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The Income-tax Ordinance, 1984

( Ordinance NO. XXXVI OF 1984 )

[ 4th June, 1984 ]

Chapter IX

ASSESSMENT

Minimum Tax

1[82C. (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-

 

(a) any tax deducted or collected at source under the provisions of sections mentioned in clause (b) shall be the minimum tax on income from the source or sources for which tax has been deducted or collected;

 

(b) the tax referred to in clause (a) shall be the tax deducted or collected under sections 52, 52A, 2[SL. No. 1, 2 and 3[14] of the Table of sub-section (1) of section 52AA] 52AAA, 52B, 52C, 52D, 52JJ, 52N, 52O, 4[52Q], 52R, 53, 53AA, 53B, 53BB, 53BBB, 5[***] 53C, 53CCC, 53DDD 6[, 53E], 53EE, 53F, 53FF, 53G, 53GG, 53H, 53M, 53N 7[, 53P] 8[, 53Q, 53R] and 55:

 

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

 

(i) tax collected under section 52 from the following persons-

 

a. a contractor of an oil company or a subcontractor to the contractor of an oil company as may be prescribed;

 

b. an oil marketing company and its dealer or agent excluding petrol pump station;

 

c. any company engaged in oil refinery;

 

d. any company engaged in gas transmission or gas distribution;

 

(ii) tax deducted under section 53 from import of goods by an industrial undertaking 9[,except an industrial undertaking engaged in producing cement, iron or iron products, 10[ferro alloy products,11[perfumes and toilet waters, 12[beverage concentrate,]] as raw materials for its own consumption;

 

(iii) tax deducted under section 53F from a source other than the sources mentioned in clause (c) of sub-section (1) and sub-section (2) of that section;

 

(c) for the sources of income for which minimum tax is applicable, books of accounts shall be maintained in the regular manner in accordance with the provisions of section 35;

 

(d) income from any source, for which minimum tax is applicable under this sub-section, shall be determined in regular manner and tax shall be calculated by using 13[applicable rate] on such income. If the tax so calculated is higher than the minimum tax under clause (a), the higher amount shall be payable on such income:

 

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

 
 

14[Serial 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 15[less cost of acquisition]

 
 

as mentioned in section 53H and the rule made thereunder

 
 
16[6. section 53P any sum paid by real estate developer to land owner As mentioned in section 53P]

(e) income or loss computed in accordance with clause (d) or the proviso of clause (d) shall not be set off with loss or income, respectively, computed for any regular source.

 

(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)-

 

(a) regular tax shall be calculated on the income from regular source;

 

(b) the tax liability of the assessee shall be the aggregate of the tax as determined under sub-section (2) and the regular tax under clause (a).

 

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

 

(a) an assessee being—

 

(i) an individual having gross receipts of taka three crore or more; or

 

(ii) a firm having gross receipts of more than taka fifty lakh; or

 

(ii) a company,

 

           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

18[0.25%] 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.]

 

 

 

(b) where the assessee has an income from any source that is exempted from tax or is subject to a reduced tax rate, the gross receipts from such source or sources shall be shown separately, and the minimum tax under this sub-section shall be calculated in the following manner-

 

(i) minimum tax for receipts from sources that are subject to regular tax rate shall be calculated by applying the rate mentioned in clause (a);

 

(ii) minimum tax for receipts from sources that enjoys tax exemption or reduced tax rate shall be calculated by applying the rate mentioned in clause (a) as reduced in proportion to the exemption of tax or the reduction of rate of tax;

 

(iii) minimum tax under this sub-section shall be the aggregate of the amounts calculated under sub-clauses (i) and (ii).

 

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

 

(i) all receipts derived from the sale of goods;

 

(ii) all fees or charges for rendering services or giving

 

benefits including commissions or discounts;

 

(iii) all receipts derived from any heads of income.

 

(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

 

(a) the minimum tax under sub-section (2); or

 

(b) the minimum tax under sub-section (4).

 

(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-

 

(a) “regular source” means any source for which minimum tax is not applicable under sub-section (2);

 

(b) “regular tax” means the tax calculated on regular income using the regular manner;

 

(c) “19[regular tax rate]” means the rate of tax, that would be applicable if the tax exemption or the reduced rate were not granted.]

 

20[(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.]

  • 1
    Section 82C was substituted by section 51 of অর্থ আইন, ২০১৬ (২০১৬ সনের ২৮ নং আইন).
  • 2
    The letters, words, symbols, numbers and brackets “SL. No. 1, 2 and 13A of the Table of sub-section (1) of section 52AA” were substituted for the letters, words, symbols, numbers and brackets “SL No. 1 of the Table of sub-section (1) of section 52AA” by section 45(a)(i) of অর্থ আইন, ২০২০ (২০২০ সনের ৯ নং আইন)।
  • 3
    The number “14” was inserted for the number and letter “13A” by section 37(a)(i) of অর্থ আইন, ২০২২ (২০২২ সনের ১৩ নং আইন) (With effect from 1st July 2022).
  • 4
    The number, letter and comma “52Q” were inserted after the number, letter and comma “ 52O,” by section 37(a)(ii) of অর্থ আইন, ২০২২ (২০২২ সনের ১৩ নং আইন) (With effect from 1st July 2022).
  • 5
    The number, letter and comma “53BBBB,” were omitted by section 37(a)(iii) of অর্থ আইন, ২০২২ (২০২২ সনের ১৩ নং আইন) (With effect from 1st July 2022).
  • 6
    The comma and figure “, 53E” were inserted after the figure “53DDD” by section 31(a)(i) of অর্থ আইন, ২০১৭ (২০১৭ সনের ১৪ নং আইন) (With effect from 1st July 2017).
  • 7
    The comma, number and letters “, 53P” were inserted after the number and letter “53N” by section 40(a)(ii) of অর্থ আইন, ২০১৯ (২০১৯ সনের ১০ নং আইন).
  • 8
    The number, letter and comma “, 53Q, 53R” were inserted after the number and letter “ 53P” by section 37(a)(iv) of অর্থ আইন, ২০২২ (২০২২ সনের ১৩ নং আইন) (With effect from 1st July 2022).
  • 9
    The commas and words “,except an industrial undertaking engaged in producing cement, iron or iron products,” were inserted after the words “industrial undertaking” by section 40(a)(iii) of অর্থ আইন, ২০১৯ (২০১৯ সনের ১০ নং আইন).
  • 10
    The words and comma “ferro alloy products,” were inserted after the words and symbol “iron products,” by section 45(a)(ii) of অর্থ আইন, ২০২০ (২০২০ সনের ৯ নং আইন)।
  • 11
    The Words and comma “perfumes and toilet waters,” were inserted for the words and comma “ferro alloy products,” by section 26(a) of অর্থ আইন, ২০২১ (২০২১ সনের ১১ নং আইন)
  • 12
    The words and comma “beverage concentrate,” were inserted after the words and comma “toilet waters,” by section 37(a)(v) of অর্থ আইন, ২০২২ (২০২২ সনের ১৩ নং আইন) (With effect from 1st July 2022).
  • 13
    The words “applicable rate” were substituted for the words “regular rate” by section 31(a)(ii) of অর্থ আইন, ২০১৭ (২০১৭ সনের ১৪ নং আইন) (With effect from 1st July 2017).
  • 14
    The words, letter, number and symbol “ Serial No. 3 and 4 of the Table of section 53F(1)” were substituted for the words, letter, number and symbol “ section 53F(1)(c) and (2)” by section 37(b) of অর্থ আইন, ২০২২ (২০২২ সনের ১৩ নং আইন) (With effect from 1st July 2022).
  • 15
    The words “less cost of acquisition” were inserted after the numbers “53H” by section 40(b)(i) of অর্থ আইন, ২০১৯ (২০১৯ সনের ১০ নং আইন).
  • 16
    Serial No. 6 and entries were inserted by section 40(b)(ii) of অর্থ আইন, ২০১৯ (২০১৯ সনের ১০ নং আইন).
  • 17
    The initial part of sub-section (4) and clause (a) were substituted by section 45(b) of অর্থ আইন, ২০২০ (২০২০ সনের ৯ নং আইন)।
  • 18
    The figures and symbol “0.25%” were substituted for the the figures and symbol “0.50%” by section 26(b) of অর্থ আইন, ২০২১ (২০২১ সনের ১১ নং আইন)
  • 19
    The words “regular tax rate” were substituted for the words “regular rate” by section 31(b) of অর্থ আইন, ২০১৭ (২০১৭ সনের ১৪ নং আইন) (With effect from 1st July 2017).
  • 20
    Sub-section (8A) was inserted by section 25 of অর্থ আইন, ২০১৮ (২০১৮ সনের ২২ নং আইন) (With effect from 1st July 2018).
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