44. (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.

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

(a) tax shall not be payable by an assessee in respect of any income or any sum specified in paragraphs 15 and 16 of the said Part B; and

²[³[(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]

 

(c) the “eligible amount” mentioned in clause (b) shall be the lesser of-

(i) the sums specified in all paragraphs excluding paragraphs 15 and 16 of Part B of the Sixth Schedule; or

(ii) ⁴[20%] of the total income excluding any income for which a tax exemption or a reduced rate is applicable under sub-section (4) of section 44 or any income from any source or sources mentioned in clause (a) of sub-section (2) of section 82C; or

(iii) one crore ⁵[***] taka.”;].

⁶[***]

Provided that the amount admissible under clause (a) shall not, under any circumstances, exceed ⁷[thirty per cent] of the total income of the assessee.]

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

(a) make such amendments by way of addition, omission, alteration or qualification in the Sixth Schedule as it may deem fit; and

(b) make any exemption, reduction in rate or other modifications in respect of tax in favour of any class of income or in regard to the whole or any part of the income of any class of persons ⁸[.***]

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

¹⁰[(a) the income of a person for the relevant income year shall not be-

(i) exempted from tax; or

(ii) subject to reduced rate of tax;

in an assessment year if the person fails to-

(i) submit the return of income as required under section 75; or

(ii) comply with any provision of Chapter VII of this Ordinance; or

(iii) receive all the receipts from the sources, income from which is subject to tax exemption or reduced rate of tax, through bank transfer:

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.]

(b) any disallowance of expenditure under section 30, in calculating the income of a source or of a person that is exempted from tax or is subject to a reduced rate of tax, shall be treated as income for that source or of that person, as the case may be, and tax shall be payable on such income at the regular rate.]

45. (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- (a) if the undertaking is set up in such areas as the Board may, by notification in the official Gazette, specify to be “Special Economic Zone”, for a period of twelve years beginning with the month of commencement of commercial production of the undertaking; (b) if the undertaking is set up in such areas as the Board may, by notification in the official Gazette, specify in this behalf, for a period of nine years beginning with the month of commencement of commercial production of the undertaking; and (c) in other areas, for a period of five years beginning with the month of such commencement. Explanation.- For the purposes of this section, “industrial undertaking” includes expansion of an existing undertaking if such expansion constitute- (a) an identifiable unit for production of similar or other goods or class of goods; or (b) a similar unit carrying on an identifiable industrial process, but does not include an undertaking which is formed by splitting up or reconstruction of an existing business or by the transfer of machinery or plant of an existing business in Bangladesh to a new business. (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:- (a) that the said undertaking is owned and managed by- (i) a body corporate established by, or in pursuance of, an Act of Parliament with its head office in Bangladesh; or (ii) a company registered under the Companies Act, 1913 (VII of 1913), with its registered office in Bangladesh and having a subscribed and paid up capital of not less than one lakh taka on the date of commencement of commercial production; (b) that the said undertaking belongs to such class of industry as the Board may, by notification in the official Gazette, specify for the purposes of this section; (c) that a part of the income exempted under this section is reinvested in the said undertaking or is invested in the purchase of bond issued by the Government and such reinvestment or investment is not- (i) less than fifteen per cent of such income, if it is an undertaking set up in the areas referred to in sub-section (1) (a) and (b); and (ii) less than thirty per cent in other areas; (d) that the said undertaking is approved and, during the relevant income year, stands approved by the Board for the purposes of this section; (e) that the application in the prescribed form for approval for the purposes of this section, as verified in the prescribed manner, is made to the Board within one hundred and twenty days from the date of commencement of commercial production: 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. ¹¹[(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, ¹²[1995] (both days inclusive), shall be exempt from the tax payable under this Ordinance for the period specified below- (a) if the undertaking is set up in such areas as the Board may, by notification in the official Gazette, specify to be “Special Economic Zone”, for a period of twelve years beginning with the month of commencement of commercial production of the undertaking; (b) if the undertaking is set up in such areas as the Board may, by notification in the official Gazette, specify to be “Least Developed Areas”, for a period of nine years beginning with the month of commencement of commercial production of the undertaking; (c) if the undertaking is set up in such areas as the Board may, by notification in the official Gazette, specify to be “Less Developed Areas”, for a period of ¹³[seven years] beginning with the month of commencement of commercial production of the undertaking; and (d) if the undertaking is set up in the city of Dhaka, Chittagong or Khulna or the municipality of Narayanganj, or within ten miles from the outer limits thereof, for a period of ¹⁴[five years] beginning with the month of commencement of commercial production of the undertaking. (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:- (a) that the said undertaking is owned and managed by- (i) a body corporate established by, or in pursuance of, an Act of Parliament with its head office in Bangladesh; or (ii) a company registered under ¹⁵[the Companies Act, 1913 (VII of 1913) or 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 one lakh taka on the date of commencement of commercial production; (b) that the said undertaking belongs to such class of industry as the Board may, by notification in the official Gazette, specify for the purpose of this sub-section; ¹⁶[ ¹⁷[* * *] (cc) that a part of the income exempted under sub-section (2A) is invested, ¹⁸[during the period, or within one year from the end of the period,] to which the exemption under that sub-section relates, in the said undertaking or in any new industrial undertaking or in any productive assets being stocks and shares of a public company or bonds or securities issued by the Government and such investment is not less than ¹⁹[thirty per cent] of such income, 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 ²⁰[: 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;]] (d) that the said undertaking is approved and, during the relevant income year, stands approved by the Board for the purposes of this section; (e) that the application in the prescribed form for approval for the purposes of this section, as verified in the prescribed manner, is made to the Board within ²¹[one hundred and eighty days] from the date of commencement of commercial production: Provided that the Board may admit an application after the expiry of the said period of ²²[one hundred and eighty days] if it is satisfied that there was sufficient cause for not making the application within the said period.] ²³[(2C) The Board shall give its decision on an application made under clause (e) of sub-section (2B) within ²⁴[three 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: ²⁵[Provided 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:- (a) any dividend paid, credited or distributed or deemed to have been paid, credited or distributed by a company to its share-holders out of the profits and gains exempt from tax under this section; and (b) any income of the said undertaking classifiable as “Capital gains” chargeable under the provisions of section 31. (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. ²⁶[(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.]

46. (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- (a) if the industry is set up in such areas as the Board may, by notification in the official Gazette, specify to be “Special Economic Zone”, for a period of twelve years beginning with the commencement of its commercial service; (b) if the industry is set up in the cities of Dhaka, Chittagong, Khulna and Rajshahi and the areas within fifteen miles from the outer municipal limits of those cities, for a period of five years beginning with the month of commencement of its commercial service; and (c) in other areas, for a period of seven years beginning with the month of such commencement. 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, ²⁷[hunting 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:- (a) that the said industry is owned and managed by a Bangladeshi company having a subscribed and paid up capital of not less than one lakh taka on the date of commencement of its commercial service; (b) that the said industry shall have such service facilities as the Board may, by notification in the official Gazette, specify in this behalf; (c) that a part of the income, profits and gains derived from the said industry exempted under sub-section (1) is reinvested in it or is invested in the purchase of bond issued by the Government, and such reinvestment or investment is not- (i) less than thirty per cent, if it is an industry set up in the areas referred to in sub-section (1) (b); and (ii) less than fifteen per cent, in other areas; (d) that an application in the prescribed form for approval for the purposes of this section, as verified in the prescribed manner, is made to the Board within one hundred and twenty days of the date of commencement of commercial service; (e) that the said industry is approved and, during the relevant income year, stands approved by the Board for the purposes of this section. ²⁸[(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, ²⁹[2000] (both days inclusive), shall be exempt from the tax payable under this Ordinance, for the period specified below- (a) if the industry is set up in such areas as the Board may, by notification in the official Gazette, specify to be “Special Economic Zone”, for a period of twelve years beginning with the month of commencement of its commercial service; (b) if the industry is set up in such areas as the Board may, by notification in the official Gazette, specify to be “Least Developed Areas”, for a period of nine years beginning with the month of commencement of its commercial service; (c) in the industry is set up in such areas as the Board may, by notification in the official Gazette, specify to be “Less Developed Areas”, for a period of ³⁰[seven years] beginning with the month or commencement of its commercial service; and (d) if the industry is set up in the city of Dhaka, Chittagong or Khulna or the municipality of Rajshahi, or within fifteen miles from the outer limits thereof, for a period of ³¹[five years] beginning with the month of commencement of its commercial service. (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:- (a) that the said industry is owned and managed by a Bangladeshi company having a subscribed and paid up capital of not less than one lakh taka on the date of commencement of its commercial service; (b) that the said industry shall have such service facilities as the Board may, by notification in the official Gazette, specify in this behalf; ³²[ ³³[* * *] (cc) that a part of the income exempted under sub-section (2A) is invested, ³⁴[during the period, or within one year from the end of the period], to which the exemption under that sub-section relates, in the said undertaking or in any new industrial undertaking or in any productive assets being stocks and shares of a public company or bonds or securities issued by the Government and such investment is not less than ³⁵[twenty five per cent] of such income, 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 ³⁶[: 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;]] (d) that an application in the prescribed form for approval for the purposes of this section as verified in the prescribed manner, is made to the Board within ³⁷[one hundred and eighty days] of the date of commencement of commercial service; (e) that the said industry is approved and, during the relevant income year, stands approved by the Board for the purposes of this section.] ³⁸[(2C) The Board shall give its decision on an application made under clause (d) of sub-section (2B) within ³⁹[three 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:- (a) any dividend paid, credited or distributed or deemed to have been paid, credited or distributed by a company to its shareholders out of the profits and gains exempt from tax under this section; and (b) any income of the said industry classifiable as “Capital gains” chargeable under the provisions of section 31. (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. ⁴⁰[(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.]

⁴¹[46A. (1) Subject to the provisions of this Ordinance, ⁴²[profits 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 ⁴³[June, 2008] (both days inclusive) shall be exempt from the tax payable under this Ordinance for the period specified below-

(a) if the said undertaking is set-up in ⁴⁴[Dhaka and Chittagong divisions], excluding the hill districts of Rangamati, Bandarban and Khagrachari, for a period of ⁴⁵[four] years beginning with the month of commencement of commercial production or operation of the said undertaking;

(b) if the said undertaking is set-up in ⁴⁶[Rajshahi, Khulna, Sylhet and Barisal divisions] and the hill districts of Rangamati, Bandarban and Khagrachari, for a period of ⁴⁷[six] years beginning with the month of commencement of commercial production or operation of the said undertaking.

⁴⁸[* * *]

⁴⁹[(1A) industrial undertaking, tourist industry, or physical infrastructure facility does not include expansion of an existing undertaking for the purpose of this section,-

(i) “industrial undertaking” means an industry engaged in the production of textile, textile machinery, high value garments, pharmaceuticals, melamine, plastic products, ceramics, sanitary ware, steel from iron ore, fertilizer, insecticide & pesticide, computer hardware, petro-chemicals, basic raw materials of drugs, chemicals, pharmaceuticals, agricultural machine, ship building, boilers, compressors and any other category of industrial undertaking as the Government may by notification in the official Gazette specify.

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

(ii) “physical infrastructure facility” means sea or river port, container terminals, internal container depot, container freight station, LNG terminal and transmission line, CNG terminal and transmission line, gas pipe line, flyover, large water treatment plant & supply through pipe line, waste treatment plant, ⁵⁰[solar energy plant,] export processing zone and any other category of physical infrastructure facility as the Government may by notification in the official Gazette specify;

(iii) “tourist industry” means residential hotel having facility of three star or more and any other category of tourist industry facility as the Government may by notification in the official Gazette specify.]

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

(a) that the said undertaking is owned and managed by-

(i) a body corporate established by or under an Act of Parliament with its head office in Bangladesh; or

(ii) a company as defined in the Companies Act, 1913 (VII of 1913) or 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 one lakh taka on the date of commencement of commercial production or operation;

⁵¹[* * *]

⁵²[(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 ⁵³[:

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.]

(d) that the said undertaking is not formed by splitting up or by reconstruction or reconstitution of business already in existence or by transfer to a new business of any machinery or plant used in business which was being carried on in Bangladesh at any time before the commencement of the new business;

(e) that the said undertaking is approved, and during the relevant income year, stands approved by the Board for the purposes of this section;

(f) that the application in the prescribed form for approval for the purposes of this section, as verified in the prescribed manner, is made to the Board ⁵⁴[within six months from the end of the month] of commencement of commercial production or operation.

⁵⁵[(2A) Notwithstanding anything contained in this section-

(a) where a said 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

(b) 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 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 ⁵⁶[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 ⁵⁷[: 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”:

⁵⁸[Provided 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:-

(a) any dividend paid, credited or distributed or deemed to have been paid, credited or distributed by a company to its share-holders out of the profits and gains; and

(b) any income of the said undertaking classifiable as “Capital gains” chargeable under the provisions of section 31 ⁵⁹[; and

(c) any income of the said undertaking resulting from disallowance made under section 30 ⁶⁰[.

[* * *]]

(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.]

⁶³[46B.(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 ⁶⁴[the thirtieth day of June, ⁶⁵[2019]] (both days inclusive) shall be exempted from the tax payable under this Ordinance for theperiod, and at the rate, specified below:if the said undertaking is set-up in-⁶⁶[(i) ⁶⁷[Dhaka, 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

 

⁶⁸[(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-

(a) active pharmaceuticals ingredient industry and radio pharmaceuticals industry;⁶⁹[(aa) automobile manufacturing industry;](b) barrier contraceptive and rubber latex;(c) basic chemicals or dyes and chemicals;(d) basic ingredients of electronic industry (e.g. resistance, capacitor, transistor, integrator circuit);⁷⁰[(dd) bi-cycle manufacturing industry;](e) bio-fertilizer;(f) biotechnology;(g) boilers;⁷¹[(gg) brick made of automatic Hybrid Hoffmann Kiln ⁷²[or Tunnel Kiln] technology;](h) compressors;(i) computer hardware;(j) energy efficient appliances;(k) insecticide or pesticide;(l) petro-chemicals;(m) pharmaceuticals;(n) processing of locally produced fruits and vegetables;(o) radio-active (diffusion) application industry (e.g. developing quality or decaying polymer or preservation of food or disinfecting medicinal equipment);(p) textile machinery;(q) tissue grafting; ⁷³[***(qq) tyre manufacturing industry; or](r) any other category of industrial undertaking as the Government may, by notification in the official Gazette, specify.(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:-(a) that the said undertaking is owned and managed by-(i) a body corporate established by or under any law for the time being in force with its head office in Bangladesh; or(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 upcapital of not less than two million taka on the date of commencement of commercial production;(b) that thirty percent of the exempted income under subsection (1) is invested 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 and in addition to that, another ten percent of the exempted income 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 theassessment 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;(c) that the said undertaking is not formed by splitting up or by reconstruction or reconstitution of business already in existence or by transfer to a new business of any machinery or plant used in business which was being carried on in Bangladesh at any time before thecommencement of the new business;(d) that the said undertaking is approved, and during the relevant income year, stands approved by the Board for the purposes of this section; (e) that application in the prescribed form for approval for the purposes of this section, as verified in the prescribed manner, is made to the Board within six months from the end of the month of commencement of commercial production;(f) that the said undertaking obtained a clearance certificate for the relevant income year from the Directorate of Environment;(g) that the said undertaking maintains books of accounts on a regular basis and submits return of its income as per provisions laid down in section 75 of this Ordinance.]

(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:-

(a)     any dividend paid, credited or distributed or deemed to have been paid, credited or distributed by a company to its share-holders out  of the profits and gains;

(b)     any income of the said undertaking classifiable as ''Capital gains'' chargeable under the provisions of section 31;

(c)     any income of the said undertaking resulting from disallowance made under section 30.

(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 ⁷⁴[or 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.]

⁷⁵[46BB.  (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:

 

(i) if the said undertaking is set-up in Dhaka, Mymensingh and Chattogram divisions, excluding Dhaka, Narayanganj, Gazipur, Chattogram, 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 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 ;

(ii) if the said undertaking is set-up in Rajshahi, Khulna, Sylhet, Barishal 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	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

 

(a) an industry engaged in, or in the production of,¾

(i) active pharmaceuticals ingredient and radio pharmaceuticals;

(ii) agriculture machineries;

(iii) automatic bricks;

(iv) automobile;

(v) barrier contraceptive and rubber latex;

(vi) basic components of electronics (e.g. resistor, capacitor, transistor, integrated circuit, multilayer PCB etc.);

(vii) bi-cycle including parts thereof;

(viii) bio-fertilizer;

(ix) biotechnology based agro products;

(x) boiler including parts and equipment thereof;

(xi) compressor including parts thereof;

(xii) computer hardware;

(xiii) furniture;

(xiv) home appliances (blender, rice cooker, microwave oven, electric oven, washing machine, induction cooker, water filter etc.);

(xv) insecticides or pesticides;

(xvi) leather and leather goods;

(xvii) LED TV;

(xviii) locally produced fruits and vegetables processing;

(xix) mobile phone;

(xx) petro-chemicals;

(xxi) pharmaceuticals;

(xxii) plastic recycling;

(xxiii) textile machinery;

(xxiv) tissue grafting;

(xxv) toy manufacturing;

       (xxvi) tyre manufacturing;

 

⁷⁶[(xxvii) Electrical transformer;

 

(xxviii) Artificial fiber or manmade fiber manufacturing;

 

(xxix) Automobile parts and components manufacturing;

 

(xxx) Automation and Robotics design, manufacturing including parts and components thereof;

 

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

 

(xxxii) Nanotechnology based products manufacturing;

 

(xxxiii) Aircraft heavy maintenance services including parts manufacturing;]

 

(b) any other category of industrial undertaking as the Government may, by notification in the official Gazette, specify.

(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

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

(i)    a body corporate established by or under any law for the time being in force with its head office in Bangladesh; or

 (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;

 

(b)   that thirty percent of the exempted income under sub-section (1) is invested 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 and in addition to that, another ten percent of the exempted income 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;

 

(c)   that the said undertaking is not formed by splitting up or by reconstruction or reconstitution of business already in existence or by transfer to a new business of any machinery or plant used in business which was being carried on in Bangladesh at any time before the commencement of the new business;

 

(d)   that the said undertaking is approved, and during the relevant income year, stands approved by the Board for the purposes of this section;

 

(e)   that application in the prescribed form for approval for the purposes of this section, as verified in the prescribed manner, is made to the Board within six months from the end of the month of commencement of commercial production;

(f)    that the said undertaking obtained a clearance certificate for the relevant income year from the Directorate of Environment;

(g)   that the said undertaking maintains books of accounts on a regular basis and submits return of its income as per provisions laid down in section 75 of this Ordinance.

(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-

(a) any dividend paid, credited or distributed or deemed to have been paid, credited or distributed by a company to its share-holders out of the profits and gains;

(b) any income of the said undertaking classifiable as ''Capital gains'' chargeable under the provisions of section 31;

(c) any income of the said undertaking resulting from disallowance made under section 30.

(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.]

⁷⁹[46C.⁸⁰[(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, ⁸¹[2019] (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,-

(a) deep sea port;

(b) elevated expressway;

(c) export processing zone;

(d) flyover;

(e) gas pipe line,

(f) Hi-tech park;

(g) Information and Communication Technology (ICT) village or software technology zone;

(h) Information Technology (IT) park;

(i) large water treatment plant and supply through pipe line;

(j) Liquefied Natural Gas (LNG) terminal and transmission line;

(k) mono-rail;

(l) rapid transit;

(m) renewable energy (e.g energy saving bulb, solar energy plant, windmill);

(n) sea or river port;

(o) ⁸²[toll road or bridge];

(p) underground rail;

(q) waste treatment plant; or

(r) any other category of physical infrastructure facility as the Government may, by notification in the official Gazette, specify.

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

(a) that the said facility is owned and managed by-

(i) a body corporate established by or under any law for the time being in force with its head office in Bangladesh; or

(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 operation;

(b) that thirty percent of the exempted income under subsection (1) is invested in the said facility or in any new physical infrastructure facility 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 percent of the exempted income 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:

(c) that the said facility is approved, and during the relevant income year, stands approved by the Board for the purposes of this section;

(d) that application in the prescribed form for approval for the purposes of this section, as verified in the prescribed manner, is made to the Board within six months from the end of the month of commencement of commercial operation;

(e) that the said facility maintains books of accounts on a regular basis and submits return of its income as per provisions of section 75 of this Ordinance.

(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 :-

(a) any dividend paid, credited or distributed or deemed to have been paid, credited or distributed by a company to its share-holders out of the profits and gains;

(b) any income of the said facility classifiable as "Capital gains" chargeable under the provisions of section 31;

(c) any income of the said facility resulting from disallowance made under section 30.

(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 ⁸³[or 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.]

⁸⁴[46CC.   (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,-

(i) deep sea port;

(ii) elevated expressway;

(iii) export processing zone;

(iv) flyover;

(v) gas pipe line;

(vi) Hi-tech park;

(vii) Information and Communication Technology (ICT) village or software technology zone;

(viii) Information Technology (IT) park;

(ix) large water treatment plant and supply through pipe line;

(x) Liquefied Natural Gas (LNG) terminal and transmission line;

(xi) mobile phone tower or tower sharing infrastructure;

(xii) mono-rail;

(xiii) rapid transit;

(xiv) renewable energy (e.g solar energy plant, windmill);

(xv) sea or river port;

(xvi) toll road or bridge;

(xvii) underground rail;

(xviii) waste treatment plant; or

(xix) any other category of physical infrastructure facility as the Government may, by notification in the official Gazette, specify.

(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

(i)  a body corporate established by or under any law for the time being in force with its head office in Bangladesh; or

(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 operation;

(b)   that thirty percent of the exempted income under sub-section (1) is invested in the said facility or in any new physical infrastructure facility 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 percent of the exempted income 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;

(c)   that the said facility is approved, and during the relevant income year, stands approved by the Board for the purposes of this section;

(d)   that application in the prescribed form for approval for the purposes of this section, as verified in the prescribed manner, is made to the Board within six months from the end of the month of commencement of commercial operation;

(e)   that the said facility maintains books of accounts on a regular basis and submits return of its income as per provisions of section 75 of this Ordinance.

(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

(a)  any dividend paid, credited or distributed or deemed to have been paid, credited or distributed by a company to its share-holders out of the profits and gains;

(b)  any income of the said facility classifiable as "Capital gains" chargeable under the provisions of section 31;

(c)  any income of the said facility resulting from disallowance made under section 30.

(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.

47. (1) The tax shall not be payable by a co-operative society ⁸⁵[***] in respect of- ⁸⁶[***](b) the entire income from business carried on by it, if it is engaged in the following:- (i) agricultural or rural credit; (ii) cottage industry; (iii) marketing of agricultural produce of its members; (iv) purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members; or (v) such processing, not being the performance of any manufacturing operation with the aid of power, of the agricultural produce of its members as is ordinarily employed by a cultivator to render marketable the agricultural produce raised by him; ⁸⁷[***] (d) any income derived from the letting of godowns or warehouses for the purpose of storage, processing or facilitating the marketing of commodities belonging or meant for sale to its members. Explanation.-For the purpose of this section,- (a) “cottage industry” means an enterprise, not being owned by a joint stock company which fulfils the following conditions, namely:- (i) it is basically an enterprise in which the owner is the investor, a full-time worker and the actual entrepreneur; (ii) the capital invested in plant, machinery and equipment does not exceed ⁸⁸[three lakh taka] at any time during the income year; (iii) the number of workers, including the owner and the members of his family, shall not on any one twenty-four hour day during the income year, exceed ⁸⁹[fifteen]; and (iv) the owner of the enterprise or any member of his family does not own any other industrial or commercial enterprise either in his own name or in the name of any other person; and (b) “member of his family”, in relation to the owner of an enterprise, means the parents, spouse and children dependent on the owner and employed in the enterprise, whether working full-time or part-time, or whether for or without any wages, remuneration or compensation in any form. (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.