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[Section Index]

The Finance Order, 1972 (President's Order)

( ACT NO. 77 Of 1972 )

Income Tax and Super Tax
9. (1) Subject to the provisions of subsections (2), (3), (4), and (5) in making any assessment for the year beginning on the first day of July, 1972-
 
 
(a) income-tax shall be charged at the rates specified in Part I of the Third Schedule, and
 
 
(b) the rates of super-tax shall, for the purposes of section 55 of the Income-Tax Act, 1922 (XI of 1922), be those specified in Part II of the Third Schedule.
 
 
(2) In making any assessment for the year beginning on the first day of July, 1972,-
 
 
(a) Where the total income of an assessee, not being a company, includes any income chargeable under the head “salaries” or any income chargeable under the head “interest securities”, the income-tax payable by the assessee on that part of his total income which consists of such inclusion shall be an amount bearing to the total amount of income-tax payable according to the rates applicable under the operation of the Finance (1971-72) Order, 1972, on his total income the same proportion as the amount of such inclusion bears to his total income;
 
 
(b) Where the total income of a Company includes any profits and gains from life insurance business, the super-tax payable by the company shall be reduced by an amount equal to 12.5 per cent of that part of its total income which consists of such inclusion; and
 
 
(c) Where the total income of an assessee, not being a company, include any profits and gains from life insurance business, the income-tax and super-tax payable by the assessee on that part of his total income which consists of such inclusion shall be an amount bearing to the total amount of such taxes payable on his total income according to rates applicable under the operation of the Finance Act, 1942 (XII of 1942), the same proportion as the amount of such inclusion bears to his total income so however that the aggregate of the taxes, so computed in respect of such inclusion shall not, in any case, exceed the amount of tax payable on such inclusion at the rate of 30 per cent.
 
 
(3) In making any assessment for the year beginning on the first day of July, 1972, where the assessee is a co-operative society, the tax shall be payable at the rates specified in paragraph A of Part I, or paragraph B of Part I and paragraph A of Part II of the Third Schedule as if the assessee were a company to which the proviso to sub-paragraph (1) of paragraph A of the said Part II applied, whichever treatment is more beneficial to the assessee:
 
 
Provided that in calculating for the purposes of this sub-section, the amount of income-tax at the rates specified in paragraph A of Part I of the Third Schedule, no deduction in respect of any allowance or sums referred to in clause (i) of the proviso to the said paragraph shall be made.
 
 
(4) (a) In making any assessment for the year beginning on the first day of July, 1972, where the total income of an assessee, not being a company, to which the proviso to sub-paragraph (i) of paragraph A of Part II of the Third Schedule does not apply, includes any profits and gains derived from the export of goods out of Bangladesh, income-tax and super-tax, if any, payable by him in respect of such profits and gains shall, subject to the provisions of clauses (b) and (c) be reduced by an amount computed in the manner specified hereunder:-
Amount

(i) Where the goods exported abroad had not been manufactured by the assessee who exported them.

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15 per cent of the income-tax and super-tax, if any, attributable to export sales.

(a)   and where the export sales during the relevant year exceed the export sales of the preceding year.

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Plus an additional 1 per cent for every increase of 10 per cent in export sales over those of the preceding year, subject to an overall maximum of 25 per cent

(b)  and where the export sales during the relevant year do not exceed the export sales of the preceding year.

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Minus 1 per cent for every decrease of 10 per cent in export sales over those of the preceding year, subject to an overall minimum of 10 per cent

(ii) Where the goods exported had been manufactured by assessee who had exported them :

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(a)   Where the export sales do not exceed 10 per cent of the total sales.

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Nil.

(b)   Where the export sales exceed 10 per cent but do not exceed 20 per cent of the total sales.

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15 per cent of the income-tax and super-tax, if any, attributable to export sales.

(c)   Where the export sales exceed 20 per cent but do not exceed 30 per cent of the total sales.

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20 per cent of the income-tax and super-tax, if any, attributable to export sales.

(d)   Where the export sales exceed 30 per cent of the total sales.   25 per cent of the income-tax and super-tax, if any, attributable to export sales.
     

            Provided that in the case of a registered firm super-tax payable by it under paragraph C of part II of the Third Schedule shall be reduced under this clause by an amount calculated on the basis of the income-tax payable on its total income under paragraph A of part I had it been the total income of an unregistered firm;

 

(b)   Nothing contained in clause (a) shall apply in respect of the following goods or class or goods, namely :

 

(i)    tea,

 

(ii)   raw cotton,

 

(iii) raw jute,

 

(iv) jute manufacture,

 

(v)   such other goods as may be notified by the National Board of Revenue from time to time;

 

(c)   The National Board of Revenue may make rules providing for the computation of profits and the tax attributable to export sales and for such other matters as may be necessary to give effect to the provisions of this sub-section.

 

            (5) In cases to which section 17 of the Income-tax Act, 1922 (XI of 1922) applies, the tax chargeable shall be determined as provided in that section, but with reference to the rates imposed by sub-section (1), and in accordance, where applicable, with the provisions of sub-section (2).

 

            (6) For the purposes of making deduction of tax under section 18, the rates specified in part I and part II of the Third schedule shall apply as respects the year beginning on the first day of July, 1972 and ending on the thirtieth day of June, 1973.

 

            (7) For the purposes of this section and of the rates of tax imposed thereby, the expression “total income” means total income as determined for the purposes of income-tax or super-tax, as the case may be, in accordance with provisions of the Income-tax Act, 1922 (XI of 1922); and the expression “public company” means a company-

 

(i)    in which not less than fifty per cent of the shares are held by the Government, or

(ii)           whose shares were the subject of dealings in a registered stock exchange in the taxable territories at any time during the previous year and remained listed on the stock exchange till the close of that year.

 

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