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Chapter V
COMPUTATION OF INCOME
30. 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:-
(a) any payment which is an income of the payee classifiable under the head "Salaries" if tax thereon has not been paid in accordance with provisions of Chapter VII;
1[ (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 2[ ***],]
3[ (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;]
4[ (aaaa) any payment made by way of salary to an employee for whom the statement under section 108A was not provided;]
(b) any payment by way of interest, salary, commission or remuneration made by a firm or an association of persons to any partner of the firm or any member of the association, as the case may be;
(c) any payment by way of brokerage or commission made to a person who is not a resident in Bangladesh unless tax has been deducted therefrom under section 56;
(d) any payment to a provident fund or other fund established for the benefit of the employees unless the employer has made effective arrangements to secure that tax shall be deducted at source from any payments made from the fund which are taxable being income falling under the head "Salaries";
5[ (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 6[ 7[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;]
(f) any expenditure in respect of the following as is in excess of the amount or rate prescribed in this behalf and as is not, in the cases of sales and services liable to excise duty, supported by excise stamp or seal, namely:-
(i) entertainment;
(ii) foreign travels of employees and their dependents for holidaying and recreation;
8[***] and
(iv) distribution of free samples;
9[ (g) any expenditure exceeding ten per cent of the 10[ net profit disclosed in the statement of accounts] 11[ 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);
12[ (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:
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(i) For the first three income years from the commencement of the business or profession |
Ten percent (10%) of the 13[net profit from business or profession, excluding any profit or income of subsidiary or associate or joint venture, ] disclosed in the statement of accounts; |
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(ii) For subsequent income years |
Eight percent (8%) of the 14[net profit from business or profession, excluding any profit or income of subsidiary or associate or joint venture,] disclosed in the statement of accounts;”। |
]];
(i) any payment by way of salary or remuneration madeotherwise than by 15[***] bank transfer by a person to any employee having gross monthly salary of taka 16[twenty] thousand or more;
17[(ii) any payment exceeding Taka five lakhs paid by a person on account of purchase of raw materials otherwise than by bank transfer;]
(j) any expenditure by way of incentive bonus exceeding ten per cent of the 18[ net profit disclosed in the statement of accounts];
(k) any expenditure by way of overseas traveling exceeding 19[zero point five zero percent (0.50%)] of the disclosed 20[business] turnover 21[ 22[ :
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;]
(l) any payment by way of commission paid or discount made to its shareholder director by a company;
23[(m) any payment by a person exceeding taka fifty thousand or more, otherwise than by bank transfer excluding-
(i) salary or remuneration made to any employee, without prejudice to an obligation referred to in clause (i) ;
(ii) any payment for government obligation;
(iii) any payment on account of purchase of raw materials;] 24[ ;
(n) any payment by way of any rent of any property, whether used for commercial or residential purposes, otherwise than by 25[***] bank transfer 26[ ;
(o) any payment made to a person who is required to obtain a twelve-digit Taxpayer’s Identification Number under clauses (xxviii), (xxix) and (xxx) of sub-section (3) of section 184A but fails to hold the same at the time of payment.]
27[(p) any promotional expense exceeding zero point five zero percent (0.50%) of the disclosed business turnover.
28[Explanation-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.
29[***]]
