The Income-tax Ordinance, 1984

An Ordinance to consolidate and amend the law relating to Income-tax. WHEREAS it is expedient to consolidate and amend the law relating to income-tax; NOW, THEREFORE, in pursuance of the Proclamation of the 24th March, 1982, and in exercise of all powers enabling him in this behalf, the President is pleased to make and promulgate the following Ordinance:-

Section 1. Short title and commencement

(1) This Ordinance may be called the Income-tax Ordinance, 1984.

(2) It shall come into force on the first day of July, 1984.

Section 2. Definitions

In this Ordinance, unless there is anything repugnant in the subject or context,-

(1) "agricultural income" means-

(2) "amalgamation", in relation to companies, means the merger of one or more companies with another company, or the merger of two or more companies to form one company (the company or companies which so merged being referred to as the amalgamating company or companies and the company with which they merge or which is formed as a result of the merger as the amalgamated company) in such a manner that by virtue of, and for reasons attributable to, the merger,-

¹(c) where the amalgamated company is a Bangladeshi company and the shareholders holding not less than 75% (seventy five percent) in value of the shares in the amalgamating company or companies (other than shares already held therein immediately before the merger by, or by a nominee for, the amalgamated company or its subsidiary) become shareholders of the amalgamated company; or

²(d) where the amalgamated company is a foreign company and the shareholders holding not less than 75% (seventy five percent) in value of the shares in the amalgamating foreign company or companies that directly or indirectly holds or hold shares in a Bangladeshi company or companies (other than shares already held therein immediately before the merger by, or by a nominee for, the amalgamated company or its subsidiary) become shareholders of the amalgamated company;

(3) "annual value" shall be deemed to be-

⁵ * * *

(4) "Appellate Joint Commissioner" means a person appointed to be an Appellate Joint Commissioner of Taxes under section 3 ⁶ , and includes a ⁷ an Appellate Additional Commissioner of Taxes ⁸ and also a person appointed to hold current charge of an Appellate Joint Commissioner of Taxes;

(5) "Appellate Tribunal" means the Taxes Appellate Tribunal established under section 11;

⁹ (5A) "approved gratuity fund" means a gratuity fund which has been and continues to be approved by the Board in accordance with the provisions of Part C of the First Schedule;

(6) "Approved superannuation fund" means a superannuation fund ¹⁰ or a pension fund which has been and continues to be approved by the Board in accordance with the provisions of Part A of the First Schedule;

(7) "Assessee", means a person by whom any tax or other sum of money is payable under this Ordinance, and includes-

¹¹ (aa) every person by whom a minimum tax is payable under this Ordinance;

(8) "assessment", with its grammatical variations and cognate expressions, includes re-assessment and additional or further assessment;

(9) "assessment year" means the period of twelve months commencing on the first day of July every year; and includes any such period which is deemed, under the provisions of this Ordinance, to be assessment year in respect of any income for any period;

(10) "Assistant Commissioner of Taxes" means a person appointed to be an Assistant Commissioner of Taxes under section 3;

(11) "Bangladeshi company" means a company formed and registered under the Companies Act, 1913 (VII of 1913) ¹² or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন), and includes a body corporate established or constituted by or under any law for the time being in force in Bangladesh having in either case its registered office in Bangladesh;

(12) "Banking company" has the same meaning as in ¹³ ব্যাংক-কোম্পানী আইন, ১৯৯১ (১৯৯১ সনের ১৪ নং আইন), and includes any body corporate established or constituted by or under any law for the time being in force which transacts the business of banking in Bangladesh;

¹⁴(12A) “bank transfer” includes transfer of money by crossed cheque, mobile financial services or any other digital means approved by the Bangladesh Bank;

(13) "Board" means the National Board of Revenue constituted under the National Board of Revenue Order, 1972(P. O. No. 76 of 1972);

(14) "business" includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture;

(15) "capital asset" means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include-

¹⁷ ***

¹⁸ (16) “charitable purpose” means-

Provided that the advancement of any other object of general public utility shall not be considered as charitable purpose, if it is not approved by the Board and involves-

(17) "chartered accountant" means a chartered accountant as defined in the Bangladesh Chartered Accountants Order, 1973(P.O. No. 2 of 1973);

(18) "child", in relation to any individual, includes a step-child and an adopted child of that individual;

¹⁹ (19) "Commissioner" means a person appointed to be a Commissioner of Taxes or Commissioner (Large Taxpayer Unit) under section 3, or a person appointed to hold current charge of a Commissioner of Taxes or Commissioner (Large Taxpayer Unit);

²⁰ (19A) "Commissioner (Appeals)" means a person appointed to be a ²¹ Commissioner of Taxes (Appeals) under section 3 and includes a person appointed to hold current charge of a Commissioner of Taxes (Appeal);

²² * * *

(20) "Company" means a company as defined in ²³ the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন) and includes-

^{25 26} (bb) an association or combination of persons, called by whatever name, if any of such persons is a company as defined in ²⁷ the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন);

(21) "co-operative society" means a co-operative society registered under ²⁹ সমবায় সমিতি আইন, ২০০১ (২০০১ সনের ৪৭ নং আইন) (Co-operative Societies Act, 2001)(Act No. 47 of 2001), or under any other law for the time being in force governing the registration of co-operative societies;

(22) "cost and management accountant" means a cost and management accountant as defined in the Cost and Management Accountants Ordinance, 1977 (LIII of 1977);

(23) "Deputy Commissioner of Taxes" means a person appointed to be a Deputy Commissioner of Taxes under section 3, ³⁰ and includes a person appointed to be a Transfer Pricing Officer, an Assistant Commissioner of Taxes, an Extra Assistant Commissioner of Taxes and a Tax Recovery Officer;

(24) "director" and "manager" in relation to a company have the meanings assigned to them in ³¹ the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন);

³² (25) "Director-General of Inspection" means a person appointed to be a Director-General of Inspection (Taxes) under section 3, and except for the purpose of section 117, includes a person appointed for the purpose of this Ordinance to be an Additional Director-General of Inspection (Taxes), a Deputy Director-General of Inspection (Taxes), or an Assistant Director-General of Inspection (Taxes);

³³ (25A) "Director General (Training)" means a person appointed to be Director General (Training);

³⁴ (25AA) "Director General, Central Intelligence Cell" means of persons appointed to be Director General, Central Intelligence Cell ³⁵ or ³⁶ any Director, Central Intelligence Cell or any Joint Director, Central Intelligence Cell or Deputy Director, Central Intelligence Cell or Assistant Director, Central Intelligence Cell authorised by him;

(26) "dividend" includes-

³⁷ (dd) any profit remitted outside Bangladesh by a company not incorporated in Bangladesh under কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন);

³⁸ (ddd) any distribution of profit of a mutual fund or an alternative investment fund;

but does not include-

³⁹ (iiia) any bonus share issued by a company;

⁴⁰ ***

Explanation.- The expression "accumulated profits",-

(27) "employer" includes a former employer;

(28) "employee", in relation to a company, includes the managing director, or any other director or other person, who, irrespective of his designation, performs any duties or functions in connection with the management of the affairs of the company;

⁴¹(28A) “export” means supply of goods and services from inside to outside the geographical limits of Bangladesh and shall include supply of locally manufactured raw materials and other inputs to export oriented industry under internal back to back letter of credit;

(29) "Extra Assistant Commissioner of Taxes" means a person appointed to be an Extra Assistant Commissioner of Taxes under section 3 ⁴² and includes a person appointed to hold current charge of an Extra Assistant Commissioner of Taxes;

⁴³ (30) "fair market value" means, in relation to capital asset ⁴⁴or a business or undertaking-

(31) "fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient, or consideration which would be income of the recipient classifiable under the head "Salaries" ⁴⁶ .

Explanation.- For the removal of doubts, it is hereby declared that in this clause, “fees for technical services” shall include technical services fee, technical assistance fee or any fee of similar nature;

⁴⁷ (31A) "financial institution" has the same meaning as assigned to it in আর্থিক প্রতিষ্ঠান আইন, ১৯৯৩ (১৯৯৩ সনের ২৭ নং আইন) (Financial Institution Act, 1993) (Act No. 27 of 1993);

(32) "firm" has the same meaning as assigned to it in the Partnership Act, 1932 (IX of 1932);

(33) "foreign company" means a company which is not a Bangladeshi company;

⁴⁸ (34) “income” includes-

⁴⁹ * * *

⁵⁰ (35) ⁵¹“income year” means financial year immediately preceding the assessment year and includes

Provided that the Deputy Commissioner of Taxes may allow a different financial year for a company which is a ⁵⁴ subsidiary, including a subsidiary thereof, or a holding company of a parent company incorporated outside Bangladesh or a branch or liaison office thereof if such company requires to follow a different financial year for the purpose of consolidation of its accounts with the parent company;

(36) "Inspecting Joint Commissioner" means a person appointed to be an Inspecting Joint Commissioner of Taxes under section 3 ⁵⁵ , and includes ⁵⁶ an Inspecting Additional Commissioner of Taxes ⁵⁷ and also a person appointed to hold current charge of an Inspecting Joint Commissioner of Taxes;

⁵⁸ (37) " Inspector" means an Inspector of Taxes under section 3 and also includes a person appointed to hold charge of an Inspector of Taxes;

(38) "Interest" means interest payable in any manner in respect of any money borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the money borrowed or debt incurred or in respect of any credit facility which has not been utilised;

(39) "legal representative" has the same meaning as assigned to it in section 2(11) of the Code of Civil Procedure, 1908 (Act V of 1908);

(40) "market value", in respect of agricultural produce, means-

(41) "money borrowed" includes, in the case of a banking company, money received by way of deposit;

(42) "non-resident" means a person who is not a resident;

(43) "partner" has the same meaning as assigned to it in the Partnership Act, 1932 (IX of 1932), and includes a person who, being a minor, has been admitted to the benefits of partnership;

(44) "partnership" has the same meaning as assigned to it in the Partnership Act, 1932 (IX of 1932);

⁵⁹ (44A) “permanent establishment”, in relation to income from business or profession, means a place or activity through which the business or profession of a person is wholly or partly carried on, and includes-

⁶⁰ (45) "perquisite" means-

⁶² 46) “person” includes an individual, a firm, an association of persons, a Hindu undivided family, a trust, a fund, a local authority, a company, an entity and every other artificial juridical person;

(46A) “person with disability” means an individual registered as প্রতিবন্ধী ব্যক্তি (person with disability) under section 31 of প্রতিবন্ধী ব্যক্তির অধিকার ও সুরক্ষা আইন, ২০১৩ (২০১৩ সনের ৩৯ নং আইন);

(47) "prescribed" means prescribed by rules made under this Ordinance;

(48) "principal officer", used with reference to a local authority, a company, any other public body or any association of persons, includes-

(49) "profession" includes a vocation;

(50) "profits in lieu of salary" includes-

(51) "public servant" has the same meaning as in section 21 of the Penal Code (Act No. XLV of 1860);

(52) "recognised provident fund" means a provident fund which has been, and continues to be, recognised by the Commissioner in accordance with the provisions of Part B of the First Schedule;

⁶⁴ * * *

(54) "relative", in relation to an individual, means the husband, wife, brother, sister or any lineal ascendant or descendant of that individual;

⁶⁵(54A)“research and development” means any systematic, investigative and experimental study that involves novelty or technical risk carried out in the field of science or technology with the object of acquiring new knowledge or using the results of the study for the production or improvement of materials, devices, products, produce, or processes, but does not include­­-

(55) "resident", in respect of any income year, means-

⁶⁸ (d) a trust, a fund or an entity, the control and management of whose affairs is situated wholly in Bangladesh in that year; and

   (e) a local authority and every other artificial juridical person;

(56) "royalty" means consideration (including any lump sum consideration but excluding any consideration which is classifiable as income of the recipient under the head "Capital gains") for-

⁶⁹Explanation 1.¾For the purpose of royalty in respect of any right, property or information, it is not necessary that¾

Explanation 2.¾For the removal of doubts, it is hereby clarified that the expression “process” includes transmission by satellite (including up-linking, amplification, conversion for down-linking of any signal), cable, optical fibre or by any other similar technology, whether or not such process is secret;

(57) "rules" means rules made under this Ordinance;

(58) "salary" includes-

⁷⁰ (a) any pay or wages;

⁷¹ (e) any leave encashment;

(59) "scheduled bank" has the same meaning as in the Bangladesh Bank Order, 1972(P. O. No. 127 of 1972);

⁷² ***

(60) "shareholder" includes a preference shareholder;

(61) "speculation-business" means business in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scripts, but does not include business in which-

⁷³(61A) “supply of goods” means transfer of the right of goods by way of sale, exchange or otherwise including sale under hire purchase agreement or finance lease;

⁷⁴ (62) "tax" means the income tax payable under this Ordinance and includes any additional tax, excess profit tax, penalty, interest, fee or other charges leviable or payable under this Ordinance;

⁷⁵ (62A) “Tax Day” means-

⁷⁷(iia) in the case of an assessee, who is an individual and has not submitted return before, the thirtieth day of June following the end of the income year;

⁷⁹ (62B) “taxed dividend” means the dividend income on which tax has been paid by the recipient under this Ordinance;

⁸⁰ ***

(64) "Tax Recovery Officer" means a person appointed to be a Tax Recovery Officer under section 3;

(65) "total income" means the total amount of income referred to in section 17 computed in the manner laid down in this Ordinance, and includes any income which, under any provision of this Ordinance, is to be included in the total income of an assessee;

⁸¹ (65A) “trading account” or “profit and loss account” includes income statement and other similar statements of accounts prepared under International Financial Reporting Standards;

(66) "transfer", in relation to a capital asset, includes the sale, exchange or relinquishment of the asset, or the extinguishment of any right therein, but does not include-

⁸² * * *

(68) "written down value" means the written down value as defined in the Third Schedule;

(69) "year" means a financial year.

Section 3. Income-tax authorities

There shall be the following classes of income-tax authorities for the purposes of this Ordinance, namely:-

(1) The National Board of Revenue,

⁸³* * *

⁸⁴(IB) Chief Commissioner of Taxes;

⁸⁵(2) Directors-General of Inspection (Taxes),

⁸⁶(2A) Commissioner of Taxes (Appeals),

⁸⁷(2B) Commissioner of Taxes (Large Taxpayer Unit),

⁸⁸(2C) Director General (Training),

⁸⁹(2D) Director General, Central Intelligence Cell,

(3) Commissioners of Taxes,

⁹⁰(3A) Additional Commissioners of Taxes who may be either Appellate Additional Commissioners of Taxes or Inspecting Additional Commissioners of Taxes,

(4) Joint Commissioner of Taxes who may be either Appellate Joint Commissioner of Taxes or Inspecting Joint Commissioner of Taxes,

(5) Deputy Commissioners of Taxes,

⁹¹(6) Tax Recovery Officers nominated by the Commissioner of Taxes among the Deputy Commissioner of Taxes within his jurisdiction;

(7) Assistant Commissioners of Taxes,

(8) Extra Assistant Commissioners of Taxes, and

(9) Inspectors of Taxes.

Section 4. Appointment of income-tax authorities

(1) Subject to the rules and orders of the Government regulating the terms and conditions of service of persons in public services and posts, appointment of income-tax authorities shall be made in accordance with the provisions of this Ordinance.

(2) The Board may appoint ⁹²⁹³Chief Commissioner of Taxes, Director General, Central Intelligence Cell,⁹⁴ * * * as many ⁹⁵ Directors-General of Inspection, ⁹⁶ Commissioners (Appeals), Commissioners, Joint Commissioners of Taxes, Deputy Commissioners of Taxes, Tax Recovery Officers and Assistant Commissioners of Taxes and such other executive or ministerial officers and staff as it may think fit.

⁹⁷(2A) Notwithstanding anything contained in this Ordinance, the Board may, with the approval of the Government, appoint one or more person having appropriate professional skill and experience to perform such function as may be specified by an order issued in this behalf, and the person or persons so appointed shall be deemed to be an income-tax authority for the purposes of this Ordinance.

(3) Subject to such orders or instructions as the Board may, from time to time, issue in this behalf, any other income-tax authority may appoint any income-tax authority subordinate thereto and such other executive or ministerial officers and staff as may be necessary for assistance in the execution of its functions.

Delegation of powers

⁹⁸4A. The Board may, by notification in the official Gazette, and subject to such limitations or conditions, if any, as may be specified therein, empower by name or designation,-

Section 5. Subordination and control of income-tax authorities

¹⁰¹(1) The ¹⁰²* * * ¹⁰³Chief Commissioner of Taxes, Director General of Inspection, Commissioners (Appeals), and Commissioners shall be subordinate to the Board.

(2) The ¹⁰⁴Additional Commissioners of Taxes, Joint Commissioners of Taxes, Deputy Commissioners of Taxes and Inspectors shall be subordinate to the Commissioners ¹⁰⁵or the Commissioner (Appeals), as the case may be, within whose jurisdiction they are appointed to perform their function:

Provided that no order, direction or instruction shall be given so as to interfere with the discretion of the Appellate Joint Commissioners ¹⁰⁶or the Commissioners (Appeals) in the exercise of their appellate functions.

(3) The Deputy Commissioners of Taxes and Inspectors shall be subordinate to the Inspecting Joint Commissioner within whose jurisdiction they perform their functions.

(4) The Inspectors shall be subordinate to the Deputy Commissioners of Taxes within whose jurisdiction they perform their functions.

Section 6. Jurisdiction of income-tax authorities

(1) Subject to the provisions of this Ordinance,-

¹⁰⁷* * *

¹⁰⁸(aa) the Directors-General of Inspection shall perform the following functions, namely:-

¹⁰⁹(aaa) the Director General of Central Intelligence Cell shall perform the following functions, namely:-

¹¹¹(bb) the Commissioner (Large Taxpayer Unit) shall perform his functions in respect of such areas, or such persons or classes of persons, or such cases or classes of cases or such incomes or classes of incomes, as the Board may assign to him;

(2) (a) Any area or other jurisdiction or function assigned to an income-tax authority under sub-section (1) may be modified or varied, or may be transferred to any other income-tax authority with respect to areas, persons or classes of persons, or cases or classes of cases, or proceeding or classes of proceedings;

(3) Where more income-tax authorities than one have been assigned the same functions in respect of any area, or persons or classes of persons, or cases or classes of cases, or incomes or classes of incomes, they shall perform those functions in accordance with such allocation or distribution of work as the authority assigning the functions may make.

(4) The powers of the Board, Commissioners and Deputy Commissioners of Taxes, to assign any case to any authority, or to transfer any case from one authority to another, or to perform any function or functions under this section, shall include the power in respect of all or any proceedings relating to such case; and except as provided in sub-section (5), no such assignment, transfer or performance of functions shall be called in question by or before any court or other authority.

(5) Any person aggrieved by any order passed under this section may, within thirty days of such order, make a representation-

Section 7. Exercise of jurisdiction by successor

Where, in respect of any proceeding under this Ordinance, an income-tax authority is succeeded by another, the income-tax authority so succeeding may continue the proceeding from the stage at which it was left by his predecessor.

Section 8. Officers, etc. to follow instructions of the Board

All officers and other persons engaged in the performance of any functions under this Ordinance shall, in the matter of discharging those functions, observe and follow such orders, directions or instructions as the Board may issue from time to time:

Provided that no order, direction or instruction shall be given so as to interfere with the discretion of the Appellate Joint Commissioners ¹¹²or the Commissioners (Appeals) in the exercise of their appellate functions.

Section 9. Guidance to the Deputy Commissioner of Taxes, etc.

In the course of any proceedings under this Ordinance, the Deputy Commissioner of Taxes may be assisted, guided or instructed by any income-tax authority to whom he is subordinate or any other person authorised in this behalf by the Board.

Section 10. Exercise of assessment functions by the Inspecting Joint Commissioners 113[and the Inspecting Additional Commissioners]

The Commissioner may, with prior approval of the Board, by general or a special order in writing, direct that in respect of all or any proceedings relating to specified cases or classes of cases or specified persons of classes of persons within his jurisdiction, the powers and functions of the Deputy Commissioner of Taxes, ¹¹⁴Inspecting Joint Commissioner, the Inspecting Additional Commissioner and the Commissioner under this Ordinance shall be exercised by ¹¹⁵Inspecting Joint Commissioner, the Inspecting Additional Commissioner, the Commissioner and the Board, respectively and for the purpose of any proceedings in respect of such cases or persons reference in this Ordinance or the rules made thereunder to the Deputy Commissioner of Taxes, ¹¹⁶Inspecting Joint Commissioner, the Inspecting Additional Commissioner or the Commissioner shall be deemed to be references to ¹¹⁷Inspecting Joint Commissioner, the Inspecting Additional Commissioner, the Commissioner and the Board, respectively.

Section 11. Establishment of Appellate Tribunal

(1) For the purpose of exercising the functions of the Appellate Tribunal under this ordinance, the Government shall establish a Taxes Appellate Tribunal consisting of a President and such other ¹¹⁸ * * * members as the Government may, from time to time, appoint. (2) [Omitted by section 28 of অর্থ আইন, ২০০২ (২০০২ সনের ১৪ নং আইন)] ¹¹⁹ (3) A person shall not be appointed as a member of the Taxes Appellate Tribunal unless- ¹²⁰ (i) he was or is a member of the Board or holds the current charge of a member of the Board ; or

¹²³ (ix) he is, was or has been a District Judge. ¹²⁴ (4) The Government shall appoint one of the members of the Appellate Tribunal to be the President thereof ¹²⁵ , who is a member of the Board or holds the current charge of a member of the Board. Explanation.- For the purpose of this section, period of practice as chartered accountant shall include any period of practice as chartered accountant within the meaning of the Chartered Accountants Ordinance, 1961 (X of 1961) ¹²⁶ or Bangladesh Chartered Accountants Order, 1973(P. O. No. 2 of 1973) or as registered accountant enrolled on the register of accountants under the Auditor's Certificate Rules, 1950.

Section 12. Exercise of power of the Tribunal by Benches

(1) Unless the President in any particular case or class of cases otherwise directs, the powers and functions of the Appellate Tribunal shall be exercised by Benches of the Appellate Tribunal, hereinafter referred to as Bench, to be constituted by the President.

(2) A Bench shall be so constituted that it has not less than two members ¹²⁷* * * ¹²⁸.

[* * *]

Section 13. Decision of Bench

(1) Subject to the provisions of sub-sections (2) and (3), the decision of bench in any case or on any point shall be given in accordance with the opinion of the majority of its members.

(2) Any point on which the members of a Bench are equally divided shall be stated in writing and shall be referred by the President to one or more other members of the Appellate Tribunal for hearing and the Point shall be decided according to the majority of the members of the Appellate Tribunal who have heard it including those who first heard it.

(3) Where there are only two members of the Appellate Tribunal and they differ in any case, the Government may appoint an additional member of the Appellate Tribunal for the purpose of hearing the case; and the decision of the case shall be given in accordance with the opinion of the majority of the members of the Appellate Tribunal as constituted with such additional member.

Section 14. Exercise of power by one member

Notwithstanding anything contained in section 12, the Government may direct that the powers and functions of the Appellate Tribunal shall be exercised by any one of its members, or by two or more members jointly or severally.

Section 15. Regulation of procedure

Subject to the provisions of this Ordinance, the Appellate Tribunal shall regulate its own procedure and the procedure of its Benches in matters arising out of the discharge of its functions including the places at which a Bench shall hold its sittings.

Section 16. Charge of income-tax

(1) Where an Act of Parliament provides that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall, subject to the provisions of that Act, be charged, levied, paid and collected in accordance with the provisions of this Ordinance in respect of the total income of the income year or income years, as the case may be, of every person:

Provided that where under the provisions of this Ordinance income-tax is to be charged in respect of the income of a period other than the income year, income-tax shall be charged, levied, paid and collected accordingly.

(2) Where under the provisions of this Ordinance income-tax is to be deducted at source, or paid or collected in advance, it shall be deducted, paid and collected accordingly.

¹²⁹(3) Notwithstanding anything contained in sub-section (1), income tax shall be charged at the rates specified in Chapter VII and the Second Schedule in respect of-

Charge of surcharge

¹³⁰16A. (1) Where any Act of Parliament enacts that a surcharge on income shall be charged for any assessment year at any rate or rates, such surcharge at that rate or those rates shall be charged for that year in respect of the total income of the income year or the income years, as the case may be, of every person.

(2) All the provisions of this Ordinance relating to charge, assessment, deduction at source, payment in advance, collection, recovery and refund of income tax shall, so far as may be, apply to the charge, assessment, deduction at source, payment in advance, collection, recovery and refund of the surcharge.

Charge of additional tax

¹³¹¹³²16B. Charge of additional tax.-Notwithstanding anything contained in any other provision of this Ordinance, where any person employs or allows, without prior approval of the ¹³³appropriate authority of the Government, any individual not being a Bangladeshi citizen to work at his business or profession at any time during the income year, such person shall be charged additional tax at the rate of fifty percent (50%) of the tax payable on his income or taka five lakh, whichever is higher in addition to tax payable under this Ordinance.

Charge of additional amount, etc

16BB. Where under the provisions of this Ordinance any interest, amount or any other sum, by whatever name called, is to be charged in addition to tax, it shall be charged, levied, paid and collected accordingly.

Charge of minimum tax

16BBB. Where under the provisions of this Ordinance any minimum tax is to be charged, it shall be charged, levied, paid and collected accordingly.]

[Omitted]

¹³⁴***

[Omitted]

¹³⁵***

[Omitted]

¹³⁶***

Section 16D. [Omitted]

[Charge of dividend distribution tax- Omitted by section 10 of অর্থ আইন, ২০০৫ (২০০৫ সনের ১৬ নং আইন), which was inserted by section 18 of অর্থ আইন, ২০০৩ (২০০৩ সনের ১৭ নং আইন).]

[Omited]

¹³⁷***

Charge of tax on stock dividend

¹³⁸16F.  Notwithstanding anything contained in this Ordinance or any other law for the time being in force, if in an income year, the amount of stock dividend declared or distributed exceeds the amount of cash dividend declared ordistrbuted or without declaration or distribution of any cash divided by a company registered under কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন) and listed to any stock exchange, tax shall be payable at the rate of ten per cent on the whole amount of stock dividend declared or distributed in that income year.

Section 16G. Charge of tax on retained earnings, reserves, surplus etc

Notwithstanding anything contained in this ordinance or any other law for the time being in force, if in an income year, the total amount transferred to retained earnings or any fund, reserve or surplus, called by whatever name, by a company registered under কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন) and listed to any stock exchange exceeds seventy per cent of the net income after tax, tax shall be payable at the rate of ten per cent on the total amount so transferred in that income year.]

Charge of tax on the difference of investment, import and export

¹³⁹16H. Where, in any income year, the assessee has, in the statements submitted by him,

Section 17. Scope of the total income

(1) Subject to the provisions of this Ordinance the total income of any income year of any person includes-

(2) Notwithstanding anything contained in sub-section (1), where any amount consisting of either the whole or a part of any income of a person has been included in his total income on the basis that it has accrued or arisen, or is deemed to have accrued or arisen, to him in any year, it shall not be included again in his total income on the ground that it is received or deemed to be received by him in Bangladesh in another year.

Section 18. Income deemed to accrue or arise in Bangladesh

The following income shall be deemed to accrue or arise in Bangladesh, namely:-

(1) any income which falls under the head “Salaries”, wherever paid if-

¹⁴⁰(2) any income accruing or arising, whether directly or indirectly , through or from-

Explanation.- For the purpose of clause (2)-

(3) any dividend paid outside Bangladesh by a Bangladeshi company;

(4) any income by way of interest payable-

(5) any income by way of fees for technical services payable-

(6) any income by way of royalty payable-

Section 19. Un-explained investments, etc., deemed to be income

(1) Where any sum is found credited in the books of an assessee maintained for any income year and the assessee offers no explanation about the nature and source thereof, or the explanation offered is not, in the opinion of the Deputy Commissioner of Taxes, satisfactory, the sum so credited shall be deemed to be his income for that income year classifiable under the head “Income from other sources”.

(2) Where, in any income year, the assessee has made investments or is found to be the owner of any bullion, jewellery or other valuable article and the Deputy Commissioner of Taxes finds that the amount expended on making such investments or in acquiring such bullion, jewellery or other valuable article exceeds the amount recorded in this behalf in the books of account maintained by the assessee for any source of income and the assessee offers no explanation about the excess amount or the explanation offered is not, in the opinion of the Deputy Commissioner of Taxes, satisfactory, the excess amount shall be deemed to be the income of the assessee for such income year classifiable under the head “Income from other sources”.

(3) Where, in any income year, the assessee has incurred any expenditure and he offers no explanation about the nature and source of the money for such expenditure, or the explanation offered is not in the opinion of the Deputy Commissioner of Taxes, satisfactory, the amount of the expenditure shall be deemed to be the income of the assessee for such income year classifiable under the head “Income from other sources”.

(4) Where, in the financial year immediately preceding the assessment year, the assessee has made investments which are not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of fund for the investments, or the explanation offered is not, in the opinion of the Deputy Commissioner of Taxes, satisfactory, the value of the investments shall be deemed to be the income of the assessee for such financial year classifiable under the head “Income from other sources”.

(5) Where, in the financial year immediately preceding the assessment year, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article which is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of fund for the acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered is not, in the opinion of the Deputy Commissioner of Taxes, satisfactory, the money or the value of the bullion, jewellery or other valuable article, shall be deemed to be the income of the assessee for such financial year classifiable under the head “Income from other sources”.

(6) Any income derived by an assessee in any income year (hereinafter in this sub-section referred to as the said income year) from any business or profession, which has been or was, discontinued at any time before the commencement, or during the courses, of the said income year shall, if such income would have been chargeable to tax if it had been received in the income year in which it accrued or arose, be deemed to be income chargeable to tax from such business or profession which shall, for the purposes of this Ordinance, be deemed to have been carried on before the commencement, or during the course, of the said income year.

(7) Any dividend declared or distributed by a company shall be deemed to be the income of the ¹⁴¹ income year in which it is received and shall be included in the total income of the assessee of that year.

(8) Where any assets, not being stock-in-trade ¹⁴²***, are purchased by an assessee from any company and the Deputy Commissioner of Taxes has reason to believe that the price paid by the assessee is less than the fair market value thereof, the difference between the price so paid and the fair market value thereof, the difference between the price so paid and the fair market value shall be deemed to be income of the assessee classifiable under the head “Income from other sources”.

(9) Where any lump sum amount is received or receivable by an assessee during any income year on account of salami or premia receipts by virtue of any lease, such amount shall be deemed to be income of the assessee of the income year in which it is received and classifiable under the head “Income from other sources”:

Provided that at the option of the assessee such amount may be allocated for the purpose of assessment proportionately to the years covered by the entire lease period, but such allocation shall in no case exceed five years.

(10) Where any amount is received by an assessee during any income year by way of goodwill money or receipt in the nature of compensation or damages for cancellation or termination of contracts and licences by the Government or any person, such amount shall be deemed to be the income of such assessee for that income year classifiable under the head “Income from other sources”.

(11) Where any benefit or advantage, whether convertible into money or not, is derived by an assessee during any income year on account of cancellation of indebtedness ¹⁴³ * * *, the money value of such advantage or benefit shall be deemed to be his income for that income year classifiable under the head “Income from other sources” ¹⁴⁴ :

¹⁴⁵ Provided that the provisions of this sub-section shall not apply in case of a loan or interest waived in respect of an assessee  ¹⁴⁶being individual by a commercial bank including Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, ¹⁴⁷ Bangladesh Development Bank Ltd., or a leasing company or a financial institution registered under আর্থিক প্রতিষ্ঠান আইন, ১৯৯৩ (১৯৯৩ সনের ২৭ নং আইন) ¹⁴⁸ :

Provided further that the provisions of this sub-section shall not apply in case of a benefit or advantage, of an assessee being an individual, not exceeding taka ten lakh resulting from the waiver of margin loan or interest thereof by a holder of Trading Right Entitlement Certificate (TREC) as defined under এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩ (২০১৩ সনের ১৫ নং আইন) in respect of the assessee’s investment in shares, debentures, mutual funds or securities transacted in the stock exchange;

(12) Any managing agency commission including compensation received during any income year by an assessee for termination of agencies or any modification of the terms and conditions relating thereto shall be deemed to be his income for that income year classifiable under the head “Income from other sources”.

(13) Any amount received by an assessee during any income year by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting in any form or of any nature whatsoever shall be deemed to be his income for that income year classifiable under the head “Income from other sources”.

(14) Any profits and gains derived in any income year from any business of insurance carried on by a mutual insurance association computed in accordance with the provisions of paragraph 8 of the Fourth Schedule shall be deemed to be the income of such association for that income year.

(15) Where, for the purpose of computation of income of an assessee under section 28, any deduction has been made for any year in respect of any loss, bad debt, expenditure or trading liability incurred by the assessee, and-

¹⁵⁰ (aa) such amount on account of any interest which was to have been paid to any commercial bank or the ¹⁵¹ Bangladesh Development Bank Ltd.or on account of any share of profit which was to have been paid to any bank run on Islamic principles and which was allowed as a deduction in respect of such expenditure though such interest or share of profit was not paid by reason of the assessee having maintained his accounts on mercantile basis, within ¹⁵² three years after expiry of the income year in which it was allowed, shall, to such extent as it remains unpaid, be deemed to be income of the assessee from business or profession during the income year immediately following the expiry of the said ¹⁵³ three years;

and the business or profession in respect of which such allowance or deduction was made shall, for the purposes of section 28, be deemed to be carried on by the assessee in that year:

¹⁵⁴ Provided that where any interest or share of profit referred to in clause (aa) or a trading liability referred to in clause (c) is paid in a subsequent year, the amount so paid shall be deducted in computing the income in respect of that year.

(16) Where any building, machinery or plant having been used by an assessee for purpose of any business or profession carried on by him is disposed of during any income year and the sale proceeds thereof exceeds the written down value, so much of the excess as does not exceed the difference between the original cost and the written down value shall be deemed to be the income of the assessee for that income year classifiable under the head “Income from business or profession”.

(17) Where any machinery or plant exclusively used by an assessee for agricultural purposes has been disposed of in any income year and the sale proceeds thereof exceeds the written down value, so much of the excess as does not exceed the difference between the original cost and the written down value shall be deemed to be the income of the original cost and the written down value shall be deemed to be the income of the assessee for that income year classifiable under the head “Agricultural income”.

(18) Where any insurance, salvage or compensation moneys are received in any income year in respect of any building, machinery or plant which having been used by the assessee for the purpose of business or profession is discarded, demolished or destroyed and the amount of such moneys exceed the written down value of such building, machinery or plant, so much of the excess as does not exceed the difference between the original cost and the written down value less the scrap value shall be deemed to be the income of the assessee for that income year classifiable under the head “Income from business or profession”.

(19) Where any insurance, salvage or compensation moneys are received in any income year in respect of any machinery or plant which having been used by the assessee exclusively for agricultural purpose is discarded, demolished or destroyed and the amount of such moneys exceed the written down value of such machinery or plant, so much of the excess as does not exceed the difference between the original cost and the written down value less the scrap value shall be deemed to be the income of the assessee for that income year classifiable under the head “Agricultural income”.

(20) Where an asset representing expenditure of a capital nature on scientific research within the meaning of section 29 (1) (xx) is disposed of during any income year, so much of the sale proceeds as does not exceed the amount of the expenditure allowed under the said clause shall be deemed to be the income of the assessee for that income year classifiable under the head “Income from business or profession”.

Explanation 1.- For the purposes of this sub-section and sub-sections (16) and (17), “sale proceeds” shall have the same meaning as in the Third Schedule.

Explanation 2.- For the purposes of this sub-section and sub-sections (16) and (18), the business or profession in which the building, machinery, plant or assets, as the case may be, was used before its disposal, shall be deemed to be carried on by the assessee during the income year in which such disposal takes place.

^{155 156} (21) Where any sum is claimed or shown to have been received as loan ¹⁵⁷, advance or deposit of any kind called by whatever name, or gift by an Assessee otherwise than by a bank transfer, the amount so received shall be deemed to be the income of such Assessee for the income year in which such loan ¹⁵⁸, advance or deposit of any kind called by whatever name, or gift was received, and shall be classifiable under the head “Income from other sources”:

Provided that-

¹⁶¹(bb) deposits received by a Bank or a financial institution or an organization registered with Micro Credit Regulatory Authority or NGO Affairs Bureau shall not be deemed to be an income under this sub-section.

¹⁶³***

¹⁶⁴ ***

¹⁶⁵ ***

(22) Where an assessee, being the owner of a house property, receives from any person to whom such house property or any part thereof is let out any amount which is not adjustable against the rent payable, the amount so received shall be deemed to be income of the assessee for the income year in which it is received and be classifiable under the head “income from house property”:

Provided that at the option of the assessee such amount may be allocated, for the purpose of assessment in equal proportion to the year in which such amount is received and the four years next following:

Provided further that where such amount or part thereof is refunded by the assessee in a subsequent income year the amount so refunded shall be deducted in computing the income of the assessee in respect of that income year.

¹⁶⁶(22A) Where an assessee, being the owner of a house property, recieved, from any person to whom such house property or any part thereof is let out, any amount exceeding taka 2 lakh other than bank transfer which is adjustable against the rent receivable, the amount shall be deemed to be the “Income from house property” of the assessee for the income year in which it is received:

Provided that where such amount is received through bank transfer, the amount shall be adjusted within five years after the year of receipt or the period of agreement whichever is lower, if after the expiry of the aforesaid period such amount or any part thereof remains unadjusted, the amount remained so unadjusted shall be deemed to be the “Income from house property” of the assessee in the income year in which such amount remains unadjusted.

Explanation.¾In this sub-section, “bank transfer” means transfer from the account of the giver to the account of the receiver, and such accounts are maintained in a bank or financial institution legally authorised to operate accounts.

(23) Where during any income year an assessee, being an exporter of garments, transfers to any person, the export quota or any part thereof allotted to him by the Government, such portion of the export value of the garments exportable against the quota so transferred as may be prescribed for this purpose shall be deemed to be income of the assessee for that income year, classifiable under the head “Income from business or profession”.

^{167 168} (24) Where a company, not listed with any stock exchange, receives paid up capital from any shareholder during any income year in any other mode excepting by crossed cheque or bank transfer, the amount so received as paid up capital shall be deemed to be the income of such company for that income year and be classifiable under the head "Income from other sources".

¹⁶⁹ ***

^{170 171} ***

(27) Where an assessee, being a company, purchases directly or on hire one or more motor car or jeep and value of any motor car or jeep exceeds ten percent of its ¹⁷² paid up capital together with reserve and accumulated profit, then fifty percent of the amount that exceeds such ten percent of the ¹⁷³ paid up capital together with reserve and accumulated profit shall be deemed to be the income of such assessee for that income year classifiable under the head "Income from other sources".

¹⁷⁴ ***

¹⁷⁵ (29) Where an assessee, not being an assessee engaged in real estate business during any income year, purchases on credit any material for the purpose of construction of building or house property or its unit and fails to pay the sum or any part thereof representing the liability in respect of such purchase, the sum or any part thereof, ¹⁷⁶ which has not been paid within two years from the end of the income year in which the purchase was made, shall be deemed to be the income of the assessee for the income year immediately following the expiry of the said two years and be classifiable under the head "Income from other sources”.

(30) Where an assessee, in the course of any proceedings under this Ordinance, is found to have any sum or part thereof allowed or deducted but not spent in accordance with the provision of clause (h) of sub-section (1) of section 25 of this Ordinance, such unspent sum or part thereof shall be deemed to be the income of such assessee for that income year classifiable under the head “Income from house property”.

¹⁷⁷ (31) Where an assessee files a revised return or an amended return under sections 78, 82BB or 93 and shows in such revised return or amended return any income that is subject to tax exemption or a reduced tax rate ¹⁷⁸or any income derived from the sources mentioned in paragraph 33 of Part A of THE SIXTH SCHEDULE, so much of such income as exceeds the amount shown in the original return shall be deemed to be income of the assesseefor that income year classifiable under the head "Income from other sources.

¹⁷⁹Explanation.¾For the purpose of this sub-section income that is subject to tax exemption or a reduced tax rate does not include the exclusions from total income as mentioned in PART A of the THE SIXTH SCHEDULE

¹⁸⁰(32) Where any payment made for acquiring any asset or constitutes any asset and tax has not been deducted therefrom in accordance with Chapter VII, such payment shall be deemed to be the income of the person responsible for making the payment under this Ordinance and classifiable under the head “Income from other source” in the income year in which the payment was made.

[Omitted]

¹⁸¹***

[Omitted]

¹⁸²***

[Omitted]

¹⁸³Omitted

[Omitted]

¹⁸⁴****

[Omitted]

¹⁸⁵***

Special Tax Treatment in respect of investment in new industrial undertaking

¹⁸⁶19AAAAAA.  1. Notwithstanding anything contained in this Ordinance or any other law for the time being in force, no question as to the source of any sum, if invested in between first day of July, 2021 and thirtieth day of June, 2022 (both days inclusive), in new industrial undertaking shall be raised by any authority if an individual pays on or before the thirtieth day of June, 2022, tax at the rate of ten percent (10%) on the sum so invested.

2. Tax under this section shall only be payable by pay order or by automated challan, as the case may be.

19B [Omitted]

¹⁸⁷***

19BB [Omitted]

¹⁸⁸***

19BBB [Omitted]

¹⁸⁹***

19BBBB[Omitted]

¹⁹⁰***

Special tax treatment in respect of investment in 191[***] building, apartmen

¹⁹²19BBBBB. (1) Notwithstanding anything contained in this Ordinance, source of any sum invested by any person, in the construction or purchase of any  ¹⁹³building or apartment shall be deemed to have been explained if the assessee pays, before the assessment for the relevant assessment year in which the investment is completed, tax at the following rate –

(2) The rate of tax mentioned in sub-section (1) shall be twenty per cent higher in case where the assessee already owns a building or an apartment in any City Corporation before such investment is completed; or the assessee makes such investment in two or more buildings or apartments.

(3) The rate of tax mentioned in sub-section (1) shall be one hundred per cent higher in case, where¾

 (4) The provision of this section shall not apply where the source of such investment, made by the assessee for the construction or purchase of such ¹⁹⁴building or apartment, is¾

 (b) not derived from any legitimate source.

Special tax treatment in respect of investment in the purchase of bond under Bangladesh Infrastructure Finance Fund

¹⁹⁵19C.- Notwithstanding anything contained in any other provision of this Ordinance, no question as to the source of any sum invested by any person in the purchase of bond issued or caused to be issued under Bangladesh Infrastructure Finance Fund during the period between the first day of July, 2010 and thirtieth day of June, 2012 (both days inclusive), shall be raised if the assessee pays, before the filing of return of income for the relevant income year, tax at the rate of ten per cent on such sum invested.

19D [Omitted]

¹⁹⁶* * *

Special tax treatment in respect of investment in Economic Zones or Hi-Tech Parks

¹⁹⁷19DD.  Notwithstanding anything contained in this Ordinance or any other law for the time being in force, no question shall be raised as to the source of any sum invested in any economic zone declared under section 5 of বাংলাদেশ অর্থনৈতিক অঞ্চল আইন, ২০১০ (২০১০ সনের ৪২ নং আইন)  or in any hi-tech park declared under section 22 of বাংলাদেশ হাই-টেক পার্ক কর্তৃপক্ষ আইন, ২০১০ (২০১০ সনের ৮নং আইন) for setting up industrial undertaking engaged in producing goods or services therein within the period from the first day of July, 2019 and the thirtieth day of June, 2024 (both days inclusive) by a company, if tax at the rate of ten per cent is paid on the sum so invested before filing of the return for the concerned income year.

Voluntary disclosure of income.

¹⁹⁸19E. (1) Notwithstanding anything contained in this Ordinance, any person-

(2) Return of income mentioned in sub-section (1) shall be treated as valid, if-

(3) The provision of this section shall not apply where-

²⁰⁰(a) a notice under section 93 has been issued before submission of such return of income for the reason that any income, assets or expenditure has been concealed or any income or a part thereof has escaped assessment;

(4) The income shown under this section may be invested in any income generating activities or any sector including the following:

Special Tax Treatment in respect of undisclosed offshore assets

²⁰³19F. (1) Notwithstanding anything contained in this Ordinance or any other law for the time being in force, no question as to the source of the undisclosed asset located outside of Bangladesh shall be raised by any authority if an assessee pays, before the submission of return of income applicable for the assessment year 2022-2023, tax at the rate specified in the following table:

Table

| Description of the Asset | Rate of tax | | --- | --- | | Any cash or cash equivalents, bank deposits, bank notes, bank accounts, convertible securities and financial instruments if repatriated to Bangladesh through banking channel | 7% |

(2) Where an assessee repatriates any sum from abroad under the scheme of this section, the bank responsible for crediting to the account of the assessee shall deduct tax in accordance with sub-section (1) before crediting and give a certificate of such deduction to the assessee.

Subject to sub-section (2), tax under this section shall only be paid by automated challan.

The provisions of this section shall not apply to cases where any proceeding has been drawn on account of tax evasion or criminal activities under any provision of this Ordinance or any other law by thirtieth June, 2022.

For the purpose of this section, “return” shall include amended return under section 82BB or revised return under section 78 and be submitted by thirtieth day of June, 2023.

Penalty for any offshore asset not disclosed in the return

²⁰⁴19G. (1) Without prejudice to any other liability which may incur under any other provision of this Ordinance and any other law for the time being in force, where any person being a resident Bangladeshi is found to be the owner of any offshore asset not disclosed in the return and the assessee offers no explanation about the nature and source thereof or the explanation offered is not satisfactory, the Deputy Commissioner of Taxes shall, after ensuring a reasonable opportunity of being heard, proceed to recover from such person the amount of penalty equal to the fair value of such offshore asset.

(2) The Deputy commissioner of Taxes shall have the authority to recover the penalty under this section by confiscating or selling any asset held by or on behalf of the assessee.

(3) The Deputy of Commissioner of Taxes shall have the power to conduct an offshore investigation, where he has reason to believe that an assessee has offshore assets not disclosed in the return.

(3) To prevent holding undisclosed offshore asset and to recover such undisclosed asset, the Board shall have the power to-

Section 20. Heads of income

Save as otherwise provided in this Ordinance, all incomes shall, for the purpose of charge of income-tax and computation of total income, be classified and computed under the following heads of income, namely:-

Section 21. Salaries

(1) The following income of an assessee shall be classified and computed under the head “Salaries”, namely:-

(2) Where any amount of salary of an assessee is once included in his total income of an income year on the basis that it had become due or that it had been paid in advance in that year, that amount shall not again be included in his income of any other year.

Section 22. Interest on securities

The following income of an assessee shall be classified and computed under the head “Interest on securities”, namely:-

Section 23. Deductions from interest on securities

(1) In computing the income under the head “Interest on securities”, the following allowances and deduction shall be made, namely:-

Provided that no allowance or deduction on account of any interest or commission paid under clause (a) or (b), as the case may be, in respect of, or allocable to the securities of Government which have been issued with the condition that interest thereon shall not be liable to tax, shall be made in computing the income under section 22.

²⁰⁷* * *

(2) Notwithstanding anything contained in sub-section (1), no deduction shall be allowed under this section in respect of any interest payable outside Bangladesh on which tax has not been paid or deducted in accordance with the provisions of Chapter VII.

Section 24. Income from house property

(1) The tax shall be payable by an assessee under the head “Income from house property” in respect of the annual value of any property ²⁰⁸, whether used for commercial or residential purposes, consisting of any building ²⁰⁹,furniture, fixture, fittings etc. and lands appurtenant thereto of which he is the owner, other than such portions of the property as he may occupy for the purposes of any business or profession carried on by him, the income from which is assessable to tax under this Ordinance.

(2) Where any such property as is referred to in sub-section (1) is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not constitute and shall not be deemed to be, an association of persons; and for the purpose of computation of the income of an assessee in respect of that property, only such part of such income as is proportionate to the share of the assessee shall be reckoned as his income from that property.

Section 25. Deductions from income from house property

(1) In computing the income under the head ''Income from house property'' the following allowances and deductions shall be made, namely:-

²¹⁰ * * * Explanation.- The expression ''annual charge'', as used in this clause, includes any tax leviable, in respect of property or income from property, by local authority or Government but does not include the tax leviable under this Ordinance;

²¹³ (gg) Where the property has been constructed with borrowed capital ²¹⁴ form bank or financial institution and no income under section 24 was earned from that property during the period of such construction, the interest payable during that period on such capital, in three equal proportionate instalments for subsequent first three years for which income is assessable from that property; ²¹⁵ (h) in respect of expenditure for repairs, collection of rent, water and sewerage, electricity and salary of darwan, security guard, pump-man, lift-man and caretaker and all other expenditure related to maintenance and provision of basic services:

²¹⁶ * * * (2) Notwithstanding anything contained in sub-section (1), no deduction shall be allowed under this section in respect of any interest or annual charge payable outside Bangladesh on which tax has not been paid or deducted in accordance with the provisions of Chapter VII. (3) [Omitted by section 7 of অর্থ আইন, ১৯৯৩ (১৯৯৩ সনের ১৮ নং আইন)

Section 26. Agricultural income

(1) The following income of an assessee shall be classified and computed under the head “Agricultural income”, namely:-

(2) Agricultural income derived from the sale of tea grown and manufactured by the assessee shall be computed in the prescribed manner.

(3) Where the Board, by notification in the official Gazette, so directs, agricultural income from the sale of rubber, tobacco, sugar or any other produce grown and manufactured by the assessee may be computed in the manner prescribed for the purpose.

Section 27. Deductions from agricultural income

(1) In computing the income under the head “Agricultural income”, the following allowances and deductions shall be made, namely:-

(2) Notwithstanding anything contained in sub-section (1), no deduction shall be allowed under this section in respect of any interest on which tax has not been paid or deducted in accordance with the provisions of Chapter VII.

Section 28. Income from business or profession

(1) The following income of an assessee shall be classified and computed under the head "Income from business or profession", namely:-

²¹⁹(i) the shortfall of capital referred to in sub-section (12) of section 82BB.

Explanation.- Where speculative transactions carried on by an assessee are of such a nature as to constitute a business, the business (hereinafter referred to as "speculation business") shall be deemed to be distinct and separate from any other business.

(2) Notwithstanding anything contained in this Ordinance,-

²²⁰(3) Notwithstanding anything to the contrary contained in any other provisions of the Ordinance, in the case of ²²¹Bangladesh Development Bank Ltd ²²², Investment Corporation of Bangladesh ²²³,any financial institution and any commercial bank including the Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank, the income by way of interest in relation to such categories of bad or doubtful debts as the Bangladesh Bank may classify in the income year in which it is credited to its profit and loss account for that year or, as the case may be, in which it is actually received whichever is earlier.

Section 29. Deductions from income from business or profession

(1) In computing the income under the head "Income from business or profession", the following allowances and deductions shall be allowed, namely:-

Provided that if a substantial part of the premises is used by the assessee as a dwelling-house, the amount shall be a proportionate part of the rent having regard to the proportionate annual value of the part so used;

Provided that if a substantial part of the premises is used by the assessee as a dwelling-house, the amount shall be a proportionate part of the sum paid for such repair having regard to the proportionate annual value of the part so used;

Provided that if any part of such capital relates to replenishing the cash or to any other asset transferred to ²²⁴any other entity, when lending of money is not the business of transfer or, the amount shall be proportionate part of the interest so paid or the profit so shared having regard to the proportion of such capital so used;

²²⁵***

²²⁷(viiia) in respect of amortization of license fees as admissible under the Third Schedule;

²²⁸* * *

²²⁹* * *

(xiii) any sum paid on account of land development tax or rent, local rates or municipal taxes in respect of such premises or part thereof as is used by the assessee for the purpose of business or profession;

²³¹* * *

(xvii) where any such debt or part thereof is written off as irrecoverable in the books of accounts of the assessee for an income year and the Deputy Commissioner of Taxes is satisfied that such debt or part thereof became irrecoverable in an earlier income year not falling beyond a period of four years immediately preceding the income year in which it was written off, the Deputy Commissioner of Taxes may, notwithstanding anything contained in this Ordinance, allow such debt or part thereof as a deduction for such earlier income year if the assessee accepts such finding of the Deputy Commissioner of Taxes and re-compute the total income of the assessee for such earlier income year and make the necessary amendment; and the provisions of section 173 shall, so far as may be, apply thereto the period of four years referred to in ²³²the proviso of sub-section (1) of that section being reckoned from the end of the year in which the assessment relating to the income year in which the debt or part thereof is written off was made;

²³³* * *

²³⁴(xviiia) in respect of provision for bad and doubtful debt made by ²³⁵Bangladesh Development Bank Ltd for overdue loan, a sum equal to five per cent of such overdue loan or the amount of actual provision for such bad or doubtful debt in the books of the assessee, whichever is the less:

Provided that the deduction shall be allowed only in respect of the assessment years 1987-88, 1988-89, 1989-90 and 1990-91:

Provided further that if any amount out of the amount so allowed is ultimately recovered, the same shall be deemed to be a profit of the year in which it is recovered;

²³⁶(xviiiaa) in respect of provision for bad and doubtful debt and interest thereon made by a commercial bank including the Bangladesh Krishi Bank ²³⁷, Karmo shongsthan Bank and the Rajshahi Krishi Unnayan Bank, a sum equal to ²³⁸one per cent of the total outstanding loan including interest thereon or the amount of actual provision for such bad or doubtful debt and interest thereon in the books of the assessee, whichever is less:

Provided that the provisions of this clause shall apply only in respect of such loan as the Bangladesh Bank may, from time to time, classify as bad or doubtful debt:

²³⁹Provided further that the deduction shall be allowed only in respect of the assessment years 1990-91, 1991-92, 1992-93, 1993-94, 1994-95 ²⁴⁰,1995-96, 1996-97, 1997-98, 1998-99 ²⁴¹, 1999-2000, 2000-2001 ²⁴², 2001-2002, 2002-2003, 2003-2004 ²⁴³, 2004-2005, 2005-2006 and 2006-2007:

Provided further that if any amount out of the amount so allowed is ultimately recovered, the same shall be deemed to be a profit of the year in which it is recovered ²⁴⁴:

Provided further that no deduction under this clause shall be allowed in respect of-

²⁴⁶* * *

Provided that where a deduction is allowed for any income year under this clause in respect of expenditure represented wholly or partly by any asset, no deduction shall be allowed under clause (viii) or (ix) for the same income year in respect of that asset;

Explanation.- In this clause ²⁴⁹***,-

(xxii) any expenditure, not being in the nature of capital expenditure, laid out or expended on any educational institution or hospital established for the benefit of the employees of the assessee, their families and dependents or on the training of industrial workers, if-

(xxiii) any expenditure in the nature of capital expenditure laid out or expended on the construction and maintenance of any educational institution or hospital established by the assessee for the benefit of his employees, their families and dependents, or on any institute for the training of industrial workers, if-

(xxiv) any expenditure laid out or expended on the training of citizens of Bangladesh in connection with a scheme approved by the Board for purposes of this clause;

(xxvi) any sum paid on account of annual membership subscription to a registered trade organisation within the meaning of the Trade Organisations Ordinance, 1961(XLV of 1961), or to a professional institution recognised by the Board in this behalf;

(xxvii) any expenditure, not being in the nature of capital expenditure or personal expenses of the assessee, laid out or expended wholly and exclusively for the purpose of the business or profession of the assessee.

(2) Where any premises, building, machinery, plant or furniture is not wholly used for the purposes of business or profession, any allowance or deduction admissible under this section shall be restricted to the fair proportional part of the amount which would be allowable if such premises, building, machinery, plant or furniture was wholly so used.

Explanation.- For the purposes of this section, the expression "plant" includes ships, vehicles, books, scientific apparatus and surgical and other instruments or equipments used for the purpose of business or profession.

Provision for disallowance

²⁵⁰30A. Notwithstanding anything contained in sections 28, 29 and 30, the Deputy Commissioner of Taxes shall not make any disallowance or deduction for any year from any claim made by an assessee in the trading account or profit or loss account without specifying reason for such disallowance or deduction.

Section 30. Deduction not admissible in certain circumstances

Notwithstanding anything contained in section 29, no deduction on account of allowance from income from business or profession shall be admissible in respect of the following, namely:-

²⁵¹ (aa) any payment made by an assessee to any person if tax thereon has not been deducted and credited in accordance with the provisions of Chapter VII ²⁵² ***,

²⁵³ (aaa) any payment by way of salary to an employee if the employee is required to obtain a twelve-digit Taxpayer’s Identification Number under the provisions of this Ordinance but fails to obtain the same at the time of making such payment;

²⁵⁴ (aaaa) any payment made by way of salary to an employee for whom the statement under section 108A was not provided;

²⁵⁵ (e) so much of the expenditure by an assessee on the provision of perquisites, as defined in clause (45) of section 2, to any employee as exceeds taka ^{256 257}ten lakh and to any employee who is a person with disability, as exceeds taka twenty five lakh:

Provided that the provision of this clause shall not be applicable to an employer where perquisites were paid to an employee in pursuance of any Government decision published in the official Gazette to implement the recommendation of a Wage Board constituted by the Government;

²⁵⁸*** and

²⁵⁹ (g) any expenditure exceeding ten per cent of the ²⁶⁰ net profit disclosed in the statement of accounts ²⁶¹ by way of head office or intra-group expense, called by whatever name, by a company, not incorporated in Bangladesh under কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সালের ১৮ নং আইন);

²⁶² (h) so much of the expenditure or aggregate of the expenditure by an assesse by way of royalty, technical services fee, technical know how fee or technical assistance fee or any fee of similar nature, as exceeds the following:

| (i) For the first three income years from the commencement of the business or profession | Ten percent (10%) of the ²⁶³net profit from business or profession, excluding any profit or income of subsidiary or associate or joint venture, disclosed in the statement of accounts; | | --- | --- | | (ii) For subsequent income years | Eight percent (8%) of the ²⁶⁴net profit from business or profession, excluding any profit or income of subsidiary or associate or joint venture, disclosed in the statement of accounts;”। |

;

²⁶⁷(ii) any payment exceeding Taka five lakhs paid by a person on account of purchase of raw materials otherwise than by bank transfer;

Provided that nothing of this clause shall apply to the overseas traveling expenses by an assessee engaged in providing any service to the Government where overseas traveling is a key requirement of that service;

²⁷³(m) any payment by a person exceeding taka fifty thousand or more, otherwise than by bank transfer excluding-

²⁷⁷(p) any promotional expense exceeding zero point five zero percent (0.50%) of the disclosed business turnover.

²⁷⁸Explanation-1.-For the purpose of the clause (p), ‘promotional expense’ means any expense incurred by way of giving any benefit in kind or cash or in any other form to any person for the promotion of business or profession.

²⁷⁹***

Treatment of disallowances

²⁸⁰30B.  Notwithstanding anything contained in section 82C or any loss or profit computed under the head “Income from business or profession”, the amount of disallowances made under section 30 shall be treated separately as “Income from business or profession” and the tax shall be payable thereon at the regular rate.

Section 31. Capital gains

Tax shall be payable by an assessee under the head “Capital gains” in respect of any profits and gains arising from the transfer of a capital asset and such profits and gains shall be deemed to be the income of the income year in which the transfer took place. ²⁸¹***

Capital gains from the transfer of business or undertaking

²⁸²31A.  Tax shall be payable by an assessee on “capital gains from the transfer of business or undertaking” in respect of any profits and gains arising from the transfer of business or undertaking in its entirety with all of its assets and liabilities and such profits and gains shall be deemed to be the income of the assessee in respect of the income year during which the transfer takes place.

Section 32. Computation of capital gains

(1) The income under the head “Capital gains” shall be computed after making the following deduction from the full value of the consideration received or accruing from the transfer of the capital asset or the fair market value thereof, whichever is higher, namely:-

(1A) [Omitted by section 4 of অর্থ আইন, ১৯৯৬ (১৯৯৬ সনের ১৮ নং আইন).]

(2) For the purpose of this section, “cost of acquisition of the capital asset” means-

²⁸³ * * *

^{284 285} * * *

the actual cost of acquisition to the previous owner of the capital asset as reduced by the amount of depreciation, if any, allowed to the previous owner; and where the actual cost of acquisition to the previous owner cannot be ascertained, the fair market value at the date on which the capital asset became the property of the previous owner:

Provided that where the capital asset is an asset in respect of which the assessee has obtained depreciation allowance in any year, the cost of acquisition of the capital asset to the assessee shall be its written down value increased or diminished, as the case may be, by any adjustment made under section 19(16) or (17) or section 27(1)(j) or section 29(1) (xi) ²⁸⁶ :

²⁸⁷ * * *

²⁸⁸ Provided further that where the capital asset became the property of the assessee by succession, inheritance or devolution, the actual cost of acquisition of the capital asset to the assessee shall be the fair market value of the property prevailing at the time the assessee became the owner of such property.

(3) Where in the opinion of the Deputy Commissioner of Taxes the fair market value of a capital asset transferred by an assessee as on the date of transfer exceeds the full value of the consideration declared by the assessee by an amount of not less than fifteen per cent of the value so declared, the fair market value of the capital asset shall be determined with the previous approval of the Inspecting Joint Commissioner.

(4) Where in the opinion of the Deputy Commissioner of Taxes the fair market value of a capital asset transferred by an assessee as on the date of the transfer exceeds the declared value thereof by more than twenty-five per cent of such declared value, the Government may offer to buy the said asset in such manner as may be prescribed.

(5) Notwithstanding anything contained in this section or section 31, where a capital gain arises from the transfer of a capital asset which immediately before the date on which the transfer took place was being used by the assessee for the purposes of his business or profession and the assessee has, within a period of one year before or after that date, purchased a new capital asset for the ²⁸⁹ * * * purposes of his business or profession, then, instead of the capital gain being charged to tax as income of the income year in which the transfer took place, it shall, if the assessee so elects in writing before the assessment is made, be dealt with in accordance with the following provisions of this sub-section, that is to say-

Provided that where in respect of the purchase of a new capital asset consisting of plant or machinery, the assessee satisfies the Deputy Commissioner of Taxes that despite the exercise of due diligence it has not been possible to make the purchase within the period specified in this sub-section, the Deputy Commissioner of Taxes may, with the prior approval of the Inspecting Joint Commissioner, extend the said period to such date as he considers reasonable.

²⁹⁰(5A) Where any capital gain arises from any transfer of capital asset in a scheme of amalgamation, no tax shall be charged under section 31:

Provided that in a scheme of amalgamation, any consideration received by the shareholders of the amalgamating companies in any manner other than the shares of the amalgamated company shall be subject to applicable tax.

(6) [Omitted by section 57 of অর্থ আইন, ২০০০ (২০০০ সনের ১৫ নং আইন).]

²⁹¹ ***

(8) [Omitted by section 57 of অর্থ আইন, ২০০০ (২০০০ সনের ১৫ নং আইন).]

(9) [Omitted by section 57 of অর্থ আইন, ২০০০ (২০০০ সনের ১৫ নং আইন).]

(10) Notwithstanding anything contained in this section or section 31, where a capital gain arises from the transfer of capital being buildings or lands to a new company registered under ²⁹² the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন), for setting up of an industry, and if the whole amount of capital gain is invested in the equity of the said company, then the capital gain shall not be charged to tax as income of the year in which the transfer took place.

(11) Notwithstanding anything contained in this section or section 31, where a capital gain arises from the transfer of a capital asset of a firm to a new company registered under ²⁹³ the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন), and if the whole amount of the capital gain is invested in the equity of the said company by the partners of the said firm, then the capital gain shall not be charged to tax as income of the year in which the transfer took place.]

(11A) ²⁹⁴ ***

²⁹⁵ (12) Notwithstanding anything contained in ²⁹⁶ sub-sections (5), (7), (10) and (11), no exemption shall be allowed to any person on so much of profits and gains arising out of the transfer of a capital asset as is attributable to the cost of acquisition of such asset in respect of which any investment allowance referred to in paragraphs 1, 2, 3, 4, 5, 6, 8, 9, 10 and 11 of PART B of THE SIXTH SCHEDULE to this Ordinance was at any time allowed.

Computation of capital gains from the transfer of business or undertaking

²⁹⁷32A. The Capital gains from the transfer of business or undertaking shall be computed after making the following deductions from the full value of the consideration received or accruing from the transfer of the business or undertaking in its entirety or the fair market value thereof, whichever is higher, namely:—

Section 33. Income from other sources

The following income of an assessee shall be classified and computed under the head “Income from other sources”, namely:-

²⁹⁸(d) any income to which sub-sections (1)-(5), (8)-(13), (21), (24), (27), (29), (31) or (32) of section 19 and sub-section (3) of section 19AAAA apply.;

Section 34. Deductions from income from other sources

(1) The amount of interest paid in respect of money borrowed for the purpose of acquisition of shares of a company.

(2) Any expenditure, not being in the nature of capital expenditure or personal expenses of the assessee, incurred solely for the purpose of making or earning the relevant income.

(3) Where the income is derived from letting on hire of machinery, plant or furniture belonging to the assessee and also of building belonging to him if the letting of the building is inseparable from the letting of such machinery, plant or furniture, the same allowances as are admissible under section 29(1)(vi), (vii), (viii) and (xi) to an assessee in respect of income under the head “Income from business or profession” subject to the same conditions and limitations as if the income from such letting on hire were income from business or profession:

Provided that the provisions of section 19(16) shall also be applicable for the determination of any profits where the sale proceeds of such machinery, plant, furniture or building exceeds the written down value thereof.

(4) Notwithstanding anything contained in this section, no allowance shall be made on account of-

Section 35. Method of accounting

(1) All income classifiable under the head ²⁹⁹ "Agricultural income", "Income from business or profession" or "Income from other sources" shall be computed in accordance with the method of accounting regularly employed by the assessee.

³⁰⁰ (2) Notwithstanding anything contained in sub-section (1), the Board may, in case of any business or profession, or class of business or profession, or any other source of income, or any class of persons or class of income, by a general or special order, direct that the accounts and other documents shall be maintained in such manner and form, and the mode of payments of commercial transactions recorded in such manner and form, as may be prescribed or as may be specified in such direction; and thereupon the income of the assessee shall be computed on the basis of the accounts maintained, payments made and transactions recorded accordingly.

³⁰¹ “(3) Without prejudice to the preceding sub-sections, every company as defined in ³⁰²clause (20) of section 2 shall, with the return of income required to be filed under this Ordinance, furnish a copy of the trading account, profit and loss account and the balance sheet in respect of the relevant income year-

under sub-sections (1) and (2) of section 189 of কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সালের ১৮ নং আইন);

(4) Where-

the income of the assessee shall be computed on such basis and in such manner as the Deputy Commissioner of Taxes may think fit.

Section 36. Allocation of income from royalties, etc., for literary works, etc.

Where the time taken by the author of a literary or artistic work in the making thereof exceeds twelve months, the amount received or receivable by him during any income year in lump sum on account of royalties or copyright fees in respect of that work shall, if he so claims, be deemed to be the income of-

Explanation.- For the purposes of this section, the expression “author” includes a joint author and the expression “lump sum” in regard to royalties or copyright fees includes an advance payment on account of such royalties or copyright fees which is not returnable.

Section 37. Set off of losses

Where, in respect of any assessment year, the net result of computation of income under any head is a loss, the assessee shall, subject to the other provisions of this Ordinance, be entitled to have the amount of such loss set off against his income, if any, assessable for that assessment year under any other head:

³⁰⁵³⁰⁶Provided that any loss in respect of any speculation business or any loss under the head “Capital gains” shall be set off only against any income in respect of speculation business or any income under the head “Capital gains”:

Provided further that any loss from any source, income of which is exempted from tax or income of which is taxed at a reduced rate, shall not be set off against any income from any source:

Provided further that for the purposes of this section the Deputy Commissioner of Taxes shall, in computing any loss, deduct any amount received in cash as subsidy from the Government³⁰⁷:

³⁰⁸Provided further that any loss in respect of any income from business or profession shall not be so set off, or be carried forward to succeeding assessment year or years for set off, against any income from house property³⁰⁹:

Provided further that any loss in respect of any income from any head shall not be so set off against any income from manufacturing of cigarette ³¹⁰, bidi, zarda, chewing tobacco, gul or any other smokeless tobacco or tobacco products.

Section 38. Carry forward of business losses

Where, for any assessment year, the net result of the computation of income under the head “Income from business or profession” is a loss to the assessee, not being a loss sustained in a speculation business, and such loss has not been wholly set off under section 37, so much of the loss as has not been so set off, the whole of the loss, where the assessee has no income under any other head or has income only under the head “Capital gains”, shall be carried forward to the next following assessment year, and-

Section 39. Carry forward of loss in speculation business

(1) Where, for any assessment year, the result of computation of income in respect of any speculation business carried on by the assessee is a loss, it shall be set off only against the income, if any, from any other speculation business carried on by him and assessable for that assessment year.

(2) Where, for any assessment year, any loss computed in respect of a speculation business has not been wholly set off under sub-section (1), so much of the loss as has not been so set off, or the whole loss where the assessee has no income from any other speculation business, shall, subject to the provisions of this Ordinance, be carried forward to the next following assessment year, and-

Section 40. Carry forward of loss under the head “Capital gains”

(1) Where, in respect of any assessment year, the net result of computation of income from any source under the head “Capital gains” is a loss, it shall be set off only against income from any other source falling under that head and assessable for that year.

(2) Where, for any assessment year, any loss computed under the head “Capital gains” has not been wholly set off under sub-section (1), so much of the loss as has not been so set off, or the whole loss where the assessee has no income from any other source falling under that head, shall, subject to the provisions of this Ordinance, be carried forward to the next following assessment year, and-

(3) Where, in respect of any assessment year, the loss computed under the head “Capital gains” does not exceeds five thousand taka it shall not be carried forward and where it exceeds five thousand taka only so much of such loss shall be carried forward as exceeds five thousand taka.

Section 41. Carry forward of loss under the head “Agricultural income”

Where, for any assessment year, the net result of the computation of income under the head “Agricultural income” is a loss to the assessee, and such loss has not been wholly set off under section 37, so much of the loss as has not been so set off, or the whole of the loss, where the assessee has no income under any other head or has income only under the head “Capital gains”, shall be carried forward to the next following assessment year, and-

Section 42. Conditions and limitations of carrying forward of loss, etc.

(1) The provisions of sections 37, 38, 39, 40 and 41 shall have effect subject to the conditions and limitations set out in this section.

(2) [Omitted by section 6 of অর্থ আইন, ১৯৯৫ (১৯৯৫ সনের ১২ নং আইন).]

(3) In the case of ³¹¹a firm,-

³¹²(3A) Where the assessee is an Association of Persons, the loss sustained by it under any head of income shall be set off under section 37 only against the income of the Association of Persons under any other head and not against the income of any of the members of the Association of Persons.

(3B) Where the assessee is a member of the Association of Persons, he shall not be entitled to have any loss sustained by the Association of Persons carried forward and set off against his own income.”

(4) Where any person carrying on any business or profession has been succeeded in such capacity by another person otherwise than by inheritance, no person, other than the person incurring the loss, shall be entitled to have the loss in such business or profession set off against his income under any other head.

(5) In the case of a firm in the constitution of which a change has occurred,-

(6) Where, in making an assessment for any year, full effect cannot be given to the allowances referred to in section 29(1) (viii) owing to there being no profits or gains chargeable for that year or such profits or gains being less than the allowance then, subject to the provisions of sub-section (7), the allowance or part of the allowance to which effect has not been given, as the case may be, shall be added to the amount of the allowance for depreciation for the following year and be deemed to be part of that allowance or if there is no such allowance for that year, be deemed to be the allowance for that year and so on for succeeding years.

(7) Where, under sub-section (6), depreciation allowance is also to be carried forward, effect shall first be given to the provisions of sections 38 and 39 (2).

³¹³(8) In a scheme of amalgamation, the amalgamated company shall have the right to carry forward the accumulated loss and the unabsorbed depreciation of the amalgamating company as if the loss or the unabsorbed depreciation, as the case may be, has been the accumulated loss or the unabsorbed depreciation of the amalgamated company in the income year in which the amalgamation took place.

Section 43. Computation of total income

(1) For the purpose of charge of tax, the total income of an assessee shall be computed in the manner provided in this ordinance.

(2) In computing the total income of an assessee, there shall be included any exemption or allowance specified in part B of the Sixth Schedule and any income deemed to be the income of the assessee under section 19, subject to the limits, conditions and qualifications laid down therein.

(3) Where the assessee is a partner of a firm, then, whether the firm has made a profit or a loss, his share (whether a net profit or a net loss) shall be taken to be any salary, interest, commission or other remuneration payable to him by the firm in respect of the income year increased or decreased respectively by his share in the balance of the profit or loss of the firm after the deduction of any interest, salary, commission or other remuneration payable to any partner in respect of the income year ³¹⁴* * * and such share shall be included in his total income:

Provided that if his share so computed is a loss, such loss may be set off or carried forward and set off in accordance with the provisions of section 42.

(4) In computing the total income of any individual for the purpose of assessment, there shall be included-

(5) All income arising to any person by virtue of a settlement or disposition whether revocable or not from assets remaining the property of the ³¹⁸settlor or disponer, shall be deemed to be income of the ³¹⁹settlor or disponer, and all income arising to any person by virtue of a revocable transfer of assets shall be deemed to be income of the transferor and shall be included in the total income of such person ³²⁰.

[* * *]

(6) For the purpose of sub-section (5),-

Section 44. Exemption

(1) Notwithstanding anything contained in this Ordinance, any income or class of income or the income of any person or class of persons specified in Part A of the Sixth Schedule shall be exempt from the tax payable under this Ordinance, subject to the limits, conditions and qualifications laid down therein and shall be excluded from the computation of total income under this Ordinance.

³²⁴(2) Subject to the provisions of this Ordinance and the limits, conditions and qualifications laid down in Part B of the Sixth Schedule,-

³²⁵³²⁶(b) an assessee, being a resident or a non-resident Bangladeshi, shall be entitled to a credit from the amount of tax payable on his total income at the rate of 15% (fifteen percent) of the eligible amount:

Provided that an assessee who fails to submit return of income as required under section 75 shall be entitled to a credit from the amount of tax payable on his total income at the rate of 7.5% (seven point five percent) of the eligible amount

³²⁹***

Provided that the amount admissible under clause (a) shall not, under any circumstances, exceed ³³⁰thirty per cent of the total income of the assessee.

(4) The Government may, by notification in the official Gazette,-

³³²(5) Notwithstanding anything contained in clause (b) of sub-section (4) or any other section in Chapter VI-

³³³(a) the income of a person for the relevant income year shall not be-

in an assessment year if the person fails to-

Provided that the provision of receiving the receipts through bank transfer shall not be applicable for an assessee being individual having gross receipts not exceeding Taka one crore in an income year:

Provided further that the provision of receiving the receipts through bank transfer shall not be applicable for income derived from agriculture or farming.

Section 45. Exemption of income of an industrial undertaking

(1) Subject to the provisions of this Ordinance, the income, profits and gains of an industrial undertaking set up in Bangladesh between the first day of July, 1974, and the thirtieth day of June, 1985 (both days inclusive), shall be exempt from tax payable under this Ordinance for the period specified below-

Explanation.- For the purposes of this section, “industrial undertaking” includes expansion of an existing undertaking if such expansion constitute-

(2) The exemption under sub-section (1) shall apply to an industrial under-taking (hereinafter referred to as the “said undertaking”) which fulfils the following conditions, namely:-

Provided that the Board may admit an application after the expiry of the said period of one hundred and twenty days if it is satisfied that there was sufficient cause for not making the application within the said period.

³³⁴(2A) Subject to the provisions of this Ordinance, the income, profits and gains of an industrial undertaking set up in Bangladesh between the first day of July, 1985, and the thirtieth day of June, ³³⁵1995 (both days inclusive), shall be exempt from the tax payable under this Ordinance for the period specified below-

(2B) The exemption under sub-section (2A) shall apply to an industrial undertaking (hereinafter referred to as the “said undertaking”) which fulfils the following conditions, namely:-

^{339 340}* * *

Provided that the quantum of investment referred to in this clause shall be reduced by the amount of dividend, if any, declared by the company enjoying tax exemption under this section;

Provided that the Board may admit an application after the expiry of the said period of ³⁴⁵one hundred and eighty days if it is satisfied that there was sufficient cause for not making the application within the said period.

³⁴⁶(2C) The Board shall give its decision on an application made under clause (e) of sub-section (2B) within ³⁴⁷three months from the date of receipt of the application by the Board, failing which the undertaking shall be deemed to have been approved by the Board for the purposes of this section.

(3) The income, profits and gains of the said undertaking to which this section applies, shall be computed in accordance with the provisions of sections 28 and 29:

³⁴⁸Provided that in respect of depreciation, only the allowances for normal depreciation specified in paragraph 3 of the Third Schedule shall be allowed.

(4) The profits and gains of the said undertaking shall be computed separately from other income, profits and gains of the assessee, if any, and where the assessee sustains a loss from such undertaking, it shall be carried forward and set off against the profits and gains of the said undertaking for the following year, and where it cannot be wholly set off, the amount of the loss not so set off, shall be carried forward for the next year and so on, but no loss shall be carried beyond the period of exemption allowed under this section.

(5) Nothing contained in this section shall be so construed as to exempt the following:-

(6) Where any exemption has been allowed under this section and it is subsequently discovered by the Deputy Commissioner of Taxes that any one or more of the conditions specified in this section were not fulfilled, the exemption originally allowed shall be deemed to have been wrongly allowed, and the Deputy Commissioner of Taxes may, notwithstanding anything contained in this Ordinance, re-compute the total income of, and the tax payable by, the assessee for the relevant income year and the provisions of Section 93 or 94 shall, so far as may be, apply thereto, the period of two years specified in section 94 being reckoned from the end of the assessment year relevant to the income year in which the infringement was discovered.

(7) An industrial undertaking approved under this section may, not later than six months from the date of approval, apply in writing to the Board for the cancellation of such approval, and the Board may pass such orders thereon as it may deem fit.

³⁴⁹(8) Notwithstanding anything contained in this section, the Board may, in the public interest, cancel or suspend fully or partially any exemption allowed under this section.

Section 46. Exemption of income of a tourist industry

(1) Subject to the provisions of this Ordinance, the income, profits and gains of a tourist industry set up in Bangladesh between the first day of January, 1976, and the thirtieth day of June, 1985 (both days inclusive), shall be exempt from the tax payable under this Ordinance, for the period specified below-

Explanation.- For the purposes of this section, the expression “tourist industry” means a business, industry or undertaking which caters for the tourists including setting up, establishment or running of hotels, motels, ³⁵⁰hunting lodges, amusement and theme park, holiday home, tourist resort, family fun and games, energy park and private picnic spots of such standard as may be prescribed by the Board.

(2) The exemption under sub-section (1) shall apply to a tourist industry (hereinafter referred to as the “said industry”), which fulfils the following conditions, namely:-

³⁵¹(2A) Subject to the provisions of this Ordinance, the income, profits and gains of a tourist industry set up in Bangladesh between the first day of July, 1985, and the thirtieth day of June, ³⁵²2000 (both days inclusive), shall be exempt from the tax payable under this Ordinance, for the period specified below-

(2B) The exemption under sub-section (2A) shall apply to a tourist industry (hereinafter referred to as the “said industry”), which fulfils the following conditions, namely:-

^{355 356}* * *

Provided that the quantum of investment referred to in this clause shall be reduced by the amount of dividend, if any, declared by the company enjoying tax exemption under this section;

³⁶¹(2C) The Board shall give its decision on an application made under clause (d) of sub-section (2B) within ³⁶²three months from the date of receipt of the application by the Board, failing which the industry shall be deemed to have been approved by the Board for the purposes of this section.

(3) The profits and gains of the said industry to which this section applies shall be computed in accordance with the provisions of sections 28 and 29:

Provided that in respect of depreciation, only the allowance for normal depreciation specified in paragraph 3 of the Third Schedule shall be allowed.

(4) The profits and gains of the said industry shall be computed separately from other income, profits and gains of the assessee, if any, and where the assessee sustains a loss from such industry, it shall be carried forward and set off against the profits and gains of the said industry for the following year and where it cannot be wholly set off, the amount of the loss not so set off, shall be carried forward for the next year and so on, but no loss shall be carried forward beyond the period of exemption allowed under this section.

(5) Nothing contained in this section shall be so construed as to exempt the following:-

(6) Where any exemption has been allowed under this section and it is subsequently discovered by the Deputy Commissioner of Taxes that any one or more of the conditions specified in this section were not fulfilled, the exemption originally allowed shall be deemed to have been wrongly allowed and the Deputy Commissioner of Taxes may, notwithstanding anything contained in this Ordinance, re-compute the total income of, and the tax payable by, the assessee for the relevant income year, and the provisions of section 93 or 94 shall, so far as may be, apply thereto, the period of two years specified in section 94 being reckoned from the end of the assessment year relevant to the income year in which the infringement was discovered.

(7) A tourist industry approved under this section may, not later than six months from the date of approval, apply in writing to the Board for the cancellation of such approval, and the Board may pass such orders thereon as it may deem fit.

³⁶³(8) Notwithstanding anything contained in this section, the Board may, in the public interest, cancel or suspend fully or partially the exemption allowed under this section.

Exemption from tax of newly established industrial undertakings, etc. in certain cases

³⁶⁴46A. (1) Subject to the provisions of this Ordinance, ³⁶⁵profits and gains under section 28 from an industrial undertaking, tourist industry or physical infrastructure facility (hereinafter referred to as the said undertaking) set-up in Bangladesh between the first day of July, 1995and the thirtieth day of ³⁶⁶June, 2008 (both days inclusive) shall be exempt from the tax payable under this Ordinance for the period specified below-

³⁷¹* * *

³⁷²(1A) industrial undertaking, tourist industry, or physical infrastructure facility does not include expansion of an existing undertaking for the purpose of this section,-

Explanation.- 'high value garments' mean overcoats, jackets and suits.

(2) The exemption under sub-section (1) shall apply to the said undertaking if it fulfils the following conditions, namely:-

³⁷⁴* * *

³⁷⁵(c) that thirty per cent of the income exempted under sub-section (1) is invested in the said undertaking or in any new industrial undertakings during the period of exemption or within one year from the end of the period to which the exemption under that sub-section relates and in addition to that another ten per cent of the income exempted under sub-section (1) is invested in each year before the expiry of three months from the end of the income year in the purchase of shares of a company listed with any stock exchange, failing which the income so exempted shall, notwithstanding the provisions of this Ordinance, be subject to tax in the assessment year for which the exemption was allowed:

Provided that the quantum of investment referred to in this clause shall be reduced by the amount of dividend, if any, declared by the company enjoying tax exemption under this section ³⁷⁶:

Provided further that, the provision for purchase of shares of a company listed with any stock exchange referred to in this clause shall not be applicable to ready made garments industry, if it re-invested forty percent of the income exempted under sub-section (1) in the said undertaking or in any new industrial undertaking during the period of exemption or within one year from the end of the period to which the exemption under that sub-section relates.

³⁷⁸(2A) Notwithstanding anything contained in this section-

the exemption of tax of that said undertaking shall be deemed to have been withdrawn for that assessment year in which such transaction is made.

(3) The Board shall give its decision on an application made under clause (f) of sub-section (2) within ³⁷⁹forty-five days from the date of receipt of the application by the Board, failing which the undertaking shall be deemed to have been approved by the Board for the purposes of this section ³⁸⁰: Provided that the Board shall not reject any application made under this section unless the applicant is given a reasonable opportunity of being heard.

(4) The Board may, on an application of any person aggrieved by any decision or order passed under sub-section (3), if the application is made within four months of the receipt of such decision or order, review the previous decision or order and pass such order in relation thereto as it thinks fit.

(5) The profits and gains of the undertaking to which this section applies shall be computed in the same manner as is applicable to income chargeable under the head “Income from business or profession”:

³⁸¹Provided that in respect of depreciation, only the allowances for normal depreciation specified in paragraph 3 of the Third Schedule shall be allowed.

(6) The profits and gains of the said undertaking shall be computed separately from other income, profits and gains of the assessee, if any, and where the assessee sustains a loss from such undertaking it shall be carried forward and set off against the profits and gains of the said undertaking for the following year and where it cannot be wholly set off, the amount of the loss not so set off, shall be carried forward for the next year and so on, but no loss shall be carried forward beyond the period specified by the Board in the order issued under sub-section (3) or (4).

(7) Unless otherwise specified by the Government, nothing contained in this section shall be so construed as to exempt the following from tax chargeable under this section:-

[* * *

(8) Where any exemption is allowed under this section and in the course of making assessment, the Deputy Commissioner of Taxes is satisfied that any one or more of the conditions specified in this section are not fulfilled, the exemption will stand withdrawn for the relevant assessment year and the Deputy Commissioner of Taxes shall determine the tax payable for such year.

(9) Any such undertaking approved under this section may, not latter than one year from the date of approval, apply in writing to the Board for the cancellation of such approval, and the Board may pass such orders thereon as it may deem fit.

(10) Notwithstanding anything contained in this section, the Board may, in the public interest, cancel or suspend fully or partially any exemption allowed under this section.

(11) The Board may make rules regulating the procedure for the grant of approval under sub-section (3), review under sub-section (4) and furnishing of information regarding payment of other taxes by the said undertaking and any other matters connected with or incidental to operation of this section.

Exemption from tax of newly established industrial undertakings set up between the period of July, 2011 and 384[June, 385[2019]],etc, in certain cases.

³⁸⁶46B.(1) Subject to the provisions of this Ordinance, income, profits and gains under section 28 from an industrial undertaking (hereinafter referred to as the said undertaking) set-up in Bangladesh between the first day of July, 2011 and ³⁸⁷the thirtieth day of June, ³⁸⁸2019 (both days inclusive) shall be exempted from the tax payable under this Ordinance for the period, and at the rate, specified below: if the said undertaking is set-up in- ³⁸⁹(i) ³⁹⁰Dhaka, Mymensingh and Chittagong divisions, excluding Dhaka, Narayanganj, Gazipur, Chittagong, Rangamati, Bandarban and Khagrachari districts, for a period of five years beginning with the month of commencement of commercial production of the said undertaking:

| Period of Exemption | Rate of Exemption | | --- | --- | | For the first and second year | 100% of income | | For the third year) | 60% of income | | For the fourth year | 40% of income | | For the fifth year | 20% of income |

³⁹¹(ii) Rajshahi, Khulna, Sylhet, Barisal and Rangpur divisions (excluding City Corporation area) and Rangamati, Bandarban and Khagrachari districts, for a period of ten years beginning with the month of commencement of commercial production of the said undertaking:

| Period of Exemption | Rate of Exemption | | --- | --- | | For the first and second year | 100% of income | | For the third year | 70% of income | | For the fourth year | 55% of income | | For the fifth year | 40% of income | | For the sixth year | 25% of income | | For the seven year | 20% of income |

Provided that any industry engaged in the production of item as referred to in clause (e) or clause (I) of sub section (2) shall be entitled to exemption from tax under the provision of this section even if it is set up in the districts of Dhaka, Gazipur, Narayanganj or Chittagonj." (2)  For the purpose of this section,- "industrial undertaking" means an industry engaged in the production of-

³⁹²(aa) automobile manufacturing industry; ³⁹³(dd) bi-cycle manufacturing industry; ³⁹⁴(gg) brick made of automatic Hybrid Hoffmann Kiln ³⁹⁵or Tunnel Kiln technology; (3) Notwithstanding anything contained in sub-section (2), for the purpose of this section industrial undertaking shall not include expansion of such an existing undertaking. (4) The exemption under sub-section (1) shall apply to the said undertaking if it fulfils the following conditions, namely:- capital of not less than two million taka on the date of commencement of commercial production; assessment year for which the exemption was allowed: Provided that the quantum of investment referred to in this clause shall be reduced by the amount of dividend, if any, declared by the company enjoying tax exemption under this section; commencement of the new business;

(5) Notwithstanding anything contained in this section, where an  undertaking enjoying exemption of tax under this section is engaged in any commercial transaction with another undertaking or company having one or more common sponsor directors, and during the course of making an assessment of the said undertaking if the Deputy Commissioner of Taxes is satisfied that the said undertaking has purchased or sold goods at higher or lower price in comparison to the market price with intent to reduce the income of another undertaking or company, the exemption of tax of that  undertaking shall be deemed to have been withdrawn for that assessment year in which such transaction is made. (6)  The Board shall give its decision on an application made under clause (e) of sub-section (4) within forty five days from the date of receipt of the application by the Board, failing which the undertaking shall be deemed to have been approved by the Board for the purposes of this section:             Provided that the Board shall not reject any application made under this section unless the applicant is given a reasonable opportunity of being heard. (7) The Board may, on an application of any person aggrieved by any decision or order passed under sub-section (6), if the application is made within four months of the receipt of such decision or order, review the previous decision, order or orders and pass such order in relation thereto as it thinks fit. (8) The income, profits and gains of the undertaking to which this section applies shall be computed in the same manner as is applicable to income chargeable under the head ''Income from business or profession'':             Provided that in respect of depreciation, only the allowances for normal depreciation specified in paragraph 3 of the Third Schedule shall be allowed. (9)  The income, profits and gains of the undertaking to which this section applies shall be computed separately from other income, profits and gains of the assessee, if any, and where the assessee sustains a loss from such undertaking it shall be carried forward and set off against the profits and gains of the said undertaking for the next year and where it cannot be wholly set off, the  amount of the loss not  so set off, shall be carried forward for the following year and so on, but no loss shall be carried forward beyond the period specified by the Board in the order issued under sub-section (6) or (7). (10) Unless otherwise specified by the Government, nothing contained in this section shall be so construed as to exempt the following from tax chargeable under this section:-

(11) Where any exemption is allowed under this section and in the course of making assessment, the Deputy Commissioner of Taxes is satisfied that any one or more of the conditions specified in this section are not fulfilled ³⁹⁷or any individual not being a Bangladeshi citizen is employed or allowed to work without prior approval of the Board of Investment or any competent authority of the Government, as the case may be, for this purpose, the exemption shall stand withdrawn for the relevant assessment year and the Deputy Commissioner of Taxes shall determine the tax payable for such year. (12) Any such undertaking approved under this section may, not later than one year from the date of approval, apply in writing to the Board for the cancellation of such approval, and the Board may pass such order or orders thereon as it may deem fit. (13) Notwithstanding anything contained in this section, the Board may, in the public interest, cancel or suspend fully or partially any exemption allowed under this section. (14) The Board may make rules regulating the procedure for the grant of approval under sub-section (6), review under sub-section (7), furnish information regarding payment of other taxes by the said undertaking, and take such other measures connected therewith or incidental to the operation of this section as it may deem fit.]

Exemption from tax of newly established industrial undertakings set up between the period of July, 2019 and June, 2024, etc. in certain cases.

³⁹⁸46BB.  (1) Subject to the provisions of this Ordinance, income, profits and gains under section 28 from an industrial undertaking (hereinafter referred to as the said undertaking) set-up in Bangladesh between the first day of July, 2019 and the thirtieth day of June, 2024 (both days inclusive) shall be exempted from the tax payable under this Ordinance for the period, and at the rate, specified below:

| Period of Exemption | Rate of Exemption | | --- | --- | | For the first year | 90% of income | | For the second year | 80% of income | | For the third year | 60% of income | | For the fourth year | 40% of income | | For the fifth year | 20% of income ; |

| Period of Exemption | Rate of Exemption | | --- | --- | | For the first and second year | 90% of income | | For the third year | 80% of income | | For the fourth year | 70% of income | | For the fifth year | 60% of income | | For the sixth year | 50% of income | | For the seventh year | 40% of income | | For the eighth year | 30% of income | | For the ninth year | 20% of income | | For the tenth year | 10% of income: |

Provided that any industry engaged in the production of item as referred to in clause (viii) or clause (xii) of sub section (2) shall be entitled to exemption from tax under the provision of this section even if it is set up in the districts of Dhaka, Gazipur, Narayanganj or Chattogram.

(2) For the purpose of this section, "industrial undertaking" means¾

(xiii) furniture;

(xvii) LED TV;

(xviii) locally produced fruits and vegetables processing;

(xxii) plastic recycling;

(xxiii) textile machinery;

(xxiv) tissue grafting;

       (xxvi) tyre manufacturing;

³⁹⁹(xxvii) Electrical transformer;

(xxviii) Artificial fiber or manmade fiber manufacturing;

(xxix) Automobile parts and components manufacturing;

(xxxi) Artificial Intelligence based system design and/or manufacturing;

(xxxii) Nanotechnology based products manufacturing;

(xxxiii) Aircraft heavy maintenance services including parts manufacturing;

(3) Notwithstanding anything contained in sub-section (2), for the purpose of this section industrial undertaking shall not include expansion of such an existing undertaking.

(4) The exemption under sub-section (1) shall apply to the said undertaking if it fulfils the following conditions, namely:¾

 (ii)  a company as defined in কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের

১৮ নং আইন) with its registered office in Bangladesh and having a subscribed and paid up capital of not less than two million taka on the date of commencement of commercial production;

Provided that the quantum of investment referred to in this clause shall be reduced by the amount of dividend, if any, declared by the company enjoying tax exemption under this section;

(5) Notwithstanding anything contained in this section, where an undertaking enjoying exemption of tax under this section is engaged in any commercial transaction with another undertaking or company having one or more common sponsor directors, and during the course of making an assessment of the said undertaking if the Deputy Commissioner of Taxes is satisfied that the said undertaking has purchased or sold goods at higher or lower price in comparison to the market price with intent to reduce the income of another undertaking or company, the exemption of tax of that undertaking shall be deemed to have been withdrawn for that assessment year in which such transaction is made.

(6) The Board shall give its decision on an application made under clause (e) of sub-section (4) within forty five days from the date of receipt of the application by the Board, failing which the undertaking shall be deemed to have been approved by the Board for the purposes of this section:

Provided that the Board shall not reject any application made under this section unless the applicant is given a reasonable opportunity of being heard.

(7) The Board may, on an application of any person aggrieved by any decision or order passed under sub-section (6), if the application is made within four months of the receipt of such decision or order, review the previous decision, order or orders and pass such order in relation thereto as it thinks fit.

(8) The income, profits and gains of the undertaking to which this section applies shall be computed in the same manner as is applicable to income chargeable under the head ''Income from business or profession'' :

Provided that in respect of depreciation, only the allowances for normal depreciation specified in paragraph 3 of the Third Schedule shall be allowed.

 (9) The income, profits and gains of the undertaking to which this section applies shall be computed separately from other income, profits and gains of the assessee, if any, and where the assessee sustains a loss from such undertaking it shall be carried forward and set off against the profits and gains of the said undertaking for the next year and where it cannot be wholly set off, the amount of the loss not so set off, shall be carried forward for the following year and so on, but no loss shall be carried forward beyond the period specified by the Board in the order issued under sub-section (6) or (7).

(10) Unless otherwise specified by the Government, nothing contained in this section shall be so construed as to exempt the following from tax chargeable under this section, namely-

(11) Where any exemption is allowed under this section and in the course of making assessment, the Deputy Commissioner of Taxes is satisfied that any one or more of the conditions specified in this section are not fulfilled or any individual not being a Bangladeshi citizen is employed or allowed to work without prior approval of any competent authority of the Government for this purpose, the exemption shall stand withdrawn for the relevant assessment year and the Deputy Commissioner of Taxes shall determine the tax payable for such year.

 (12) Any such undertaking approved under this section may, not later than one year from the date of approval, apply in writing to the Board for the cancellation of such approval, and the Board may pass such order or orders thereon as it may deem fit.

 (13) Notwithstanding anything contained in this section, the Board may, in the public interest, cancel or suspend fully or partially any exemption allowed under this section.

 (14) The Board may make rules regulating the procedure for the grant of approval under sub-section (6), review under sub-section (7), furnish information regarding payment of other taxes by the said undertaking, and take such other measures connected therewith or incidental to the operation of this section as it may deem fit.

Explanation.- For the purpose of this section set-up means completion of establishment of the industry referred to in this section.

Exemption from tax of newly established physical infrastructure facility set up between the period of July, 2011 and400[June,401[2019]], etc, in certain cases.

⁴⁰²46C.⁴⁰³(1) Subject to the provisions of this Ordinance, income, profits and gains under section 28 from physical infrastructure facility, hereinafter referred to as the said facility, set up in Bangladesh between the first day of July, 2011 and the thirtieth day of June, ⁴⁰⁴2019 (both days inclusive) shall be exempted from the tax payable under this Ordinance for ten years beginning with the month of commencement of commercial operation, and at the rate, specified below:

| Period of Exemption | Rate of Exemption | | --- | --- | | For the first first and second year) | 100% of income | | For the third year) | 80% of income | | For the fourth year) | 70% of income | | For the fifth year) | 60% of income | | For the sixth year) | 50% of income | | For the seventh year) | 40% of income | | For the eight year) | 30% of income | | For the ninth year) | 20% of income | | For the tenth year) | 10% of income |

2. For the purpose of this section, "physical infrastructure facility"

means,-

(3) The exemption under sub-section (1) shall apply to the said facility if it fulfils the following conditions, namely:-

Provided that the quantum of investment referred to in this clause shall be reduced by the amount of dividend, if any, declared by the company enjoying tax exemption under this section:

(4) The Board shall give its decision on an application made under clause (d) of sub-section (3) within forty five days from the date of receipt of the application by the Board, failing which the facility shall be deemed to have been approved by the Board for the purposes of this section:

Provided that the Board shall not reject any application made under this section unless the applicant is given a reasonable opportunity of being heard.

(5) The Board may, on an application of any person aggrieved by any decision or order passed under sub-section (4), if the application is made within four months of the receipt of such decision or order, review the previous decision, order or orders and

pass such order in relation thereto as it thinks fit.

(6) The income, profits and gains of the facility to which this section applies shall be computed in the same manner as is applicable to income chargeable under the head "Income from business or profession":

Provided that in respect of depreciation, only the allowances for normal depreciation specified in paragraph 3 of the Third Schedule shall be allowed.

(7) The income, profits and gains of the facility to which this section applies shall be computed separately from other income, profits and gains of the assessee, if any, and where the assessee sustains a loss from such facility it shall be carried forward and set

off against the profits and gains of the said facility for the next year and where it cannot be wholly set off, the amount of the loss not so set off, shall be carried forward for the following year and so on, but no loss shall be carried forward beyond the period specified by the Board in the order issued under sub-section (4) or (5).

(8) Unless otherwise specified by the Government, nothing contained in this section shall be so construed as to exempt the following from tax chargeable under this section :-

(9) Where any exemption is allowed under this section and in the course of making assessment, the Deputy Commissioner of Taxes is satisfied that any one or more of the conditions specified in this section are not fulfilled ⁴⁰⁶or any individual not being a Bangladeshi citizen is employed or allowed to work without prior approval of the Board of Investment or any competent authority of the Government, as the case may be, for this purpose, the exemption shall stand withdrawn for the relevant assessment year and the Deputy Commissioner of Taxes shall determine the tax payable for such year.

(10) Any such facility approved under this section may, not later than one year from the date of approval, apply in writing to the Board for the cancellation of such approval, and the Board may pass such order or orders thereon as it may deem fit.

(11) Notwithstanding anything contained in this section, the Board may, in the public interest, cancel or suspend fully or partially any exemption allowed under this section.

(12) The Board may make rules regulating the procedure for the grant of approval under sub-section (4), review under sub-section (5), furnish information regarding payment of other taxes by the said facility, and take such other measures connected therewith or incidental to the operation of this section as it may deem fit.

Exemption from tax of newly established physical infrastructure facility set up between the period of July, 2019 and June, 2024, etc. in certain cases

⁴⁰⁷46CC.   (1) Subject to the provisions of this Ordinance, income, profits and gains under section 28 from physical infrastructure facility, hereinafter referred to as the said facility, set up in Bangladesh between the first day of July, 2019 and the thirtieth day of June, 2024 (both days inclusive) shall be exempted from the tax payable under this Ordinance for ten years beginning with the month of commencement of commercial operation, and at the rate, specified below:

| Period of Exemption | Rate of Exemption | | --- | --- | | For the first and second year | 90% of income | | For the third year | 80% of income | | For the fourth year | 70% of income | | For the fifth year | 60% of income | | For the sixth year | 50% of income | | For the seventh year | 40% of income | | For the eighth year | 30% of income | | For the ninth year | 20% of income | | For the tenth year | 10% of income. |

 (2) For the purpose of this section, "physical infrastructure facility" means,-

(xiii) rapid transit;

(xvii) underground rail;

(xviii) waste treatment plant; or

(3) The exemption under sub-section (1) shall apply to the said facility if it fulfils the following conditions, namely:¾

                       (a)   that the said facility is owned and managed by¾

Provided that the quantum of investment referred to in this clause shall be reduced by the amount of dividend, if any, declared by the company enjoying tax exemption under this section;

(4) The Board shall give its decision on an application made under clause (d) of sub-section (3) within forty five days from the date of receipt of the application by the Board, failing which the facility shall be deemed to have been approved by the Board for the purposes of this section:

Provided that the Board shall not reject any application made under this section unless the applicant is given a reasonable opportunity of being heard.

(5) The Board may, on an application of any person aggrieved by any decision or order passed under sub-section (4), if the application is made within four months of the receipt of such decision or order, review the previous decision, order or orders and pass such order in relation thereto as it thinks fit.

(6) The income, profits and gains of the facility to which this section applies shall be computed in the same manner as is applicable to income chargeable under the head "Income from business or profession":

Provided that in respect of depreciation, only the allowances for normal depreciation specified in paragraph 3 of the Third Schedule shall be allowed.

(7) The income, profits and gains of the facility to which this section applies shall be computed separately from other income, profits and gains of the assessee, if any, and where the assessee sustains a loss from such facility, it shall be carried forward and set off against the profits and gains of the said facility for the next year and where it cannot be wholly set off, the amount of the loss not so set off, shall be carried forward for the following year and so on, but no loss shall be carried forward beyond the period specified by the Board in the order issued under sub-section (4) or (5).

(8) Unless otherwise specified by the Government, nothing contained in this section shall be so construed as to exempt the following from tax chargeable under this section, namely¾

(9) Where any exemption is allowed under this section and in the course of making assessment, the Deputy Commissioner of Taxes is satisfied that any one or more of the conditions specified in this section are not fulfilled or any individual not being a Bangladeshi citizen is employed or allowed to work without prior approval of any competent authority of the Government for this purpose, the exemption shall stand withdrawn for the relevant assessment year and the Deputy Commissioner of Taxes shall determine the tax payable for such year.

(10) Any such facility approved under this section may, not later than one year from the date of approval, apply in writing to the Board for the cancellation of such approval, and the Board may pass such order or orders thereon as it may deem fit.

(11) Notwithstanding anything contained in this section, the Board may, in the public interest, cancel or suspend fully or partially any exemption allowed under this section.

(12) The Board may make rules regulating the procedure for the grant of approval under sub-section (4), review under sub-section (5), furnish information regarding payment of other taxes by the said facility, and take such other measures connected therewith or incidental to the operation of this section.

Section 47. Exemption of income of co-operative societies

(1) The tax shall not be payable by a co-operative society ⁴⁰⁸*** in respect of-

⁴⁰⁹***

⁴¹⁰***

Explanation.-For the purpose of this section,-

(2) Nothing contained in sub-section (1) shall apply to a co-operative society carrying on such business of insurance as is carried on by a mutual insurance association in respect of its profits and gains to which paragraph 8 of the Fourth Schedule applies.

Section 48. Deduction at source and advance payment of tax

(1) Notwithstanding that regular assessment in respect of any income is to be made later in any assessment year, and without prejudice to the charge and recovery of tax under this Ordinance after such assessment, the tax on income shall be payable by deduction or collection at source, or by way of advance payment, in accordance with the provisions of this Chapter.

(2) Any sum deducted or collected, or paid by way of advance payment, in accordance with the provisions of this Chapter, shall, for the purpose of computing the income of an assessee, be deemed to be the income received, and be treated as payment of tax in due time, by the assessee.

Section 49. Income subject to deduction at source

(1) Tax payable under this Ordinance shall be deducted or collected at source in respect of the following income, namely:-

⁴¹³(aa) income from discount on the real value of Bangladesh Bank bills;

⁴¹⁴* * *

⁴¹⁵(d) income derived by the importers on account of import of goods;

⁴¹⁸(ii) income derived on account of travel agency commission or incentive bonus;

⁴¹⁹* * ⁴²⁰ * *

⁴²³(n) income derived from commission, discount or fees payable to distributors for distribution or marketing of manufactured goods ⁴²⁴;

⁴²⁵(oo). income dierived on account of payment from workers’ participation fund.

⁴²⁶(r) income derived on account of fees for professional or technical services;

⁴²⁷* * *

⁴²⁸* * *

⁴²⁹* * *

⁴³⁰(za) income derived on account of survey by a surveyor of general insurance company;

⁴³¹* * *

⁴³⁵(zf) income derived on account of shipping business carried on both inside and outside Bangladesh by a resident assessee.

⁴³⁸***

⁴³⁹(zkk) income derived on account of export cash subsidy;

⁴⁴⁰***

⁴⁴¹(zm) on account of ⁴⁴²*** renewal of trade licence;

⁴⁴³***

⁴⁴⁷***

with any service provided to any foreign person ⁴⁴⁹;

(zzff) deduction of tax from any sum paid by real estate developer to land owner ⁴⁵³;

(2) Tax to be deducted at source under sub-section (1) in respect of any income shall be deducted in accordance with the provisions of this Chapter by the person responsible for making payment which constitutes the income of the payee.

(3) For the purpose of this Chapter, “person responsible for making payment”, with its grammatical variations and cognate expressions, means-

Deduction at source from discount on the real value of Bangladesh Bank bills

⁴⁵⁵50A. Any person responsible for paying any amount on account of discount on the real value of Bangladesh Bank bills shall, at the time of making such payment, deduct tax at the maximum rate on the amount so payable or the rate applicable to such amount, whichever is greater ⁴⁵⁶:

Provided that no tax shall be deducted under this section where the said bill is purchased by an approved superannuation fund or pension fund or gratuity fund or a recognised provident fund, or a workers' profit participation fund.

Section 50. Deduction at source from salaries

(1) The person responsible for making any payment which constitutes income of the payee classifiable under the head “Salaries” shall, at the time of making such payment, deduct tax on the amount so payable at a rate representing the average of the rates applicable to the estimated total income of the payee under that head.

⁴⁵⁷(1A) Notwithstanding the provision of sub section (1), where any Government official is acting as Drawing and Disbursing Officer (DDO) or making or signing a bill for himself or for any other official subordinate to him to draw salary from the Government or any authority, as the case may be, he shall, at the time of making or signing such bill, deduct tax at a rate representing the average of the rates applicable to the estimated total income of such officials if such annual salary chargeable to tax exceeds the taxable limit for that income year.; এবং (1B) For the purposes of sub-section (1A), respective Government Accounts Office shall issue a tax deduction certificate in prescribed form within the thirty first day of July following the financial year.

(2) At the time of making any deduction under ⁴⁵⁸sub-sections (1) and (1A) , the amount to be deducted may be increased or decreased for the purpose of adjusting any excess or deficiency arising out of any previous deductions or failure to make deductions.

⁴⁵⁹(2A) The payment under ⁴⁶⁰sub-section (1) and (1A) shall be made by such person with or without deduction of tax in accordance with a certificate, issued by the Deputy Commissioner of Taxes after being satisfied on an application made by the payee in this behalf, where such certificate specifies that-

(3) For the purposes of deduction under ⁴⁶¹sub-section (1) and (1A) in respect of salary payable in a foreign currency, the value in taka of such salary shall be calculated at such rate as the Board may prescribe.

Deduction of tax from payment of remuneration to Members of Parliament

⁴⁶²50B. Any person responsible for making any payment as remuneration to a Member of Parliament shall, at the time of making such payment, deduct tax on the amount so payable at a rate representing the average of the rates applicable to the estimated total remuneration of the payee for that income year.

Deduction at source from discount, interest or profit on securities

⁴⁶³51.  Any person responsible for issuing a security of the Government, or security approved by the Government or Bangladesh Securities and Exchange Commission, income of which is classifiable under the head “interest on securities”, shall collect income-tax at the rate of five percent (5%) on discount, interest or profit on securities at the time of making payment or credit, whichever is earlier.

Section 51A. [Omitted]

[Deduction at source from interest on fixed deposits- Omitted by section 2 of the Income tax (Amendment) Ordinance, 1985 (Ordinance No. XXXVI of 1985).]

Deduction from payment to contractors, etc.

⁴⁶⁴52. (1) Where any payment is to be made by a specified person to a resident on account of-

rendering a service mentioned in any other section of Chapter VII;

the person responsible for making the payment shall, at the time of making such payment, deduct tax at such rate, not exceeding ten percent (10%) of the base amount, as may be prescribed:

⁴⁶⁵Provided that–

⁴⁶⁶(a) the rate of tax shall be fifty percent (50%) higher if the payee fails to submit proof of submission of return at the time of making the payment;

⁴⁶⁷***

⁴⁶⁸(bb) the rate of tax shall be fifty percent (50%) higher if the payee does not receive payment by bank transfer;

A= the amount of tax paid under section 53,

B= the amount of tax applicable under this section if no tax were paid under section 53.

⁴⁶⁹(d) where any goods on which tax has been paid at source under section 53E is supplied, tax at source on the said supply shall be B-A, where-

A = the amount of tax paid under section 53E,

          B = the amount of tax applicable under this section if no tax were paid under section 53E⁴⁷⁰:

⁴⁷¹Provided that in case of the goods supplied by any distributor or any other person under a contract as referred in sub-section (3) of section 53E, the term “B” as mentioned in paragraph (d) shall be computed as follows:

 B={the selling price of the company to the distributor or the other person as referred in section 53E (3)} x 7% x 5%.

(2) In this section-

⁴⁷³(xiia) an association of persons;

(xiii) a public-private partnership;

⁴⁷⁵(xv) any e-commerce platform, not being any other specified persons, called by whatever name having annual turnover exceeding Taka one crore; ⁴⁷⁶***

⁴⁷⁷(xvi) hotel, resort, community center and transport agency having annual turnover exceeding Taka one crore;

⁴⁷⁸(xvii) an artificial juridical person;

Section 52A. Deduction from payment of royalties etc

(1) Where any payment is to be made by a specified person to a resident on account of royalties, franchise, or the fee for using license, brand name, patent, invention, formula, process, method, design, pattern, knowhow, copyright, trademark, trade name, literary or musical or artistic composition, survey, study, forecast, estimate, customer list or any other intangibles, the person responsible for making the payment shall, at the time of making payment, deduct income tax at the rate specified below-

| Description of payment | Rate of deduction of tax | | --- | --- | | (a) Where base amount does not exceed taka 25 lakh | 10% | | (b) Where base amount exceeds taka 25 lakh | 12%: |

Provided that the rate of tax shall be fifty percent (50%) higher if the payee does not have a twelve-digit Taxpayer’s Identification Number at the time of making the payment.

(2) In this section-

Deduction from the payment of certain services

52AA. ⁴⁸¹(1) Where any payment is to be made by a specified person to a resident on account of a service as mentioned in this section, the person responsible for making the payment shall, at the time of making such payment, deduct income tax at the rate specified in the Table below:-

Table

| SL. No | Description of service and payment | Rate | | --- | --- | --- | | 1. | Advisory or consultancy service | 10% | | 2. | (i) Professional service; (ii) technical services fee; or (iii) technical assistance fee. | 10% | | 3. | (i) Catering service; (ii) Cleaning service; (iii) Collection and recovery service; (iv) Private security service; (v) Manpower supply service; (vi) Creative media service; (vii) Public relations service; (viii) Event management service; (ix) Training, workshop, etc. organization and management service; (x) Courier service; (xi) Packing and Shifting service; (xii) Any other service of similar nature- (a) on commission or fee (b) on gross bill amount | 10% 2% | | 4. | Media buying agency service (a) on commission or fee (b) on gross bill amount | 10% 0.65% | | 5. | Indenting commission | 8% | | 6. | Meeting fees, training fees or honorarium | 10% | | 7. | Mobile network operator, technical support service provider | 12% | | 8. | Credit rating service | 10% | | 9. | Motor garage or workshop | 8% | | 10. | Private container port or dockyard service | 8% | | 11. | Shipping agency commission | 8% | | 12. | Stevedoring/berth operator /terminal operator/Ship handling operator – (a) on commission or fee (b) on gross bill amount | 10% 5% | | | | | | 13. | (i) Transport service, carrying service, vehicle rental service, Repair and maintenance service; (ii) Any other service under any sharing economy platform including ride sharing service, coworking space providing service and accommodation providing service; | 5% | | 14. | Wheeling charge for electricity transmission | 3% | | 15. | Internet Service | 10% | | 16. | Service delivery agents engaged in mobile financial services or channel partners of mobile financial services | 10% | | 17. | Any other service which is not mentioned in Chapter VII of this Ordinance and is not a service provided by any bank, insurance, mobile financial services or financial institutions. | 10% |

Provided that-

tax calculated on commission or fee applying the relevant rate in the table; and

B = Gross bill amount.

C = 10% of Sl. 3 and 2.5% for Sl. 4, and

D = rate of tax applicable on commission or fee;

(2) In this section-

knowledge.]

Collection of tax from clearing and forwarding agents

⁴⁸³52AAA. The Commissioner of Customs shall make collection on account of commission receivable by clearing and forwarding agents licensed under Customs Act, 1969 at the rate of ⁴⁸⁴ten percent on such commission at the time of clearance of goods imported or exported.

Section 52B. Collection of tax from Cigarette manufacturers

⁴⁸⁵Any person responsible for selling banderols to any manufacturer of cigarettes shall, at the time of selling banderols, collect tax from such manufacturers on account of the manufacture of cigarette at the rate of ten percent (10%) of the value of the banderols. Explanation.- For the purposes of this section, “manufacture of cigarettes” means manufacture of cigarettes manually without any mechanical aid whatsoever.

Deduction at source from compensation against acquisition of property

⁴⁸⁶52C.- Any person, responsible for paying any amount of compensation against acquisition by the Government of any immovable property shall, at the time of paying such compensation deduct advance tax at the rate of,-

Deduction at source from interest on saving instruments

⁴⁸⁹⁴⁹⁰52D. Notwithstanding anything contained in any other provision of this Ordinance or any other law being in force in respect of exemption from tax on interest of savings instrument purchased by an approved superannuation fund or pension fund or gratuity fund or a recognized provident fund or a workers’ profit participation fund, any person responsible for making any payment by way of interest on any savings instruments shall, at the time of such payment, deduct income tax at the rate of ⁴⁹¹ten per cent (10%) on such interest:

Provided that no tax shall be deducted under this section where the cumulative investment at the end of the income year in the pensioners' savings certificate does not exceed five lakh taka:

Provided further that no tax shall be deducted from interest or profit arising from Wage earners development bond, US dollar premium bond, US dollar investment bond, Euro premium bond, Euro investment bond, Pound sterling investment bond or Pound sterling premium bond.

Deduction from payment to a beneficiary of workers’ participation fund

⁴⁹²52DD. (1)Notwithstanding anything contained in any other provision of this Ordinance or any other law being in force in respect of exemption from tax on payments from workers’ participation fund, any person responsible for making any payment from such fund to a beneficiary shall, at the time of payment, deduct tax at the rate of 5% (five percent) on whole payment.

(2) No tax under sub-section (1) shall be deducted from the payment of worker’s participation fund where the following conditions are met-

(i )the beneficiary does not have taxable income; and

Section 52E. [Omitted]

⁴⁹³ Collection of tax on account of bonus- Omitted by section 53 of অর্থ আইন, ২০০১ (২০০১ সনের ৩০ নং আইন).

Collection of tax from brick manufacturers

⁴⁹⁴52F.  Any person responsible for issuing or renewal of permission for the manufacture of  bricks shall not issue or renew such permission unless the application for issuance or renewal of such permission is accompanied by a tax clearance certificate of the preceding assessment year along with the receipt of the tax verified by the Deputy Commissioner of Taxes at the following rates:

Explanation.¾For the purpose of this section, the word "section" shall have the same meaning as defined in মৌসুমী ইটভাটা মূল্য সংযোজন কর বিধিমালা, ২০০৪.

Section 52G. [Omitted]

[Deduction from fees for services rendered by doctors.- Omitted by section 25 of অর্থ আইন, ২০০৪ (২০০৪ সনের ১৬ নং আইন)

Section 52H. [Omitted]

[Collection of tax from persons engaged in the real estate business.- Omitted by section 64 of অর্থ আইন, ২০০০ (২০০০ সনের ১৫ নং আইন)

Section 52I. Deduction from the commission of letter of credit

Any person responsible for opening letter of credit for the purpose of import of goods for himself or for any other person shall, at the time of collecting commission with respect to letter of credit, deduct income tax at the rate of five per cent on the amount of such commission.]

Section 52J. [Omitted]

Collection of tax from travel agent- [Omitted by section 54 of অর্থ আইন, ২০০১ (২০০১ সনের ৩০ নং আইন).]

Collection of tax from travel agent

⁴⁹⁵52JJ. Collection of tax from travel agent.- (1) Notwithstanding anything contained in any other provisions of this Ordinance, any person responsible for making any payment to a resident any sum by way of commission or discount or any other benefits, called by whatever name, convertible into money for selling passenger tickets or air cargo carriage shall deduct or collect advance tax at the rate of zero point three zero percent (0.30%) of the total value of the tickets or any charge for carrying cargo by air at the time of payment to such resident. (2) Where any incentive bonus, performance bonus or any other benefits, called by whatever name, is to be paid in relation to such sale of tickets or bill for carrying cargo by air in addition to the amount mentioned in sub-section (1), person responsible for making such payment shall deduct an amount equal to (A/B) x C, where- “A” is the amount of incentive bonus, performance bonus or any other benefits as mentioned in subsection (2), “B” is the amount of commission or discount or any other benefits as mentioned in sub-section (1), and “C” is the amount of source tax on commission or discount or any other benefits as mentioned in subsection (1). (3) For the purpose of computation of value of tickets or charge, any payment made in respect of any embarkation fees, travel tax, flight safety insurance, security tax and airport tax shall not be included in such value or charge. Explanation.-In this section, “payment” includes a transfer, a credit or an adjustment of payment.

Collection of tax by City Corporation or Pourashava at the time of renewal of trade licence.

⁴⁹⁶52K. Any person responsible for renewal of trade licence shall collect tax at the time of such renewal of each trade license at the rate of –

[Omitted]

⁵⁰³* * *

Collection of tax from freight forward agency commission.

⁵⁰⁴52M. Any person responsible for making any payment by way of freight forward agency commission, at the time of making such payment ⁵⁰⁵or credit of such payment to the account of the payee, shall deduct tax at the rate of ⁵⁰⁶fifteen percent of the said amount.

Collection of tax on account of purchase of power

⁵⁰⁷52N.  (1)Notwithstanding anything contained in this Ordinance, Bangladesh Power Development Board or any other person engaged in power distribution, at the time of payment to any person on account of purchase of power, shall collect, deduct or pay tax on the said payment at the rate of six percent.

(2) Where a person is exempted from tax or is subject to a reduced tax rate in an income year, the Board may, on an application made in this behalf, give a certificate in writing that the payment for that income year shall be made without any deduction or with deduction at a proportionately reduced rate, as the case may be.

Collection of tax from a foreign technician serving in a diamond cutting industry

⁵⁰⁸52O. The person responsible for making any payment-which constitutes income chargeable under the head “Salaries” received by or due to any person who is neither a citizen of Bangladesh nor was resident in Bangladesh in any of the four years immediately preceding the year in which he arrived in Bangladesh, as remuneration for services rendered by him for a period not exceeding three years from the date of his arrival in Bangladesh, during such period, as a technician employed in diamond cutting industries under a contract of service, shall deduct tax at the rate of five percent of such salaries at the time of making payment or giving credit which ever is earlier: Provided that the provisions of this clause shall not be applicable to foreign technicians appointed after June 30 2010.

Deduction of tax for services from convention hall, conference centre, etc

⁵⁰⁹52P.  (1) Where any payment is to be made by a specified person to any other person on account of renting or using space of convention hall, conference centre, room or, as the case may be, hall, hotel, community centre or any restaurant, shall deduct tax at the rate of five per cent from the whole amount of the payment for the services thereof at the time of making such payment to the payee:

Provided that no deduction shall be made when such amount is paid directly to the Government.

           (2) In this section¾

                      (b) “payment” shall have the same meaning as in clause (d) of sub-section (2) of section 52.

Section 52Q. Deduction of Tax from any income remitted from abroad in connection with any service, revenue sharing, etc

⁵¹⁰Any person, responsible for paying or crediting to the account of a person any sum remitted from abroad by way of a fee, service charges, commission or remuneration, called by whatever name, or by way of revenue sharing of any name and nature, for—

shall deduct tax at the rate of ten percent at the time of making payment of the sum or crediting the sum to the account of the payee:

⁵¹¹Provided that the rate of deduction under this section shall be 7.5% (seven point five percent) where the remittance has been received as consideration for contracts on manufacturing, process or conversion, civil work, construction, engineering or works of similar nature:

Provided further that no deduction under this section shall be made against the remittance from abroad which is-

Deduction of tax from receipts in respect of international phone call.

⁵¹³52R. (1)The bank, through which any sum on account of International Gateway (IGW) Services in respect of international phone call is received, shall deduct tax at the rate of ⁵¹⁴one point five percent (1.5%) of the total amount representing the said receipt at the time of crediting it to the account of the International Gateway (IGW) Services operator.

(2) The International Gateway (IGW) Services operator, by which any sum related to international phone call is paid or credited to the account of Interconnection Exchange (ICX), Access Network Services (ANS) ⁵¹⁵,Bangladesh Telecommunication Regulatory Commission (BTRC) or any other person under an agreement with the Bangladesh Telecommunication Regulatory Commission (BTRC), shall deduct tax at the rate of ⁵¹⁶seven point five percent (7.5%) on the whole amount so paid or credited at the time of such payment or credit under the said agreement.

⁵¹⁷(2A) Where any amount is paid or credited in respect of outgoing international calls, the provider of Interconnection Exchange (ICX) services or Access Network Services (ANS) shall deduct tax at the rate of seven point five percent (7.5%) on the whole amount so paid or credited at the time of such payment or credit

(3) Notwithstanding anything contained in ⁵¹⁸sub-sections (1), (2) or (2A), where the Board gives a certificate in writing on an application made by a person that income of the person is exempted from tax or will be liable to tax at a rate of tax less than the rate specified in this section, the person responsible for such payment shall make the payment-

519[Omitted].

⁵²⁰***

Deduction of tax from any payment in excess of premium paid on life insurance policy.

⁵²¹52T. Any person responsible for paying to a resident, any sum in excess of premium paid for any life insurance policy maintained with any life insurance company, shall deduct, at the time of payment of such excess amount to the policy holder, income tax at the rate of five per cent on such sum: Provided that no deduction of tax shall be made in case of death of such policy holder.

Deduction from payment on account of local letter of credit, etc.

⁵²²52U. (1) The bank or any other financial institution extending any credit facility under a local letter of credit or any other financing agreement, not being a financing arrangement under sub-section (2), for purchasing any goods in Bangladesh by a person (hereinafter referred to as “Person A”) from any person (hereinafter referred to as “Person B”) for the purpose of trading, or of reselling after process or conversion shall deduct, at the time of paying or crediting to Person B, tax at the rate of three percent (3%) of the amount so paid or credited in relation to the purchase by Person A.

(2) The bank or any other financial institution extending any credit facility to a distributor under a financing arrangement in which a person (hereinafter referred to as “Person C”) receives payments from such bank or the financial institution against the invoice or sale of goods to its distributor (hereinafter referred to as “Person D”) shall deduct, at the time of paying or crediting payment to Person C, tax at the rate of one percent (1%) of the amount so paid or credited in relation to the goods invoiced to Person D.

(3) ⁵²³The tax shall be deducted at the rate of two percent (2%) in the cases of local letter of credit or any other financing agreement opened or made for the purchase or procurement of rice, wheat, potato, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chillies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, date, cassia leaf, computer or computer accessories, jute, cotton, yarn and all kinds of fruits.

⁵²⁴***

Explanation.- For the purpose of this section, "distributor" means a person who performs the function of supply of finished goods produced by another person to the end customer directly or through any other intermediary.

Deduction from payment by cellular mobile phone operator.

The Principal Officer of a cellular mobile phone operator company responsible for making any payment, on account of any revenue sharing or any license fees or any other fees or charges, called by whatever name, to the regulatory authority, shall deduct tax at the rate of ten percent of such payment at the time of credit to the payee or at the time of payment thereof, whichever is earlier.]

Section 53. Collection of tax on account of import of goods

⁵²⁵The Commissioner of Customs or the officer authorized in this behalf shall collect advance income tax at such rate, not exceeding 20% (twenty percent) on the value of imported goods, as may be prescribed.

Deduction at source from income from house property

⁵²⁶⁵²⁷53A.  (1) Where any specified person is a tenant in respect of a house property or hotel accommodation, the tenant shall deduct tax from the rent of such house property or hotel accommodation at the rate of five per cent at the time of payment of such rent.

Explanation.- For the purpose of this section, "rent" means any payment, by whatever name called, under any lease, tenancy or any other agreement or arrangement for the use of any house property or hotel accommodation including any furniture, fittings and the land appurtenant thereto.

(2) Where, after the assessment made for the relevant year, it is found that no tax was payable by the owner of the house property or the amount of tax deducted is in excess of the amount payable, the amount deducted shall be refunded,-

   (3) Where the Deputy Commissioner of Taxes, on an application made in this behalf, gives a    certificate in the prescribed form to an owner of house property that, to the best of his belief,     the owner is not likely to have any assessable income during the year or the income is otherwise     exempted from payment of income tax under any provision of this Ordinance, payment referred     to in sub-section (1) shall be made without any deduction until the certificate is cancelled.

    (4) In this section-

                       (b) “payment” shall have the same meaning as in clause (d) of sub-section (2) of section 52.

Collection of tax from shipping business of a resident

53AA. Commissioner of Customs or any other authority, duly authorised in this behalf, shall not grant port clearance to a ship owned or chartered by a resident assessee unless ⁵²⁸a certificate is received in prescribed manner from Deputy Commissioner of Taxes concerned and tax at the rate of ⁵²⁹five percent of total freight received or receivable in or out of Bangladesh has been paid for carriage of passengers, livestock, mail or goods, shipped at any port of Bangladesh. ⁵³⁰: Provided that tax shall be collected at the rate of three per cent of total freight received or receivable from services rendered between two or more foreign countries.

Section 53B. Collection of tax from recruiting agents

⁵³¹The Director General, Bureau of Manpower, Employment and Training shall not-

Deduction of tax from export proceeds of goods

⁵³²53BB. Deduction of tax from export proceeds of goods.- (1)The Bank, through which export proceeds of goods of an exporter is received, shall deduct tax at the rate of 1% (one percent) of total export proceeds at the time of crediting the proceeds to the account of the exporter.

(2) Where the Board, on an application made in this behalf, gives a certificate in writing that the income of the exporter is partly or fully exempted from tax under any provision of the Ordinance, the Bank shall make credit to the account of an assesse without any deduction of tax or deduction of tax at a rate lesser than the rate specified in this section for the period mentioned in that certificate.

Collection of tax from Member of Stock Exchanges

53BBB. ⁵³³The Chief Executive Officer of a stock exchange shall collect tax at the rate of “zero point zero five percent (0.05%)”on the value of shares and mutual funds transacted by a member of a stock exchange and at the rate of ten percent (10%) on the commission received or receivable by a member of a stock exchange for the transaction of securities other than shares and mutual funds at the time of making payment for such transactions.

[Omitted]

⁵³⁴***

Section 53C. Collection of tax on sale price of goods or property sold by public auction

Any person making sale, by ⁵³⁵public auction through sealed tender or otherwise, of any goods or property belonging to the Government or any authority, corporation or body, including its units, the activities or the principal activities of which are authorised by any Act, Ordinance, order or instrument having the force of law in Bangladesh or any company ⁵³⁶ as defined in ⁵³⁷⁵³⁸ কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮নং আইন) or any banking company, or any insurance company or any co-operative bank established by or under any law for the time being in force shall collect, before delivering the possession of the goods or the property ⁵³⁹or allowing to exercise the rights, as advance tax on the income from the sale price of such goods or property from the auction purchaser ⁵⁴⁰at the rate of 10% (ten percent) of the sale price:.

⁵⁴¹Provided that the rate of deduction shall be 1% (one percent) in case of sale of tea by public auction.

Explanation.-For the purposes of this section, sale of any goods or property includes the awarding of any lease to any person, including a lease of the right to collect octroi duties, tolls, fees or other levies, by whatever name called, but does not include sale of a plot of land.

[Omitted]

⁵⁴²***

Deduction or collection of tax at source from courier business of a non-resident

⁵⁴³ 53CCC. Any person being a company registered under the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন) working as local agent of a non-resident courier company shall deduct or collect tax in advance at the rate of fifteen percent (15%) on the amount of service charge accrued from the shipment of goods, documents, parcels or any other things outside Bangladesh

Deduction from payment to actors, actresses, producers, etc.

⁵⁴⁴53D. (1) A person responsible for making any part or full payment for purchasing a film, drama or television or radio programme shall deduct tax at the rate of ten percent of the amount paid or payable at the time of making payment or credit of such payment to the account of the payee. (2) A person responsible for making any part or full payment to another person for performing in a film, drama, advertisement or any television or radio programme shall deduct tax at the rate of ten percent of the amount paid or payable at the time of making payment or credit of such payment to the account of the payee⁵⁴⁵: Provided that no tax shall be deducted under this section if the total payment does not exceed ten thousand taka.

[Omitted]

⁵⁴⁶* * *

Deduction of tax at source from export cash subsidy.

⁵⁴⁷53DDD. Any person responsible for paying any amount on account of export cash subsidy to an exporter for promotion of export shall, at the time of payment or credit of such amount, deduct or collect tax in advance at the rate of ⁵⁴⁸⁵⁴⁹ten per cent on the amount so payable.

Deduction or collection at source from commission, discount, fees, etc.

⁵⁵⁰53E. (1) Any company making a payment or allowing an amount to a distributor, called by whatever name, or to any other person by way of commission, discount, fees, incentive or performance bonus or any other performance related incentive or any other payment or benefit of the similar nature for distribution or marketing of goods, shall deduct or collect tax at the time of payment or allowing the amount at the rate of ten percent (10%) of the amount of payment or the amount allowed or the value of benefits allowed, as the case may be.

(2) Any company making a payment in relation to the promotion of the company or its goods to any person engaged in the distribution or marketing of the goods of the company shall, at the time of payment, deduct tax at the rate of one point five percent (1.5%) of the payment.

(3) Any company, other than an oil marketing company, which sells goods to-

at a price lower than the retail price fixed by such company, shall collect tax from such distributor or such any other person at the rate of five percent (5%) on the amount equal to B x C, where-

B = the selling price of the company to the distributor or the other person;

C = 5%:

Provided that a cigarette manufacturer company shall collect tax at the time of sale of its goods to such distributor or to such other person at the rate of three percent (3%) of the difference between the sale price to the distributor or the other person and the retail price fixed by such company.

(4) In this section-

Deduction of tax from commission or remuneration paid to agent of foreign buyer

⁵⁵³53EE. Where, in accordance with the terms of the letter of credit or under any other instruction, a bank, through which an exporter receives payment for export of goods, pays any amount out of the export proceeds to the credit of any person being an agent or a representative of the foreign buyer, as commission, charges or remuneration by whatever name it may be called, the bank shall deduct or collect tax in advance at the rate of ⁵⁵⁴ten per cent (10%) on the commission, charges or remuneration so paid at the time of such payment.

Deduction at source from interest on saving deposits and fixed deposits, etc

⁵⁵⁵53F.  (1)Notwithstanding anything contained in this Ordinance or any other law for the time being in force in respect of exemption of tax, any person responsible for paying to a resident any sum by way of interest or share of profit on any saving deposits or fixed deposits or any term deposit maintained with any bank including a co-operative bank or any bank run on Islamic principles or non-banking financial institution or any leasing company or housing finance company, as the case may be, shall deduct, at the time of credit of such interest or share of profit to the account of the payee or at the time of payment thereof, whichever is earlier, income tax on such sum at the rate provided in the following table-

Table

| Sl. No. | Types of the payee | Rate | | --- | --- | --- | | 1. | Where the payee is a company | 20% | | 2. | Where the payee is a person other than a company | 10% | | 3. | Where the payee is a public university, or an educational institution whose teachers are enlisted for Monthly Pay Order (MPO), following the curriculum approved by the Government and whose governing body is also formed as per Government rules or regulations, or any professional institute established under any law and run by professional body of Chartered Accountants, Cost and Management Accountants or Chartered Secretaries | 10% | | 4. | Where the payee is recognized provident fund, approved gratuity fund, approved superannuation fund or pension fund | 5% |

(2) Where the payee being a person required to submit return under section 75 fails to furnish proof of submission of return, the rate of deduction shall be 50% higher.

(3) For the purpose of sub-section (2), the proof of submission of return of parent shall be considered as the proof of submission of return of a minor.

(4)  Nothing contained in this section shall apply-

Collection of tax from persons engaged in real estate or land development business

⁵⁵⁶53FF. Any person responsible for registering any document for transfer of any land or building or apartment, under the provision of Registration Act 1908 (XVI of 1908), shall not register the document unless tax is paid at the following rate by the transferrer who is engaged in real estate or land development business,-

⁵⁵⁷(a) in case of building or apartment⁵⁵⁸,constructed for residential purposes, situated- ⁵⁵⁹(i) at Gulshan Model Town, Banani, Baridhara, Motijeel Commercial Area and Dilkusha Commercial Area of Dhaka, taka ⁵⁶⁰one thousand and six hundred per square metre;

⁵⁶²(iii) in areas other than the areas mentioned in sub-clauses (i) and (ii)- A. if the area is within Dhaka South City Corporation, Dhaka North City Corporation and Chittagong City Corporation, taka one thousand per square metre; B. if the area is within any other city corporation, taka seven hundred per square metre; C. any other area, taka three hundred per square metre: Provided that the rate of source tax under clause (a) in respect of a residential apartment shall be twenty percent (20%) lower if the size of the apartment, including common space, is not more than seventy square metre, and forty percent (40%) lower if the size of the apartment, including common space, is not more than sixty square metre. ⁵⁶³(aa) in case of building or apartment or any space thereof, constructed not for the residential purposes, situated-

(i) in areas mentioned under sub-clause (i) of clause (a), taka ⁵⁶⁴six thousand and five hundred per square metre;

(ii) in areas mentioned under sub-clause (ii) of clause (a), taka ⁵⁶⁵five thousand per square metre;

⁵⁶⁶(iii) in areas other than the areas mentioned in sub-clauses (i) and (ii)- A. if the area is within Dhaka South City Corporation, Dhaka North City Corporation and Chittagong City Corporation, taka three thousand and five hundred per square metre; B. if the area is within any other city corporation, taka two thousand and five hundred per square metre; C. any other area, taka one thousand and two hundred per square metre. ⁵⁶⁷(b) in case of land to which the document relates and on which stamp duty is chargeable under the Stamp Act, 1899 (Act No. II of 1899) at the rate of-

(i) five percent for Dhaka, Gazipur, Narayanganj, Munshiganj,Manikganj, Narsingdi and Chittagong districts;

(ii) three percent for any other district.

Section 53G. Deduction at source from insurance commission

Any person responsible for paying to a resident any sum by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income tax on such sum at the rate of ⁵⁶⁸five percent ⁵⁶⁹.

***

Deduction at source from fees, etc. of Surveyors of general insurance company

53GG. A person responsible for paying to a resident any sum by way of remuneration or fees for conducting any survey regarding settlement of claim of an insurance shall, at the time of payment, deduct income-tax on such sum at the rate ⁵⁷⁰⁵⁷¹ten per cent

[Omitted]

⁵⁷²***

Collection of tax on transfer, etc. of property

⁵⁷³53H. (1) Any registering officer responsible for registering any document of a person under the provisions of clause (b), (c) or (e) of sub-section (1) of section 17 of the Registration Act, 1908 (XVI of 1908) shall not register any document unless tax is paid at such rate as may be prescribed in relation to the property to which the document relates and on which stamp-duty is chargeable under Stamp Act, 1899 (II of 1899) by the person whose right, title or interest is sought to be transferred, assigned, limited or extinguished thereby, at the time of registration of such document:

Provided that the rate of tax shall not exceed taka ten lakh and eighty thousand per katha (1.65 decimal) for land, taka six hundred per square meter for any structure, building, flat, apartment or floor space on the land, if any, or four per cent of the deed value, whichever is higher.

(2) Nothing in this section shall apply to a document relating to:

⁵⁷⁵***

Collection of tax from lease of property.

⁵⁷⁶53HH.  Any registering officer responsible for registering, under the Registration Act, 1908 (XVI of 1908), any document in relation to any lease of immovable property for not less than ten years shall not register such document unless tax is paid at a rate of four per cent by the lessor on the lease amount of such property.

Deduction at source from interest on deposit of Post Office Savings Bank Account.

⁵⁷⁷53I.Any person responsible for paying any amount on account of interest of Post Office Savings Bank Account shall deduct, at the time of credit to the account of the payee or at the time of payment thereof, whichever is earlier, tax on such amount at the rate of ten percent:

⁵⁷⁸ * * *

Provided ⁵⁷⁹*** that nothing contained in this section shall apply to such payee or class of payees as the Board may, by a general or special order, specify in this behalf.

Deduction at source from rental value of 580[water body or] vacant land or plant or machinery.

⁵⁸¹53J.  (1) Where any payment is to be made by a specified person to a resident on account of renting ⁵⁸²water body not being government property or using any vacant land or plant or machinery, shall deduct tax at the rate of five per cent from the whole amount of the payment at the time of making such payment to the payee.

 (2) In this section-

                       (b)  “payment” shall have the same meaning as in clause (d) of sub-section (2) of section 52.

Deduction of tax from advertising bill of newspaper or magazine or private television channel 583[or private radio station, 584[etc]].

⁵⁸⁵53K.The Government or any authority, corporation or body, including its units, the activities or the principal activities of which are authorised by any Act, Ordinance, Order or any other Instrument having the force of law in Bangladesh or any company as defined in clause (20) of section (2) or any banking company or any insurance company or any co-operative bank established by or under any law for the time being in force or any non-government organization registered with NGO Affairs Bureau or any university or medical college or dental college or engineering college responsible for making any payment to newspaper or magazine or private television channel ⁵⁸⁶or ⁵⁸⁷private radio station or any web site ⁵⁸⁸or any person on account of advertisement or of purchasing airtime of private television channel or radio station or such web site, shall deduct tax in advance at the time of such payment at the rate of ⁵⁸⁹four per cent (4%).

[Omited]

⁵⁹⁰⁵⁹¹***

Section 53M. Collection of tax from transfer of securities or mutual fund units by sponsor shareholders of a company etc.

The Securities and Exchange Commission or Stock Exchange, as the case may be, at the time of transfer or declaration of transfer or according consent to transfer of securities or mutual fund units of a sponsor shareholder or director or placement holder of a company or sponsor or placement holder of a mutual fund listed with a Stock Exchange shall collect tax at the rate of five per cent on the difference between transfer value and cost of acquisition of the securities or mutual fund units.

Explanation.- For the purpose of this section-

(1) 'transfer’ includes transfer under a gift, bequest, will or an irrevocable trust;

(2) 'transfer value’ of a security or a mutual fund unit shall be deemed to be the closing price of securities or mutual fund units prevailing on the day of consent accorded by the Securities and Exchange Commission or the Stock Exchange, as the case may be, or where such securities or mutual fund units were not traded on the day such consent was accorded, the closing price of the day when such securities or mutual fund units were last traded.]

Collection of tax from transfer of share of shareholder of Stock Exchanges.

⁵⁹² 53N. (1) The Principal Officer of a stock exchange shall deduct tax at the rate of fifteen per cent on any profits and gains arising from the transfer of share of a shareholder of stock exchange established under ‘‘এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩, (২০১৩ সনের ১৫ নং আইন)’’ [Exchanges Demutualisation Act, 2013 (Act No. 15 of 2013) at the time of transfer or declaration of transfer or according consent to transfer of such share, whichever is earlier. (2) For the purpose of the computation of profits and gains of share under sub-section (1), the cost of acquisition of such share shall be the cost of acquisition incurred before ‘‘এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩, (২০১৩ সনের ১৫ নং আইন)’’ [Exchanges Demutualisation Act, 2013 (Act No. 15 of 2013)] came into force.

[Omitted]

⁵⁹³***

Deduction of tax from any sum paid by real estate developer to land owner

⁵⁹⁴53P. Deduction of tax from any sum paid by real estate developer to land owner.-Where any person engaged in real estate or land development business pays any sum to the land owner on account of signing money, subsistence money, house rent or in any other form called by whatever name for the purpose of development of the land of such owner in accordance with any power of attorney or any agreement or any written contract, such person shall deduct tax at the rate of fifteen per cent (15%) on the sum so paid at the time of such payment.

Collection of Tax from motorvehicles plying commercially

⁵⁹⁵53Q. (1)The personresponsible for the registration and fitness renewal of motor vehicles shall not register or allow fitness renewal unless, a challan of advance tax at the rate given in the following table is attached with the application:   

Table

| Serial No. | Description of the vehicle | Rate (in taka) | | --- | --- | --- | | 1. | Bus having seats exceeding 52 | 16,000/- | | 2. | Bus having seats not exceeding 52 | 11,500/- | | 3. | Air conditioned Bus | 37,500/- | | 4. | Double decker Bus | 16,000/- | | 5. | Air conditioned (AC) Minibus/Coaster | 16,000/- | | 6. | Non-AC Minibus/Coaster | 6,500/- | | 7. | Prime mover | 24,000/- | | 8. | Truck, Lorry or Tank Lorry having payload capacity exceeding five tons | 16,000/- | | 9. | Truck, Lorry or Tank Lorry having payload capacity exceeding one and half tons but not exceeding five tons | 9,500/- | | 10. | Truck, Lorry or Tank Lorry having payload capacity not exceeding one and half tons | 4,000/- | | 11. | Pickup van, human hauler, maxi or auto rickshaw | 4,000/- | | 12. | Air conditioned Taxicab | 11,500/- | | 13. | Non-AC Taxicab | 4,000/- . |

(2) In case of registration or fitness renewal of a vehicle for more than one year, advance tax under sub-section (1) shall be collected on or before 30th June in every subsequent year or years following the year in which registration or fitness renewal of the vehicle has been done.

(3) Where any person fails to pay advance tax in accordance with sub-section (2), the amount of advance tax payable shall be calculated in accordance with A+ B formula, where-

A = the amount of advance tax not paid in the previous year or years; and

B = the amount of advance tax payable under sub-section (2) for the year in which an asseesee is making the payment.

(4) Advance tax under sub-section (2) shall not be collected if the vehicle is owned by-

Collection of tax from inland ships

⁵⁹⁶53R.  (1)The person responsible for granting a certificate of survey or renewing a certificate of survey under the Inland Shipping Ordinance, 1976 (Ordinance No. LXXII of 1976) shall not grant or renew such certificate of survey unless a challan of advance tax computed at the rate given in the following table is attached with the application:

Table

| Serial No. | Description of Vessel | Rate | | --- | --- | --- | | (1) | (2) | (3) | | 1. | Inland ships engaged in carrying passengers in inland water | Taka 125 per passenger (carrying capacity of an inland ship shall be the capacity of daytime plying in smooth waters) | | 2. | Cargo, Container (multipurpose) and Coaster engaged in carrying goods in inland water | Taka 170 per gross tonnage | | 3. | Dump barge engaged in carrying goods in inland water | Taka 125 per gross tonnage. |

(2) In case of granting a certificate of survey or renewing a certificate of survey for more than one year, advance tax under sub-section (1) shall be collected on or before 30th June in every subsequent year or years following the year in which grant of or renewal of such certificate has been done.

(3) Where any person fails to pay advance tax in accordance with sub-section (2), the amount of advance tax payable shall be calculated in accordance with A+ B formula, where-

A = the amount of advance tax not paid in the previous year or years; and

B = the amount of advance tax payable under sub-section (2) for the year in which an asseesee is making the payment.

(4) For the purpose of this section ‘inland ship’ and ‘inland water’ shall have the same meaning as defined in the Inland Shipping Ordinance, 1976 (Ordinance No. LXXII of 1976).

Deduction of tax from dividends

⁵⁹⁷54. Deduction of tax from dividends.- The principal officer of a company registered in Bangladesh, or of any other company, shall, at the time of paying any dividend to a shareholder, deduct tax on the amount of such dividend, in the case of a resident or a non-resident Bangladeshi,-

Provided that the provision of this section shall not be applicable to any distribution of taxed dividend to a company ⁵⁹⁹*** if such taxed dividend enjoys tax exemption under the provisions of the paragraph 60 of Part A of the Sixth Schedule.

Section 55. Deduction from income from lottery, etc.

The person responsible for paying any amount on account of winnings referred to in section 19(13) shall, at the time of making such payment, deduct tax ⁶⁰⁰payable on the amount at the rate of twenty per cent.

Explanation.-For the purpose of this section, the expression “any amount” means the value of any goods or assets where the payment on account of such winnings is made not in the form of cash but in the from of goods or other assets.

Section 56. Deduction from income of non-residents

⁶⁰¹(1) Subject to the provisions of sub-section (2), the specified person or any other person responsible for making payment to a non-resident of any amount which constitutes the income of such non-resident chargeable to tax under this Ordinance shall, unless such person is himself liable to pay tax thereon as agent, at the time of making such payment, deduct tax on the amount so payable at the rate, specified below:

| SL. No | Description of services or payments | Rate of deduction of tax | | --- | --- | --- | | 1 | Advisory or consultancy service | 20% | | 2 | Pre-shipment inspection service | 20% | | 3 | Professional service, technical services, technical know-how or technical assistance | 20% | | 4 | Architecture, interior design or landscape design, fashion design or process design | 20% | | 5 | Certification rating etc. | 20% | | 6 | Charge or rent for satellite, airtime or frequency, rent for channel broadcast | 20% | | 7 | Legal service | 20% | | 8 | Management service including event management | 20% 10% | | 9 | Commission | 20% | | 10 | Royalty, license fee or payments related to intangibles | 20% | | 11 | Interest | 20% | | 12 | Advertisement broadcasting | 20% | | 13 | Advertisement making ⁶⁰²or Digital marketing | 15% | | 14 | Air transport or water transport ⁶⁰³ not being the carrying services mentioned in sections 102 or 103A | 7.5% | | 15 | Contractor or sub-contractor of manufacturing, process or conversion, civil work, construction, engineering or works of similar nature. | 7.5% | | 16 | Supplier | 7.5% | | 17 | Capital gain | 15% | | 18 | Insurance premium | 10% | | 19 | Rental of machinery, equipment etc. | 15% | | 20 | ⁶⁰⁴Dividend— (a) company, fund and trust (b) any other person not being a company, fund and trust | 20% 20% | | 21 | Artist, singer or player | 30% | | 22 | Salary or remuneration | 30% | | 23 | 23 Exploration or drilling in petroleum operations | 5.25% | | ⁶⁰⁵24 | Survey for coal, oil or gas exploration | 5.25% | | 24A | Fees, etc. of surveyors of general insurance company | 20% | | 25 | Any service for making connectivity between oil or gas field and its export point | 5.25% | | 26 | Any payments against any services not mentioned above | 20% | | ⁶⁰⁶27 | Bandwith payment | 10% | | 28 | Any other payments | 20% |

⁶⁰⁷Provided that when any capital gain arises from the transfer of any share of a company, the person or the authority, as the case may be, responsible for effecting the transfer of shares shall not give any effect in respect of such transfer if tax on such capital gain has not been paid.

⁶⁰⁸(2) Where, in respect of any payment under this section, the Board, on an application made in this behalf, is satisfied that due to tax treaty or any other reason the non-resident is not be liable to pay any tax in Bangladesh, or is liable to pay tax at a reduced rate in Bangladesh, the Board may issue a certificate ⁶⁰⁹within thirty days from the date of receipt of such application accompanied by all the documents as required by the Board to the effect that the payment referred to in sub-section (1) shall be made without any deduction or, in applicable cases, with a deduction at the reduced rate as mentioned in the certificate.

(2A) Tax deducted under this section shall be deemed to be the minimum tax liability of the payee in respect of the income for which the deduction is made, and shall not be subject of refund or set off or an adjustment against a demand.

⁶¹⁰(3) For the purpose of this section—

Consequences of failure to deduct, collect, etc

⁶¹¹57. (1)Where a person-

such person shall be deemed to be an asseesee in default, and without prejudice to any other consequences to which such person may be liable, shall be liable to pay–

(2) In addition to the amount as mentioned in sub-section (1), the person shall also be liable to pay an additional amount at the rate of two percent (2%) per month on the amount other than the penalty as mentioned in clauses (i), (ii) and (iii) of sub-section (1), as the case or cases may be, calculated for the period-

(3) The period for which the additional amount under subsection (2) is calculated shall not exceed twenty-four months.

(4) The Deputy Commissioner of Taxes shall take necessary action for the realisation of the amount and penalty as mentioned in sub-section (1) and the additional amount as mentioned in sub-section (2) from the person referred to in sub-section (1) after giving the person a reasonable opportunity of being heard.

(5) Where the person responsible for deducting or collecting tax under this chapter is the Government, or any authority, corporation or body of the Government- including its units or a project or programme or activity where government has any financial or operational involvement-

shall be jointly and severally liable to pay taxes, penalty or additional amount under this section.

(6) Where the person responsible for deducting or collecting tax under this chapter is a person other than the Government, or any authority, corporation or body of the Government- including its units or a project or programme or activity where government has any financial or operational involvement-

shall be jointly and severally liable to pay taxes, penalty or additional amount under this section.

(7) No realisation of the amount mentioned in sub-section (1) shall be made if it is established that such amount has meanwhile been paid by the person from whom the deduction or collection was due.

Consequences of the issuance of certificate of tax deduction or collection without actual deduction, collection or payment

⁶¹²57A. (1) Where a person issues a certificate of deduction or collection of tax at source without actual deduction or collection or payment to the credit of the Government, without prejudice to any other consequences to which he may be liable, the person shall be personally liable to pay the amount not being deducted, collected or paid to the credit of the Government. (2) The Deputy Commissioner of Taxes shall take necessary action for the collection of amount mentioned in sub-section (1) from the person so personally liable after giving the person a reasonable opportunity of being heard.

Certificate of deduction, etc. of tax

⁶¹³58. (1) Every person who has deducted or collected any tax under this Chapter shall furnish, to the person from whom such deduction or collection has been made, a certificate of tax deduction or collection specifying therein-

(2) The Board may, by notification in the official Gazette, -

⁶¹⁵ (3) Every person who has deducted or collected any tax under this Chapter shall furnish a statement to such income tax authority and in such manner as may be prescribed.

Section 59. Payment to Government of tax deducted

All sums deducted or collected as tax under the provisions of this Chapter shall be paid within the prescribed time by the person making the deduction or collection to the credit of the Government or as the Board may direct.

Section 60. Unauthorised deduction prohibited

Save as provided in this Ordinance, no person shall charge, withhold, deduct or collect any sum, directly or indirectly, as tax and, where any sum is so charged, withheld, deducted or collected, it shall be paid in the manner provided in section 59.

Section 61. Power to levy tax without prejudice to other mode of recovery

The power to levy tax by deduction or collection under this Chapter shall be without prejudice to any other mode of recovery.

Section 62. Credit of tax deducted or collected at source

Any deduction or collection of tax made and paid to the account of the Government in accordance with the provisions of this Chapter shall be treated as a payment of tax on behalf of the person from whose income the deduction or collection was made, or of the owner of the security or of the shareholder, as the case may be, and credit shall be given to him therefore on the production of the certificate furnished ⁶¹⁶, along with the proof of payment of such tax to the account of the Government, under section 58 in the assessment, if any, made for the following year under this Ordinance:

Provided that, if such person or such owner obtains, in accordance with the provisions of this Ordinance, a refund of any portion of the tax so deducted, no credit shall be given for the amount of such refund:

Provided further that where such person or owner is a person whose income is included under the provisions of sections 43(4) or (5) or section 104 or 105 or 106 in the total income of another person, such other person shall be deemed to be the person or owner on whose behalf payment has been made and to whom credit shall be given in the assessment for the following year.

⁶¹⁷* * *

[Omitted]

⁶¹⁸***

Section 63. Payment of tax where no deduction is made

The tax under this Ordinance shall be payable by the assessee direct-

Section 64. Advance payment of tax

(1) Except as provided in sub-section (2), tax shall be payable by an assessee during each financial year by way of advance payment of tax, hereinafter referred to as “advance tax”, in accordance with the provisions hereafter made in this Chapter if the total income of the assessee for the latest income year in respect of which he has been assessed by way of regular assessment or has been provisionally assessed under this Ordinance or the Income-tax Act, 1922 (XI of 1922), exceeds ⁶¹⁹⁶²⁰six lakh taka.

(2) Nothing in sub-section (1) shall apply to any income classifiable under the heads “Agricultural income” and “Capital gains” ⁶²¹excluding gain from transfer of share of a company listed with a stock exchange.

Section 65. Computation of advance tax

(1) The ⁶²²The minimum amount of advance tax payable by an assessee in a financial year shall be the amount equal to the tax payable on his total income of the latest income year as assessed on regular basis or provisionally, as the case may be, as reduced by the amount of tax required to be deducted or collected at source in accordance with the preceding provisions of this Chapter.

(2) The tax payable under sub-section (1) shall be calculated at the rates in force in respect of the financial year referred to therein.

Section 66. Instalments of advance tax

Advance tax shall be payable in four equal instalments on the fifteenth day of September, December, March and June of the financial year for which the tax is payable ⁶²³:

Provided that, if before the fifteenth day of May of the year, an assessment of the assessee is completed in respect of an income year, later than that on the basis of which the tax was computed under section 65, the assessee shall pay in one instalment on the specified date or in equal instalments on the specified dates, if more than one falling after the date of the said assessment, the tax computed on the revised basis as reduced by the amount, if any, paid in accordance with the original computation.

Section 67. Estimate of advance tax

(1) Where, an assessee who is required to pay advance tax under section 64 estimates, at any time before the last instalment is due, that the tax payable by him for the relevant assessment year is likely to be less than the amount of tax as computed under section 65, he may, after giving to the Deputy Commissioner of Taxes an estimate of the tax payable by him, pay such estimated amount of advance tax, as reduced by the amount, if any, already paid, in equal instalments on the due dates of payment under section 66.

(2) The assessee may furnish a revised estimate of such amount at any time before any of such instalments become payable and may thereby adjust any excess or deficiency, by reference to the amount already paid by him under this section, in any subsequent instalment or instalments payable in such financial year.

Section 68. Advance payment of tax by new assessees

Any person who has not previously been assessed by way of regular assessment under this Ordinance or the Income-tax Act, 1922 (XI of 1922), shall before the fifteenth day of June in each financial year, if his total income, subject to section 64(2), of the period which would be the income year for the immediately following assessment year is likely to exceed ⁶²⁴⁶²⁵six lakh taka, send to the Deputy Commissioner of Taxes an estimate of his total income and advance tax payable by him calculated in the manner laid down in section 65 and shall pay such amount on such dates specified in section 66 as have not expired by instalments which may be revised according to section 67(2).

Advance tax on certain income

⁶²⁶68A. (1) A manufacturer of cigarette shall pay advance tax at the rate of three percent (3%) on net sale price in every month. (2) The advance tax paid under sub-section (1) shall be adjustable against the quarterly installments of advance tax payable under section 66. Explanation.-In this section, “net sale” shall be A- B, where, A is the gross sale and B is the value added tax and the supplementary duty, if any, on such gross sale.

Section 68B. Advance tax for the owners of private motor car

(1) Every person owning a private motor car shall be deemed to have an income by which the motor car is maintained and shall pay advance income tax to be collected at the rate and in the manner as mentioned in sub-section (2).

(2) Subject to the provision of sub-section (3), the authority responsible for the registration and fitness renewal of motor car shall collect, on or before the date of registration or fitness renewal of the motor car, advance tax at the following rate-

⁶²⁷Table

| Serial No. | Type and engine capacity of motor car | Amount of tax (in taka) | | --- | --- | --- | | 1 | A car or a jeep, not exceeding 1500cc or 75kw | 25,000/- | | 2 | A car or a jeep, exceeding 1500cc or 75kw but not exceeding 2000cc or 100 kw | 50,000/- | | 3 | A car or a jeep, exceeding 2000cc or 100 kw but not exceeding 2500cc or 125 kw | 75,000/- | | 4 | A car or a jeep, exceeding 2500cc or 125 kw but not exceeding 3000cc or 150 kw | 1,25,000/- | | 5 | A car or a jeep, exceeding 3000cc or 150 kw but not exceeding 3500cc or 175 kw | 1,50,000/- | | 6 | A car or a jeep, exceeding 3500cc or 175 kw | 2,00,000/- | | 7 | A microbus | 30,000/- |

Provided that the rate of tax shall be fifty percent (50%) higher for each additional motor car if the owner has two or more motor cars in his name or in joint names with other person or persons.

⁶²⁸(2A) In case of registration or fitness renewal of motor car for more than one year, advance tax under sub-section (2) shall be collected on or before 30th June in every subsequent year or years following the year in which registration or fitness renewal of motor car has been done.

(2B) Where any person fails to pay advance tax in accordance with sub-section (2A), the amount of advance tax payable shall be calculated following A+B formula, where-

A = the amount of advance tax not paid in the previous year or years; and

B = the amount of advance tax payable under sub-section (2) for the year in which an assessee is making the payment.

(3) Advance tax under sub-section (2) shall not be collected if the motor car is owned by-

(4) Where a person pays advance tax under sub-section (2), and the income from regular sources of the person results in a tax liability less than the said advance tax, the income of such person shall be deemed to be the amount that results a tax liability equal to the said advance tax.

(5) The advance tax paid under sub-section (2) shall not be refundable.

(6) In this section-

⁶²⁹a) “motor car” includes a jeep or a microbus but does not include a motor vehicle mentioned in section 53Q and a motor cycle.

Section 69. Failure to pay instalments of advance tax

Where, an assessee who is required to pay advance tax fails, to pay any instalment of such tax, as originally computed or as the case may be, estimated, on the due date, he shall be deemed to be an assessee in default in respect of such instalment.

Section 70. Levy of interest for failure to pay advance tax

Where, in respect of an assessee who is required to pay advance tax, it is found in the course of regular assessment that advance tax has not been paid in accordance with the provisions of this Chapter, there shall be added, without prejudice to the consequences of the assessee being in default under section 69, to the tax as determined on the basis of such assessment, simple interest thereon calculated at the rate and for the period specified in section 73.

Section 71. Credit of advance tax

Any sum, other than a penalty or interest, paid by or recovered from an assessee as advance tax, shall be treated as a payment of tax in respect of the income of the period which would be the income year for an assessment for the year next following the year in which it was payable and shall be given credit for in the assessment of tax payable by the assessee.

Section 72. Interest payable by Government on excess payment of advance tax

(1) The Government shall pay simple interest at ⁶³⁰ten per cent per annum on the amount by which the aggregate sum of advance tax paid during a financial year exceeds the amount of tax payable by him as determined on regular assessment.

(2) The period for which interest under sub-section (1) shall be payable shall be the period from the ⁶³¹first day of July of the year of assessment to the date of regular assessment in respect of the income of that year or a period of two years from the said ⁶³²first day of July, whichever is shorter.

Interest payable by the assessee on deficiency in payment of advance tax

⁶³³73. (1) Where in any financial year advance tax paid by an assessee together with the tax deducted or collected at source, if any, under this Chapter is less than seventy-five percent (75%) of the amount of tax payable by him as determined on regular assessment, the assessee shall pay, in addition to the balance of tax payable by him, simple interest at the rate of ten percent (10%) per annum on the amount by which the tax so paid, deducted and collected falls short of the seventy five percent (75%) of the assessed tax: Provided that the rate of interest shall be fifty percent (50%) higher if the return is not filed on or before the Tax Day. (2) The period for which the interest under sub-section (1) is payable shall be the period from the first day of July next following the financial year in which the advance tax was applicable to the date of regular assessment in respect of the income of that year or a period of two years from the said first day of July, whichever is shorter. (3) Notwithstanding anything contained in sub-sections (1) and (2), where-

(4) Where as a result of appeal, revision or reference the amount on which interest was payable under sub-section (1) has been reduced, the amount of interest payable shall be reduced accordingly and the excess interest paid, if any, shall be refunded together with the amount of tax that is refundable. Explanation.-For the removal of doubts, it is hereby declared that in this section, “regular assessment” includes ⁶³⁴the acceptance of revised return or the assessment made as a result of the audit under section 82BB(7).

Section 73A. Delay Interest for not filing return on or before the Tax Day

(1) Where an assessee is required to file a return of income for an assessment year under section 75 and fails to file the same before the expiry of the Tax Day, the assessee shall, without prejudice to any other consequences to which he may be liable to, pay a delay interest at the rate of two percent (2%) per month on the difference between the tax assessed on total income for the assessment year and the tax paid in advance for the assessment year including the tax deducted or collected at source; Explanation.-In this section, the expression “tax assessed on total income” as mentioned in ⁶³⁵*** sub-section (1) means- ⁶³⁶(i) where the return is subject to assessment under section 82BB, if tax under any other sub-section of section 82BB is higher than the tax under sub-section (1) of that section, the higher tax;

(2) The delay interest under sub-section (1) shall be calculated for a period from the first day immediately following the Tax Day to- Provided that the period for calculating delay interest under this section shall not exceed one year: Provided further that the delay interest under this section shall not be payable by an assessee for whom the proviso of sub-section (5) of section 75 applies.]

Section 74. Payment of tax on the basis of return

⁶³⁷ (1) Every person who is required to file a return under section 75, 77, 78, 89(2), 91(3) or 93(1) shall, on or before the date on which he files the return, pay the amount of tax payable by him on the basis of such return or as per provision of ⁶³⁸sub-section (4) of section 82C, which ever is higher, as reduced by the amount of any tax deducted from his income or paid by him in accordance with the provisions of this Chapter.

(2) Any amount paid under sub-section (1) shall be deemed to have been paid towards the sum as may be determined to be payable by him after regular assessment.

(3) A person who, without reasonable cause, fails to pay the tax as required by sub-section (1) shall be deemed to be an assessee in default.

Return of income

⁶³⁹75.(1) Subject to the provisions of sub-section (2), every person shall file or cause to be filed, with the Deputy Commissioner of Taxes, a return of income of the income year –

⁶⁴⁰(ix) an employee holding an executive or a management position in a business or profession; or

⁶⁴¹(x)     a Micro Credit Organisation having licence with Micro Credit Regulatory Authority; or

⁶⁴⁵(x) participates in a shared economic activities by providing motor vehicle, space, accommodation or any other assets; or

 (xi)  owns any licensed arms; or

⁶⁴⁶(f) if such person is required to furnish proof of submission of return under section 184A:

Provided that any non-resident Bangladeshi may file his return of income along with bank draft equivalent to the tax liability, if any, on the basis of such return, to his nearest Bangladesh mission and the mission will issue a receipt of such return with official seal and send the return to the Board.

⁶⁴⁷ (2) A return of income under sub-section (1) shall not be mandatory for-

(3) Subject to the provision of sub-section (4), the return under sub-section (1) shall be-

(4) The Board may, by notification in the official Gazette, -

(5) Every return under this section shall be filed, unless the date is extended under sub-section (6), on or before the Tax Day:

Provided that an individual being Government official engaged in higher ⁶⁴⁸education or training on deputation or leave or employed under lien outside Bangladesh shall file return or returns for the period of such deputation or lien, at a time, within three months from the date of his return to Bangladesh.

(6) The last date for the submission of a return for a person may be extended by the Deputy Commissioner of Taxes upon the application by the person in the prescribed form:

Provided that the Deputy Commissioner of Taxes may extend the date up to two months from the date so specified and he may further extend the date up to two months with the approval of the Inspecting Joint Commissioner.

Section 75A. Return of withholding tax

(1) Every person, being a company or a co-operative society or a non-government organization registered with NGO Affairs Bureau ⁶⁴⁹a Micro Credit Organisation having licence with Micro Credit Regulatory Authority, ⁶⁵⁰a university, a private hospital, a clinic, a diagnostic centre, ⁶⁵¹an English medium school providing education following international curriculum, artificial juridical person, local authority, a firm or an association of persons, shall file or cause to be filed, with the Deputy Commissioner of Taxes under whose jurisdiction he is an assessee, a return of tax deducted or collected under the provisions of Chapter VII of this Ordinance.

(2) The return under sub-section (1) shall be-

Provided that the last date for the submission of a return as specified in this sub-section may be extended by the Deputy Commissioner of Taxes upto fifteen days from the date so specified.

(3) The Board may, by notification in the official Gazette,-

Audit of the return of withholding tax

75AA. (1) The Deputy Commissioner of Taxes, with the approval of the ⁶⁵⁴Commissioner, shall select a number of returns of withholding tax filed under section 75A for audit.

(2) The Deputy Commissioner of Taxes shall conduct the audit of the selected return in respect of the following matters-

(3) Where an audit under sub-section (2) results in findings that the provisions of this Ordinance in respect of the matters mentioned in clauses (a), (b) or (c) of sub-section (2) have not complied with, the Deputy Commissioner of Taxes conducting the audit may take necessary actions under this Ordinance, including the actions under sections 57, 57A and 124.

(4) No return shall be selected for audit after the expiry of four years from the end of the year in which the return was filed.]

Obligation to furnish Annual Information Return.

⁶⁵⁵75B.(1) Government may, by notification in the official gazette, require any person or group of persons responsible for registering or maintaining books of account or other documents containing a record of any specified financial transaction, under any law for the time being in force, to furnish an Annual Information Return, in respect of such specified financial transaction. (2) The Annual Information Return referred to in sub-section (1) shall be furnished to the Board or any other income tax authority or agency, in such form, manner and within such time as may be prescribed.

Concurrent jurisdiction.

⁶⁵⁶75C.Board may, by general or a special order in writing, direct that in respect of all or any proceedings relating to receiving of return of income and issuance of acknowledgement thereof in accordance with the provisions of section 75, 77, 78, 89(2), 91(3) or 93(1), the powers and functions of the Deputy Commissioner of Taxes shall be concurrently exercised by such other authority as may be specified by the Board.

[Omitted]

⁶⁵⁷***

Section 77. Notice of filing return

⁶⁵⁸(1) The Deputy Commissioner of Taxes may, at any time after expiry of the date specified in section 75, by a notice in writing, require –

(2) The return under sub-section (1) shall be filed within such period, not being less than ⁶⁵⁹twenty-one days, as may be specified in the notice or which such extended period as the Deputy Commissioner of Taxes may allow.

Section 78. Filing of revised return

Any person who has not filed a return as required by section 75 or 77 or who, having filed return, discovers any omission or incorrect statement therein, may, without prejudice to any liability which he may have incurred on this account, file a return or a revised return, as the case may be, at any time before the assessment is made.

Production of accounts and documents, etc

⁶⁶⁰ 79. (1)The Deputy Commissioner of Taxes may by notice in writing require an assessee, who has filed a return under Chapter VIII or to whom a notice has been issued to file a return, to produce or cause to be produced such accounts, statements, documents, data or electronic records, not being earlier than three years prior to the income year, as he may consider necessary for the purpose of audit or assessment under this Ordinance. (2) The Deputy Commissioner of Taxes may specify in the notice that the accounts, statements, documents, data or electronic records or any part thereof shall be produced in such electronic form or by such electronic media as may be mentioned in the notice. (3) The accounts, statements, documents, data or electronic records shall be produced on or before the date as may be specified in the notice. (4) In this section-

Section 80. Statements of assets, liabilities and life style

⁶⁶¹(1) Every individual assessee, being resident Bangladeshi, shall furnish in the forms and manners as prescribed, a statement in respect of all ⁶⁶²local and global assets and liabilities of the person or the spouse, minor children and dependents of the person as on the last date of the income year if the person-

(2) Every individual assessee who, under sub-section (1) is not required to submit the statement may voluntarily submit such statement.

(3) Every individual assessee, being a non-resident Bangladeshi, shall submit the statement referred in sub-section (1) only in respect of assets located in Bangladesh.

Every individual assessee, being a non-Bangladeshi, shall submit the statement referred in sub-section (1) only in respect of assets located in Bangladesh.

(5) Every individual assessee, whose total income does exceed Taka four lakh as on the last date of the income year shall furnish, in the forms and manners as prescribed, a statement of expenses relating to the life style of the person.

(6) Every individual assessee, being a shareholder director of a company, shall furnish, irrespective of the total income, in the forms and manners as prescribed, a statement of expenses relating to the life style of the person.

(7) Where any statement as mentioned in sub-section (1) or in sub-section (5) is not submitted by a person being an individual, the Deputy Commissioner of Taxes may require, by notice in writing, to submit the same by person within the time as mentioned in the notice.

Section 81. Provisional assessment

(1) The Deputy Commissioner of Taxes may, at any time after the first day of July of the year for which the assessment is to be made, proceed to make, in a summary manner, a provisional assessment of the tax payable by the assessee on the basis of the return and the accounts and documents, if any, accompanying it and where no return has been filed, on the basis of the last assessment including an assessment under this section.

(2) In making a provisional assessment under this section, the Deputy Commissioner of Taxes shall-

(3) For the purposes of payment and recovery, the tax as determined to be payable upon provisional assessment shall have effect as if it were determined upon regular assessment.

(4) The tax paid or deemed to have been paid under Chapter VII, in respect of any income provisionally assessed under sub-section (1), shall be deemed to have been paid towards the provisional assessment.

(5) Any amount paid or deemed to have been paid towards provisional assessment under this section shall be deemed to have been paid towards regular assessment; and the amount paid or deemed to have been paid towards provisional assessment in excess of the amount found payable after regular assessment shall be refunded to the assessee.

(6) Nothing done or suffered by reason or in consequence of any provisional assessment made under this section shall prejudice to the determination on merit of any issue which may arise in the course of regular assessment.

(7) There shall be no right of appeal against a provisional assessment under this section.

Assessment on correct return.

⁶⁶³82.Where a return or a revised return has been filed under Chapter VIII and the Deputy Commissioner of Taxes is satisfied, without requiring the presence of the assessee or the production of any evidence, that the return is correct and complete, he shall assess the total income of the assessee and determine the tax payable by him on the basis of such return and communicate the assessment order to the assessee within thirty days next following:

Provided that-

Assessment under simplified procedure

⁶⁶⁷82A. Where an assessee, other than a public company as defined in the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন), who has previously been assessed for any assessment year ended on or before the thirtieth day of June, 1995, files a return showing income for the income year relevant to the assessment year commencing on or after the first day of July, 1995 and ending on or before the thirtieth day of June, 1997 and the income shown in such return is higher by not less than ten per cent over the last assessed income and has also increased by at least a further sum of ten per cent for each preceding assessment year in respect of which the assessment is pending, the return filed by the assessee shall be deemed to be correct and complete and the Deputy Commissioner of Taxes shall assess the total income of the assessee on the basis of such return and determine the tax payable by him ⁶⁶⁸on the basis of such assessment, and communicate the assessment order to the assessee within thirty days next following, provided-

⁶⁷⁰(b) the net accretion of his wealth, if he is not required to submit statement of assets and liabilities under ⁶⁷¹clause (c) of sub-section (3) of section 75, along with his disclosed family expenses and taxes paid during the year, shall not exceed the income disclosed for the year and the income or receipt, if any, exempted from tax⁶⁷²; and

82B [Omitted]

⁶⁷³***

Universal Self Assessment

⁶⁷⁴82BB. (1) Where an assessee files a return of income mentioning twelve-digit Taxpayer's Identification Number (TIN) in compliance with the conditions and within the time specified in section 75 and pays tax in accordance with the provision of section 74, he shall be issued by the Deputy Commissioner of Taxes or any other official authorised by him, an acknowledgment of receipt of the return and such acknowledgment shall be deemed to be an order of assessment of the Deputy Commissioner of Taxes.

(2) The Deputy Commissioner of Taxes shall process the return filed under sub-section (1) in the following manner, namely:-

(3) Where the process of return results in a difference in the amount of income, tax or other material figures than the amount mentioned in the return filed under sub-section (1), the Deputy Commissioner of Taxes shall serve a notice to the assessee-

(4) Where a notice under sub-section (3) is served, the Deputy Commissioner of Taxes shall-

Provided that a notice of demand shall be served within ⁶⁷⁶ nine months from the date of serving notice under sub-section (3).

(5) Where, after filing the return under sub-section (1), the assessee finds that owing to any unintentional mistake the tax or any other amount payable under this Ordinance has been paid short or computed short by reasons of underreporting of income or overreporting of rebate, exemption or credit or for any other reasons, he may file to the Deputy Commissioner of Taxes an amended return-

and if the Deputy Commissioner of Taxes is satisfied that the amended return is filed in compliance with the conditions mentioned in clause (a) and (b), he may allow the amended return:

Provided that no amended return shall be allowed-

(6) No notice under sub-section (3) shall be served after the expiry of twelve months from the date of the submission of return under sub-section (1) or amended return under sub-section (5), as the case may be.

(7) The Board or any authority subordinate to the Board, if so authorised by the Board in this behalf, may select, in the manner to be determined by the Board, a number of returns filed under sub-section (1) or of amended returns accepted under clause (a) of sub-section (4) or of amended returns allowed under sub-section (5), and refer the same to the Deputy Commissioner of Taxes for the purpose of audit:

Provided that a return filed or an amended return accepted or allowed under this section shall not be selected for audit where-

(8) Where after conducting the audit the Deputy Commissioner of Taxes is satisfied that the affairs of the assessee has not been duly reflected in the return or the amended return or in statements and documents submitted therewith, he shall communicate the findings of the audit to the assessee and serve a notice requiring him to file a revised return reflecting the findings of the audit, and pay tax and any other applicable amount on the basis of the revised return on or before the filing of such revised return.

(9) Where a revised return is filed and the Deputy Commissioner of Taxes is satisfied that the findings of audit has been duly reflected in the revised return and the tax and any other applicable amount have been fully paid in compliance with the provision of sub-section (8), he may accept the revised return and issue a letter of acceptance to the assessee.

(10) Where after the service of notice under sub-section (8) no revised return is filed or the revised return that has been filed does not reflect the findings of the audit, or tax or other applicable amount has not been paid in compliance with the provisions of sub-section (8), the Deputy Commissioner of Taxes shall proceed to make assessment under section 83 or 84, whichever is applicable.

(11) In the case of a return submitted under sub-section (1), no question as to the source of initial capital of the business or profession of a new assessee shall be raised, if the assessee-

(12) In the case of a return for which the provision of sub-section (11) applies, the minimum amount of capital maintained in the business or profession at the end of the income year and four subsequent income years shall be equal to the initial capital; andany amount of shortfall of the capital in any income year shall be deemed as "income from business or profession" for that income year and shall be included in total income of the assessee.

(13) For the purpose of this section-

Minimum Tax

⁶⁷⁹82C. (1) Notwithstanding anything contained in any other provisions of this Ordinance, minimum tax shall be payable by an assessee in accordance with the provisions of this section.

(2) Minimum tax on income on sources from which tax has been deducted or collected under certain sections shall be the following-

Provided that the tax deducted or collected from the following sources shall not be the minimum tax for the purpose of this sub-section-

Provided that income shall be determined and tax shall be calculated for certain sources in the manner as specified in the following-

| Serial No. | Sources of income as mentioned in | Amount that will be taken as income | Rate or amount of tax | | --- | --- | --- | --- | | ( 1) | (2) | (3) | (4) | | 1 | section 52C | amount of compensation as mentioned in section 52C | as mentioned in section 52C | | 2 | section 52D | amount of interest as mentioned in section 52D | as mentioned in section 52D | | 3 | section 53DDD | amount of export cash subsidy as mentioned in section 53DDD | as mentioned in section 53DDD | | 4 | ⁶⁹²Serial No. 3 and 4 of the Table of section 53F(1) | amount of interest as mentioned in section 53F | as mentioned in section 53F | | 5 | section 53H | deed value as mentioned in section 53H ⁶⁹³less cost of acquisition | as mentioned in section 53H and the rule made thereunder | | ⁶⁹⁴6. | section 53P | any sum paid by real estate developer to land owner | As mentioned in section 53P |

(3) Where the assessee has income from regular source in addition to the income from source or sources for which minimum tax is applicable under sub-section (2)-

 ⁶⁹⁵(4) Subject to the provision of sub-section (5), minimum tax for an individual, a firm or a company shall be the following—

           shall, irrespective of its profits or loss in an assessment year, for any reason whatsoever, including the sustaining of a loss, the setting off of a loss of earlier year or years or the claiming of allowances or deductions (including depreciation) allowed under this Ordinance, be liable to pay minimum tax in respect of an assessment year at the following rate—

| Serial No | Classes of assessee | Rate of minimum tax | | --- | --- | --- | | (1) | (2) | (3) | | 1. | Manufacturer of cigarette, bidi, chewing tobacco, smokeless tobacco or any other tobacco products | 1% of the gross receipts | | 2. | Mobile phone operator | 2% of the gross receipts | | 3. | Individual other than individual engaged in mobile phone operation or in the manufacturing of cigarette, bidi, chewing tobacco, smokeless tobacco or any other tobacco products, having gross receipts taka 3 crore or more | ⁶⁹⁶0.25% of the gross receipts | | 4. | Any other cases | 0.60% of the gross receipts: |

       Provided that such rate of tax shall be zero point one zero percent (0.10%) of such receipts for an industrial undertaking engaged in manufacturing of goods for the first three income years since commencement of its commercial production.

Explanation.--For the purposes of this sub-section, 'gross receipts' means-

benefits including commissions or discounts;

(5) Where the provisions of both sub-section (2) and sub-section (4) apply to an assessee, minimum tax payable by the assessee shall be the higher of

(6) Minimum tax under this section shall not be refunded, nor shall be adjusted against refund due for earlier year or years or refund due for the assessment year from any source.

(7) Where any surcharge, additional interest, additional amount etc. is payable under provisions of this Ordinance, it shall be payable in addition to the minimum tax.

(8) Where the regular tax calculated for any assessment year is higher than the minimum tax under this section, regular tax shall be payable.

(9) In this section-

⁶⁹⁸(8A) Where tax has been mistakenly deducted and collected in excess or deficit of the due amount (i.e. the amount to be deducted or collected in accordance with the provision of Chapter VII), minimum tax under this section shall be computed based on the due amount of deduction or collection, and provisions of this section shall apply accordingly.

Spot Assessment

⁶⁹⁹82D. (1)Where a person is found to have taxable income or required to submit tax return or required to comply with any provision of the Ordinance and the person has failed to perform or comply with requirements of the Ordinance, the Deputy Commissioner of Taxes, empowered to this end, may assess the tax liability of such person on the spot.

(2) Where assessment of an assessee being individual having income from business or profession is made under this section applying regular rate and the asseesee pays tax accordingly, no question as to the initial capital not exceeding five times of such assessed income shall be made.

(3) Commissioner of Taxes may empower any Deputy Commissioner of Taxes who is subordinate to him to conduct spot assessments within his jurisdiction.

(4) The Board shall issue guidelines as to the manner how assessment under this section shall be made.

83A[Omitted]

⁷⁰⁰***

83AA [Omitted]

⁷⁰¹***

Assessment after hearing

⁷⁰²83. (1) Where a return or revised return has been filed under Chapter VIII and the Deputy Commissioner of Taxes is not satisfied without requiring the presence of the person who filed the return or the production of evidence that the return is correct and complete, he shall serve on such person a notice requiring him, on a date to be therein specified, to appear before the Deputy Commissioner of Taxes, or to produce or cause to be produced before him or at his office, any evidence in support of the return.

(2) The Deputy Commissioner of Taxes shall, after hearing the person appearing, or considering the evidence produced in pursuance of the notice under sub-section (1) and also considering such other evidence, if any, as he may require on specified points, by an order in writing assess, within thirty days after the completion of the hearing or consideration, as the case may be, the total income of the assessee and determine the sum payable by him on the basis of such assessment, and communicate the order to the assessee within thirty days next following.

Assessment on the basis of report of a chartered accountant

⁷⁰³83AAA. (1) Where a return or revised return is filed under Chapter VIII by an assessee being a company and the Board has reasonable cause to believe that the return or revised return is incorrect or incomplete, the Board may appoint a registered chartered accountant to examine the accounts of that assessee.

(2) The chartered accountant appointed under sub-section (1) shall exercise the powers and functions of the Deputy Commissioner of Taxes as referred to in section 79 and clauses (a), (b), (c), (d) and (e) of section 113.

(3) The chartered accountant, after examination of the accounts of that assessee, shall submit a report in writing to the Board along with findings within a time as may be specified by the Board.

(4) On receipt of the report referred to in sub-section (3), the Board shall forthwith forward the report to the concerned Deputy Commissioner of Taxes for consideration.

(5) On receipt of the report under sub-section (4), the Deputy Commissioner of Taxes shall serve a notice upon the assessee under sub-section (1) of section 83.

(6) The Deputy Commissioner of Taxes shall, after hearing the person appearing and considering the evidences produced including the findings stated in the report received under sub-section (5) and also considering the other evidences, by an order in writing, assess within thirty days after the completion of hearing or consideration, as the case may be, the total income of an assessee and shall determine the sum payable by the assessee on the basis of such assessment, and communicate the said order to the assessee within thirty days from the date of such order.

Section 84A. [Omitted]

[Presumptive Assessment.-Omitted by section 5 of the Finance Act, 1997 (Act No. XV of 1997).]

Best judgment assessment

⁷⁰⁴84. (1) Where any person fails-

the Deputy Commissioner of Taxes shall, by an order in writing, assess the total income of the assessee to the best of his judgement and determine the sum payable by the assessee on the basis of such assessment; ⁷⁰⁵***, and communicate such order to the assessee within thirty days next following.

(2) Where in the opinion of the Board a best judgement assessment made by a Deputy Commissioner of Taxes under sub-section (1) shows lack of proper evaluation of legal and factual aspects of the case which has resulted in an arbitrary and injudicious assessment, the action leading to such assessment made by the said Deputy Commissioner of Taxes shall be construed as misconduct.

Section 85. Special provisions regarding assessment of firms

(1) Notwithstanding anything contained in this Ordinance, where the assessee is a firm and the total income of the firm has been assessed under sections 82, 83, or 84, as the case may be,-

⁷⁰⁶* * *

(2) Whenever any determination is made in accordance with the provisions of sub-section (1), the Deputy Commissioner of Taxes shall, by an order in writing, notify to the firm-

Section 86. Assessment in case of change in the constitution of a firm

(1) Where, at the time of assessment of a firm, it is found that a charge has occurred in the constitution of the firm, the assessment shall be made on the firm as constituted at the time of making the assessment :

Provided that-

(2) For the purpose of this section, there is a change in the constitution of a firm-

Section 87. Assessment in case of constitution of new successor firm

Where, at the time of assessment on a firm, it is found that a new firm has been constituted to succeed the firm to which the assessment relates and it cannot be covered by section 86 separate assessments shall be made on the predecessor firm and the successor firm in accordance with the provisions of section 88 relating to assessment in case of succession to business.

Section 88. Assessment in case of succession to business otherwise than on death

(1) Where, a person, carrying on any business or profession (in this section, referred to as predecessor), has been succeeded therein otherwise than on death by another person (in this section, referred to as the successor) continues to carry on that business or profession,-

(2) Notwithstanding anything contained in sub-section (1), where the predecessor cannot be found, the assessment of the income year in which the succession took place up to the date of succession and of the income year or years preceding that year shall be made on the successor in the like manner and to the same extent as it would have been made on the predecessor; and the provisions of this Ordinance shall, so far as may be, apply accordingly.

(3) Where any sum payable under this section in respect of the income of a business or profession cannot be recovered from the predecessor, the Deputy Commissioner of Taxes shall record a finding to that effect, and thereafter the sum payable by the predecessor shall be payable by, and recoverable from, the successor who shall be entitled to recover if from the predecessor.

Section 89. Assessment in case of discontinued business

(1) Without prejudice to the provision of section 87, where any business or profession is discontinued in any financial year, and assessment may be made in that year, notwithstanding anything contained in section 16, on the basis of the total income of the period between the end of the income year and the date of such discontinuance in addition to the assessment, if any, made on the basis of the income year.

(2) Any person discontinuing any business or profession in any financial year shall give to the Deputy Commissioner of Taxes a notice of such discontinuance within fifteen days thereof; and such notice shall be accompanied by a return of total income in respect of the period between the end of the income year and the date of such discontinuance and that financial year shall be deemed to be the assessment year in respect of the income of the said period.

(3) Where, a person fails to give the notice required by sub-section (2), the Deputy Commissioner of Taxes may direct that a sum shall be recovered from him by way of penalty not exceeding the amount of tax subsequently assessed on him in respect of any income from the business or profession up to the date of its discontinuance.

(4) Where an assessment is to be made under sub-section (1), the Deputy Commissioner of Taxes may serve-

a notice to furnish within such time, not being less than seven days, a return of his total income giving such particulars and information as are required to be furnished with a return to be filed under section 75 along with such other particulars, records and documents as may be specified in the notice.

(5) The provisions of this Ordinance shall, so far as may be, apply to a notice under sub-section (4) for the purpose of assessment of tax as if it were a notice under section 77.

Section 90. Assessment in case of partition of a Hindu undivided family

(1) A Hindu family hitherto assessed as a Hindu undivided family shall be deemed, for the purposes of this Ordinance, to continue to be a Hindu undivided family except where, and in so far as, a finding of partition has been given under this section in respect of that family.

(2) Where, at the time of an assessment of a Hindu undivided family, it is claimed by any member thereof that a partition has taken place amongst the members of the family, the Deputy Commissioner of Taxes shall make an enquiry thereinto after giving notice to all the members of the family.

(3) On the completion of the enquiry, the Deputy Commissioner of Taxes shall record a finding as to whether there has been a partition of the joint family property, and, if there has been such a partition, the date on which it has taken place.

(4) In the case of a finding under sub-section (3) that the partition of the undivided family took place after the expiry of the income year, the total income of the income year of the undivided family shall be assessed as if no partition has taken place; and each member or group of members of the family shall, in addition to any tax for which he or it may be separately liable, be jointly and severally liable for the tax on the income of the family so assessed.

(5) In the case of finding under sub-section (3) that the partition of the undivided family took place during the income year, the total income of the undivided family in respect of the period up to the date of partition shall be assessed as if no partition had taken place; and each member or group of members of the family shall, in addition to any tax for which he or it may be separately liable, by jointly and severally liable for the tax on the income of that period as so assessed.

(6) Notwithstanding anything contained in this section, if the Deputy Commissioner of Taxes finds after completion of the assessment of a Hindu undivided family that the family has already effected a partition, the tax shall be recoverable from every person who was a member of the family before the partition; and every such person shall be jointly and severally liable for tax on the income of the family in so assessed.

(7) For the purposes of this section, the several liability of any member or group of members of a Hindu undivided family shall be computed according to the portion of the property of the undivided family allotted to him or it at the partition.

(8) The provisions of this section shall, so far as may be, apply in relation to the levy and collection of any penalty, interest, fine or other sum in respect of any period up to the date of the partition of a Hindu undivided family as they apply in relation to levy and collection of tax in respect of any such period.

Section 91. Assessment in case of persons leaving Bangladesh

(1) Where it appears to the Deputy Commissioner of Taxes that any person may leave Bangladesh during the current financial year or shortly after its expiry and that he has no intention of returning, as assessment may be made in that year, notwithstanding anything contained in section 16, on the basis of the total income of such person-

(2) Assessment under sub-section (1) shall be made-

(3) For the purpose of making an assessment under this section, the Deputy Commissioner of Taxes may serve a notice upon the person concerned requiring him to file, within such time, not being less than seven days, as may be specified in the notice,-

(4) All the provisions of this Ordinance shall, so far as may be, apply to the notice under sub-section (3) for purposes of assessment of tax as if it were a notice under section 77.

(5) Nothing in this section shall be deemed to authorise a Deputy Commissioner of Taxes to assess any income which has escaped assessment or has been under assessed or has been assessed at too low a rate or has been the subject of excessive relief under this Ordinance but in respect of which he is debarred from issuing a notice under section 93.

Section 92. Assessment in the case of income of a deceased person

(1) Where a person dies, his legal representative shall be liable to pay any tax or other sum payable under this Ordinance which the deceased would have been liable to pay if he had not died, in the like manner and to the same extent as the deceased; and the legal representative of the deceased shall, for the purposes of this Ordinance, be deemed to be an assessee:

Provided that before deeming the legal representative of the deceased to be an assessee, a notice to that effect shall be issued to him by the Deputy Commissioner of Taxes.

(2) For the purpose of making an assessment of the income of the deceased and recovery of tax,-

and all the provisions of this Ordinance shall, so far as may be, apply accordingly.

(3) The liability of a legal representative under this Ordinance shall be limited to the extent to which the estate of the deceased is capable of meeting the liability.

(4) For the purposes of this section and other provisions of this Ordinance in which the rights, intefrests and liabilities of the deceased are involved, “legal representative” includes an executor, an administrator and any person administering the estate of the deceased.

Tax, etc. escaping payment

⁷⁰⁹93. (1) If, based on the information from an audit, assessment or any other proceeding under this Ordinance or from any other source, the Deputy Commissioner of Taxes has reason to believe that any sum payable by an assessee under this Ordinance has escaped payment in any assessment year, the Deputy Commissioner of Taxes may issue a notice in the form specified by the Board upon the assessee requiring him to-

(2) The Deputy Commissioner of Taxes shall-

(3) The Deputy Commissioner of Taxes shall obtain the approval of the Inspecting Joint Commissioner in writing before issuing a notice under sub-section (1) where-

the assessment of the relevant assessment year is completed under any other provision of this Ordinance.

(4) A notice under sub-section (1) may be issued by the Deputy Commissioner of Taxes-

⁷¹¹***

Provided ⁷¹²*** that in a case where a fresh assessment is made for any assessment year in pursuance of any provision under this Ordinance, the period referred to in this sub-section shall commence from the end of the year in which the fresh assessment is made.

(5) In computing the period of limitation for the purpose of making an assessment or taking any other proceedings under this Ordinance, the period, if any, for which such assessment or other proceedings has been stayed by any court, tribunal or any other authority, shall be excluded.

(6) Notwithstanding anything contained in sub-section (4), where an assessment or any order has been annulled, set aside, cancelled or modified, the concerned income tax authority may start the proceedings from the stage next preceding the stage at which such annulment, setting aside, cancellation or modification took place, and nothing contained in this Ordinance shall render necessary the re-issue of any notice which has already been issued or the re-furnishing or refiling of any return, statement or other particulars which has already been furnished or filed, as the case may be.

(7) An assessment under sub-section (2) of an assessee who was already assessed for the relevant year shall be confined to the issues that have been mentioned in the notice served under sub-section (1).

(8) The Deputy Commissioner of Taxes shall not be barred from taking proceedings under this section for an assessment year on the grounds that the proceeding under sub-section (2) is earlier concluded in respect of that assessment year.

(9) In this section-

Section 94. Limitation for assessment

⁷¹³(1) Subject to the provisions of sub-sections (2) and (3), after the expiry of-

no order of assessment under the provisions of this Chapter, in respect of any income, shall be made.

(2) An assessment under section 93 may be made within two years from the end of the year in which the notice under sub-section (1) of section 93 was issued.

(3) Notwithstanding anything contained in this section, limiting the time within which any action may be taken, or any order or assessment may be made, order or assessment, as the case may be, to be made on the assessee or any other person in consequence of, or to give effect to, any finding or direction contained in an order under sections 120, 121, ⁷¹⁴* * * 156, 159, 161 or 162 or, in the case of a firm, an assessment to be made on a partner of a firm in consequence of an assessment made on the firm, ⁷¹⁵or an agreement reached under section 152O, shall be made within thirty days from the date on which the order or the agreement was communicated] ⁷¹⁶and communicate such revised order to the assessee within thirty days next following ⁷¹⁷:

Provided that where an order of assessment has been set aside by any authority in that case the assessment shall be made within ⁷¹⁸sixty days from the date on which the order was communicated to him.

Explanation I.-Where by an order under ⁷¹⁹sections 120, 121A, 156, 159, 161 or 162, any income is excluded from the total income of the assessee for an assessment year, an assessment of such income for another assessment year shall, for the purposes of this section, be deemed to be one made in consequence of, or to give effect to, any finding or direction contained in the said order.

Explanation II.-Where by an order under ⁷²⁰sections 120, 121A, 156, 159, 161 or 162, any income is excluded from the total income of one person and held to be the income of another person, an assessment of such income of such other person, shall, for the purposes of this section, be deemed to be one made in consequence of or to give effect to, any finding or direction contained in the said order.

⁷²¹(4) where the Deputy Commissioner of Taxes fails to give effect to any finding or direction contained in an order referred to in sub-section (3) within the period stipulated therein, such failure of the Deputy Commissioner of Taxes shall be construed as misconduct.

Section 94A. [Omitted]

[Omitted by section 31 of the Finance Act, 2003 (Act No. XVII of 2003).]

Bar to question assessment

⁷²²94B. (1) Notwithstanding anything contained in any provision of this Ordinance or in any other law for the time being in force, no authority save the authorities mentioned in section 3 or the courts and authorities mentioned in Chapter XIX shall have right to question any assessment made under this Chapter.

(2) Any action taken in violation of the provision of sub-section (1) shall be null and void and have no legal effect.

Section 95. Liability of representative in certain cases

(1) Every person who is a representative of another person in respect of any income for the purpose of this section shall, in respect of such income,-

(2) A person, who is assessed in pursuance of this section as a representative in respect of any income, shall not, in respect of the same income, be assessed under any other provision of this Ordinance.

(3) Nothing in this section shall prevent either the direct assessment of the person for whom, or on whose behalf or for whose benefit, the representative is entitled to receive any income or recovery from such person of the tax payable in respect of such income.

(4) For the purposes of this section,-

Section 96. Persons to be treated as agent

(1) For the purposes of this Ordinance, the following persons shall, subject to the provisions of sub-sections (2) and (3) be treated as agent in relation to a non-resident, namely:-

(2) An independent broker in Bangladesh, who in respect of any transaction, does not deal directly with, or on behalf of, a non-resident principal but deals with, or through, a non-resident broker, shall not be treated as an agent in relation to a non-resident in respect of such transaction if-

(3) No person shall be treated under this Ordinance as an agent in relation to a non-resident unless he has been given by the Deputy Commissioner of Taxes an opportunity of being heard.

Section 97. Right of representative to recover tax paid

(1) A representative who, on account of his liability under section 95, pays any sum, shall be entitled to recover the sum so paid from the person on whose behalf it is paid, or to retain out of any moneys that may be in his possession or may come to him in his possession or may come to him in his capacity as a representative, an amount equivalent to the sum so paid.

(2) A representative, or any person who apprehends that he may be assessed as a representative, may retain, out of any money payable to the person (hereinafter referred to as “the beneficiary”) on whose behalf he is liable to tax under section 95, a sum not exceeding his estimated liability.

(3) In the event of any disagreement between the beneficiary and the representative or, as the case may be, the person apprehensive of being assessed as representative, as to the amount to be retained under sub-section (2), such representative or person may secure from the Deputy Commissioner of Taxes a certificate stating the amount to be so retained pending the settlement of the liability and the certificate so obtained shall be the warrant for retaining that amount.

Section 98. Liability of firm or association for unrecoverable tax due from partners or members

(1) Where any tax payable by a partner of a firm or a member of an association of persons in respect of his share of the income from the firm or association, as the case may be, cannot be recovered from him, the Deputy Commissioner of Taxes shall notify the amount of the tax to the firm or association.

(2) Upon notification of the amount of tax under sub-section (1), the firm or association so notified shall, notwithstanding anything contained in any other law for the time being in force, be liable to pay the said tax and shall, for the purposes of recovery thereof, be deemed to be an assessee in respect of such tax; and the provisions of this Ordinance shall apply accordingly.

Section 99. Liability of partners, etc., for discontinued business of a firm, etc.

(1) Where any business or profession carried on by a firm or an association of persons has been discontinued, or where a firm or an association of persons is dissolved, assessment of the total income of the firm or association may be made as if no such discontinuance or dissolution had taken place; and all the provisions of this Ordinance shall, so far as may be, apply accordingly.

(2) Where an assessment is made under sub-section (1) in respect of a firm or an association of persons, every person who was a partner of the firm or member of the association at the time of discontinuance of business, or as the case may be, dissolution of the firm or association, and the legal representative of any such person who is deceased, shall be jointly and severally liable for the amount of tax found payable by the firm or association upon such assessment and shall, for the purpose of recovery of such tax, including penalty and other sum payable, be deemed to be an assessee; and the provisions of this Ordinance shall apply accordingly.

Section 100. Liability of directors for unrecoverable tax of private companies

(1) Where any private company is wound up ⁷²³or has discontinued business for three successive years and any tax assessed on the company, whether before, or in the course of, or after its liquidation, in respect of any income of any income year cannot be recovered, every person who was, at any time during the relevant income year, a director of that company, shall, notwithstanding anything contained in ⁷²⁴the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন), be jointly and severally liable to pay the said tax and shall, for the purposes of recovery thereof, be deemed to be an assessee in respect of such tax; and the provisions of this Ordinance shall apply accordingly.

(2) Notwithstanding the provisions of sub-section (1), the liability of any person thereunder in respect of the income of a private company shall cease if he proves to the Deputy Commissioner of Taxes that non-recovery of tax from the company cannot be attributed to any gross neglect, misfeasance or breach of any duty on his part in relation to affairs of the company.

Section 101. Liability of liquidator for tax of private companies under liquidation

(1) A liquidator of a private company which is wound up, whether under the orders of a court or otherwise, shall, within thirty days after he has become such liquidator, give notice of his appointment as such to the Deputy Commissioner of Taxes having jurisdiction to assess the company.

(2) The Deputy Commissioner of Taxes shall, after making such enquiries or, calling for such information as he may consider necessary, notify to the liquidator, within three months of the date of receipt of the notice under sub-section (1) the amount which, in his opinion, would be sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company.

(3) On being notified under sub-section (2), the liquidator shall set aside an amount equal to the amount so notified and shall not, before he sets aside such amount, part with any of the assets, of the company except for the purpose of payment of tax payable by the company or for making payment to secure such creditors as are entitled under the law to priority of payment over the debts due to the Government on the date of liquidation.

(4) The liquidator shall be personally liable for payment of the tax on behalf of the company to the extent of the amount notified, if any, under sub-section (2), if he-

(5) Where there are more liquidators than one, the obligations and liabilities of a liquidator under this section shall attach to all the liquidators jointly and severally.

(6) This section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

Explanation.-In this section, “liquidator” includes any person who has been appointed to be the receiver of the assets of the company under liquidation.

Liability to tax in case of shipping business of non-residents

⁷²⁵102. (1) Notwithstanding anything contained in this Ordinance, where a non-resident carries on the business of operation of ships as the owner or charterer thereof (hereinafter in this section referred to as the principal) tax shall be levied and collected in respect of such business in accordance with the provisions of this section.

(2) Before the departure from any port in Bangladesh of any ship, the master of the ship shall prepare and furnish to the Deputy Commissioner of Taxes a return showing-

(3) On receipt of the return, the Deputy Commissioner of Taxes shall determine the aggregate of the amounts referred to in sub-section (2) and, for this purpose, may call for such particulars, accounts or documents, as he may require and the aggregate of the said amounts so determined shall be deemed to be income received in Bangladesh by the principal from the said business chargeable to tax under this Ordinance under the head “Income from business or profession” and tax thereon shall be charged at the rate of eight per cent of such income.

(4) Where the Deputy Commissioner of Taxes is satisfied that it is not possible for the master of the ship or the principal to furnish the return required under sub-section (2) before the departure of the ship from the port and the principal has made satisfactory arrangements for the filing of the return and payment of the tax by any other person on his behalf, the Deputy Commissioner of Taxes may, if the return is filed within thirty days of the departure of the ship, deem the filing of the return by the person so authorised by the principal as sufficient compliance with sub-section (2)⁷²⁷: Provided that where any charge mentioned in sub-section (8) is accrued after the expiry of said thirty days, the other person mentioned in this sub-section shall file a supplementary return in respect of such charge and pay tax thereon within next thirty days from the end of the month in which the charge has accrued.

(5) No port clearance shall be granted to the ship until the ⁷²⁸Commissioner of Customs, or any other officer duly authorised to grant the same, is satisfied that the tax payable under sub-section (3) has been duly paid or that satisfactory arrangements have been made for the payment thereof.

(6) Nothing contained in this Ordinance shall be so construed as to allow any expense against the aggregate amount of receipts as determined under sub-section (3).

(7) The tax paid under this section shall be deemed to be the final discharge of the tax liability of the assessee under this Ordinance, and the assessee shall not be required to file the return of total income under section 75 nor shall he be entitled to claim any refund or adjustment on the basis of such return.

⁷²⁹(8) For the purpose of this section, the amount referred to in sub-section (2) shall include the amount paid or payable by way of demurrage charge or handling charge or any other amount of similar nature.

Section 103. [Omitted]

[Adjustment of liability to tax in case of shipping.- Omitted by section 12 of অর্থ আইন, ১৯৮৯ (১৯৮৯ সনের ৩৬ নং আইন)

Liability to tax in case of air transport business of non-residents

⁷³⁰103A. (1) Notwithstanding anything contained in this Ordinance, where a non-resident person carries on the business of operation of aircraft, as the owner or charterer thereof (hereinafter in this section referred to as the principal), and any aircraft owned or chartered by him calls on any airport in Bangladesh, the aggregate of the receipts arising from the carriage of passengers, livestock, mail or goods loaded at the said airport into that aircraft shall be deemed to be income received in Bangladesh by the principal from the said business chargeable to tax under the head “Income from business or profession” and tax thereon shall be charged at the rate of three per cent of such income.

(2) The principal or an agent authorised by him in this behalf shall prepare and furnish to the Deputy Commissioner of Taxes, within forty-five days from the last day of each quarter of every financial year, that is to say, the thirtieth day of September, the thirty-first day of December, the thirty-first day of March and the thirtieth day of June, respectively, a return in respect of each quarter as aforesaid showing-

(3) On receipt of the return, the Deputy Commissioner of Taxes may, after calling for such particulars, accounts or documents, as he may require, determine the aggregate of the amounts referred to in sub-section (2) and charge tax as laid down in sub-section (1).

(4) Where the principal fails to pay the tax payable under sub-section (1), for more than three months, the Commissioner of Taxes may issue to the authority by whom clearance may be granted to that aircraft a certificate containing the name of the principal and the amount of tax payable by him; and on receipt of such certificate, the said authority shall refuse clearance from any airport in Bangladesh to any aircraft owned or chartered by such person until the tax payable has been paid.

(5) Nothing contained in this Ordinance shall be so construed as to allow any expense against the aggregate amount of receipts as determined under sub-section (3).

(6) The tax paid under this section shall be deemed to be the final discharge of the tax liability of the assessee under this Ordinance, and the assessee shall not be required to file the return of total income under section 75 nor shall he be entitled to claim any refund or adjustment on the basis of such return.

Section 104. Avoidance of tax through transactions with non-residents

Where any business is carried on between a resident and a non-resident and it appears to the Deputy Commissioner of Taxes that, owing to the close connection between them, the course of business is so arranged that the business transacted between them produces to the resident either no profits or profits less than the ordinary profits which might be expected to yield in that business, the Deputy Commissioner of Taxes shall determine the amount of income which may reasonably be considered to have accrued to the resident from such business and include such amount in the total income of the resident.

Section 105. Avoidance of tax through transfer of assets

(1) Any income which becomes payable to a non-resident by virtue, or in consequence, of any transfer of assets, whether alone or in conjunction with associated operations, shall be deemed to be the income of the person who-

(2) The income which becomes payable to a non-resident and is deemed under sub-section (1), to be the income of the person referred to therein shall be so deemed for all purposes of this Ordinance, whether such income would or would not have been chargeable to tax apart from the provisions of this section.

(3) The provisions of this section shall not operate if it is shown to the satisfaction of the Deputy Commissioner of Taxes-

(4) Where any person has been charged to tax on any income which is deemed under sub-section (1) to be his income, that income shall not again be deemed to form part of his income for the purpose of this Ordinance if it is subsequently received by him whether as income or in any other form.

(5) A person shall, for the purposes of this section, be deemed to have power to enjoy the income payable to a non-resident if-

(6) In determining whether a person has power to enjoy income, regard shall be had to the substantial result and effect of the transfer and any associated operations, and to all benefits which may at any time accrue to such person as a result of the transfer and associated operations irrespective of the nature or form of the benefit.

Explanation.-For the purposes of this section,-

Section 106. Avoidance of tax by transactions in securities

(1) Where the owner of any securities sells or transfers those securities and buys them back or reacquires them, or buys or acquires similar securities, and the result of the transactions is that any interest becoming payable in respect of the original securities sold or transferred by the owner is not receivable by the owner, the interest payable as aforesaid shall be deemed, for all purposes of this Ordinance, to be the income of such owner and not of any other person, whether the interest payable as aforesaid would or would not have been chargeable to tax apart from the provisions of this sub-section.

(2) Where any person has had for any period during an income year any beneficial interest in any securities and the result of any transactions within that year relating to such securities or the income thereof is that no income is received by him, or that the income received by him is less than the sum which the income would have amounted to had the income from such securities accrued from day to day, and been apportioned to the said period, then the income from such securities for the said period shall be deemed to be the income of such person.

(3) Where, any person carrying on a business which consists wholly or partly in dealing in securities buys or acquires any securities from any other person and either sells back or re-transfers those securities, or sells or transfers similar securities, to such other person, and the result of the transactions is that the interest becoming payable in respect of the securities bought or acquired by him is receivable by him but is not deemed to be his income by reason of the provisions of sub-section (1), no account shall be taken of the transactions in computing for any of the purposes of this Ordinance any income arising from, or loss sustained, in the business.

(4) The Deputy Commissioner of Taxes may, by notice in writing, require any person to furnish him, within such time, not being less than twenty-eight days, as may be specified in the notice, such particulars in respect of all securities of which such person was the owner, or in which he had beneficial interest at any time during the period specified in the notice, as the Deputy Commissioner of Taxes may consider necessary for the purpose of ascertaining whether tax has been borne in respect of the interest on all those securities and also for other purposes of this section.

Explanation.-For the purposes of this section,-

Section 107. Tax clearance certificate required for persons leaving Bangladesh

(1) Subject to such exceptions as the Board may make in this behalf, a person who is not domiciled in Bangladesh, or a person who being domiciled in Bangladesh at the time of his departure is not, in the opinion of an income tax authority likely to return to Bangladesh, shall not leave Bangladesh without obtaining from the Deputy Commissioner of Taxes authorised in this behalf by the Board:-

(2) The owner or charterer of any ship or aircraft, who issue any authority to any person referred to in sub-section (1) for travel by such ship or aircraft from any place in Bangladesh to any place outside Bangladesh unless such person has a certificate required by that sub-section, shall-

Explanation.-For the purposes of this section,-

Section 107A. Definitions.

In this Chapter, unless there is anything repugnant in the subject or context, -

(1) "arm’s length price" means a price in a transaction, the conditions (e.g. price, margin or profit split) of which do not differ from the conditions that would have prevailed in a comparable uncontrolled transaction between independent entities carried out under comparable circumstances;

(2) “associated enterprise”, in relation to another enterprise, means an enterprise which, at any time during the income year, has the following relationship with the other enterprise-

(3) “enterprise” means a person or a venture of any nature (including a permanent establishment of such person or venture);

(4) "independent enterprise" means an enterprise that is not an associated enterprise;

(5) "international transaction" means a transaction between associated enterprises, either or both of whom are non-residents, in the nature of purchase, sale or lease of tangible or intangible property, or provision of services, or lending or borrowing money, or any other transaction having a bearing on the profits, income, losses, assets, financial position or economic value of such enterprises, and includes-

⁷³⁴***

(7) "property" includes goods, articles, things or items, patent, invention, formula, process, design, pattern, know-how, copyright, trademark, trade name, brand name, literary, musical, or artistic composition, franchise, license or contract, method, program, software, database, system, procedure, campaign, survey, study, forecast, estimate, customer list, technical data, any aspects of advertising and marketing, any item which has substantial value, or any other intangible property;

(8) "record" includes electronically held information, documents and records;

(9) "Transfer Pricing Officer" means any income tax authority authorised by the Board to perform the function of a Transfer Pricing Officer;

(10) "transaction" includes an arrangement, understanding or action between two or more parties, whether or not such arrangement, understanding or action is formal or in writing; or whether or not it is intended to be enforceable by legal proceeding;

(11) "uncontrolled transaction" means a transaction undertaken between enterprises not being the associated enterprises.

Section 107B. Determination of income from international transaction having regard to arm’s length price.

Notwithstanding anything contained in Chapter XI of this Ordinance, the amount of any income, or expenditure, arising from an international transaction shall be determined having regard to the arm’s length price.

Section 107C. Computation of arm’s length price.

(1) The arm’s length price in relation to an international transaction shall be determined by applying the most appropriate method or methods selected from the following methods based on the nature of transaction, the availability of reliable information, functions performed, assets employed, risks assumed or such other factors as may be prescribed, namely:-

⁷³⁵1A) Where the most appropriate method applied is a method other than the method referred to in clause (d) or clause (f) of sub-section (1) and the dataset of the arm’s length price consists of six or more entries, an arm’s length range beginning from the thirty percentile of the dataset and ending on the seventy percentile of the dataset shall be constructed and the arm’s length price shall be-

        i. if the price at which the international transaction has actually been undertaken is within the range referred as above, then the price at which such international transaction has actually been undertaken shall be deemed to be the arm’s length price;

        ii. if the price at which the international transaction has actually been undertaken is outside the arm’s length range referred as mentioned above, the arm’s length price shall be taken to be the median of the dataset

In a case the dataset is less than six entries, the arm’s length price shall be the arithmetical mean of all the values included in the dataset.]

(2) The most appropriate method referred to in sub-section (1) shall be applied for determination of arm’s length price in the manner as may be prescribed:

Provided that the arm’s length price determined under this section shall not result in total income lower than the total income that would have been resulted if the price at which international transaction has actually been undertaken were taken as the price charged or paid in the said international transaction.

(3) Where in the course of any assessment under Chapter IX of this Ordinance, the Deputy Commissioner of Taxes is of the opinion thatÔÇö

the Deputy Commissioner of Taxes may determine the arm’s length price in relation to the said international transaction in accordance with provisions of sub-sections (1) and (2) on the basis of information or documents or other evidence available to him.

(4) In determining the arm’s length price under sub-section (3), the Deputy Commissioner of Taxes shall give an opportunity to the assessee by serving a notice calling upon him to show cause, on a date and time to be specified in the notice, why the arm’s length price should not be so determined on the basis of information or documents or other evidence available to the Deputy Commissioner of Taxes.

(5) Where an arm’s length price is determined under sub-section (3) of this section or under sub-section (4) of section 107D, the Deputy Commissioner of Taxes shall, by an order in writing, proceed to compute the total income of the assessee having regard to the arm’s length price so determined.

Section 107D. Reference to Transfer Pricing Officer.

(1) Notwithstanding anything contained in section 107C of this Ordinance,-

(2) Where a reference is made or any proceedings have been initiated under sub-section (1), the Transfer Pricing Officer shall serve a notice on the assessee requiring him to produce or cause to be produced on a date to be specified therein, any evidence on which the assessee may rely in support of his computation of the arm’s length price in relation to the international transaction in question.

(3) The Transfer Pricing Officer shall, after considering the evidence produced before him or available to him including the evidence as he may require on any specified points from the assessee or from any other person, and after taking into account all relevant materials which he has gathered shall, by order in writing, determine the arm’s length price in relation to the international transaction in accordance with section 107C of this Ordinance and send a copy of his order to the Deputy Commissioner of Taxes.

(4) The Deputy Commissioner of Taxes, upon receipt of the order under sub-section (3), shall proceed to compute the total income of the assessee in conformity with the arm’s length price so determined by the Transfer Pricing Officer ⁷³⁶and in computing the income of a person that is exempted from tax or is subject to a reduced rate of tax, the adjustment made in conformity with the arm’s length price so determined by the Transfer Pricing Officer shall be treated as income of such person and tax shall be payable on such income at the regular rate.

(5) The Transfer Pricing Officer may rectify any order passed by him under sub-section (3) so as to correct any mistake apparent from the record either of his own motion or on the mistake having been brought to his notice by the assessee or any other income tax authority, and the provisions of section 173 of this Ordinance shall, so far as may be, apply accordingly.

(6) Where any rectification is made under sub-section (5), the Transfer Pricing Officer shall send a copy of his order to the Deputy Commissioner of Taxes who shall thereafter proceed to amend the order of assessment in conformity with such order of the Transfer Pricing Officer.

Section 107E. Maintenance and keeping of information, documents and records

(1) Every person who has entered into an international transaction shall keep and maintain such information, documents and records as may be prescribed. (2) Without prejudice to the provisions of sub-section (1), the Board may prescribe the period for which the information, documents and records shall be kept and maintained. (3) The Deputy Commissioner of Taxes may, by notice in writing, require any person to furnish any information, documents and records as prescribed under sub-section (1) within the period as may be specified in the notice.

Statement of international transactions to be submitted

⁷³⁷107EE. Every person who has entered into an international transaction shall furnish, along with the return of income, a statement of international transactions in the form and manner as may be prescribed.

Report from an accountant to be furnished.

⁷³⁸107F. The Deputy Comissioner of Taxes may, by notice in writing, require that a person who has entered into international transaction or transactions the aggregate value of which, as recorded in the books of accounts, exceeds three crore taka during an income year shall furnish within the period as may be specified in the notice and in the form and manner as may be prescribed, a report from a Chartered Accountant or a Cost and Management Accountant regarding all or of a part of the information, documents and records furnished under section 107E.

Section 107G. Penalty for failure to keep, maintain or furnish information, documents or records to the Deputy Commissioner of Taxes.

Where any person fails to keep, maintain or furnish any information or documents or records as required by section 107E of this Ordinance, without prejudice to the provisions of Chapter XV of this Ordinance, the Deputy Commissioner of Taxes may impose upon such person a penalty not exceeding one percent of the value of each international transaction entered into by such person.

Section 107H. Penalty for failure to comply with the notice or requisition under section 107C.

Where any person fails to comply with the notice or requisition under section 107C of this Ordinance, the Deputy Commissioner of Taxes may impose upon such person a penalty not exceeding one percent of the value of each international transaction entered into by such person.

Penalty for failure to comply with the provision of section 107EE

⁷³⁹107HH. Where any person fails to comply with the provision of section 107EE of this Ordinance, the Deputy Commissioner of Taxes may impose upon such person a penalty not exceeding two per cent (2%) of the value of each international transaction entered into by such person.

Section 107I. Penalty for failure to furnish report under section 107F.

Where any person fails to furnish a report ⁷⁴⁰*** as required by section 107F of this Ordinance, the Deputy Commissioner of Taxes may impose upon such person a penalty of a sum not exceeding three lakh taka.

Section 107J. Applicability of this Chapter.

The provisions of this Chapter shall come into force from the date specified by the Board through notification in the official Gazette.

Section 108. Information regarding payment of salary

Every person responsible for making any payment constituting income classifiable under the head “Salaries” not being payment made by the Government, and the prescribed officer in cases where such payments are made by the Government, shall, before the first day of September each year, furnish to the Deputy Commissioner of Taxes, a statement prepared in the prescribed form and verified in the prescribed manner so as to give the following information, namely:-

Provided that the Deputy Commissioner of Taxes may extend the date for the delivery of the statement.

Information regarding filing of return by employees

⁷⁴¹108A. (1) Every employee shall furnish the following information to the employer by the fifteenth day of April each year-

(2) Any person responsible for making any payment which is an income of the payee classifiable under the head "Salaries", shall, by the thirtieth day of April of each year, furnish to such income tax authority and in such manner as may be prescribed, a statement containing the following information regarding the payee:- (3) Nothing in this section shall apply to a payment made by the Government.

Section 109. Information regarding Payment of interest

Every person responsible for making any payment of interest constituting income not classifiable under the head “Interest on securities” shall, if such payment exceeds ⁷⁴²fifteen thousand taka, before the first day of September each year, furnish to a prescribed officer a statement prepared in the prescribed form and verified in the prescribed manner so as to give the following information, namely:-

Section 110. Information regarding payment of dividend

The principal officer of every company shall, before the first day of September each year, furnish to the prescribed officer a statement prepared in the prescribed form and verified in the prescribed manner, so as to give the following information, namely:-

Section 111. [Omitted]

[Registration of firms.- Omitted by section 6 of the Finance Act, 1995 (Act No. XII of 1995).]

Startup sandbox

⁷⁴⁴111A.  (1) Notwithstanding anything contained in this Ordinance, the provisions of this section shall have overriding effect over all other provisions of this Ordinance.

(2) In determining “income from business or profession” of a startup registered under this section, sections 30 and 30B shall not be applicable for growth years.

(3) Where in any growth year, any loss is incurred by a startup registered under this section and the loss cannot be wholly so set off, the amount of the loss not so set off shall be carried forward to the next assessment year and so on for not more than nine successive assessment years.

(4) The rate of minimum tax as provided in sub-section (4) of section 82C for growth years of a startup registered under this section shall be 0.1% (zero point one percent).

(5) Save as provided in section 75, a startup registered under this section shall have no reporting obligation under this Ordinance for growth years if the startup provides permanent access to its system or books to the income tax authority.

(6) A startup, to enjoy the benefit of sandbox, shall be registered with the Board in the manner as required by the Board.

(7) A startup shall not be eligible for registration under this section, if it –

(8) For the purpose of this section-

Section 112. Powers under this Chapter not to prejudice other powers

The powers exercisable by income tax authorities under this Chapter shall not prejudice, unless otherwise provided in the provision thereof, the powers exercisable under the other provisions of this Ordinance.

Section 113. Power to call for information

The Deputy Commissioner of Taxes, the Inspecting Joint Commissioner, ⁷⁴⁵the Commissioner, the Director General, Central Intelligence Cell,⁷⁴⁶Directors-General of Inspection (Taxes), or any other officer authorised in this behalf by the Commissioner or the Board may, for the purposes of this Ordinance, by notice in writing, require-

Provided that no such notice on a banking company shall be issued by the Deputy Commissioner of Taxes or the Inspector, without the approval of the Commissioner, ⁷⁴⁷***.

Automatic furnishing of information

⁷⁴⁸113A. (1) The Board may, by a notice in official gazette, require any authority, person or entity to furnish in digital manner to the Board or any income tax authority specified by the Board, any information including information regarding assets, liabilities, income, expenses and transactions in respect of any class of persons. (2) The information mentioned in sub-section (1) shall be furnished in such digital manner as may be specified in the notice. (3) For the purpose of this section, furnishing in digital manner includes-

Section 114. Power to Inspect registers of companies

The Deputy Commissioner of Taxes, the Joint Commissioner of Taxes or any person authorised in writing in this behalf by either of them, may inspect and, if necessary, take copies, or cause copies to be taken, of any register of the members, debenture-holders or mortgagees of any company or any entry in such register.

Section 115. Power of survey

(1) For the purpose of survey of liability of any person to tax under this Ordinance, an income tax authority may, notwithstanding anything contained in other provisions of this Ordinance but subject to such directions or instructions as the Board may issue in this behalf, enter any place or premises within the limits of its jurisdiction and-

(2) Subject to the provisions of section 117, any income-tax authority exercising powers under sub-section (1), shall not remove or cause to be removed from any place or premises wherein he has entered, any books of account, or other documents, or any cash, stock or other valuable article or thing.

(3) Every proprietor, employee or other person who may be attending in any manner to, or helping in, the carrying on of any business or profession, or every person who may be residing in the place or premises in respect of which an income tax authority may be exercising power under sub-section (1), shall in aid of the exercise of such power,-

Section 116. Additional powers of enquiry and production of documents

(1) The ⁷⁴⁹* * * ⁷⁵⁰Directors-General of Inspection, ⁷⁵¹the Commissioner, the Director General, Central Intelligence Cell, and the Inspecting Joint Commissioner may, without prejudice to other powers which they may have under other provisions of this Ordinance, make any enquiry which they consider necessary as respects any person liable, or believed by them to be liable, to assessment under this Ordinance, or ⁷⁵²require any such person or any other person in relation to such enquiry to appear before him at the time and place as directed for providing any information or to produce or cause to be produced necessary documents, accounts or records including any electronic records and systems referred to in the Explanation of sub-section (2) of section 117 under the possession or control of such person or such other person.

(2) For the purpose of sub-section (1), the ⁷⁵³* * * ⁷⁵⁴Directors- General of Inspection, ⁷⁵⁵the Commissioner, the Director General, Central Intelligence Cell, and the Inspecting Joint Commissioner shall have the same powers as the Deputy Commissioner of Taxes has under this Ordinance for the purposes of making enquiry or requiring the production of accounts or documents including the powers under section 117(2).

(3) ⁷⁵⁶The Commissioner, the Director General, Central Intelligence Cell, the Inspecting Joint Commissioner, the Deputy Commissioner of Taxes or an Inspector, if he is so authorised in writing, may, for the purpose of making any enquiry which he considers necessary, enter the premises in which a person liable or believed by him to be liable to assessment, carries on his business or profession, and may call for and inspect any such person's accounts or any documents in his possession and may stamp any accounts or documents so inspected and may retain such accounts or documents for so long as may be necessary for examination thereof or for the purposes of a prosecution:

Provided that the Deputy Commissioner of Taxes or an Inspector shall not make any enquiries from any scheduled bank regarding any client of such bank except with the prior approval of the ⁷⁵⁷* * * Commissioner.

Power of giving order for not removing property

⁷⁵⁸116A. (1) Where, in the course of performing functions under this Ordinance, the Director General, Central Intelligence Cell or the Commissioner has definite information in his hands that any person has concealed the particulars of income or investment, he may, by order in writing, require any person who is in immediate possession or control of any money, bullion, jewellery, financial instrument, financial asset, valuable article or any other property not to remove, part with, or otherwise deal with it without obtaining previous permission of the concerned authority passing such order. (2) Every such order shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1). (3) The income tax authority mentioned in sub-section (1) may extend such period or periods with the approval of the Board: Provided that the total period of extension shall in no case exceed one year. (4) In computing the period referred to sub-section (2) and sub-section (3), the period, if any, for which the order under sub-section (1) has been stayed by any court, shall be excluded.

Section 117. Power of search and seizure

(1) Where ⁷⁵⁹* * * the ⁷⁶⁰Directors-General of Inspection or ⁷⁶¹the Commissioner, the Director General, Central Intelligence Cell, or such other officer empowered in this behalf by the Board has, on account of information in his possession, reason to believe that-

(2) An officer authorised under sub-section (1) (hereinafter referred to as the authorised officer) may, notwithstanding anything contained in any other law for the time being in force,-

⁷⁶⁹Explanation.- For the purpose of this section, 'electronic records and systems' include data, record or data generated, image or sound stored, received or sent in an electronic form or micro film or computer generated micro fiche and also include an electronic device. (3) The authorised officer may requisition the services of any police officer or other officer of the Government ⁷⁷⁰or any professional expert from outside the government to assist him for all or any of the purposes specified in sub-section (2); and it shall be the duty of every such officer ⁷⁷¹or professional expert to comply with such requisition.

(4) The authorised officer may, where it is not practicable to seize any such books of accounts, documents, ⁷⁷²electronic records and systems, money, bullion, jewellery or other valuable article or thing, by order in writing, require the owner or the person who is in immediate possession or control thereof not to remove, part with or otherwise deal with it without obtaining his previous permission; and the authorised officer may take such steps as may be necessary for ensuring compliance with the order⁷⁷³:

Provided that if the owner or the person concerned, without any reasonable cause, fails to comply with the provisions of this sub-section, the Deputy Director General, Central Intelligence Cell or the Deputy Commissioner of Taxes may realize from him the money or the value of the bullion, jewellery, valuable article or thing, if any, removed, parted with or otherwise dealt with; and in such a case the said person shall be deemed to be an assessee in default under this Ordinance.

(5) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books of accounts, documents,⁷⁷⁴electronic records and systems, money, bullion, jewellery or other valuable article or thing and any statement made by such person during the examination may thereafter be used in evidence in any proceeding under this Ordinance, or the Income-tax Act, 1922 (XI of 1922).

(6) Where any books of accounts, documents, ⁷⁷⁵electronic records and systems, money, bullion, jewellery or other valuable article or thing is found in the possession or control of any person in the course of a search, it may be presumed that-

(7) The person from whose custody any books of accounts or other documents ⁷⁷⁸or electronic records and systems are seized under sub-section (2) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person designated by him, at such place and time as the authorised officer may appoint in this behalf.

(8) The books of accounts or other documents ⁷⁷⁹or electronic records and systems seized under sub-section (2) shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless for reasons recorded in writing, approval of ⁷⁸⁰* * * the Commissioner has been obtained for such retention:

Provided that ⁷⁸¹* * * the Commissioner shall not approve such retention for a period exceeding thirty days after all the proceedings under this Ordinance in respect of the years for which the books of accounts or other documents, ⁷⁸²electronic records and systems, as are relevant, have been completed.

(9) If any person, legally entitled to the books of accounts or other documents ⁷⁸³or electronic records and systems seized under sub-section (2) objects to the approval given by the Commissioner under sub-section (8), he may make an application, stating therein the reasons for his objection, to the Board for the return of the books of accounts or other documents ⁷⁸⁴or electronic records and systems; and the Board may, after giving the applicant an opportunity of being heard, pass such orders thereon as it may think fit.

(10) Subject to the provisions of this Ordinance and the rules, if any, made in this behalf by the Board, the provisions of the Code of Criminal Procedure, 1898 (Act V of 1898), relating to search and seizure shall apply, so far as may be, to search and seizure under sub-section (2).

Explanation.-For the purposes of this section, the word “proceeding” means any proceeding in respect of any year under this Ordinance which may be pending on the date on which a search is authorised under this section or which may have been completed on or before such date and also includes all proceedings under this Ordinance which may be commenced after such date in respect of any year.

Power to verify and enforce deduction or collection of tax

⁷⁸⁵117A. (1)An authority, empowered in writingby the Commissioner of Taxes, Director General of Inspection or Director General of Intelligence Cell to verify deduction or collection of tax at source or to enforce the provisions of Chapter VII of this Ordinance, -

(2) An authority empowered under sub-section (1), may be accompanied by experts, valuer or forces as he reasonably thinks fit.

(3) Where any authority empowered under sub-section (1) is obstructed, hindered or unassisted by any person, the person in whose premise or place the authority has entered or intended to enter shall be liable to a penalty not exceeding Taka fifty lakh.

(4) Where a person is found to be in default in respect of compliance of this section or Chapter VII of this Ordinance, the Deputy Commissioner of Taxes shall, after recording explanation of the person so in default or ex parte where no explanation is found, proceed to recover the amount of taxes along with penalties by making an assessment thereof.

Section 118. Retention of seized assets

(1) Where any money, bullion, jewellery or other valuable article or thing (hereinafter referred to as assets) is seized under section 117, the authorised officer shall, unless he himself is the Deputy Commissioner of Taxes, forward a report thereof, together with all relevant papers, to the Deputy Commissioner of Taxes.

(2) Where he has seized any assets under section 117 or, as the case may be, he has received a report under sub-section (1), the Deputy Commissioner of Taxes shall, after giving the person concerned a reasonable opportunity of being heard and making such enquiry as ⁷⁸⁶* * * the ⁷⁸⁷Directors-General of Inspection or the Commissioner may direct, within ninety days of the seizure of the assets, and with the previous approval of the Commissioner-

Provided that if, after taking into account the materials available with him, the Deputy Commissioner of Taxes is of the view that it is not possible to ascertain to which particular income year or years such income or any part thereof relates, he may calculate the tax on such income or part, as the case may be, as if such income or part were the total income chargeable to tax at the rates in force in the financial year in which the assets were seized.

Explanation.-In computing the period of ninety days for the purposes of sub-section (2), any period during which any proceeding under this section is stayed by an order or injunction of any Court shall be excluded.

(3) After completing the proceedings under sub-section (2), the Deputy Commissioner of Taxes shall, with the approval of the Commissioner, make an order requiring the person concerned to pay the aggregate of the amounts referred to in sub-section (2)(b) and (c) and shall, if such person pays, or makes satisfactory arrangement for the payment of, such amounts or any part thereof, release the assets seized under section 117 or such part thereof as he may deem fit in the circumstances of the case.

(4) Where the person concerned fails to pay, or to make satisfactory arrangements for the payment of, any amount required to be paid in pursuance of the order under sub-section (3) or any part thereof, he shall be deemed to be an assessee in default in respect of the amount or part, and the Deputy Commissioner of Taxes may retain in his custody the assets seized under section 117 on any part thereof as are in his opinion sufficient for the realisation of the said amount or, as the case may be, of such part thereof as has not been paid.

(5) If the Deputy Commissioner of Taxes is satisfied that the assets seized under section 117 or any part thereof were held by a person for or on behalf of any other person, he may proceed under this section against such other person, and all the provisions of this section shall apply accordingly.

(6) If any person objects, for any reason, to an order made under sub-section (3), he may, within thirty days of the date of such order, make an application, stating therein the reasons for his objection, to the Commissioner for appropriate relief in the matter; and the Commissioner may, after giving the applicant an opportunity of being heard, pass such orders thereon as he may think fit.

Section 119. Application of retained assets

(1) Where the assets retained under sub-section (4) of section 118 consist solely of money, or partly of money and partly of other assets-

(2) Nothing contained in sub-section (1) shall preclude the recovery of the amount referred to in section 118 (4) by any other mode provided in this Ordinance for the recovery of any liability of an assessee in default.

(3) Any assets or proceeds thereof which remain after the discharge of the liability in respect of the amount referred to in section 118(4) shall forthwith be made over or paid to the persons from whose custody the assets were seized.

Power of Commissioner or Inspecting Joint Commissioner to revise the erroneous order

⁷⁸⁸120. (1) The Inspecting Joint Commissioner may call for and examine the record of any proceeding under this Ordinance if he considers that any order passed therein by the Deputy Commissioner of Taxes is erroneous in so far as it is prejudicial to the interests of the revenue, and may, after giving the assessee an opportunity of being heard, and after making or causing to be made, such inquiry as he thinks necessary, pass such order thereon as in his view the circumstances of the case would justify, including an order enhancing or modifying the assessment or cancelling the assessment and directing a fresh assessment to be made. (2) Where the power of the Deputy Commissioner of Taxes is exercised by a higher income tax authority under the provision of section 10, the proceedings mentioned in sub-section (1) shall be taken by the Commissioner. (3) No order shall be made under sub-section (1) after the expiry of four years from the date of the order sought to be revised. (4) Nothing in section 93 shall bar any proceeding under this section in applicable cases. (5) In this section, an order shall be deemed to be erroneous if, in the opinion of the Commissioner or the Inspecting Joint Commissioner, as the case may be,-

121 [Omitted]

⁷⁸⁹***

Revisional power of Commissioner

⁷⁹⁰121A. (1) The Commissioner may on an application made by the assessee, call for the record of any proceeding under this Ordinance in which an order has been passed by any authority subordinate to him and may make such enquiry or cause such enquiry to be made and, subject to the provisions of this Ordinance, may pass such order thereon, not being an order prejudicial to the assessee, as he thinks fir. (2) The application for revision of an order under this Ordinance passed by any authority subordinate to the Commissioner shall be made within sixty days of the date on which such order is communicated to the assessee or within such further period as the Commissioner may consider fit to allow on being satisfied that the assessee was prevented by sufficient cause from making the application within the said sixty days. (3) The Commissioner shall not exercise his power under sub-section (1) in respect of any order-

(4) No application under sub-section (1) shall lie unless- Explanation.-The “undisputed portion of the tax” means the tax payable under section 74. (5) For the purposes of this section, an order by the Commissioner declining to interfere shall not be construed as an order prejudicial to the assessee. (6) Notwithstanding anything contained in this Ordinance, an application for revision made under sub-section (1) shall be deemed to have been allowed if the Commissioner fails to make an order thereon within a period of sixty days from the date of filing the application. Explanation.-For the purposes of this section, the Appellate Joint Commissioner of Taxes shall be deemed to be an authority subordinate to the Commissioner to whom the Deputy Commissioner of Taxes, whose order was the subject-matter of the appeal order under revision, is subordinate.

Section 122. Power to take evidence on oath, etc.

(1) The Deputy Commissioner of Taxes, the Joint Commissioner of Taxes, the Commissioner ⁷⁹¹,the Director General, Central Intelligence Cell, and the Appellate Tribunal shall, for the purposes of this Ordinance, have the same powers as are vested in a Court under the Code of Civil Procedure, 1908 (Act V of 1908), when trying a suit in respect of the following matters, namely:-

(2) The Deputy Commissioner of Taxes shall not exercise his powers under this section for the purpose of enforcing the attendance of an employee of a scheduled bank as a witness or compelling the production of books of account of such a bank except with the prior approval of the Commissioner.

(3) Any authority mentioned in sub-section (1) may impound and retain in its custody for such period as it considers fit, any books of accounts or other documents produced before it in any proceeding under this Ordinance.

(4) Any proceeding under this Ordinance, before any authority mentioned in sub-section (1), shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Penal Code (Act XLV of 1860).

Penalty for not maintaining accounts in the prescribed manner

⁷⁹²123. (1) Where any person, not having income from house property, has, without reasonable cause, failed to comply with the provisions of any order or rule made in pursuance of, or for the purposes of section 35(2), the Deputy Commissioner of Taxes, may impose upon him a penalty at the rate of a sum not exceeding-

(2) Where any person, having income from house property, has, without reasonable cause, failed to comply with the provisions of any order or rule made in pursuance of, or for the purposes of section 35(2), the Deputy Commissioner of Taxes, ⁷⁹³may impose upon him a penalty of fifty percent of taxes payable on house property income or five thousand taka, whichever is higher.

Penalty for failure to file return, etc.

⁷⁹⁴124. (1) Where any person has, without reasonable cause, failed to file a return of income required by or ⁷⁹⁵under sections 75, 77, 89, 91 or 93, the Deputy Commissioner of Taxes may impose upon such person a penalty amounting to ten per cent of tax imposed on last assessed income subject to a minimum of ⁷⁹⁶taka one thousand, and in the case of a continuing default a further penalty of ⁷⁹⁷taka fifty for every day during which the default continues ⁷⁹⁸ :

Provided that such penalty shall not exceed-

(b in case of an assessee, being an individual, whose income was assessed previously, fifty per cent (50%) of the tax payable on the last assessed income or taka one thousand, whichever is higher.

⁷⁹⁹⁸⁰⁰(2) Where any person has, without reasonable cause, failed to file or furnish any return, certificate, statement or information required under sections 58, 75A, 103A, 108, 108A, 109, or 110, the Deputy Commissioner of Taxes may impose upon such person-

where the return, statement or information under sections 75A, 108 or 108A has not been filed or furnished, a penalty amounting to ten per cent of tax imposed on last assessed income or five thousand taka, whichever is higher, and in the case of a continuing default, a further penalty of one thousand taka for every month or fraction thereof during which the default continues;

(3) Where any person has, without any reasonable cause, failed to furnish information as required under section 113, the income tax authority requiring the information under section 113 may impose a penalty of twenty five thousand taka and in case of a continuing default a further penalty of five hundred taka for each day.

Penalty for using fake Tax-payer's Identification Number

⁸⁰¹124A.-Where a person has, without reasonable cause, used Tax-payer's Identification Number (TIN) of another person or used fake TIN on a return of income or any other documents where TIN is required under this Ordinance, the Deputy Commissioner of Taxes may impose a penalty not exceeding taka twenty thousand on that person.

[Omitted]

⁸⁰²***

Section 125. Failure to pay advance tax, etc.

Where, in the course of any proceeding in connection with the assessment of tax under Chapter IX, the Deputy Commissioner of Taxes is satisfied that any person has-

he may impose upon such person a penalty of a sum not exceeding the amount by which the tax actually paid by him falls short of the amount that should have been paid.

Section 126. Penalty for non-compliance with notice

Where any person has, without reasonable cause, failed to comply with any notice issued under sections 79, 80 ⁸⁰³under sub-section (1) or (2) of section 83, the Deputy Commissioner of Taxes may impose on him a penalty not exceeding the amount of tax chargeable on the total income of such person.

Section 127. Failure to pay tax on the basis of return

Where, in the course of any proceeding under this Ordinance, the Deputy Commissioner of Taxes is satisfied that any person has not paid tax as required by section 74, ⁸⁰⁴***, he may impose upon such person a penalty of a sum not exceeding twenty-five per cent of the whole of the tax or, as the case may be, of such portion of the tax as has not been paid.

Section 128. Penalty for concealment of income

(1) Where, in the course of any proceeding under this Ordinance, the Deputy Commissioner of Taxes, the Appellate Joint Commissioner ⁸⁰⁵, the Commissioner (Appeals) or the Appellate Tribunal is satisfied that any person has, either in the said proceeding or in any earlier proceeding relating to an assessment in respect of the same income year,-

⁸⁰⁶he or it shall impose upon such person a penalty of ⁸⁰⁷fifteen per cent of tax which would have been avoided had the income as returned by such person or, as the case may be, the value of the immovable property as stated by him been accepted as correct ⁸⁰⁸:

⁸⁰⁹Provided that if the concealment referred to in clause (a) and (b) of this sub-section or sub-section (2) is detected after a period of more than one year from the year in which the concealment was first assessable to tax, the amount of penalty shall increase by an additional ⁸¹⁰fifteen per cent for each preceeding assessment year.

(2) For the purpose of sub-section (1), concealment of particulars of income or furnishing of inaccurate particulars of income shall include,-

(2A) [Omitted by section 6 of অর্থ আইন, ১৯৯৯ (১৯৯৯ সনের ১৬ নং আইন).

(3) [Omitted by section 7 of অর্থ আইন, ১৯৯৩ (১৯৯৩ সনের ১৮ নং আইন).]

Section 129. [Omitted]

[Incorrect distribution of income by registered firm.- Omitted by section 6 of অর্থ আইন, ১৯৯৮ (১৯৯৮ সনের ১৪ নং আইন).]

Penalty for incorrect or false audit report by chartered accountant.

⁸¹¹129A. Penalty for incorrect or false audit report by chartered accountant. Where, in the course of any proceeding under this Ordinance, the Deputy Commissioner of Taxes, the Appellate Joint Commissioner, the Commissioner of Taxes (Appeals) or the Appellate Tribunal is satisfied beyond reasonable doubt that the audit report- ⁸¹²(a) is not certified by a chartered accountant to the effect that the accounts are maintained and the statements are prepared and reported in accordance with the Bangladesh Accounting Standards (BAS) and the Bangladesh Financial Reporting Standards (BFRS), and are audited in accordance with the Bangladesh Standards on Auditing (BSA), or

he shall impose upon such chartered accountant a penalty of a sum not less than fifty thousand taka but not more than two lakh taka.

Penalty for furnishing fake audit report

⁸¹³129B. Where, in the course of any proceeding under this Ordinance, the Deputy Commissioner of Taxes, the Appellate Joint Commissioner, the Commissioner (Appeals) or the Appellate Tribunal is satisfied beyond reasonable doubt that any audit report furnished by an assessee along with the return of income or thereafter for any income year is not signed by a chartered accountant or is believed to be false, such authority or the Tribunal, as the case may be, shall impose upon such assessee a penalty of a sum of one lakh taka for that income year.

Section 130. Bar to imposition of penalty without hearing

No order imposing a penalty under this Chapter ⁸¹⁴or Chapter XIA shall be made on any person unless such person has been heard or has been given a reasonable opportunity of being heard.

Section 131. Previous approval of Inspecting Joint Commissioner for imposing penalty

The Deputy Commissioner of Taxes shall not impose any penalty under this Chapter without the previous approval of the Inspecting Joint Commissioner except in the cases referred to in section 124 ⁸¹⁵.

Section 131A. Previous approval of the Board for imposing penalty

[Previous approval of the Board for imposing penalty.- Omitted by section 4 of অর্থ আইন, ১৯৯৬ (১৯৯৬ সনের ১৮ নং আইন).]

Orders of penalty to be sent to Deputy Commissioner of Taxes

⁸¹⁶132. The Appellate Tribunal or any income tax authority, not being the Deputy Commissioner of Taxes himself, making an order imposing any penalty under this Ordinance shall forthwith send a copy of the order to the Deputy Commissioner of Taxes, and thereupon all the provisions of this Ordinance relating to the recovery of penalty shall apply as if such order were made by the Deputy Commissioner of Taxes.

Section 133. Penalty to be without prejudice to other liability

The imposition on any person of any penalty under this Chapter shall be without prejudice to any other liability which such person may incur, or may have incurred, under this Ordinance or under any other law for the time being in force.

Revision of penalty based on the revised amount of income

⁸¹⁷133A. (1) Where a penalty imposed under this Chapter is directly related to the amount of income assessed under the provision of this Ordinance and the amount of income is revised subsequently by an order made under this Ordinance, the Deputy Commissioner of Taxes shall pass an order revising the order of penalty at the time of revising the income. (2) No order of enhancement of penalty shall be made unless the parties affected thereby have been given a reasonable opportunity of being heard. (3) Where, in the case mentioned in sub-section (1), an order of the revision of penalty is not issued despite the fact that the relevant assessment order has been revised, the parties affected can make an application to the Deputy Commissioner of Taxes requesting the revision of the amount of penalty and if no order has been made by within one hundred and eighty days from the receipt of such application, the amount of penalty shall be deemed to have been revised according to the revised amount of income and all the provisions of this Ordinance shall have effect accordingly.

Section 134. Tax to include penalty, interest, etc.

For the purposes of this Chapter, “tax” includes any sum imposed, levied or otherwise payable under this Ordinance as penalty, fine, interest ⁸¹⁸, delay interest, additional amount,, fee or otherwise; and the provisions of this chapter shall accordingly apply to the recovery of any such sum.

Section 135. Notice of demand

(1) Where any tax is payable in consequence of any assessment made or any order passed under or in pursuance of this Ordinance, the Deputy Commissioner of Taxes shall serve upon the assessee (which expression includes any other person liable to pay such tax) a notice of demand in the prescribed form specifying therein the sum payable and the time within which, and the manner in which, it is payable, together with a copy of an assessment order.

⁸¹⁹(1A) Where any amount of tax is refundable in consequence of any order, ⁸²⁰*** the Deputy Commissioner of Taxes shall specify in the notice referred to in sub-section (1) the sum refundable to the assessee together with a copy of an assessment order and a refund voucher unless such refund is set off against tax as per provision of section 152.

⁸²¹(1B) The Deputy Commissioner of Taxes shall not set off without giving the assessee an opportunity of being heard and in that case refund voucher for the amount due for refund, if any, shall be issued within a period not exceeding thirty days from the date of assessment.

(1C) Where the Deputy Commissioner of Taxes fails to issue refund voucher for any refund due to an assessee within the time specified in this section, such failure on the part of the Deputy Commissioner of Taxes shall be construed as misconduct.

(2) Where the assessee upon whom a notice of demand has been issued under sub-section (1) makes an application in this behalf before the expiry of the date of payment specified in the notice, the Deputy Commissioner of Taxes may extend the time for payment or allow payment by instalments subject to such conditions, including payment of interest on the amount payable, as he may think fit in the circumstances of the case.

(3) If the sum payable is not paid within the time specified in the notice of demand issued under sub-section (1) or, as the case may be, within the time as extended under sub-section (2), the assessee shall be deemed to be in default:

Provided that where the assessee has presented an appeal under this Ordinance in respect of the assessment of imposition of the tax or of the amount thereof, ⁸²²the Deputy Commissioner of Taxes shall treat the assessee as not being in default for so long as such appeal is not disposed of.

(4) If, in a case where payment by instalment has been allowed under sub-section (2), the assessee commits default in paying any one of the instalments within the time fixed therefore, the assessee shall be deemed to be in default as to the whole of the amount then outstanding, and the other instalment or instalments shall be deemed to have been due on the same date as the instalment in respect of which default has actually been committed was due for payment.

(5) Where an assessee has been assessed in respect of income arising outside Bangladesh in a country the laws of which prohibit or restrict the remittance of money to Bangladesh, the Deputy Commissioner of Taxes shall not treat the assessee as in default in respect of that part of the tax which is due in respect of such amount of income as cannot, by reason of the prohibition or restriction, be brought into Bangladesh, and shall continue to treat the assessee as not in default in respect of such part of the tax until the prohibition or restriction is removed.

Explanation.-For the purposes of this section, income shall be deemed to have been brought into Bangladesh if it has been or could have been utilized for the purposes of any expenditure actually incurred by the assessee outside Bangladesh or if the income, whether capitalized or not, has been brought into Bangladesh in any form.

Section 136. [Omitted]

[Simple interest on delayed payment.- Omitted by section 5 of অর্থ আইন, ১৯৯৭ (১৯৯৭ সনের ১৫ নং আইন).]

Section 137. Penalty for default in payment of tax

(1) Where an assessee is in default or is deemed to be in default in making payment of tax, the Deputy Commissioner of Taxes may direct that, in addition to the amount of tax in arrears, a sum not exceeding that amount shall be recovered from the assessee by way of penalty.

(2) Where, as a result of any final order, the amount of tax, with respect to the default in the payment of which the penalty was levied, has been wholly reduced, the penalty levied shall be cancelled and the amount of penalty paid shall be refunded.

Section 138. Certificate for recovery of tax

(1) When an assessee is in default or is deemed to be in default in making payment of tax, the Deputy Commissioner of Taxes may forward to the Tax Recovery Officer a certificate for recovery of the tax, under his signature specifying the amount of arrears due from the assessee; and such certificate may be issued notwithstanding that proceedings for recovery of the arrears by any other mode have been taken.

(2) A certificate under sub-section (1) may be forwarded to-

Section 139. Method of recovery by Tax Recovery Officer

(1) Upon receipt of a certificate forwarded to him under section 138, the Tax Recovery Officer shall, notwithstanding anything contained in any other law for the time being in force, proceed, in accordance with the rules made in this behalf by the Board, to recover from the assessee the amount specified in the certificate by one or more of the following modes, namely:-

⁸²³(2) While recovering under sub-section (1) the amount specified in the certificate forwarded to him, the Tax Recovery Officer may also recover in the same manner from the assessee in default, in addition to such amount, any cost and charges, including expenses on the service of any notice or warrant, incurred in the proceedings for the recovery of the tax in arrears.

(3) If the Tax Recovery Officer to whom a certificate is forwarded under section 138 is not able to recover the entire amount by the sale of movable and immovable properties of the assessee within his jurisdiction, but has information that the assessee has property within the jurisdiction of another Tax Recovery Officer, he may send the certificate to such other Tax Recovery Officer or to the Tax Recovery Officer within whose jurisdiction the assessee resides; and the Tax Recovery Officer to whom the certificate has been so sent shall proceed to recover under this Chapter the amount remaining un-recovered as if the certificate was forwarded to him by the Deputy Commissioner of Taxes.

Section 140. Power of withdrawal of certificate and stay of proceeding

(1) Notwithstanding the issue of a certificate for recovery under section 138, the Deputy Commissioner of Taxes shall have power to withdraw, or correct any clerical or arithmetical error in the certificate by sending an intimation to that effect to the Tax Recovery Officer.

(2) Where the order giving rise to a demand of tax for which a certificate for recovery has been issued has been modified in appeal or other proceedings under this Ordinance and, as a consequence thereof, the demand is reduced but the order is the subject-matter of further proceedings under this Ordinance, the Deputy Commissioner of Taxes shall stay the recovery of such part of the amount of the certificate as pertains to the said reduction for the period for which the appeal or other proceedings remain pending.

(3) Where a certificate for recovery has been issued and subsequently the amount of outstanding demand is reduced as a result of appeal or other proceedings under this Ordinance, the Deputy Commissioner of Taxes shall, when the order, which was the subject-matter of such appeal or other proceeding, has become final and conclusive, amend the certificate or withdraw it, as the case may be.

(4) The Deputy Commissioner of Taxes shall communicate to the Tax Recovery Officer any orders of cancellation, correction, stay of proceeding, withdrawal or amendment, as the case may be, of a certificate for recovery.

Section 141. Validity of certificate for recovery not open to dispute

When the Deputy Commissioner of Taxes forwards a certificate for recovery under section 138 to a Tax Recovery Officer, it shall not be open to the assessee to dispute before the Tax Recovery Officer the correctness of the assessment; and the Tax Recovery Officer shall not entertain any objection to the certificate on any ground whatsoever.

Section 142. Recovery of tax through Collector of District

(1) The Deputy Commissioner of Taxes may forward to the Collector of the District in which the office of the Deputy Commissioner of Taxes is situate or the district in which the assessee resides or owns property or carries on business or profession, a certificate under his signature specifying the amount of arrears due from an assessee, and the Collector, on receipts of such certificate shall proceed to recover, from such assessee the amount specified therein as if it were an arrear of land revenue.

(2) Without prejudice to any other powers which the Collector of District may have in this behalf, he shall, for the purposes of recovery of the amount specified in the certificate for recovery forwarded to him under sub-section (1), have the powers which a Civil Court has under the Code of Civil Procedure, 1908 (Act V of 1908), for the purposes of recovery of an amount due under a decree.

(3) The Deputy Commissioner of Taxes may, at any time, recall from the Collector of District a certificate forwarded to him under sub-section (1) and upon such recall, all proceeding commenced in pursuance of the certificate shall abate:

Provided that the recall of a certificate shall not affect any recoveries made by the Collector before the recall as if the certificate had not, to the extent of such recovery, been recalled; nor shall the recall of a certificate issued at any time prevent the recovery, by issue of a fresh certificate, of any amount which was recoverable at the time the certificate so recalled was issued.

Recovery of tax through Special Magistrates

⁸²⁴142A. (1) Without prejudice to the provisions of section 142, the Deputy Commissioner of Taxes may forward to a Magistrate of the First Class, specially empowered in this ⁸²⁵* * * behalf by the Government, hereinafter referred to as the Special Magistrate, in whose territorial jurisdiction the office of the Deputy Commissioner of Taxes is situate, or the assessee resides, or owns property or carries on business or profession, a certificate under his signature specifying the amount of arrears due from the assessee, and the Special Magistrate shall, on receipt of such certificate, proceed to recover from the assessee the amount specified therein as if it were an arrear of land revenue and the Special Magistrate were a Collector of District.

(2) Without prejudice to any other powers of a Collector of District which the Special Magistrate may have in this behalf, he shall, for the purposes of recovery of the amount specified in the certificate for recovery forwarded to him under sub-section (1), have the powers which a Civil Court has under the Code of Civil Procedure, 1908 (Act V of 1908), for the purpose of recovery of an amount due under a decree.

(3) The Deputy Commissioner of Taxes may, at any time, recall from the Special Magistrate a certificate forwarded to him under sub-section (1) and upon such recall, all proceedings commenced in pursuance of the certificate shall abate:

Provided that the recall of a certificate shall not affect any recoveries made by the Special Magistrate before the recall as if the certificate had not, to the extent of such recovery, been recalled; nor shall the recall of a certificate issued at any time prevent the recovery, by issue of a fresh certificate of any amount which was recoverable at the time the certificate so recalled was issued.

Section 143. Other modes of recovery

(1) Notwithstanding the issue of a certificate for recovery of tax under section 138 or section 142, the Deputy Commissioner of Taxes may also recover the tax in the manner provided ⁸²⁶in sub-section (1A) or (2).

⁸²⁷(1A) For the purpose of recovery of tax payable by an assessee which is not disputed in appeal to any appellate forum, the Deputy Commissioner of Taxes may, with the previous approval of the Commissioner, after giving the assessee an opportunity of being heard, stop movement of any goods and services from the business premises of such assessee and also shutdown such business premises till the recovery of the tax referred to above or any satisfactory arrangement has been made for the recovery of such tax.

(2) For the purposes of recovery of any tax payable by an assessee, the Deputy Commissioner of Taxes may, by notice in writing, require any person.-

⁸²⁸“(a) from whom any money or goods is due or may become due to the assessee, or who holds, or controls the receipt or disposal of, or may subsequently hold, or control the receipt or disposal of, any money or goods belonging to, or on account of, the assessee, to –

⁸³⁰(c) who is responsible for supplying gas, electricity, water or any other services to disconnect or discontinue such supply within twenty one days from the date of receipt of such notice.

(3) A person who has paid any sum as required by sub-section (2) (a) shall be deemed to have paid such sum under the authority of the assessee and the receipt by the Deputy Commissioner of Taxes shall constitute a good and sufficient discharge of the liability of such person to the assessee to the extent of the sum specified in the receipt.

(4) A person who has deducted any sum as required by sub-section (2) (b) shall be deemed to have deducted the tax under section 50 and the relevant provisions of Chapter VII shall apply accordingly.

(5) If the person to whom a notice under sub-section (2) is sent fails to make payment or to make deductions in pursuance of the notice, he shall be deemed to be an assessee in default in respect of the amount specified in the notice and proceedings may be taken against him for realisation of the amount as if it were an arrear of tax due from him; and the provisions of this Chapter shall apply accordingly.

(6) The Deputy Commissioner of Taxes may at any time amend or revoke any notice issued under sub-section (2) or extend the time for making any payment in pursuance of such notice.

(7) In any area with respect to which the Commissioner has directed that any arrears may be recovered by any process enforceable for the recovery of an arrear of any municipal tax or local rate imposed under any enactment for the time being in force in any part of Bangladesh, the Deputy Commissioner of Taxes may proceed to recover the amount due by such process.

(8) The Commissioner may direct by what authority any powers or duties incident under any such enactment as aforesaid to the enforcement of any process for the recovery of a municipal tax or local rate shall be exercised or performed when that process is employed under sub-section (7).

Explanation.-For the removal of doubts it is hereby clarified that the several modes of recovery specified in this Chapter are neither mutually exclusive nor affect in any way any other law for the time being in force relating to the recovery of debts due to Government, and it shall be lawful for the Deputy Commissioner of Taxes, if for any special reasons to be recorded by him, to have recourse to any such mode of recovery notwithstanding that the tax due is being recovered from an assessee by any other mode.

Section 144. Agreement to avoid double taxation

(1) The Government may enter into an agreement with the Government of any other country for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income leviable under this Ordinance and under the corresponding law in force in that country, and may, by notification in the official Gazette, make such provisions as may be necessary for implementing the agreement.

(2) Where any such agreement as is referred to in sub-section (1) is made with the Government of any country, the agreement and the provisions made for implementing it shall, notwithstanding anything contained in any other law for the time being in force, have effect in so far as they provide for-

(3) Any agreement made in pursuance of sub-section (1) may include provisions for relief from tax for any period before the commencement of this Ordinance or before the making of the agreement and provisions as to incomes which are not themselves subject to double taxation.

(4) The provisions of the Seventh Schedule shall have effect where an agreement under this section provides that the tax payable under the laws of the country concerned shall be allowed as a credit against the tax payable in Bangladesh.

Section 145. Relief in respect of income arising outside Bangladesh

If any person who is resident in Bangladesh in any year proves to the satisfaction of the Deputy Commissioner of Taxes that, in respect of any income which has accrued or arisen to him during that year outside Bangladesh, he has paid tax, by deduction or otherwise, in any country with which there is no reciprocal arrangement for relief or avoidance of double taxation, the Deputy Commissioner of Taxes may, subject to such rules as the Board may make in this behalf, deduct from the tax payable by him under this Ordinance a sum equal to the tax calculated on such doubly taxed income at the average rate of tax of Bangladesh or the average rate of tax of the said country, whichever is the lower.

Explanation.-The expression “average rate of tax” means the rate arrived at by dividing the amount of tax calculated on the total income by such income.

Section 146. Entitlement to refund

(1) A person, who satisfies the Deputy Commissioner of Taxes or other authority appointed by the Government in this behalf that the amount of tax paid by him or on his behalf, or treated as paid by him or on his behalf, for any year exceeds the amount with which he is properly chargeable under this Ordinance for that year, shall be entitled to a refund of any such excess.

(2) Where the income of the person is included under any provision of this Ordinance in the total income of any other person, such other person alone shall be entitled to a refund under this Chapter in respect of such income.

Section 147. Claim of refund for deceased or disabled persons

Where through death incapacity, insolvency, liquidation or other cause, a person, is unable to claim or receive any refund due to him, his legal representative, or the trustee, guardian or receiver, as the case may be, shall be entitled to claim or receive such refund for the benefit of such person or his estate.

Section 148. Correctness of assessment, etc., not to be questioned

In any claim for refund under this Chapter, it shall not be open to the claimant to question the correctness or validity of any assessment or other matter which has become final and conclusive or to ask for a review of the same, and the claimant shall not be entitled to any relief on any such issue raised except refund of the tax paid in excess.

Section 149. Refund on the basis of orders in appeal

Where, as a result of any order passed in appeal or other proceeding under this Ordinance, refund of any amount becomes due to an assessee, the Deputy Commissioner of Taxes shall, ⁸³¹ refund the amount, unless set off against tax or treated as payment of tax as per provisions of section 152, to ⁸³²the assessee, ⁸³³within sixty days from the date on which the refund has become due without his having to make any claim in that behalf.

Section 150. Form of claim and limitation

(1) Every claim for refund ⁸³⁴ under sections 146 and 147 shall be made in such form and verified in such manner as may be prescribed. (2) [Omitted by section 60 of অর্থ আইন, ২০০২ (২০০২ সনের ১৪ নং আইন).]

Section 151. Interest on delayed refund

Where a refund due to an assessee is not paid within two months of the date of the ⁸³⁵* * * ⁸³⁶claim for refund or refund becoming due consequent upon any order passed in appeal or other proceeding under this Ordinance interest at the rate of ⁸³⁷seven and a half per cent per annum shall be payable to the assessee on the amount of refund from the month following the said two months to the date of issue of the refund.

Section 152. Adjustment of refund against tax

Where, under the provisions of this Ordinance, the Income-tax Act, 1922 (XI of 1922), the Gift-tax Act, 1963 (XIV of 1963), or the Wealth-tax Act, 1963 (XV of 1963), any refund or repayment is found to be due to any person, the amount to be refunded or repaid or any part thereof may be set off against the tax, payable by that person under this Ordinance ⁸³⁸or treated, at the option in writing of that person, as payment of tax payable under section 64 or section 74 thereof.

[Omitted]

152A, 152B, 152C, 152D and 152E [Omitted by section 61 of the Finance Act, 2002 (Act No. XIV of 2000)]

Section 152F. Alternative Dispute Resolution.

(1) Notwithstanding anything contained in Chapter XIX any dispute of an assessee lying with any income tax authority, Taxes Appellate Tribunal or Court may be resolved through Alternative Dispute Resolution (hereinafter referred to as ADR) in the manner described in the following sections of this Chapter and rules made thereunder. (2) Board may, by notification in the official Gazette, specify the class or classes of assessees eligible for ADR or extend the area or areas in which these provisions may be applied.

Section 152G. Commencement of ADR.

The ADR as mentioned in this Chapter shall come into force on such date and in such class or classes of assessees as the Board may determine by notification in the official Gazette.

Section 152H. Definition

For the purposes of this Chapter, unless the context otherwise requires-

Stay of proceeding in case of pending appeal or reference at Appellate Tribunal or High Court Division.

⁸⁴⁰152II. Where an assessee has filed an application for ADR for any income year and for the same income year, the Deputy Commissioner of Taxes has filed an appeal before the Appellate Tribunal or the Commissioner has made a reference before the High Court Division and no decision has been made in that respect by the Appellate Tribunal or High Court Division as the case may be, the proceeding of such appeal or reference shall remain stayed till disposal of the application for ADR.

Section 152I. Application for alternative resolution of disputes.

(1) Notwithstanding anything contained in Chapter XIX an assessee, if aggrieved by an order of an income tax authority, may apply for resolution of the dispute through the ADR process.

(2) An assessee may apply for ADR of a dispute which is pending before any incometax authority, tribunal or court ⁸⁴¹;

⁸⁴²Provided that where any dispute has already been filed in the form of Writ petition shall not be a subject of ADR.

(3) All cases dealt with under sub-section (2) are subject to permission of the concerned income tax authority ⁸⁴³, tribunal or the court, as the case may be:

Provided that after obtaining such permission from the income tax authority, Tribunal or the court and upon granting of such permission, the matter shall remain stayed during the ADR negotiation process.

(4) The application shall be submitted in such form, within such time, accompanied with such fees and verified in such manner as may be prescribed.

(5) The application is to be submitted to the respective Appellate Joint Commissioner of Taxes or Appellate Additional Commissioner of Taxes or Commissioner of Taxes (Appeals) or Taxes Appellate Tribunal, as the case may be.

⁸⁴⁴(5A) The application may also be filed in such electronic, computer readable or machine readable form and in such manner as may be specified by the Board by order in writing.

(6) In the case of a dispute pending before either Division of the Supreme Court, the assessee shall obtain the permission of the court prior to filing an application under sub-section (2), by filing an application before the court which, upon such an application being made before it, may pass an order allowing the matter to proceed to ADR, or otherwise as it deems fit.

Eligibility for application for ADR

⁸⁴⁵152J. An assessee shall not be eligible for application to ADR if he fails to pay tax payable under section 74 where the return of income for the relevant year or years has been submitted.

Section 152K. Appointment of Facilitator and his duties and responsibilities.

For the purposes of resolving a dispute in an alternative way, the Board may select or appoint Facilitator and determine his ⁸⁴⁶fees, duties and responsibilities by rules.

Section 152L. Rights and duties of the assessee for ADR.

(1) Subject to subsection (2), the assessee applying for ADR shall be allowed to negotiate himself personally or alongwith an authorized representative, with the Commissioner's Representative for the concerned dispute under the facilitation and supervision of the Facilitator. (2) The Facilitator may exempt the applicant-assessee from personally attending the negotiation process and may be allowed to represent himself by an authorised representative, if he has sufficient reasons for his absence. (3) While submitting an application for ADR, the applicantassessee shall submit all related papers and documents, disclose all issues of law and facts. (4) The applicant-assessee shall be cooperative, interactive, fair and bonafide while negotiating for resolution. (5) If the applicant-assessee makes any untrue declaration, submits any false document and obtains an order or assessment on that basis, the order or assessment shall be set aside, if so detected, and appropriate legal action be initiated against him. (6) The applicant-assessee shall be liable to pay any taxes, if due as a result of negotiation with the time frame as decided in the ADR.

Section 152M. Nomination and responsibility of the Commissioner's Representative in ADR.

(1) The respective Commissioner of Taxes may nominate any income tax authority subordinate to him, not below the rank of Deputy Commissioner of Taxes to represent him in the negotiation process of the ADR. (2) The representative so nominated under sub-section (1) shall attend the meeting(s) of ADR negotiation process and sign the agreement of such negotiation process, where an agreement is reached.

Section 152N. Procedures of disposal by the Alternative Dispute Resolution.

(1) Upon receiving the application of ADR, the Facilitator shall forward a copy of the application to the respective Deputy Commissioner of Taxes and also call for his opinion on the grounds of the application and also whether the conditions referred to in sections 152I and 152J have been complied with. (2) If the Deputy Commissioner of Taxes fails to give his opinion regarding fulfillment of the conditions within ⁸⁴⁷five working days from receiving the copy mentioned in clause (c) of sub-section (3), the Facilitator may deem that the conditions thereto have been fulfilled. (3) The Facilitator may-

(4) The Facilitator will assist the applicant-assessee and the Commissioner's Representative to agree on resolving the dispute or disputes through consultations and meetings.

Section 152P. Effect of agreement.

(1) Notwithstanding anything contained in any provision of this Ordinance, where an agreement is reached, under sub-section (9) of section 152O, it shall be binding on both the parties and it cannot be challenged in any authority, Tribunal or court either by the assessee or any other income tax authority. (2) Every agreement, concluded under section 152O shall be conclusive as to the matters stated therein and no matter covered by such agreement shall, save as otherwise provided in this Ordinance, be reopened in any proceeding under this Ordinance.

Section 152S. Bar on suit or prosecution.

No civil or criminal action shall lie against any person involved in the ADR process before any court, tribunal or authority for any action taken or agreement reached in good faith.

Section 152O. Decision of the ADR.

(1) A dispute, which is subject to this Ordinance, may be resolved by an Agreement either wholly or in part where both the parties of the dispute accept the points for determination of the facts or laws applicable in the dispute.

(2) Where an agreement is reached, either wholly or in part, between the assessee and the Commissioner's Representative, the Facilitator shall record, in writing, the details of the agreement in the manner as may be prescribed.

(3) The recording of every such agreement shall describe the terms of the agreement including any tax payable or refundable and any other necessary and appropriate matter, and the manner in which any sums due under the agreement shall be paid and such other matters as the Facilitator may think fit to make the agreement effective.

(4) The agreement shall be void if it is subsequently found that it has been concluded by fraud or misrepresentation of facts.

(5) The agreement shall be signed by the assessee and the Commissioner's Representative and the facilitator.

(6) Where no agreement, whether wholly or in part, is reached or the dispute resolution is ended in disagreement between the applicantassessee and the concerned Commissioner's Representative for noncooperation of either of the parties, the Facilitator shall communicate it, in writing recording reasons thereof, within fifteen days from the date of disagreement, to the applicant and the Board, the concerned court, Tribunal, appellate authority and income tax authority, as the case may be, about such unsuccessful dispute resolution.

(7) Where the agreement is reached, recorded and signed accordingly containing time and mode of payment of payable dues or refund, as the case may be, the Facilitator shall communicate the same to the assessee and the concerned Deputy Commissioner of Taxes for compliance with the agreement as per provisions of this Ordinance.

(8) No agreement shall be deemed have been reached if the Facilitator fails to make an agreement within ⁸⁴⁸three months from the end of the month in which the application is filed.

(9) Where there is a successful agreement, the Facilitator shall communicate the copy of the agreement to all the parties mentioned in sub-section (6) within fifteen days from the date on which the Facilitator and the parties have signed the agreement.

Section 152Q. Limitation for appeal where agreement is not concluded.

(1) Notwithstanding anything contained in any provision of this Ordinance, where an agreement is not reached under this Chapter, wholly or in part, the assessee may prefer an appeal-

(2) In computing the period of limitations for filing appeal, the time elapsed between the filing of the application and the decision or order of the ADR shall be excluded. ⁸⁴⁹ Explanation.- For the purpose of this section, “prefer an appeal” means the revival of the appeal with an intimation in writing to the respective appellate authority.

Section 152R. Post verification of the agreement.

(1) The Board may monitor the progress of disposal of the application for ADR in the manner as may be prescribed and ensure necessary support and coordination services. (2) Copies of all agreement or matter of disagreement shall be sent by the Facilitator to the respective Commissioner and Board for verification and ascertainment of whether the agreement is legally and factually correct. (3) After receiving the copy of agreement or matter of disagreement, if it appears to the Board that the alleged agreement is obtained by fraud, misrepresentation or concealment of fact causing loss of revenue, then such agreement shall be treated as void and the matter shall be communicated to the concerned authorities, Tribunal or court for taking necessary action.

Appeal to appellate income tax authority

⁸⁵⁰153. (1) Any person aggrieved by order of an income tax authority regarding the following matters may appeal to the respective appellate income-tax authority-

(2) Subject to sub-section (3), an appeal in the following cases shall be made only to the Commissioner of Taxes (Appeals)- (3) The Board may- (4) No appeal shall lie in respect of an income which is computed as a share of the taxed income. (5) No appeal shall lie against any order of assessment in the following cases-

| (i) Where the return of income was filed | if tax under section 74 has not been paid | | --- | --- | | (ii) Where no return of income was filed | if at least ten per cent of the tax as determined by the Deputy Commissioner of Taxes has not been paid: |

Provided that where the tax on the basis of return has been paid by the appellant before filing the appeal and the appellate income-tax authority is convinced that the appellant was barred by sufficient reason from paying the tax before filing the return, it may allow the appeal for hearing. Explanation.- In this section, appellate income-tax authority means the Commissioner of Taxes (Appeals) or the Appellate Joint Commissioner of Taxes, as the case may be.

Section 154. Form of appeal and limitation

(1) Every appeal under section 153 shall be drawn up in such form and verified in such manner as may be prescribed and shall be accompanied by a fee of ⁸⁵¹two hundred taka.

⁸⁵²(1A) The Board may, by notification in the official Gazette,-

(2) Subject to sub-section (3), an appeal shall be presented within ⁸⁵⁴forty five days,-

(3) The Appellate Joint Commissioner ⁸⁵⁵or the Commissioner (Appeals), as the case may be, may admit an appeal after the expiration of the period of limitation specified in sub-section (2) if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within that period.

Section 155. Procedure in appeal before the Appellate Joint Commissioner 856[or the Commission (Appeals)]

(1) The Appellate Joint Commissioner ⁸⁵⁷or the Commissioner (Appeals) shall fix a day and place for the hearing of the appeal and give notice thereof to the appellant and the Deputy Commissioner of Taxes against whose order the appeal has been preferred.

(2) The appellant and the Deputy Commissioner of Taxes shall have the right to be heard at the hearing of the appeal either in person or by a representative.

(3) The Appellate Joint Commissioner ⁸⁵⁸or the Commissioner (Appeals) may, if he considers it necessary to do so, adjourn the hearing of the appeal from time to time.

(4) The Appellate Joint Commissioner ⁸⁵⁹or the Commissioner (Appeals) may, before or at the hearing of an appeal, allow the appellant to go into any ground of appeal not earlier specified in the grounds of appeal already filed if he is satisfied that the commission of that ground from the form of appeal was not wilful or unreasonable.

(5) The Appellate Joint Commissioner ⁸⁶⁰or the Commissioner (Appeals) may, before or at the hearing of an appeal, make such enquiry as he thinks fit or call for such particulars as he may require respecting the matters arising in appeals or cause further enquiry to be made by the Deputy Commissioner of Taxes.

(6) While hearing an appeal the Appellate Joint Commissioner ⁸⁶¹or the Commissioner (Appeals) shall not admit any documentary material or evidence which was not produced before the Deputy Commissioner of Taxes unless he is satisfied that the appellant was prevented by sufficient cause from producing such material or evidence before the Deputy Commissioner of Taxes.

Section 156. Decision in appeal by the Appellate Joint Commissioner 862[or the Commission (Appeals)]

(1) In disposing of an appeal, the Appellate Joint Commissioner ⁸⁶³or the Commissioner (Appeals) may-

Provided that an order of assessment or penalty shall not be set aside except in a case where the Appellate Joint Commissioner or the Commissioner (Appeals) is satisfied that a notice on the assessee has not been served in accordance with the provisions of section 178.

(2) The Appellate Joint Commissioner ⁸⁶⁵or the Commissioner (Appeals) shall not enhance as assessment or a penalty or reduce the amount of refund unless the appellant has been given a reasonable opportunity of showing cause against such enhancement or reduction.

(3) The order of the Appellate Joint Commissioner ⁸⁶⁶or the Commissioner (Appeals) disposing of an appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for the decision.

(4) Where, as a result of an appeal, any charge is made in the assessment of a firm or an association of persons, the Appellate Joint Commissioner ⁸⁶⁷or the Commissioner (Appeals) may direct the Deputy Commissioner of Taxes to amend accordingly any assessment made on any partner of the firm or any member of the association.

(5) On the disposal of an appeal, the Appellate Joint Commissioner ⁸⁶⁸or the Commissioner (Appeals) shall communicate the order passed by him to the appellant, the Deputy Commissioner of Taxes and the Commissioner ⁸⁶⁹within ⁸⁷⁰thirty days of the passing of such order.

(6) Notwithstanding anything contained in this Ordinance, an appeal to the Appellate Joint Commissioner [or the Commissioner (Appeals)] shall be deemed to have been allowed if the Appellate Joint Commissioner ⁸⁷¹or the Commissioner (Appeals) fails to make an order thereon within ⁸⁷²one hundred and fifty days from the end of the month on which the appeal was filed.

Section 157. Appeal against order of Tax Recovery Officer

Any person aggrieved by an order of the Tax Recovery Officer under section 139 may, within thirty days from the date of service of the order, appeal to the Inspecting Joint Commissioner to whom the Tax Recovery Officer is subordinate, and the decision of the Inspecting Joint Commissioner on such appeal shall be final.

Section 158. Appeal to the Appellate Tribunal

(1) An assessee may appeal to the Appellate Tribunal if he is aggrieved by an order of-

⁸⁷⁴* * *

⁸⁷⁵(2) No appeal under sub-section (1) shall lie against an order of the Appellate Joint Commissioner or the Commissioner (Appeals), as the case may be, unless the assessee has paid ⁸⁷⁶ten percent of the amount representing the difference between the tax as determined on the basis of the order of the Appellate Joint Commissioner or the Commissioner (Appeals), as the case may be, and the tax payable under section ⁸⁷⁷:

Provided that on an application made in this behalf by the assessee, the Commissioner of Taxes, may reduce, the requirement of such payment if the grounds of such application appears reasonable to him ⁸⁷⁸and shall pass such or derin this regardas he thinks fit within thirty days from date of the receipt of such application.

⁸⁷⁹(2A) The Deputy Commissioner of Taxes may, ⁸⁸⁰with the prior approval of the Commissioner of Taxes, prefer an appeal to the Appellate Tribunal against the order of an Appellate Joint Commissioner, or the Commissioner (Appeals) under section 156.

(3) [Omitted by section 63 of অর্থ আইন, ২০০২ (২০০২ সনের ১৪ নং আইন).

⁸⁸¹(4) Every appeal under ⁸⁸²sub-section (1) or sub-section (2A) ⁸⁸³* * * shall be filed within sixty days of the date on which the order sought to be appealed against is communicated to the assessee or to the commissioner, as the case may be:

Provided that the Appellate Tribunal may admit an appeal after the expiry of sixty days if it is satisfied that there was sufficient cause for not presenting the appeal within that period.

(5) An appeal to the Appellate Tribunal shall be in such form and verified in such manner as may be prescribed ⁸⁸⁴and shall, except in the case of an appeal under sub-section (2A) ⁸⁸⁵* * * be accompanied by a fee of ⁸⁸⁶one thousand taka.

⁸⁸⁷(6) The Board may, by notification in the official Gazette,-

Section 159. Disposal of appeal by the Appellate Tribunal

(1) The Appellate Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders on the appeal as it thinks fit.

(2) Before disposing of any appeal, the Appellate Tribunal may call for such particulars as it may require respecting the matters arising in the appeal or cause further enquiry to be made by the Deputy Commissioner of Taxes.

(3) Where, as a result of the appeal, any change is made in the assessment of a firm or association of persons, or a new assessment of a firm or association of person, is ordered to be made, the Appellate Tribunal may direct the Deputy Commissioner of Taxes to amend accordingly any assessment made on any partner of the firm or any member of the association.

(4) The Appellate Tribunal shall communicate its order on the appeal ⁸⁸⁹to the assessee and to the Commissioner within ⁸⁹⁰thirty days from the date of such order.

(5) Save as hereafter provided in this Chapter, the orders passed by the Appellate Tribunal on appeal shall be final.

⁸⁹¹(6) Notwithstanding anything contained in this Ordinance an appeal filed by an assessee to the Appellate Tribunal shall be deemed to have been allowed if the Appellate Tribunal fails to make an order thereon within a period of ⁸⁹²six months from the end of the month in which the appeal was filed ⁸⁹³, and where a case is heard by two members and an additional member is appointed for hearing the case because of the difference of decision of the two members, the period shall be eight months from the end of the month in which the appeal was filed:

Provided that the provisions of this sub-section shall not apply to an appeal filed by an assessee at any time before the 1st day of July, 1991 ⁸⁹⁴:

Provided further that the provisions of this sub-section shall, in relation to an appeal filed by an assessee at any time during the period between the first day of July, 1995 and the thirtieth day of June, 1996 (both days inclusive), have effect as if for the words “two years” the words “three years” were substituted on the day on which section 21 of অর্থ আইন, ১৯৯১ (১৯৯১ সালের ২১ নং আইন)) came into force ⁸⁹⁵:

Provided further that the provisions of this sub-section shall, in relation to an appeal filed by an assessee on or after the first day of July, 1999, have effect as if for the words “two years from the end of the year” the words “two years from the end of the month” were substituted ⁸⁹⁶:

Provided further that the provisions of this sub-section shall, in relation to an appeal filed by an assessee before the first day of July, 2002, have effect as if the words “six months from the end of the month in which appeal was filed” were substituted by the words “one year from the end of the year in which appeal was filed:

Provided further that the appeals filed by the Deputy Commissioner of Taxes on or before the thirtieth day of June, 2002 on which no order was passed by the Appellate Tribunal till that date shall be deemed to have been withdrawn from first of July, 2002

Section 160. Reference to the High Court Division

(1) The assessee or the Commissioner may, ⁸⁹⁷within ninety days from the date of receipt of the order of the Appellate Tribunal communicated to him under section 159, by application in the prescribed form, accompanied, in the case of an application by the assessee, by a fee of ⁸⁹⁸two thousand taka, refer to the High Court Division any question of law arising out of such order ⁸⁹⁹:

⁹⁰⁰Provided that no reference under sub-section (1) shall lie against an order of the Taxes Appellate Tribunal, unless the assessee has paid the following tax at the rate of-

Provided further that the Board may, on an application made in this behalf, modify or waive, in any case, the requirement of such payment.

(2) An application under sub-section (1) shall be in triplicate and shall be accompanied by the following documents, namely:-

(3) Where the assessee is the applicant, the Commissioner shall be made a respondent; and where the Commissioner is the applicant the assessee shall be made a respondent:

Provided that where an assessee dies or is succeeded by another person or is a company which is being wound up, the application shall not abate and may, if the assessee was the applicant, be continued by, and if he was the respondent, be continued against, the executor, administrator or successor or other legal representative of the assessee, or by a against the liquidator or receiver, as the case may be.

(4) On receipt of the notice of the date of hearing of the application, the respondent shall, at least seven days before the date of hearing submit in writing a reply to the application; and he shall therein specifically admit or deny whether the question of law formulated by the applicant arises out of the order of the Appellate Tribunal.

(5) If the question formulated by the applicant is, in the opinion of the respondent, defective, the reply shall state in what particular the question is defective and what is the exact question of law, if any, which arises out of the said order; and the reply shall be in triplicate and he accompanied by any documents which are relevant to the question of law formulated in the application and which were produced before the Deputy Commissioner of Taxes, the Inspecting Joint Commissioner, the Appellate Joint Commissioner ⁹⁰⁵, the Commissioner (Appeals) or the Appellate Tribunal, as the case may be, in the course of any proceedings relating to any order referred to in sub-section (2)(a) or (b).

(6) Section 5 of the Limitation Act, 1908 (IX of 1908), shall apply to an application under sub-section (1).

Section 161. Decision of the High Court Division

(1) Where any case has been referred to the High Court Division under section 160, it shall be heard by a Bench of not less than two judges and the provisions of section 98 of the Code of Civil Procedure, 1908 (V of 1908), shall, so far as may be, apply in respect of such case.

(2) The High Court Division shall, upon hearing any case referred to it under section 160, decide the questions of law raised thereby and shall deliver its judgment thereon stating the grounds on which such decision is founded and shall send a copy of such judgment under the seal of the Court and the signature of the Registrar to the Appellate Tribunal which shall pass such orders as are necessary to dispose of the case in conformity with the judgment.

(3) The costs in respect of a reference to the High Court Division under section 160 shall be in the discretion of the Court.

(4) Notwithstanding that a reference has been made under section 160 to the High Court Division, tax shall be payable in accordance with the assessment made in the case unless the recovery thereof has been stayed by the High Court Division.

Section 162. Appeal to the Appellate Division

(1) An appeal shall lie to the Appellate Division from any judgment of the High Court Division delivered under section 161 in any case which the High Court Division certifies to be a fit one for appeal to the Appellate Division ⁹⁰⁶:

⁹⁰⁷* * *

(2) The provisions of the Code of Civil Procedure, 1908 (Act V of 1908), relating to appeals to the Appellate Division shall, so far as may be, apply in the case of appeals under this section in like manner as they apply in the case of appeals from decrees of the High Court Division:

Provided that nothing in this sub-section shall be deemed to affect the provision of section 161(2) or (4):

Provided further that the High Court Division may, on petition made for the execution of the order of the Appellate Division in respect of any costs awarded thereby, transmit the order for execution to any Court subordinate to the High Court Division.

(3) Where the judgment of the High Court Division is varied or reversed in appeal under this section, effect shall be given to the order of the Appellate Division in the manner provided in section 161 (2) and (4) in respect of a judgment of the High Court Division.

(4) The provisions of sub-section (3) and sub-section (4) of section 161 relating to costs and payment of tax shall apply in the case of an appeal to the Appellate Division as they apply to a reference to the High Court Division under section 160.

Section 163. Statement, returns, etc., to be confidential

(1) Save as provided in this section, all particulars or information contained in the following shall be confidential and shall not be disclosed, namely:-

(2) Notwithstanding anything contained in the Evidence Act, 1872 (I of 1872), or any other law for the time being in force, no Court or other authority shall, save as provided in this Ordinance, be competent to require any public servant to produce before it any return, accounts or documents contained in, or forming a part of, the records relating to any proceeding under this Ordinance or to given evidence before it in respect thereof. (3) The prohibition under sub-section (1) shall not apply to the disclosure of- ⁹⁰⁸ (m) any such facts to any authority exercising power under the Excise and Salt Act, 1944 (I of 1944), the Gift-tax Act, 1963 (XIV of 1963), দান কর আইন, ১৯৯০ (১৯৯০ সনের ২২ নং আইন), the Wealth-tax Act, 1963 (XV of 1963), the Customs Act, 1969 (IV of 1969), the Sales tax Ordinance, 1982 (XVIII of 1982) or ⁹⁰⁹ , মূল্য সংযোজন কর আইন, ১৯৯১ (১৯৯১ সনের ২২ নং আইন) or মূল্য সংযোজন কর ও সম্পূরক শুল্ক আইন, ২০১২ (২০১২ সনের ৪৭ নং আইন) as may be necessary for the purpose of enabling it duly to exercise such powers;

⁹¹¹ (pp) any such information as may be required for the purpose of investigation relating to money laundering and terrorist financing if the information is requested by the authority responsible for giving approval to a prosecution relating to money laundering and terrorist financing;

⁹¹⁴ (r) a list of highest taxpayers or distinguished taxpayers in accordance with rules made or guidelines issued by the board on this behalf; ⁹¹⁵ ;

(s) the particulars of any assessee mentioned in the certificate issued under section 184B to any person or authority mentioned in sub-section (1) of section 184A for the purpose of verifying the authenticity of the twelve-digit Taxpayer’s Identification Number (TIN) ⁹¹⁶ ; or

(t) any information required to furnish under section 108A.

(4) Nothing in this section shall apply to the production by a public servant before a Court of any document, declaration or affidavit filed, or the record of any statement or deposition made in a proceeding under section 90 or 111, or to the giving of evidence by a public servant in respect thereof. (5) Any person to whom any information is communicated under this section, and any person or employee under his control, shall in respect of that information, be subject to the same rights, privileges, obligations and liabilities as if he were a public servant and all the provisions of this Ordinance shall, so far as may be, apply accordingly. (6) This section shall not be construed as prohibiting the voluntary disclosure of any particulars referred to in sub-section (1) by the person by whom the statement was made, return furnished, accounts or documents produced, evidence given or affidavit or deposition made, as the case may be.

Section 164. Punishment for non-compliance of certain obligations

A person is guilty of an offence punishable with imprisonment for a term which may extend to one year, or with fine, or with both, if he, without reasonable cause,-

(a) fails to deduct ⁹¹⁷or collect and pay any tax as required under the provisions of Chapter VII except advance payment of tax or fails to deduct and pay tax as required under section 143(2);

(b) fails to produce, or cause to be produced, on or before the date mentioned in any notice under Chapter VIII, or under section 83, such accounts, documents or statements as are referred to in such notice;

(c) fails to furnish, in due time, the return of income which he is required to furnish under section 75, or by notice given under section 77 or 93;

⁹¹⁸(cc) refuses to furnish such information as may be necessary under section 113;

(d) refuses to permit inspection or to allow copies to be taken in accordance with the provisions of section 114;

(e) fails to afford necessary facilities or to furnish the required information to an income tax authority exercising powers under section 115; ⁹¹⁹***

(ee) fails to comply with the requirement under sub-section (1) of section 116;

(eee) fails to comply with the order made under sub-section (1) of section 116A; or

(f) refuses to permit or in any manner obstructs the exercise of powers under section 117 by an Income tax authority.

Section 165. Punishment for false statement in 920[verifications, etc.]

A person is guilty of an offence punishable with imprisonment for a term which may extend to three years, ⁹²¹but shall not be less than three months or with fine, or with both, if he-

(a) makes a statement in any verification, etc. in any return or any other document furnished under any provisions of this Ordinance which is false ⁹²²* * *;

(b) knowingly and wilfully aids, abets, assists, incites or includes another person to make or deliver a false return, account, statement, certificate or declaration under this Ordinance, or himself knowingly and wilfully makes or delivers such false return, account, statement, certificate or declaration on behalf of another person ⁹²³;

(c) signs and issues any certificate mentioned in the ⁹²⁴proviso of section 82 which he either knows or believes to be false or does not believe to be true ⁹²⁵;

(d) refuses to furnish such information as may be necessary for the purpose of survey under section 115.

Punishment for improper use of Tax-payer's Identification Number

⁹²⁶165A. - A person is guilty of an offence punishable with imprisonment for a term which may extend to three years or with fine up to taka fifty thousand or both, if he deliberately uses or used a fake Tax-payer's Identification Number (TIN) or a Tax-payer's Identification Number (TIN) of another person.

Punishment for furnishing fake audit report

⁹²⁷165AA. A person is guilty of an offence punishable with imprisonment for a term which may extend to three years, but shall not be less than three months, or with fine upto taka one lakh, or both, if he furnishes along with the return of income or thereafter any audited statement of accounts which is false or does not conform with signature of a chartered accountant purported to be signatory to such statement.

Punishment for obstructing an income tax authority.

⁹²⁸165B. A person who obstructs an income tax authority in discharge of functions under this Ordinance shall commit an offence punishable with imprisonment for a term not exceeding one year, or with a fine, or with both.

Punishment for unauthorised employment

⁹²⁹165C. A person is guilty of an offence punishable with imprisonment for a term which may extend to three years, but shall not be less than three months, or with fine up to taka five lakh, or both, if he employs or allows to work any individual not being a Bangladeshi citizen without prior approval from ⁹³⁰appropriate authority of the Government.

Section 166. Punishment for concealment of income, etc.

A person is guilty of an offence punishable with imprisonment which may extend to five years ⁹³¹but shall not be less than three months, or with fine, or with both, if he conceals the particulars, or deliberately furnishes inaccurate particulars, of his income.

Punishment for providing false information, etc

⁹³²166A. A person is guilty of an offence punishable with imprisonment which may extend to three years or with fine, or with both, if he is in possession of any information in relation to an assessee and after being required to furnish the information to an income tax authority under this Ordinance -

(a) conceals the information; or

(b) deliberately furnishes inaccurate information.

Section 167. Punishment for disposal of property to prevent attachment

The owner of any property, or a person acting on his behalf or claiming under him, is guilty of an offence punishable with imprisonment for a term which may extend to five years, or with fine, or with both, if he sells, mortgages, charges, leases or otherwise so deals with the property after the receipt of a notice from the Tax Recovery Officer as to prevent its attachment by that officer.

Section 168. Punishment for disclosure of protected information

A public servant, or any person assisting, or engaged, by any person acting in the execution of this Ordinance, is guilty of an offence punishable with imprisonment for a term which may extend to six months, or with fine, if he discloses any particulars or information in contravention of the provisions of section 163.

Section 169. Sanction for prosecution

(1) No prosecution for an offence punishable under any provisions of this Chapter shall be instituted except with the previous sanction of the Board.

(2) [Omitted by section 6 of অর্থ আইন, ১৯৯৯ (১৯৯৯ সনের ১৬ নং আইন).]

Further enquiry and investigation, etc. for prosecution

⁹³³ 169A. The Deputy Commissioner of Taxes, with prior approval of the Commissioner of Taxes, may make such enquiry and investigation, in addition to the enquiry already made under this Ordinance, as may be necessary for the purpose of prosecution of an offence under this Chapter or a tax related offence (কর সংক্রান্ত অপরাধ) under মানি লন্ডারিং প্রতিরোধ আইন, ২০১২ (২০১২ সনের ৫নং আইন).

Section 170. Power to compound offences

⁹³⁴The Board may, either before or after the institution of any proceedings or prosecution for an offence punishable under this Chapter, compound such offence.

Section 171. Trial by Special Judge

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act V of 1898), or in any other law for the time being in force, an offence punishable under this Chapter, other than an offence under section 168, shall be tried by a Special Judge appointed under the Criminal Law Amendment Act, 1958 (XL of 1958), as if such offence were an offence specified in the Schedule to that Act.

(2) A Special Judge shall take cognizance of, and have jurisdiction to try, an offence triable by him under sub-section (1) only upon a complaint in writing made, after obtaining the sanction under section 169, by the Deputy Commissioner of Taxes-

(a) who is competent to make assessment under this Ordinance in the case to which the offence alleged to have been committed relates, and

(b) whose office is situated within the territorial limits of the jurisdiction of the Special Judge.

Section 172. Relief when salary, etc., is paid in arrear or advance

Where the income of an assessee is assessable at a rate higher than that at which it would otherwise have been assessed by reason of-

(a) any portion of his salary being paid in arrears or in advance, or

(b) his having received in any one financial year salary for more than twelve months, or

(c) his having received a payment which is a profit in lieu of salary, or

(d) his having received in arrears in one income year any portion of his income from interest on securities relatable to more income years than one;

the Deputy Commissioner of Taxes may, on an application made to him in this behalf, determine the tax payable as if the salary, payment or interest had been received by the assessee during the income year or years to which it relates and may refund the amount of tax, if any, paid in excess of the tax so determined.

Place of assessment

⁹³⁵173A. (1) Where an assessee carries on a business, profession or vocation at any place, he shall be assessed by the Deputy Commissioner of Taxes of the area in which that place is situate or, where the business, profession or vocation is carried on in more places than one, by the Deputy Commissioner of Taxes of the area in which the principal place of his business, profession or vocation is situate.

(2) In all other cases, an assessee shall be assessed by the Deputy Commissioner of Taxes of the area in which he resides.

(3) Where any question arises under this section as to place of assessment, such question shall be determined by the Commissioner, or, where the question is between places in areas within the jurisdiction of more Commissioners than one, by the Commissioners concerned, or, if they are not in agreement, by the National Board of Revenue:

Provided that, before any such question is determined, the assessee shall have had an opportunity of representing his views.

(4) No person shall be entitled to call in question the jurisdiction of a Deputy Commissioner of Taxes after he has made the return of total income or where he has not made such return, after the time allowed by the notice served on him for making such return has expired.

Section 173. Correction of errors

⁹³⁶(1) Where an income tax authority or the Appellate Tribunal finds by own motion or based on written application from the assessee or information from any other source that an error apparent from record has been made in any order passed by it, the income tax authority or the Appellate Tribunal may amend the error by order in writing: Provided that no amendment under this sub-section shall be made after the expiration of four years from the date of the order sought to be amended. (1A) Where an assessee, by an application in writing in relation to an assessment year, brings to the notice of the Deputy Commissioner of Taxes of the claim that-

(a) a sum payable under this Ordinance has been paid in amount higher than the due amount, or

(b) the due credit of a sum paid under this Ordinance has not been given,

the Deputy Commissioner of Taxes shall give credit of the amount in the assessment year in which the sum was to be given credit if the claim of the assessee is found valid and correct after due verification.

(2) No amendment under sub-section (1) which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee shall be made unless the parties affected thereby have been given a reasonable opportunity of being heard.

(3) Where any such error as is referred to in sub-section (1) is brought to the notice of the authority concerned by the assessee and no amendment is made by such authority within the financial year next following the date in which the error is brought to its notice, the amendment under that sub-section shall be deemed to have been made so as to correct the error and all the provisions of this Ordinance shall have effect accordingly.

⁹³⁷***

(5) Where in respect of any completed assessment of a partner in a firm it is found on the assessment of the firm or on any reduction or enhancement made in the income of the firm under sections 120, ⁹³⁸121A, 156, 159, 161 or 162 that the share of the partner in the profit or loss of the firm has not been included in the assessment of the partner, or, if included, is not correct, the inclusion of the share in the assessment or the correction thereof, as the case may be, shall be deemed to be correction of an error apparent from the record within the meaning of this section, and the provisions of sub-section (1) shall apply thereto accordingly, the period of four years referred to in sub-section (4) being computed from the date of the final order passed in the case of the firm.

(6) Where as a result of proceedings initiated under section 93, a firm or an association of persons is assessed, and the Deputy Commissioner of Taxes concerned is of opinion that it is necessary to compute the total income of a partner in the firm or a member of the association of persons, as the case may be, the Deputy Commissioner of Taxes may proceed to compute the total income and determine the sum payable on the basis of such computation as if the computation is a correction of an error apparent from the record within the meaning of this section, and the provisions of sub-section (1) shall apply accordingly, the period of four years specified in sub-section (4) being reckoned from the date of the final order passed in the case of the firm or association of persons, as the case may be.

(7) Subject to the provisions of sub-section (3) where an amendment is made under this section, an order shall be passed in writing by the income tax authority concerned or the Appellate Tribunal, as the case may be.

Section 174. Appearance by authorised representative

(1) Any assessee, who is entitled or required to appear before any income tax authority or the Appellate Tribunal in connection with any proceedings under this Ordinance, may, except when required under section 122 to attend personally, appear by an authorised representative.

(2) For the purpose of this section, “authorised representative” means a person, authorised in writing by the assessee to appear on his behalf, being-

⁹³⁹* * *

Provided that such an income tax practitioner shall be a member of any registered Taxes Bar Association.

(3) Notwithstanding anything contained in sub-section (1), the following persons shall not be qualified to represent an assessee under that sub-section, namely:-

Provided that no person shall be disqualified under this sub-clause unless he is given a reasonable opportunity of being heard:

⁹⁴³* * *

⁹⁴⁴Provided further that any person disqualified under this sub-clause may, within one month of his disqualification, appeal to the Government to have the disqualification removed:

Provided further that no disqualification under this sub-clause shall take effect until one month from the date of such disqualification has elapsed or, when an appeal is preferred, until the disposal of the appeal;

Section 175. Tax to be calculated to nearest taka

In the determination of the amount of tax or of a refund payable under this Ordinance, fractions of a taka, less than fifty poisha, shall be disregarded and fractions of a taka equal to or exceeding fifty poisha shall be regarded as one taka.

Section 176. Receipts to the given

A receipt shall be given for any money paid or recovered under this Ordinance.

Section 177. Computation of the period of limitation

(1) In computing the period of limitation prescribed for an appeal or application under this Ordinance, the day on which the order complained of was served, or, if the assessee was not furnished with a copy of the order when the notice of the order was served upon him, the time requisite for obtaining the copy of the order shall be excluded.

(2) Where the period of limitation prescribed for an appeal or application under this Ordinance expires on a day which is a closed holiday, the appeal or application may be made on the day next following such holiday.

Section 178. Service of notice

⁹⁴⁵ (1) A notice, an assessment order, a form of computation of tax or refund or any other document may be served on the person named therein ⁹⁴⁶ by registered post or by sending from the official electronic mail of the sender to the specified electronic mail address of the person or in the manner provided for service of a summons issued by a Court under the Code of Civil Procedure, 1908 (Act V of 1908): Provided that where a notice, an assessment order, a form of computation of tax or refund, or any other document is received by an authorized representative as referred to in section 174, such receipt by the authorized representative, shall be construed as valid service on that person. (1A) [Omitted by section 5 of অর্থ আইন, ১৯৯৭ (১৯৯৭ সনের ১৫ নং আইন).] (2) A notice may be addressed-

(3) The validity of any notice or of the service of any notice shall not be called in question after the return in response to the notice has been filed or the notice has been complied with. ⁹⁴⁷ “(4) In this section-

(a) “electronic mail” shall have the same meaning as assigned to “ইলেকট্রনিক্স মেইল” by তথ্য ও যোগাযোগ প্রযুক্তি আইন, ২০০৬(২০০৬ সনের ৩৯ নং আইন);

(b) “official electronic mail of the sender” means the electronic mail designated by the Board to the income tax authority serving the notice;

(c) “specified electronic mail address of the person” means the

electronic mail address –

(i) that has been mentioned in the return of income of the person submitted for the respective income year;

(ii) that has been specified by a person, in writing, to the income tax authority, as the electronic mail address of such person.

⁹⁴⁸ Explanation.- In this section, “notice” includes order or requisition made or issued under this Ordinance.

System generated notice, order, etc

⁹⁴⁹178A. A notice, order, requisition, certificate, communication, letter or an acknowledgment of receipt generated by computer or electronic system specified by the Board shall have the same meaning and effect of the notice, order, requisition, certificate, communication, letter or an acknowledgment of receipt issued or served under this Ordinance.

Section 178B. Electronic filing, etc

Where any return, statement, application or document is to be filed to an income tax authority or the Taxes Appellate Tribunal under any provision of this Ordinance, the return, statement, application or document may be filed in such electronic, computer readable or machine readable form and manner as may be specified by the Board.]

Section 179. Certain errors not to vitiate assessment, etc.

No assessment, order, notice, warrant or other document made, issued or executed, or purporting to be made, issued or executed, under this Ordinance, shall be void or otherwise inoperative, merely for want of form, or for an error, defect or omission therein, if such want of form, error, defect or omission is not of a substantial nature prejudicially affecting the assessee.

Section 180. Proceeding against companies under liquidation

Notwithstanding anything contained in section 171 of the Companies Act, 1913 (VII of 1913), leave of the Court shall not be required for continuing any proceeding, or commencing any proceeding, under this Ordinance against a company in respect of which a winding up order has been made or provisional liquidator appointed.

Section 181. Indemnity

Every person deducting, retaining or paying any tax in pursuance of this Ordinance in respect of income belonging to another person is hereby indemnified for the deduction, retention or payment thereof.

Section 182. Bar of suits and prosecution, etc.

(1) No suit shall be brought in any Civil Court to set aside or modify any assessment made under this Ordinance.

(2) No suit, prosecution or other proceedings shall lie against any officer of the Government for anything in good faith done or intended to be done under this Ordinance.

Section 183. Ordinance to have effect pending legislative provision for charge of tax

If, on the first day of July in any year provision has not been made by Act of Parliament for the charging of income tax for that year, this Ordinance shall nevertheless have effect until such provision is made, as if the provision in force in the preceding year, or the provision proposed in the bill which may then be before the Parliament, whichever is more favourable to the assessee, were actually in force.

Section 184. [Omitted]

[Restriction on registration of documents.- Omitted by section 8 of অর্থ আইন, ১৯৯২ (১৯৯২ সনের ২১ নং আইন).]

Proof of submission of return required in certain cases

⁹⁵⁰ 184A.  (1) Notwithstanding anything contained in this Ordinance, a person shall be required to furnish a proof of submission of return in the cases mentioned in sub-section (3).

(2) The proof of submission of return shall be-

(a) an acknowledgment receipt of return prescribed by the Board; or

(b) a system generated certificate containing name and Taxpayer’s Identification Number (TIN) of the person and the year for which return has been submitted; or

(c) a certificate issued by the Deputy Commissioner of Taxes containing name and TIN of the person and the year for which return has been submitted.

(3) The proof of submission of return shall be furnished in the cases of –

(i) applying for a loan exceeding Taka five lakh from a bank or a financial institution;

(ii) becoming a director or a sponsor shareholder of a company;

(iii) obtaining or continuing an import registration certificate or export registration certificate;

(iv) obtaining or renewal of a trade license in the area of a city corporation or paurashava;

(v) obtaining registration of co-operative society;

(vi) obtaining or renewal of license or enlistment as a surveyor of general insurance;

(vii) obtaining registration, by a resident, of the deed of transfer, baynanama or power of attorney or selling of a land, building or an apartment situated within a city corporation or a paurashava of a district headquarter or cantonment board, where the deed value exceeds Taka ten lakh;

(viii) obtaining or maintaining a credit card;

(ix) obtaining or continuing the membership of the professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or any other similar profession;

(x) obtaining and retaining a license as a Nikah Registrar under the Muslim Marriages and Divorces (Registration) Act. 1974 (LII of 1974);

(xi) obtaining or continuing the membership of any trade or professional body;

(xii) obtaining or renewal of a drug license, a fire license, environment clearance certificate, BSTI licenses and clearance;

(xiii) obtaining or continuing commercial and industrial connection of gas in any area and obtaining or continuing residential connection of gas in city corporation area;

(xiv) obtaining or continuing a survey certificate of any water vessel including launch, steamer, fishing trawler, cargo, coaster and dumb barge etc., plying for hire;

(xv) obtaining the permission or the renewal of permission for the manufacture of bricks by Deputy Commissioner's office in a district or Directorate of Environment, as the case may be;

(xvi) obtaining the admission of a child or a dependent in an English medium school providing education under international curriculum or english version of national curriculum, situated in any city corporation, district headquarter or paurashava;

(xvii) obtaining or continuing the connection of electricity in a city corporation or cantonment board;

(xviii) obtaining or continuing the agency or the distributorship of a company;

(xix)obtaining or continuing a license for arms;

(xx) opening a letter of credit for the purpose of import;

(xxi) opening postal savings accounts of Taka exceeding five lakhs;

(xxii) opening and continuing bank accounts of any sorts with credit balance exceeding Taka ten lakhs;

(xxiii) purchasing savings instruments (Sanchayapatra) of Taka exceeding five lakhs;

(xxiv) participating in any election in upazilla, paurashava, zilla parishad, city corporation or Jatiya Sangsad;

(xxv) participating in a shared economic activities by providing motor vehicle, space, accommodation or any other assets.

(xxvi) receiving any payment which is an income of the payee classifiable under the head "Salaries" by any person employed in the management or administrative function or in any supervisory position in the production function;

(xxvii) receiving any payment which is an income of the payee classifiable under the head "Salaries" by an employee of the government or an authority, corporation, body or units of the government formed by any law, order or instrument being in force, if the employee, at any time in the income year, draws a basic salary of taka sixteen thousand or more;

(xxviii) receiving any commission, fee or other sum in relation to money transfer through mobile banking or other electronic means or in relation to the recharge of mobile phone account;

(xxix) receiving any payment by a resident from a company on account of any advisory or consultancy service, catering service, event management service, supply of manpower or providing security service;

(xxx) receiving any amount from the Government under the Monthly Payment Order (MPO) if the amount of payment exceeds taka sixteen thousand per month;

(xxxi) registration or renewal of agency certificate of an insurance company;

(xxxii) registration, change of ownership or renewal of fitness of a motor vehicle of any types excluding two and three wheeler;

(xxxiii) releasing overseas grants to a non-government organisation registered with NGO Affairs Bureau or to a Micro Credit Organisation having licence with Micro Credit Regulatory Authority;

(xxxiv) selling of any goods or services by any digital platforms to consumers in Bangladesh.

(xxxv) submitting application for the membership of a club registered under কোম্পানি আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন) and Societies Registration Act, 1860 (Act No. XXI of 1860);

(xxxvi) submitting tender documents by a resident for the purpose of supply of goods, execution of a contract or rendering a service;

(xxxvii) submitting a bill of entry for import into or export from Bangladesh;

(xxxviii) submitting plan for construction of building for the purpose of obtaining approval from Rajdhani Unnayan Kartripakkha (Rajuk), Chittagong Development Authority (CDA), Khulna Development Authority (KDA) and Rajshahi Development Authority (RDA) or other concerned authority in any city corporation or paurashava;

(4) The Board may, by a general or special order, exempt any person from furnishing proof of submission of return.

(5) The person responsible for processing any application or nomination, or approving any license, certificate, membership, permission, admission, agency or distributorship, sanctioning any loan, issuing any credit card, allowing connection or operation, executing registration or making any payment shall not so process, approve, sanction, issue, allow, execute or make payment, as the case may be, unless the proof of submission of return is furnished as required under the provision of sub-section (1) or the person who is required to furnish the proof of submission of return provides a certificate from the Board that he is exempted from furnishing such proof.

(6) The person to whom the proof of submission of return is furnished shall verify the authenticity of it in the manner as may be specified by the Board.

(7) Where the person responsible for processing any application or nomination, or approving any license, certificate, membership, permission, admission, agency or distributorship, sanctioning any loan, issuing any credit card, allowing connection or operation, executing registration or making any payment, as the case may be, fails to comply with sub-sections (5) and (6), shall be deemed to be an assessee in default and be liable to pay a penalty not exceeding Taka ten lakh as imposed by the Deputy Commissioner of Taxes.

(8) No penalty under this section shall be imposed upon a person without giving a reasonable opportunity of being heard.

(9) A person not being an individual shall, instead of furnishing a proof of submission of return, furnish a system generated certificate containing name and Taxpayer’s Identification Number (TIN)–

(a) in the year of incorporation, registration or formation, as the case may be, under any law or instruments having the force of law; and

(b) in the year following the year of incorporation, registration or formation, as the case may be, under any law or instruments having the force of law.

951[Twelve-digit] Tax-payer’s identification number (TIN) in certain documents, etc.

⁹⁵²184AA. The Board may, with the prior approval of the Government and by notification in the official Gazette, specify any class of documents where a ⁹⁵³twelve-digit Taxpayer’s Identification Number (TIN) is to be mentioned.

Tax-payer’s identification number

⁹⁵⁴184B.⁹⁵⁵(1) Every assessee or any person who applies manually or electronically for a Taxpayer’s Identification Number will be issued a certificate containing twelve-digit Taxpayer’s Identification Number and such other particulars in such manner as may be prescribed:

Provided that twelve-digit Tax-payer’s Identification Number may be issued without any application where any income tax authority has found a person having taxable income during the year and possesses such necessary information of that person for issuance of twelve-digit Tax-payer’s Identification Number.

(2) Board may, by general or special order in writing, direct any person or classes of persons who already hold a Tax-payer's Identification Number to furnish such information or documents for the purpose of re-registration and thereafter issue ⁹⁵⁶twelve-digit a new Taxpayer's Identification Number.

⁹⁵⁷(3) Every existing assessee having ten-digit Tax-payer’s Identification Number or a Temporary Registration Number (TRN) shall have to obtain twelve-digit Tax-payer’s Identification Number (TIN) before the last date of submission of return of income as required under section 75.

Tax collection account number

⁹⁵⁸184BB. Every person required to deduct or collect tax under Chapter VII of this Ordinance shall be given a tax collection account number in such manner as may be prescribed.

959[omitted]

⁹⁶⁰***

Issuance of Temporary Registration Number (TRN).

⁹⁶¹184BBBB. Temporary Registration Number (TRN) may be given to a person who has been found having taxable income in any year and has failed to apply for Tax-payer's Identification Number (TIN) under section 184B.

⁹⁶²Explanation.- For the removal of doubts, it is hereby declared that nothing in this Ordinance shall limit the authority of the Deputy Commissioner of Taxes in imposing the liability to pay any sum under this Ordinance on a person who has been given a Temporary Registration Number (TRN) for the reason that the person has failed to apply for the Tax-payer's Identification Number (TIN).

Displaying proof of submission of return

⁹⁶³184C. (1) An assessee having income from business or profession shall submit his return of income as required in section 75 and display the proof of submission of return as defined in section 184A at a conspicuous place of such assessee's business premises.

(2) Where an assessee fails to comply with the provision of sub-section (1), he shall be liable to pay a penalty of Taka not less than five thousand and not exceeding twenty thousand as imposed by the Deputy Commissioner of Taxes empowered to this end.

Requirement of mentioning twelve-digit Taxpayer’s Identification Number in certain documents.

⁹⁶⁴184CC. Notwithstanding anything contained in any other law for the time being in force where any document relating to the transfer of land, building or apartment situated within a city corporation, or cantonment board, or a paurashava of a district headquarters, deed value of which exceeds taka one lakh and required to be registered under the Registration Act, 1908 (XVI of 1908), such document shall contain twelve-digit Taxpayer’s Identification Number of both the seller and the purchaser.

Reward to officers and employees of the Board and its subordinate income tax offices 965[* * *]

⁹⁶⁶184D.- (1) Notwithstanding anything contained in this Ordinance or any other law for the time being in force, the Board may, in such manner and in such circumstances and to such extent as may be prescribed, grant reward to the following persons :-

(a) an officer or employee of the Board and its subordinate tax offices for outstanding performance ⁹⁶⁷, collection of taxes and detection of tax evasion;

(b) any other person for furnishing information leading to detection of tax evasion.

(2) The Board may, in addition to the reward mentioned in sub-section (1), grant reward to officers and employees of the Board and its subordinate tax offices for a financial year for collecting of revenue in excess of the revenue target as may be prescribed.

Assistance to income tax authorities

⁹⁶⁸184E.- All officers and staff of government and semi-government organizations, law enforcement agencies, autonomous bodies, statutory bodies, financial institutions, educational institutions, private organizations, local government and non-government organizations shall assist the income tax authorities in the discharge of their functions under this Ordinance.

Ordinance to override other laws.

⁹⁶⁹184F. Notwithstanding anything contained in any other law for the time being in force, the provisions of this Ordinance or any proceedings thereunder shall prevail over any other law in respect of ⁹⁷⁰the imposition and the collection of tax, the exemption of any income from tax, the reduction of the rate of tax, the calling for any information for the purpose of taxation, and the protection of information under this Ordinance.

Power to condone or extend, etc

⁹⁷¹184G.  (1) Notwithstanding anything contained contrary to any provision of this Ordinance, the Board may, with prior approval of the Government, by an order, and in public interest,—

(a) condone the period of epidemic, pandemic, or any other acts of God, and war in computing the time limits specified in any provision of this Ordinance; or

(b) extend the time limits specified in any provision of his Ordinance to such extent as the Board may think fit, due to such epidemic, pandemic, or any other acts of God, and war.

(2) The order under sub-section (1) may be issued with retrospective effect.

Section 185. Power to make rules

(1) The Board may, by notification in the Official Gazette, make rules for carrying out the purposes of this Ordinance; and any such rules may, in so far as they do not impose, or have the effect of imposing, any criminal liability, be given retrospective effect.

(2) In particular, and without prejudice to the generality of foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) the ascertainment and determination of the classification of any income in respect of which the provisions of this Ordinance are not clear;

(b) the manner ⁹⁷², extentand scope in which, and the procedure by which, the income and the tax payable thereon shall be determined in the case of-

(i) non-residents, and

(ii) income derived in part from agriculture and in part from business;

(c) the ascertainment and determination of any income or class of income to be included in the total income of an assessee;

(d) the determination of the value of any perquisites and benefits and of the allowances permissible under this Ordinance in respect of any head of income or total income;

(e) the procedure for the grant of exemption of income of industrial undertakings or tourist industries and any other matter connected with or incidental thereto;

(f) the manner in which, and the procedure by which, self-assessment may be made;

(g) the procedure for, and any other matter connected with or incidental to, the issue of exemption certificate or tax clearance certificate under section 107;

(h) the procedure to be followed on application for refund;

(i) registration of income tax practitioners, qualifications for registration conditions and limitations subject to which income-tax practitioners may act as authorised representative under this Ordinance, cancellation of registration or other disciplinary measures in respect of income tax practitioners;

(j) fees and other charges to be paid in respect of any services rendered or in respect of any matter for which fees and charges are payable under this Ordinance; and

(k) any other matter which is to be provided for by rules, or which is to be or may be prescribed under this Ordinance.

(3) In cases coming under sub-section (2)(b), the rules may prescribe methods by which an estimate of such income may be made, and prescribe the proportion which shall be deemed to be income classifiable under the head “Agricultural income” or “income from business or profession”, and an assessment based on such estimate or proportion, as the case may be, shall be deemed to be duly made in accordance with the provisions of this Ordinance.

(4) The power to make rules under this section shall, except on the first occasion of the exercise thereof, be subject to the condition of previous publication ⁹⁷³:

Provided that where previous publication of the draft of any proposed rules or of any amendment to any existing rules is made pursuant to the provisions of this sub-section, giving therewith a notice soliciting objections and suggestions to such draft within the period specified in the notice and if no objection or suggestion is received within the period specified, the previous publication of such draft shall be deemed to be the final publication of the proposed rules or amendment, as the case may be.

Power to issue circular, clarification, etc

⁹⁷⁴185A. The Board may, by order, issue circular, clarification, explanation and directives relating to the scope and application of any provision under this Ordinance and the rules and orders made thereunder.

Section 186. Repeal and savings

(1) The Income-tax Act, 1922 (XI of 1922) is hereby repealed.

(2) Notwithstanding the repeal, the Income tax Act, 1922 (XI of 1922), and the rules made thereunder, shall continue to apply, as if that Act had not been repealed,-

(a) to any income of, or relatable to, any period prior to the commencement of this Ordinance; and

(b) to any notice issued, or any assessment, order, application or appeal made, any proceedings commenced or any prosecution instituted, under that Act.

(3) Save as provided in sub-section (2), the repeal under sub-section (1) and enactment of this Ordinance shall, for the purposes of the General Clauses Act, 1897 (X of 1897), be deemed to be repeal and re-enactment of the Income-tax Act, 1922 (XI of 1922).

Section 187. Removal of difficulties

(1) If any difficulty arises in giving effect to any of the provisions of this Ordinance, the Government may, by notification in the official Gazette, make such provisions as it thinks fit for removing that difficulty.

(2) No notification under this section shall be issued after the thirtieth day of June, 1988.