,352 |
Solution 3
Given that Mr. Hossain has made an investment in a house property within a city corporation area, he is obligated to file the Assets and Liabilities Statement IT 10B. This filing requirement is specifically tied to the independent condition of investing in house property within the jurisdiction of a city corporation area, emphasizing the importance of disclosing such investments for regulatory compliance.
(iv) Shareholder director of a company
As per the stipulated regulations, if an individual is employed as a shareholder director in a company, regardless of their income or the total value of their assets, they are obligated to file an Assets and Liabilities Statement IT 10B.
Example 4
Mr. Mahbub Karim is a founder of ABC Limited. He subscribed 20,000 shares in ABC Limited and nominated as executive director in the company. At the end of 30 June 2023, his asset and liabilities position are as follows:
| Particulars | Amount |
| Bangladesh Sanchayapatra | 1,200,000 |
| Shareholding in ABC Limited | 200,000 |
| Bank balance | |
| Dhaka Bank | 213,050 |
| Dutch Bangla Bank | 362,800 |
| AB Bank | 128,300 |
| Cash in hand | 122,000 |
Does he require to submit Assets and liabilities statement IT 10B?
Solution 4
In evaluating Mr. Karim’s situation, it is observed that, based on the value of his assets alone, he may not be required to file the Assets and Liabilities Statement IT 10B since his assets are below Tk. 40 lac. However, a distinct and independent criterion comes into play due to his role as a shareholder director in a company. In this capacity, Mr. Karim is mandated to file the Assets and Liabilities Statement (IT 10B), irrespective of the value of his assets. Thus, while the assets’ value might not trigger the filing requirement, his directorial role necessitates compliance with the filing obligation for the Assets and Liabilities Statement.
(v) Public servant
All government employees are obligated to file the Assets and Liabilities Statement IT 10B, and this obligation is irrespective of any specific conditions or criteria mentioned previously. It applies universally to every government employee, regardless of their position or other financial considerations.
Example 5
Ms. Rima Roy is a government service holder. He is working as an Assistant Teacher in a Govt primary school in Barishal. As of 30 June 2023 she has the following assets:
| Particulars | Amount |
| Balance in Post office savings account | 200,000 |
| FDR in Sonali Bank | 500,000 |
| Bank balance | |
| Sonali Bank | 13,050 |
| Dutch Bangla Bank | 62,800 |
| AB Bank | 128,300 |
| General Provident Fund (GPF) balance | 428,070 |
Solution 5
Absolutely, as a government employee, Mr. Roy is obligated to file the Assets and Liabilities Statement IT 10B mandatorily. In this case, the filing requirement is not contingent on any specific assets threshold or other financial conditions. It applies uniformly to all government employees.
(vi) Voluntary submission
The conditions mentioned previously outline the legal requirements mandating the filing of Assets and Liabilities Statements IT 10B for specific individuals, such as government employees, directors, or those holding certain assets. However, it’s important to note that even if an individual assessee is not obligated to file the statement as per the stipulated conditions, they still have the option to file such statements voluntarily.
Voluntarily filing an Assets and Liabilities Statement provides individuals with the opportunity to proactively disclose their financial information to the Tax Authority.
Other points to be considered when filing of Assets and liabilities statement IT 10B
Up to this point we have covered who is required file Assets and liability statement IT 10B. Now, consider some other law provisions regarding what types of assets will be added to Assets and liability statement IT 10B.
Inclusion of world assets and liabilities in case of “Resident Bangladeshi”
For tax purpose, a Resident Bangladeshi is defined as an individual who is both a tax resident and a citizen of Bangladesh. It’s important to highlight that for a resident Bangladeshi assessee, the Assets and Liabilities Statement IT 10B necessitates the disclosure of global assets.
In practical terms, this signifies that all assets and liabilities, irrespective of their location—whether within Bangladesh or outside its borders—must be included in the Assets and Liabilities Statement (IT 10B).
Assets and liabilities located in Bangladesh only in case of “Non-resident Bangladeshi”
For tax purposes, a “Non-Resident Bangladeshi” is defined as an individual who is not a tax resident but holds Bangladeshi citizenship. It is crucial to emphasize that, in the context of a non-resident Bangladeshi assessee, the Assets and Liabilities Statement IT 10B mandates the disclosure of only Bangladeshi assets.
In practical terms, this signifies that only assets and liabilities located within Bangladesh will be included in the Assets and Liabilities Statement (IT 10B) for non-resident Bangladeshi individuals.
For Expats working in Bangladesh
In accordance with local income tax regulations, expatriate employees are obligated to file both their income tax return and the Assets and Liabilities Statement IT 10B. Specifically for foreigners, the Assets and Liabilities Statement IT 10B is tailored to include only assets and liabilities situated within Bangladesh.
Assets and Liabilities of minor children and spouse
In cases where minor children and a spouse do not have a Taxpayer Identification Number (TIN) Certificate, the assets and liabilities of these individuals may be consolidated and added to the Assets and Liabilities Statement IT 10B of another person, presumably the taxpayer or the individual responsible for filing the statement.
Example 6
Mr. Atik Ahamed is a private service holder in a pharmaceutical company. His wife Ms. Shila Ahmed is a housewife and fully dependent on him. Ms. Shila doesn’t have any TIN Certificate and has not submitted her income tax return. During the year ended 30 June 2023, she did an FDR of Tk. 300,000 out of the money she received from her husband.
Solution 6
As per the solution, in Mr. Atik Ahamed’s tax return, the value of the FDR (Tk. 300,000) that was invested by Ms. Shila Ahmed using funds from her husband needs to be added to the Assets and Liabilities Statement of Mr. Atik Ahamed.
Assets and Liabilities Statement IT 10B
Assets and Liabilities Statement IT 10B – Reference/ Source:
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