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18/07/2024
Laws of Bangladesh

The Finance Ordinance, 1977

( Ordinance NO. XXIII OF 1977 )

Amendments of Act XI of 1922

5. following amendments shall be made in the Income-tax Act, 1922 (XI of 1922), namely:-

 
 
 
 

(1) in section 2, in clause (6AA),-

 
 
 
 

(a) the words, brackets, letter and figures “or a firm treated as registered under clause (b) of sub-section (5) of section 23” shall be omitted;

 
 

(b) after sub-clause (a), the following new sub-clause (aa) shall be inserted, namely:-

 
 
 
 

“(aa) which is chargeable under the head “Agricultural income” other than the rent and revenue, including any local cess or rates, derived from land; or”;

 
 
 
 

(2) in section 4,-

 
 
 
 

(a) sub-section (2) shall be omitted;

 
 
 
 

(b) in sub-section (3),-

 
 
 
 

(i) in clause (xii), for sub-clause (g) the following shall be substituted and shall be deemed to have been so substituted on and from the first day of July, 1976, namely:-

 
 
 
 

“(g) in respect of a building the erection of which is begun and completed at any time between the first day of July, 1975 and the thirtieth day of June, 1980 (both days inclusive) and which is intended to be, and is actually, used for residential purposes only, for a period of five years from the date of such completion, subject to the condition that the plinth area of the building is not more than two thousand square feet. The exemption under this sub-clause shall also apply in the case of housing companies, societies and estates where the construction comprises bungalows, flats, apartments or units (hereinafter referred to as units) each containing plinth area of not more than two thousand square feet provided the construction comprises not less than twenty five units.”;

 
 
 
 

(ii) after clause (xiv), a new clause (xiva), shall be inserted, namely:-

 
 
 
 

“(xiva) Any income from dividends received by an assessee (other than a company), subject to the following limits, namely:-

 
 

(a) where such dividend income does not exceed five thousand Taka,

 
 

the whole of such income;

 
 
 
 
 
 

(b) where such dividend income exceeds five thousand Taka,

 
 

five thousand Taka;”;

 
 

(3) in section 10,-

 
 
 
 

(a) in sub-section (2),-

 
 
 
 

(i) after clause (via), the following new clause (vib) shall be inserted, namely:-

 
 
 
 

“(vib) in respect of any machinery or plant (other than office appliances and road transport vehicles) which, not having been previously used in the taxable territories, is used in an industrial undertaking set up in the taxable territories between the first day of July, 1977, and the thirtieth day of June, 1982 (both days inclusive), an amount by way of accelerated depreciation, in respect of the specified year equivalent to eighty per cent, and in respect of the year next following, twenty per cent, of the actual cost of such machinery or plant to the assessee.

 
 
 
 

Explanation.-In this clause, “specified year” means the year in which the industrial undertaking starts commercial production:

 
 
 
 

Provided that, in the case of machinery or plant of an industrial undertaking set up in such areas as may be specified by the National Board of Revenue by notification in the official Gazette, this clause shall have effect as if for the words “eighty per cent” the words “hundred per cent” were substituted:

 
 
 
 

Provided further that the industrial undertaking shall fulfil the following conditions, namely:-

 
 
 
 

(a) that it is owned and managed by a company formed and registered under the Companies Act, 1913 (VII of 1913), or a body corporate formed in pursuance of an Act of Parliament, having its registered office or head office in the taxable territories;

 
 
 
 

(b) that it belongs to the class of industries specified by the National Board of Revenue for this purpose by notification in the official Gazette;

 
 
 
 

(c) that an application for accelerated depreciation under this clause in the prescribed form and verified in the prescribed manner has been made to the National Board of Revenue within four months of the month in which the undertaking goes into commercial production along with a declaration in writing that it has not been approved by or has not applied for such approval or shall not apply for such approval under section 14A to the National Board of Revenue:

 
 
 
 

Provided further that no allowance under this clause shall be allowed unless the prescribed particulars have been furnished by the assessee in respect of such machinery or plant:

 
 
 
 

Provided further that where in the assessment of the assessee full effect cannot be given to such allowance in the specified year owing to there being no profits or gains chargeable for that year, or owing to the profits or gains being less than the allowance, the allowance or part of the allowance to which effect has not been given, as the case may be, shall be carried forward to the succeeding years till such time as the entire allowance on this account is adjusted against the profits:

 
 
 
 

Provided further that the machinery or plant to which the accelerated depreciation has been allowed shall not be entitled to the allowances as referred to in clause (vi);”;

 
 
 
 

(ii) after clause (vii), the following new clause (viia) shall be inserted, namely:-

 
 
 
 

“(viia) an investment allowance equivalent to twenty per cent of the cost of machinery or plant of an industrial undertaking referred to in clause (vib) in respect of the year in which the industrial undertaking starts commercial production :

 
 
 
 

Provided that, in the case of machinery or plant of an industrial undertaking set up in such areas as may be specified by the National Board of Revenue by notification in the official Gazette, this clause shall have effect as if for the words “twenty per cent” the words “twenty-five per cent” were substituted;”;

 
 
 
 

(b) in sub-section (4), in clause (d), for the words “thirty per cent of the salary of such employee” the words “fifty per cent of the salary of such employee or fifty thousand Taka, whichever is the less” shall be substituted;

 
 
 
 

(c) in sub-section (5), in clause (b), in the third proviso, for the words “one lakh” the words “one and a half lakh” shall be substituted;

 
 
 
 

(4) in section 14A, in sub-section (2A), in the proviso, for the words “seven years” the words “nine years” shall be substituted and shall be deemed to have been so substituted on and from the first day of July, 1976;

 
 
 
 

(5) in section 15, in sub-section (3),-

 
 
 
 

(a) for the word “fifteen” the word “twenty” shall be substituted;

 
 
 
 

(b) in the first proviso, the word “any” shall be omitted and shall be deemed to have been so omitted on and from the first day of July, 1971;

 
 
 
 

(c) in the second proviso, the words “any assessment” the words “assessment for the” shall be substituted;

 
 
 
 

(6) in section 18, after sub-section (2B), the following new sub-section (2C), shall be inserted, namely:-

 
 
 
 

“(2C) The person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle any amount exceeding Taka two thousand shall, at the time of payment thereof, deduct income-tax thereon at the rates in force.”;

 
 
 
 

(7) in section 18A, in sub-section (8), for the words “no payment of tax has been made” the words “payment of tax has not been made” shall be substituted;

 
 
 
 

(8) in section 23, in sub-section (5), clause (b) shall be omitted;

 
 
 
 

(9) in section 23B, in sub-section (1), for the brackets, figures and words “(i) the allowance referred to in paragraph (b) of the proviso to clause (vi)” the brackets, figures and words “(i) the allowances referred to in paragraph (b) of the proviso to clause (vi) and clause (vib)” shall be substituted;

 
 
 
 

(10) in section 24,-

 
 
 
 

(a) in sub-section (1), in the second proviso, the words “which has not been assessed under the provisions of clause (b) of sub-section (5) of section 23 in the manner applicable to the registered firm” shall be omitted;

 
 
 
 

(b) in sub-section (2),-

 
 
 
 

(i) in clause (c), the words, commas, brackets, letter and figures “or entitle any assessee, being a partner in an unregistered firm which has not been assessed under the provisions of clause (b) of sub-section (5) of section 23 in the manner applicable to a register firm,” shall be omitted;

 
 
 
 

(ii) clause (d) shall be omitted;

 
 
 
 

(iii) in Explanation 2, in paragraph (a), the words, brackets, letter and figures “or is treated as a registered firm in such year under clause (b) of sub-section (5) of section 23” shall be omitted;

 
 
 
 

(c) after sub-section (2A), the following new sub-section (2AA) shall be inserted and shall be deemed to have been so inserted with effect on and from the first day of July, 1976, namely:-

 
 
 
 

“(2AA) Where any assessee sustains a loss of profits or gains in any year under the head “Agricultural income” and the loss cannot be wholly set off under sub-section (1), so much of the loss as is not set off, or the whole of the loss where the assessee has no income under any other head, shall be carried forward to the following year and set off against the profits and gains, if any, of such agricultural income and if the loss in either case cannot be wholly set off the amount of loss not so set off shall be carried forward to the next year and so on but no loss shall be carried forward for more than six years:

 
 
 
 

Provided that the loss determined as respects any assessment prior to the year beginning on the first day of July, 1976, and any amount not set off shall be carried forward to the next year and set off against the profits and gains, if any, of such agricultural income, chargeable under this Act and if the loss cannot be wholly set off, the amount of the loss not so set off shall be carried forward to the next year and so on but no loss shall be carried forward to more than six years from the year in which the assessee sustained such loss.”;

 
 
 
 

(11) in section 34,-

 
 
 
 

1[(a) in sub-section (1A), in clause (c), for the full stop at the end a colon shall be substituted and thereafter the following shall be added, namely:-

 
 
 
 

'Provided that as respect any assessment year beginning on the first day of July, 1974, the provision of this clause shall have effect as if for the word “four” the word “three” were substituted.';

 
 
 
 

(b) in sub-section (2), in the proviso, in clause (i), in sub-clause (e), for the full stop at the end a semi-colon and the word “; and” shall be substituted and thereafter the following new sub-clause (f) shall be added namely:-

 
 
 
 

'(f) in relation to the income, profits, or gains which were first assessable in any year beginning with the year 1974-75, the words “three years” were substituted.';”]

 
 
 
 

(c) after sub-section (2B), the following new sub-section (2BB) shall be inserted, namely:-

 
 
 
 

“(2BB) Notwithstanding anything contained in sub-section (2), the provision relating to the time limit within which an assessment or re-assessment may be made, shall not apply to the making of assessment or re-assessment as respects any year beginning on and from the first day of July, 1969, up to the assessment year ending on the thirtieth day of June, 1976, in respect of which the return of income is furnished in pursuance of the Press Note dated the sixteenth day of February, 1977, issued by the National Board of Revenue.”;

 
 

(12) after section 38A, the following new section 38AA shall be inserted, namely:-

 
 
 
 

“38AA. Power to call for information-. (1) Notwithstanding anything contained in any other provisions of this Act, the Commissioner of Taxes and the Inspecting Joint Commissioner of Taxes may make any enquiry which they consider necessary as respects any person liable or believed by them to be liable to assessment under this Act or require any such person to produce or cause to be produced any accounts or documents which they consider necessary, and shall have the same powers for the purpose of making any such enquiry or requiring the production of accounts or documents under this Act as the Deputy Commissioner of Taxes has.

 
 
 
 

(2) The Commissioner of Taxes, the Inspecting Joint Commissioner of Taxes, the Deputy Commissioner of Taxes or an Inspector of Taxes, if so authorised in writing, may, for the purpose of making any inquiry which he considers necessary, enter the premises in which a person liable or believed by him to be liable to assessment carries on his business, profession or vocation, and may call for and inspect any such person's accounts or any documents in his possession and may stamp any accounts or documents so inspected and may retain such accounts or documents for so long as may be necessary for examination thereof or for the purposes of a prosecution:

 
 
 
 

Provided that the Deputy Commissioner of Taxes, or an Inspector of Taxes, shall not make any enquiries from any Scheduled Bank regarding any client of such Bank except with the prior approval of the Commissioner of Taxes.”;

 
 
 
 

(13) in section 66, for the words “High Court Division” and “Appellate Division” wherever occurring the words “High Court” and “Supreme Court” shall respectively be substituted;

 
 
 
 

(14) in section 66A,-

 
 
 
 

(a) for the words “High Court Division” and “Appellate Division” wherever occurring the words “High Court” and “Supreme Court” shall respectively be substituted; and

 
 
 
 

(b) in sub-section (3), in the second proviso, for the words “Supreme Court” the words “High Court” shall be substituted.


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    Sub-clauses (a) and (b) were substituted by section 2 of the Finance (Amendment) Ordinance, 1977 (Ordinance No. XXVII of 1977)
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