এই অধ্যাদেশ আয়কর আইন, ২০২৩ (২০২৩ সনের ১২ নং আইন) দ্বারা রহিত করা হইয়াছে।
An Ordinance to consolidate and amend the law relating to Income-tax.
WHEREAS it is expedient to consolidate and amend the law relating to income-tax;
NOW, THEREFORE, in pursuance of the Proclamation of the 24th March, 1982, and in exercise of all powers enabling him in this behalf, the President is pleased to make and promulgate the following Ordinance:-
Chapter I
PRELIMINARY
2. In this Ordinance, unless there is anything repugnant in the subject or context,-
(1) "agricultural income" means-
(a) any income derived from any land in Bangladesh and used for agricultural purposes-
(i) by means of agriculture; or
(ii) by the performance of any process ordinarily employed by a cultivator to render marketable the produce of such land; or
(iii) by the sale of the produce of the land raised by the cultivator in respect of which no process, other than that to render the produce marketable, has been performed; or
(iv) by granting a right to any person to use the land for any period; or
(b) any income derived from any building which-
(i) is occupied by the cultivator of any such land as is referred to in sub-clause (a) in which any process is carried on to render marketable any such produce as aforesaid;
(ii) is on, or in the immediate vicinity of, such land; and
(iii) is required by the cultivator as the dwelling house or store-house or other out-house by reason of his connection with such land;
(2) "amalgamation", in relation to companies, means the merger of one or more companies with another company, or the merger of two or more companies to form one company (the company or companies which so merged being referred to as the amalgamating company or companies and the company with which they merge or which is formed as a result of the merger as the amalgamated company) in such a manner that by virtue of, and for reasons attributable to, the merger,-
(a) all the property of the amalgamating company or companies immediately before the merger becomes the property of the amalgamated company;
(b) all the liabilities of the amalgamating company or companies immediately before the merger become the liabilities of the amalgamated company; and
1[(c) where the amalgamated company is a Bangladeshi company and the shareholders holding not less than 75% (seventy five percent) in value of the shares in the amalgamating company or companies (other than shares already held therein immediately before the merger by, or by a nominee for, the amalgamated company or its subsidiary) become shareholders of the amalgamated company; or]
2[(d) where the amalgamated company is a foreign company and the shareholders holding not less than 75% (seventy five percent) in value of the shares in the amalgamating foreign company or companies that directly or indirectly holds or hold shares in a Bangladeshi company or companies (other than shares already held therein immediately before the merger by, or by a nominee for, the amalgamated company or its subsidiary) become shareholders of the amalgamated company;]
(3) "annual value" shall be deemed to be-
(a) in relation to any property let out,-
(i) (i) the sum for which property might reasonably be expected to let from year to year 3[ ***] 4[ and any amount received by letting out furniture, fixture, fittings etc; or]
(ii) where the annual rent in respect thereof is in excess of the sum referred to in paragraph (i), the amount of the annual rent;
5[ * * *]
(4) "Appellate Joint Commissioner" means a person appointed to be an Appellate Joint Commissioner of Taxes under section 3 6[ , and includes a 7[ an Appellate Additional Commissioner of Taxes]] 8[ and also a person appointed to hold current charge of an Appellate Joint Commissioner of Taxes];
(5) "Appellate Tribunal" means the Taxes Appellate Tribunal established under section 11;
9[ (5A) "approved gratuity fund" means a gratuity fund which has been and continues to be approved by the Board in accordance with the provisions of Part C of the First Schedule;]
(6) "Approved superannuation fund" means a superannuation fund 10[ or a pension fund] which has been and continues to be approved by the Board in accordance with the provisions of Part A of the First Schedule;
(7) "Assessee", means a person by whom any tax or other sum of money is payable under this Ordinance, and includes-
(a) every person in respect of whom any proceeding under this Ordinance has been taken for the assessment of his income or the income of any other person in respect of which he is assessable, or of the amount of refund due to him or to such other person;
11[ (aa) every person by whom a minimum tax is payable under this Ordinance;]
(b) every person who is required to file a return under section 75, section 89 or section 91;
(c) every person who desires to be assessed and submits his return of income under this Ordinance; and
(d) every person who is deemed to be an assessee, or an assessee in default, under any provision of this Ordinance;
(8) "assessment", with its grammatical variations and cognate expressions, includes re-assessment and additional or further assessment;
(9) "assessment year" means the period of twelve months commencing on the first day of July every year; and includes any such period which is deemed, under the provisions of this Ordinance, to be assessment year in respect of any income for any period;
(10) "Assistant Commissioner of Taxes" means a person appointed to be an Assistant Commissioner of Taxes under section 3;
(11) "Bangladeshi company" means a company formed and registered under the Companies Act, 1913 (VII of 1913) 12[ or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন), and includes a body corporate] established or constituted by or under any law for the time being in force in Bangladesh having in either case its registered office in Bangladesh;
(12) "Banking company" has the same meaning as in 13[ ব্যাংক-কোম্পানী আইন, ১৯৯১ (১৯৯১ সনের ১৪ নং আইন)], and includes any body corporate established or constituted by or under any law for the time being in force which transacts the business of banking in Bangladesh;
14[(12A) “bank transfer” includes transfer of money by crossed cheque, mobile financial services or any other digital means approved by the Bangladesh Bank;]
(13) "Board" means the National Board of Revenue constituted under the National Board of Revenue Order, 1972 (P. O. No. 76 of 1972);
(14) "business" includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture;
(15) "capital asset" means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include-
(a) any stock-in-trade (not being stocks and shares), consumable stores or raw materials held for the purposes of his business or profession; 15[ and]
(b) personal effects, that is to say, movable property (including wearing apparel, jewellery, furniture, fixture, equipment and vehicles), which are held exclusively for personal use by, and are not used for purposes of the business or profession of the assessee or any member of his family dependent on him; 16[ ***]
17[ ***]
18[ (16) “charitable purpose” means-
(a) relief of the poor, education relief, medical relief; and
(b) the advancement of any other object of general public utility:
Provided that the advancement of any other object of general public utility shall not be considered as charitable purpose, if it is not approved by the Board and involves-
(i) carrying out any activities in the nature of trade, commerce or business in whatever form and manner; or
(ii) rendering any service for a consideration and the aggregate value of such consideration in any income year exceeds Taka twenty lakh;]
(17) "chartered accountant" means a chartered accountant as defined in the Bangladesh Chartered Accountants Order, 1973 (P.O. No. 2 of 1973);
(18) "child", in relation to any individual, includes a step-child and an adopted child of that individual;
19[ (19) "Commissioner" means a person appointed to be a Commissioner of Taxes or Commissioner (Large Taxpayer Unit) under section 3, or a person appointed to hold current charge of a Commissioner of Taxes or Commissioner (Large Taxpayer Unit);]
20[ (19A) "Commissioner (Appeals)" means a person appointed to be a 21[ Commissioner of Taxes (Appeals) under section 3 and includes a person appointed to hold current charge of a Commissioner of Taxes (Appeal)];
22[ * * *]
(20) "Company" means a company as defined in 23[ the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন)] and includes-
(a) a body corporate established or constituted by or under any law for the time being in force;
(b) any nationalised banking or other financial institution, insurance body and industrial or business enterprise; 24[ * * *]
25[ 26[ (bb) an association or combination of persons, called by whatever name, if any of such persons is a company as defined in 27[ the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন)];
(bbb) any association or body incorporated by or under the laws of a country outside Bangladesh; and]
(c) any foreign association or body, 28[ not incorporated by or under any law], which the Board may, by general or special order, declare to be a company for the purposes of this Ordinance;
(21) "co-operative society" means a co-operative society registered under 29[ সমবায় সমিতি আইন, ২০০১ (২০০১ সনের ৪৭ নং আইন) (Co-operative Societies Act, 2001)(Act No. 47 of 2001)], or under any other law for the time being in force governing the registration of co-operative societies;
(22) "cost and management accountant" means a cost and management accountant as defined in the Cost and Management Accountants Ordinance, 1977 (LIII of 1977);
(23) "Deputy Commissioner of Taxes" means a person appointed to be a Deputy Commissioner of Taxes under section 3, 30[ and includes a person appointed to be a Transfer Pricing Officer,] an Assistant Commissioner of Taxes, an Extra Assistant Commissioner of Taxes and a Tax Recovery Officer;
(24) "director" and "manager" in relation to a company have the meanings assigned to them in 31[ the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন)];
32[ (25) "Director-General of Inspection" means a person appointed to be a Director-General of Inspection (Taxes) under section 3, and except for the purpose of section 117, includes a person appointed for the purpose of this Ordinance to be an Additional Director-General of Inspection (Taxes), a Deputy Director-General of Inspection (Taxes), or an Assistant Director-General of Inspection (Taxes);]
33[ (25A) "Director General (Training)" means a person appointed to be Director General (Training);]
34[ (25AA) "Director General, Central Intelligence Cell" means of persons appointed to be Director General, Central Intelligence Cell 35[ or 36[ any Director, Central Intelligence Cell or any Joint Director, Central Intelligence Cell or Deputy Director, Central Intelligence Cell or Assistant Director, Central Intelligence Cell ] authorised by him]];
(26) "dividend" includes-
(a) any distribution by a company of accumulated profits, whether capitalised or not, if such distribution entails the release by the company to its shareholders of all or any part of its assets or reserves;
(b) any distribution by a company, to the extent to which the company possesses accumulated profits, whether capitalised or not, to its shareholders of debentures, debenture-stock or deposit certificates in any form, whether with or without interest;
(c) any distribution made to the shareholders of a company on its liquidation to the extent to which the distribution is attributable to the accumulated profits of the company immediately before its liquidation, whether capitalised or not;
(d) any distribution by a company to its shareholders on the reduction of its capital, to the extent to which the company possesses accumulated profits, whether such accumulated profits have been capitalised or not;
37[ (dd) any profit remitted outside Bangladesh by a company not incorporated in Bangladesh under কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন)];
38[ (ddd) any distribution of profit of a mutual fund or an alternative investment fund;]
(e) any payment by a private company of any sum (whether as representing a part of the assets of the company or otherwise) by way of advance or loan to a shareholder or any payment by any such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company, in either case, possesses accumulated profit;
but does not include-
(i) a distribution made in accordance with sub-clause (c) or sub-clause (d) in respect of any share including preference share for full cash consideration, or redemption of debentures or debenture-stock, where the holder of the share or debenture is not entitled in the event of liquidation to participate in the surplus assets;
(ii) any advance or loan made to a shareholder in the ordinary course of its business, where the lending of money is a substantial part of the business of the company;
(iii) any dividend paid by a company which is set off by the company against the whole or any part of any sum previously paid by it and treated as dividend within the meaning of sub-clause (e) to the extent to which it is so set off;
39[ (iiia) any bonus share issued by a company;]
40[ ***]
Explanation.- The expression "accumulated profits",-
(a) wherever it occurs in this clause, includes any reserve made up wholly or partly of any allowance, deduction or exemption admissible under this Ordinance or under the Income-tax Act, 1922 (XI of 1922), but does not include capital gains arising before the first day of April, 1946, or after the thirty-first day of March, 1949, and before the eighth day of June, 1963;
(b) as used in sub-clauses (a), (b) and (d), includes all profits of the company up to the date of such distribution; and
(c) as used in sub-clause (c), includes all profits of the company up to the date of its liquidation;
(27) "employer" includes a former employer;
(28) "employee", in relation to a company, includes the managing director, or any other director or other person, who, irrespective of his designation, performs any duties or functions in connection with the management of the affairs of the company;
41[(28A) “export” means supply of goods and services from inside to outside the geographical limits of Bangladesh and shall include supply of locally manufactured raw materials and other inputs to export oriented industry under internal back to back letter of credit;]
(29) "Extra Assistant Commissioner of Taxes" means a person appointed to be an Extra Assistant Commissioner of Taxes under section 3 42[ and includes a person appointed to hold current charge of an Extra Assistant Commissioner of Taxes];
43[ (30) "fair market value" means, in relation to capital asset 44[or a business or undertaking]-
(a) the price which such asset 45[or such business or undertaking] would ordinarily fetch on sale in the open market on the relevant day, and, where such price is not ascertainable, the price which the Deputy Commissioner of Taxes may, with the approval in writing of the Inspecting Joint Commissioner, determine;
(b) the residual value received from the lessee in case of an asset leased by a financial institution having license from the Bangladesh Bank on termination of lease agreement on maturity or otherwise subject to the condition that such residual value plus amount realised during the currency of the lease agreement towards the cost of the asset is not less than the cost of acquisition to the lessor financial institution.]
(31) "fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient, or consideration which would be income of the recipient classifiable under the head "Salaries" 46[ .
Explanation.- For the removal of doubts, it is hereby declared that in this clause, “fees for technical services” shall include technical services fee, technical assistance fee or any fee of similar nature;]
47[ (31A) "financial institution" has the same meaning as assigned to it in আর্থিক প্রতিষ্ঠান আইন, ১৯৯৩ (১৯৯৩ সনের ২৭ নং আইন) (Financial Institution Act, 1993) (Act No. 27 of 1993);]
(32) "firm" has the same meaning as assigned to it in the Partnership Act, 1932 (IX of 1932);
(33) "foreign company" means a company which is not a Bangladeshi company;
48[ (34) “income” includes-
(a) any income, receipts, profits or gains, from whatever source derived, chargeable to tax under any provision of this Ordinance;
(b) any amount which is subject to collection or deduction of tax at source under any provision of this Ordinance;
(c) any loss of such income, profits or gains;
(d) the profits and gains of any business of insurance carried on by a mutual insurance association computed in accordance with paragraph 8 of the Fourth Schedule;
(e) any sum deemed to be income, or any income accruing or arising or received, or deemed to accrue or arise or be received in Bangladesh under any provision of this Ordinance;
(f) any amount on which a tax is imposed;
(g) any amount which is treated as income under any provision of this Ordinance;]
49[ * * *]
50[ (35) 51[“income year” means financial year immediately preceding the assessment year and includes]
(a) the period beginning with the date of setting up of a business and ending with the thirtieth day of June following the date of setting up of such business;
(b) the period beginning with the date on which a source of income newly comes into existence and ending with the thirtieth day of June following the date on which such new source comes into existence;
(c) the period beginning with the first day of July and ending with the date of discontinuance of the business or dissolution of the unincor- porated body or liquidation of the company, as the case may be;
(d) the period beginning with the first day of July and ending with the date of retirement or death of a participant of the unincorporated body;
(e) the period immediately following the date of retirement, or death, of a participant of the unincorporated body and ending with the date of retirement, or death, of another participant or the thirtieth day of June following the date of the retirement, or death, as the case may be;
(f) in the case of bank, insurance or financial institution 52[ or any subsidiary thereof] the period of twelve months commencing from the first day of January of the relevant year; or
(g) in any other case the period of twelve months commencing from the first day of July of the relevant year 53[ :
Provided that the Deputy Commissioner of Taxes may allow a different financial year for a company which is a 54[ subsidiary, including a subsidiary thereof, or a holding company of a parent company incorporated outside Bangladesh or a branch or liaison office thereof] if such company requires to follow a different financial year for the purpose of consolidation of its accounts with the parent company;]
(36) "Inspecting Joint Commissioner" means a person appointed to be an Inspecting Joint Commissioner of Taxes under section 3 55[ , and includes 56[ an Inspecting Additional Commissioner of Taxes]] 57[ and also a person appointed to hold current charge of an Inspecting Joint Commissioner of Taxes];
58[ (37) " Inspector" means an Inspector of Taxes under section 3 and also includes a person appointed to hold charge of an Inspector of Taxes;]
(38) "Interest" means interest payable in any manner in respect of any money borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the money borrowed or debt incurred or in respect of any credit facility which has not been utilised;
(39) "legal representative" has the same meaning as assigned to it in section 2(11) of the Code of Civil Procedure, 1908 (Act V of 1908);
(40) "market value", in respect of agricultural produce, means-
(a) where such produce is ordinarily sold in the market in its raw state or after application to it of any process employed by a cultivator to render it fit to be taken to the market, t he value calculated according to the average price at which it has been sold during the year previous to that in which the income derived from such produce first becomes assessable; and
(b) where such produce is not ordinarily sold in the market in its raw state, the aggregate of-
(i) the expenses of cultivation;
(ii) the land development tax or rent paid for the lands in which it was grown; and
(iii) such amount as the Deputy Commissioner of Taxes finds, having regarded to the circumstances of each case, to represent a reasonable rate of profit on the sale of the produce in question as agricultural produce;
(41) "money borrowed" includes, in the case of a banking company, money received by way of deposit;
(42) "non-resident" means a person who is not a resident;
(43) "partner" has the same meaning as assigned to it in the Partnership Act, 1932 (IX of 1932), and includes a person who, being a minor, has been admitted to the benefits of partnership;
(44) "partnership" has the same meaning as assigned to it in the Partnership Act, 1932 (IX of 1932);
59[ (44A) “permanent establishment”, in relation to income from business or profession, means a place or activity through which the business or profession of a person is wholly or partly carried on, and includes-
(i) a place of management;
(ii) a branch;
(iii) an agency;
(iv) an office;
(v) a warehouse;
(vi) a factory;
(vii) a workshop;
(viii) a mine, oil or gas well, quarry or any other place of exploration, exploitation or extraction of natural resources;
(ix) a farm or plantation;
(x) a building site, a construction, assembly or installation project or supervisory activities in connection therewith;
(xi) the furnishing of services, including consultancy services, by a person through employees or other personnel engaged by the person for such purpose, if activities of that nature continue (for the same or a connected project) in Bangladesh; and
(xii) any associated entity or person (hereinafter referred to as “Person A”) that is commercially dependent on a non-resident person where the associated entity or Person A carries out any activity in Bangladesh in connection with any sale made in Bangladesh by the non-resident person;]
60[ (45) "perquisite" means-
(i) any payment made to an employee by an employer in the form of cash or in any other form excluding basic salary, festival bonus, incentive bonus 61[***], arrear salary, advance salary, leave encashment or leave fare assistance and overtime, and
(ii) any benefit, whether convertible into money or not, provided to an employee by an employer, called by whatever name, other than contribution to a recognised provident fund, approved pension fund, approved gratuity fund and approved superannuation fund;]
62[ 46) “person” includes an individual, a firm, an association of persons, a Hindu undivided family, a trust, a fund, a local authority, a company, an entity and every other artificial juridical person;
(46A) “person with disability” means an individual registered as প্রতিবন্ধী ব্যক্তি (person with disability) under section 31 of প্রতিবন্ধী ব্যক্তির অধিকার ও সুরক্ষা আইন, ২০১৩ (২০১৩ সনের ৩৯ নং আইন);]
(47) "prescribed" means prescribed by rules made under this Ordinance;
(48) "principal officer", used with reference to a local authority, a company, any other public body or any association of persons, includes-
(a) managing director, 63[ chief executive officer,] manager, secretary, treasurer, agent or accountant (by whatever designation known), or any officer responsible for management of the affairs, or of the accounts, of the authority, company, body or association; and
(b) any person connected with the management or the administration of the local authority, company, body or association upon whom the Deputy Commissioner of Taxes has served a notice of his intention to treat him as principal officer thereof;
(49) "profession" includes a vocation;
(50) "profits in lieu of salary" includes-
(a) the amount of compensation due to, or received by, an assessee from his employer at, or in connection with, the termination of, or the modification of any terms and conditions relating to, his employment; and
(b) any payment due to, or received by, an assessee from a provident or other fund to the extent to which it does not consist of contributions by the assessee and the interest on such contributions;
(51) "public servant" has the same meaning as in section 21 of the Penal Code (Act No. XLV of 1860);
(52) "recognised provident fund" means a provident fund which has been, and continues to be, recognised by the Commissioner in accordance with the provisions of Part B of the First Schedule;
64[ * * *]
(54) "relative", in relation to an individual, means the husband, wife, brother, sister or any lineal ascendant or descendant of that individual;
65[(54A)“research and development” means any systematic, investigative and experimental study that involves novelty or technical risk carried out in the field of science or technology with the object of acquiring new knowledge or using the results of the study for the production or improvement of materials, devices, products, produce, or processes, but does not include-
(a) quality control or routine testing of materials, devices or products;
(b) research in the field of social science including the arts and humanities;
(c) the creation or development of financial instruments or financial products;
(d) market research or sales promotion; routine data collection, efficiency surveys or management studies;
(e) routine modifications or changes to materials, devices, products, processes or production methods;
(f) cosmetic modifications or stylistic changes to materials, devices, products, processes or production methods; or
(g) the creation or enhancement of trademarks or goodwill;”;]
(55) "resident", in respect of any income year, means-
(a) an individual who has been in Bangladesh-
(i) for a period of, or for periods amounting in all to, one hundred and eighty-two days or more in that year; or
(ii) for a period of, or periods amounting in all to, ninety days or more in that year having previously been in Bangladesh for a period of, or periods amounting in all to, three hundred and sixty-five days or more during four years preceding that year;
(b) a Hindu undivided family, firm or other association of persons, the control and management of whose affairs is situated wholly 66[***] in Bangladesh in that year; 67[***]
(c) a Bangladeshi company or any other company the control and management of whose affairs is situated wholly in Bangladesh in that year;
68[ (d) a trust, a fund or an entity, the control and management of whose affairs is situated wholly in Bangladesh in that year; and
(e) a local authority and every other artificial juridical person;]
(56) "royalty" means consideration (including any lump sum consideration but excluding any consideration which is classifiable as income of the recipient under the head "Capital gains") for-
(a) transfer of all or any rights, including the granting of a licence, in respect of a patent, invention, model, design, mark or similar property;
(b) the imparting of any information concerning the working of, or the use of, a patent, invention, model, design, secret process or formula, or trade mark or similar property;
(c) the use of any patent, invention, model, design, secret process or formula, or trade mark or similar property;
(d) the imparting of any information concerning technical, industrial, commercial, or scientific knowledge, experience or skill;
(e) the transfer of all or any rights, including granting of a licence, in respect of any copyright, literacy, artistic or scientific work, including films or video tapes for use in connection with television or tapes for use in connection with radio broadcasting, but not including consideration for sale, distribution or exhibition of cinematograph films; or
(f) the rendering of any services in connection with any of the aforesaid activities;
69[Explanation 1.¾For the purpose of royalty in respect of any right, property or information, it is not necessary that¾
(i) the possession or control of such right, property or information is with the payer;
(ii) such right, property or information is used directly by the payer;
(iii) the location of such right, property or information is in Bangladesh.
Explanation 2.¾For the removal of doubts, it is hereby clarified that the expression “process” includes transmission by satellite (including up-linking, amplification, conversion for down-linking of any signal), cable, optical fibre or by any other similar technology, whether or not such process is secret;]
(57) "rules" means rules made under this Ordinance;
(58) "salary" includes-
70[ (a) any pay or wages;]
(b) any annuity, pension or gratuity;
(c) any fees, commissions, allowances, perquisites or profits in lieu of, or in addition to, salary or wages;
(d) any advance of salary;
71[ (e) any leave encashment;]
(59) "scheduled bank" has the same meaning as in the Bangladesh Bank Order, 1972 (P. O. No. 127 of 1972);
72[ ***]
(60) "shareholder" includes a preference shareholder;
(61) "speculation-business" means business in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scripts, but does not include business in which-
(a) a contract in respect of raw materials or merchandise is entered into by a person in the course of his manufacturing or mercantile business to guard against loss through future price fluctuations for the purpose of fulfilling his other contracts for the actual delivery of the goods to be manufactured or the merchandise to be sold by him;
(b) a contract in respect of stocks and shares is entered into by a dealer or investor therein to guard against loss in his holdings of stocks and shared through price fluctuations; and
(c) a contract is entered into by a member of a forward market or a stock exchange in the course of any transaction in the nature of jobbing or arbitrage to guard against loss which may arise in the ordinary course of his business as such member;
73[(61A) “supply of goods” means transfer of the right of goods by way of sale, exchange or otherwise including sale under hire purchase agreement or finance lease;]]
74[ (62) "tax" means the income tax payable under this Ordinance and includes any additional tax, excess profit tax, penalty, interest, fee or other charges leviable or payable under this Ordinance;]
75[ (62A) “Tax Day” means-
(i) in the case of an assessee other than a company, the thirtieth day of November following the end of the income year;
(ii) in the case of a company, the fifteenth day of the seventh month following the end of the income year 76[ or the fifteenth day of September following the end of the income year where the said the fifteenth day falls before the fifteenth day of September];
77[(iia) in the case of an assessee, who is an individual and has not submitted return before, the thirtieth day of June following the end of the income year;]
(iii) the next working day following the Tax Day if the day mentioned in 78[this clause] is a public holiday;]
79[ (62B) “taxed dividend” means the dividend income on which tax has been paid by the recipient under this Ordinance;]
80[ ***]
(64) "Tax Recovery Officer" means a person appointed to be a Tax Recovery Officer under section 3;
(65) "total income" means the total amount of income referred to in section 17 computed in the manner laid down in this Ordinance, and includes any income which, under any provision of this Ordinance, is to be included in the total income of an assessee;
81[ (65A) “trading account” or “profit and loss account” includes income statement and other similar statements of accounts prepared under International Financial Reporting Standards;]
(66) "transfer", in relation to a capital asset, includes the sale, exchange or relinquishment of the asset, or the extinguishment of any right therein, but does not include-
(a) any transfer of the capital asset under a gift, bequest, will or an irrevocable trust;
(b) any distribution of the assets of a company to its shareholders on its liquidation; and
(c) any distribution of capital assets on the dissolution of a firm or other association of persons or on the partition of a Hindu undivided family;
82[ * * *]
(68) "written down value" means the written down value as defined in the Third Schedule;
(69) "year" means a financial year.
Chapter II
ADMINISTRATION
Chapter III
TAXES APPELLATE TRIBUNAL
Chapter IV
CHARGE OF INCOME TAX
16. (1) Where an Act of Parliament provides that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall, subject to the provisions of that Act, be charged, levied, paid and collected in accordance with the provisions of this Ordinance in respect of the total income of the income year or income years, as the case may be, of every person:
Provided that where under the provisions of this Ordinance income-tax is to be charged in respect of the income of a period other than the income year, income-tax shall be charged, levied, paid and collected accordingly.
(2) Where under the provisions of this Ordinance income-tax is to be deducted at source, or paid or collected in advance, it shall be deducted, paid and collected accordingly.
129[(3) Notwithstanding anything contained in sub-section (1), income tax shall be charged at the rates specified in Chapter VII and the Second Schedule in respect of-
(i) any income classifiable under the head “Capital gains”;
(ii) any income by way of “dividend” referred to in clause (26) of section 2; and
(iii) any income by way of “winnings” referred to in section 19(13).]
130[16A. (1) Where any Act of Parliament enacts that a surcharge on income shall be charged for any assessment year at any rate or rates, such surcharge at that rate or those rates shall be charged for that year in respect of the total income of the income year or the income years, as the case may be, of every person.
(2) All the provisions of this Ordinance relating to charge, assessment, deduction at source, payment in advance, collection, recovery and refund of income tax shall, so far as may be, apply to the charge, assessment, deduction at source, payment in advance, collection, recovery and refund of the surcharge.]
131[132[16B. Charge of additional tax.-Notwithstanding anything contained in any other provision of this Ordinance, where any person employs or allows, without prior approval of the 133[appropriate authority of the Government], any individual not being a Bangladeshi citizen to work at his business or profession at any time during the income year, such person shall be charged additional tax at the rate of fifty percent (50%) of the tax payable on his income or taka five lakh, whichever is higher in addition to tax payable under this Ordinance.
16BB. Where under the provisions of this Ordinance any interest, amount or any other sum, by whatever name called, is to be charged in addition to tax, it shall be charged, levied, paid and collected accordingly.
16BBB. Where under the provisions of this Ordinance any minimum tax is to be charged, it shall be charged, levied, paid and collected accordingly.]
134[***]
135[***]
136[***]
16D. [Charge of dividend distribution tax- Omitted by section 10 of অর্থ আইন, ২০০৫ (২০০৫ সনের ১৬ নং আইন), which was inserted by section 18 of অর্থ আইন, ২০০৩ (২০০৩ সনের ১৭ নং আইন).]
137[***]
138[16F. Notwithstanding anything contained in this Ordinance or any other law for the time being in force, if in an income year, the amount of stock dividend declared or distributed exceeds the amount of cash dividend declared ordistrbuted or without declaration or distribution of any cash divided by a company registered under কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন) and listed to any stock exchange, tax shall be payable at the rate of ten per cent on the whole amount of stock dividend declared or distributed in that income year.
16G. Notwithstanding anything contained in this ordinance or any other law for the time being in force, if in an income year, the total amount transferred to retained earnings or any fund, reserve or surplus, called by whatever name, by a company registered under কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন) and listed to any stock exchange exceeds seventy per cent of the net income after tax, tax shall be payable at the rate of ten per cent on the total amount so transferred in that income year.]
139[16H. Where, in any income year, the assessee has, in the statements submitted by him,
(a) claimed to have carried on any import or export, and the amount paid or received for such import or export respectively, as shown in the statement, is found to be different from the actual transaction value, or
(b) claimed to have made any investment and the actual of investment is found to be lower than the amount of investment disclosed in the statement, tax, without prejudice to any other provisions of this Ordinance, shall be payable at the rate of fifty percent (50%) on the amount of the difference as mentioned in clause (a) or on the difference between the disclosed and the actual amount of investment as mentioned in clause (b), as the case maybe.]
19. (1) Where any sum is found credited in the books of an assessee maintained for any income year and the assessee offers no explanation about the nature and source thereof, or the explanation offered is not, in the opinion of the Deputy Commissioner of Taxes, satisfactory, the sum so credited shall be deemed to be his income for that income year classifiable under the head “Income from other sources”.
(2) Where, in any income year, the assessee has made investments or is found to be the owner of any bullion, jewellery or other valuable article and the Deputy Commissioner of Taxes finds that the amount expended on making such investments or in acquiring such bullion, jewellery or other valuable article exceeds the amount recorded in this behalf in the books of account maintained by the assessee for any source of income and the assessee offers no explanation about the excess amount or the explanation offered is not, in the opinion of the Deputy Commissioner of Taxes, satisfactory, the excess amount shall be deemed to be the income of the assessee for such income year classifiable under the head “Income from other sources”.
(3) Where, in any income year, the assessee has incurred any expenditure and he offers no explanation about the nature and source of the money for such expenditure, or the explanation offered is not in the opinion of the Deputy Commissioner of Taxes, satisfactory, the amount of the expenditure shall be deemed to be the income of the assessee for such income year classifiable under the head “Income from other sources”.
(4) Where, in the financial year immediately preceding the assessment year, the assessee has made investments which are not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of fund for the investments, or the explanation offered is not, in the opinion of the Deputy Commissioner of Taxes, satisfactory, the value of the investments shall be deemed to be the income of the assessee for such financial year classifiable under the head “Income from other sources”.
(5) Where, in the financial year immediately preceding the assessment year, the assessee is found to be the owner of any money, bullion, jewellery or other valuable article which is not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of fund for the acquisition of the money, bullion, jewellery or other valuable article, or the explanation offered is not, in the opinion of the Deputy Commissioner of Taxes, satisfactory, the money or the value of the bullion, jewellery or other valuable article, shall be deemed to be the income of the assessee for such financial year classifiable under the head “Income from other sources”.
(6) Any income derived by an assessee in any income year (hereinafter in this sub-section referred to as the said income year) from any business or profession, which has been or was, discontinued at any time before the commencement, or during the courses, of the said income year shall, if such income would have been chargeable to tax if it had been received in the income year in which it accrued or arose, be deemed to be income chargeable to tax from such business or profession which shall, for the purposes of this Ordinance, be deemed to have been carried on before the commencement, or during the course, of the said income year.
(7) Any dividend declared or distributed by a company shall be deemed to be the income of the 141[ income year in which it is received] and shall be included in the total income of the assessee of that year.
(8) Where any assets, not being stock-in-trade 142[***], are purchased by an assessee from any company and the Deputy Commissioner of Taxes has reason to believe that the price paid by the assessee is less than the fair market value thereof, the difference between the price so paid and the fair market value thereof, the difference between the price so paid and the fair market value shall be deemed to be income of the assessee classifiable under the head “Income from other sources”.
(9) Where any lump sum amount is received or receivable by an assessee during any income year on account of salami or premia receipts by virtue of any lease, such amount shall be deemed to be income of the assessee of the income year in which it is received and classifiable under the head “Income from other sources”:
Provided that at the option of the assessee such amount may be allocated for the purpose of assessment proportionately to the years covered by the entire lease period, but such allocation shall in no case exceed five years.
(10) Where any amount is received by an assessee during any income year by way of goodwill money or receipt in the nature of compensation or damages for cancellation or termination of contracts and licences by the Government or any person, such amount shall be deemed to be the income of such assessee for that income year classifiable under the head “Income from other sources”.
(11) Where any benefit or advantage, whether convertible into money or not, is derived by an assessee during any income year on account of cancellation of indebtedness 143[ * * *], the money value of such advantage or benefit shall be deemed to be his income for that income year classifiable under the head “Income from other sources” 144[ :
145[ Provided that the provisions of this sub-section shall not apply in case of a loan or interest waived in respect of an assessee 146[being individual] by a commercial bank including Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, 147[ Bangladesh Development Bank Ltd.], or a leasing company or a financial institution registered under আর্থিক প্রতিষ্ঠান আইন, ১৯৯৩ (১৯৯৩ সনের ২৭ নং আইন) 148[ :
Provided further that the provisions of this sub-section shall not apply in case of a benefit or advantage, of an assessee being an individual, not exceeding taka ten lakh resulting from the waiver of margin loan or interest thereof by a holder of Trading Right Entitlement Certificate (TREC) as defined under এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩ (২০১৩ সনের ১৫ নং আইন) in respect of the assessee’s investment in shares, debentures, mutual funds or securities transacted in the stock exchange;]
(12) Any managing agency commission including compensation received during any income year by an assessee for termination of agencies or any modification of the terms and conditions relating thereto shall be deemed to be his income for that income year classifiable under the head “Income from other sources”.
(13) Any amount received by an assessee during any income year by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting in any form or of any nature whatsoever shall be deemed to be his income for that income year classifiable under the head “Income from other sources”.
(14) Any profits and gains derived in any income year from any business of insurance carried on by a mutual insurance association computed in accordance with the provisions of paragraph 8 of the Fourth Schedule shall be deemed to be the income of such association for that income year.
(15) Where, for the purpose of computation of income of an assessee under section 28, any deduction has been made for any year in respect of any loss, bad debt, expenditure or trading liability incurred by the assessee, and-
(a) subsequently, during any income year, the assessee has received 149[ except as provided in clause (aa)], whether in cash or in any other manner whatsoever, any amount in respect of such loss, bad debt, or expenditure, the amount so received shall be deemed to be his income from business or profession during that income year;
150[ (aa) such amount on account of any interest which was to have been paid to any commercial bank or the 151[ Bangladesh Development Bank Ltd].or on account of any share of profit which was to have been paid to any bank run on Islamic principles and which was allowed as a deduction in respect of such expenditure though such interest or share of profit was not paid by reason of the assessee having maintained his accounts on mercantile basis, within 152[ three years] after expiry of the income year in which it was allowed, shall, to such extent as it remains unpaid, be deemed to be income of the assessee from business or profession during the income year immediately following the expiry of the said 153[ three years;]
(b) the assessee has derived, during any income year, some benefit in respect of such trading liability, the value of such benefit, if it has not already been treated as income under clauses (c), shall be deemed to be his income from business or profession during that income year;
(c) such trading liability or portion thereof as has not been paid within three years of the expiration of the income year in which deduction was made in respect of the liability, such liability or portion, as the case may be, shall be deemed to be the income of the assessee from business or profession during the income year immediately following the expiry of the said three years;
and the business or profession in respect of which such allowance or deduction was made shall, for the purposes of section 28, be deemed to be carried on by the assessee in that year:
154[ Provided that where any interest or share of profit referred to in clause (aa) or a trading liability referred to in clause (c) is paid in a subsequent year, the amount so paid shall be deducted in computing the income in respect of that year.]
(16) Where any building, machinery or plant having been used by an assessee for purpose of any business or profession carried on by him is disposed of during any income year and the sale proceeds thereof exceeds the written down value, so much of the excess as does not exceed the difference between the original cost and the written down value shall be deemed to be the income of the assessee for that income year classifiable under the head “Income from business or profession”.
(17) Where any machinery or plant exclusively used by an assessee for agricultural purposes has been disposed of in any income year and the sale proceeds thereof exceeds the written down value, so much of the excess as does not exceed the difference between the original cost and the written down value shall be deemed to be the income of the original cost and the written down value shall be deemed to be the income of the assessee for that income year classifiable under the head “Agricultural income”.
(18) Where any insurance, salvage or compensation moneys are received in any income year in respect of any building, machinery or plant which having been used by the assessee for the purpose of business or profession is discarded, demolished or destroyed and the amount of such moneys exceed the written down value of such building, machinery or plant, so much of the excess as does not exceed the difference between the original cost and the written down value less the scrap value shall be deemed to be the income of the assessee for that income year classifiable under the head “Income from business or profession”.
(19) Where any insurance, salvage or compensation moneys are received in any income year in respect of any machinery or plant which having been used by the assessee exclusively for agricultural purpose is discarded, demolished or destroyed and the amount of such moneys exceed the written down value of such machinery or plant, so much of the excess as does not exceed the difference between the original cost and the written down value less the scrap value shall be deemed to be the income of the assessee for that income year classifiable under the head “Agricultural income”.
(20) Where an asset representing expenditure of a capital nature on scientific research within the meaning of section 29 (1) (xx) is disposed of during any income year, so much of the sale proceeds as does not exceed the amount of the expenditure allowed under the said clause shall be deemed to be the income of the assessee for that income year classifiable under the head “Income from business or profession”.
Explanation 1.- For the purposes of this sub-section and sub-sections (16) and (17), “sale proceeds” shall have the same meaning as in the Third Schedule.
Explanation 2.- For the purposes of this sub-section and sub-sections (16) and (18), the business or profession in which the building, machinery, plant or assets, as the case may be, was used before its disposal, shall be deemed to be carried on by the assessee during the income year in which such disposal takes place.
155[ 156[ (21) Where any sum is claimed or shown to have been received as loan 157[, advance or deposit of any kind called by whatever name,] or gift by an Assessee otherwise than by a bank transfer, the amount so received shall be deemed to be the income of such Assessee for the income year in which such loan 158[, advance or deposit of any kind called by whatever name,] or gift was received, and shall be classifiable under the head “Income from other sources”:
Provided that-
(a) where a loan or part thereof, which was deemed as the income under this sub-section and included in the total income of the Assessee, is repaid 159[or converted into consideration for any goods or services] in a subsequent income year, the amount so repaid 160[or converted into consideration for any goods or services] shall be deducted in computing the income of the Assessee for that income year;
(b) a loan shall not be deemed to be an income under this sub-section if the loan is taken from a banking company or a financial institution;
161[(bb) deposits received by a Bank or a financial institution or an organization registered with Micro Credit Regulatory Authority or NGO Affairs Bureau shall not be deemed to be an income under this sub-section.]
(c) a loan or a gift received by an Assessee, being an individual, shall not be deemed to be the income under this sub-section, if-
(i) the aggregate amount of such loan or gift received in an income year does not exceed five lakh taka; or
(ii) the loan or the gift is received from spouse or parents 162[or sons or daughters] of the Assessee, and a banking channel or a formal channel is involved in the process of such loan or gift.
163[***]
164[ ***]
165[ ***]
(22) Where an assessee, being the owner of a house property, receives from any person to whom such house property or any part thereof is let out any amount which is not adjustable against the rent payable, the amount so received shall be deemed to be income of the assessee for the income year in which it is received and be classifiable under the head “income from house property”:
Provided that at the option of the assessee such amount may be allocated, for the purpose of assessment in equal proportion to the year in which such amount is received and the four years next following:
Provided further that where such amount or part thereof is refunded by the assessee in a subsequent income year the amount so refunded shall be deducted in computing the income of the assessee in respect of that income year.
166[(22A) Where an assessee, being the owner of a house property, recieved, from any person to whom such house property or any part thereof is let out, any amount exceeding taka 2 lakh other than bank transfer which is adjustable against the rent receivable, the amount shall be deemed to be the “Income from house property” of the assessee for the income year in which it is received:
Provided that where such amount is received through bank transfer, the amount shall be adjusted within five years after the year of receipt or the period of agreement whichever is lower, if after the expiry of the aforesaid period such amount or any part thereof remains unadjusted, the amount remained so unadjusted shall be deemed to be the “Income from house property” of the assessee in the income year in which such amount remains unadjusted.]
Explanation.¾In this sub-section, “bank transfer” means transfer from the account of the giver to the account of the receiver, and such accounts are maintained in a bank or financial institution legally authorised to operate accounts.]]
(23) Where during any income year an assessee, being an exporter of garments, transfers to any person, the export quota or any part thereof allotted to him by the Government, such portion of the export value of the garments exportable against the quota so transferred as may be prescribed for this purpose shall be deemed to be income of the assessee for that income year, classifiable under the head “Income from business or profession”.]
167[ 168[ (24) Where a company, not listed with any stock exchange, receives paid up capital from any shareholder during any income year in any other mode excepting by crossed cheque or bank transfer, the amount so received as paid up capital shall be deemed to be the income of such company for that income year and be classifiable under the head "Income from other sources".]
169[ ***]]
(27) Where an assessee, being a company, purchases directly or on hire one or more motor car or jeep and value of any motor car or jeep exceeds ten percent of its 172[ paid up capital together with reserve and accumulated profit], then fifty percent of the amount that exceeds such ten percent of the 173[ paid up capital together with reserve and accumulated profit] shall be deemed to be the income of such assessee for that income year classifiable under the head "Income from other sources".]
174[ ***]
175[ (29) Where an assessee, not being an assessee engaged in real estate business during any income year, purchases on credit any material for the purpose of construction of building or house property or its unit and fails to pay the sum or any part thereof representing the liability in respect of such purchase, the sum or any part thereof, 176[ which has not been paid within two years from the end of the income year in which the purchase was made, shall be deemed to be the income of the assessee for the income year immediately following the expiry of the said two years and be classifiable under the head "Income from other sources”].
(30) Where an assessee, in the course of any proceedings under this Ordinance, is found to have any sum or part thereof allowed or deducted but not spent in accordance with the provision of clause (h) of sub-section (1) of section 25 of this Ordinance, such unspent sum or part thereof shall be deemed to be the income of such assessee for that income year classifiable under the head “Income from house property”.
177[ (31) Where an assessee files a revised return or an amended return under sections 78, 82BB or 93 and shows in such revised return or amended return any income that is subject to tax exemption or a reduced tax rate 178[or any income derived from the sources mentioned in paragraph 33 of Part A of THE SIXTH SCHEDULE], so much of such income as exceeds the amount shown in the original return shall be deemed to be income of the assesseefor that income year classifiable under the head "Income from other sources.]]
179[Explanation.¾For the purpose of this sub-section income that is subject to tax exemption or a reduced tax rate does not include the exclusions from total income as mentioned in PART A of the THE SIXTH SCHEDULE]
180[(32) Where any payment made for acquiring any asset or constitutes any asset and tax has not been deducted therefrom in accordance with Chapter VII, such payment shall be deemed to be the income of the person responsible for making the payment under this Ordinance and classifiable under the head “Income from other source” in the income year in which the payment was made.]]
184[****]
185[***]
186[19AAAAAA. 1. Notwithstanding anything contained in this Ordinance or any other law for the time being in force, no question as to the source of any sum, if invested in between first day of July, 2021 and thirtieth day of June, 2022 (both days inclusive), in new industrial undertaking shall be raised by any authority if an individual pays on or before the thirtieth day of June, 2022, tax at the rate of ten percent (10%) on the sum so invested.
2. Tax under this section shall only be payable by pay order or by automated challan, as the case may be.]
187[***]
188[***]
189[***]
190[***]
192[19BBBBB. (1) Notwithstanding anything contained in this Ordinance, source of any sum invested by any person, in the construction or purchase of any 193[building] or apartment shall be deemed to have been explained if the assessee pays, before the assessment for the relevant assessment year in which the investment is completed, tax at the following rate –
(a) for building or apartment situated in the area of Gulshan Model Town, Banani, Baridhara, Motijheel Commercial Area and Dilkusha Commercial Area of Dhaka¾
(i) taka four thousand per square meter in the case of a building or an apartment the plinth area of which does not exceed two hundred square meter;
(ii) taka five thousand per square meter in the case of a building or an apartment the plinth area of which exceeds two hundred square meter;
(b) for building or apartment situated in the area of Dhanmandi Residential Area, Defence Officers Housing Society (DOHS), Mahakhali, Lalmatia Housing Society, Uttara Model Town, Bashundhara Residential Area, Dhaka Cantonment, Kawran Bazar, Bijaynagar, Segunbagicha, Nikunja of Dhaka, and Panchlaish, Khulshi, Agrabad and Nasirabad Area of Chattogram¾
(i) taka three thousand per square meter in the case of a building or an apartment the plinth area of which does not exceed two hundred square meter;
(ii) taka three thousand and five hundred per square meter in the case of a building or an apartment the plinth area of which exceeds two hundred square meter;
(c) for building or apartment situated in the area of any City Corporation other than areas mentioned in clauses (a) or (b)¾
(i) taka eight hundred per square meter in the case of a building or an apartment the plinth area of which does not exceed one hundred and twenty square meter;
(ii) taka one thousand per square meter in the case of a building or an apartment the plinth area of which exceeds one hundred and twenty square meter but does not exceed two hundred square meter;
(iii) taka one thousand and five hundred per square meter in the case of a building or an apartment the plinth area of which exceeds two hundred square meter;
(d) for building or apartment situated in the area of a Paurasabha of any district headquarters¾
(i) taka three hundred per square meter in the case of a building or an apartment the plinth area of which does not exceed one hundred and twenty square meter;
(ii) taka five hundred per square meter in the case of a building or an apartment the plinth area of which exceeds one hundred and twenty square meter but does not exceed two hundred square meter;
(iii) taka seven hundred per square meter in the case of a building or an apartment the plinth area of which exceeds two hundred square meter;
(e) for building or apartment situated in the area other than the areas mentioned in clauses (a) to (d)¾
(i) taka two hundred per square meter in the case of a building or an apartment the plinth area of which does not exceed one hundred and twenty square meter;
(ii) taka three hundred per square meter in the case of a building or an apartment the plinth area of which exceeds one hundred and twenty square meter but does not exceed two hundred square meter;
(iii) taka five hundred per square meter in the case of a building or an apartment the plinth area of which exceeds two hundred square meter;
(2) The rate of tax mentioned in sub-section (1) shall be twenty per cent higher in case where the assessee already owns a building or an apartment in any City Corporation before such investment is completed; or the assessee makes such investment in two or more buildings or apartments.
(3) The rate of tax mentioned in sub-section (1) shall be one hundred per cent higher in case, where¾
(a) a notice under section 93 has been issued before submission of such return of income for the reason that any income, asset or expenditure has been concealed or any income or a part thereof has escaped assessment;
(b) a notice under clause (f) of section 113 has been issued before submission of such return of income;
(c) any proceeding under sections 164, 165 or 166 has been initiated before submission of such return of income.
(4) The provision of this section shall not apply where the source of such investment, made by the assessee for the construction or purchase of such 194[building] or apartment, is¾
(a) derived from any criminal activities under any other law for the time being in force; or
(b) not derived from any legitimate source.]
195[19C.- Notwithstanding anything contained in any other provision of this Ordinance, no question as to the source of any sum invested by any person in the purchase of bond issued or caused to be issued under Bangladesh Infrastructure Finance Fund during the period between the first day of July, 2010 and thirtieth day of June, 2012 (both days inclusive), shall be raised if the assessee pays, before the filing of return of income for the relevant income year, tax at the rate of ten per cent on such sum invested.]
196[* * *]
197[19DD. Notwithstanding anything contained in this Ordinance or any other law for the time being in force, no question shall be raised as to the source of any sum invested in any economic zone declared under section 5 of বাংলাদেশ অর্থনৈতিক অঞ্চল আইন, ২০১০ (২০১০ সনের ৪২ নং আইন) or in any hi-tech park declared under section 22 of বাংলাদেশ হাই-টেক পার্ক কর্তৃপক্ষ আইন, ২০১০ (২০১০ সনের ৮নং আইন) for setting up industrial undertaking engaged in producing goods or services therein within the period from the first day of July, 2019 and the thirtieth day of June, 2024 (both days inclusive) by a company, if tax at the rate of ten per cent is paid on the sum so invested before filing of the return for the concerned income year.]
198[19E. (1) Notwithstanding anything contained in this Ordinance, any person-
(a) who has not been assessed to tax for previous assessment year or years and he has not submitted return of income for those year or years may disclose such income in the respective heads of income in the return of income along with the income for the current assessment year; or
(b) who has been assessed to tax for previous assessment year or years and any income has escaped assessment in those assessments or the amount of income assessed is less than the actual income, may disclose that income for respective heads of income in the return of income along with the income for the current assessment year.
(2) Return of income mentioned in sub-section (1) shall be treated as valid, if-
(a) the assessee pays before the submission of return-
(i) tax payable at applicable rate on total income including such income under respective heads of income; and
(ii) penalty at the rate of ten percent of tax proportionate to such income under respective heads of income;
(b) the return of income is submitted within the time specified in 199[sub-section (5)] of section 75; and
(c) a declaration is enclosed with the return of income in respect of the following:
(i) name of the person declaring;
(ii) head of the declared income and amount thereof; and
(iii) amount of tax and penalty paid thereof.
(3) The provision of this section shall not apply where-
200[(a) a notice under section 93 has been issued before submission of such return of income for the reason that any income, assets or expenditure has been concealed or any income or a part thereof has escaped assessment;]
(b) a notice on a banking company under clause (f) of section 113 has been issued before submission of such return of income;
(c) any proceeding under sections 164, 165 or 166 has been initiated before submission of such return of income; 201[***]
(d) any income declared under this section is-
(i) not derived from any legitimate source of income; or
(ii) derived from any criminal activities under any other law for the time being in force202[;or
(e) any income declared under this section which is –
(i) exempted from tax in the concerned income year; or
(ii) chargeable to tax at a reduced rate in accordance with section 44 of this Ordinance.
(4) The income shown under this section may be invested in any income generating activities or any sector including the following:
(a) industrial undertaking including its expansion;
(b) balancing, modernization, renovation and extension of an existing industry;
(c) building or apartment or land;
(d) securities listed with a Stock Exchange in Bangladesh; or
(e) any trade, commercial, or industrial venture engaged in production of goods or services.]
203[19F. (1) Notwithstanding anything contained in this Ordinance or any other law for the time being in force, no question as to the source of the undisclosed asset located outside of Bangladesh shall be raised by any authority if an assessee pays, before the submission of return of income applicable for the assessment year 2022-2023, tax at the rate specified in the following table:
Table
|
Description of the Asset |
Rate of tax |
|
Any cash or cash equivalents, bank deposits, bank notes, bank accounts, convertible securities and financial instruments if repatriated to Bangladesh through banking channel |
7% |
(2) Where an assessee repatriates any sum from abroad under the scheme of this section, the bank responsible for crediting to the account of the assessee shall deduct tax in accordance with sub-section (1) before crediting and give a certificate of such deduction to the assessee.
Subject to sub-section (2), tax under this section shall only be paid by automated challan.
The provisions of this section shall not apply to cases where any proceeding has been drawn on account of tax evasion or criminal activities under any provision of this Ordinance or any other law by thirtieth June, 2022.
For the purpose of this section, “return” shall include amended return under section 82BB or revised return under section 78 and be submitted by thirtieth day of June, 2023.
204[19G. (1) Without prejudice to any other liability which may incur under any other provision of this Ordinance and any other law for the time being in force, where any person being a resident Bangladeshi is found to be the owner of any offshore asset not disclosed in the return and the assessee offers no explanation about the nature and source thereof or the explanation offered is not satisfactory, the Deputy Commissioner of Taxes shall, after ensuring a reasonable opportunity of being heard, proceed to recover from such person the amount of penalty equal to the fair value of such offshore asset.
(2) The Deputy commissioner of Taxes shall have the authority to recover the penalty under this section by confiscating or selling any asset held by or on behalf of the assessee.
(3) The Deputy of Commissioner of Taxes shall have the power to conduct an offshore investigation, where he has reason to believe that an assessee has offshore assets not disclosed in the return.
(3) To prevent holding undisclosed offshore asset and to recover such undisclosed asset, the Board shall have the power to-
(a) take necessary action as it deems fit; or
(b) allow, conduct, permit, arrange an inquiry or investigation by any income tax authority not being below the rank of Deputy Commissioner of Taxes.
Chapter V
COMPUTATION OF INCOME
28. (1) The following income of an assessee shall be classified and computed under the head "Income from business or profession", namely:-
(a) profits and gains of any business or profession carried on, or deemed to be carried on, by the assessee at any time during the income year;
(b) income derived from any trade or professional association or other association of like nature on account of specific services performed for its members;
(c) value of any benefit or perquisite, whether convertible into money or not, arising from business or the exercise of a profession;
(d) the amount, the value of the benefit and the trading liability referred to in section 19(15);
(e) the excess amount referred to in section 19(16);
(f) the excess amount referred to in section 19(18);
(g) the sale proceeds referred to in section 19(20) 217[;
(h) the amount of income under section 19 (23)218[;
219[(i) the shortfall of capital referred to in sub-section (12) of section 82BB.]
Explanation.- Where speculative transactions carried on by an assessee are of such a nature as to constitute a business, the business (hereinafter referred to as "speculation business") shall be deemed to be distinct and separate from any other business.
(2) Notwithstanding anything contained in this Ordinance,-
(a) the profits and gains of any business of insurance and the tax payable thereon shall be computed in accordance with the provisions of the Fourth Schedule;
(b) the profits and gains from the exploration and production of petroleum (including natural gas) and the tax payable thereon shall be computed in accordance with the provisions of Part A of the Fifth Schedule;
(c) the profits and gains of any business which consists of, or includes, the exploration and extraction of such mineral deposits of a wasting nature (not being petroleum and natural gas) as may be specified in this behalf by the Government, carried on by an assessee in Bangladesh shall be computed in accordance with the provisions of Part B of the Fifth Schedule.
220[(3) Notwithstanding anything to the contrary contained in any other provisions of the Ordinance, in the case of 221[Bangladesh Development Bank Ltd] 222[, Investment Corporation of Bangladesh 223[,any financial institution]] and any commercial bank including the Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank, the income by way of interest in relation to such categories of bad or doubtful debts as the Bangladesh Bank may classify in the income year in which it is credited to its profit and loss account for that year or, as the case may be, in which it is actually received whichever is earlier.]
29. (1) In computing the income under the head "Income from business or profession", the following allowances and deductions shall be allowed, namely:-
(i) the amount of any rent paid for the premises in which the business or profession is carried on:
Provided that if a substantial part of the premises is used by the assessee as a dwelling-house, the amount shall be a proportionate part of the rent having regard to the proportionate annual value of the part so used;
(ii) the amount paid for the repair of the hired premises in which the business or profession is carried on if the assessee has undertaken to bear the cost of such repair:
Provided that if a substantial part of the premises is used by the assessee as a dwelling-house, the amount shall be a proportionate part of the sum paid for such repair having regard to the proportionate annual value of the part so used;
(iii) the amount of any interest paid or any profit shared with a bank run on Islamic principles in respect of capital borrowed for the purposes of the business or profession:
Provided that if any part of such capital relates to replenishing the cash or to any other asset transferred to 224[any other entity, when lending of money is not the business of transfer or], the amount shall be proportionate part of the interest so paid or the profit so shared having regard to the proportion of such capital so used;
(iv) any sum paid or credited to any person maintaining a profit and loss sharing account or deposit with a bank run on Islamic principles by way of distribution of profits by the said bank in respect of the said account of deposit;
225[***]
(vi) the amount paid on account of current repairs to buildings, machinery, plant or furniture used for the purpos
(vii) the whole or the proportionate part of the amount of any premium paid for insurance, against risk of damage, destruction or loss of buildings, machinery, plant or furniture, stocks or stores according as the whole or part thereof is used for the purposes of the business or profession;
(viii) in respect of depreciation of building, machinery, plant or furniture, being the property of the assessee 226[or bridge or road or fly over owned by a physical infrastructure undertaking] and used for the purposes of business or profession, the allowances as admissible under the Third Schedule;
227[(viiia) in respect of amortization of license fees as admissible under the Third Schedule;]
(ix) in the case of a ship, being a passenger vessel plying ordinarily on inland waters, or a fishing trawler, which is entitled to a special depreciation allowance under paragraph 8 of the Third Schedule, an investment allowance of an amount equivalent to twenty per cent of the original cost to the assessee for the year in which the ship or the trawler is first put to use for public utility;
228[* * *]
229[* * *]
(xi) where any building, machinery 230[, plant or any other fixed asset not being imported software] which, after having been used by the assessee for the purpose of his business, has been discarded, demolished or destroyed in any income year or any such asset has been sold, transferred by way of exchange or compulsorily acquired by a legally competent authority or exported outside Bangladesh in any income year, an obsolescence allowance to the extent and computed in the manner specified in paragraph 10 of the Third Schedule;
((xii) in the case of any animal which has been used by the assessee for the purpose of business or profession otherwise than as stock-in-trade, has died or become permanently useless for such purpose, an amount equivalent to the difference between the original cost of the animal to the assessee and the sum, if any, realised by sale or other disposition of the carcass, as the case may be, of the animal;
(xiii) any sum paid on account of land development tax or rent, local rates or municipal taxes in respect of such premises or part thereof as is used by the assessee for the purpose of business or profession;
(xiv) any sum paid in the income year to an employee as bonus or commission for services rendered where such sum would not have been payable to him as profits or dividend if it had not been paid as bonus or commission and is reasonable with reference, except in the case of payment of festival bonus, to-
(a) the general practice in similar business or profession,
(b) the profits of the business or profession in that year, and
(c) the pay and other conditions of service of the employee.
231[* * *]
(xv) the amount of any debt or part thereof which is established to have become irrecoverable and has actually been written off as such in the books of accounts of the assessee for the income year if the debt or part thereof has been taken into account in computing the income of the assessee of that income year or an earlier income year and, in the case of the business of banking or money-lending carried on by the assessee, represents money lent in the ordinary course of business;
(xvi) where any amount of debt or part thereof which has actually been written off as irrecoverable in the books of accounts of the assessee in any income year but has not been allowed on the ground that it has not then become irrecoverable, so much of such debt or part thereof as has been established to have become irrecoverable in any subsequent income year shall be allowed as a deduction in that income year;
(xvii) where any such debt or part thereof is written off as irrecoverable in the books of accounts of the assessee for an income year and the Deputy Commissioner of Taxes is satisfied that such debt or part thereof became irrecoverable in an earlier income year not falling beyond a period of four years immediately preceding the income year in which it was written off, the Deputy Commissioner of Taxes may, notwithstanding anything contained in this Ordinance, allow such debt or part thereof as a deduction for such earlier income year if the assessee accepts such finding of the Deputy Commissioner of Taxes and re-compute the total income of the assessee for such earlier income year and make the necessary amendment; and the provisions of section 173 shall, so far as may be, apply thereto the period of four years referred to in 232[the proviso of sub-section (1)] of that section being reckoned from the end of the year in which the assessment relating to the income year in which the debt or part thereof is written off was made;
233[* * *]
234[(xviiia) in respect of provision for bad and doubtful debt made by 235[Bangladesh Development Bank Ltd] for overdue loan, a sum equal to five per cent of such overdue loan or the amount of actual provision for such bad or doubtful debt in the books of the assessee, whichever is the less:
Provided that the deduction shall be allowed only in respect of the assessment years 1987-88, 1988-89, 1989-90 and 1990-91:
Provided further that if any amount out of the amount so allowed is ultimately recovered, the same shall be deemed to be a profit of the year in which it is recovered;]
236[(xviiiaa) in respect of provision for bad and doubtful debt and interest thereon made by a commercial bank including the Bangladesh Krishi Bank 237[, Karmo shongsthan Bank] and the Rajshahi Krishi Unnayan Bank, a sum equal to 238[one per cent] of the total outstanding loan including interest thereon or the amount of actual provision for such bad or doubtful debt and interest thereon in the books of the assessee, whichever is less:
Provided that the provisions of this clause shall apply only in respect of such loan as the Bangladesh Bank may, from time to time, classify as bad or doubtful debt:
239[Provided further that the deduction shall be allowed only in respect of the assessment years 1990-91, 1991-92, 1992-93, 1993-94, 1994-95 240[,1995-96, 1996-97, 1997-98, 1998-99] 241[, 1999-2000, 2000-2001 242[, 2001-2002, 2002-2003, 2003-2004 243[, 2004-2005, 2005-2006 and 2006-2007]]:
Provided further that if any amount out of the amount so allowed is ultimately recovered, the same shall be deemed to be a profit of the year in which it is recovered 244[:
Provided further that no deduction under this clause shall be allowed in respect of-
(a) any amount representing grant allowed by the Government in the form of 15-year Special Treasury Bonds;
(b) any loan advanced to any Government organisation, body corporate, local authority, autonomous body, or any other loan guaranteed by the Government; and
(c) any debt representing loans advanced to any director of the bank, his nominees or dependants 245[;
246[* * *]
(xix) any expenditure, not being in the nature of capital expenditure, laid out or expended on 247[research and development] in Bangladesh related to the business carried on by the assessee;
(xx) any expenditure of a capital nature laid out or expended on 248[research and development] in Bangladesh related to the business carried on by the assessee:
Provided that where a deduction is allowed for any income year under this clause in respect of expenditure represented wholly or partly by any asset, no deduction shall be allowed under clause (viii) or (ix) for the same income year in respect of that asset;
(xxi) any sum paid to a scientific research institute, association or other body having as its object the undertaking of scientific research, or to a University, College, Technical School or other Institution for the purpose of scientific research or technical training related to the class of business carried on by the assessee, if such Institute, association or body, or such University, College, Technical School or Institution is, for the time being, approved by the Board for the purpose of this clause.
Explanation.- In this clause 249[***],-
(a) "scientific research" means any activities in the field of natural or applied science for the extension of knowledge;
(b) references to expenditure incurred on scientific research do not include any expenditure incurred in the acquisition of rights in, or arising out of, scientific research, but save as aforesaid, include all expenditure incurred for the prosecution of, or the provision of facilities for the prosecution of, scientific research;
(c) reference to scientific research related to a business or class of business includes-
(i) any scientific research which may lend to or facilitate an extension of that business or, as the case may be, all businesses of that class;
(ii) any scientific research of a medical nature which has a special relation to the welfare of workers employed in that business or, as the case may be, business of that class;
(xxii) any expenditure, not being in the nature of capital expenditure, laid out or expended on any educational institution or hospital established for the benefit of the employees of the assessee, their families and dependents or on the training of industrial workers, if-
(a) no charge is made for services rendered by such institution or hospital or for the training of the workers; and
(b) no deduction or allowance is claimed for such expenditure under any other clause of this section;
(xxiii) any expenditure in the nature of capital expenditure laid out or expended on the construction and maintenance of any educational institution or hospital established by the assessee for the benefit of his employees, their families and dependents, or on any institute for the training of industrial workers, if-
(a) no charge is made for the services rendered by such institution or hospital or for the training of the workers; and
(b) no deduction or allowance is claimed under any other clause of this section for the same income year in respect of expenditure represented either wholly or partly by any asset;
(xxiv) any expenditure laid out or expended on the training of citizens of Bangladesh in connection with a scheme approved by the Board for purposes of this clause;
(xxv) any expenditure, not being in the nature of capital expenditure or personal expenses, incurred by an assessee in connection with visits abroad as a member of a trade delegation sponsored by the Government;
(xxvi) any sum paid on account of annual membership subscription to a registered trade organisation within the meaning of the Trade Organisations Ordinance, 1961(XLV of 1961), or to a professional institution recognised by the Board in this behalf;
(xxvii) any expenditure, not being in the nature of capital expenditure or personal expenses of the assessee, laid out or expended wholly and exclusively for the purpose of the business or profession of the assessee.
(2) Where any premises, building, machinery, plant or furniture is not wholly used for the purposes of business or profession, any allowance or deduction admissible under this section shall be restricted to the fair proportional part of the amount which would be allowable if such premises, building, machinery, plant or furniture was wholly so used.
Explanation.- For the purposes of this section, the expression "plant" includes ships, vehicles, books, scientific apparatus and surgical and other instruments or equipments used for the purpose of business or profession.
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;
251[ (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 252[ ***],]
253[ (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;]
254[ (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";
255[ (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 256[ 257[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;
258[***] and
(iv) distribution of free samples;
259[ (g) any expenditure exceeding ten per cent of the 260[ net profit disclosed in the statement of accounts] 261[ 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);
262[ (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:
|
(i) For the first three income years from the commencement of the business or profession |
Ten percent (10%) of the 263[net profit from business or profession, excluding any profit or income of subsidiary or associate or joint venture, ] disclosed in the statement of accounts; |
|
(ii) For subsequent income years |
Eight percent (8%) of the 264[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 265[***] bank transfer by a person to any employee having gross monthly salary of taka 266[twenty] thousand or more;
267[(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 268[ net profit disclosed in the statement of accounts];
(k) any expenditure by way of overseas traveling exceeding 269[zero point five zero percent (0.50%)] of the disclosed 270[business] turnover 271[ 272[ :
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;
273[(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;] 274[ ;
(n) any payment by way of any rent of any property, whether used for commercial or residential purposes, otherwise than by 275[***] bank transfer 276[ ;
(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.]
277[(p) any promotional expense exceeding zero point five zero percent (0.50%) of the disclosed business turnover.
278[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.
279[***]]
280[30B. Notwithstanding anything contained in section 82C or any loss or profit computed under the head “Income from business or profession”, the amount of disallowances made under section 30 shall be treated separately as “Income from business or profession” and the tax shall be payable thereon at the regular rate.]
282[31A. Tax shall be payable by an assessee on “capital gains from the transfer of business or undertaking” in respect of any profits and gains arising from the transfer of business or undertaking in its entirety with all of its assets and liabilities and such profits and gains shall be deemed to be the income of the assessee in respect of the income year during which the transfer takes place.]
32. (1) The income under the head “Capital gains” shall be computed after making the following deduction from the full value of the consideration received or accruing from the transfer of the capital asset or the fair market value thereof, whichever is higher, namely:-
(a) any expenditure incurred solely in connection with the transfer of the capital asset; or
(b) the cost of acquisition of the capital asset and any capital expenditure incurred for any improvements thereto but excluding any expenditure in respect of which any allowance is admissible under any provisions of sections 23, 29 and 34.
(1A) [Omitted by section 4 of অর্থ আইন, ১৯৯৬ (১৯৯৬ সনের ১৮ নং আইন).]
(2) For the purpose of this section, “cost of acquisition of the capital asset” means-
(i) where it was acquired by the assessee by purchase, the actual cost of acquisition; and
(ii) where it became the property of the assessee-
283[ * * *]
(cc) under a deed of gift, bequest or will; or
(ccc) under a transfer on a revocable or irrevocable trust; or]
(d) on any distribution of capital assets on the liquidation of a company; or
(e) on any distribution of capital assets on the dissolution of a firm or other association of persons or the partition of a Hindu undivided family;
the actual cost of acquisition to the previous owner of the capital asset as reduced by the amount of depreciation, if any, allowed to the previous owner; and where the actual cost of acquisition to the previous owner cannot be ascertained, the fair market value at the date on which the capital asset became the property of the previous owner:
Provided that where the capital asset is an asset in respect of which the assessee has obtained depreciation allowance in any year, the cost of acquisition of the capital asset to the assessee shall be its written down value increased or diminished, as the case may be, by any adjustment made under section 19(16) or (17) or section 27(1)(j) or section 29(1) (xi) 286[ :
287[ * * *]]
288[ Provided further that where the capital asset became the property of the assessee by succession, inheritance or devolution, the actual cost of acquisition of the capital asset to the assessee shall be the fair market value of the property prevailing at the time the assessee became the owner of such property.]
(3) Where in the opinion of the Deputy Commissioner of Taxes the fair market value of a capital asset transferred by an assessee as on the date of transfer exceeds the full value of the consideration declared by the assessee by an amount of not less than fifteen per cent of the value so declared, the fair market value of the capital asset shall be determined with the previous approval of the Inspecting Joint Commissioner.
(4) Where in the opinion of the Deputy Commissioner of Taxes the fair market value of a capital asset transferred by an assessee as on the date of the transfer exceeds the declared value thereof by more than twenty-five per cent of such declared value, the Government may offer to buy the said asset in such manner as may be prescribed.
(5) Notwithstanding anything contained in this section or section 31, where a capital gain arises from the transfer of a capital asset which immediately before the date on which the transfer took place was being used by the assessee for the purposes of his business or profession and the assessee has, within a period of one year before or after that date, purchased a new capital asset for the 289[ * * *] purposes of his business or profession, then, instead of the capital gain being charged to tax as income of the income year in which the transfer took place, it shall, if the assessee so elects in writing before the assessment is made, be dealt with in accordance with the following provisions of this sub-section, that is to say-
(a) if the amount of the capital gains is greater than the cost of acquisition of the new asset,-
(i) the difference between the amount of the capital gain and the cost of acquisition of the new asset shall be charged under section 31 as income of the income year, and
(ii) for the purposes of computing in respect of the new asset any allowance under the Third Schedule or the amount of any capital gain arising from its transfer, the cost of acquisition or the written down value, as the case may be, shall be nil, or
(b) if the amount of the capital gain is equal to or less than the cost of acquisition of the new asset,-
(i) the capital gain shall not be charged under section 31, and
(ii) for the purposes of computing in respect of the new asset any allowance under the Third Schedule or any income under section 19(16) or the amount of any capital gain arising from its transfer, the cost of acquisition or the written down value, as the case may be, shall be reduced by the amount of the capital gain:
Provided that where in respect of the purchase of a new capital asset consisting of plant or machinery, the assessee satisfies the Deputy Commissioner of Taxes that despite the exercise of due diligence it has not been possible to make the purchase within the period specified in this sub-section, the Deputy Commissioner of Taxes may, with the prior approval of the Inspecting Joint Commissioner, extend the said period to such date as he considers reasonable.
290[(5A) Where any capital gain arises from any transfer of capital asset in a scheme of amalgamation, no tax shall be charged under section 31:
Provided that in a scheme of amalgamation, any consideration received by the shareholders of the amalgamating companies in any manner other than the shares of the amalgamated company shall be subject to applicable tax.]
(6) [Omitted by section 57 of অর্থ আইন, ২০০০ (২০০০ সনের ১৫ নং আইন).]
291[ ***]
(8) [Omitted by section 57 of অর্থ আইন, ২০০০ (২০০০ সনের ১৫ নং আইন).]
(9) [Omitted by section 57 of অর্থ আইন, ২০০০ (২০০০ সনের ১৫ নং আইন).]
(10) Notwithstanding anything contained in this section or section 31, where a capital gain arises from the transfer of capital being buildings or lands to a new company registered under 292[ the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন),] for setting up of an industry, and if the whole amount of capital gain is invested in the equity of the said company, then the capital gain shall not be charged to tax as income of the year in which the transfer took place.
(11) Notwithstanding anything contained in this section or section 31, where a capital gain arises from the transfer of a capital asset of a firm to a new company registered under 293[ the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন)], and if the whole amount of the capital gain is invested in the equity of the said company by the partners of the said firm, then the capital gain shall not be charged to tax as income of the year in which the transfer took place.]
(11A) 294[ ***]
295[ (12) Notwithstanding anything contained in 296[ sub-sections (5), (7), (10) and (11)], no exemption shall be allowed to any person on so much of profits and gains arising out of the transfer of a capital asset as is attributable to the cost of acquisition of such asset in respect of which any investment allowance referred to in paragraphs 1, 2, 3, 4, 5, 6, 8, 9, 10 and 11 of PART B of THE SIXTH SCHEDULE to this Ordinance was at any time allowed.]
297[32A. The Capital gains from the transfer of business or undertaking shall be computed after making the following deductions from the full value of the consideration received or accruing from the transfer of the business or undertaking in its entirety or the fair market value thereof, whichever is higher, namely:—
(a) any expenditure incurred solely in connection with the transfer of the business or undertaking in its entirety; and
(b) the book value of the assets minus the liabilities taken up as on the date of transfer as a result of the transfer of the business or undertaking in its entirety.”]
33. The following income of an assessee shall be classified and computed under the head “Income from other sources”, namely:-
(a) dividend and interest;
(b) royalties and fees for technical services;
(c) income from letting of machinery, plants or furniture belonging to the assessee, and also of buildings belonging to him if the letting of buildings is inseparable from the letting of the machinery, plant or furniture;
298[(d) any income to which sub-sections (1)-(5), (8)-(13), (21), (24), (27), (29), (31) or (32) of section 19 and sub-section (3) of section 19AAAA apply.];
35. (1) All income classifiable under the head 299[ "Agricultural income",] "Income from business or profession" or "Income from other sources" shall be computed in accordance with the method of accounting regularly employed by the assessee.
300[ (2) Notwithstanding anything contained in sub-section (1), the Board may, in case of any business or profession, or class of business or profession, or any other source of income, or any class of persons or class of income, by a general or special order, direct that the accounts and other documents shall be maintained in such manner and form, and the mode of payments of commercial transactions recorded in such manner and form, as may be prescribed or as may be specified in such direction; and thereupon the income of the assessee shall be computed on the basis of the accounts maintained, payments made and transactions recorded accordingly.]
301[ “(3) Without prejudice to the preceding sub-sections, every company as defined in 302[clause (20) of section 2] shall, with the return of income required to be filed under this Ordinance, furnish a copy of the trading account, profit and loss account and the balance sheet in respect of the relevant income year-
(a) certified by a chartered accountant to the effect that the accounts are-
(i) maintained and the statements are prepared and reported in accordance with Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) or in accordance with International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as adopted in Bangladesh; and
(ii) audited in accordance with the Bangladesh Standards on Auditing (BSA);
(b) signed by the persons including as many directors as required
under sub-sections (1) and (2) of section 189 of কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সালের ১৮ নং আইন);]
(4) Where-
(a) no method of accounting has been regularly employed, or if the method employed is such that, in the opinion of the Deputy Commissioner of Taxes, the income of the assessee cannot be properly deducted therefrom; or
(b) in any case to which sub-section (2) applies, the assessee fails to maintain accounts, make payments or record transactions in the manner directed under that sub-section; or
(c) a company 303[ * * *] has not complied with the requirements of sub-section (3) 304[ or the certification of accounts is not found verifiable];
the income of the assessee shall be computed on such basis and in such manner as the Deputy Commissioner of Taxes may think fit.
37. Where, in respect of any assessment year, the net result of computation of income under any head is a loss, the assessee shall, subject to the other provisions of this Ordinance, be entitled to have the amount of such loss set off against his income, if any, assessable for that assessment year under any other head:
305[306[Provided that any loss in respect of any speculation business or any loss under the head “Capital gains” shall be set off only against any income in respect of speculation business or any income under the head “Capital gains”:
Provided further that any loss from any source, income of which is exempted from tax or income of which is taxed at a reduced rate, shall not be set off against any income from any source:]
Provided further that for the purposes of this section the Deputy Commissioner of Taxes shall, in computing any loss, deduct any amount received in cash as subsidy from the Government307[:]
308[Provided further that any loss in respect of any income from business or profession shall not be so set off, or be carried forward to succeeding assessment year or years for set off, against any income from house property309[:
Provided further that any loss in respect of any income from any head shall not be so set off against any income from manufacturing of cigarette 310[, bidi, zarda, chewing tobacco, gul or any other smokeless tobacco or tobacco products].]]
42. (1) The provisions of sections 37, 38, 39, 40 and 41 shall have effect subject to the conditions and limitations set out in this section.
(2) [Omitted by section 6 of অর্থ আইন, ১৯৯৫ (১৯৯৫ সনের ১২ নং আইন).]
(3) In the case of 311[a firm],-
(a) Where the assessee is the firm, the loss sustained by it under any head of income shall be set off under section 37 only against the income of the firm under any other head and not against the income of any of the partners of the firm; and
(b) where the assessee is a partner of the firm, he shall not be entitled to have any loss, sustained by the firm carried forward and set off against his own income.
312[(3A) Where the assessee is an Association of Persons, the loss sustained by it under any head of income shall be set off under section 37 only against the income of the Association of Persons under any other head and not against the income of any of the members of the Association of Persons.
(3B) Where the assessee is a member of the Association of Persons, he shall not be entitled to have any loss sustained by the Association of Persons carried forward and set off against his own income.”]
(4) Where any person carrying on any business or profession has been succeeded in such capacity by another person otherwise than by inheritance, no person, other than the person incurring the loss, shall be entitled to have the loss in such business or profession set off against his income under any other head.
(5) In the case of a firm in the constitution of which a change has occurred,-
(a) the firm shall not be entitled to set off so much of the loss proportionate to the share of a retired or deceased partner as exceeds his share of profits, if any, of the income year in the firm; and
(b) a partner of the firm shall not be entitled to the benefit of any portion of the said loss as is not apportionable to him.
(6) Where, in making an assessment for any year, full effect cannot be given to the allowances referred to in section 29(1) (viii) owing to there being no profits or gains chargeable for that year or such profits or gains being less than the allowance then, subject to the provisions of sub-section (7), the allowance or part of the allowance to which effect has not been given, as the case may be, shall be added to the amount of the allowance for depreciation for the following year and be deemed to be part of that allowance or if there is no such allowance for that year, be deemed to be the allowance for that year and so on for succeeding years.
(7) Where, under sub-section (6), depreciation allowance is also to be carried forward, effect shall first be given to the provisions of sections 38 and 39 (2).
313[(8) In a scheme of amalgamation, the amalgamated company shall have the right to carry forward the accumulated loss and the unabsorbed depreciation of the amalgamating company as if the loss or the unabsorbed depreciation, as the case may be, has been the accumulated loss or the unabsorbed depreciation of the amalgamated company in the income year in which the amalgamation took place.]
Chapter VI
EXEMPTIONS AND ALLOWANCES
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.
324[(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
325[326[(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) 327[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 328[***] taka.”;].
329[***]
Provided that the amount admissible under clause (a) shall not, under any circumstances, exceed 330[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 331[.***]
332[(5) Notwithstanding anything contained in clause (b) of sub-section (4) or any other section in Chapter VI-
333[(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.]
364[46A. (1) Subject to the provisions of this Ordinance, 365[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 366[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 367[Dhaka and Chittagong divisions], excluding the hill districts of Rangamati, Bandarban and Khagrachari, for a period of 368[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 369[Rajshahi, Khulna, Sylhet and Barisal divisions] and the hill districts of Rangamati, Bandarban and Khagrachari, for a period of 370[six] years beginning with the month of commencement of commercial production or operation of the said undertaking.
371[* * *]
372[(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, 373[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;
374[* * *]
375[(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 376[:
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 377[within six months from the end of the month] of commencement of commercial production or operation.
378[(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 379[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 380[: 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”:
381[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 31 382[; and
(c) any income of the said undertaking resulting from disallowance made under section 30 383[.
[* * *]]
(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.]
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 |
391[(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 |
(2) For the purpose of this section,-
"industrial undertaking" means an industry engaged in the production of-
(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 397[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.]
398[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;
399[(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.]
402[46C.403[(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, 404[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) 405[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 406[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.]
407[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.
Chapter VII
PAYMENT OF TAX BEFORE ASSESSMENT
49. (1) Tax payable under this Ordinance shall be deducted or collected at source in respect of the following income, namely:-
(a) income classifiable under the head “Salaries”;
413[(aa) income from discount on the real value of Bangladesh Bank bills;]
(b) income classifiable under the head “Interest on securities”;
414[* * *]
(c) income derived on account of supply of goods, execution of contracts or services rendered;
415[(d) income derived by the importers on account of import of goods;]
(e) income derived on account of indenting commission;
(f) income derived on account of winnings from lottery or crossword puzzles, as referred to in section 19(13); 416[* * *]
(g) any income chargeable under this Ordinance which is paid or payable to a non-resident 417[;
(h) Income classifiable under the head “Income from house property”;
(i) income derived on account of export of manpower;
418[(ii) income derived on account of travel agency commission or incentive bonus;]
(j) income derived on account of purchase by public auction;
(k) income derived on account of acting in films;
(m) income derived on account of shipping agency commission 421[; 422[* * *]
423[(n) income derived from commission, discount or fees payable to distributors for distribution or marketing of manufactured goods] 424[;
(o) income derived on account of interest on saving deposits, fixed deposits or term deposits and share of profit on term deposits;
425[(oo). income dierived on account of payment from workers’ participation fund.]
(p) income derived on account of insurance commission;
(q) income classifiable under the head “Capital gains”;]
426[(r) income derived on account of fees for professional or technical services;
(s) income derived on account of manufacture of cigarettes manually without any mechanical aid whatsoever;
(t) income derived from compensation against acquisition of property;
427[* * *]
428[* * *]
(w) income derived on account of running of brick field;
(x) income derived on account of services rendered by the doctors;
429[* * *]
(z) income derived on account of commission of letter of credit;]
430[(za) income derived on account of survey by a surveyor of general insurance company;
431[* * *]
(zc) income derived on account of commission, remuneration or charges as a foreign buyer's agent 432[;
(zd) income from dividends 433[;
(ze) income derived on account of rendering certain services 434[;
435[(zf) income derived on account of shipping business carried on both inside and outside Bangladesh by a resident assessee.]
(zg) income derived on account of business of real estate and land developer;
(zh) income derived by an exporter on account of export of 436[any commodity];
(zi) income derived by a member of a stock exchange on account of transaction of shares, debentures, mutual funds, bonds or securities 437[;
(zj) income derived on account of courier business of a non-resident;
438[***]
439[(zkk) income derived on account of export cash subsidy;]
440[***]
441[(zm) on account of 442[***] renewal of trade licence;
443[***]
(zo) income derived on account of freight forward agency commission 444[;
(zp) income derived on account of rental power;
(zq) income derived on account of interest of Post Office Savings Bank Account;
(zr) income derived on account of rental value of vacant land or plant or machinery;
(zs) income derived on account of advertisement 445[;
(zt) income derived by foreign technician serving in a diamond cutting industry446[;
447[***]
(zv) income derived from transfer of securities or mutual fund units by sponsor shareholders of a company etc 448[;
(zw) deduction of tax for services from convention hall, conference centre, room or, as the case may be, hall etc.;
(zx) deduction of tax from residents for any income in connection
with any service provided to any foreign person 449[;
(zy) income derived on account of international gateway service in respect of phone call450[;
(zz) collection of tax from manufacturer of soft drink 451[;
(zza) income derived from insurance policy;
(zzb) deduction of tax from local letter of credit (L/C);
(zzc) income derived from any fees, revenue sharing, etc. from cellular mobile phone operator;
(zzd) income from transfer of share of any stock exchange;
(zze) income from transfer of share of company listed in any stock exchange;
(zzf) income derived from lease of property 452[;
(zzff) deduction of tax from any sum paid by real estate developer to land owner 453[;
(zzg) income derived from the operation of inland ships;
(zzh) income derived from the operation of commercial vehicles.]
(2) Tax to be deducted at source under sub-section (1) in respect of any income shall be deducted in accordance with the provisions of this Chapter by the person responsible for making payment which constitutes the income of the payee.
(3) For the purpose of this Chapter, “person responsible for making payment”, with its grammatical variations and cognate expressions, means-
(a) in the case of payments constituting income classifiable under head “Salaries”, 454[***] the employer himself or, if the employer is a local authority, company or institution, such authority, company or institution, including the principal officer thereof;
(b) in the case of payments constituting income classifiable under the head “Interest on securities”, not being payment made by or on behalf of the Government, the authority, company or other institution issuing the security or the principal officer thereof; and
(c) in the case of payment of any other sum which constitutes an income of the payee chargeable to tax under this Ordinance, the payer himself, or if the payer is a company or other institution, such company or institution including the principal officer thereof.
463[51. Any person responsible for issuing a security of the Government, or security approved by the Government or Bangladesh Securities and Exchange Commission, income of which is classifiable under the head “interest on securities”, shall collect income-tax at the rate of five percent (5%) on discount, interest or profit on securities at the time of making payment or credit, whichever is earlier.]
464[52. (1) Where any payment is to be made by a specified person to a resident on account of-
(a) execution of a contract, other than a contract for providing or
rendering a service mentioned in any other section of Chapter VII;
(b) supply of goods;
(c) manufacture, process or conversion;
(d) printing, packaging or binding;
the person responsible for making the payment shall, at the time of making such payment, deduct tax at such rate, not exceeding ten percent (10%) of the base amount, as may be prescribed:
465[Provided that–
466[(a) the rate of tax shall be fifty percent (50%) higher if the payee fails to submit proof of submission of return at the time of making the payment;]
467[***]
468[(bb) the rate of tax shall be fifty percent (50%) higher if the payee does not receive payment by bank transfer;]
(c) where any imported goods on which tax has been paid at source under section 53 is supplied, tax at source on the said supply shall be B-A, where-
A= the amount of tax paid under section 53,
B= the amount of tax applicable under this section if no tax were paid under section 53.]
469[(d) where any goods on which tax has been paid at source under section 53E is supplied, tax at source on the said supply shall be B-A, where-
A = the amount of tax paid under section 53E,
B = the amount of tax applicable under this section if no tax were paid under section 53E470[:
471[Provided that in case of the goods supplied by any distributor or any other person under a contract as referred in sub-section (3) of section 53E, the term “B” as mentioned in paragraph (d) shall be computed as follows:
B={the selling price of the company to the distributor or the other person as referred in section 53E (3)} x 7% x 5%.]
(2) In this section-
(a) the specified person means-
(i) the Government, or any authority, corporation or body of the Government, including its units, the activities of which are authorised by any Act, Ordinance, Order or instrument having the force of law in Bangladesh;
(ii) a project, programme or activity where the Government has any financial or operational involvement;
(iii) a joint venture or a consortium;
(iv) a company as defined in clause (20) of section 2 of this Ordinance;
(v) a co-operative bank;
(vi) a co-operative society;
(vii) a financial institution;
(viii) a Non-Government Organisation registered with the NGO Affairs Bureau 472[or a Micro Credit Organisation having licence with Micro Credit Regulatory Authority];
(ix) a school, a college, an institute or a university;
(x) a hospital, a clinic or a diagnostic centre;
(xi) a trust or a fund;
(xii) a firm;
473[(xiia) an association of persons;]
(xiii) a public-private partnership;
(xiv) a foreign contractor, a foreign enterprise or an association or a body established outside Bangladesh; 474[***]
475[(xv) any e-commerce platform, not being any other specified persons, called by whatever name having annual turnover exceeding Taka one crore; 476[***]
477[(xvi) hotel, resort, community center and transport agency having annual turnover exceeding Taka one crore;]
478[(xvii) an artificial juridical person;]
(b) “contract” includes a sub-contract, any subsequent contract, an agreement or an arrangement, whether written or not;
(c) “base amount” means the higher of the -
(i) contract value; or
(ii) bill or invoice amount; or
(iii) payment;
(d) “payment” includes a transfer, a credit or an adjustment of payment 479[or an order or instruction of making payment].]
52A. (1) Where any payment is to be made by a specified person to a resident on account of royalties, franchise, or the fee for using license, brand name, patent, invention, formula, process, method, design, pattern, knowhow, copyright, trademark, trade name, literary or musical or artistic composition, survey, study, forecast, estimate, customer list or any other intangibles, the person responsible for making the payment shall, at the time of making payment, deduct income tax at the rate specified below-
|
Description of payment
|
Rate of deduction of tax
|
|
(a) Where base amount does not exceed taka 25 lakh |
10% |
|
(b) Where base amount exceeds taka 25 lakh |
12%: |
Provided that the rate of tax shall be fifty percent (50%) higher if the payee does not have a twelve-digit Taxpayer’s Identification Number at the time of making the payment.
(2) In this section-
(a) “specified person” shall have the same meaning as in clause (a) of sub section (2) of section 52;
(b) “contract” includes a sub-contract, any subsequent contract, an agreement or an arrangement, whether written or not;
(c) “base amount” means the higher of the -
(i) contract value; or
(ii) bill or invoice amount; or
(iii) payment;
(d) “payment” includes a transfer, a credit or an adjustment of payment 480[or an order or instruction of making payment].
52AA. 481[(1) Where any payment is to be made by a specified person to a resident on account of a service as mentioned in this section, the person responsible for making the payment shall, at the time of making such payment, deduct income tax at the rate specified in the Table below:-
Table
|
SL. No |
Description of service and payment |
Rate |
|
1. |
Advisory or consultancy service |
10%
|
|
2. |
(i) Professional service;
(ii) technical services fee; or
(iii) technical assistance fee.
|
10%
|
|
3. |
(i) Catering service;
(ii) Cleaning service;
(iii) Collection and recovery service;
(iv) Private security service;
(v) Manpower supply service;
(vi) Creative media service;
(vii) Public relations service;
(viii) Event management service;
(ix) Training, workshop, etc. organization and management service;
(x) Courier service;
(xi) Packing and Shifting service;
(xii) Any other service of similar nature-
(a) on commission or fee
(b) on gross bill amount |
10% 2% |
|
4. |
Media buying agency service
(a) on commission or fee
(b) on gross bill amount
|
10%
0.65% |
|
5. |
Indenting commission |
8%
|
|
6. |
Meeting fees, training fees or honorarium |
10%
|
|
7. |
Mobile network operator, technical support service provider
|
12% |
|
8. |
Credit rating service |
10%
|
|
9. |
Motor garage or workshop |
8%
|
|
10. |
Private container port or dockyard service |
8%
|
|
11. |
Shipping agency commission |
8%
|
|
12. |
Stevedoring/berth operator /terminal operator/Ship handling operator –
(a) on commission or fee
(b) on gross bill amount |
10%
5% |
|
|
|
|
|
13. |
(i) Transport service, carrying service, vehicle rental service, Repair and maintenance service;
(ii) Any other service under any sharing economy platform including ride sharing service, coworking space providing service and accommodation providing service;
|
5% |
|
14. |
Wheeling charge for electricity transmission |
3%
|
|
15. |
Internet Service |
10%
|
|
16. |
Service delivery agents engaged in mobile financial services or channel partners of mobile financial services
|
10% |
|
17. |
Any other service which is not mentioned in Chapter VII of this Ordinance and is not a service provided by any bank, insurance, mobile financial services or financial institutions. |
10% |
Provided that-
(a) if the amount for services mentioned in SL No. 3 and 4 of the Table shows both commission or fee and gross bill amount tax shall be the higher amount between (i) and (ii) where-
(ii) B x C x D, where-
B = Gross bill amount.
C = 10% of Sl. 3 and 2.5% for Sl. 4, and
D = rate of tax applicable on commission or fee;
(b) the rate of tax shall be fifty percent (50%) higher if the payee fails to submit proof of submission of return at the time of making the payment;
(c) the rate of tax shall be fifty percent (50%) higher if the payee does not receive payment by bank transfer;
(d) where the Board, on an application made in this behalf, gives certificate in writing that the person rendering such service is otherwise exempted from tax under any provision of this Ordinance, the payment referred to in this section shall be made without any deduction or with deduction at a lesser rate for that income year.]
(2) In this section-
(a) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52;
(b) “contract” includes a sub-contract, any subsequent contract, an agreement or an arrangement, whether written or not;
(c) “base amount” means the higher of the-
(i) contract value; or
(ii) bill or invoice amount ; or
(iii) payment;
(d) “payment” includes a transfer, a credit or an adjustment of payment 482[or an order or instruction of making payment];
(e) “professional services” means-
(i) services rendered by a doctor;
(ii) services rendered by a person carrying on any profession or any other services applying professional
knowledge.]
486[52C.- Any person, responsible for paying any amount of compensation against acquisition by the Government of any immovable property shall, at the time of paying such compensation deduct advance tax at the rate of,-
(a) 487[six] per cent of the amount of such compensation where the immovable property is situated in any city corporation, paurashava or cantonment board;
(b) 488[three] per cent of the amount of such compensation where the immovable property is situated outside any city corporation, paurashava or cantonment board.]
489[490[52D. Notwithstanding anything contained in any other provision of this Ordinance or any other law being in force in respect of exemption from tax on interest of savings instrument purchased by an approved superannuation fund or pension fund or gratuity fund or a recognized provident fund or a workers’ profit participation fund, any person responsible for making any payment by way of interest on any savings instruments shall, at the time of such payment, deduct income tax at the rate of 491[ten per cent (10%)] on such interest:
Provided that no tax shall be deducted under this section where the cumulative investment at the end of the income year in the pensioners' savings certificate does not exceed five lakh taka:
Provided further that no tax shall be deducted from interest or profit arising from Wage earners development bond, US dollar premium bond, US dollar investment bond, Euro premium bond, Euro investment bond, Pound sterling investment bond or Pound sterling premium bond.
492[52DD. (1)Notwithstanding anything contained in any other provision of this Ordinance or any other law being in force in respect of exemption from tax on payments from workers’ participation fund, any person responsible for making any payment from such fund to a beneficiary shall, at the time of payment, deduct tax at the rate of 5% (five percent) on whole payment.
(2) No tax under sub-section (1) shall be deducted from the payment of worker’s participation fund where the following conditions are met-
(i )the beneficiary does not have taxable income; and
(ii) amount of fund does not exceed Taka 25,000.
494[52F. Any person responsible for issuing or renewal of permission for the manufacture of bricks shall not issue or renew such permission unless the application for issuance or renewal of such permission is accompanied by a tax clearance certificate of the preceding assessment year along with the receipt of the tax verified by the Deputy Commissioner of Taxes at the following rates:
(a) taka forty five thousand for one section brick field;
(b) taka seventy thousand for one and half section brick field;
(c) taka ninety thousand for two section brick field;
(d) taka one lakh and fifty thousand for brick field producing bricks through automatic machine.
Explanation.¾For the purpose of this section, the word "section" shall have the same meaning as defined in মৌসুমী ইটভাটা মূল্য সংযোজন কর বিধিমালা, ২০০৪.]
496[52K. Any person responsible for renewal of trade licence shall collect tax at the time of such renewal of each trade license at the rate of –
(a) taka 497[three thousand] in 498[Dhaka South City Corporation, Dhaka North City Corporation] or Chittagong City Corporation;
(b) taka 499[two thousand] 500[in any other city corporation];
(c) taka 501[one thousand] in any paurashava at any district headquarter;
(d) taka 502[five hundred] in any other paurashava.]
507[52N. (1)Notwithstanding anything contained in this Ordinance, Bangladesh Power Development Board or any other person engaged in power distribution, at the time of payment to any person on account of purchase of power, shall collect, deduct or pay tax on the said payment at the rate of six percent.
(2) Where a person is exempted from tax or is subject to a reduced tax rate in an income year, the Board may, on an application made in this behalf, give a certificate in writing that the payment for that income year shall be made without any deduction or with deduction at a proportionately reduced rate, as the case may be.]
509[52P. (1) Where any payment is to be made by a specified person to any other person on account of renting or using space of convention hall, conference centre, room or, as the case may be, hall, hotel, community centre or any restaurant, shall deduct tax at the rate of five per cent from the whole amount of the payment for the services thereof at the time of making such payment to the payee:
Provided that no deduction shall be made when such amount is paid directly to the Government.
(2) In this section¾
(a) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52;
(b) “payment” shall have the same meaning as in clause (d) of sub-section (2) of section 52.]
52Q. 510[Any person, responsible for paying or crediting to the account of a person any sum remitted from abroad by way of a fee, service charges, commission or remuneration, called by whatever name, or by way of revenue sharing of any name and nature, for—
(a) providing any service rendered in Bangladesh; or
(b) rendering any service or performing any task by a resident person in favour of a foreign person; or
(c) allowing the use of any online platform for advertisement or any other purposes,
shall deduct tax at the rate of ten percent at the time of making payment of the sum or crediting the sum to the account of the payee:
511[Provided that the rate of deduction under this section shall be 7.5% (seven point five percent) where the remittance has been received as consideration for contracts on manufacturing, process or conversion, civil work, construction, engineering or works of similar nature:
Provided further that no deduction under this section shall be made against the remittance from abroad which is-
(i) the proceeds of sales of software or services of a resident if the income from such sales or services is exempted from tax under paragraph 33 of Part A of the Sixth Schedule, or
(ii) excluded from total income by paragraph 48 512[and 61] of Part A of the Sixth Schedule.]
513[52R. (1)The bank, through which any sum on account of International Gateway (IGW) Services in respect of international phone call is received, shall deduct tax at the rate of 514[one point five percent (1.5%)] of the total amount representing the said receipt at the time of crediting it to the account of the International Gateway (IGW) Services operator.
(2) The International Gateway (IGW) Services operator, by which any sum related to international phone call is paid or credited to the account of Interconnection Exchange (ICX), Access Network Services (ANS) 515[,Bangladesh Telecommunication Regulatory Commission (BTRC)] or any other person under an agreement with the Bangladesh Telecommunication Regulatory Commission (BTRC), shall deduct tax at the rate of 516[seven point five percent (7.5%)] on the whole amount so paid or credited at the time of such payment or credit under the said agreement.
517[(2A) Where any amount is paid or credited in respect of outgoing international calls, the provider of Interconnection Exchange (ICX) services or Access Network Services (ANS) shall deduct tax at the rate of seven point five percent (7.5%) on the whole amount so paid or credited at the time of such payment or credit]
(3) Notwithstanding anything contained in 518[sub-sections (1), (2) or (2A)], where the Board gives a certificate in writing on an application made by a person that income of the person is exempted from tax or will be liable to tax at a rate of tax less than the rate specified in this section, the person responsible for such payment shall make the payment-
(a) without deduction of tax; or
(b) after deducting tax at a rate specified in the certificate.]
522[52U. (1) The bank or any other financial institution extending any credit facility under a local letter of credit or any other financing agreement, not being a financing arrangement under sub-section (2), for purchasing any goods in Bangladesh by a person (hereinafter referred to as “Person A”) from any person (hereinafter referred to as “Person B”) for the purpose of trading, or of reselling after process or conversion shall deduct, at the time of paying or crediting to Person B, tax at the rate of three percent (3%) of the amount so paid or credited in relation to the purchase by Person A.
(2) The bank or any other financial institution extending any credit facility to a distributor under a financing arrangement in which a person (hereinafter referred to as “Person C”) receives payments from such bank or the financial institution against the invoice or sale of goods to its distributor (hereinafter referred to as “Person D”) shall deduct, at the time of paying or crediting payment to Person C, tax at the rate of one percent (1%) of the amount so paid or credited in relation to the goods invoiced to Person D.
(3) 523[The tax shall be deducted at the rate of two percent (2%)] in the cases of local letter of credit or any other financing agreement opened or made for the purchase or procurement of rice, wheat, potato, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chillies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, date, cassia leaf, computer or computer accessories, jute, cotton, yarn and all kinds of fruits.
524[***]
Explanation.- For the purpose of this section, "distributor" means a person who performs the function of supply of finished goods produced by another person to the end customer directly or through any other intermediary.]
53. 525[The Commissioner of Customs or the officer authorized in this behalf shall collect advance income tax at such rate, not exceeding 20% (twenty percent) on the value of imported goods, as may be prescribed.]
526[527[53A. (1) Where any specified person is a tenant in respect of a house property or hotel accommodation, the tenant shall deduct tax from the rent of such house property or hotel accommodation at the rate of five per cent at the time of payment of such rent.
Explanation.- For the purpose of this section, "rent" means any payment, by whatever name called, under any lease, tenancy or any other agreement or arrangement for the use of any house property or hotel accommodation including any furniture, fittings and the land appurtenant thereto.
(2) Where, after the assessment made for the relevant year, it is found that no tax was payable by the owner of the house property or the amount of tax deducted is in excess of the amount payable, the amount deducted shall be refunded,-
(a) if no tax was payable, in full; or
(b) if the amount deducted is in excess of the amount payable, to the extent of the excess deduction to the owner of the house property.
(3) Where the Deputy Commissioner of Taxes, on an application made in this behalf, gives a certificate in the prescribed form to an owner of house property that, to the best of his belief, the owner is not likely to have any assessable income during the year or the income is otherwise exempted from payment of income tax under any provision of this Ordinance, payment referred to in sub-section (1) shall be made without any deduction until the certificate is cancelled.
(4) In this section-
(a) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52;
(b) “payment” shall have the same meaning as in clause (d) of sub-section (2) of section 52.]]
53B. 531[The Director General, Bureau of Manpower, Employment and Training shall not-
(i) grant clearance for export of manpower by recruiting agencies unless challan of advance tax for Taka amounting to 10% (ten percent) of service charge or fees received by recruiting agents on account of export of manpower attached with the application made in this behalf; and
(ii) issue or renew license under section 9 of বৈদেশিক কর্মসংস্থান ও অভিবাসী আইন, ২০১৩ (২০১৩ সনের ৪৮ নং আইন) unless a challan of advance tax for Taka 50,000 is submitted along with the application made for license or renew of license.]
532[53BB. Deduction of tax from export proceeds of goods.- (1)The Bank, through which export proceeds of goods of an exporter is received, shall deduct tax at the rate of 1% (one percent) of total export proceeds at the time of crediting the proceeds to the account of the exporter.
(2) Where the Board, on an application made in this behalf, gives a certificate in writing that the income of the exporter is partly or fully exempted from tax under any provision of the Ordinance, the Bank shall make credit to the account of an assesse without any deduction of tax or deduction of tax at a rate lesser than the rate specified in this section for the period mentioned in that certificate.]
53BBB. 533[The Chief Executive Officer of a stock exchange shall collect tax at the rate of “zero point zero five percent (0.05%)”on the value of shares and mutual funds transacted by a member of a stock exchange and at the rate of ten percent (10%) on the commission received or receivable by a member of a stock exchange for the transaction of securities other than shares and mutual funds at the time of making payment for such transactions.]
534[***]
53C. Any person making sale, by 535[public auction through sealed tender or otherwise], of any goods or property belonging to the Government or any authority, corporation or body, including its units, the activities or the principal activities of which are authorised by any Act, Ordinance, order or instrument having the force of law in Bangladesh or any company 536[***] as defined in 537[538[***] কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮নং আইন)] or any banking company, or any insurance company or any co-operative bank established by or under any law for the time being in force shall collect, before delivering the possession of the goods or the property 539[or allowing to exercise the rights], as advance tax on the income from the sale price of such goods or property from the auction purchaser 540[at the rate of 10% (ten percent) of the sale price:].
541[Provided that the rate of deduction shall be 1% (one percent) in case of sale of tea by public auction.]
Explanation.-For the purposes of this section, sale of any goods or property includes the awarding of any lease to any person, including a lease of the right to collect octroi duties, tolls, fees or other levies, by whatever name called, but does not include sale of a plot of land.
550[53E. (1) Any company making a payment or allowing an amount to a distributor, called by whatever name, or to any other person by way of commission, discount, fees, incentive or performance bonus or any other performance related incentive or any other payment or benefit of the similar nature for distribution or marketing of goods, shall deduct or collect tax at the time of payment or allowing the amount at the rate of ten percent (10%) of the amount of payment or the amount allowed or the value of benefits allowed, as the case may be.
(2) Any company making a payment in relation to the promotion of the company or its goods to any person engaged in the distribution or marketing of the goods of the company shall, at the time of payment, deduct tax at the rate of one point five percent (1.5%) of the payment.
(3) Any company, other than an oil marketing company, which sells goods to-
(a) any distributor, or
(b) any other person under a contract,
at a price lower than the retail price fixed by such company, shall collect tax from such distributor or such any other person at the rate of five percent (5%) on the amount equal to B x C, where-
B = the selling price of the company to the distributor or the other person;
C = 5%:
Provided that a cigarette manufacturer company shall collect tax at the time of sale of its goods to such distributor or to such other person at the rate of three percent (3%) of the difference between the sale price to the distributor or the other person and the retail price fixed by such company.
(4) In this section-
(a) “payment” includes a transfer, credit or an adjustment of payment 551[or an order or instruction of making payment];
(b) “contract” includes an agreement or arrangement, whether written or not552[;
(c) “company” includes a firm.]
555[53F. (1)Notwithstanding anything contained in this Ordinance or any other law for the time being in force in respect of exemption of tax, any person responsible for paying to a resident any sum by way of interest or share of profit on any saving deposits or fixed deposits or any term deposit maintained with any bank including a co-operative bank or any bank run on Islamic principles or non-banking financial institution or any leasing company or housing finance company, as the case may be, shall deduct, at the time of credit of such interest or share of profit to the account of the payee or at the time of payment thereof, whichever is earlier, income tax on such sum at the rate provided in the following table-
Table
|
Sl. No. |
Types of the payee |
Rate |
|
1. |
Where the payee is a company |
20% |
|
2. |
Where the payee is a person other than a company |
10% |
|
3. |
Where the payee is a public university, or an educational institution whose teachers are enlisted for Monthly Pay Order (MPO), following the curriculum approved by the Government and whose governing body is also formed as per Government rules or regulations, or any professional institute established under any law and run by professional body of Chartered Accountants, Cost and Management Accountants or Chartered Secretaries |
10% |
|
4. |
Where the payee is recognized provident fund, approved gratuity fund, approved superannuation fund or pension fund |
5% |
(2) Where the payee being a person required to submit return under section 75 fails to furnish proof of submission of return, the rate of deduction shall be 50% higher.
(3) For the purpose of sub-section (2), the proof of submission of return of parent shall be considered as the proof of submission of return of a minor.
(4) Nothing contained in this section shall apply-
(a) to interest or share of profit arising out of any deposit pension scheme sponsored by the Government or by a Bank with prior approval of the Government; or
(b) to such payee or class of payees as the Board may, by a general or special order, specify that income of such payee or class of payee is otherwise exempted from tax.]
573[53H. (1) Any registering officer responsible for registering any document of a person under the provisions of clause (b), (c) or (e) of sub-section (1) of section 17 of the Registration Act, 1908 (XVI of 1908) shall not register any document unless tax is paid at such rate as may be prescribed in relation to the property to which the document relates and on which stamp-duty is chargeable under Stamp Act, 1899 (II of 1899) by the person whose right, title or interest is sought to be transferred, assigned, limited or extinguished thereby, at the time of registration of such document:
Provided that the rate of tax shall not exceed taka ten lakh and eighty thousand per katha (1.65 decimal) for land, taka six hundred per square meter for any structure, building, flat, apartment or floor space on the land, if any, or four per cent of the deed value, whichever is higher.
(2) Nothing in this section shall apply to a document relating to:
(a) sale by a bank or any financial institution as a mortgagee empowered to sell;
(b) mortgage of any property to any bank or any financial institution of against any loan574[;
(c) transfer of property to a trust or special purpose vehicle established only for the purpose of issuing sukuk approved by government or Securities Exchange Commission and vice versa.]
575[***]
576[53HH. Any registering officer responsible for registering, under the Registration Act, 1908 (XVI of 1908), any document in relation to any lease of immovable property for not less than ten years shall not register such document unless tax is paid at a rate of four per cent by the lessor on the lease amount of such property.]
581[53J. (1) Where any payment is to be made by a specified person to a resident on account of renting 582[water body not being government property] or using any vacant land or plant or machinery, shall deduct tax at the rate of five per cent from the whole amount of the payment at the time of making such payment to the payee.
(2) In this section-
(a) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52;
(b) “payment” shall have the same meaning as in clause (d) of sub-section (2) of section 52.]
53M.The Securities and Exchange Commission or Stock Exchange, as the case may be, at the time of transfer or declaration of transfer or according consent to transfer of securities or mutual fund units of a sponsor shareholder or director or placement holder of a company or sponsor or placement holder of a mutual fund listed with a Stock Exchange shall collect tax at the rate of five per cent on the difference between transfer value and cost of acquisition of the securities or mutual fund units.
Explanation.- For the purpose of this section-
(1) 'transfer’ includes transfer under a gift, bequest, will or an irrevocable trust;
(2) 'transfer value’ of a security or a mutual fund unit shall be deemed to be the closing price of securities or mutual fund units prevailing on the day of consent accorded by the Securities and Exchange Commission or the Stock Exchange, as the case may be, or where such securities or mutual fund units were not traded on the day such consent was accorded, the closing price of the day when such securities or mutual fund units were last traded.]
595[53Q. (1)The personresponsible for the registration and fitness renewal of motor vehicles shall not register or allow fitness renewal unless, a challan of advance tax at the rate given in the following table is attached with the application:
Table
|
Serial No. |
Description of the vehicle |
Rate (in taka) |
|
1. |
Bus having seats exceeding 52 |
16,000/- |
|
2. |
Bus having seats not exceeding 52 |
11,500/- |
|
3. |
Air conditioned Bus |
37,500/- |
|
4. |
Double decker Bus |
16,000/- |
|
5. |
Air conditioned (AC) Minibus/Coaster |
16,000/- |
|
6. |
Non-AC Minibus/Coaster |
6,500/- |
|
7. |
Prime mover |
24,000/- |
|
8. |
Truck, Lorry or Tank Lorry having payload capacity exceeding five tons |
16,000/- |
|
9. |
Truck, Lorry or Tank Lorry having payload capacity exceeding one and half tons but not exceeding five tons |
9,500/- |
|
10. |
Truck, Lorry or Tank Lorry having payload capacity not exceeding one and half tons |
4,000/- |
|
11. |
Pickup van, human hauler, maxi or auto rickshaw |
4,000/- |
|
12. |
Air conditioned Taxicab |
11,500/- |
|
13. |
Non-AC Taxicab |
4,000/- . |
(2) In case of registration or fitness renewal of a vehicle for more than one year, advance tax under sub-section (1) shall be collected on or before 30th June in every subsequent year or years following the year in which registration or fitness renewal of the vehicle has been done.
(3) Where any person fails to pay advance tax in accordance with sub-section (2), the amount of advance tax payable shall be calculated in accordance with A+ B formula, where-
A = the amount of advance tax not paid in the previous year or years; and
B = the amount of advance tax payable under sub-section (2) for the year in which an asseesee is making the payment.
(4) Advance tax under sub-section (2) shall not be collected if the vehicle is owned by-
(i) the government and the local government;
(ii) a project, programme or activity under the government and the local government;
(iii) a foreign diplomat, a diplomatic mission in Bangladesh, United Nations and its offices;
(iv) a development partner of Bangladesh and its affiliated office or offices;
(v) an educational institution under the Monthly Payment Order of the Government;
(vi) a public university;
(ix) an institution that has obtained a certificate from the Board that advance tax shall not be collected from it.
596[53R. (1)The person responsible for granting a certificate of survey or renewing a certificate of survey under the Inland Shipping Ordinance, 1976 (Ordinance No. LXXII of 1976) shall not grant or renew such certificate of survey unless a challan of advance tax computed at the rate given in the following table is attached with the application:
Table
|
Serial No. |
Description of Vessel |
Rate |
|
(1) |
(2) |
(3) |
|
1. |
Inland ships engaged in carrying passengers in inland water |
Taka 125 per passenger (carrying capacity of an inland ship shall be the capacity of daytime plying in smooth waters) |
|
2. |
Cargo, Container (multipurpose) and Coaster engaged in carrying goods in inland water |
Taka 170 per gross tonnage |
|
3. |
Dump barge engaged in carrying goods in inland water |
Taka 125 per gross tonnage. |
(2) In case of granting a certificate of survey or renewing a certificate of survey for more than one year, advance tax under sub-section (1) shall be collected on or before 30th June in every subsequent year or years following the year in which grant of or renewal of such certificate has been done.
(3) Where any person fails to pay advance tax in accordance with sub-section (2), the amount of advance tax payable shall be calculated in accordance with A+ B formula, where-
A = the amount of advance tax not paid in the previous year or years; and
B = the amount of advance tax payable under sub-section (2) for the year in which an asseesee is making the payment.
(4) For the purpose of this section ‘inland ship’ and ‘inland water’ shall have the same meaning as defined in the Inland Shipping Ordinance, 1976 (Ordinance No. LXXII of 1976).]
597[54. Deduction of tax from dividends.- The principal officer of a company registered in Bangladesh, or of any other company, shall, at the time of paying any dividend to a shareholder, deduct tax on the amount of such dividend, in the case of a resident or a non-resident Bangladeshi,-
(a) if the shareholder is a company, at the rate applicable to a company ;
(b) if the shareholder is a person other than a company, at the rate of ten per cent (10%) where the person receiving such dividend furnishes his twelve-digit Taxpayer's Identification Number (TIN) to the payer or fifteen per cent (15%) where the person receiving such dividend fails to furnish his twelve-digit Taxpayer's Identification Number (TIN) to the payer598[:
Provided that the provision of this section shall not be applicable to any distribution of taxed dividend to a company 599[***] if such taxed dividend enjoys tax exemption under the provisions of the paragraph 60 of Part A of the Sixth Schedule.]]
56. 601[(1) Subject to the provisions of sub-section (2), the specified person or any other person responsible for making payment to a non-resident of any amount which constitutes the income of such non-resident chargeable to tax under this Ordinance shall, unless such person is himself liable to pay tax thereon as agent, at the time of making such payment, deduct tax on the amount so payable at the rate, specified below:
|
SL. No
|
Description of services or payments
|
Rate of deduction of tax
|
|
1 |
Advisory or consultancy service |
20% |
|
2 |
Pre-shipment inspection service |
20% |
|
3 |
Professional service, technical services, technical know-how or technical assistance |
20% |
|
4 |
Architecture, interior design or landscape design, fashion design or process design |
20% |
|
5 |
Certification rating etc. |
20% |
|
6 |
Charge or rent for satellite, airtime or frequency, rent for channel broadcast |
20% |
|
7 |
Legal service |
20% |
|
8 |
Management service including event management |
20% |
|
9 |
Commission |
20% |
|
10 |
Royalty, license fee or payments related to intangibles |
20% |
|
11 |
Interest |
20% |
|
12 |
Advertisement broadcasting |
20% |
|
13 |
Advertisement making 602[or Digital marketing] |
15% |
|
14 |
Air transport or water transport 603[ not being the carrying services mentioned in sections 102 or 103A] |
7.5% |
|
15 |
Contractor or sub-contractor of manufacturing, process or conversion, civil work, construction, engineering or works of similar nature. |
7.5% |
|
16 |
Supplier |
7.5% |
|
17 |
Capital gain |
15% |
|
18 |
Insurance premium |
10% |
|
19 |
Rental of machinery, equipment etc. |
15% |
|
20 |
604[Dividend— (a) company, fund and trust
(b) any other person not being a company, fund and trust |
20% |
|
21 |
Artist, singer or player |
30% |
|
22 |
Salary or remuneration |
30% |
|
23 |
23 Exploration or drilling in petroleum operations |
5.25% |
|
605[24 |
Survey for coal, oil or gas exploration |
5.25% |
| 24A | Fees, etc. of surveyors of general insurance company | 20% |
|
25 |
Any service for making connectivity |
5.25% |
|
26 |
Any payments against any services not mentioned above |
20% |
|
606[27 |
Bandwith payment |
10% |
| 28 | Any other payments | 20%] |
607[Provided that when any capital gain arises from the transfer of any share of a company, the person or the authority, as the case may be, responsible for effecting the transfer of shares shall not give any effect in respect of such transfer if tax on such capital gain has not been paid. ]
608[(2) Where, in respect of any payment under this section, the Board, on an application made in this behalf, is satisfied that due to tax treaty or any other reason the non-resident is not be liable to pay any tax in Bangladesh, or is liable to pay tax at a reduced rate in Bangladesh, the Board may issue a certificate 609[within thirty days from the date of receipt of such application accompanied by all the documents as required by the Board] to the effect that the payment referred to in sub-section (1) shall be made without any deduction or, in applicable cases, with a deduction at the reduced rate as mentioned in the certificate.
(2A) Tax deducted under this section shall be deemed to be the minimum tax liability of the payee in respect of the income for which the deduction is made, and shall not be subject of refund or set off or an adjustment against a demand.]
610[(3) For the purpose of this section—
(i) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52 of this Ordinance; and
(ii) “payment” includes a transfer, a credit, an adjustment of payment or an order or instruction of making payment. ]
611[57. (1)Where a person-
(a) fails to deduct or collect tax at source as required by or under the provisions of this Chapter; or
(b) deducts or collects tax at a lesser rate or in lesser amount; or
(c) after deducting or collecting tax under this Chapter, fails to pay the same to the credit of the Government, or pays to the credit of the Government an amount lower than the collected or deducted amount; or
(d) fails to comply with any other provision of this Chapter;
such person shall be deemed to be an asseesee in default, and without prejudice to any other consequences to which such person may be liable, shall be liable to pay–
(i) the amount of tax that has not been deducted or collected; or
(ii) the amount which was required to be deducted or collected under this Chapter as reduced by the amount that has been actually deducted or collected; or
(iii) the amount that, after being collected and deducted, has not been paid to the credit of the Government; or
(iv) a penalty not exceeding Taka ten lakhs for being non-compliant in respect of cases other than the cases mentioned above.
(2) In addition to the amount as mentioned in sub-section (1), the person shall also be liable to pay an additional amount at the rate of two percent (2%) per month on the amount other than the penalty as mentioned in clauses (i), (ii) and (iii) of sub-section (1), as the case or cases may be, calculated for the period-
(i) in the case of failure to deduct or collect, or of the deduction or collection at lower rate or amount, from the due date of the deduction or collection to the date of the payment of the amount, as mentioned in sub-clauses or (ii) of clause (c) of sub-section (1), as the case may be, to the credit of the Government;
(ii) in the case of failure to deposit the amount deducted or collected, from the date of deduction or collection to the date of payment of the amount, as mentioned in sub-clause (iii) of clause (c) of sub-section (1), to the credit of the Government.
(3) The period for which the additional amount under subsection (2) is calculated shall not exceed twenty-four months.
(4) The Deputy Commissioner of Taxes shall take necessary action for the realisation of the amount and penalty as mentioned in sub-section (1) and the additional amount as mentioned in sub-section (2) from the person referred to in sub-section (1) after giving the person a reasonable opportunity of being heard.
(5) Where the person responsible for deducting or collecting tax under this chapter is the Government, or any authority, corporation or body of the Government- including its units or a project or programme or activity where government has any financial or operational involvement-
(i) the individuals responsible for approving or allowing the payment; or
(ii) the individuals who is responsible for allowing, approving or granting any clearance, registration, license, permits, etc.
shall be jointly and severally liable to pay taxes, penalty or additional amount under this section.
(6) Where the person responsible for deducting or collecting tax under this chapter is a person other than the Government, or any authority, corporation or body of the Government- including its units or a project or programme or activity where government has any financial or operational involvement-
(i) the organization itself; and
(ii) the individuals responsible for approving or allowing the payment
shall be jointly and severally liable to pay taxes, penalty or additional amount under this section.
(7) No realisation of the amount mentioned in sub-section (1) shall be made if it is established that such amount has meanwhile been paid by the person from whom the deduction or collection was due.]
64. (1) Except as provided in sub-section (2), tax shall be payable by an assessee during each financial year by way of advance payment of tax, hereinafter referred to as “advance tax”, in accordance with the provisions hereafter made in this Chapter if the total income of the assessee for the latest income year in respect of which he has been assessed by way of regular assessment or has been provisionally assessed under this Ordinance or the Income-tax Act, 1922 (XI of 1922), exceeds 619[620[six] lakh taka].
(2) Nothing in sub-section (1) shall apply to any income classifiable under the heads “Agricultural income” and “Capital gains” 621[excluding gain from transfer of share of a company listed with a stock exchange].
68. Any person who has not previously been assessed by way of regular assessment under this Ordinance or the Income-tax Act, 1922 (XI of 1922), shall before the fifteenth day of June in each financial year, if his total income, subject to section 64(2), of the period which would be the income year for the immediately following assessment year is likely to exceed 624[625[six] lakh taka], send to the Deputy Commissioner of Taxes an estimate of his total income and advance tax payable by him calculated in the manner laid down in section 65 and shall pay such amount on such dates specified in section 66 as have not expired by instalments which may be revised according to section 67(2).
68B. (1) Every person owning a private motor car shall be deemed to have an income by which the motor car is maintained and shall pay advance income tax to be collected at the rate and in the manner as mentioned in sub-section (2).
(2) Subject to the provision of sub-section (3), the authority responsible for the registration and fitness renewal of motor car shall collect, on or before the date of registration or fitness renewal of the motor car, advance tax at the following rate-
627[Table
|
Serial No. |
Type and engine capacity |
Amount of tax (in taka) |
|
1 |
A car or a jeep, not exceeding 1500cc or 75kw |
25,000/- |
|
2 |
A car or a jeep, exceeding 1500cc or 75kw but not exceeding 2000cc or 100 kw |
50,000/- |
|
3 |
A car or a jeep, exceeding 2000cc or 100 kw but not exceeding 2500cc or 125 kw |
75,000/- |
|
4 |
A car or a jeep, exceeding 2500cc or 125 kw but not exceeding 3000cc or 150 kw |
1,25,000/- |
|
5 |
A car or a jeep, exceeding 3000cc or 150 kw but not exceeding 3500cc or 175 kw |
1,50,000/- |
|
6 |
A car or a jeep, exceeding 3500cc or 175 kw |
2,00,000/- |
|
7 |
A microbus |
30,000/- |
Provided that the rate of tax shall be fifty percent (50%) higher for each additional motor car if the owner has two or more motor cars in his name or in joint names with other person or persons.
628[(2A) In case of registration or fitness renewal of motor car for more than one year, advance tax under sub-section (2) shall be collected on or before 30th June in every subsequent year or years following the year in which registration or fitness renewal of motor car has been done.
(2B) Where any person fails to pay advance tax in accordance with sub-section (2A), the amount of advance tax payable shall be calculated following A+B formula, where-
A = the amount of advance tax not paid in the previous year or years; and
B = the amount of advance tax payable under sub-section (2) for the year in which an assessee is making the payment.]
(3) Advance tax under sub-section (2) shall not be collected if the motor car is owned by-
(i) the government and the local government;
(ii) a project, programme or activity under the government and the local government;
(iii) a foreign diplomat, a diplomatic mission in Bangladesh, United Nations and its offices;
(iv) a development partner of Bangladesh and its affiliated office or offices;
(v) an educational institution under the Monthly Payment Order of the Government;
(vi) a public university;
(vii) any entity that is not a person as defined under clause (46) of section (2) of this Ordinance;
(viii) a gazetted war-wounded freedom fighter; or
(ix) an institution that has obtained a certificate from the Board that advance tax shall not be collected from it.
(4) Where a person pays advance tax under sub-section (2), and the income from regular sources of the person results in a tax liability less than the said advance tax, the income of such person shall be deemed to be the amount that results a tax liability equal to the said advance tax.
(5) The advance tax paid under sub-section (2) shall not be refundable.
(6) In this section-
629[a) “motor car” includes a jeep or a microbus but does not include a motor vehicle mentioned in section 53Q and a motor cycle.]
(b) income from regular sources means income from any source other than the sources mentioned in sub-section (2) of section 82C.]
Chapter VIII
RETURN AND STATEMENT
639[75.(1) Subject to the provisions of sub-section (2), every person shall file or cause to be filed, with the Deputy Commissioner of Taxes, a return of income of the income year –
(a) if the total income of the person during the income year exceeds the maximum amount that is not chargeable to tax under this Ordinance; or
(b) if such person was assessed to tax for any one of the three years immediately preceding that income year; or
(c) if the person is-
(i) a company; or
(ii) a non-government organisation registered with NGO Affairs Bureau; or
(iii) a co-operative society; or
(iv) a firm; or
(v) an association of persons; or
(vi) a shareholder director or a shareholder employee of a company; or
(vii) a partner of a firm; or
(viii) an employee of the government or an authority, corporation, body or units of the government or formed by any law, order or instrument being in force, if the employee, at any time in the income year, draws a basic salary of taka sixteen thousand or more; or
640[(ix) an employee holding an executive or a management position in a business or profession; or]
641[(x) a Micro Credit Organisation having licence with Micro Credit Regulatory Authority; or
(xi) a non-resident having permanent establishment in Bangladesh.]
(d) if the person, not being an institution established solely for charitable purpose or a fund, has an income during the income year which is subject to tax exemption or lower tax rate under section 44; or
(e) if the person, at any time during the relevant income year fulfills any of the following conditions, namely:-
(i) owns a motor car; or
(ii) owns a membership of a club registered under 642[any law governing value added tax]; or
(iii) runs any business or profession having trade license from a city corporation, a paurashava or a union parishad; or
(iv) has registered with a recognized professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or any other similar profession; or
(v) has registered with the Board as an income tax practitioner; or
(vi) has a membership of a chamber of commerce and industries or a trade association or body; or
(vii) runs for an office of any paurashava, city corporation, or a Member of Parliament; 643[or]
(viii) participates in a tender floated by the government, semi-government, autonomous body or a local authority; or
(ix) serves in the board of directors of a company or a group of companies 644[; or
645[(x) participates in a shared economic activities by providing motor vehicle, space, accommodation or any other assets; or
(xi) owns any licensed arms; or]
646[(f) if such person is required to furnish proof of submission of return under section 184A:]
Provided that any non-resident Bangladeshi may file his return of income along with bank draft equivalent to the tax liability, if any, on the basis of such return, to his nearest Bangladesh mission and the mission will issue a receipt of such return with official seal and send the return to the Board.
647[ (2) A return of income under sub-section (1) shall not be mandatory for-
(i) an educational institution that receives government benefits under Monthly Payment Order (MPO) and does not have english version curriculum; or
(ii) a public university; or
(iii) a recognized provident fund, an approved gratuity fund, a pension fund, an approved superannuation fund; or
(iv) a non-resident individual having no fixed base in Bangladesh; or
(v) any class of persons which the Board may, by order in official gazette, exempt from filing the return.]
(3) Subject to the provision of sub-section (4), the return under sub-section (1) shall be-
(a) furnished in the prescribed form setting forth therein such particulars and information, and accompanied by such schedules, statements, accounts, annexures or documents as may be prescribed;
(b) signed and verified-
(i) in the case of an individual, by the individual himself; where the individual is absent from Bangladesh, by the individual concerned or by some person duly authorised by him in this behalf; and when the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;
(ii) in the case of a Hindu undivided family, by the Karta, and, where the Karta is absent from Bangladesh or is mentally incapacitated from attending to his affairs, by any other adult member of such family;
(iii) in the case of a company or a local authority, by the principal officer thereof;
(iv) in the case of a firm, by any partner thereof, not being a minor;
(v) in the case of any other association, by any member of the association or the principal officer thereof;
(vi) in the case of any other person, by that person or by any person competent to act on his behalf;
(c) accompanied by-
(i) in the case of individual, statements of assets, liabilities and life style as required under section 80;
(ii) in the case of a company, an audited statement of accounts and a computation sheet explaining the difference between the profit or loss shown in the statement of accounts and the income shown in the return.
(4) The Board may, by notification in the official Gazette, -
(a) specify that any return required to be filed under this section shall be filed electronically or in any other machine readable or computer readable media;
(b) specify the form and the manner in which such electronic, machine readable or computer readable returns shall be filed.
(5) Every return under this section shall be filed, unless the date is extended under sub-section (6), on or before the Tax Day:
Provided that an individual being Government official engaged in higher 648[education or training on deputation or leave] or employed under lien outside Bangladesh shall file return or returns for the period of such deputation or lien, at a time, within three months from the date of his return to Bangladesh.
(6) The last date for the submission of a return for a person may be extended by the Deputy Commissioner of Taxes upon the application by the person in the prescribed form:
Provided that the Deputy Commissioner of Taxes may extend the date up to two months from the date so specified and he may further extend the date up to two months with the approval of the Inspecting Joint Commissioner.
75A. (1) Every person, being a company or a co-operative society or a non-government organization registered with NGO Affairs Bureau 649[a Micro Credit Organisation having licence with Micro Credit Regulatory Authority, 650[a university], a private hospital, a clinic, a diagnostic centre, 651[an English medium school providing education following international curriculum, artificial juridical person, local authority,] a firm or an association of persons], shall file or cause to be filed, with the Deputy Commissioner of Taxes under whose jurisdiction he is an assessee, a return of tax deducted or collected under the provisions of Chapter VII of this Ordinance.
(2) The return under sub-section (1) shall be-
(a) furnished in the prescribed form setting forth therein such particulars and information, and accompanied by such schedules, statements, accounts, annexures or documents as may be prescribed;
(b) signed and verified in the manner as specified in 652[clause (b)] of sub-section (3) of section 75;
(c) filed half-yearly by the following dates-
(i) First return: by Thirty-first January of the year in which the deduction or collection was made;
(ii) Second return: by Thirty-first July of the next year following the year in which the deduction or collection was made:
Provided that the last date for the submission of a return as specified in this sub-section may be extended by the Deputy Commissioner of Taxes upto fifteen days from the date so specified.
(3) The Board may, by notification in the official Gazette,-
(a) specify 653[the cases in which the] return required to be filed under this section shall be filed electronically or in any other machine readable or computer readable media;
(b) specify the form and the manner in which such electronic, machine readable or computer readable returns shall be filed.
75AA. (1) The Deputy Commissioner of Taxes, with the approval of the 654[Commissioner], shall select a number of returns of withholding tax filed under section 75A for audit.
(2) The Deputy Commissioner of Taxes shall conduct the audit of the selected return in respect of the following matters-
(a) whether the tax has been deducted or collected at the rate, in the amount and in the manner as provided in Chapter VII of this Ordinance and the rules made thereunder;
(b) whether the tax collected or deducted has been paid to the credit of the Government, or has been paid in accordance with the manner and within the time as prescribed;
(c) whether the certificate of tax deduction or collection has been furnished in accordance with the provisions of this Ordinance.
(3) Where an audit under sub-section (2) results in findings that the provisions of this Ordinance in respect of the matters mentioned in clauses (a), (b) or (c) of sub-section (2) have not complied with, the Deputy Commissioner of Taxes conducting the audit may take necessary actions under this Ordinance, including the actions under sections 57, 57A and 124.
(4) No return shall be selected for audit after the expiry of four years from the end of the year in which the return was filed.]
80. 661[(1) Every individual assessee, being resident Bangladeshi, shall furnish in the forms and manners as prescribed, a statement in respect of all 662[local and global] assets and liabilities of the person or the spouse, minor children and dependents of the person as on the last date of the income year if the person-
(a) has, in the last date of the income year, a gross wealth exceeding taka forty lakh; or
(b) owns a motor car; or
(c) has made an investment in a house property or an apartment in the city corporation area.
(2) Every individual assessee who, under sub-section (1) is not required to submit the statement may voluntarily submit such statement.
(3) Every individual assessee, being a non-resident Bangladeshi, shall submit the statement referred in sub-section (1) only in respect of assets located in Bangladesh.
Every individual assessee, being a non-Bangladeshi, shall submit the statement referred in sub-section (1) only in respect of assets located in Bangladesh.
(5) Every individual assessee, whose total income does exceed Taka four lakh as on the last date of the income year shall furnish, in the forms and manners as prescribed, a statement of expenses relating to the life style of the person.
(6) Every individual assessee, being a shareholder director of a company, shall furnish, irrespective of the total income, in the forms and manners as prescribed, a statement of expenses relating to the life style of the person.
(7) Where any statement as mentioned in sub-section (1) or in sub-section (5) is not submitted by a person being an individual, the Deputy Commissioner of Taxes may require, by notice in writing, to submit the same by person within the time as mentioned in the notice.
Chapter IX
ASSESSMENT
674[82BB. (1) Where an assessee files a return of income mentioning twelve-digit Taxpayer's Identification Number (TIN) in compliance with the conditions and within the time specified in section 75 and pays tax in accordance with the provision of section 74, he shall be issued by the Deputy Commissioner of Taxes or any other official authorised by him, an acknowledgment of receipt of the return and such acknowledgment shall be deemed to be an order of assessment of the Deputy Commissioner of Taxes.
(2) The Deputy Commissioner of Taxes shall process the return filed under sub-section (1) in the following manner, namely:-
(a) income shall be computed after making the adjustments in respect of any arithmetical error in the return or any incorrect claim which is apparent from the existence of any information in the return or in any statement or document filed therewith;
(b) tax and any other amount payable under this Ordinance shall be computed on the basis of the income computed under clause (a); and
(c) the sum, payable by or refundable to the assesse, shall be determined after giving credit of the sum paid by way of advance tax including the tax paid at source and the tax paid under this Ordinance.
(3) Where the process of return results in a difference in the amount of income, tax or other material figures than the amount mentioned in the return filed under sub-section (1), the Deputy Commissioner of Taxes shall serve a notice to the assessee-
(a) communicating him about the difference and enclosing with the notice a sheet of computation of income, tax, refund or other related particulars that resulted from the process of return;
(b) giving him an opportunity to explain his position in writing within the time specified in the notice where the process of return results in additional liability or in reduction of refund, as the case may be; and
(c) giving him an opportunity to-
(i) file an amended return, in the applicable cases, within the time specified in the notice, addressing the difference mentioned in the notice; and
(ii) pay, within the time specified in the notice, the tax and any other amount that becomes payable as a result of the process;
(4) Where a notice under sub-section (3) is served, the Deputy Commissioner of Taxes shall-
(a) send a letter of acceptance of amended return within 675[ninety] days where all of the following conditions are fulfilled-
(i) an amended return is filed in accordance with the provision of clause (c) of sub-section (3);
(ii) any tax or any other amount, payable under this Ordinance as a result of the process, has been paid on or before the submission of the amended return; and
(iii) the difference mentioned in sub-section (3) has been duly resolved in the return;
(b) serve, after the expiry of the date of response of the assessee as mentioned in the notice under sub-section (3), a notice of demand along with a sheet of computation of income, tax, refund or other related particulars where any of the conditions mentioned in clause (a) is not fulfilled:
Provided that a notice of demand shall be served within 676[ nine] months from the date of serving notice under sub-section (3).
(5) Where, after filing the return under sub-section (1), the assessee finds that owing to any unintentional mistake the tax or any other amount payable under this Ordinance has been paid short or computed short by reasons of underreporting of income or overreporting of rebate, exemption or credit or for any other reasons, he may file to the Deputy Commissioner of Taxes an amended return-
(a) attaching with the amended return a written statement mentioning the nature and the reason for the mistake;
(b) paying in full, on or before filing the amended return -
(i) the tax and any other amount that was paid short or computed short; and
(ii) an interest at the rate of two percent (2%) per month on the amount mentioned in sub-clause (i);
and if the Deputy Commissioner of Taxes is satisfied that the amended return is filed in compliance with the conditions mentioned in clause (a) and (b), he may allow the amended return:
Provided that no amended return shall be allowed-
(a) after the expiry of one hundred and eighty days from the date of filing the original return under sub-section (1); or
(b) after the original return has been selected for audit under sub-section (7).
(6) No notice under sub-section (3) shall be served after the expiry of twelve months from the date of the submission of return under sub-section (1) or amended return under sub-section (5), as the case may be.
(7) The Board or any authority subordinate to the Board, if so authorised by the Board in this behalf, may select, in the manner to be determined by the Board, a number of returns filed under sub-section (1) or of amended returns accepted under clause (a) of sub-section (4) or of amended returns allowed under sub-section (5), and refer the same to the Deputy Commissioner of Taxes for the purpose of audit:
Provided that a return filed or an amended return accepted or allowed under this section shall not be selected for audit where-
(a) such return or amended return 677[except the return of income of a financial institution] shows at least fifteen percent (15%) higher total income than the total income assessed in the immediately preceding assessment year; and
(b) such return or amended return-
(i) is accompanied by corroborative evidence in support of income exempted from tax;
(ii) is accompanied by a copy of bank statement or account statement, as the case may be, in support of any sum or aggregate of sums of loan exceeding taka five lakh taken other than from a bank or financial institution;
(iii) does not show the receipt of gift during the year;
(iv) does not show any income which is subject to tax exemption or reduced tax rate under section 44; or
(v) does not show or result any refund 678[; and
(c) the assessee has complied with the provisions of sections 75A, 108 and 108A.]
(8) Where after conducting the audit the Deputy Commissioner of Taxes is satisfied that the affairs of the assessee has not been duly reflected in the return or the amended return or in statements and documents submitted therewith, he shall communicate the findings of the audit to the assessee and serve a notice requiring him to file a revised return reflecting the findings of the audit, and pay tax and any other applicable amount on the basis of the revised return on or before the filing of such revised return.
(9) Where a revised return is filed and the Deputy Commissioner of Taxes is satisfied that the findings of audit has been duly reflected in the revised return and the tax and any other applicable amount have been fully paid in compliance with the provision of sub-section (8), he may accept the revised return and issue a letter of acceptance to the assessee.
(10) Where after the service of notice under sub-section (8) no revised return is filed or the revised return that has been filed does not reflect the findings of the audit, or tax or other applicable amount has not been paid in compliance with the provisions of sub-section (8), the Deputy Commissioner of Taxes shall proceed to make assessment under section 83 or 84, whichever is applicable.
(11) In the case of a return submitted under sub-section (1), no question as to the source of initial capital of the business or profession of a new assessee shall be raised, if the assessee-
(a) shows income which exceeds the tax exemption threshold and which is not less than twenty percent (20%) of the initial capital invested in the business or profession;
(b) pays tax on such income at regular tax rate along with any other applicable amount on or before filing of return; and
(c) mentions in writing that the return falls under this sub-section.
(12) In the case of a return for which the provision of sub-section (11) applies, the minimum amount of capital maintained in the business or profession at the end of the income year and four subsequent income years shall be equal to the initial capital; andany amount of shortfall of the capital in any income year shall be deemed as "income from business or profession" for that income year and shall be included in total income of the assessee.
(13) For the purpose of this section-
(a) a return includes any statement required to be filed under section 80;
(b) “an incorrect claim which is apparent from the existence of any information in the return or in any statement or document filed therewith” shall mean a claim, on the basis of an entry, in the return or in the statement or document submitted with the return-
(i) of an item, which is inconsistent with another entry of the same, or some other item, in such return, statement or document; or
(ii) in respect of a deduction, exemption, rebate or credit, where such deduction, exemption, rebate or credit exceeds the specified statutory limit which may have been expressed as monetary amount, percentage, ratio or fraction;
(c) “regular tax rate” means the rate of tax that would be applicable if the tax exemption or the reduced rate were not granted;
(d) in calculating fifteen percent (15%) higher total income, the income from the sources that are common between the assessment years for which the return under sub-section (1) has been filed and the immediately preceding assessment year shall be considered.]
679[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, 680[SL. No. 1, 2 and 681[14] of the Table of sub-section (1) of section 52AA] 52AAA, 52B, 52C, 52D, 52JJ, 52N, 52O, 682[52Q], 52R, 53, 53AA, 53B, 53BB, 53BBB, 683[***] 53C, 53CCC, 53DDD 684[, 53E], 53EE, 53F, 53FF, 53G, 53GG, 53H, 53M, 53N 685[, 53P] 686[, 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 687[,except an industrial undertaking engaged in producing cement, iron or iron products, 688[ferro alloy products,689[perfumes and toilet waters, 690[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 691[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 |
692[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 693[less cost of acquisition] |
as mentioned in section 53H and the rule made thereunder |
| 694[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).
695[(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 |
696[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) “697[regular tax rate]” means the rate of tax, that would be applicable if the tax exemption or the reduced rate were not granted.]
698[(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.]
699[82D. (1)Where a person is found to have taxable income or required to submit tax return or required to comply with any provision of the Ordinance and the person has failed to perform or comply with requirements of the Ordinance, the Deputy Commissioner of Taxes, empowered to this end, may assess the tax liability of such person on the spot.
(2) Where assessment of an assessee being individual having income from business or profession is made under this section applying regular rate and the asseesee pays tax accordingly, no question as to the initial capital not exceeding five times of such assessed income shall be made.
(3) Commissioner of Taxes may empower any Deputy Commissioner of Taxes who is subordinate to him to conduct spot assessments within his jurisdiction.
(4) The Board shall issue guidelines as to the manner how assessment under this section shall be made.]
709[93. (1) If, based on the information from an audit, assessment or any other proceeding under this Ordinance or from any other source, the Deputy Commissioner of Taxes has reason to believe that any sum payable by an assessee under this Ordinance has escaped payment in any assessment year, the Deputy Commissioner of Taxes may issue a notice in the form specified by the Board upon the assessee requiring him to-
(a) file for the relevant assessment year, within the time as specified in the notice, a return of his income along with the applicable statement and documents; and
(b) pay on or before the filing of the return the sum that has been escaped payment.
(2) The Deputy Commissioner of Taxes shall-
(a) send a letter of acceptance of the return where all of the following conditions are fulfilled-
(i) the return is filed within the time mentioned in the notice under sub-section (1) and in compliance with the provisions of that sub-section;
(ii) the sum that escaped payment has been paid on or before the filing of the return; and
(iii) the issue for which the sum escaped payment has been duly addressed in the return;
(b) proceed to make assessment under section 83 or 84, as the case may be, where any of the conditions mentioned in clause (a) is not fulfilled.
(3) The Deputy Commissioner of Taxes shall obtain the approval of the Inspecting Joint Commissioner in writing before issuing a notice under sub-section (1) where-
(a) return for the relevant assessment year was filed in compliancewith the provision of sub-section (1) of section 82BB; or
the assessment of the relevant assessment year is completed under any other provision of this Ordinance.
(4) A notice under sub-section (1) may be issued by the Deputy Commissioner of Taxes-
(a) at any time where, for the relevant assessment year, no return was filed and no assessment was made;
(b) within six years from the end of the relevant assessment year where, for the relevant assessment year, no return was filed but assessment is completed;
(c) within 710[six] years from the end of the relevant assessment year in any other cases:
711[***]
Provided 712[***] that in a case where a fresh assessment is made for any assessment year in pursuance of any provision under this Ordinance, the period referred to in this sub-section shall commence from the end of the year in which the fresh assessment is made.
(5) In computing the period of limitation for the purpose of making an assessment or taking any other proceedings under this Ordinance, the period, if any, for which such assessment or other proceedings has been stayed by any court, tribunal or any other authority, shall be excluded.
(6) Notwithstanding anything contained in sub-section (4), where an assessment or any order has been annulled, set aside, cancelled or modified, the concerned income tax authority may start the proceedings from the stage next preceding the stage at which such annulment, setting aside, cancellation or modification took place, and nothing contained in this Ordinance shall render necessary the re-issue of any notice which has already been issued or the re-furnishing or refiling of any return, statement or other particulars which has already been furnished or filed, as the case may be.
(7) An assessment under sub-section (2) of an assessee who was already assessed for the relevant year shall be confined to the issues that have been mentioned in the notice served under sub-section (1).
(8) The Deputy Commissioner of Taxes shall not be barred from taking proceedings under this section for an assessment year on the grounds that the proceeding under sub-section (2) is earlier concluded in respect of that assessment year.
(9) In this section-
(a) Any sum payable by an assessee under this Ordinance shall be deemed to have escaped payment if –
(i) the income or a part thereof has escaped assessment; or
(ii) the income has been understated; or
(iii) excessive loss, deduction, allowance or relief in the return has been claimed; or
(iv) the liability of tax or any other amount payable under this Ordinance has been shown or computed lower by concealment or misreporting of any income or by concealment or misreporting of any assets, expenditure or any other particulars in a statement submitted under section 80; or
(v) income chargeable to tax has been under-assessed, or income has been assessed at a lower than due tax rate; or
(vi) income that is subject to tax has been made the subject of tax exemption; or
(vii) income has been made the subject of excessive relief, or excessive loss or depreciation allowance or any other allowance under this Ordinance has been computed; or
(viii) a tax or an amount, payable under this Ordinance, has been computed or paid lower than due amount by reason of lower base.
(b) “relevant assessment year” is the assessment year for which any sum payable by an assessee under this Ordinance has escaped payment.]
94. 713[(1) Subject to the provisions of sub-sections (2) and (3), after the expiry of-
(a) two years from the end of the assessment year in which the income was first assessable if the assessment is to be made as a result of audit under section 82BB;
(b) three years from the end of the relevant assessment year in which the income was first assessable if the assessment is to be made under section 107C; or
(c) six months from the end of the assessment year in which the income was first assessable if the assessment is to be made in a case other than the cases mentioned in clause (a) or (b);
no order of assessment under the provisions of this Chapter, in respect of any income, shall be made.
(2) An assessment under section 93 may be made within two years from the end of the year in which the notice under sub-section (1) of section 93 was issued.]
(3) Notwithstanding anything contained in this section, limiting the time within which any action may be taken, or any order or assessment may be made, order or assessment, as the case may be, to be made on the assessee or any other person in consequence of, or to give effect to, any finding or direction contained in an order under sections 120, 121, 714[* * *] 156, 159, 161 or 162 or, in the case of a firm, an assessment to be made on a partner of a firm in consequence of an assessment made on the firm, 715[or an agreement reached under section 152O, shall be made within thirty days from the date on which the order or the agreement] was communicated] 716[and communicate such revised order to the assessee within thirty days next following] 717[:
Provided that where an order of assessment has been set aside by any authority in that case the assessment shall be made within 718[sixty] days from the date on which the order was communicated to him.]
Explanation I.-Where by an order under 719[sections 120, 121A, 156, 159, 161 or 162], any income is excluded from the total income of the assessee for an assessment year, an assessment of such income for another assessment year shall, for the purposes of this section, be deemed to be one made in consequence of, or to give effect to, any finding or direction contained in the said order.
Explanation II.-Where by an order under 720[sections 120, 121A, 156, 159, 161 or 162], any income is excluded from the total income of one person and held to be the income of another person, an assessment of such income of such other person, shall, for the purposes of this section, be deemed to be one made in consequence of or to give effect to, any finding or direction contained in the said order.
721[(4) where the Deputy Commissioner of Taxes fails to give effect to any finding or direction contained in an order referred to in sub-section (3) within the period stipulated therein, such failure of the Deputy Commissioner of Taxes shall be construed as misconduct.]
94A. [Omitted by section 31 of the Finance Act, 2003 (Act No. XVII of 2003).]
722[94B. (1) Notwithstanding anything contained in any provision of this Ordinance or in any other law for the time being in force, no authority save the authorities mentioned in section 3 or the courts and authorities mentioned in Chapter XIX shall have right to question any assessment made under this Chapter.
(2) Any action taken in violation of the provision of sub-section (1) shall be null and void and have no legal effect.]
Chapter X
LIABILITY IN SPECIAL CASES
100. (1) Where any private company is wound up 723[or has discontinued business for three successive years] and any tax assessed on the company, whether before, or in the course of, or after its liquidation, in respect of any income of any income year cannot be recovered, every person who was, at any time during the relevant income year, a director of that company, shall, notwithstanding anything contained in 724[the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন)], be jointly and severally liable to pay the said tax and shall, for the purposes of recovery thereof, be deemed to be an assessee in respect of such tax; and the provisions of this Ordinance shall apply accordingly.
(2) Notwithstanding the provisions of sub-section (1), the liability of any person thereunder in respect of the income of a private company shall cease if he proves to the Deputy Commissioner of Taxes that non-recovery of tax from the company cannot be attributed to any gross neglect, misfeasance or breach of any duty on his part in relation to affairs of the company.
Chapter XI
SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX
732Chapter XIA
Transfer Pricing
107A. In this Chapter, unless there is anything repugnant in the subject or context, -
(1) "arm’s length price" means a price in a transaction, the conditions (e.g. price, margin or profit split) of which do not differ from the conditions that would have prevailed in a comparable uncontrolled transaction between independent entities carried out under comparable circumstances;
(2) “associated enterprise”, in relation to another enterprise, means an enterprise which, at any time during the income year, has the following relationship with the other enterprise-
(a) one enterprise participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or
(b) the same person or persons participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital, of both enterprises; or
(c) one enterprise holds, directly or indirectly, shares carrying more than twenty five percent of the voting power in the other enterprise; or
(d) the same person or persons controls shares carrying more than twenty five percent of the voting power in both enterprises; or
(e) the cumulative amount of borrowings of one enterprise from the other enterprise constitutes more than fifty percent of the book value of the total assets of that other enterprise; or
(f) the cumulative amount of guarantees provided by one enterprise in favour of the other enterprise constitutes more than ten percent of the book value of the total borrowings of the other enterprise; or
(g) more than half of the board of directors or members of the governing board of one enterprise are appointed by the other enterprise; or
(h) any executive director or executive member of the governing board of one enterprise is appointed by, or is in common with the other enterprise; or
(i) the same person or persons appoint more than half of the board of directors or members in both enterprises; or
(j) the same person or persons appoint any executive director or executive member in both enterprises; or
(k) one enterprise has the practical ability to control the decision of the other enterprise; or
(l) the two enterprises are bonded by such relationship of mutual interest as may be prescribed;
(3) “enterprise” means a person or a venture of any nature (including a permanent establishment of such person or venture);
(4) "independent enterprise" means an enterprise that is not an associated enterprise;
(5) "international transaction" means a transaction between associated enterprises, either or both of whom are non-residents, in the nature of purchase, sale or lease of tangible or intangible property, or provision of services, or lending or borrowing money, or any other transaction having a bearing on the profits, income, losses, assets, financial position or economic value of such enterprises, and includes-
(a) a mutual agreement or arrangement between two or more associated enterprises for the allocation or apportionment of, or any contribution to, any cost or expense incurred or to be incurred in connection with a benefit, service or facility provided or to be provided to any one or more of such enterprises;
(b) a transaction entered into by an enterprise with a person 733[irrespective of whether such other person is a non-resident or not] other than an associated enterprise, if there exists a prior agreement in relation to the relevant transaction between such other person and the associated enterprise, or the terms of the relevant transaction are determined in substance between such other person and the associated enterprise;
734[***]
(7) "property" includes goods, articles, things or items, patent, invention, formula, process, design, pattern, know-how, copyright, trademark, trade name, brand name, literary, musical, or artistic composition, franchise, license or contract, method, program, software, database, system, procedure, campaign, survey, study, forecast, estimate, customer list, technical data, any aspects of advertising and marketing, any item which has substantial value, or any other intangible property;
(8) "record" includes electronically held information, documents and records;
(9) "Transfer Pricing Officer" means any income tax authority authorised by the Board to perform the function of a Transfer Pricing Officer;
(10) "transaction" includes an arrangement, understanding or action between two or more parties, whether or not such arrangement, understanding or action is formal or in writing; or whether or not it is intended to be enforceable by legal proceeding;
(11) "uncontrolled transaction" means a transaction undertaken between enterprises not being the associated enterprises.
107C.(1) The arm’s length price in relation to an international transaction shall be determined by applying the most appropriate method or methods selected from the following methods based on the nature of transaction, the availability of reliable information, functions performed, assets employed, risks assumed or such other factors as may be prescribed, namely:-
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method;
(f) any other method where it can be demonstrated that-
(i) none of the methods mentioned in clause (a) to (e) can be reasonably applied to determine the arm's length price for the international transaction; and
(ii) such other method yields a result consistent with the arm's length price.
735[1A) Where the most appropriate method applied is a method other than the method referred to in clause (d) or clause (f) of sub-section (1) and the dataset of the arm’s length price consists of six or more entries, an arm’s length range beginning from the thirty percentile of the dataset and ending on the seventy percentile of the dataset shall be constructed and the arm’s length price shall be-
i. if the price at which the international transaction has actually been undertaken is within the range referred as above, then the price at which such international transaction has actually been undertaken shall be deemed to be the arm’s length price;
ii. if the price at which the international transaction has actually been undertaken is outside the arm’s length range referred as mentioned above, the arm’s length price shall be taken to be the median of the dataset
In a case the dataset is less than six entries, the arm’s length price shall be the arithmetical mean of all the values included in the dataset.]]
(2) The most appropriate method referred to in sub-section (1) shall be applied for determination of arm’s length price in the manner as may be prescribed:
Provided that the arm’s length price determined under this section shall not result in total income lower than the total income that would have been resulted if the price at which international transaction has actually been undertaken were taken as the price charged or paid in the said international transaction.
(3) Where in the course of any assessment under Chapter IX of this Ordinance, the Deputy Commissioner of Taxes is of the opinion thatÔÇö
(a) the price charged or paid in an international transaction has not been determined by the assessee in accordance with sub-sections (1) and (2); or
(b) the assessee has failed to maintain the information, documents or records in accordance with the provisions of section 107E; or
(c) the information or data based on which the arm's length price was computed by the assessee is not reliable or correct;
the Deputy Commissioner of Taxes may determine the arm’s length price in relation to the said international transaction in accordance with provisions of sub-sections (1) and (2) on the basis of information or documents or other evidence available to him.
(4) In determining the arm’s length price under sub-section (3), the Deputy Commissioner of Taxes shall give an opportunity to the assessee by serving a notice calling upon him to show cause, on a date and time to be specified in the notice, why the arm’s length price should not be so determined on the basis of information or documents or other evidence available to the Deputy Commissioner of Taxes.
(5) Where an arm’s length price is determined under sub-section (3) of this section or under sub-section (4) of section 107D, the Deputy Commissioner of Taxes shall, by an order in writing, proceed to compute the total income of the assessee having regard to the arm’s length price so determined.
107D. (1) Notwithstanding anything contained in section 107C of this Ordinance,-
(a) the Deputy Commissioner of Taxes, with prior approval of the Board, may refer the determination of the arm’s length price under section 107C to the Transfer Pricing Officer;
(b) the Transfer Pricing Officer, with prior approval of the Board, may proceed to determine the arm’s length price in relation to any international transaction.
(2) Where a reference is made or any proceedings have been initiated under sub-section (1), the Transfer Pricing Officer shall serve a notice on the assessee requiring him to produce or cause to be produced on a date to be specified therein, any evidence on which the assessee may rely in support of his computation of the arm’s length price in relation to the international transaction in question.
(3) The Transfer Pricing Officer shall, after considering the evidence produced before him or available to him including the evidence as he may require on any specified points from the assessee or from any other person, and after taking into account all relevant materials which he has gathered shall, by order in writing, determine the arm’s length price in relation to the international transaction in accordance with section 107C of this Ordinance and send a copy of his order to the Deputy Commissioner of Taxes.
(4) The Deputy Commissioner of Taxes, upon receipt of the order under sub-section (3), shall proceed to compute the total income of the assessee in conformity with the arm’s length price so determined by the Transfer Pricing Officer 736[and in computing the income of a person that is exempted from tax or is subject to a reduced rate of tax, the adjustment made in conformity with the arm’s length price so determined by the Transfer Pricing Officer shall be treated as income of such person and tax shall be payable on such income at the regular rate].
(5) The Transfer Pricing Officer may rectify any order passed by him under sub-section (3) so as to correct any mistake apparent from the record either of his own motion or on the mistake having been brought to his notice by the assessee or any other income tax authority, and the provisions of section 173 of this Ordinance shall, so far as may be, apply accordingly.
(6) Where any rectification is made under sub-section (5), the Transfer Pricing Officer shall send a copy of his order to the Deputy Commissioner of Taxes who shall thereafter proceed to amend the order of assessment in conformity with such order of the Transfer Pricing Officer.
Chapter XII
REQUIREMENT OF FURNISHING CERTAIN INFORMATION
Chapter XIII
[REGISTRATION OF FIRMS-Omitted]
Chapter Chapter XIIIA
743[Startup Sandbox]
744[111A. (1) Notwithstanding anything contained in this Ordinance, the provisions of this section shall have overriding effect over all other provisions of this Ordinance.
(2) In determining “income from business or profession” of a startup registered under this section, sections 30 and 30B shall not be applicable for growth years.
(3) Where in any growth year, any loss is incurred by a startup registered under this section and the loss cannot be wholly so set off, the amount of the loss not so set off shall be carried forward to the next assessment year and so on for not more than nine successive assessment years.
(4) The rate of minimum tax as provided in sub-section (4) of section 82C for growth years of a startup registered under this section shall be 0.1% (zero point one percent).
(5) Save as provided in section 75, a startup registered under this section shall have no reporting obligation under this Ordinance for growth years if the startup provides permanent access to its system or books to the income tax authority.
(6) A startup, to enjoy the benefit of sandbox, shall be registered with the Board in the manner as required by the Board.
(7) A startup shall not be eligible for registration under this section, if it –
(a) is incorporated prior to first day of July 2017; or
(b) is incorporated between first day of July 2017 and thirtieth day of June 2022 and fails to get registration by the thirtieth day of June 2023; or
(c) is incorporated on or after first day of July 2022 and fails to get registration under this section by thirtieth June of every year following the year of its incorporation.
(8) For the purpose of this section-
(a) “growth years” means-
(i) for the purpose of clause (b) of sub-section (7), a period of three years that starts with first day of July 2023 and ends with the thirtieth day of June 2026.
(ii) for the purpose of clause (c) of sub-section (7), a period of five years that starts with first day of July of the year following the year of incorporation.
(b) “innovation” means the process of creating value by offering novel solution or making a significant improvement to any prevailing solution to any significant problem or a set of problems.
(c) “startup” means a company with annual turnover not exceeding Taka 100 crore in any financial year and that-
(i) is incorporated under কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন); and
(ii) works towards deployment or commercialization of new products, process or service driven by innovation, development and technology or intellectual property; and
(iii) is not a subsidiary of another company holding fifty percent or more of its shares; and
(iv) is not a resulting company of a scheme of amalgamation or demerger.
Chapter XIV
POWERS OF INCOME TAX AUTHORITIES
113. The Deputy Commissioner of Taxes, the Inspecting Joint Commissioner, 745[the Commissioner, the Director General, Central Intelligence Cell,746[Directors-General of Inspection (Taxes),] or any other officer authorised in this behalf by the Commissioner or the Board may, for the purposes of this Ordinance, by notice in writing, require-
(a) any firm, to furnish him with a statement of the names and addresses of the partners and their respective shares;
(b) any Hindu undivided family, to furnish him with a statement of the names and addresses of the manager and the members of the family;
(c) any person, whom he has reason to believe to be a trustee, guardian or agent to furnish him with a statement of the names and addresses of the persons for or of whom he is trustee, guardian or agent;
(d) any assessee to furnish him with a statement of the names and addresses of all persons to whom he has paid in any income year any rent, interest, commission, royalty or brokerage, or any annuity, not being an annuity classifiable under the head “Salaries”, amounting to more than three thousand taka, together with particulars of all such payment;
(e) any dealer, broker or agent, or any person concerned in the management of a Stock Exchange, to furnish a statement of the names and addresses of all persons to whom he or the Exchange has paid any sum in connection with the transfer of capital assets, or on whose behalf or from whom he or the Exchange has received any such sum, together with the particulars of all such payments and receipts; or
(f) any person, including a banking company, to furnish information in relation to such points or matters, or to furnish such statement or accounts giving such particulars, as may be specified in the notice:
Provided that no such notice on a banking company shall be issued by the Deputy Commissioner of Taxes or the Inspector, without the approval of the Commissioner, 747[***].
785[117A. (1)An authority, empowered in writingby the Commissioner of Taxes, Director General of Inspection or Director General of Intelligence Cell to verify deduction or collection of tax at source or to enforce the provisions of Chapter VII of this Ordinance, -
(a) shall have full and free access to the premises, places, products, books of accounts and records of economic activities maintained in any form or manner;
(b) shall have access to any information, code or technology which has the capability of retransforming or unscrambling encrypted data contained or available to such computers into readable and comprehensive format or text;
(c) may extract the data, images or any inputs stored in the electronic records and systems or enter the systems by breaking through password protection or copy or analyse the data, books of accounts, documents, images or inputs;
(d) may place marks of identification on or stamp any books of accounts or other document or make or cause to be made extracts or copies therefrom;
(e) may impound and retain any such books of accounts, documents, electronic records and systems; and
(f) may require any person to perform or refrain from activities as directed;
(2) An authority empowered under sub-section (1), may be accompanied by experts, valuer or forces as he reasonably thinks fit.
(3) Where any authority empowered under sub-section (1) is obstructed, hindered or unassisted by any person, the person in whose premise or place the authority has entered or intended to enter shall be liable to a penalty not exceeding Taka fifty lakh.
(4) Where a person is found to be in default in respect of compliance of this section or Chapter VII of this Ordinance, the Deputy Commissioner of Taxes shall, after recording explanation of the person so in default or ex parte where no explanation is found, proceed to recover the amount of taxes along with penalties by making an assessment thereof.]
Chapter XV
IMPOSITION OF PENALTY
794[124. (1) Where any person has, without reasonable cause, failed to file a return of income required by or 795[under sections 75, 77, 89, 91 or 93], the Deputy Commissioner of Taxes may impose upon such person a penalty amounting to ten per cent of tax imposed on last assessed income subject to a minimum of 796[taka one thousand], and in the case of a continuing default a further penalty of 797[taka fifty] for every day during which the default continues 798[ :
Provided that such penalty shall not exceed-
(a) in case of an assessee, being an individual, whose income was not assessed previously five thousand taka;
(b in case of an assessee, being an individual, whose income was assessed previously, fifty per cent (50%) of the tax payable on the last assessed income or taka one thousand, whichever is higher.]
799[800[(2) Where any person has, without reasonable cause, failed to file or furnish any return, certificate, statement or information required under sections 58, 75A, 103A, 108, 108A, 109, or 110, the Deputy Commissioner of Taxes may impose upon such person-
where the return, statement or information under sections 75A, 108 or 108A has not been filed or furnished, a penalty amounting to ten per cent of tax imposed on last assessed income or five thousand taka, whichever is higher, and in the case of a continuing default, a further penalty of one thousand taka for every month or fraction thereof during which the default continues;
(b) in other cases of non-compliance, a penalty amounting to five thousand taka, and in the case of a continuing default, a further penalty of one thousand taka for every month or fraction thereof during which the default continues.]
(3) Where any person has, without any reasonable cause, failed to furnish information as required under section 113, the income tax authority requiring the information under section 113 may impose a penalty of twenty five thousand taka and in case of a continuing default a further penalty of five hundred taka for each day.]
802[***]
Chapter XVI
RECOVERY OF TAX
143. (1) Notwithstanding the issue of a certificate for recovery of tax under section 138 or section 142, the Deputy Commissioner of Taxes may also recover the tax in the manner provided 826[in sub-section (1A) or (2)].
827[(1A) For the purpose of recovery of tax payable by an assessee which is not disputed in appeal to any appellate forum, the Deputy Commissioner of Taxes may, with the previous approval of the Commissioner, after giving the assessee an opportunity of being heard, stop movement of any goods and services from the business premises of such assessee and also shutdown such business premises till the recovery of the tax referred to above or any satisfactory arrangement has been made for the recovery of such tax.]
(2) For the purposes of recovery of any tax payable by an assessee, the Deputy Commissioner of Taxes may, by notice in writing, require any person.-
828[“(a) from whom any money or goods is due or may become due to the assessee, or who holds, or controls the receipt or disposal of, or may subsequently hold, or control the receipt or disposal of, any money or goods belonging to, or on account of, the assessee, to –
(i) pay to the Deputy Commissioner of Taxes the sum specified in the notice on or before the date specified therein for such payment; or
(ii) stop the transfer of that goods to the assessee or the placement of that goods under the disposal of the assesse until the amount of tax mentioned in the notice has been paid or a satisfactory arrangement has been made with the Deputy Commissioner of Taxes for payment of such tax; or]
(b) Who is responsible for payment of any sum to the assessee classifiable as income of the assessee under the head “Salaries”, to deduct from any payment subsequent to the date of the notice, any arrear of tax due from the assessee, and to pay the sum so deducted to the credit of the Government 829[;]
830[(c) who is responsible for supplying gas, electricity, water or any other services to disconnect or discontinue such supply within twenty one days from the date of receipt of such notice.]
(3) A person who has paid any sum as required by sub-section (2) (a) shall be deemed to have paid such sum under the authority of the assessee and the receipt by the Deputy Commissioner of Taxes shall constitute a good and sufficient discharge of the liability of such person to the assessee to the extent of the sum specified in the receipt.
(4) A person who has deducted any sum as required by sub-section (2) (b) shall be deemed to have deducted the tax under section 50 and the relevant provisions of Chapter VII shall apply accordingly.
(5) If the person to whom a notice under sub-section (2) is sent fails to make payment or to make deductions in pursuance of the notice, he shall be deemed to be an assessee in default in respect of the amount specified in the notice and proceedings may be taken against him for realisation of the amount as if it were an arrear of tax due from him; and the provisions of this Chapter shall apply accordingly.
(6) The Deputy Commissioner of Taxes may at any time amend or revoke any notice issued under sub-section (2) or extend the time for making any payment in pursuance of such notice.
(7) In any area with respect to which the Commissioner has directed that any arrears may be recovered by any process enforceable for the recovery of an arrear of any municipal tax or local rate imposed under any enactment for the time being in force in any part of Bangladesh, the Deputy Commissioner of Taxes may proceed to recover the amount due by such process.
(8) The Commissioner may direct by what authority any powers or duties incident under any such enactment as aforesaid to the enforcement of any process for the recovery of a municipal tax or local rate shall be exercised or performed when that process is employed under sub-section (7).
Explanation.-For the removal of doubts it is hereby clarified that the several modes of recovery specified in this Chapter are neither mutually exclusive nor affect in any way any other law for the time being in force relating to the recovery of debts due to Government, and it shall be lawful for the Deputy Commissioner of Taxes, if for any special reasons to be recorded by him, to have recourse to any such mode of recovery notwithstanding that the tax due is being recovered from an assessee by any other mode.
Chapter XVII
DOUBLE TAXATION RELIEF
Chapter XVIII
REFUNDS
Chapter XVIIIA
[SETTLEMENT OF CASES.- Omitted]
839Chapter XVIIIB
Alternative Dispute Resolution
152I.(1) Notwithstanding anything contained in Chapter XIX an assessee, if aggrieved by an order of an income tax authority, may apply for resolution of the dispute through the ADR process.
(2) An assessee may apply for ADR of a dispute which is pending before any incometax authority, tribunal or court 841[;]
842[Provided that where any dispute has already been filed in the form of Writ petition shall not be a subject of ADR.]
(3) All cases dealt with under sub-section (2) are subject to permission of the concerned income tax authority 843[, tribunal] or the court, as the case may be:
Provided that after obtaining such permission from the income tax authority, Tribunal or the court and upon granting of such permission, the matter shall remain stayed during the ADR negotiation process.
(4) The application shall be submitted in such form, within such time, accompanied with such fees and verified in such manner as may be prescribed.
(5) The application is to be submitted to the respective Appellate Joint Commissioner of Taxes or Appellate Additional Commissioner of Taxes or Commissioner of Taxes (Appeals) or Taxes Appellate Tribunal, as the case may be.
844[(5A) The application may also be filed in such electronic, computer readable or machine readable form and in such manner as may be specified by the Board by order in writing.]
(6) In the case of a dispute pending before either Division of the Supreme Court, the assessee shall obtain the permission of the court prior to filing an application under sub-section (2), by filing an application before the court which, upon such an application being made before it, may pass an order allowing the matter to proceed to ADR, or otherwise as it deems fit.
152O. (1) A dispute, which is subject to this Ordinance, may be resolved by an Agreement either wholly or in part where both the parties of the dispute accept the points for determination of the facts or laws applicable in the dispute.
(2) Where an agreement is reached, either wholly or in part, between the assessee and the Commissioner's Representative, the Facilitator shall record, in writing, the details of the agreement in the manner as may be prescribed.
(3) The recording of every such agreement shall describe the terms of the agreement including any tax payable or refundable and any other necessary and appropriate matter, and the manner in which any sums due under the agreement shall be paid and such other matters as the Facilitator may think fit to make the agreement effective.
(4) The agreement shall be void if it is subsequently found that it has been concluded by fraud or misrepresentation of facts.
(5) The agreement shall be signed by the assessee and the Commissioner's Representative and the facilitator.
(6) Where no agreement, whether wholly or in part, is reached or the dispute resolution is ended in disagreement between the applicantassessee and the concerned Commissioner's Representative for noncooperation of either of the parties, the Facilitator shall communicate it, in writing recording reasons thereof, within fifteen days from the date of disagreement, to the applicant and the Board, the concerned court, Tribunal, appellate authority and income tax authority, as the case may be, about such unsuccessful dispute resolution.
(7) Where the agreement is reached, recorded and signed accordingly containing time and mode of payment of payable dues or refund, as the case may be, the Facilitator shall communicate the same to the assessee and the concerned Deputy Commissioner of Taxes for compliance with the agreement as per provisions of this Ordinance.
(8) No agreement shall be deemed have been reached if the Facilitator fails to make an agreement within 848[three months] from the end of the month in which the application is filed.
(9) Where there is a successful agreement, the Facilitator shall communicate the copy of the agreement to all the parties mentioned in sub-section (6) within fifteen days from the date on which the Facilitator and the parties have signed the agreement.
Chapter XIX
APPEAL AND REFERENCE
(i) Where the return of income was filed | if tax under section 74 has not been paid |
(ii) Where no return of income was filed | if at least ten per cent of the tax as determined by the Deputy Commissioner of Taxes has not been paid: |
158. (1) An assessee may appeal to the Appellate Tribunal if he is aggrieved by an order of-
(a) an Appellate Joint Commissioner 873[or the Commissioner (Appeals), as the case may be,] under section 128 or 156;
874[* * *]
875[(2) No appeal under sub-section (1) shall lie against an order of the Appellate Joint Commissioner or the Commissioner (Appeals), as the case may be, unless the assessee has paid 876[ten percent] of the amount representing the difference between the tax as determined on the basis of the order of the Appellate Joint Commissioner or the Commissioner (Appeals), as the case may be, and the tax payable under section 877[:
Provided that on an application made in this behalf by the assessee, the Commissioner of Taxes, may reduce, the requirement of such payment if the grounds of such application appears reasonable to him 878[and shall pass such or derin this regardas he thinks fit within thirty days from date of the receipt of such application].]
879[(2A) The Deputy Commissioner of Taxes may, 880[with the prior approval of the Commissioner of Taxes], prefer an appeal to the Appellate Tribunal against the order of an Appellate Joint Commissioner, or the Commissioner (Appeals) under section 156.]
(3) [Omitted by section 63 of অর্থ আইন, ২০০২ (২০০২ সনের ১৪ নং আইন)].
881[(4) Every appeal under 882[sub-section (1) or sub-section (2A)] 883[* * *] shall be filed within sixty days of the date on which the order sought to be appealed against is communicated to the assessee or to the commissioner, as the case may be:
Provided that the Appellate Tribunal may admit an appeal after the expiry of sixty days if it is satisfied that there was sufficient cause for not presenting the appeal within that period.]
(5) An appeal to the Appellate Tribunal shall be in such form and verified in such manner as may be prescribed 884[and shall, except in the case of an appeal under sub-section (2A)] 885[* * *] be accompanied by a fee of 886[one thousand] taka.
887[(6) The Board may, by notification in the official Gazette,-
(a) specify 888[the cases in which the appeal] shall be filed electronically or in any other machine readable or computer readable media;
(b) specify the form and manner in which such appeal shall be filed.]
Chapter XX
PROTECTION OF INFORMATION
Chapter XXI
OFFENCES AND PROSECUTION
165. A person is guilty of an offence punishable with imprisonment for a term which may extend to three years, 921[but shall not be less than three months] or with fine, or with both, if he-
(a) makes a statement in any verification, etc. in any return or any other document furnished under any provisions of this Ordinance which is false 922[* * *];
(b) knowingly and wilfully aids, abets, assists, incites or includes another person to make or deliver a false return, account, statement, certificate or declaration under this Ordinance, or himself knowingly and wilfully makes or delivers such false return, account, statement, certificate or declaration on behalf of another person 923[;
(c) signs and issues any certificate mentioned in the 924[proviso of] section 82 which he either knows or believes to be false or does not believe to be true 925[;
(d) refuses to furnish such information as may be necessary for the purpose of survey under section 115.]]
929[165C. A person is guilty of an offence punishable with imprisonment for a term which may extend to three years, but shall not be less than three months, or with fine up to taka five lakh, or both, if he employs or allows to work any individual not being a Bangladeshi citizen without prior approval from 930[appropriate authority of the Government].]
Chapter XXII
MISCELLANEOUS
950[ 184A. (1) Notwithstanding anything contained in this Ordinance, a person shall be required to furnish a proof of submission of return in the cases mentioned in sub-section (3).
(2) The proof of submission of return shall be-
(a) an acknowledgment receipt of return prescribed by the Board; or
(b) a system generated certificate containing name and Taxpayer’s Identification Number (TIN) of the person and the year for which return has been submitted; or
(c) a certificate issued by the Deputy Commissioner of Taxes containing name and TIN of the person and the year for which return has been submitted.
(3) The proof of submission of return shall be furnished in the cases of –
(i) applying for a loan exceeding Taka five lakh from a bank or a financial institution;
(ii) becoming a director or a sponsor shareholder of a company;
(iii) obtaining or continuing an import registration certificate or export registration certificate;
(iv) obtaining or renewal of a trade license in the area of a city corporation or paurashava;
(v) obtaining registration of co-operative society;
(vi) obtaining or renewal of license or enlistment as a surveyor of general insurance;
(vii) obtaining registration, by a resident, of the deed of transfer, baynanama or power of attorney or selling of a land, building or an apartment situated within a city corporation or a paurashava of a district headquarter or cantonment board, where the deed value exceeds Taka ten lakh;
(viii) obtaining or maintaining a credit card;
(ix) obtaining or continuing the membership of the professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or any other similar profession;
(x) obtaining and retaining a license as a Nikah Registrar under the Muslim Marriages and Divorces (Registration) Act. 1974 (LII of 1974);
(xi) obtaining or continuing the membership of any trade or professional body;
(xii) obtaining or renewal of a drug license, a fire license, environment clearance certificate, BSTI licenses and clearance;
(xiii) obtaining or continuing commercial and industrial connection of gas in any area and obtaining or continuing residential connection of gas in city corporation area;
(xiv) obtaining or continuing a survey certificate of any water vessel including launch, steamer, fishing trawler, cargo, coaster and dumb barge etc., plying for hire;
(xv) obtaining the permission or the renewal of permission for the manufacture of bricks by Deputy Commissioner's office in a district or Directorate of Environment, as the case may be;
(xvi) obtaining the admission of a child or a dependent in an English medium school providing education under international curriculum or english version of national curriculum, situated in any city corporation, district headquarter or paurashava;
(xvii) obtaining or continuing the connection of electricity in a city corporation or cantonment board;
(xviii) obtaining or continuing the agency or the distributorship of a company;
(xix)obtaining or continuing a license for arms;
(xx) opening a letter of credit for the purpose of import;
(xxi) opening postal savings accounts of Taka exceeding five lakhs;
(xxii) opening and continuing bank accounts of any sorts with credit balance exceeding Taka ten lakhs;
(xxiii) purchasing savings instruments (Sanchayapatra) of Taka exceeding five lakhs;
(xxiv) participating in any election in upazilla, paurashava, zilla parishad, city corporation or Jatiya Sangsad;
(xxv) participating in a shared economic activities by providing motor vehicle, space, accommodation or any other assets.
(xxvi) receiving any payment which is an income of the payee classifiable under the head "Salaries" by any person employed in the management or administrative function or in any supervisory position in the production function;
(xxvii) receiving any payment which is an income of the payee classifiable under the head "Salaries" by an employee of the government or an authority, corporation, body or units of the government formed by any law, order or instrument being in force, if the employee, at any time in the income year, draws a basic salary of taka sixteen thousand or more;
(xxviii) receiving any commission, fee or other sum in relation to money transfer through mobile banking or other electronic means or in relation to the recharge of mobile phone account;
(xxix) receiving any payment by a resident from a company on account of any advisory or consultancy service, catering service, event management service, supply of manpower or providing security service;
(xxx) receiving any amount from the Government under the Monthly Payment Order (MPO) if the amount of payment exceeds taka sixteen thousand per month;
(xxxi) registration or renewal of agency certificate of an insurance company;
(xxxii) registration, change of ownership or renewal of fitness of a motor vehicle of any types excluding two and three wheeler;
(xxxiii) releasing overseas grants to a non-government organisation registered with NGO Affairs Bureau or to a Micro Credit Organisation having licence with Micro Credit Regulatory Authority;
(xxxiv) selling of any goods or services by any digital platforms to consumers in Bangladesh.
(xxxv) submitting application for the membership of a club registered under কোম্পানি আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন) and Societies Registration Act, 1860 (Act No. XXI of 1860);
(xxxvi) submitting tender documents by a resident for the purpose of supply of goods, execution of a contract or rendering a service;
(xxxvii) submitting a bill of entry for import into or export from Bangladesh;
(xxxviii) submitting plan for construction of building for the purpose of obtaining approval from Rajdhani Unnayan Kartripakkha (Rajuk), Chittagong Development Authority (CDA), Khulna Development Authority (KDA) and Rajshahi Development Authority (RDA) or other concerned authority in any city corporation or paurashava;
(4) The Board may, by a general or special order, exempt any person from furnishing proof of submission of return.
(5) The person responsible for processing any application or nomination, or approving any license, certificate, membership, permission, admission, agency or distributorship, sanctioning any loan, issuing any credit card, allowing connection or operation, executing registration or making any payment shall not so process, approve, sanction, issue, allow, execute or make payment, as the case may be, unless the proof of submission of return is furnished as required under the provision of sub-section (1) or the person who is required to furnish the proof of submission of return provides a certificate from the Board that he is exempted from furnishing such proof.
(6) The person to whom the proof of submission of return is furnished shall verify the authenticity of it in the manner as may be specified by the Board.
(7) Where the person responsible for processing any application or nomination, or approving any license, certificate, membership, permission, admission, agency or distributorship, sanctioning any loan, issuing any credit card, allowing connection or operation, executing registration or making any payment, as the case may be, fails to comply with sub-sections (5) and (6), shall be deemed to be an assessee in default and be liable to pay a penalty not exceeding Taka ten lakh as imposed by the Deputy Commissioner of Taxes.
(8) No penalty under this section shall be imposed upon a person without giving a reasonable opportunity of being heard.
(9) A person not being an individual shall, instead of furnishing a proof of submission of return, furnish a system generated certificate containing name and Taxpayer’s Identification Number (TIN)–
(a) in the year of incorporation, registration or formation, as the case may be, under any law or instruments having the force of law; and
(b) in the year following the year of incorporation, registration or formation, as the case may be, under any law or instruments having the force of law.]
954[184B.955[(1) Every assessee or any person who applies manually or electronically for a Taxpayer’s Identification Number will be issued a certificate containing twelve-digit Taxpayer’s Identification Number and such other particulars in such manner as may be prescribed:
Provided that twelve-digit Tax-payer’s Identification Number may be issued without any application where any income tax authority has found a person having taxable income during the year and possesses such necessary information of that person for issuance of twelve-digit Tax-payer’s Identification Number.]
(2) Board may, by general or special order in writing, direct any person or classes of persons who already hold a Tax-payer's Identification Number to furnish such information or documents for the purpose of re-registration and thereafter issue 956[twelve-digit] a new Taxpayer's Identification Number.]
957[(3) Every existing assessee having ten-digit Tax-payer’s Identification Number or a Temporary Registration Number (TRN) shall have to obtain twelve-digit Tax-payer’s Identification Number (TIN) before the last date of submission of return of income as required under section 75.]
958[184BB. Every person required to deduct or collect tax under Chapter VII of this Ordinance shall be given a tax collection account number in such manner as may be prescribed.]
961[184BBBB. Temporary Registration Number (TRN) may be given to a person who has been found having taxable income in any year and has failed to apply for Tax-payer's Identification Number (TIN) under section 184B.]
962[Explanation.- For the removal of doubts, it is hereby declared that nothing in this Ordinance shall limit the authority of the Deputy Commissioner of Taxes in imposing the liability to pay any sum under this Ordinance on a person who has been given a Temporary Registration Number (TRN) for the reason that the person has failed to apply for the Tax-payer's Identification Number (TIN).]
963[184C. (1) An assessee having income from business or profession shall submit his return of income as required in section 75 and display the proof of submission of return as defined in section 184A at a conspicuous place of such assessee's business premises.
(2) Where an assessee fails to comply with the provision of sub-section (1), he shall be liable to pay a penalty of Taka not less than five thousand and not exceeding twenty thousand as imposed by the Deputy Commissioner of Taxes empowered to this end.]
964[184CC. Notwithstanding anything contained in any other law for the time being in force where any document relating to the transfer of land, building or apartment situated within a city corporation, or cantonment board, or a paurashava of a district headquarters, deed value of which exceeds taka one lakh and required to be registered under the Registration Act, 1908 (XVI of 1908), such document shall contain twelve-digit Taxpayer’s Identification Number of both the seller and the purchaser.]
966[184D.- (1) Notwithstanding anything contained in this Ordinance or any other law for the time being in force, the Board may, in such manner and in such circumstances and to such extent as may be prescribed, grant reward to the following persons :-
(a) an officer or employee of the Board and its subordinate tax offices for outstanding performance 967[, collection] of taxes and detection of tax evasion;
(b) any other person for furnishing information leading to detection of tax evasion.
(2) The Board may, in addition to the reward mentioned in sub-section (1), grant reward to officers and employees of the Board and its subordinate tax offices for a financial year for collecting of revenue in excess of the revenue target as may be prescribed.]
968[184E.- All officers and staff of government and semi-government organizations, law enforcement agencies, autonomous bodies, statutory bodies, financial institutions, educational institutions, private organizations, local government and non-government organizations shall assist the income tax authorities in the discharge of their functions under this Ordinance.]
969[184F. Notwithstanding anything contained in any other law for the time being in force, the provisions of this Ordinance or any proceedings thereunder shall prevail over any other law in respect of 970[the imposition and the collection of tax, the exemption of any income from tax, the reduction of the rate of tax, the calling for any information for the purpose of taxation, and the protection of information under this Ordinance].]
971[184G. (1) Notwithstanding anything contained contrary to any provision of this Ordinance, the Board may, with prior approval of the Government, by an order, and in public interest,—
(a) condone the period of epidemic, pandemic, or any other acts of God, and war in computing the time limits specified in any provision of this Ordinance; or
(b) extend the time limits specified in any provision of his Ordinance to such extent as the Board may think fit, due to such epidemic, pandemic, or any other acts of God, and war.
(2) The order under sub-section (1) may be issued with retrospective effect.]
Chapter XXIII
RULES AND REPEAL
185. (1) The Board may, by notification in the Official Gazette, make rules for carrying out the purposes of this Ordinance; and any such rules may, in so far as they do not impose, or have the effect of imposing, any criminal liability, be given retrospective effect.
(2) In particular, and without prejudice to the generality of foregoing power, such rules may provide for all or any of the following matters, namely:-
(a) the ascertainment and determination of the classification of any income in respect of which the provisions of this Ordinance are not clear;
(b) the manner 972[, extentand scope] in which, and the procedure by which, the income and the tax payable thereon shall be determined in the case of-
(i) non-residents, and
(ii) income derived in part from agriculture and in part from business;
(c) the ascertainment and determination of any income or class of income to be included in the total income of an assessee;
(d) the determination of the value of any perquisites and benefits and of the allowances permissible under this Ordinance in respect of any head of income or total income;
(e) the procedure for the grant of exemption of income of industrial undertakings or tourist industries and any other matter connected with or incidental thereto;
(f) the manner in which, and the procedure by which, self-assessment may be made;
(g) the procedure for, and any other matter connected with or incidental to, the issue of exemption certificate or tax clearance certificate under section 107;
(h) the procedure to be followed on application for refund;
(i) registration of income tax practitioners, qualifications for registration conditions and limitations subject to which income-tax practitioners may act as authorised representative under this Ordinance, cancellation of registration or other disciplinary measures in respect of income tax practitioners;
(j) fees and other charges to be paid in respect of any services rendered or in respect of any matter for which fees and charges are payable under this Ordinance; and
(k) any other matter which is to be provided for by rules, or which is to be or may be prescribed under this Ordinance.
(3) In cases coming under sub-section (2)(b), the rules may prescribe methods by which an estimate of such income may be made, and prescribe the proportion which shall be deemed to be income classifiable under the head “Agricultural income” or “income from business or profession”, and an assessment based on such estimate or proportion, as the case may be, shall be deemed to be duly made in accordance with the provisions of this Ordinance.
(4) The power to make rules under this section shall, except on the first occasion of the exercise thereof, be subject to the condition of previous publication 973[:
Provided that where previous publication of the draft of any proposed rules or of any amendment to any existing rules is made pursuant to the provisions of this sub-section, giving therewith a notice soliciting objections and suggestions to such draft within the period specified in the notice and if no objection or suggestion is received within the period specified, the previous publication of such draft shall be deemed to be the final publication of the proposed rules or amendment, as the case may be.]
