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18/07/2024
Laws of Bangladesh

The Finance Ordinance, 1984

( Ordinance NO. XLII OF 1984 )

Income tax
12. (1) Subject to the provisions of sub-sections (2), (3), (4) and (5) in making any assessment for the year beginning on the first day of July, 1984, income tax shall be charged at the rates as specified in the Third Schedule.
 
 
(2) In making any assessment for the year beginning on the first day of July, 1984,-
 
 
(a) where the total income of an assessee, not being a company, includes any income chargeable under the head “Salaries” or any income chargeable under the head “Interest on securities”, the income tax payable by the assessee on that part of his total income which consists of such inclusion shall be an amount bearing to the total amount of income tax payable according to the rates applicable under the operation of the Finance Ordinance, 1983 (XXVII of 1983), on his total income, the same proportion as the amount of such inclusion bears to his total income; and
 
 
(b) where the total income of a company includes any profits and gains from Life Insurance business, the income tax payable by the company shall be reduced by an amount equal to 12.5 per cent of that part of its total income which consists of such inclusion.
 
 
(3) In making any assessment for the year beginning on the first day of July, 1984, where the assessee is a co-operative society, the tax shall be payable at the rate specified in paragraph A or B (i) (d) of the Third Schedule, whichever treatment is more beneficial to the assessee:
 
 
Provided that in calculating for the purpose of this sub-section, the amount of income tax at the rates specified in paragraph A of the Third Schedule, no deduction in respect of any allowance or sums referred to in the proviso to the said paragraph shall be made.
 
 
(4) (a) In making any assessment for the year beginning on the first day of July, 1984, where the total income of an assessee other than a company not registered in Bangladesh, includes any profits and gains derived from the export of goods out of Bangladesh, income tax payable by him in respect of such profits and gains shall, subject to the provisions of clauses (b) and (c), be reduced by an amount computed in the manner specified hereunder:-
 
 
Amount.
 
 
(i) Where the goods exported abroad had not been manufactured by the assessee who exported them: 30 per cent of the income tax attributable to export sales.
 
 
(a) and where the export sales during the relevant year exceed the export sales of the preceding year; plus and additional 1 per cent for every increase of 10 per cent in export sales over those of the preceding year subject to an overall maximum of 40 per cent.
 
 
(b) and where the export sales during the relevant year do not exceed the export sales of the preceding year; minus 1 per cent for every decrease of 10 per cent in export sales from those of the preceding year subject to an overall minimum of 20 per cent.
 
 
(ii) Where the goods exported had been manufactured by the assessee who had exported them:
 
 
(a) where the export sales do not exceed 10 per cent of the total sales: Nil.
 
 
(b) where the export sales exceed 10 per cent but do not exceed 20 per cent of the total sales: 30 per cent of the income tax attributable to export sales.
 
 
(c) where the export sales exceed 20 per cent but do not exceed 30 per cent, of the total sales: 40 per cent of the Income tax attributable to export sales.
 
 
(d) where the export sales exceed 30 per cent but do not exceed 40 per cent of the total sales: 50 per cent of the income tax attributable to export sales.
 
 
(e) where the export sales exceed 40 per cent of the total sales: 60 per cent of the income tax attributable to export sales:
 
 
gency against its procurement programme in foreign exchange
 
 
(b) Nothing contained in clause (a) shall apply in respect of the following goods or classes of goods, namely:-
 
 
(i) tea;
 
 
(ii) raw jute;
 
 
(iii) Jute manufactures;
 
 
(iv) raw hides and skin and wet-blue leather;
 
 
(v) such other goods as may be notified by the National Board of Revenue from time to time.
 
 
(c) The National Board of Revenue may make rules providing for the computation of profits and the tax attributable to export sales and for such other matters as may be necessary to give effect to the provisions of this sub-section.
 
 
(5) In cases to which the Second Schedule of the Income Tax Ordinance, 1984 (XXXVI of 1984), applies the tax chargeable shall be determined as provided in that Schedule but with reference to the rates imposed by sub-section (1), and in accordance where applicable, with the provisions of sub-section (2).
 
 
(6) For the purpose of making deduction of tax under Chapter VII of the Income Tax Ordinance, 1984 (XXXVI of 1984), the rates specified in the Third Schedule shall apply as respects the year beginning on the first day of July, 1984, and ending on the thirtieth day of June, 1985.
 
 
(7) For the purposes of this section and of the rates of tax imposed thereby, the expression “total income” means total income as determined for the purpose of income tax in accordance with the provisions of the Income Tax Ordinance, 1984 (XXXVI of 1984).

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