[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

[Published in the Bangladesh Gazette, Extraordinary, dated the 4th June, 1984.]

GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH

MINISTRY OF LAW AND JUSTICE
Dhaka, the 4th June, 1984

NOTIFICATION

No. 511-Pub.-The following Ordinance made by the President of the People's Republic of
Bangladesh, on the 3rd June, 1984, is hereby published for general information :-

THE INCOME TAX ORDINANCE, 1984

Ordinance No. XXXVI of 1984

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 :-

asadtax@gmail.com Page 1
 CHAPTERI
PRELIMINARY

1. Short title and commencement. –

(1) This Ordinance may be called the Income Tax Ordinance, 1984.
(2) It shall come into force on the first day of July, 1984.

2. Definitions.-
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
(c) the shareholders holding not less than nine-tenths 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;
(3) "annual value" shall be deemed to be -
(a) in relation to any property let out, -
(i) the sum for which property might reasonably be expected to let
from year to year 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;
(b) [deleted]
(4) "Appellate Joint Commissioner" means a person appointed to be an
Appellate Joint Commissioner of Taxes under section 3 and includes an
Appellate Additional Commissioner of Taxes 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;
(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 or a pension fund" means a superannuation
fund 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;
(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 12 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 or ক@োম্পোনি আইি, ১৯৯৪ 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 ব্োাং@ ক@োম্পোনি আইি, ১৯৯১ and
includes a body corporate established or constituted by or under any law for
the time being in force which transacts the business of banking in
Bangladesh;
(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; 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) ―charitable purpose‖ includes-
(a) relief of the poor, education and medical relief; and
(b) the advancement of any other object of general public utility, subject to
the following conditions-
 (i) it does not involve carrying out any activities in the nature of
trade, commerce or business; or
(ii) where it involves any service rendered for a consideration, the
aggregate value of such consideration in the income year does not
exceed twenty lakh taka;
(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) "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);
(19A) "Commissioner (Appeals) means a person appointed to be a Commissioner
of Taxes (Appeals) under section 3 and includes a person appointed to hold
current charge of a Commissioner of Taxes (Appeals);
(20) "Company" means a company as defined in the Companies Act, 1913 or
ক@োম্পোনিআইি, ১৯৯৪ and includes-
(a) a body corporate established or constituted by or under any law for
the time being in force;
(b) any nationalized banking or other financial institution, insurance
body and industrial or business enterprise;
(bb) an association or combination of persons, called by whatever name,
if any of such persons is a company as defined in the Companies
Act, 1913 or ক@োম্পোনি আইি, ১৯৯৪;

(bbb) any association or body incorporated by or under the laws of a

country outside Bangladesh; and;
(c) any foreign association or body, 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 সমবোয়
সনমনি আইি, ২০০১ (Co-operative Societies Act, 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;
(23) "Deputy Commissioner of Taxes" means a person appointed to be a Deputy
 Commissioner of Taxes under section 3, 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 the Companies Act, 1913 or ক@োম্পোনি আইি, ১৯৯৪;
(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);
(25A) "Director General (Training)" means a person appointed to be Director
General(Training);
(25AA) "Director General, Central Intelligence Cell" means a person appointed to be
Director General, Central Intelligence Cell or any Director, Central
Intelligence Cell or any Joint Director, Central Intelligence Cell or Deputy
Director, Central Intelligence Cell or Assistant Director, Central Intelligence
Cell authorized by him;
(26) ―dividend‖ includes-
(a) any distribution by a company of accumulated profits, whether
capitalized 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 capitalized 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 capitalized 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
capitalized or not;
(dd) any profit remitted outside Bangladesh by a company not
incorporated in Bangladesh under ক@োম্পোনি আইি, ১৯৯৪;
(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;
(iiia) any bonus share issued by a company;
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, 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;
Provided that the Deputy Commissioner of Taxes may allow a
different financial year for a company which is a 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.
(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;
(29) "Extra Assistant Commissioner of Taxes" means a person appointed to be an
Extra Assistant Commissioner of Taxes under section 3 and includes a
person appointed to hold current charge of an Extra Assistant Commissioner
of Taxes;
(30) "fair market value" means, in relation to capital asset or a business or
undertaking-
(a) the price which such assetor a 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 realized 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".
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;
(31A) "financial institution" has the same meaning as assigned to it in
আনথ@িপ্রনিষ্ঠোি আইি, ১৯৯৩ (Financial Institution Act, 1993);

(32) "firm" has the same meaning as assigned to it in the Partnership Act, 1932;
(33) "foreign company" means a company which is not a Bangladeshi company;
(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;
(35) ―income year‖ means financial year immediately preceding the assessment
year and inludes-
(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
unincorporated 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 or any subsidiary
thereof the period of 12 months commencing from the first day of
January of the relevant year; or
(g) in any other case the period of 12 months commencing from the first
day of July of the relevant year;
(36) "Inspecting Joint Commissioner" means a person appointed to be an
Inspecting Joint Commissioner of Taxes under section 3, and includes an
Inspecting Additional Commissioner of Taxes and also a person appointed to
hold current charge of an Inspecting Joint Commissioner of Taxes;
(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 utilized;
(39) "legal representative" has the same meaning as assigned to it in section 2(11)
of the Code of Civil Procedure, 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, the 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 regard 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, 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;
(44A) ―permanent establishment‖, in relation to income frombusiness or
profession, means a place or activity throughwhich the business or
profession of a person is wholly orpartly 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 ofexploration,
exploitation or extraction of naturalresources;
(ix) a farm or plantation;
(x) a building site, a construction, assembly orinstallation project or
supervisory activities inconnection therewith;
(xi) the furnishing of services, including consultancyservices, by a person
through employees or otherpersonnel engaged by the person for such
purpose, ifactivities of that nature continue (for the same or
aconnected project) in Bangladesh; and
(xii) any associated entity or person (hereinafter referredto as ―Person
A‖) that is commercially dependent ona non-resident person where
the associated entity orPerson A carries out any activity in
Bangladesh inconnection with any sale made in Bangladesh by
thenon-resident person;
(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, arrear salary, advance salary, leave encashment and over time,
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 recognized provident fund, approved pension fund,
approved gratuity fund and approved superannuation fund;
(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 asপ্রনিবন্ধী ব্নি
(person with disability) under section 31 ofপ্রনিবন্ধী ব্নির অনি@োর ও সুরক্ষো আইি,
২০১৩;

(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, 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,
1860;
(52) "recognized provident fund" means a provident fund which has been, and
continues to be, recognized by the Commissioner in accordance with the
provisions of Part B of the First Schedule;
(53) [deleted]
(54) "relative", in relation to an individual, means the husband, wife, brother,
sister or any lineal ascendant or descendant of that individual;
(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, 182 days or
more in that year; or
(ii) for a period of, or periods amounting in all to, 90 days or more in
that year having previously been in Bangladesh for a period of, or
periods amounting in all to, 365 days or more during 4 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 in
Bangladesh in that year;
(c) a Bangladeshi company or any other company the control and
management of whose affairs is situated wholly in Bangladesh in that
year;
 (d) a trust, a fund or an entity, the control and management ofwhose 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 license in
respect of a patent, invention, model, design, secret process or formula,
or trade 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 license, in
respect of any copyright, literary, 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;
Explanation 1.-For the purpose of royalty in respect of anyright, property or
information, it is not necessary that-
(i) the possession or control of such right, property orinformation is with
the payer;
(ii) such right, property or information is used directly by thepayer;
(iii) the location of such right, property or information is inBangladesh.
Explanation 2.-For the removal of doubts, it is hereby clarifiedthat the
expression ―process‖ includes transmission by satellite(including up-linking,
amplification, conversion for downlinkingof any signal), cable, optical fibre
or by any other similartechnology, whether or not such process is secret;
(57) "rules" means rules made under this Ordinance;
(58) "salary" includes -
(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;
(e) any leave encashment;
(59) "scheduled bank" has the same meaning as in the Bangladesh Bank Order,
1972 (PO No. 127 of 1972);
(59A) [deleted]
(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 share
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;
(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;
(62A) ―Tax Day‖ means-
(i) in the case of an assessee other than a company, the thirtieth day of
October 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 or the fifteenth day of
September following the end of the income year where the said
fifteenth day falls before the fifteenth day of September;
(iii) the next working day following the Tax Day if the day mentioned in
sub-clauses (i) and (ii) is a public holiday;‖
(62B) ―taxed dividend‖ means the dividend income on which tax has been paid by
 the recipient under this Ordinance;
(63) [deleted]
(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;
(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) "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-
(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;
(67) [deleted]
(68) "written down value" means the written down value as defined in the Third
Schedule;
(69) "year" means a financial year.
 CHAPTER II
ADMINISTRATION

3. Income-tax authorities.-
There shall be the following classes of income tax authorities for the purposes of this
Ordinance, namely:-
(1) The National Board of Revenue,
(1A) [deleted]
(1B) Chief Commissioner of Taxes,
(2) Directors-General of Inspection (Taxes),
(2A) Commissioner of Taxes (Appeals),
(2B) Commissioner of Taxes (Large Taxpayer Unit),
(2C) Director General (Training),
(2D) Director General, Central Intelligence Cell,
(3) Commissioners of Taxes,
(3A) Additional Commissioners of Taxes who may be either Appellate Additional
Commissioner of Taxes or Inspecting Additional Commissioner of Taxes,
(4) Joint Commissioner of Taxes who may be either Appellate Joint Commissioners
of taxes or Inspecting Joint Commissioner of Taxes,
(5) Deputy Commissioners of Taxes,
(6) Tax Recovery Officers nominated by the Commissioner of Taxes among the
Deputy Commissioner of Taxes within his jurisdiction,
(7) Assistant Commissioners of Taxes,
(8) Extra Assistant Commissioners of Taxes, and
(9) Inspectors of Taxes.

4. Appointment of income tax authorities.-

(1) Subject to the rules and orders of the Government regulating the terms and
conditions of service of persons in public services and posts, appointment of
income tax authorities shall be made in accordance with the provisions of this
Ordinance.
(2) The Board may appoint Chief Commissioner of Taxes, Director General, Central
Intelligence Cell, as many Directors-General of Inspection, Commissioners
(Appeals), Commissioners, Joint Commissioners of Taxes, Deputy
Commissioners of Taxes, Tax Recovery Officers and Assistant Commissioners
 of Taxes and such other executive or ministerial officers and staff as it may think
fit.
(2A) Notwithstanding anything contained in this Ordinance, the Board may, with the
approval of the government, appoint one or more person having appropriate
professional skill and experience to perform such function as may be specified
by an order issued in this behalf, and the person or persons so appointed shall be
deemed to be an income-tax authority for the purposes of this Ordinance.
(3) Subject to such orders or instructions as the Board may, from time to time, issue
in this behalf, any other income tax authority may appoint any income tax
authority subordinate thereto and such other executive or ministerial officers and
staff as may be necessary for assistance in the execution or its functions.

4A. Delegation of powers.-

The Board may, by notification in the official Gazette, and subject to such limitations or
conditions, if any, as may be specified therein, empower by name or designation,-
(a) any Inspecting Additional Commissioner of Taxes to exercise the powers of a
Commissioner of Taxes;
(b) any Appellate Additional Commissioner of Taxes to exercise the powers of a
Commissioner of Taxes (Appeals); and
(c) any Additional Director General or Joint Director General of Central
Intelligence Cell to exercise the powers of Director General, Central Intelligence
Cell.

5. Subordination and control of income tax authorities.-

(1) The Chief Commissioner of Taxes, Director General of Inspection,
Commissioners (Appeals) and Commissioners shall be subordinate to the Board;
(2) The Additional Commissioners of Taxes, Joint Commissioners of Taxes, Deputy
Commissioners of Taxes and Inspectors shall be subordinate to the
Commissioners, or the Commissioners (Appeals), as the case may be, within
whose jurisdiction they are appointed to perform their function:
Provided that no order, direction or instruction shall be given so as to interfere
with the discretion of the Appellate Joint Commissioners or the Commissioners
(Appeals), in the exercise of their appellate functions.
(3) The Deputy Commissioners of Taxes and Inspectors shall be subordinate to the
Inspecting Joint Commissioner within whose jurisdiction they perform their
functions.
(4) The Inspectors shall be subordinate to the Deputy Commissioners of Taxes
within whose jurisdiction they perform their functions.
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

6. Jurisdiction of income tax authorities.-

(1) Subject to the provisions of this Ordinance,-
(a) [deleted]
(aa) the Director-General of Inspection shall perform the following functions,
namely:-
(i) carry out inspection of income tax cases;
(ii) investigate or cause investigation to be carried out in respect of
cases involving leakage of revenue or evasion of taxes;
(iii) carry out audit of cases of offices involving income tax revenues
only;
(iv) furnish annual report about the working of income tax offices
dealing with revenue matters to the Board by the thirty first day of
December following the end of the financial year to which it
relates; and
(v) such other functions as may be assigned to them by the Board;
(aaa) the Director General of Central Intelligence Cell shall perform the
following functions, namely:-
(i) carry out intelligence works to gather information about taxpayers;
(ii) analyze information gathered through intelligence work vis-a-vis
concerned income tax records;
(iii) detect tax evasions, concealments of income and offences as
described in chapter XXI of Income Tax Ordinance, 1984;
(iv) carry out investigations to prove tax evasion or concealment or any
other irregularities relating to taxes and to collect evidences in
support of tax offences or tax frauds for recovery of tax with
penalty and to suggest prosecutions in fit cases;
(v) carry out functions as authorized by any other law.
(b) the Commissioners, the Commissioner (Appeals) and the Appellate Joint
Commissioners shall perform their functions in respect of such areas, or
such persons or classes of persons, or such cases or classes of cases, or
such incomes or classes of incomes, as the Board may assign to them;
(bb) the Commissioner (Large Taxpayer Unit) shall perform his functions in
respect of such areas, or such persons or classes of persons, or such cases
or classes of cases or such incomes or classes of incomes, as the Board
may assign to him;
(c) the Inspecting Joint Commissioners and the Deputy Commissioners of
Taxes shall perform their functions in respect of such areas, or such
persons or classes of persons, or such cases or classes of cases, or such

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[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

incomes or classes of incomes as the Commissioner to whom they are

subordinate may assign to them; and
(d) other income tax authorities shall perform such functions as may be
assigned to them by the income tax authority to whom they are
subordinate.
(2) (a) Any area or other jurisdiction or function assigned to an income tax
authority under sub-section (1) may be modified or varied, or may be
transferred to any other income tax authority with respect to areas,
persons or classes of persons, or cases or classes of cases, or proceeding
or classes of proceedings;
(b) any such transfer as is referred to in clause (a) may be made at any stage
of the proceedings and further proceedings may be commenced from the
stage at which such transfer takes place.
(3) Where more income tax authorities than one have been assigned the same
functions in respect of any area, or persons or classes of persons, or cases or
classes of cases, or incomes or classes of incomes, they shall perform those
functions in accordance with such allocation or distribution of work as the
authority assigning the functions may make.
(4) Where more income tax authorities than one have been assigned the same
functions in respect of any area, or persons or classes of persons, or cases or
classes of cases, or incomes or classes of incomes, they shall perform those
functions in accordance with such allocation or distribution of work as the
authority assigning the functions may make.
(5) Any person aggrieved by any order passed under this section may, within 30 days
of such order, make a representation -
(a) to the Inspecting Joint Commissioner if the order was passed by a Deputy
Commissioner of Taxes;
(b) to the Commissioner, the commissioners(Appeals), if the order was
passed by an Inspecting Joint Commissioner; and
(c) to the Board if the order was passed by a Commissioner;
and any order passed on such representation shall be final.

7. Exercise of jurisdiction by successor.-

Where, in respect of any proceeding under this Ordinance, an income tax authority is
succeeded by another, the income tax authority so succeeding may continue the
proceeding from the stage at which it was left by his predecessor.

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8. Officers, etc. to follow instructions of the Board.-
All officers and other persons engaged in the performance of any functions under this
Ordinance shall, in the matter of discharging those functions, observe and follow such
orders, directions or instructions as the Board may issue from time to time:
Provided that no order, direction or instruction shall be given so as to interfere with the
discretion of the Appellate Joint Commissioner or the Commissioner (Appeals) in the
exercise of their appellate functions.

9. Guidance to the Deputy Commissioner of Taxes, etc.-

In the course of any proceedings under this Ordinance, the Deputy Commissioner of
Taxes may be assisted, guided or instructed by any income tax authority to whom he is
subordinate or any other person authorized in this behalf by the Board.

10. Exercise of assessment functions by the Inspecting Joint Commissioners and the
Inspecting Additional Commissioners.-
The Commissioner may, with prior approval of the Board, by general or a special order
in writing, direct that in respect of all or any proceedings relating to specified cases or
classes of cases or specified persons or classes of persons within his jurisdiction, the
powers and functions of the Deputy commissioner of Taxes, the Inspecting Joint
Commissioner, the Inspecting Additional Commissioner and the Commissioner under
this Ordinance shall be exercised by the Inspecting Joint Commissioner, the Inspecting
Additional Commissioner, the Commissioner and the Board, respectively and for the
purpose of any proceedings in respect of such cases or persons reference in this
ordinance or the rules made thereunder to the Deputy Commissioner of Taxes, the
Inspecting Joint Commissioner, the Inspecting Additional Commissioner, or the
Commissioner shall be deemed to be references to the Inspecting Joint Commissioner,
the Inspecting Additional Commissioner, the Commissioner and the Board,
respectively.
 CHAPTER III
TAXES APPELLATE TRIBUNAL

11. Establishment of Appellate Tribunal.-

(1) For the purpose of exercising the functions of the Appellate Tribunal under this
ordinance, the Government shall establish a Taxes Appellate Tribunal consisting
of a President and such other members as the Government may, from time to time,
appoint.
(2) [deleted]
(3) A person shall not be appointed as a member of the Taxes Appellate Tribunal
unless -
(i) he was or is a member of the Board or holds the current charge of a
member of the Board; or
(ii) he was a Commissioner of Taxes; or
(iii) he is a Commissioner of Taxes having at least one year experience as a
Commissioner; or
(iv) he is a chartered accountant and practiced professionally for a period not
less than 8 years; or
(v) he is a cost and management accountant and practiced professionally for a
period not less than 8 years; or
(vi) he is an income tax practitioner within the meaning of section 174(2)(f)
and practiced professionally for not less than 20 years; or
(vii) he is a professional legislative expert having not less than 8 years
experience in the process of drafting and making financial and tax laws; or
(viii) he is an advocate and practiced professionally for not less than 10 years in
any income tax office; or
(xi) he is, was or has been a District Judge.
(4) The Government shall appoint one of the members of the Appellate Tribunal to be
the president thereof, who is a member of the Board or holds the current charge of
a member of the Board.
Explanation.-For the purpose of this section, period of practice as chartered accountant
shall include any period of practice as chartered accountant within the meaning of the
Chartered Accountants Ordinance, 1961 or Bangladesh Chartered Accountants Order,
1973 (P.O. No. 2 of 1973) or as registered accountant enrolled on the register of
accountants under the Auditor's Certificate Rules, 1950.

12. Exercise of power of the Tribunal by Benches.-

 (1) Unless the president in any particular case or class of cases otherwise directs, the
powers and functions of the Appellate Tribunal shall be exercised by Benches of
the Appellate Tribunal, hereinafter referred to as Bench, to be constituted by the
President.
(2) A Bench shall be so constituted that it has not less than two members.

13. Decision of Bench.-

(1) Subject to the provisions of sub-sections (2) and (3), the decision of bench in any
case or on any point shall be given in accordance with the opinion of the majority
of its members.
(2) Any point on which the members of a Bench are equally divided shall be stated in
writing and shall be referred by the president to one or more other members of the
Appellate Tribunal for hearing and the point shall be decided according to the
majority of the members of the Appellate Tribunal who have heard it including
those who first heard it.
(3) Where there are only two members of the Appellate Tribunal and they differ in
any case, the Government may appoint an additional member of the Appellate
Tribunal for the purpose of hearing the case; and the decision of the case shall be
given in accordance with the opinion of the majority of the members of the
Appellate Tribunal as constituted with such additional member.

14. Exercise of power by one member.-

Notwithstanding anything contained in section 12, the Government may direct that the
powers and functions of the Appellate Tribunal shall be exercised by any one of its
members, or by two or more members jointly or severally.

15. Regulation of Procedure.-

Subject to the provisions of this Ordinance, the Appellate Tribunal shall regulate its
own procedure and the procedure of its Benches in matters arising out of the discharge
of its functions including the places at which a Bench shall hold its sittings.
 CHAPTER IV
CHARGE OF INCOME TAX

16. Charge of income tax.-

(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.
(3) Notwithstanding anything contained in sub-section (1), income-tax shall be
charged at the rates specified in the Second Schedule in respect of -
(a) a non-resident person, not being a company;
(b) any income classifiable under the head "Capital gains"; and
(c) any income by way of "winnings" referred to in section 19 (13).

16A. Charge of surcharge.-

(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.

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 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 50% of the tax payable on his income or taka 5
lakh, whichever is higher in addition to tax payable under this Ordinance.
16BB. Charge of additional amount, etc.-
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. Charge of minimum tax.-

Where under the provisions of this Ordinance any minimum tax is to be charged, it
shall be charged, levied, paid and collected accordingly

16F. Charge of tax on stock dividend.-

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 or distributed or without
declaration or distribution of any cash divided by a company registered under ক@োম্পোনি
আইি, ১৯৯৪ 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. Charge of tax on retained earnings, reserves, surplus etc.-

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 ক@োম্পোনি আইি, ১৯৯৪ 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.

16H. Charge of tax on the difference of investment,import and export.-

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 theamount paid or received
for such import or export respectively,as shown in the statement, is found to be
different from theactual 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 may be.
17. Scope of the total income.-
(1) Subject to the provisions of this Ordinance, the total income of any income year
of any person includes-
(a) in relation to a person who is a resident, all income, from whatever source
derived, which-
(i) is received or deemed to be received in Bangladesh by or on behalf
of such person in such year; or
(ii) accrues or arises, or is deemed to accrue or arise to him in
Bangladesh during that year; or
(iii) accrues or arises to him outside Bangladesh during that year; and
(b) in relation to a person who is a non-resident, all income from whatever
source derived, which-
(i) is received or deemed to be received in Bangladesh by or on behalf
of such person in such year; or
(ii) accrues or arises, or is deemed to accrue or arise, to him in
Bangladesh during that year.
(2) Notwithstanding anything contained in sub-section (1), where any amount
consisting of either the whole or a part of any income of a person has been
included in his total income on the basis that it has accrued or arisen, or is
deemed to have accrued or arisen, to him in any year, it shall not be included
again in his total income on the ground that it is received or deemed to be
received by him in Bangladesh in another year.

18. Income deemed to accrue or arise in Bangladesh.-

The following income shall be deemed to accrue or arise in Bangladesh, namely:-
(1) any income which falls under the head "Salaries", wherever paid if-
(a) it is earned in Bangladesh; or
(b) it is paid by the Government or a local authority in Bangladesh to a citizen
of Bangladesh in the service of such Government or authority;
(2) any income accruing or arising, whether directly or indirectly, through or from-
(a) any permanent establishment in Bangladesh; or
(b) any property, asset, right or other source of income, including intangible
property, in Bangladesh; or
(c) the transfer of any assets situated in Bangladesh; or
(d) the sale of any goods or services by any electronic means to purchasers in
 Bangladesh; or
(e) any intangible property used in Bangladesh.
Explanation.- For the purpose of clause (2)-
(a) the shares of any company which is a resident in Bangladesh shall be
deemed to be property in Bangladesh;
(b) intangible property shall be deemed to be property in Bangladesh if it is-
(i) registered in Bangladesh; or
(ii) owned by a person that is not a resident of Bangladesh but has a
permanent establishment in Bangladesh to which the intangible
property is attributed;
(iii) the transfer of any share in a company that is not a resident of
Bangladesh shall be deemed to be the transfer of an asset situated in
Bangladesh to the extent that the value of the share transferred is
directly or indirectly attributable to the value of any assets in
Bangladesh;
(3) any dividend paid outside Bangladesh by a Bangladeshi company;
(4) any income by way of interest payable-
(a) by the Government; or
(b) by a person who is a resident, except where the interest is payable in
respect of any debt incurred, or moneys borrowed and used, for the
purposes of a business or profession carried on by such person outside
Bangladesh or for the purpose of making or earning any income from any
source outside Bangladesh; or
(c) by a person who is a non-resident where the interest is in respect of any
debt incurred, or moneys borrowed and used for the purposes of a business
or profession carried on by such person in Bangladesh or for the purposes
of making or earning any income from any source in Bangladesh;
(5) any income by way of fees for technical services payable-
(a) by the Government; or
(b) by a person who is a resident, except where such fees are payable in
respect of services utilised in a business or profession carried on by any
such person outside Bangladesh or for the purposes of making or earning
any income from any source outside Bangladesh; or
(c) by a person who is non-resident where such fees are payable in respect of
services utilised in a business or profession carried on by such person in
Bangladesh or for the purposes of making or earning any income from any
source in Bangladesh.
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

(6) any income by way of royalty payable-

(a) by the Government; or
(b) by a person who is a resident, except where the royalty is payable in
respect of any right, property or information used or services utilized for
the purposes of a business or profession carried on by such person outside
Bangladesh or for the purposes of making or earning any income from any
source outside Bangladesh; or
(c) by a person who is a non-resident where the royalty is payable in respect
of any right, property or information used or services utilized for the
purposes of a business or profession carried on by such person in
Bangladesh or for the purposes of making or earning any income from any
source in Bangladesh.

19. Un-explained investments, etc., deemed to be income.-

(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

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 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 course, 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 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, 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
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 licenses 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, 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":
Provided that the provisions of this sub-section shall not apply in case of a
loan or interest waived in respect of an Assessee by a commercial bank
including Bangladesh Krishi Bank, RajshahiKrishiUnnayan Bank,
Bangladesh Development Bank Ltd. or a leasing company or a financial
institution registered under আনথ@ি প্রনিষ্ঠোি আইি, ১৯৯৩:

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 underএক্সচেচেস নিনমউেয ্য়ো঱োইচেলি আইি, ২০১৩ 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,
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
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

from business or profession during that income year;

(aa) such amount on account of any interest which was to have been paid
to any commercial bank or the Bangladesh Development Bank 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 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 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 clause (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:
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 Assessee for that income

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 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.
(21) Where any sum is claimed or shown to have been received as loan, 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,
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 or converted into consideration for any goods or services in a
subsequent income year, the amount so repaid 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;
(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 of the
Assessee, and a banking channel or a formal channel is involved
in the process of such loan or gift.
Explanation.- In this sub-section, “bank transfer”, in relation to a loan or a
gift, means transfer from the account of the giver to the account of the
receiver, and such accounts are maintained in a bank or a financial
institution legally authorised to operate accounts.
(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 the 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.
(22A) Where an assessee, being the owner of a house property, received, 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
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

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.- In 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 the income of the Assessee for that income year, classifiable
under the head "Income from business or profession".
(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".
(25) [deleted]
(26) [deleted]
(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 10% of its
paid up capital together with reserve and accumulated profit, then 50% of the
amount that exceeds such 10% of the 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".
(28) [deleted]
(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, 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

asadtax@gmail.com Page 33
 "Income from house property‖.
(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, 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 assessee for that
income year classifiable under the head "Income from other sources.
Explanation.- For the purpose of this sub-section income that is subject to
tax exemption or a reduced tax rate does not include the exclusions from
totalincome as mentioned in PART A of THE SIXTH SCHEDULE.
(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.

19A. Special tax treatment in respect of investment in new business.- [deleted]

19AA. Special tax treatment in certain cases of investment.- [deleted]

19AAA. Special tax treatment in respect of investment in the purchase of stocks and shares.-
[deleted]

19AAAA. Special Tax Treatment in respect of investment in Securities.—

(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 invested in
securities by an individual assessee during the period between the first day of
July, 2020 and the thirtieth day of June, 2021 (both days inclusive) shall be
raised by any authority if the assessee pays tax at the rate of ten percent (10%)
on such investment within thirty days from the date of such investment.
(2) In respect of such investment, a declaration in the prescribed form and manner
shall be made and submitted to the respective Deputy Commissioner of Taxes.
(3) Where any such sum invested is withdrawn from the capital market within one
years from the day of such investment, such sum shall be deemed to be income
of the assessee for that income year classifiable under the head ―Income from
other sources.
(4) The provisions of this section shall not apply to cases where any proceeding
under any provision of this Ordinance or any other law has been drawn on or
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

before the day of making such investment.

Explanation.— For the purpose of this section ‗securities‘ mean stocks, shares,
mutual fund units, bonds, debentures and other securities of the companies listed in
and approved by the Bangladesh Securities and Exchange Commission and all other
government securities and bonds tradable in the capital market.

19AAAAA. Special Tax Treatment in respect of undisclosed property, cash, etc.—

(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 undisclosed movable
property and immovable property shall be raised by any authority if an
individual assessee pays, before the submission of return or revised return of
income during the period between the first day of July, 2020 and the thirtieth
day of June, 2021 (both days inclusive), tax at the rate specified in the following
tables:
Table - 1
Sl. Description of the Property Rate of tax
(1) (2) (3)
1. Land situated in the area of Gulshan Model taka twenty thousand
Town, Banani, Baridhara, Motijheel Commercial per square meter
Area and Dilkusha Commercial Area of Dhaka
2. Land situated in the area of Dhanmandi taka fifteen thousand
Residential Area, Defence Officers Housing and five hundred per
Society (DOHS), Mahakhali, Lalmatia Housing
Society, Uttara Model Town, Bashundhara square meter
Residential Area, Dhaka Cantonment,
Sidheshwary, Kawran Bazar, Bijaynagar, Wari,
Segunbagicha, Nikunja of Dhaka, and Panchlaish,
Khulshi, Agrabad and Nasirabad Area of
Chittagong
3. Land situated in the area of any City Corporation taka five thousand
other than areas mentioned in serial nos. 1 and 2 per square meter
4. Land situated in the area of a Paurasabha or any taka one thousand
district headquarters and five hundred per
square meter
5. Land situated in the area other than the areas taka five hundred per
mentioned in serial nos.1, 2, 3 and 4 square meter

Table - 2

asadtax@gmail.com Page 35
Sl. Description of the Property Rate of tax
(1) (2) (3)
1. Building or apartment, the plinth area of which taka four thousand
does not exceed two hundred square meter, per square meter
situated in the area of Gulshan Model Town,
Banani, Baridhara, Motijheel Commercial Area
and Dilkusha Commercial Area of Dhaka
2. Building or apartment, the plinth area of which taka six thousand per
exceeds two hundred square meter, situated in the square meter
area of Gulshan Model Town, Banani, Baridhara,
Motijheel Commercial Area and Dilkusha
Commercial Area of Dhaka
3. Building or apartment, the plinth area of which taka three thousand
does not exceed two hundred square meter, per square meter
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, Sidheshwary, Kawran Bazar,
Banasree, Bijaynagar, Wari, Segunbagicha,
Nikunja of Dhaka, and Panchlaish, Khulshi,
Agrabad and Nasirabad Area of Chittagong
4. Building or apartment, the plinth area of which taka three thousand
exceeds two hundred square meter, situated in the five hundred per
area of Dhanmandi Residential Area, Defence square meter
Officers Housing Society (DOHS), Mahakhali,
Lalmatia Housing Society, Uttara Model Town,
Bashundhara Residential Area, Dhaka
Cantonment, Sidheshwary, Kawran Bazar,
Banasree, Bijaynagar, Wari, Segunbagicha,
Nikunja of Dhaka, and Panchlaish, Khulshi,
Agrabad and Nasirabad Area of Chittagong
5. Building or apartment, the plinth area of which taka sevenhundred
does not exceed one hundred and twenty square persquare meter
meter, situated in the area of any City
Corporation other than areas mentioned in serial
nos. 1, 2, 3 and 4
6. Building or apartment, the plinth area of which taka eight hundred
exceeds one hundred and twenty square meter but and
does not exceed two hundred square meter, fifty per square meter
situated in the area of any City Corporation other
 than areas mentioned in serial nos. 1, 2, 3 and 4
7. Building or apartment, the plinth area of which taka one thousand
exceeds two hundred square meter, situated in the andthree hundred per
area of any City Corporation other than areas square meter
mentioned in serial nos. 1, 2, 3 and 4
8. Building or apartment, the plinth area of which taka three hundred
does not exceed one hundred and twenty square persquare meter
meter, situated in the area of a Paurasabha of any
district headquarters
9. Building or apartment, the plinth area of which taka four hundred
exceeds one hundred and twenty square meter but andfifty per square
does not exceed two hundred square meter, meter
situated in the area of a Paurasabha of any district
headquarters
10. Building or apartment, the plinth area of which taka six hundred per
exceeds two hundred square meter, situated in the square meter
area of a Paurasabha of any district headquarters
11. Building or apartment, the plinth area of which taka two hundred per
does not exceed one hundred and twenty square square meter
meter, situated in the area other than the areas
mentioned in serial nos. 1, 2, 3, 4, 5, 6, 7, 8, 9 and
10
12. Building or apartment, the plinth area of which taka three hundred
exceeds one hundred and twenty square meter but persquare meter
does not exceed two hundred square meter,
situated in the area other than the areas mentioned
in serial nos.1, 2, 3, 4, 5, 6, 7, 8, 9 and 10
13. Building or apartment, the plinth area of which taka five hundred per
exceeds two hundred square meter, situated in the square meter
area other than the areas mentioned in serial
nos.1, 2, 3, 4, 5, 6, 7, 8, 9 and 10

Table - 3
Sl. Description of the Property Rate of tax
(1) (2) (3)
1. Cash, bank deposits, financial schemes ten percentof the
andinstruments, all kinds of deposits or totalamount
savingdeposits, savings instruments or certificates
 (2) The provisions of this section shall not apply to cases where any proceeding
under any provision of this Ordinance or any other law has been drawn on or
before the day of submission of return or revised return.

19B. Special tax treatment in respect of investment in house property.- [deleted]

19BB. Special tax treatment in respect of investment in land property.- [deleted]

19BBB. Special tax treatment regarding investment in motor vehicles.- [deleted]

19BBBB. Special tax treatment in respect of investment in house property.- [deleted]

19BBBBB. Special tax treatment in respect of investment in building, apartment.–

(1) Notwithstanding anything contained in this Ordinance, source of any sum
invested by any person, in the construction or purchase of any 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 Dhaka-
(i) Tk. 4,000 per square meter in the case of a building or an apartment
the plinth area of which does not exceed 200 square meter;
(ii) Tk. 5,000 per square meter in the case of a building or an apartment
the plinth area of which exceeds 200 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
Chattogram-
(i) Tk. 3,000 per square meter in the case of a building or an apartment
the plinth area of which does not exceed 200 square meter;
(ii) Tk. 3,500 per square meter in the case of a building or an apartment
the plinth area of which exceeds 200 square meter;
(c) for building or apartment situated in the area of any City Corporation other
than areas mentioned in clauses (a) or (b)-
 (i) Tk. 800 per square meter in the case of a building or an apartment
the plinth area of which does not exceed 120 square meter;
(ii) Tk. 1,000 per square meter in the case of a building or an apartment
the plinth area of which exceeds 120 square meter but does not
exceed 200 square meter;
(iii) Tk. 1,500 per square meter in the case of a building or an apartment
the plinth area of which exceeds 200 square meter;
(d) for building or apartment situated in the area of a Paurasava of any district
headquarters
(i) Tk. 300 per square meter in the case of a building or an apartment
the plinth area of which does not exceed 120 square meter;
(ii) Tk. 500 per square meter in the case of a building or an apartment
the plinth area of which exceeds 120 square meter but does not
exceed 200 square meter;
(iii) Tk. 700 per square meter in the case of a building or an apartment
the plinth area of which exceeds 200 square meter;
(e) for building or apartment situated in the area other than the areas
mentioned in clauses (a) to (d) -
(i) Tk. 200 per square meter in the case of a building or an apartment
the plinth area of which does not exceed 120 square meter;
(ii) Tk. 300 per square meter in the case of a building or an apartment
the plinth area of which exceeds 120 square meter but does not
exceed 200 square meter;
(iii) Tk. 500 per square meter in the case of a building or an apartment
the plinth area of which exceeds 200 square meter;
(2) The rate of tax mentioned in sub-section (1) shall be 20% 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 100% higher in case,
where-
(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
building or apartment, is-
(a) derived from any criminal activities under any other law for the time being
in force; or
(b) not derived from any legitimate source.

19C. Special tax treatment in respect of investment in the purchase of bond under
Bangladesh Infrastructure Finance Fund.-
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 10% on such sum invested.

19D. [deleted]

19DD. Special tax treatment in respect of investment in Economic Zones or Hi-Tech

Parks.
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 বোাং঱োচেল অথনি িনি@ অঞ্চ঱ আইি, ২০১০ or in
any hi-tech park declared under section 22 of বোাং঱োচেল হোই-কে@ পো@ি @িিপত ক্ষ আইি,
২০১০ 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.

19E. Voluntary disclosure of income.-

(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 10% of tax proportionate to such income under
respective heads of income;
(b) the return of income is submitted within the time specified in 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-
(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;
(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 force; 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.
 CHAPTER V
COMPUTATION OF INCOME

20. Heads of income.-

Save as otherwise provided in this Ordinance, all incomes shall, for the purpose of
charge of income tax and computation of total income, be classified and computed
under the following heads of income, namely:-
(a) Salaries;
(b) Interest on securities;
(c) Income from house property;
(d) Agricultural income;
(e) Income from business or profession;
(f) Capital gains;
(g) Income from other sources.

21. Salaries.-
(1) The following income of an Assessee shall be classified and computed under
the head "Salaries", namely:-
(a) any salary due from an employer to the Assessee in the income year,
whether paid or not;
(b) any salary paid or allowed to him in the income year, by or on behalf of
an employer though not due or before it became due to him; and
(c) any arrears of salary paid or allowed to him in the income year by or on
behalf of an employer, if not charged to income-tax for any earlier
income year.
(2) Where any amount of salary of an Assessee is once included in his total income
of an income year on the basis that it had become due or that it had been paid in
advance in that year, that amount shall not again be included in his income of
any other year.

22. Interest on securities.-

The following income of an Assessee shall be classified and computed under the head
"Interest on securities", namely:-
(a) interest receivable by the Assessee on any security of the Government or any
security approved by Government; and
(b) interest receivable by him on debentures or other securities of money issued by
 or on behalf of a local authority or a company.

23. Deductions from interest on securities.-

(1) In computing the income under the head "Interest on securities", the following
allowances and deduction shall be made, namely:-
(a) any sum deducted from interest by way of commission or charges by a
bank realizing the interest on behalf of the Assessee;
(b) any interest payable on money borrowed for the purpose of investment in
the securities by the Assessee:
Provided that no allowance or deduction on account of any interest or
commission paid under clause (a) or (b), as the case may be, in respect of, or
allocable to the securities of Government which have been issued with the
condition that interest thereon shall not be liable to tax, shall be made in
computing the income under section 22.
(2) Notwithstanding anything contained in sub-section (1), no deduction shall be
allowed under this section in respect of any interest payable outside
Bangladesh on which tax has not been paid or deducted in accordance with the
provisions of Chapter VII.

24. Income from house property.-

(1) Tax shall be payable by an Assessee under the head "Income from house
property" in respect of the annual value of any property, whether used for
commercial or residential purposes, consisting of any building, furniture,
fixture, fittings etc. and lands appurtenant thereto of which he is the owner,
other than such portions of the property as he may occupy for the purposes of
any business or profession carried on by him, the income from which is
assessable to tax under this Ordinance.
(2) Where any such property as is referred to in sub-section (1) is owned by two or
more persons and their respective shares are definite and ascertainable, such
persons shall not constitute and shall not be deemed to be, an association of
persons; and for the purpose of computation of the income of an Assessee in
respect of that property, only such part of such income as is proportionate to
the share of the Assessee shall be reckoned as his income from that property.

25. Deductions from income from house property.-

(1) In computing the income under the head "Income from house property" the
following allowances and deductions shall be made, namely:-
(a) any sum payable to Government as land development tax or rent on
account of the land comprised in the property;
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

(b) the amount of any premium paid to insure the property against risk of
damage or destruction;
(c) [deleted]
(d) where the property is subject to mortgage or other capital charge for the
purpose of extension or reconstruction or improvement, the amount of
any interest payable on such mortgage or charge;
(e) where the property is subject to an annual charge not being a capital
charge, the amount of such charge;
Explanation.- The expression "annual charge", as used in this clause,
includes any tax leviable, in respect of property or income from
property, by local authority or Government but does not include the tax
leviable under this Ordinance;
(f) where the property is subject to a ground rent, the amount of such rent;
(g) where the property has been acquired, constructed, repaired, renewed or
reconstructed with borrowed capital from bank or financial institution,
the amount of any interest payable on such capital;
(gg) Where the property has been constructed with borrowed capital from
bank or financial institution and no income under section 24 was earned
from that property during the period of such construction, the interest
payable during that period on such capital, in three equal proportionate
installments for subsequent first three years for which income is
assessable from that property;
(h) in respect of expenditure for repairs, collection of rent, water and
sewerage, electricity and salary of darwan, security guard, pump-man,
lift-man and caretaker and all other expenditure related to maintenance
and provision of basic services:
(i) an amount equal to one fourth of the annual value of the property
where the property is used for residential purpose;
(ii) an amount equal to 30% of the annual value of the property where
the property is used for commercial purpose;
(i) [deleted]
(j) where, the whole of the property is let out and it was vacant during a part
of the year, a sum equal to such portion of the annual value of the
property as is proportionate to the period of the vacancy; and
(k) where, the property is let out in parts, a sum equal to such portion of the
annual value appropriate to the vacant part as is proportionate to the
period of the vacancy of such part.
(2) Notwithstanding anything contained in sub-section (1), no deduction shall be
allowed under this section in respect of any interest or annual charge payable

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[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

outside Bangladesh on which tax has not been paid or deducted in accordance
with the provisions of Chapter VII.

26. Agricultural income.-

(1) The following income of an Assessee shall be classified and computed under
the head "Agricultural income", namely:-
(a) any income derived by the Assessee which comes within the meaning of
"agricultural income" as defined in section 2(1);
(b) the excess amount referred to in section 19(17);
(c) the excess amount referred to in section 19(19).
(2) Agricultural income derived from the sale of tea grown and manufactured by
the Assessee shall be computed in the prescribed manner.
(3) Where the Board, by notification in the official Gazette, so directs, agricultural
income from the sale of rubber, tobacco, sugar or any other produce grown and
manufactured by the Assessee may be computed in the manner prescribed for
the purpose.

27. Deductions from agricultural income.-

(1) In computing the income under the head "Agricultural income", the following
allowances and deductions shall be made, namely:-
(a) any land development tax or rent paid in respect of the land used for
agricultural purposes;
(b) any tax, local rate or cess paid in respect of the land used for agricultural
purposes, if such tax, rate or cess is not levied on the income arising or
accruing, or deemed to accrue or arise, from agricultural operations or is
not assessed at a proportion or on the basis of such income;
(c) (i) subject to sub-clauses (ii) and (iii), the cost of production, that is to
say, the expenditure incurred for the following purposes, namely:-
(a) for cultivating the land or raising livestock thereon;
(b) for performing any process ordinarily employed by a
cultivator to render marketable the produce of the land;
(c) for transporting the produce of the land or the livestock raised
thereon to the market; and
(d) for maintaining agricultural implements and machinery in
good repair and for providing upkeep of cattle for the purpose
of cultivation, processing or transportation as aforesaid;
(ii) where books of accounts in respect of agricultural income derived

asadtax@gmail.com Page 46
 from the land are not maintained, the cost of production to be
deducted shall, instead of the expenditure mentioned in sub-clause
(i), be 60% of the market value of the produce of the land;
(iii) no deduction on account of cost of production shall be admissible
under this clause if the agricultural income is derived by the owner
of the land from the share of the produce raised through any
system of sharing of crop generally known as adhi, barga or bhag;
(d) any sum paid as premium in order to effect any insurance against loss of,
or damage to, the land or any crop to be raised from, or cattle to be reared
on, the land;
(e) any sum paid in respect of the maintenance of any irrigation or protective
work or other capital assets; and such maintenance includes current
repairs and, in the case of protective dykes and embankments, all such
work as may be necessary from year to year for repairing any damage or
destruction caused by flood or other natural causes;
(f) a sum calculated at the rate as provided in the Third Schedule on account
of depreciation in respect of irrigation or protective work or other capital
assets constructed or acquired for the benefit of the land from which
agricultural income is derived or for the purpose of deriving agricultural
income from the land, if the required particulars are furnished by the
Assessee;
(g) where the land is subject to a mortgage or other capital charge for
purposes of reclamation or improvement, the amount of any interest paid
in respect of such mortgage or charge;
(h) where the land has been acquired, reclaimed or improved by the use of
borrowed capital, the amount of any interest paid in respect of such
capital;
(i) where any machinery or plant which has been used by the Assessee
exclusively for agricultural purposes has been discarded, demolished or
destroyed in the income year, the amount actually written off on that
account in the books of accounts of the Assessee,-
(i) subject to the maximum of the amount by which the written down
value of the machinery or plant exceeds the scrap value thereof if no
insurance, salvage or compensation money has been received in
respect of such machinery or plant; and
(ii) subject to the maximum of the amount by which the difference
between the written down value and the scrap value exceeds the
amount of insurance, salvage or compensation money received in
respect of such machinery or plant;
(j) where any machinery or plant which has been used by the Assessee
 exclusively for agricultural purposes has been sold or transferred by way
of exchange in the income year, the amount actually written off on that
account in the books of accounts of the Assessee, subject to the maximum
of the amount by which the written down value of the machinery or plant
exceeds the amount for which it has been actually sold or transferred; and
(k) any other expenditure, not being in the nature of capital expenditure or
personal expenditure, laid out wholly and exclusively for the purpose of
deriving agricultural income from the land.
(2) Notwithstanding anything contained in sub-section (1), no deduction shall be
allowed under this section in respect of any interest on which tax has not been
paid or deducted in accordance with the provisions of Chapter VII.

28. Income from business or profession.-

(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);
(h) the amount of income under section 19(23).
(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.
(3) Notwithstanding anything to the contrary contained in any other provisions of
this Ordinance, in the case of Bangladesh Development Bank Ltd, Investment
Corporation of Bangladesh, 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. Deductions from income from business or profession.-

(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 any other entity,
when
lending of money is not the business of transferor, 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;
(v) an amount not exceeding 5% of the total income carried to any
special reserve created by such financial institution and for such
purposes as may be approved by the Government in this behalf, if
the aggregate amount standing in such reserve does not exceed the
paid up share capital of the institution;
(vi) the amount paid on account of current repairs to buildings,
machinery, plant or furniture used for the purposes of the business or
profession;
(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 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;
(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 20% 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;
(x) [deleted]
(xa) [deleted]
(xi) where any building , machinery, 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
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

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, realized 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;
(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

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 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 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;
(xviii) [deleted]
(xviiia) in respect of provision for bad and doubtful debt made by
Bangladesh Development Bank Ltd. for overdue loan, a sum equal to
5% 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;
(xviiiaa) in respect of provision for bad and doubtful debt and interest thereon
made by a commercial bank including the Bangladesh Krishi Bank,
Karmo Shongshtan Bank and the Rajshahi Krishi Unnayan Bank, a
sum equal to 1% 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;
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, 1995-96, 1996-97, 1997-98, 1998-99, 1999-2000, 2000-2001,
2001-2002, 2002-2003, 2003-2004, 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:
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-years Special Treasury Bonds;
(b) any loan advanced to any government organization, 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;
(xix) any expenditure, not being in the nature of capital expenditure, laid
out or expended on scientific research in Bangladesh related to the
business carried on by the Assessee;
(xx) any expenditure of a capital nature laid out or expended on scientific
research 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 and in clauses (xix) and (xx),-
(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 organization within the meaning of the Trade
Organizations Ordinance, 1961, or to a professional institution
recognized 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.
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

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. Deduction not admissible in certain circumstances.-

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;
(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;
(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
(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";
(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 5.50
lakh(five lakh and fifty thousand)and to any employee who is a person with
disability, as exceeds taka 25 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

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 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;
(iii) [deleted]
(iv) distribution of free samples.
(g) any expenditure exceeding 10% of the net profit disclosed in the statement of
accounts by way of head office or intra-group expense, called by whatever
name, by a company not incorporated in Bangladesh under ক@োম্পোনি আইি,
১৯৯৪;

(h) so much of the expenditure or aggregate of the expenditure by an assessee 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 - 10% of the net profit from
from the commencement of the business or profession, excluding
business or profession any profit or income of subsidiary
or associate or joint venture;
(ii) For subsequent income years - 8% of the net profit from business
or profession, excluding any profit
or income of subsidiary or
associate or joint venture;
(i) any payment by way of salary or remuneration made otherwise than by
crossed cheque or bank transfer by a person to any employee having gross
monthly salary of Tk.15,000 or more;
(j) any expenditure by way of incentive bonus exceeding 10% of the net profit
disclosed in the statement of accounts;
(k) any expenditure by way of overseas traveling exceeding 0.50% of the
disclosed turnover:
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;
(m) any payment by a person exceeding Tk.50,000 or more, otherwise than by a
crossed cheque or bank transfer excluding-
(i) payment for the purchase of raw materials;
(ii) salary or remuneration made to any employee, without prejudice to an
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

obligation referred to in clause (i);

(iii) any payment for government obligation
(n) any payment by way of any rent of any property, whether used for
commercial or residential purposes, otherwise than by a crossed cheque or
bank transfer;
(o) any payment made to a person who is required to obtain atwelve-digit
Taxpayer‘s Identification Number underclauses (xxviii), (xxix) and (xxx) of
sub-section (3) ofsection 184A but fails to hold the same at the time
ofpayment.
(p) any promotional expense exceeding zero pointfive zero percent (0.50%) of
the disclosed business turnover.
Explanation: For the purpose of this clause,promotional expense means any
expense incurred by way ofgiving any benefit in kind or cash or in any other
form to anyperson for the promotion of business or profession.

30A. Provision for disallowance.-

Notwithstanding anything contained in sections 28, 29 and 30, the Deputy
Commissioner of Taxes shall not make any disallowance or deduction for any year
from any claim made by an assessee in the trading account or profit or loss account
without specifying reason for such disallowance or deduction.

30B. Treatment of disallowances.-

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.

31. Capital gains.-

Tax shall be payable by an assessee under the head "Capital gains" in respect of any
profits and gains arising from the transfer of a capital asset and such profits and gains
shall be deemed to be the income of the income year in which the transfer took place.

31A. Capital gains from the transfer of business or undertaking.—

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.

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32. Computation of capital gains.-
(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.
(2) For the purpose of this section, "cost of acquisition of the capital asset" means-
(a) where it was acquired by the assessee by purchase, the actual cost of
acquisition; and
(b) where it became the property of the assessee-
(a) [deleted]
(b) [deleted]
(c) [deleted]
(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):
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 15% 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 25% 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 plant, machinery, equipment, motor
vehicle, furniture, fixture, and computer 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 plant, machinery, equipment, motor
vehicle, furniture, fixture, and computerfor the 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,
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

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.
(6) [deleted]
(7) Notwithstanding anything contained in this section or section 31, where a
capital gain arises from the transfer of a capital asset being Government
securities and then no tax shall be charged under this section.
(8) [deleted]
(9) [deleted]
(10) Notwithstanding anything contained in this section or section 31, where a
capital gain arises from the transfer of capital asset being buildings or lands to
a new company registered under the Companies Act, 1913 or ক@োম্পোনি আইি,
১৯৯৪, 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 capital asset of a firm to a new company
registered under the Companies Act, 1913 or ক@োম্পোনি আইি, ১৯৯৪, 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.

(12) Notwithstanding anything contained in 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 paragraph 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.

32A. Computation of capital gains from the transfer of business or undertaking.—

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

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 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. Income from other sources.-

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;
(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;
(e) any other income of any kind or from any source which is not classifiable
under any of the other heads specified in section 20.

34. Deductions from income from other sources.-

(1) The amount of interest paid in respect of money borrowed for the purpose of
acquisition of shares of a company.
(2) Any expenditure, not being in the nature of capital expenditure or personal
expenses of the assessee, incurred solely for the purpose of making or earning
the relevant income.
(3) Where the income is derived from letting on hire of machinery, plant or
furniture belonging to the assessee and also of building belonging to him if the
letting of the building is inseparable from the letting of such machinery, plant
or furniture, the same allowances as are admissible under section 29(1) (vi),
(vii) and (xi) to an assessee in respect of income under the head "Income from
business or profession" subject to the same conditions and limitations as if the
income from such letting on hire were income from business or profession:
Provided that the provisions of section 19(16) shall also be applicable for the
determination of any profits where the sale proceeds of such machinery, plant,
furniture or building exceeds the written down value thereof.
(4) Notwithstanding anything contained in this section, no allowance shall be
made on account of-
 (a) any interest chargeable under this Ordinance which is payable outside
Bangladesh on which tax has not been paid and from which tax has not
been deducted at source under section 56; or
(b) any payment which is chargeable under the head "Salaries" if tax has not
been paid thereon or deducted there from under section 50.

35. Method of accounting.-

(1) All income classifiable under the head "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.
(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.
(3) Without prejudice to the preceding sub-sections, every company as defined in
the Companies Act, 1913 or ক@োম্পোনি আইি, ১৯৯৪ 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 ক@োম্পোনি আইি, ১৯৯৪।
(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 deduced 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 has not complied with the requirements of sub-section (3) 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.

36. Allocation of income from royalties, literary works, etc.-

Where the time taken by the author of a literary or artistic work in the making thereof
exceeds 12 months, the amount received or receivable by him during any income year
in lump sum on account of royalties or copyright fees in respect of that work shall, if
he so claims, be deemed to be the income of-
(a) the income year in which it is received and the immediately preceding income
year if the time taken in making such work exceeds 12 months but does not
exceed 24 months ; and
(b) the income year in which it is received and the two immediately preceding
income years if the time taken in making such work exceeds 24 months, and
shall be allocated in equal proportions to each such income year and the income
of the assessee in respect of an income year shall be computed accordingly.
Explanation.- For the purposes of this section, the expression "author" includes a
joint author and the expression "lump sum" in regard to royalties or copyright fees
includes an advance payment on account of such royalties or copyright fees which is
not returnable.

37. Set off of losses.-

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:
Provided that any loss in respect of any speculation business or any loss under the
head "Capital gains" or any loss from any other source, income of which is exempted
from tax shall not be so set off, but shall, excluding any loss from any other source,
income of which is exempted from tax, in accordance with the provisions of this
Ordinance, be set off, or be carried forward to succeeding assessment year or years
for set off, against any income in respect of speculation business or any income under
the head "Capital gains":
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 Government;
Provided further that 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 property;
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, bidi, zarda, chewing
tobacco, gul or any other smokeless tobacco or tobacco products.

38. Carry forward of business losses.-

Where, for any assessment year, the net result of the computation of income under the
head "Income from business or profession" is a loss to the assessee, not being a loss
sustained in a speculation business, and such loss has not been wholly set off under
section 37, so much of the loss as has not been so set off, the whole of the loss, where
the assessee has no income under any other head or has income only under the head
"Capital gains", shall be carried forward to the next following assessment year, and-
(a) it shall be set off against the income, if any, from the business or profession for
which the loss was originally computed if such business or profession is
continued to be carried on by him in the income year; and
(b) if 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 six
successive assessment years.

39. Carry forward of loss in speculation business.-

(1) Where, for any assessment year, the result of computation of income in respect
of any speculation business carried on by the assessee is a loss, it shall be set off
only against the income, if any, from any other speculation business carried on
by him and assessable for that assessment year.
(2) Where, for any assessment year, any loss computed in respect of a speculation
business has not been wholly set off under sub-section (1), so much of the loss
as has not been so set off, or the whole loss where the assessee has no income
from any other speculation business, shall, subject to the provisions of this
Ordinance, be carried forward to the next following assessment year, and-
(a) it shall be set off against the income, if any, from any speculation business
carried on by him and assessable for that assessment year; and
(b) if the loss cannot be wholly so set off, the amount of loss not so set off
shall be carried forward to the next assessment year and so on for not more
than six successive assessment years.
40. Carry forward of loss under the head "Capital gains".-
(1) Where, in respect of any assessment year, the net result of computation of
income from any source under the head "Capital gains" is a loss, it shall be set
off only against income from any other source falling under that head and
assessable for that year.
(2) Where, for any assessment year, any loss computed under the head "Capital
gains" has not been wholly set off under sub-section (1), so much of the loss as
has not been so set off, or the whole loss where the assessee has no income from
any other source falling under that head, shall, subject to the provisions of this
Ordinance, be carried forward to the next following assessment year, and-
(a) it shall be set off against income, if any, of the assessee under that head
and assessable for that year; and
(b) if the loss cannot be wholly so set off, the amount of loss not so set off
shall be carried forward to the next assessment year and so on for not more
than six successive assessment years.
(3) Where, in respect of any assessment year, the loss computed under the head
"Capital gains" does not exceed Tk. 5,000 it shall not be carried forward and
where it exceeds Tk. 5,000 only so much of such loss shall be carried forward as
exceeds Tk. 5,000.

41. Carry forward of loss under the head "Agricultural income".-

Where, for any assessment year, the net result of the computation of income under the
head "Agricultural income" is a loss to the assessee, and such loss has not been
wholly set off under section 37, so much of the loss as has not been so set off, or the
whole of the loss, where the assessee has no income under any other head or has
income only under the head "Capital gains", shall be carried forward to the next
following assessment year, and-
(a) it shall be set off against agricultural income, if any, of the assessee assessable
for that assessment year; and
(b) if the loss cannot be wholly so set off the amount not so set off shall be carried
forward to the next assessment year and so on for not more than six successive
assessment years.

42. Conditions and limitations of carry forward of loss, etc.-

(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) [deleted]
(3) In the case of 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.
(3 Where the assessee is an Association of Persons, the loss sustained by it under
A) 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.
(3 Where the assessee is a member of the Association of Persons, he shall not be
B) 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).

43. Computation of total income.-

(1) For the purpose of charge of tax, the total income of an assessee shall be
computed in the manner provided in this Ordinance.
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

(2) In computing the total income of an assessee, there shall be included any
exemption or allowance specified in part B of the Sixth Schedule and any
income deemed to be the income of the assessee under section 19, subject to the
limits, conditions and qualifications laid down therein.
(3) Where the assessee is a partner of a firm, then, whether the firm has made a
profit or a loss, his share (whether a net profit or a net loss) shall be taken to be
any salary, interest, commission or other remuneration payable to him by the
firm in respect of the income year increased or decreased respectively by his
share in the balance of the profit or loss of the firm after the deduction of any
interest, salary, commission or other remuneration payable to any partner in
respect of the income year and such share shall be included in his total income:
Provided that if his share so computed is a loss, such loss may be set off
or carried forward and set off in accordance with the provisions of section 42.
(4) In computing the total income of any individual for the purpose of assessment,
there shall be included -
(a) so much of the income of the spouse or minor child of such individual as
arises, directly or indirectly, -
(i) from the membership of the spouse in a firm of which such
individual is a partner;
(ii) from the admission of the minor child to the benefits of partnership
in a firm of which such individual is a partner;
(iii) from assets transferred directly or indirectly to the spouse otherwise
than by way of gift or for adequate consideration or in connection
with an agreement to live apart; or
(iv) from assets transferred directly or indirectly to the minor child, not
being a married daughter, by such individual otherwise than by way
of gift or for adequate consideration; and
(b) so much of the income of any person or association of persons as arises
from assets transferred, otherwise than by way of gift or for adequate
consideration, to such person or association of persons by such individual
for the benefit of the spouse or minor child or both.
(5) All income arising to any person by virtue of a settlement or disposition whether
revocable or not from assets remaining the property of the settlor or disponer,
shall be deemed to be income of the settlor or disponer, and all income arising
to any person by virtue of a revocable transfer of assets shall be deemed to be
income of the transferor and shall be included in the total income of such
person.
(6) For the purpose of sub-section (5),-
(a) a settlement, disposition or transfer shall be deemed to be revocable if it
contains any provision for the retransfer directly or indirectly of the

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 income or assets to the settlor, disponer or transferor, of in any way gives
the settlor, disponer or transferor a right to resume power directly over the
income or assets;
(b) the expression ―settlement or disposition‖ shall include any disposition,
trust, covenant, agreement or arrangement, and the expression settlor or
disponer, in relation to a settlement or disposition, shall include any
person by whom the settlement or disposition was made.
 CHAPTER VI
EXEMPTIONS AND ALLOWANCES

44. Exemption.-
(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.
(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
(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 of
the following amount:
Total income Amount of credit
(i) if the total income does not 15% of the eligible amount;
exceed taka 15 lakh
(ii) if the total income exceeds 10% of the eligible amount;
taka 15 lakh
(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) 25% 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 and fifty lakh taka.
(3) [deleted]
(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.
(5) Notwithstanding anything contained in clause (b) of sub-section (4) or any other
 [Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

section in Chapter VI –
(a) the income of a person for the relevant income year shall not be-
(i) exempted from tax; or
(ii) be subject to reduced rate of tax;
in an assessment year if the person fails to submit the return of income, as
required under section 75;
(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.

45. Exemption of income of an industrial undertaking.-

(1) Subject to the provisions of this Ordinance, the income, profits and gains of an
industrial undertaking set up in Bangladesh between the first day of July, 1974,
and the thirtieth day of June, 1985 (both days inclusive), shall be exempt from
tax payable under this Ordinance for the period specified below-
(a) if the undertaking is set up in such areas as the Board may, by
notification in the official Gazette, specify to be "Special Economic
Zone", for a period of twelve years beginning with the month of
commencement of commercial production of the undertaking;
(b) if the undertaking is set up in such areas as the Board may, by
notification in the official Gazette, specify in this behalf, for a period of
nine years beginning with the month of commencement of commercial
production of the undertaking ; and
(c) in other areas, for a period of five years beginning with the month of such
commencement.
Explanation.- For the purposes of this section, "industrial undertaking"
includes expansion of an existing undertaking if such expansion constitute-
(a) an identifiable unit for production of similar or other goods or class of
goods; or
(b) a similar unit carrying on an identifiable industrial process, but does not
include an undertaking which is formed by splitting up or reconstruction
of an existing business or by the transfer of machinery or plant of an
existing business in Bangladesh to a new business.
(2) The exemption under sub-section (1) shall apply to an industrial undertaking
(hereinafter referred to as the "said undertaking") which fulfills the following
conditions, namely:-

asadtax@gmail.com Page 70
 (a) that the said undertaking is owned and managed by-
(i) a body corporate established by, or in pursuance of, an Act of
Parliament with its head office in Bangladesh; or
(ii) a company registered under the Companies Act, 1913, with its
registered office in Bangladesh and having a subscribed and paid up
capital of not less than taka 1 (one) lakh on the date of
commencement of commercial production;
(b) that the said undertaking belongs to such class of industry as the Board
may, by notification in the official Gazette, specify for the purposes of
this section;
(c) that a part of the income exempted under this section is reinvested in the
said undertaking or is invested in the purchase of bond issued by the
Government and such reinvestment or investment is not-
(i) less than 15% of such income, if it is an undertaking set up in the
areas referred to in sub-section (1) (a) and (b); and
(ii) less than 30% in other areas;
(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 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
within 120 days from the date of commencement of commercial
production:
Provided that the Board may admit an application after the expiry of the said
period of 120 days if it is satisfied that there was sufficient cause for not
making the application within the said period.
(2A) Subject to the provisions of this Ordinance, the income, profits and gains of an
industrial undertaking set up in Bangladesh between the first day of July, 1985,
and the thirtieth day of June, 1995 (both days inclusive), shall be exempt from
the tax payable under this Ordinance for the period specified below-
(a) if the undertaking is set up in such areas as the Board may, by
notification in the official Gazette, specify to be "Special Economic
Zone", for a period of twelve years beginning with the month of
commencement of commercial production of the undertaking;
(b) if the undertaking is set up in such areas as the Board may, by
notification in the official Gazette, specify to be "Least Developed
Areas", for a period of nine years beginning with the month of
commencement of commercial production of the undertaking;
(c) if the undertaking is set up in such areas as the Board may, by
notification in the official Gazette, specify to be "Less Developed Areas",
 for a period of seven years beginning with the month of commencement
of commercial production of the undertaking; and
(d) if the undertaking is set up in the city of Dhaka, Chittagong or Khulna or
the municipality of Narayanganj, or within ten miles from the outer limits
thereof, for a period of five years beginning with the month of
commencement of commercial production of the undertaking.
(2B) The exemption under sub-section (2A) shall apply to an industrial undertaking
(hereinafter referred to as the "said undertaking") which fulfills the following
conditions, namely:-
(a) that the said undertaking is owned and managed by-
(i) a body corporate established by, or in pursuance of, an Act of
Parliament with its head office in Bangladesh; or
(ii) a company registered under the Companies Act, 1913 or ক@োম্পোনি
আইি, ১৯৯৪, with its registered office in Bangladesh and having a
subscribed and paid up capital of not less than taka 1 lakh on the
date of commencement of commercial production;

(b) that the said undertaking belongs to such class of industry as the Board
may, by notification in the official Gazette, specify for the purpose of
this sub-section;
(c) [deleted]
(cc) that a part of the income exempted under sub-section (2A) is invested,
during the period, or within one year from the end of the period to which
the exemption under that sub-section relates, in the said undertaking or
in any new industrial undertaking or in any productive assets being
stocks and shares of a public company or bonds or securities issued by
the Government and such investment is not less than 30% of such
income, 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;
(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 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 within 180 days from the date of commencement of commercial
production:
Provided that the Board may admit an application after the expiry of the
 said period of 180 days if it is satisfied that there was sufficient
cause for not making the application within the said period.
(2C) The Board shall give its decision on an application made under clause (e) of
sub-section (2B) within 3 months 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.
(3) The income, profits and gains of the said undertaking to which this section
applies, shall be computed in accordance with the provisions of sections 28 and
29:
Provided that in respect of depreciation, only the allowances for normal
depreciation specified in paragraph 3 of the Third Schedule shall be allowed.
(4) 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 beyond the period of exemption allowed 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 exempt from tax under this section ; and
(b) any income of the said undertaking classifiable as "Capital gains"
chargeable under the provisions of section 31.
(6) Where any exemption has been allowed under this section and it is
subsequently discovered by the Deputy Commissioner of Taxes that any one or
more of the conditions specified in this section were not fulfilled, the
exemption originally allowed shall be deemed to have been wrongly allowed,
and the Deputy Commissioner of Taxes may, notwithstanding anything
contained in this Ordinance, re-compute the total income of, and the tax
payable by, the assessee for the relevant income year and the provisions of
section 93 or 94 shall, so far as may be, apply thereto, the period of two years
specified in section 94 being reckoned from the end of the assessment year
relevant to the income year in which the infringement was discovered.
(7) An industrial undertaking approved under this section may, not later than 6
months 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.
(8) 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.
46. Exemption of income of a tourist industry.-
(1) Subject to the provisions of this Ordinance, the income, profits and gains of a
tourist industry set up in Bangladesh between the first day of January, 1976,
and the thirtieth day of June, 1985 (both days inclusive), shall be exempt from
the tax payable under this Ordinance, for the period specified below-
(a) if the industry is set up in such areas as the Board may, by notification in
the official Gazette, specify to be "Special Economic Zone", for a period
of twelve years beginning with the commencement of its commercial
service;
(b) if the industry is set up in the cities of Dhaka, Chittagong, Khulna and
Rajshahi and the areas within 15 miles from the outer municipal limits of
those cities, for a period of five years beginning with the month of
commencement of its commercial service ; and
(c) in other areas, for a period of seven years beginning with the month of
such commencement.
Explanation.-For the purposes of this section, the expression "tourist
industry" means a business, industry or undertaking which caters for the
tourists including setting up, establishment or running of hotels, motels,
hunting lodges, amusement and theme park, holiday home, tourist resort,
family fun and games, energy park and private picnic spots of such standard as
may be prescribed by the Board.
(2) The exemption under sub-section (1) shall apply to a tourist industry
(hereinafter referred to as the "said industry"), which fulfils the following
conditions, namely:-
(a) that the said industry is owned and managed by a Bangladeshi company
having a subscribed and paid up capital of not less than taka 1(one) lakh
on the date of commencement of its commercial service;
(b) that the said industry shall have such service facilities as the Board may,
by notification in the official Gazette, specify in this behalf;
(c) that a part of the income, profits and gains derived from the said industry
exempted under sub-section (1) is reinvested in it or is invested in the
purchase of bond issued by the Government, and such reinvestment or
investment is not-
(i) less than 30%, if it is an industry set up in the areas referred to in
sub- section (1) (b); and
(ii) less than 15%, in other areas;
(d) that an application in the prescribed form for approval for the purposes of
this section, as verified in the prescribed manner, is made to the Board
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

within 120 days of the date of commencement of commercial service;

(e) that the said industry is approved and, during the relevant income year,
stands approved by the Board for the purposes of this section.
(2A) Subject to the provisions of this Ordinance, the income, profits and gains of a
tourist industry set up in Bangladesh between the first day of July, 1985, and
the 30th day of June, 1995 (both days inclusive) shall be exempt from the tax
payable under this Ordinance, for the period specified below-
(a) if the industry is set up in such areas as the Board may, by notification in
the official gazette, specify to be "Special Economic Zone", for a period
of twelve years beginning with the month of commencement of its
commercial service;
(b) if the industry is set up in such areas as the Board may, by notification in
the official Gazette, specify to be "Least Developed Areas", for a period
of nine years beginning with the month of commencement of its
commercial service;
(c) if the industry is set up in such areas as the Board may, by notification in
the official Gazette, specify to be "Less Developed Areas", for a period of
seven years beginning with the month of commencement of its
commercial service; and
(d) if the industry is set up in the city of Dhaka, Chittagong or Khulna or the
municipality of Rajshahi, or within 15 miles from the outer limits thereof,
for a period of five years beginning with the month of commencement of
its commercial service.
(2B) The exemption under sub-section (2A) shall apply to a tourist industry
(hereinafter referred to as the "said industry"), which fulfils the following
conditions, namely:-
(a) that the said industry is owned and managed by a Bangladeshi company
having subscribed and paid up capital of not less than taka 1(one) lakh
on the date of commencement of its commercial service;
(b) that the said industry shall have such service facilities as the Board may,
by notification in the official Gazette, specify in this behalf;
(c) [deleted]
(cc) that a part of the income exempted under sub-section (2A) is invested,
during the period, or within one year from the end of the period to which
the exemption under that sub-section relates, in the said undertaking or
in any new industrial undertaking or in any productive assets being
stocks and shares of a public company or bonds or securities issued by
the Government and such investment is not less than 30% of such
income, failing which the income so exempted shall, notwithstanding the
provisions of this Ordinance, be subject to tax in the assessment year for

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 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;
(d) that an 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 180 days of the date of commencement of commercial service;
(e) that the said industry is approved and, during the relevant income year,
stands approved by the Board for the purposes of this section.
(2C) The Board shall give its decision on an application made under clause (d) of
sub-section (2B) within 3 months from the date of receipt of the application by
the Board, failing which the industry shall be deemed to have been approved
by the Board for the purposes of this section.
(3) The profits and gains of the said industry to which this section applies shall be
computed in accordance with the provisions of sections 28 and 29:
Provided that in respect of depreciation, only the allowance for normal
depreciation specified in paragraph 3 of the Third Schedule shall be allowed.
(4) The profits and gains of the said industry shall be computed separately from
other income, profits and gains of the assessee, if any, and where the assessee
sustains a loss from such industry, it shall be carried forward and set off
against the profits and gains of the said industry 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 of exemption allowed under this section.
(5) Nothing contained in this section shall be so construed as to exempt the
following:-
(a) any dividend paid, credited or distributed or deemed to have been paid,
credited or distributed by a company to its shareholders out of the profits
and gains exempt from tax under this section; and
(b) any income of the said industry classifiable as "Capital gains" chargeable
under the provisions of section 31.
(6) Where any exemption has been allowed under this section and it is
subsequently discovered by the Deputy Commissioner of Taxes that any one
or more of the conditions specified in this section were not fulfilled, the
exemption originally allowed shall be deemed to have been wrongly allowed
and the Deputy Commissioner of Taxes may, notwithstanding anything
contained in this Ordinance, re-compute the total income of, and the tax
payable by, the assessee for the relevant income year, and the provisions of
section 93 or 94 shall, so far as may be, apply thereto, the period of two years
specified in section 94 being reckoned from the end of the assessment year
 [Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

relevant to the income year in which the infringement was discovered.

(7) A tourist industry approved under this section may, not later than 6 months
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.
(8) Notwithstanding anything contained in this section, the Board may, in the
public interest, cancel or suspend fully or partially the exemption allowed
under this section.

46A. Exemption from tax of newly established industrial undertakings, etc. in certain
cases.-
(1) Subject to the provisions of this Ordinance, 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, 1995 and the thirtieth day of 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 Dhaka and Chittagong divisions,
excluding the hill districts of Rangamati, Bandarban and Khagrachari,
for a period of 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 Rajshahi, Khulna, Sylhet and Barisal
divisions and the hill districts of Rangamati, Bandarban and
Khagrachari, for a period of six years beginning with the month of
commencement of commercial production or operation of the said
undertaking.
(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

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 pipe line, flyover, large water treatment plant & supply through pipe
line, waste treatment plant, 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 or ক@োম্পোনি আইি,
১৯৯৪ with its registered office in Bangladesh and having a
subscribed and paid up capital of not less than taka 1(one) lakh on
the date of commencement of commercial production or operation;

(b) [deleted]
(c) That 30% 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
10% of the income exempted under sub-section (1) is invested in each
year before the expiry of 3 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.
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 readymade garments industry, if it re-invests 40% 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
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

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
within 6 months from the end of the month of commencement of
commercial production or operation.
(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 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 45 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.
(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 4 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":
Provided that in respect of depreciation, only the allowances for normal
depreciation specified in paragraph 3 of the Third Schedule shall be allowed.

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[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

(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

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 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;
(c) any income of the said undertaking resulting from disallowance made
under section 30;
(d) [deleted]
(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 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 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.

46B. Exemption from tax of newly established industrial undertakings set up between
the period of July, 2011 and June, 2019, etc. in certain cases.-
(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, 2011 and the
thirtieth day of June, 2019 (both days inclusive) shall be exempted from the
tax payable under this Ordinance for the period, and at the rate, specified
below:
if the said undertaking is set-up in-
(i) Dhaka, Mymensingh and Chittagong divisions, excluding Dhaka,
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

Narayanganj, Gazipur, Chittagong, 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 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;
(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 seventh to tenth year 20% of income
Provided that any industry engaged in the production of item as referred to in
clause (e) or clause (l) 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 Chittagong.
(2) For the purpose of this section-
"industrial undertaking" means an industry engaged in the production of-
(a) active pharmaceuticals ingredient industry and radio pharmaceuticals
ndustry;
(aa) automobile manufacturing industry;
(b) barrier contraceptive and rubber latex;
(c) basic chemicals or dyes and chemicals;
(d) basic ingredients of electronic industry (e.g. resistance, capacitor,
transistor, integrator circuit);
(dd) bi-cycle manufacturing industry;
(e) bio-fertilizer;

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 (f) biotechnology;
(g) boilers;
(gg) brick made of automatic Hybrid Hoffmann Kiln or Tunnel Kiln
technology;
(h) compressors;
(i) computer hardware;
(j) energy efficient appliances;
(k) insecticide or pesticide;
(l) petro-chemicals;
(m) pharmaceuticals;
(n) processing of locally produced fruits and vegetables;
(o) radio-active (diffusion) application industry (e.g. developing quality or
decaying polymer or preservation of food or disinfecting medicinal
equipment);
(p) textile machinery;
(q) tissue grafting;
(qq) tyre manufacturing industry; or
(r) 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:-
(a) that the said undertaking 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 ক@োম্পোনি আইি, ১৯৯৪ with its registered
office in Bangladesh and having a subscribed and paid up capital of
not less than taka 20 lakh on the date of commencement of
commercial production;
(b) That 30% 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 10% of the exempted income under sub-section (1) is invested in
 each year before the expiry of 3 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 6 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 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 45 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 4 months
of the receipt or 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 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.

46BB. Exemption from tax of newly established industrialundertakings set up between

the period of July, 2019 and June, 2024, etc. incertain cases.-
(1) Subject to the provisions of this Ordinance, income, profitsand gains under
section 28 from an industrial undertaking (hereinafter referred toas the said
undertaking) set-up in Bangladesh between the first day of July, 2019and the
thirtieth day of June, 2024 (both days inclusive) shall be exempted fromthe tax
payable under this Ordinance for the period, and at the rate, specifiedbelow:
(i) if the said undertaking is set-up in Dhaka, Mymensingh and
Chattogramdivisions, excluding Dhaka, Narayanganj, Gazipur,
Chattogram, Rangamati,Bandarban and Khagrachari districts, for a period
of five years beginning withthe 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
andRangpur divisions (excluding City Corporation area) and Rangamati,
Bandarbanand Khagrachari districts, for a period of ten years beginning
with the month ofcommencement 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
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

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
inclause (viii) or clause (xii) of sub section (2) shall be entitled to exemption
fromtax under the provision of this section even if it is set up in the districts
ofDhaka, Gazipur, Narayanganj or Chattogram.
(2) For the purpose of this section, "industrial undertaking" means-
(a) an industry engaged in, or in the production of,-
(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,
electricoven, 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;

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[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

(xxii) plastic recycling;

(xxiii) textile machinery;
(xxiv) tissue grafting;
(xxv) toy manufacturing;
(xxvi) tyre manufacturing;
(xxvii) Electrical transformer;
(xxvii) 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:-
(a) that the said undertaking 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)
of

(b) that 30% 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
10% of the exempted income under sub-section (1) is invested in each
year before the expiry of 3 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

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 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
6 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 45 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 4 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.
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

(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

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 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.

46C. Exemption from tax of newly established physical infrastructure facility set up
between the period of July, 2011 and June, 2019, etc. in certain cases.-
(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, 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 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 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,-
(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) 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 ক@োম্পোনি আইি, ১৯৯৪ with its registered
office in Bangladesh and having a subscribed and paid up capital of
not less than taka 20 lakh on the date of commencement of
commercial production;
(b) That 30% 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
10% of the exempted income under sub-section (1) is invested in each
year before the expiry of 3 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
6 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 45 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 4 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 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.

46CC. Exemption from tax of newly established physical infrastructure facility set up
between the period of July, 2019 and June, 2024, etc. in certain cases.-
(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 theGovernment
may, by notification in the official Gazette, specify.
(3) The exemption under sub-section (1) shall apply to the said facility if it
fulfilsthe following conditions, namely:-
(a) that the said facility is owned and managed by-
(i) a body corporate established by or under any law for thetime
being in force with its head office in Bangladesh; or
(ii) a company as defined in ক@োম্পোনি আইি, ১৯৯৪ with its registered
office in Bangladesh and having a subscribed and paid up capital
of not less thantwo million taka on the date of commencement
ofcommercial operation;
(b) that 30% of the exempted income under sub-section (1) isinvested in
the said facility or in any new physical infrastructurefacility during the
period of exemption or within one year from theend of the period to
which the exemption under that sub-sectionrelates and in addition to
that, another 10% of the exemptedincome under sub-section (1) is
invested in each year before the expiry of 3 months from the end of the
income year in thepurchase of shares of a company listed with any
 stock exchange,failing which the income so exempted shall,
notwithstanding theprovisions of this Ordinance, be subject to tax in the
assessmentyear 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 incomeyear,
stands approved by the Board for the purposes of this section;
(d) that application in the prescribed form for approval for the purposesof
this section, as verified in the prescribed manner, is made to theBoard
within 6 months from the end of the month ofcommencement of
commercial operation;
(e) that the said facility maintains books of accounts on a regular basisand
submits return of its income as per provisions of section 75 ofthis
Ordinance.
(4) The Board shall give its decision on an application made under clause (d) ofsub-
section (3) within 45 days from the date of receipt of the applicationby the
Board, failing which the facility shall be deemed to have been approvedby 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
ororder passed under sub-section (4), if the application is made within 4
monthsof the receipt of such decision or order, review the previous decision,
order ororders and pass such order in relation thereto as it thinks fit.
(6) The income, profits and gains of the facility to which this section appliesshall be
computed in the same manner as is applicable to income chargeableunder 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 shallbe
computed separately from other income, profits and gains of the assessee, ifany,
and where the assessee sustains a loss from such facility, it shall be
carriedforward and set off against the profits and gains of the said facility for
the nextyear 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 becarried forward beyond the period specified by the Board in the order
issuedunder sub-section (4) or (5).
(8) Unless otherwise specified by the Government, nothing contained in thissection
shall be so construed as to exempt the following from tax chargeableunder this
 [Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

section, namely-
(a) any dividend paid, credited or distributed or deemed to havebeen paid,
credited or distributed by a company to its shareholdersout 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 madeunder
section 30.
(9) Where any exemption is allowed under this section and in the course ofmaking
assessment, the Deputy Commissioner of Taxes is satisfied that any oneor more
of the conditions specified in this section are not fulfilled or anyindividual not
being a Bangladeshi citizen is employed or allowed to workwithout prior
approval of any competent authority of the Government for thispurpose, the
exemption shall stand withdrawn for the relevant assessment yearand the
Deputy Commissioner of Taxes shall determine the tax payable for suchyear.
(10) Any such facility approved under this section may, not later than one yearfrom
the date of approval, apply in writing to the Board for the cancellation ofsuch
approval, and the Board may pass such order or orders thereon as it maydeem
fit.
(11) Notwithstanding anything contained in this section, the Board may, in thepublic
interest, cancel or suspend fully or partially any exemption allowed underthis
section.
(12) The Board may make rules regulating the procedure for the grant ofapproval
under sub-section (4), review under sub-section (5), furnish
informationregarding payment of other taxes by the said facility, and take such
othermeasures connected therewith or incidental to the operation of this section.

47. Exemption of income of co-operative societies.-

(1) The Tax shall not be payable by a co-operative society in respect of-
(a) [deleted]
(b) the entire income from business carried on by it, if it is engaged in the
following:-
(i) agricultural or rural credit;
(ii) cottage industry;
(iii) marketing of agricultural produce of its members;
(iv) purchase of agricultural implements, seeds, livestock or other articles
intended for agriculture for the purpose of supplying them to its
members; or

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 (v) such processing, not being the performance of any manufacturing
operation with the aid of power, of the agricultural produce of its
members as is ordinarily employed by a cultivator to render
marketable the agricultural produce raised by him;
(c) [deleted]; and
(d) any income derived from the letting of godowns or warehouses for the
purpose of storage, processing or facilitating the marketing of commodities
belonging or meant for sale to its members.
Explanation.-For the purpose of this section,-
(a) "cottage industry" means an enterprise, not being owned by a joint stock
company which fulfils the following conditions, namely:-
(i) it is basically an enterprise in which the owner is the investor, a full-
time worker and the actual entrepreneur;
(ii) the capital invested in plant, machinery and equipment does not
exceed taka 3 (three) lakh at any time during the income year;
(iii) the number of workers, including the owner and the members of his
family, shall not on any one twenty-four hour day during the income
year, exceed fifteen; and
(iv) the owner of the enterprise or any member of his family does not
own any other industrial or commercial enterprise either in his own
name or in the name of any other person; and
(b) "member of his family", in relation to the owner of an enterprise,
means the parents, spouse and children dependent on the owner and
employed in the enterprise, whether working full-time or part-time,
or whether for or without any wages, remuneration or compensation
in any form.
(2) Nothing contained in sub-section (1) shall apply to a co-operative society
carrying on such business of insurance as is carried on by a mutual insurance
association in respect of its profits and gains to which paragraph 8 of the Fourth
Schedule applies.
 CHAPTER VII
PAYMENT OF TAX BEFORE ASSESSMENT

48. Deduction at source and advance payment of tax.-

(1) Notwithstanding that regular assessment in respect of any income is to be
made later in any assessment year, and without prejudice to the charge and
recovery of tax under this Ordinance after such assessment, the tax on income
shall be payable by deduction or collection at source, or by way of advance
payment, in accordance with the provisions of this Chapter.
(2) Any sum deducted or collected, or paid by way of advance payment, in
accordance with the provisions of this Chapter, shall, for the purpose of
computing the income of an assessee, be deemed to be the income received,
and be treated as payment of tax in due time, by the assessee.

49. Income subject to deduction at source.-

(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";
(aa) income from discount on the real value of Bangladesh Bank bills;
(b) income classifiable under the head ―Interest on securities‖;
(c) income derived on account of supply of goods, execution of contracts
or services rendered;
(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);
(g) any income chargeable under this Ordinance which is paid or payable
to a non-resident;
(h) income classifiable under the head "Income from house property";
(i) income derived on account of export of manpower;
(j) income derived on account of purchase by public auction;
(k) income derived on account of acting in films;
(l) [deleted]
(ll) income derived on account of travel agency commission or incentive
bonus;
(m) income derived on account of shipping agency commission;
(n) income derived from commission, discount or fees payable to
distributors for distribution or marketing of manufactured goods;
(o) income derived on account of interest on saving deposits, fixed
deposits or term deposits and share of profit on term deposits;
(p) income derived on account of insurance commission;
(q) income classifiable under the head "Capital gains";
(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;
(u) income derived on account of interest on savings instruments;
(v) [deleted]
(w) income derived on account of running of brick field;
(x) income derived on account of services rendered by the doctors;
(y) [deleted]
(z) income derived on account of commission of letter of credit;
(za) income derived on account of survey by a surveyor of general
insurance company;
(zb) [deleted]
(zc) income derived on account of commission, remuneration or charges
as a foreign buyer's agent;
(zd) income from dividends;
(ze) income derived on account of rendering certain services;
(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 any
commodity;
(zi) income derived by a member of a stock exchange on account of
transaction of shares, debentures, mutual funds, bonds or securities;
(zj) income derived on account of courier business of a non- resident;
(zk) [deleted]
 (zkk) income derived on account of export cash subsidy;
(zl) [deleted]
(zm) on account of renewal of trade licence;
(zn) [deleted]
(zo) income derived on account of freight forward agency commission;
(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;
(zt) income derived by foreign technician serving in a diamond cutting
industry;
(zu) [deleted]
(zv) income derived from transfer of securities or mutual fund units by
sponsor shareholders of a company etc;
(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;
(zy) income derived on account of international gateway service in respect
of phone call;
(zz) collection of tax from manufacturer of soft drink;
(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;
(zzff) deduction of tax from any sum paid by real estate developer to land
owner.
(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 the head
"Salaries," 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.

50. Deduction at source from salaries.-

(1) The person responsible for making any payment which constitutes income of
the payee classifiable under the head "Salaries" shall, at the time of making
such payment, deduct tax on the amount so payable at a rate representing the
average of the rates applicable to the estimated total income of the payee
under that head.
(1A) Notwithstanding the provision of sub section (1), where any Government
official is acting as Drawing and Disbursing Officer (DDO) or making or
signing a bill for himself or for any other official subordinate to him to draw
salary from the Government or any authority, as the case may be, he shall, at
the time of making or signing such bill, deduct tax at a rate representing the
average of the rates applicable to the estimated total income of such officials
if such annual salary chargeable to tax exceeds the taxable limit for that
income year.
(1B) For the purposes of sub-section (1A), respective Government Accounts
Office shall issue a tax deduction certificate in prescribed form within thirty
first day of July following the financial year.
(2) At the time of making any deduction under sub-sections (1) and (1A), the
amount to be deducted may be increased or decreased for the purpose of
adjusting any excess or deficiency arising out of any previous deductions or
failure to make deductions.
(2A) The payment under sub-sections (1) and (1A) shall be made by such person
with or without deduction of tax in accordance with a certificate, issued by
 the Deputy Commissioner of Taxes after being satisfied on an application
made by the payee in this behalf, where such certificate specifies that-
(a) no tax shall be deducted from the payee in a case where the tax payable
on the total income of the payee has already been deducted or collected
from such payee under this Ordinance for the rest of the income year;
or
(b) tax shall be deducted at a lesser rate for the rest of the income year in a
case where the payee may, after adjusting the tax already deducted or
collected from such payee under this Ordinance, be liable to pay a
lesser sum of tax than the tax chargeable on his total income.
(3) For the purposes of deduction under sub-sections (1) and (1A) in respect of
salary payable in a foreign currency, the value in taka of such salary shall be
calculated at such rate as the Board may prescribe.

50A. Deduction at source from discount of the real value of Bangladesh Bank bills.-
Any person responsible for paying any amount on account of discount on the real
value of Bangladesh Bank bills shall, at the time of making such payment, deduct
tax at the maximum rate on the amount so payable or the rate applicable to such
amount, whichever is greater.
Provided that no tax shall be deducted under this section where the said bill is
purchased by an approved superannuation fund or pension fund or gratuity fund or
a recognized provident fund, or a workers' profit participation fund.

50B. Deduction of tax from payment of remuneration to Members of Parliament.-

Any person responsible for making any payment as remuneration to a Member of
Parliament shall, at the time of making such payment, deduct tax on the amount so
payable at a rate representing the average of the rates applicable to the estimated
total remuneration of the payee for that income year.

51. Deduction at source from discount, interest or profit on securities.—

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.

51A. [deleted]
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

52. Deduction from payment to contractors, etc.-

(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 10) of the base amount,
as may be prescribed:
Provided that-
(a) the rate of tax shall be 50% higher if the payee does not have the twelve-
digit Taxpayer’s Identification Number at the time of making the
payment;
(b) [deleted]
(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.
(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 53E:
Provided that in case of the goods supplied by anydistributor or any
other person under a contract as referredin sub-section (3) of section
53E, the term ―B‖ as mentionedin paragraph (d) shall be computed as
follows:
B= B={the selling price of the company to the distributoror the other
person as referred in section 53E (3)} × 7% × 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

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 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 Bureauor 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;
(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; and
(xv) any artificial juridical person not mentioned above;
(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;
and shall also be inclusive of ম঱ূ ্ সাংচযোেি @র (value added tax);
(d) ―payment‖ includes a transfer, a credit or an adjustment of paymentor
an order or instruction of making payment.

52A. Deduction from payment of royalties etc. -

(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,
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

patent, invention, formula, process, method, design, pattern, know-how,

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-
Rate of deduction
Description of of tax
payment (% of base amount)
(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 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;
and shall also be inclusive of মূ঱্ সাংচযোেি @র (value added tax);
(d) ―payment‖ includes a transfer, a credit or an adjustment of payment.

52AA. Deduction from the payment of certain services.-

(1) Where any payment is to be made by a specified person to aresident on
account of a service as mentioned in this section, theperson responsible for
making the payment shall, at the time of makingsuch payment, deduct
income tax at the rate specified in the Tablebelow:-
Rate of deduction of tax

Sl. Where base Where base

Description of service and payment amount does not amount exceeds
No
exceed Tk. 25 Tk. 25 lakh
lakh
1 Advisory or consultancy service 10% 12%
2 Professional service, technical 10% 12%

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 services fee, or technical assistance
fee
3 (i) Catering service;
(ii) Cleaning service;
(iii) Collection and recovery
agency;
(iv) Private security service;
(v) Manpower supplyservice;
(vi) Creative media service;
(vii) Public relations service;
(viii) Event managementservice;
(ix) Training, workshop,
etc.organization
andmanagement service;
(x) Courier service;
(xi) Packing and Shifting service;
(xii) any other service of similar
nature-
(a) on commission or fee 10% 12%
(b) on gross bill amount 1.5% 2%
4 Media buying agency service
(a) on commission or fee 10% 12%
(b) on gross bill amount 0.5% 0.65%
5 Indenting commission 6% 8%
6 Meeting fees, training fees 10% 12%
orhonorarium
7 Mobile network operator,technical 10% 12%
support serviceprovider or service
deliveryagents engaged in mobile
banking operations
8 Credit rating service 10% 12%
9 Motor garage or workshop 6% 8%
10 Private container port or dockyard 6% 8%
service
11 Shipping agency commission 6% 8%
12 Stevedoring/berth operation 10% 12%
commission
13 (i) Transport service, carrying 3% 4%
service, vehicle rental service;
(ii) Any other service under any
sharing economy platform including
ride sharing service, coworking space
providing service and
accommodation providing service
13A Wheeling charge for 2% 3%
electricitytransmission
14 Any other service which is not 10% 12%
mentioned in Chapter VII of this
Ordinance and is not a service
provided by any bank, insurance or
financial institutions
Provided that if the amount for services mentioned in SL No. 3 and4 of the Table
shows both commission or fee and gross bill amount tax shall be the higher amount
between (i) and (ii) where-
(i) tax calculated on commission or fee applying there relevant rate in the table;
and
(ii) B x C x D, where-
B = Gross bill amount
C = 10% for Sl. 3 and 2.5% for Sl. 4, and
D = rate of tax applicable on commission or fee:
Provided further that the rate of tax shall be 50% higher if the payee does not
have a twelve-digit Taxpayer’s Identification Number at the time of making the
payment:
Provided further that 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;
and shall also be inclusive of ম঱ূ ্ সাংচযোেি @র (value added tax);
(d) ―payment‖ includes a transfer, a credit or an adjustment of paymentor
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.

52AAA. Collection of tax from clearing and forwarding agents.-

The Commissioner of Customs shall make collection on account of commission
receivable by clearing and forwarding agents licensed under Customs Act, 1969 at
the rate of 10% on such commission at the time of clearance of goods imported or
exported.

52B. Collection of tax from Cigarette manufacturers.-

Any person responsible for selling banderols to any manufacturer of cigarettes shall,
at the time of selling banderols, collect tax from such manufacturers on account of
the manufacture of cigarette at the rate of 10% of the value of the banderols.
Explanation.- For the purposes of this section, ―manufacture of cigarettes‖ means
manufacture of cigarettes manually without any mechanical aid whatsoever.

52C. Deduction at source from compensation against acquisition of property.-

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) 6% of the amount of such compensation where the immovable property is
situated in any city corporation, paurashava or cantonment board;
(b) 3% of the amount of such compensation where the immovable property is
situated outside any city corporation, paurashava or cantonment board.

52D. Deduction at source from interest on saving instruments.-

[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

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 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
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.

52E. [deleted]

52F. Collection of tax from brick manufacturers.-

Any personresponsible for issuing or renewal of permission for the manufacture
ofbricks shall not issue or renew such permission unless the application forissuance
or renewal of such permission is accompanied by a tax clearancecertificate of the
preceding assessment year along with the receipt of the taxverified by the Deputy
Commissioner of Taxes at the following rates:
(a) Tk. 45,000 for one section brick field;
(b) Tk.70,000 for one and half section brick field;
(c) Tk.90,000 for two section brick field;
(d) Tk.1,50,000 for brick field producing bricks through automatic machine.
Explanation:- For the purpose of this section, the word "section" shall have the
same meaning as defined in কমৌসুমী ইেভোেো ম঱ূ ্ সাংচযোেি @র নবনিমো঱ো, ২০০৪।

52G. [deleted]

52H. [deleted]

52I. Deduction from the commission of letter of credit.-

Any person responsible for opening letter of credit for the purpose of import of
goods for himself or for any other person shall, at the time of collecting commission

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[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

with respect to letter of credit, deduct income tax at the rate of 5% on the amount of
such commission.

52J. [deleted]

52JJ. Collection of tax from travel agent.-

(1) Notwithstanding anything contained in any other provisions of this Ordinance,
any person responsible for making any payment to a resident any sum by way
of commission or discount or any other benefits, called by whatever name,
convertible into money for selling passenger tickets or air cargo carriage shall
deduct or collect advance tax at the rate of 0.30% of the total value of the
tickets or any charge for carrying cargo by air at the time of payment to such
resident.
(2) Where any incentive bonus, performance bonus or any other benefits, called
by whatever name, is to be paid in relation to such sale of tickets or bill for
carrying cargo by air in addition to the amount mentioned in sub-section (1),
person responsible for making such payment shall deduct an amount equal to
(A/B) x C, where-
―A‖ is the amount of incentive bonus, performance bonus or any other
benefits as mentioned in sub-section (2),
―B‖ is the amount of commission or discount or any other benefits as
mentioned in sub-section (1), and
―C‖ is the amount of source tax on commission or discount or any other
benefits as mentioned in sub-section (1).
(3) For the purpose of computation of value of tickets or charge, any payment
made in respect of any embarkation fees, travel tax, flight safety insurance,
security tax and airport tax shall not be included in such value or charge.
Explanation.- In this section, ―payment‖ includes a transfer, a credit or an
adjustment of payment.

52K. Collection of tax by City Corporation or Paurashava at the time of renewal of

trade license.-
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) Tk. 3,000 in Dhaka South City Corporation, Dhaka North City Corporation or
Chittagong City Corporation;
(b) Tk. 2,000 in any other city corporation;

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 (c) Tk. 1,000 in any paurashava at any district headquarter;
(d) Tk. 500 in any other paurashava.

52L. [deleted]

52M. Collection of tax from freight forward agency commission.-

Any person responsible for making any payment by way of freight forward agency
commission, at the time of making such payment or credit of such payment to the
account of the payee, shall deduct tax at the rate of 15% of the said amount.

52N. Collection of tax on account of rental power.-

Notwithstanding anything contained in this Ordinance, Bangladesh Power
Development Board , at the time of payment to any rental power company on
account of purchase of rental power from that company, shall collect , deduct or pay
tax on the said payment at the rate of 6%.

52O. Collection of tax from a foreign technician serving in a diamond cutting

industry.-
The person responsible for making any payment-which constitutes income
chargeable under the head ''Salaries'' received by or due to any person who is neither
a citizen of Bangladesh nor was resident in Bangladesh in any of the four years
immediately preceding the year in which he arrived in Bangladesh, as remuneration
for services rendered by him for a period not exceeding three years from the date of
his arrival in Bangladesh, during such period, as a technician employed in diamond
cutting industries under a contract of service, shall deduct tax at the rate of 5% of
such salaries at the time of making payment or giving credit whichever is earlier:
Provided that the provisions of this clause shall not be applicable to foreign
technicians appointed after June 30, 2010.

52P. Deduction of tax for services from convention hall, conference centre, etc.-
(1) Where any payment is to be made by a specified person to anyother person on
account of renting or using space of convention hall, conferencecentre, room
or, as the case may be, hall, hotel, community centre or anyrestaurant, shall
deduct tax at the rate of five per cent from the whole amount ofthe payment
for the services thereof at the time of making such payment to thepayee:
Provided that no deduction shall be made when such amount is paid
directly to the Government.
(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
subsection(2) of section 52.

52Q. Deduction of Tax from any income remitted fromabroad in connection with
any service, revenue sharing, etc.—
Any person, responsible for paying or crediting to the account of aperson any sum
remitted from abroad by way of a fee, servicecharges, commission or remuneration,
called by whatever name, orby 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 residentperson in favour of
a foreign person; or
(c) allowing the use of any online platform for advertisement orany other
purposes,
shall deduct tax at the rate of ten percent at the time ofmaking payment of the sum
or crediting the sum to theaccount of the payee:
Provided that no deduction under this section shall be madeagainst the remittance
from abroad which is—
(i) excluded from total income by paragraph 48 of PartA of the Sixth Schedule,
or
(ii) the proceeds of sales of software or services of aresident if the income from
such sales or services isexempted from tax under paragraph 33 of Part A ofthe
Sixth Schedule.

52R. Deduction of tax from receipts in respect of international phone call. -

(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 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),
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 7.5% on the
 whole amount so paid or credited at the time of such payment or credit
under the said agreement.
(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 7.5% on the whole
amount so paid or credited at the time of such payment or credit;
(3) Notwithstanding anything contained in sub-section (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.

52S. Collection of tax from manufacturer of soft drink, etc.-

The Security Printing Corporation (Bangladesh) Limited, or any other person
responsible for delivery of banderols or stamps, shall collect, at the time of delivery
of such banderols or stamps to any manufacturer of soft drinks or mineral or bottled
water, tax at the rate of 4% of the value of such soft drinks or mineral or bottled
water as determined for the purpose of the Value Added Tax (VAT).

52T. Deduction of tax from any payment in excess of premium paid on life insurance
policy.-
Any person responsible for paying to a resident, any sum in excess of premium paid
for any life insurance policy maintained with any life insurance company, shall
deduct, at the time of payment of such excess amount to the policy holder, income
tax at the rate of 5% on such sum:
Provided that no deduction of tax shall be made in case of death of such
policy holder.

52U. Deduction from payment on account of local letter of credit, etc.-

(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 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 1% of the amount so paid or credited in
relation to the goods invoiced to Person D.
(3) 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.
(4) [deleted]
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.

52V. Deduction from payment by cellular mobile phone operator.-

The Principal Officer of a cellular mobile phone operator company responsible for
making any payment, on account of any revenue sharing or any license fees or any
other fees or charges, called by whatever name, to the regulatory authority, shall
deduct tax at the rate of 10% of such payment at the time of credit to the payee or at
the time of payment thereof, whichever is earlier.

53. Collection of tax from importers.-

(1) The Commissioner of Customs shall make collection of tax payable by the
importers on account of import of goods;
(2) The Board shall, for the purpose of collection of tax under sub-section (1),-
(a) specify the importers from whom collections are to be made; and
(b) prescribe the method and rate of calculation of the amount to be
collected and the manner of collection.
(3) Any amount collected under sub-section (1) shall be deemed to be an advance
payment of tax by the importer concerned, and shall be given credit for, in the
assessment of his tax.

53A. Deduction at source from house property.-

(1) Where anyspecified person is a tenant in respect of a house property or
 hotelaccommodation, the tenant shall deduct tax from the rent of such house
propertyor hotel accommodation at the rate of five per cent at the time of
payment of suchrent.
Explanation.- For the purpose of this section, "rent" means any payment,
bywhatever name called, under any lease, tenancy or any other agreement
orarrangement for the use of any house property or hotel
accommodationincluding any furniture, fittings and the land appurtenant
thereto.
(2) Where, after the assessment made for the relevant year, it is found that notax
was payable by the owner of the house property or the amount of taxdeducted
is in excess of the amount payable, the amount deducted shall berefunded,-
(a) if no tax was payable, in full; or
(b) if the amount deducted is in excess of the amount payable, to theextent
of the excess deduction to the owner of the houseproperty.
(3) Where the Deputy Commissioner of Taxes, on an application made in
thisbehalf, gives a certificate in the prescribed form to an owner of house
propertythat, to the best of his belief, the owner is not likely to have any
assessableincome during the year or the income is otherwise exempted from
payment ofincome tax under any provision of this Ordinance, payment
referred to in subsection(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
subsection(2) of section 52.

53AA. Collection of tax from shipping business of a resident.-

Commissioner of Customs or any other authority, duly authorised in this behalf,
shall not grant port clearance to a ship owned or chartered by a resident assessee
unless a certificate is received in prescribed manner from Deputy Commissioner of
Taxes concerned and tax at the rate of 5% of total freight received or receivable in
or out of Bangladesh has been paid for carriage of passengers, livestock, mail or
goods, shipped at any port of Bangladesh:
Provided that tax shall be collected at the rate of 3% of total freight received
or receivable from services rendered between two or more foreign countries.

53B. Deduction of tax from income derived on account of export of manpower.-

 The Director General, Bureau of Manpower, Employment and Training shall, before
giving clearance for export of any manpower, collect from the exporter concerned
as advance tax on income on account of such export at such percentage of the
service charge or fees mentioned in clause (n) and clause (r), respectively, of section
19(2) of the Emigration Ordinance, 1982 (XXIX of 1982), as may be prescribed.

53BB. Collection of tax from export of certain items.-

The bank, through which export proceeds of an exporter of knit wear and woven
garments, terry towel, carton and accessories of garments industry jute goods,
frozen food, vegetables, leather goods, packed food is received, shall deduct tax at
the rate of 0.5% of the total export proceeds at the time of crediting the proceeds to
the account of the exporter:
Provided that 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, credit to the account of the assessee shall
be made without any deduction of tax or deduction of tax at a rate less than the rate
specified in this section for the period mentioned in that certificate.

53BBB. Collection of tax from Member of Stock Exchanges.—

The Chief Executive Officer of a stock exchange shall collect tax at the rateof
―zero point zero five percent (0.05%)‖on the value of shares and mutualfunds
transacted by a member of a stock exchange and at the rate of tenpercent
(10%) on the commission received or receivable by a member of astock exchange
for the transaction of securities other than shares and mutualfunds at the time of
making payment for such transactions.

53BBBB. Collection of tax from export of any goods except certain items.-
The bank, through which export proceeds of an exporter of any goods except knit
wear, woven garments, terry towel, carton and accessories of garments industry, jute
goods, frozen food, vegetables, leather goods and packed food is received, shall
deduct tax at the rate of 0.5% of the total export proceeds at the time of crediting the
proceeds to the account of the exporter, which shall be deemed to be an advance
payment of tax by the exporter and shall be given credit for the assessment of his
tax:
Provided that 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, credit to the account of the assessee shall
be made without any deduction of tax or deduction of tax at a rate less than the
rate
specified in this section for the period mentioned in that certificate.
53C. Collection of tax on sale price of goods or property sold by public auction.-
Any person making sale, by 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 as defined in ক@োম্পোনি আইি, ১৯৯৪, 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, as advance tax on the income from the sale
price of such goods or property from the auction purchaser at such rate, not
exceeding 7.5% of the sale price, as may be prescribed.

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, fees or other levies, by whatever name called, but does not
include sale of a plot of land.

53CC. [deleted]

53CCC. Deduction or collection of tax at source from courier business of a non-

resident.-
Any person being a company registered under the Companies Act, 1913 or ক@োম্পোনি
আইি, ১৯৯৪ working as local agent of a non-resident courier company shall deduct or
collect tax in advance at the rate of 15% on the amount of service charge accrued
from the shipment of goods, documents, parcels or any other things outside
Bangladesh.

53D. Deduction from payment to actors, actresses, producers, etc.-

(1) A person responsible for making any part or full payment for purchasing a
film, drama or television or radio programme shall deduct tax at the rate of
10% of the amount paid or payable at the time of making payment or credit of
such payment to the account of the payee.
(2) A person responsible for making any part or full payment to another person
for performing in a film, drama, advertisement or any television or radio
programme shall deduct tax at the rate of 10% of the amount paid or payable
at the time of making payment or credit of such payment to the account of the
payee:
Provided that no tax shall be deducted under this section if the total payment does
 not exceed Tk. 10,000.

53DDD. Deduction of tax at source from export cash subsidy.-

Any person responsible for paying any amount on account of export cash subsidy to
an exporter for promotion of export shall, at the time of payment or credit of such
amount, deduct or collect tax in advance at the rate of 10% on the amount so
payable.

53E. Deduction or collection at source from commission, discount, fees, etc.-

(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 another 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 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
1.5% of the payment.
(3) Any company, other than an oil marketing company, which sells goods to-
(i) any distributor; or
(ii) 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 suchany other person at the rate of 5% on the amount
equal to B × 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 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 paymentor an
order or instruction of making payment;
(b) ―contract‖ includes an agreement or arrangement, whether written or
not.
53EE. Deduction of tax from commission or remuneration paid to agent of foreign
buyer.-
Where, in accordance with the terms of the letter of credit or under any other
instruction, a bank, through which an exporter receives payment for export of
goods, pays any amount out of the export proceeds to the credit of any person being
an agent or a representative of the foreign buyer, as commission, charges or
remuneration by whatever name it may be called, the bank shall deduct or collect
tax in advance at the rate of 10% on the commission, charges or remuneration so
paid at the time of such payment.

53F. Deduction at source from interest on saving deposits and fixed deposits, etc.-
(1) 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 of-
(a) 10% where the person receiving such interest or share of profit furnishes
his twelve-digit Taxpayer's Identification Number (TIN) to the payer; or
(b) 15% where the person receiving such interest or share of profit fails to
furnish his twelve-digit Taxpayer's Identification Number (TIN) to the
payer:
Provided that the rate of deduction of tax shall be10% in case of saving
deposit of which balance does not exceed taka 1 lakh at any time in the
year.
(c) 10% where the person receiving such interest or share of profit 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.
(2) Notwithstanding anything contained in this Ordinance or any other law for the
time being in force in respect of exemption of tax from any fund, any person
responsible for paying any sum by way of interest on any saving deposits or
fixed deposits or any term deposit maintained with any bank including a co-
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

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, by or in the name of a fund shall deduct, at the time of credit of such
interest to the account of the fund or at the time of payment thereof,
whichever occurs earlier, income tax at the rate of 5% on such sum.
(3) 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.

53FF. Collection of tax from persons engaged in real estate or land development
business.-
Any person responsible for registering any document for transfer of any land or
building or apartment, under the provision of Registration Act 1908, shall not
register the document unless tax is paid at the following rate by the transferer who
is engaged in real estate or land development business,-
(a) in case of building or apartment, constructed for residential purposes,
situated-
(i) at Gulshan Model Town, Banani, Baridhara, Motijheel Commercial
Area and Dilkusha Commercial Area of Dhaka, Tk. 1,600(one
thousand and six hundred) per square metre;
(ii) at Dhanmandi Residential Area, Defense Officers Housing Society
(DOHS), Mahakhali, Lalmatia Housing Society, Uttara Model Town,
Bashundhara Residential Area, Dhaka Cantonment Area, Karwan
Bazar Commercial Area of Dhaka and Panchlaish Residential Area,
Khulshi Residential Area, Agrabad and Nasirabad of Chittagong,
Tk.1,500 (one thousand and five hundred) per square metre;
(iii) in areas other than the areas mentioned in sub-clauses (i) and (ii) –
A. if the area is within Dhaka South City Corporation, Dhaka North
City Corporation and Chittagong City Corporation, Tk. 1,000 per
square metre;
B. if the area is within any other city corporation, Tk. 700 per
square metre;
C. any other area, Tk. 300 per square metre:
Provided that the rate of source tax under clause (a) in respect of a
residential apartment shall be 20% lower if the size of the apartment,

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[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

including common space, is not more than 70 square metre, and 40% lower
if the size of the apartment, including common space, is not more than 60
square metre;
(aa) in case of building or apartment or any space thereof, constructed not for the
residential purposes, situated-
(i) in areas mentioned under sub-clause (i) of clause (a), Tk.6,500 per
square metre;
(ii) in areas mentioned under sub-clause (ii) of clause (a), Tk. 5,000 per
square metre;
(iii) in areas other than the areas mentioned in sub-clauses (i) and (ii) –
A. if the area is within Dhaka South City Corporation, Dhaka North
City Corporation and Chittagong City Corporation, Tk. 3,500 per
square metre;
B. if the area is within any other city corporation, Tk. 2,500 per
square metre;
C. any other area, Tk. 1,200 per square metre.
(b) in case of land to which the document relates and on which stamp duty is
chargeable under the Stamp Act, 1899 at the rate of-
(i) 5% for Dhaka, Gazipur, Narayanganj, Munshiganj, Manikganj,
Narsingdi and Chittagong districts;
(ii) 3% for any other district.

53G. Deduction at source from insurance commission.-

Any person responsible for paying to a resident any sum by way of remuneration or
reward, whether by way of commission or otherwise, for soliciting or procuring
insurance business including business relating to the continuance, renewal or
revival of policies of insurance, shall, at the time of credit of such sum to the
account of the payee or at the time of payment thereof in cash or by issue of a
cheque or draft or by any other mode, whichever is earlier, deduct income tax on
such sum at the rate of 5%.

53GG. Deduction at source from fees, etc. of surveyors of general insurance

company.-
A person responsible for paying to a resident any sum by way of remuneration or
fees for conducting any survey regarding settlement of claim of an insurance shall,
at the time of payment, deduct income-tax on such sum at the rate of 10%.

asadtax@gmail.com Page
53H. Collection of tax on transfer, etc. of property.-
(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 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 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 Tk. 10,80,000 per katha (1.65
decimal) for land, Tk. 600 per square meter for any structure, building, flat,
apartment or floor space on the land, if any, or 4% 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 against
any loan;

53HH. Collection of tax from lease of property.-

Any registering officer responsible for registering under the Registration Act, 1908
any document in relation to any lease of immovable property for not less than ten
years from any authority formed or established under any law or from any other
person being an individual, a firm, an association of persons, a Hindu undivided
family, a company or any artificial juridical person shall not register such document
unless tax is paid at a rate of 4% by the lessor on the lease amount of such property.
Explanation.-For the purpose of this section, "any authority" shall mean Rajdhani
Unnayan Kartripakkha (RAJUK), Chittagong Development Authority (CDA),
Rajshahi Development Authority (RDA), Khulna Development Authority (KDA) or
National Housing Authority.

53I. Deduction at source from interest on deposit of Post Office Savings Bank
Account.-
Any person responsible for paying any amount on account of interest of Post Office
Savings Bank Account shall deduct, at the time of credit to the account of the payee
or at the time of payment thereof, whichever is earlier, tax on such amount at the
rate of 10%:
Provided that nothing contained in this section shall apply to such payee or class
of payees as the Board may, by a general or special order, specify in this behalf.
53J. Deduction at source from rental value of vacant land or plant or machinery.-
(1) Where any payment is to be made by a specified person to aresident on
account of renting 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
paymentat 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
subsection(2) of section 52.

53K. Deduction of tax from advertising bill of newspaper or magazine or private

television channel or private radio station, etc.-
The Government or any authority, corporation or body, including its units, the
activities or the principal activities of which are authorized by any Act, Ordinance,
Order or any other Instrument having the force of law in Bangladesh or any
company as defined in clause (20) of section (2) 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 or any non-government organization registered with NGO
Affairs Bureau or any university or medical college or dental college or engineering
college responsible for making any payment to newspaper or magazine or private
television channel or private radio station or any web site or any person on account
of advertisement or purchasing airtime of private television channel or radio station
or such web site shall deduct tax in advance at the time of such payment at the rate
of 4%.

53L. [deleted]

53M. Collection of tax from transfer of securities or mutual fund units by sponsor
shareholders of a company etc.-
The Securities & 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 5% 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 units shall be deemed to be the
closing price of securities or mutual fund units prevailing on the day 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.

53N. Collection of tax from transfer of share of shareholder of Stock Exchanges.-

The Principal Officer of a stock exchange shall deduct tax at the rate of 15% on any
profits and gains arising from the transfer of share of a shareholder of stock
exchange established under এ@চেচেস নিনমউেয য়ো঱োইচেলি আইি, ২০১৩(Exchanges
Demutualisation Act, 2013) at the time of transfer or declaration of transfer or
according consent to transfer of such share, whichever is earlier.

For the purpose of the computation of profits and gains of share under sub-section
(1), the cost of acquisition of such share shall be the cost of acquisition incurred
before এক্সচেচেস নিনমউেয য়ো঱োইচেলি আইি, ২০১৩ (Exchanges Demutualisation Act, 2013)
came into force.

53O. [deleted]

53P. Deduction of tax from any sum paid by real estate developer to land owner.-
Where any person engaged in real estate or land development business pays any
sum to the land owner on account of signing money, subsistence money, house rent
or in any other form called by whatever name for the purpose of development of the
land of such owner in accordance with any power of attorney or any agreement or
any written contract, such person shall deduct tax at the rate of 15% on the sum so
paid at the time of such payment.

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 10% where
the person receiving such dividend furnishes his twelve-digit Taxpayer's
Identification Number (TIN) to the payer or 15% where the person receiving
 such dividend fails to furnish his twelve-digit Taxpayer's Identification
Number (TIN) to the payer:
Provided that the provision of this section shall not be applicable to any
distribution of taxed dividend to a company if such taxed dividend enjoys tax
exemption under the provisions of the paragraph 60 of Part A of the Sixth
Schedule.

55. Deduction from income from lottery, etc.-

The person responsible for paying any amount on account of winnings referred to in
section 19(13) shall, at the time of making such payment, deduct tax payable on the
amount at the rate of 20%.
Explanation.-For the purposes of this section, the expression "any amount" means
the value of any goods or assets where the payment on account of such winnings is
made not in the form of cash but in the form of goods or other assets.

56. Deduction from income of non-residents.-

(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:
Rate of
Sl.
Description of services or payments deduction of
No
tax
1 Advisory or consultancy service 20%
2 Pre-shipment inspection service 20%
3 Professional service, technical services, technical 20%
know-how or technical assistance
4 Architecture, interior design or landscape design, 20%
fashion design or process design
5 Certification, rating etc. 20%
6 Charge or rent for satellite, airtime or frequency, 20%
rent for channel broadcast
7 Legal service 20%
8 Management service including even management 20%
9 Commission 20%
 10 Royalty, license fee or payments related to 20%
intangibles
11 Interest 20%
12 Advertisement broadcasting 20%
13 Advertisement making or Digital marketing 15%
14 Air transport or water transport not being the 7.5%
carrying services mentioned in sections 102 or
103A
15 Contractor or sub-contractor of manufacturing, 7.5%
process or conversion
16 Supplier 7.5%
17 Capital gain 15%
18 Insurance premium 10%
19 Rental of machinery, equipment etc. 15%
20 Dividend-
(a) company, fund and trust 20%
(b) any other person not being a company, fund 30%
and trust
21 Artist, singer or player 30%
22 Salary or remuneration 30%
23 Exploration or drilling in petroleum operations 5.25%
24 Survey for coal, oil or gas exploration 5.25%
24A Fees, etc. of surveyors of general insurance 20%
company
25 Any service for making connectivity between oil 5.25%
or gas field and its export point
26 Any payments against any services not mentioned 20%
above
27 Any other payments. 30%
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.
(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 within 30 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.
(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.

57. Consequences of failure to deduct, collect, etc.-

(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;
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 personally 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.
(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 2% per month on the
amount as mentioned in sub-clauses (i), (ii) and (iii) of clause (c) 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 (i) 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.
Explanation.- The period for which the additional amount is calculated
shall not exceed 24 months.
(3) The Deputy Commissioner of Taxes shall take necessary action for the
realisation of the amount 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.
(4) 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.

57A. Consequences of the issuance of certificate of tax deduction or collection

without actual deduction, collection or payment.-
(1) Where a person issues a certificate of deduction or collection of tax at source
without actual deduction or collection or payment to the credit of the
Government, without prejudice to any other consequences to which he may be
liable, the person shall be personally liable to pay the amount not being
deducted, collected or paid to the credit of the Government.
(2) The Deputy Commissioner of Taxes shall take necessary action for the
collection of amount mentioned in sub-section (1) from the person so
personally liable after giving the person a reasonable opportunity of being
heard.

58. Certificate of deduction, etc., of tax.-

(1) Every person who has deducted or collected any tax under this Chapter shall
furnish, to the person from whom such deduction or collection has been made,
a certificate of tax deduction or collection specifying therein-
(a) the name and the Taxpayer‘s Identification Number, if any, of the person
from whom tax has been deducted or collected;
(b) the amount of deduction or collection of taxes;
 (c) section or sections under which tax has been deducted or collected;
(d) the particulars of the payment of deducted or collected amount to the
credit of the Government; and
(e) such other particulars as may be prescribed.
(2) The Board may, by notification in the official Gazette, -
(a) specify the cases in which the certificate of tax deduction or collection
shall be generated or furnished electronically or in any other machine
readable or computer readable media;
(b) specify the manner in which such electronic, machine readable or
computer readable certificate shall be generated or furnished.
(3) Every person who has deducted or collected any tax under this Chapter shall
furnish a statement to such income tax authority and in such manner as may
be prescribed.

59. Payment to Government of tax deducted.-

All sums deducted or collected as tax under the provisions of this Chapter shall be
paid within the prescribed time by the person making the deduction or collection to
the credit of the Government or as the Board may direct.

60. Unauthorized deduction prohibited.-

Save as provided in this Ordinance, no person shall charge, withhold, deduct or
collect any sum, directly or indirectly, as tax, and, where any sum is so charged,
withheld, deducted or collected, it shall be paid in the manner provided in section
59.

61. Power to levy tax without prejudice to other mode of recovery.-

The power to levy tax by deduction or collection under this Chapter shall be without
prejudice to any other mode of recovery.

62. Credit of tax deducted or collected at source.-

Any deduction or collection of tax made and paid to the account of the Government
in accordance with the provisions of this Chapter shall be treated as a payment of
tax on behalf of the person from whose income the deduction or collection was
made, or of the owner of the security or of the shareholder, as the case may be, and
credit shall be given to him therefor on the production of the certificate furnished,
along with the proof of payment of such tax to the account of the Government,
under section 58 in the assessment, if any, made for the following year under this
 Ordinance:
Provided that, if such person or such owner obtains, in accordance with the
provisions of this Ordinance, a refund of any portion of the tax so deducted, no
credit shall be given for the amount of such refund:
Provided further that where such person or owner is a person whose income is
included under the provisions of section 43 (4) or (5) or section 104 or 105 or
106 in the total income of another person, such other person shall be deemed to be
the person or owner on whose behalf payment has been made and to whom credit
shall be given in the assessment for the following year.

63. Payment of tax where no deduction is made.-

The tax under this Ordinance shall be payable by the assessee direct -
(a) in any case where tax has not been deducted or collected as required by, and
in accordance with, the provisions of this Chapter ;
(b) in any case where the amount deducted or collected is found, after regular
assessment, to be less than the tax due from the assessee, to the extent of
deficiency ; and
(c) in the case of income in respect of which no provision has been made for
deduction or collection of tax under the provisions of this Chapter.

64. Advance payment of tax.-

(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, exceeds 6 lakh.
(2) Nothing in sub-section (1) shall apply to any income classifiable under the
heads "Agricultural income" and "Capital gains" excluding gain from transfer
of share of a company listed with a stock exchange.

65. Computation of advance tax.-

(1) The minimum amount of advance tax payable by an assessee in a financial
year shall be the amount equal to the tax payable on his total income of the
latest income year as assessed on regular basis or provisionally, as the case
may be, as reduced by the amount of tax required to be deducted or collected
at source in accordance with the preceding provisions of this Chapter.
 (2) The tax payable under sub-section (1) shall be calculated at the rates in force
in respect of the financial year referred to therein.

66. Instalments of advance tax.-

Advance tax shall be payable in four equal installments on the fifteenth day of
September, December, March and June of the financial year for which the tax is
payable:
Provided that, if before the fifteenth day of May of the year, an assessment of the
assessee is completed in respect of an income year, later than that on the basis of
which the tax was computed under section 65, the assessee shall pay in one
instalment on the specified date or in equal instalments on the specified dates, if
more than one falling after the date of the said assessment, the tax computed on the
revised basis as reduced by the amount, if any, paid in accordance with the original
computation.

67. Estimate of advance tax.-

(1) Where, an assessee who is required to pay advance tax under section 64
estimates, at any time before the last instalment is due, that the tax payable by
him for the relevant assessment year is likely to be less than the amount of tax
as computed under section 65, he may, after giving to the Deputy
Commissioner of Taxes an estimate of the tax payable by him, pay such
estimated amount of advance tax, as reduced by the amount, if any, already
paid, in equal instalments on the due dates of payment under section 66.
(2) The assessee may furnish a revised estimate of such amount at any time
before any of such instalments become payable and may thereby adjust any
excess or deficiency, by reference to the amount already paid by him under
this section, in any subsequent instalment or instalments payable in such
financial year.

68. Advance payment of tax by new assessees.-

Any person who has not previously been assessed by way of regular assessment
under this Ordinance or the Income-tax Act, 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 6 lakh, 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).
68A. Advance tax on certain income.-
(1) A manufacturer of cigarette shall pay advance tax at the rate of 3% on net sale
price in every month.
(2) The advance tax paid under sub-section (1) shall be adjustable against the
quarterly installments of advance tax payable under section 66.
Explanation.- In this section, ―net sale‖ shall be A- B, where, A is the gross sale
and B is the value added tax and the supplementary duty, if any, on such gross sale.

68B. Advance tax for the owners of private motor car.-

(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-

Serial Amount of tax

Type and engine capacity of motor car
No. (in taka)
1 A car or a Jeep, not exceeding 1500cc 25,000/-
2 A car or a Jeep, exceeding 1500cc but not 50,000/-
exceeding 2000cc
3 A car or a Jeep, exceeding 2000cc but not 75,000/-
exceeding 2500cc
4 A car or a Jeep, exceeding 2500cc but not 1,25,000/-
exceeding 3000cc
5 A car or a Jeep, exceeding 3000cc but not 1,50,000/-
exceeding 3500cc
6 A car or a Jeep, exceeding 3500cc 2,00,000/-
7 A microbus 30,000/-
Provided that the rate of tax shall be 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.
(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-
(a) "motor car" means a motor car as defined in clause (25) of section 2 of
the Motor Vehicles Ordinance 1983 (LV of 1983) and includes a jeep
and a microbus;
(b) income from regular sources means income from any source other
than the sources mentioned in sub-section (2) of section 82C.

69. Failure to pay instalments of advance tax.-

Where, an assessee who is required to pay advance tax fails to pay any instalment of
such tax, as originally computed or, as the case may be, estimated, on the due date,
he shall be deemed to be an assessee in default in respect of such instalment.

70. Levy of interest for failure to pay advance tax.-

Where, in respect of an assessee who is required to pay advance tax, it is found in
the course of regular assessment that advance tax has not been paid in accordance
with the provisions of this Chapter, there shall be added, without prejudice to the
consequences of the assessee being in default under section 69, to the tax as
determined on the basis of such assessment, simple interest thereon calculated at the
 rate and for the period specified in section 73.

71. Credit of advance tax.-

Any sum, other than a penalty or interest, paid by or recovered from an assessee as
advance tax, shall be treated as a payment of tax in respect of the income of the
period which would be the income year for an assessment for the year next
following the year in which it was payable and shall be given credit for in the
assessment of tax payable by the assessee.

72. Interest payable by Government on excess payment of advance tax.-

(1) The Government shall pay simple interest at 10% per annum on the amount
by which the aggregate sum of advance tax paid during a financial year
exceeds the amount of tax payable by him as determined on regular
assessment.
(2) The period for which interest under sub-section (1) shall be payable shall be
the period from the first day of July of the year of assessment to the date of
regular assessment in respect of the income of that year or a period of two
years from the said first day of July, whichever is shorter.

73. Interest payable by the assessee on deficiency in payment of advance tax.-

(1) Where in any financial year advance tax paid by an assessee together with the
tax deducted or collected at source, if any, under this Chapter is less than 75%
of the amount of tax payable by him as determined on regular assessment, the
assessee shall pay, in addition to the balance of tax payable by him, simple
interest at the rate of 10% per annum on the amount by which the tax so paid,
deducted and collected falls short of the 75% of the assessed tax:
Provided that the rate of interest shall be 50% higher if the return is not
filed on or before the Tax Day.
(2) The period for which the interest under sub-section (1) is payable shall be the
period from the first day of July next following the financial year in which the
advance tax was applicable to the date of regular assessment in respect of the
income of that year or a period of two years from the said first day of July,
whichever is shorter.
(3) Notwithstanding anything contained in sub-sections (1) and (2), where-
(a) tax is paid under section 74; or
(b) provisional assessment has been made under section 81 but regular
assessment has not been made, the simple interest shall be calculated in
accordance with the following provisions-
 (i) up to the date or dates on which tax under section 74 or as
provisionally assessed, was paid;
(ii) thereafter, such simple interest shall be calculated on the amount
by which the tax so paid falls short of the said 75% of the assessed
tax.
(4) Where as a result of appeal, revision or reference the amount on which interest
was payable under sub-section (1) has been reduced, the amount of interest
payable shall be reduced accordingly and the excess interest paid, if any, shall
be refunded together with the amount of tax that is refundable.
Explanation.- For the removal of doubts, it is hereby declared that in this section,
―regular assessment‖ includes the acceptance of revised return or the assessment
made as a result of the audit under section 82BB(7).

73A. Delay Interest for not filing return on or before the Tax Day.-
(1) Where an assessee is required to file a return of income for an assessment year
under section 75 and fails to file the same before the expiry of the Tax Day,
the assessee shall, without prejudice to any other consequences to which he
may be liable to, pay a delay interest at the rate of 2% per month on the
difference between the tax assessed on total income for the assessment year
and the tax paid in advance for the assessment year including the tax deducted
or collected at source;
Explanation.- In this section, the expression ―tax assessed on total income‖
as mentioned in sub-section (1) means-
(i) where the return is subject to assessment under section 82BB, if tax
under any other sub-section of section 82BB is higher than the tax under
sub-section (1) of that section, the higher tax;
(ii) where the return is not subject to assessment under section 82BB, tax on
total income as assessed by the Deputy Commissioner of Taxes.
(2) The delay interest under sub-section (1) shall be calculated for a period from
the first day immediately following the Tax Day to-
(a) where the return is filed, the date of filing the return;
(b) where the return is not filed, the date of regular assessment:
Provided that the period for calculating delay interest under this section
shall not exceed one year:
Provided further that the delay interest under this section shall not be payable
by an assessee for whom the proviso of clause (c) of sub-section (2) of
section 75 applies.
74. Payment of tax on the basis of return.-
(1) Every person who is required to file a return under section 75, 77, 78, 89(2),
91(3) or 93(1) shall, on or before the date on which he files the return, pay the
amount of tax payable by him on the basis of such return or as per provision of
section 16CCC, whichever is higher, as reduced by the amount of any tax
deducted from his income or paid by him in accordance with the provisions of
this Chapter.
(2) Any amount paid under sub-section (1) shall be deemed to have been paid
towards the sum as may be determined to be payable by him after regular
assessment.
(3) A person who, without reasonable cause, fails to pay the tax as required by
sub-section (1) shall be deemed to be an assessee in default.
 CHAPTER VIII
RETURN AN456D STATEMENT

75. Return of income.-

(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;
(ix) an employee holding an executive or a management position in a
business or profession; or
(x) a Micro Credit Organisation having licence with Micro
CreditRegulatory 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 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; 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; or
(x) participates in a shared economic activities byproviding motor
vehicle, space, accommodationor any other assets; or
(xi) owns any licensed arms; or
(f) if such person is required to have Twelve-Digit Taxpayer‘s Identification
Number 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.
(2) A return of income under sub-section (1) shall not be mandatory for-
(i) an educational institution receiving government benefits under
Monthly Payment Order (MPO); or
(ii) a public university; or
(iii) a fund; or
(iiia) a non-resident, not being a non-resident individual, having no
permanent establishment in Bangladesh; or
(iiib) a non-resident individual having no fixed base in Bangladesh; or
(iv) any class of persons which the Board, by order in official gazette,
 exempt from filing the return; or
(v) an individual assessee who has no taxable income but who is required
to have Twelve-Digit Taxpayer‘s Identification Number under section
184A for selling a land; or
(vi) an individual assessee who has no taxable income but who is required
to have Twelve-Digit Taxpayer‘s Identification Number under section
184A for obtaining a credit card.
(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
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 3 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 2
months from the date so specified and he may further extend the date up to 2
months with the approval of the Inspecting Joint Commissioner.

75A. Return of withholding tax.-

(1) Every person, being a company or a co-operative society or a non-government
organisation registered with NGO Affairs Bureau, a Micro Credit Organisation
having licence with Micro Credit Regulatory Authority, a university, a private
hospital, a clinic, a diagnostic centre, 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 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 15 days from the date so specified.
(3) The Board may, by notification in the official Gazette,-
(a) specify 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. Audit of the return of withholding tax.-

(1) The Deputy Commissioner of Taxes, with the approval of the 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.

75B. Obligation to furnish Annual Information Return.-

(1) Government may, by notification in the official gazette, require any person or
group of persons responsible for registering or maintaining books of account
or other documents containing a record of any specified financial transaction,
under any law for the time being in force, to furnish an Annual Information
Return, in respect of such specified financial transaction.
 (2) The Annual Information Return referred to in sub-section (1) shall be
furnished to the Board or any other income tax authority or agency, in such
form, manner and within such time as may be prescribed.

75C. Concurrent jurisdiction.-

Board may, by general or a special order in writing, direct that in respect of all or
any proceedings relating to receiving of return of income and issuance of
acknowledgement thereof in accordance with the provisions of section 75, 77, 78,
89(2), 91(3) or 93(1), the powers and functions of the Deputy Commissioner of
Taxes shall be concurrently exercised by such other authority as may be specified
by the Board.

76. Certificate in place of return.-

[deleted]

77. Notice for filing return.-

(1) The Deputy Commissioner of Taxes may, at any time after expiry of the date
specified in section 75, by a notice in writing, require-
(a) any person, other than a company, to file a return of his total income as
provided in that section if, in the opinion of the Deputy Commissioner of
Taxes the total income of such person was, during the income year, of
such amount as to render liable to tax;
(b) any company to file a return of its total income, if it is not filed.
(2) The return under sub-section (1) shall be filed within such period, not being
less than 21 days, as may be specified in the notice or within such extended
period as the Deputy Commissioner of Taxes may allow.

78. Filing of revised return.-

Any person who has not filed a return as required by section 75 or 77 or who,
having filed return, discovers any omission or incorrect statement therein, may,
without prejudice to any liability which he may have incurred on this account, file a
return or a revised return, as the case may be, at any time before the assessment is
made.

79. Production of accounts and documents, etc.

(1) The Deputy Commissioner of Taxes may by notice in writing require an
assessee, who has filed a return under Chapter VIII or to whom a notice has
 been issued to file a return, to produce or cause to be produced such accounts,
statements, documents, data or electronic records, not being earlier than three
years prior to the income year, as he may consider necessary for the purpose
of audit or assessment under this Ordinance.
(2) The Deputy Commissioner of Taxes may specify in the notice that the
accounts, statements, documents, data or electronic records or any part thereof
shall be produced in such electronic form or by such electronic media as may
be mentioned in the notice.
(3) The accounts, statements, documents, data or electronic records shall be
produced on or before the date as may be specified in the notice.
(4) In this section-
(a) ―return‖ includes a revised return or an amended return;
―data‖ includes ―উপোত্ত‖ as defined in clause (10) of section 2 of িথ্ ও
কযোগোচযোগ প্রযনয ি আইি, ২০০৬;

(b) ―electronic record‖ and ―electronic form‖ shall have the same meaning
as assigned to ―ইচ঱@ট্রনি@ কর@ি‖ি and ―ইচ঱@ট্রনি@ নবন্যোস‖ respectively in
clauses (7) and (5) of section 2 of িথ্ ও কযোগোচযোগ প্রযনয ি আইি, ২০০৬।

80. Statements of assets, liabilities and life style.-

(1) Every person, being an individual assessee, shall furnish statements in the
forms and manners as prescribed in respect of the total assets, liabilities and
expenses 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:
Provided any person, being an individual assessee, who is not required to
submit the statement mentioned in this sub-section may voluntarily submit
such statement.
(2) Every person, being an individual assessee, shall furnish statements in the
forms and manners as prescribed, a statement of expenses relating to the life
style of such expenses:
Provided that an individual, not being a shareholder director of a company,
having income from salary or from business or profession may opt not to
submit such statement if his total income does not exceed four lakh taka in the
 income year.
(3) Where any statement as mentioned in sub-section (1) 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

81. Provisional assessment.-

(1) The Deputy Commissioner of Taxes may, at any time after the first day of July
of the year for which the assessment is to be made, proceed to make, in a
summary manner, a provisional assessment of the tax payable by the assessee
on the basis of the return and the accounts and documents, if any,
accompanying it and where no return has been filed, on the basis of the last
assessment including an assessment under this section.
(2) In making a provisional assessment under this section, the Deputy
Commissioner of Taxes shall-
(a) rectify any arithmetical errors in the return, accounts and documents;
(b) allow, on the basis of the information available from the return, accounts
and documents, such allowances as are admissible under the Third
Schedule and any loss carried forward under section 38 or 39 or 41.
(3) For the purposes of payment and recovery, the tax as determined to be payable
upon provisional assessment shall have effect as if it were determined upon
regular assessment.
(4) The tax paid or deemed to have been paid under Chapter VII, in respect of any
income provisionally assessed under sub-section (1), shall be deemed to have
been paid towards the provisional assessment.
(5) Any amount paid or deemed to have been paid towards provisional assessment
under this section shall be deemed to have been paid towards regular
assessment ; and the amount paid or deemed to have been paid towards
provisional assessment in excess of the amount found payable after regular
assessment shall be refunded to the assessee.
(6) Nothing done or suffered by reason or in consequence of any provisional
assessment made under this section shall prejudice the determination on merit
of any issue which may arise in the course of regular assessment.
(7) There shall be no right of appeal against a provisional assessment under this
section.

82. Assessment on correct return.-

Where a return or a revised return has been filed under Chapter VIII and the Deputy
Commissioner of Taxes is satisfied, without requiring the presence of the assessee
or the production of any evidence, that the return is correct and complete, he shall
assess the total income of the assessee and determine the tax payable by him on the
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

basis of such return and communicate the assessment order to the assessee within 30
days next following :
Provided that -
(a) such return shall be filed on or before the date specified in sub-section (5)
of section 75;
(b) the amount of tax payable shall be paid on or before the date on which
the return is filed;
(c) such return does not show any loss or lesser income than the last assessed
income, or assessment on the basis of such return does not result in refund;
and
(d) such return shall mention twelve-digit Taxpayer's Identification Number.

82A. Assessment under simplified procedure.-

Where, an assessee, other than a public limited company as defined in the
Companies Act, 1913 or ক@োম্পোনি আইি, ১৯৯৪, who has previously been assessed for any
assessment year ended on or before the thirtieth day of June, 1995, files a return
showing income for the income year relevant to the assessment year commencing on
or after the first day of July, 1995 and ending on or before the thirtieth day of June,
1997 and the income shown in such return is higher by not less than 10% over the
last assessed income and has also increased by at least a further sum of 10% for each
preceding assessment year in respect of which the assessment is pending, the return
filed by the assessee shall be deemed to be correct and complete, and the Deputy
Commissioner of Taxes shall assess the total income of the assessee on the basis of
such return and determine the tax payable by him on the basis of such assessment,
and communicate the assessment order to the assessee within 30 days next
following, provided-

(a) he has, at the time of filing such return, made payment of the tax on the basis
of the return, or Tk. 1,200, whichever is higher, and the assessment on the
basis of such return shall not result in any refund;
(b) the net accretion of his wealth, if he is required to submit statement of assets
and liabilities under clause (c) of sub-section (3) of section 75, along with his
disclosed family expenses and taxes paid during the year, shall not exceed the
income disclosed for the year and the income or receipt, if any, exempted from
tax; and
(c) such return contains twelve-digit Taxpayer's Identification Number (TIN).

82BB. Universal Self Assessment.-

(1) Where an assesseefiles a return of income mentioning twelve-digit
Taxpayer'sIdentification Number (TIN) in compliance with the conditions

asadtax@gmail.com Page
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andwithin the time specified in section 75 and pays tax in accordancewith the
provision of section 74, he shall be issued by the DeputyCommissioner of
Taxes or any other official authorised by him, anacknowledgment of receipt
of the return and such acknowledgmentshall be deemed to be an order of
assessment of the DeputyCommissioner of Taxes.
(2) The Deputy Commissioner of Taxes shall process the returnfiled under sub-
section (1) in the following manner, namely:-
(a) income shall be computed after making the adjustmentsin respect of any
arithmetical error in the return or anyincorrect claim which is apparent
from the existence ofany information in the return or in any statement
ordocument filed therewith;
(b) tax and any other amount payable under this Ordinanceshall be
computed on the basis of the income computedunder clause (a); and
(c) the sum, payable by or refundable to the assessee, shallbe determined
after giving credit of the sum paid byway of advance tax including the
tax paid at source andthe tax paid under this Ordinance.
(b) send, after processing such return in accordance with the provision of
clause (a), a notice of demand along with an intimation to the assessee
specifying the income so computed, the liability to pay tax on such
income, the amount of tax credit allowed, the sum determined to be
payable by, or refundable to, him and such other particulars within 30
days of such computation as may be specified:
(3) Where the process of return results in a difference in theamount of income,
tax or other material figures than the amountmentioned in the return filed
under sub-section (1), the DeputyCommissioner of Taxes shall serve a notice
to the assessee-
(a) communicating him about the difference and enclosingwith the notice a
sheet of computation of income, tax,refund or other related particulars
that resulted from theprocess of return;
(b) giving him an opportunity to explain his position inwriting within the
time specified in the notice where theprocess of return results in
additional liability or inreduction 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, addressingthe difference mentioned in the
notice; and
(ii) pay, within the time specified in the notice, the taxand any other
amount that becomes payable as aresult of the process;
(4) Where a notice under sub-section (3) is served, the DeputyCommissioner of

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 Taxes shall-
(a) send a letter of acceptance of amended return within90 days where all of
the following conditions arefulfilled-
(i) an amended return is filed in accordance with theprovision of
clause (c) of sub-section (3);
(ii) any tax or any other amount, payable under thisOrdinance as a
result of the process, has been paidon or before the submission of
the amendedreturn; and
(iii) the difference mentioned in sub-section (3) hasbeen duly resolved
in the return;
(b) serve, after the expiry of the date of response of theassessee as
mentioned in the notice under sub-section(3), a notice of demand along
with a sheet ofcomputation of income, tax, refund or other
relatedparticulars where any of the conditions mentioned inclause (a) is
not fulfilled:
Provided that a notice of demand shall be served within 9months
from the date of serving notice under sub-section (3).
(5) Where, after filing the return under sub-section (1), theassessee finds that
owing to any unintentional mistake the tax orany other amount payable under
this Ordinance has been paid shortor computed short by reasons of
underreporting of income orover reporting of rebate, exemption or credit or
for any otherreasons, he may file to the Deputy Commissioner of Taxes an
amended return-
(a) attaching with the amended return a written statementmentioning 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 orcomputed
short; and
(ii) an interest at the rate of 2% per monthon the amount mentioned in
sub-clause (i);
Provided that no amended return shall be allowed-
(a) after the expiry of 180 days from thedate of filing the original
return under sub-section (1); or
(b) after the original return has been selected for audit undersub-section
(7).
(6) No notice under sub-section (3) shall be served after theexpiry of 12 months
from the date of the submission of returnunder sub-section (1) or amended
return under sub-section (5), asthe case may be.
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(7) The Board or any authority subordinate to the Board, if soauthorised by the
Board in this behalf, may select, in the manner tobe determined by the Board,
a number of returns filed under subsection(1) or of amended returns accepted
under clause (a) of subsection(4) or of amended returns allowed under sub-
section (5),and refer the same to the Deputy Commissioner of Taxes for
thepurpose of audit:
Provided that a return filed or an amended return accepted orallowed
under this section shall not be selected for audit where-
(a) such return or amended return except the return of income of a
financial institution shows at least 15% higher total income than the
total incomeassessed in the immediately preceding assessment year;and
(b) such return or amended return-
(i) is accompanied by corroborative evidence in supportof
income exempted from tax;
(ii) is accompanied by a copy of bank statement oraccount statement,
as the case may be, in support ofany sum or aggregate of sums of
loan exceeding taka5 lakh taken other than from a bank or
financialinstitution;
(iii) does not show the receipt of gift during the year;
(iv) does not show any income which is subject to taxexemption or
reduced tax rate under section 44; or
(v) does not show or result any refund.
(c) the assessee has complied with the provisions of sections 75A, 108
and 108A.
(8) Where after conducting the audit the Deputy Commissionerof Taxes is
satisfied that the affairs of the assessee has not beenduly reflected in the
return or the amended return or in statementsand documents submitted
therewith, he shall communicate the findings of the audit to the assessee and
serve a notice requiringhim to file a revised return reflecting the findings of
the audit, andpay tax and any other applicable amount on the basis of the
revisedreturn on or before the filing of such revised return.
(9) Where a revised return is filed and the DeputyCommissioner of Taxes is
satisfied that the findings of audit hasbeen duly reflected in the revised return
and the tax and any otherapplicable amount have been fully paid in
compliance with theprovision of sub-section (8), he may accept the revised
return andissue a letter of acceptance to the assessee.
(10) Where after the service of notice under sub-section (8) norevised return is
filed or the revised return that has been filed doesnot reflect the findings of
the audit, or tax or other applicableamount has not been paid in compliance
with the provisions ofsub-section (8), the Deputy Commissioner of Taxes

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shall proceedto make assessment under section 83 or 84, whichever

isapplicable.
(11) In the case of a return submitted under sub-section (1), noquestion as to the
source of initial capital of the business orprofession of a new assessee shall be
raised, if the assessee-
(a) shows income which exceeds the tax exemption thresholdand which is
not less than 20% of theinitial capital invested in the business or
profession;
(b) pays tax on such income at regular tax rate along with anyother
applicable amount on or before filing of return; and
(c) mentions in writing that the return falls under this subsection.
(12) In the case of a return for which the provision of subsection(11) applies, the
minimum amount of capital maintained inthe business or profession at the
end of the income year and foursubsequent income years shall be equal to the
initial capital; and anyamount of shortfall of the capital in any income year
shall be deemed as "income from business or profession" for that income year
andshall be included in total income of the assessee.
(13) For the purpose of this section-
(a) a return includes any statement required to be filedunder section 80;
(b) ―an incorrect claim which is apparent from theexistence of any
information in the return or in anystatement or document filed
therewith‖ shall mean aclaim, on the basis of an entry, in the return or in
thestatement or document submitted with the return-
(i) of an item, which is inconsistent with anotherentry of the same, or
some other item, in suchreturn, statement or document; or
(ii) in respect of a deduction, exemption, rebate orcredit, where such
deduction, exemption,rebate or credit exceeds the specified
statutorylimit which may have been expressed asmonetary
amount, percentage, ratio orfraction;
(c) ―regular tax rate‖ means the rate of tax that would beapplicable if the
tax exemption or the reduced ratewere not granted;
(d) in calculating 15% higher totalincome, the income from the sources that
are commonbetween the assessment years for which the returnunder
sub-section (1) has been filed and theimmediately preceding assessment
year shall beconsidered.

82C. Minimum Tax. -

(1) Notwithstanding anything contained in any other provisions of this

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 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,Sl. No. 1, 2 and 13A of the Table of subsection
(1) of section 52AA, 52AAA, 52B, 52C, 52D, 52JJ, 52N, 52O, 52R,
53, 53AA, 53B, 53BB, 53BBB, 53BBBB, 53C, 53CCC, 53DDD, 53E,
53EE, 53F, 53FF, 53G, 53GG, 53H, 53M, 53N, 53P 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 sub-contractor 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, except an industrial undertaking
engaged in producing cement, iron or iron products, ferro alloy
products, 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 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-

Sl. Sources of
Amount that will be Rate or amount
income as
No. taken as income of tax
mentioned in
(1) (2) (3) (4)
1 section 52C amount of compensation mentioned in
as mentioned in section section 52C
52C
2 section 52D amount of interest as as mentioned in
mentioned in section section 52D
52D
3 section amount of export cash as mentioned in
53DDD subsidy as mentioned in section
section 53DDD 53DDD
4 Section 53F(1) amount of interest as as mentioned in
(c) and (2) mentioned in section section 53F
53F
5 section 53H deed value as mentioned as mentioned in
in section 53H section 53H less
cost of acquisition
and the rule made
thereunder
6 section any sum paid by real As mentioned in
estate developer to land section 53P.
53P
owner
(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).
(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
(iii) 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—
Sl.No Classes of assessee Rate of minimum tax
1 Manufacturer of 1% of the gross receipts
cigarette,bidi, chewing
tobacco,smokeless tobacco
or anyother tobacco
products
2 Mobile phone operator 2% of the gross receipts

3 Individual other than 0.50% of the gross receipts

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
4 Any other cases 0.60% of the gross receipts:
Provided that such rate of tax shall be zero point onezero percent
(0.10%) of such receipts for an industrialundertaking engaged in
manufacturing of goods for the firstthree income years since
commencement of its commercialproduction.
(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 a
rate equal to (A/B) xC, where-
A= amount of tax under the reduced rate or under the tax
benefit that the source or person enjoys,
B= amount of regular tax if there were no such exemption or
reduced rate,
C= rate of minimum tax as mentioned in clause (a);
(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.
(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.
(9) In this section-
(a) ―regular source‖ means any source for which minimum tax is not
applicable under sub-section (2);
(b) ―regular rate‖ means the rate of tax, that would be applicable if the tax
exemption or the reduced rate were not granted.
 (c) ―regular tax rate‖ means the rate of tax, that would be applicable if the
tax exemption or the reduced rate were not granted.

82D. Spot assessment.-

Notwithstanding anything contained in this Ordinance, where an assessee, not being
a company, who has not previously been assessed under this Ordinance, carrying on
any business or profession in any shopping centre or commercial market or having a
small establishment, the Deputy Commissioner of Taxes may fix the tax payable by
him in such manner and at such rate as may be prescribed and the receipt obtained
for payment of such tax shall be deemed to be an order of assessment under section
82.

83. Assessment after hearing.-

(1) Where a return or revised return has been filed under Chapter VIII and the
Deputy Commissioner of Taxes is not satisfied without requiring the presence
of the person who filed the return or the production of evidence that the return
is correct and complete, he shall serve on such person a notice requiring him,
on a date to be therein specified, to appear before the Deputy Commissioner
of Taxes, or to produce or cause to be produced before him or at his office,
any evidence in support of the return.
(2) The Deputy Commissioner of Taxes shall, after hearing the person appearing,
or considering the evidence produced in pursuance of the notice under sub-
section (1) and also considering such other evidence, if any, as he may require
on specified points, by an order in writing assess, within 30 days after the
completion of the hearing or consideration, as the case may be, the total
income of the assessee and determine the sum payable by him on the basis of
such assessment, and communicate the order to the assessee within 30 days
next following.

83AAA. Assessment on the basis of report of a chartered accountant. -

(1) Where a return or revised return is filed under Chapter VIII by an assessee
being a company and the Board has reasonable cause to believe that the return
or revised return is incorrect or incomplete, the Board may appoint a
registered chartered accountant to examine the accounts of that assessee.
(2) The chartered accountant appointed under sub-section (1) shall exercise the
powers and functions of the Deputy Commissioner of Taxes as referred to in
section 79 and clauses (a), (b), (c), (d) and (e) of section 113.
(3) The chartered accountant, after examination of the accounts of that assessee,
shall submit a report in writing to the Board along with findings within a time
 as may be specified by the Board.
(4) On receipt of the report referred to in sub-section (3), the Board shall
forthwith forward the report to the concerned Deputy Commissioner of Taxes
for consideration.
(5) On receipt of the report under sub-section (4), the Deputy Commissioner of
Taxes shall serve a notice upon the assessee under sub-section (1) of section
83.
(6) The Deputy Commissioner of Taxes shall, after hearing the person appearing
and considering the evidences produced including the findings stated in the
report received under sub-section (5) and also considering the other
evidences, by an order in writing, assess within 30 days after the completion
of hearing or consideration, as the case may be, the total income of an
assessee and shall determine the sum payable by the assessee on the basis of
such assessment, and communicate the said order to the assessee within 30
days from the date of such order.

84. Best judgment assessment.-

(1) Where any person fails -
(a) to file the return required by a notice under section 77 and has not filed
a return or revised return under section 78; or
(b) to comply with the requirements of a notice under section 79 or 80; or
(c) to comply with the requirements of a notice under section 83(1);
the Deputy Commissioner of Taxes shall, by an order in writing, assess the
total income of the assessee to the best of his judgment and determine the sum
payable by the assessee on the basis of such assessment and communicate
such order to the assessee within 30 days next following.
(2) Where in the opinion of the Board a best judgment assessment made by a
Deputy Commissioner of Taxes under sub-section (1) shows lack of proper
evaluation of legal and factual aspects of the case which has resulted in an
arbitrary and injudicious assessment, the action leading to such assessment
made by the said Deputy Commissioner of Taxes shall be construed as
misconduct.

85. Special provisions regarding assessment of firms.-

(1) Notwithstanding anything contained in this Ordinance, where the assessee is a
firm and the total income of the firm has been assessed under sections 82, 83,
or 84, as the case may be,-
(a) [deleted]
 (b) in the case of a firm, the tax payable by the firm shall be determined on
the basis of the total income of the firm.
(2) Whenever any determination is made in accordance with the provisions of
sub-section (1), the Deputy Commissioner of Taxes shall, by an order in
writing, notify to the firm-
(a) the amount of tax payable by it, if any;
(b) the amount of the total income on which the determination has been
based; and
(c) the apportionment of the amount of income between the several
partners.

86. Assessment in case of change in the constitution of a firm.-

(1) Where, at the time of assessment of a firm, it is found that a change has
occurred in the constitution of the firm, the assessment shall be made on the
firm as constituted at the time of making the assessment:
Provided that-
(a) the income of the year shall, for the purpose of inclusion in the total
income of the partners, be apportioned between the partners who, in
such income year, were entitled to receive the same; and
(b) when the tax assessed upon a partner cannot be recovered from him, it
shall be recovered from the firm as constituted at the time of making the
assessment.
(2) For the purposes of this section, there is a change in the constitution of a firm-
(a) where all the partners continue with a change in their respective shares
or in the shares of some of them, or
(b) where one or more persons who were partners continue to be so with a
change by cessation of one or more partners or addition of one or more
new partners.

87. Assessment in case of constitution of new successor firm.-

Where, at the time of assessment of a firm, it is found that a new firm has been
constituted to succeed the firm to which the assessment relates and it cannot be
covered by section 86, separate assessments shall be made on the predecessor firm
and the successor firm in accordance with the provisions of section 88 relating to
assessment in case of succession to business.

88. Assessment in case of succession to business otherwise than on death.-

 (1) Where, a person, carrying on any business or profession (in this section,
referred to as the predecessor), has been succeeded therein otherwise than on
death by another person (in this section, referred to as the successor) in any
income year, and the successor continues to carry on that business or
profession,-
(a) the predecessor shall be assessed, in respect of the income of the income
year in which the succession took place, for the period up to the date of
succession, and
(b) the successor shall be assessed, in respect of the income of the income
year, for the period after the date of succession.
(2) Notwithstanding anything contained in sub-section (1), where the predecessor
cannot be found, the assessment of the income year in which the succession
took place up to the date of succession and of the income year or years
preceding that year shall be made on the successor in the like manner and to
the same extent as it would have been made on the predecessor ; and the
provisions of this Ordinance shall, so far as may be, apply accordingly.
(3) Where any sum payable under this section in respect of the income of a
business or profession cannot be recovered from the predecessor, the Deputy
Commissioner of Taxes shall record a finding to that effect, and thereafter the
sum payable by the predecessor shall be payable by, and recoverable from,
the successor who shall be entitled to recover it from the predecessor.

89. Assessment in case of discontinued business.-

(1) Without prejudice to the provision of section 87, where any business or
profession is discontinued in any financial year, and assessment may be made
in that year, notwithstanding anything contained in section 16, on the basis of
the total income of the period between the end of the income year and the
date of such discontinuance in addition to the assessment, if any, made on the
basis of the income year.
(2) Any person discontinuing any business or profession in any financial year
shall give to the Deputy Commissioner of Taxes a notice of such
discontinuance within 15 days thereof; and such notice shall be accompanied
by a return of total income in respect of the period between the end of the
income year and the
date of such discontinuance and that financial year shall be deemed to be the
assessment year in respect of the income of the said period.
(3) Where, a person fails to give the notice required by sub-section (2), the
Deputy Commissioner of Taxes may direct that a sum shall be recovered from
him by way of penalty not exceeding the amount of tax subsequently assessed
on him in respect of any income from the business or profession up to the
 date of its discontinuance.
(4) Where, an assessment is to be made under sub-section (1), the Deputy
Commissioner of Taxes may serve-
(a) on the person whose income is to be assessed;
(b) in the case of a firm, on the person who was a partner of the firm at the
time of discontinuance of the business or profession; and
(c) in the case of a company, on the principal officer of the company;
a notice to furnish within such time, not being less than 7 days, a return of his
total income giving such particulars and information as are required to be
furnished with a return to be filed under section 75 along with such other
particulars, records and documents as may be specified in the notice.
(5) The provisions of this Ordinance shall, so far as may be, apply to a notice
under sub-section (4) for the purpose of assessment of tax as if it were a
notice under section 77.

90. Assessment in case of partition of a Hindu undivided family.-

(1) A Hindu family hitherto assessed as a Hindu undivided family shall be
deemed, for the purposes of this Ordinance, to continue to be a Hindu
undivided family except where, and in so far as, a finding of partition has
been given under this section in respect of that family.
(2) Where, at the time of an assessment of a Hindu undivided family, it is
claimed by any member thereof that a partition has taken place amongst the
members of the family, the Deputy Commissioner of Taxes shall make an
enquiry thereinto after giving notice to all the members of the family.
(3) On the completion of the enquiry, the Deputy Commission of Taxes shall
record a finding as to whether there has been a partition of the joint family
property, and, if there has been such a partition, the date on which it has taken
place.
(4) In the case of a finding under sub-section (3) that the partition of the
undivided family took place after the expiry of the income year, the total
income of the income year of the undivided family shall be assessed as if no
partition has taken place ; and each member or group of members of the
family shall, in addition to any tax for which he or it may be separately liable,
be jointly and severally liable for the tax on the income of the family so
assessed.
(5) In the case of finding under sub-section (3) that the partition of the undivided
family took place during the income year, the total income of the undivided
family in respect of the period up to the date of partition shall be assessed as
if no partition had taken place ; and each member or group of members of the
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family shall, in addition to any tax for which he or it may be separately liable,
be jointly and severally liable for the tax on the income of that period as so
assessed.
(6) Notwithstanding anything contained in this section, if the Deputy
Commissioner of Taxes finds after completion of the assessment of a Hindu
undivided family that the family has already effected a partition, the tax shall
be recoverable from every person who was a member of the family before the
partition; and every such person shall be jointly and severally liable for tax on
the income of the family so assessed.
(7) For the purposes of this section, the several liability of any member or group
of members of a Hindu undivided family shall be computed according to the
portion of the property of the undivided family allotted to him or it at the
partition.
(8) The provisions of this section shall, so far as may be, apply in relation to the
levy and collection of any penalty, interest, fine or other sum in respect of any
period up to the date of the partition of a Hindu undivided family as they
apply in relation to levy and collection of tax in respect of any such period.

91. Assessment in case of persons leaving Bangladesh.-

(1) Where it appears to the Deputy Commissioner of Taxes that any person may
leave Bangladesh during the current financial year or shortly after its expiry
and that he has no intention of returning, an assessment may be made in that
year, notwithstanding anything contained in section 16, on the basis of the
total income of such person-
(a) if he has been previously assessed, for the period from the expiry of the
last income year of which income has been assessed to the probable date
of his departure from Bangladesh; and
(b) if he has not been previously assessed, of the entire period of his stay in
Bangladesh up to the probable date of his departure there from.
(2) Assessment under sub-section (1) shall be made-
(a) in respect of each completed income year included in the period referred
to in sub-section (1), at the rate at which tax would have been charged
had it been fully assessed; and
(b) in respect of the period from the expiry of the last of the completed
income years to the probable date of departure, at the rate in force for
the financial year in which such assessment is made and that financial
year shall be deemed to be the assessment year in respect of the income
of the said period.
(3) For the purpose of making an assessment under this section, the Deputy
Commissioner of Taxes may serve a notice upon the person concerned

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requiring him to file, within such time, not being less than 7 days, as may be
specified in the notice,-
(a) a return in the same form and verified in the same manner as a return
under section 75 setting forth, along with such other particulars as may
be required by the notice, his total income for each of the completed
income years comprised in the relevant period referred to in sub-section
(1); and
(b) an estimate of his total income for the period from the expiry of the last
of such completed income year to the probable date of his departure
from Bangladesh.
(4) All the provisions of this Ordinance shall, so far as may be, apply to the
notice under sub-section (3) for purpose of assessment of tax as if it were a
notice under section 77.
(5) Nothing in this section shall be deemed to authorise a Deputy Commissioner
of Taxes to assess any income which has escaped assessment or has been
under assessed or has been assessed at too low a rate or has been the subject
of excessive relief under this Ordinance but in respect of which he is debarred
from issuing a notice under section 93.

92. Assessment in case of income of a deceased person.-

(1) Where a person dies, his legal representative shall be liable to pay any tax or
other sum payable under this Ordinance which the deceased would have been
liable to pay if he had not died, in the like manner and to the same extent as
the deceased ; and the legal representative of the deceased shall, for the
purposes of this Ordinance, be deemed to be an assessee:
Provided that before deeming the legal representative of the deceased to
be an assessee, a notice to that effect shall be issued to him by the Deputy
Commissioner of Taxes.
(2) For the purposes of making an assessment of the income of the deceased and
recovery of tax,-
(a) any proceeding taken against the deceased before his death shall be
deemed to have been taken against the legal representative and may be
continued from the stage at which it stood on the date of the death of the
deceased; and
(b) any proceeding which could have been taken against the deceased, if he
had not died, may be taken against the legal representative;
and all the provisions of this Ordinance shall, so far as may be, apply
accordingly.
(3) The liability of legal representative under this Ordinance shall be limited to

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 the extent to which the estate of the deceased is capable of meeting the
liability.
(4) For the purposes of this section and other provisions of this Ordinance in
which the rights, interest and liabilities of the deceased are involved, "legal
representative" includes an executor, an administrator and any person
administering the estate of the deceased.

93. Tax, etc. escaping payment.-

(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 compliance with the
provision of sub-section (1) of section 82BB; or
(b) 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 6 years from the end of the relevant assessment year in any other
cases:
Provided 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
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(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. Limitation for assessment.-

(1) Subject to the provisions of sub-sections (2) and (3), after the expiry of-
(a) 2 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) 3 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) 6 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 2 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, 121A, 156, 159, 161 or 162 or, in
the case of a firm, an assessment to be made on a partner of a firm in

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consequence of an assessment made on the firm, shall be made within 30

days from the date on which the order was communicated and such revised
order shall be communicated to the assessee within 30 days next following:
Provided that where an order of assessment has been set aside by
any authority in that case the assessment shall be made within 60 days from
the date on which the order was communicated to him.
Explanation I -Where, by an order under 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 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.
(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.

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 CHAPTER X
LIABILITY IN SPECIAL CASES

95. Liability of representative in certain cases.-

(1) Every person who is a representative of another person in respect of any
income for the purpose of this section shall, in respect of such income,-
(a) be subject to the same duties, responsibilities and liabilities as if such
income were received by, or accruing to, or in favour of, him
beneficially;
(b) be liable to assessment in his own name ; and
(c) be deemed, subject to other provisions of this Chapter, to be the assessee
for all purposes of this Ordinance.
(2) A person, who is assessed in pursuance of this section as a representative in
respect of any income, shall not, in respect of the same income, be assessed
under any other provision of this Ordinance.
(3) Nothing in this section shall prevent either the direct assessment of the person
for whom, or on whose behalf or for whose benefit, the representative is
entitled to receive any income or recovery from such person of the tax payable
in respect of such income.
(4) For the purposes of this section,-
(a) the guardian, manager or trustee, who receives or is entitled to receive
any income for, or on behalf or for the benefit, of any minor, lunatic or
idiot, shall be the representative in respect of such income;
(b) the Administrator-General, the Official Trustee, or any receiver, manager
or other person, however designated, appointed by or under any order of
a Court, who receives or is entitled to receive any income for, or on
behalf or for the benefit, of any other person shall be the representative in
respect of such income;
(c) the trustee or trustees appointed under a trust declared by a duly executed
instrument in writing, whether testamentary or otherwise, including a
legally valid deed of waqf, who receive or are entitled to receive any
income for, or on behalf or for the benefit, of any person shall be the
representative in respect of such income; and
(d) a person who is treated under section 96 as an agent in relation to a non-
resident, shall be the representative in respect of such income of the non-
resident as is deemed to accrue or arise in Bangladesh under section 18.

96. Persons to be treated as agent.-

 (1) For the purposes of this Ordinance, the following persons shall, subject to the
provisions of sub-sections (2) and (3), be treated as agent in relation to a non-
resident, namely:-
(a) any person in Bangladesh-
(i) who is employed by, or on behalf of, the non-resident;
(ii) who has any business connection with the non-resident;
(iii) who holds, or controls the receipt or disposal of, any money
belonging to the non-resident;
(iv) who is a trustee of the non-resident; or
(v) from or through whom the non-resident is in receipt of any
income, whether directly or indirectly;
(b) any person, whether a resident or non-resident, who has acquired, by
means of transfer, a capital asset in Bangladesh from a person residing
outside Bangladesh; and
(c) any person who, for any other reasonable cause, is declared or treated as
an agent of the non-resident.
(2) An independent broker in Bangladesh, who in respect of any transaction, does
not deal directly with, or on behalf of, a non-resident principal but deals with,
or through, a non-resident broker, shall not be treated as an agent in relation to
a non-resident in respect of such transaction if-
(a) the transaction is carried on in the ordinary course of business through
the non-resident broker; and
(b) the non-resident broker is carrying on such transaction in the ordinary
course of business.
(3) No person shall be treated under this Ordinance as an agent in relation to a
non-resident unless he has been given by the Deputy Commissioner of Taxes
an opportunity of being heard.

97. Right of representative to recover tax paid.-

(1) A representative who, on account of his liability under section 95, pays any
sum, shall be entitled to recover the sum so paid from the person on whose
behalf it is paid, or to retain out of any moneys that may be in his possession
or may come to him in his possession or may come to him in his capacity as a
representative, an amount equivalent to the sum so paid.
(2) A representative, or any person who apprehends that he may be assessed as a
representative, may retain, out of any money payable to the person (hereinafter
referred to as ―the beneficiary‖) on whose behalf he is liable to tax under
section 95, a sum not exceeding his estimated liability
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(3) In the event of any disagreement between the beneficiary and the
representative or, as the case may be, the person apprehensive of being
assessed as representative, as to the amount to be retained under sub-section
(2), such representative or person may secure from the Deputy Commissioner
of Taxes a certificate stating the amount to be so retained pending the
settlement of the liability and the certificate so obtained shall be the warrant
for retaining that amount.

98. Liability of firm or association for unrecoverable tax due from partners or
members.-
(1) Where any tax payable by partner of a firm or a member of an association of
persons in respect of his share of the income from the firm or association, as
the case may be, cannot be recovered from him, the Deputy Commissioner of
Taxes shall notify the amount of the tax to the firm or association.
(2) Upon notification of the amount of tax under sub-section-(1), the firm or
association so notified shall, notwithstanding anything contained in any other
law for the time being in force, be 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.

99. Liability of partners, etc., for discontinued business of a firm, etc.-

(1) Where any business or profession carried on by a firm or an association of
persons has been discontinued, or where a firm or an association of persons is
dissolved, assessment of the total income of the firm or association may be
made as if no such discontinuance or dissolution had taken place; and all the
provisions of this Ordinance shall, so far as may be, apply accordingly.
(2) Where an assessment is made under sub-section (1) in respect of a firm or an
association of persons, every person who was a partner of the firm or member
of the association at the time of discontinuance of business, or as the case may
be, dissolution of the firm or association, and the legal representative of any
such person who is deceased, shall be jointly and severally liable for the
amount of tax found payable by the firm or association upon such assessment
and shall, for the purpose of recovery of such tax, including penalty and other
sum payable, be deemed to be an assessee ; and the provisions of this
ordinance shall apply accordingly.

100. Liability of directors for unrecoverable tax of private companies.-

(1) Where any private company is wound up 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,

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at any time during the relevant income year, a director of that company, shall,
notwithstanding anything contained in the Companies Act, 1913 or
ক@োম্পোনি আইি, ১৯৯৪, 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.

101. Liability of liquidator for tax of private companies under liquidation.-

(1) A liquidator of a private company which is wound up, whether under the
orders of a court or otherwise, shall, within 30 days after he has become such
liquidator, give notice of his appointment as such to the Deputy Commissioner
of Taxes having jurisdiction to assess the company.
(2) The Deputy Commissioner of Taxes shall, after making such enquiries or,
calling for such information as he may consider necessary, notify to the
liquidator within 3 months of the date of receipt of the notice under sub-
section (1), the amount which, in his opinion, would be sufficient to provide
for any tax which is then, or is likely thereafter to become, payable by the
company.
(3) On being notified under sub-section (2), the liquidator shall set aside an
amount equal to the amount so notified and shall not, before he sets aside such
amount, part with any of the assets of the company except for the purpose of
payment of tax payable by the company or for making payment to secure such
creditors as are entitled under the law to priority of payment over debts due to
the Government on the date of liquidation.
(4) The liquidator shall be personally liable for payment of the tax on behalf of the
company to the extent of the amount notified, if any, under sub-section(2), if
he-
(a) fails to give notice as required by sub-section (1); or
(b) contravenes the provisions of sub-section (3).
(5) Where there are more liquidators than one, the obligations and liabilities of a
liquidator under this section shall attach to all the liquidators jointly and
severally.
(6) This section shall have effect notwithstanding anything to the contrary
contained in any other law for the time being in force.
Explanation.-In this section, "liquidator" includes any person who has been

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 appointed to be the receiver of the assets of the company under liquidation.

102. Liability to tax in case of shipping business of non-resident.-

(1) Notwithstanding anything contained in this Ordinance, where a non resident
carries on the business of operation of ships as the owner or charterer thereof
(hereinafter in this section referred to as the principal) tax shall be levied and
collected in respect of such business in accordance with the provisions of this
section.
(2) Before the departure from any port in Bangladesh of any ship, the master of
the ship shall prepare and furnish to the Deputy Commissioner of Taxes a
return showing-
(a) the amount paid or payable whether in or out of Bangladesh to the
principal, or to any person on his behalf, on account of the carriage of
passengers, livestock, mail or goods shipped at the port since the last
arrival of the ship; and
(b) the amount received, or deemed to be received in Bangladesh by, or on
behalf of, the principal on account of the carriage of passengers,
livestock, mail or goods shipped at any port outside Bangladesh.
(3) On receipt of the return, the Deputy Commissioner of Taxes shall determine
the aggregate of the amounts referred to in sub-section (2) and, for this
purpose, may call for such particulars, accounts or documents, as he may
require and the aggregate of the said amounts so determined, shall be deemed
to be income received in Bangladesh by the principal from the said business
chargeable to tax under this Ordinance under the head "Income from business
or profession", and tax thereon shall be charged at the rate of 8% of such
income.
(4) Where the Deputy Commissioner of Taxes is satisfied that it is not possible for
the master of the ship or the principal to furnish the return required under
subsection (2) before the departure of the ship from the port and the principal
has made satisfactory arrangements for the filing of the return and payment of
the tax by any other person on his behalf, the Deputy Commissioner of Taxes
may, if the return is filed within 30 days of the departure of the ship, deem the
filing of the return by the person so authorised by the principal as sufficient
compliance with sub-section (2):
Provided that where any charge mentioned in sub-section (8) is accrued after
the expiry of said 30 days, the other person mentioned in this sub-section shall
file a supplementary return in respect of such charge and pay tax thereon
within next 30 days from the end of the month in which the charge has
accrued.
(5) No port clearance shall be granted to the ship until the Commissioner of
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Customs or any other officer duly authorised to grant the same, is satisfied that
the tax payable under sub-section (3) has been duly paid or that satisfactory
arrangements have been made for the payment thereof.
(6) Nothing contained in this Ordinance shall be so construed as to allow any
expense against the aggregate amount of receipts as determined under
subsection (3).
(7) The tax paid under this section shall be deemed to be the final discharge of the
tax liability of the assessee under this Ordinance, and the assessee shall not be
required to file the return of total income under section 75 nor shall he be
entitled to claim any refund or adjustment on the basis of such return.
(8) For the purpose of this section, the amount referred to in sub-section (2) shall
include the amount paid or payable by way of demurrage charge or handling
charge or any other amount of similar nature.

103. [deleted]

103A. Liability to tax in case of air transport business of non-residents.-

(1) Notwithstanding anything contained in this Ordinance, where a non-resident
person carries on the business of operation of aircraft, as the owner or
charterer thereof (hereinafter in this section referred to as "the principal"), and
any aircraft owned or chartered by him calls on any airport in Bangladesh, the
aggregate of the receipts arising from the carriage of passengers, livestock,
mail or goods loaded at the said airport into that aircraft shall be deemed to be
income received in Bangladesh by the principal from the said business
chargeable to tax under the head "Income from business or profession", and
tax thereon shall be charged at the rate of 3% of such income.
(2) The principal or an agent authorised by him in this behalf shall prepare and
furnish to the Deputy Commissioner of Taxes, within 45 days from the last
day of each quarter of every financial year, that is to say, the thirtieth day of
September, the thirty-first day of December, the thirty-first day of March and
the thirtieth day of June, respectively, return in respect of each quarter as
aforesaid showing-
(a) the amount paid or payable whether in or out of Bangladesh to the
principal, or to any person on his behalf, on account of the carriage of
passengers, livestock, mail or goods loaded at the said airport; and
(b) the amount received, or deemed to be received, in Bangladesh by, or on
behalf of, the principal on account of the carriage of passengers,
livestock, mail or goods at any airport outside Bangladesh.
(3) On receipt of the return, the Deputy Commissioner of Taxes may, after calling
for such particulars, accounts or documents, as he may require, determine the

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aggregate of the amounts referred to in sub-section (2), and charge tax as laid
down in sub-section (1).
(4) Where, the principal fails to pay the tax payable under sub-section (1) for more
than 3 months, the Commissioner of Taxes may issue to the authority by
whom clearance may be granted to that aircraft, a certificate containing the
name of the principal and the amount of tax payable by him; and on receipt of
such certificate, the said authority shall refuse clearance from any airport in
Bangladesh to any aircraft owned or chartered by such person until the tax
payable has been paid.
(5) Nothing contained in this Ordinance shall be so construed as to allow any
expense against the aggregate amount of receipts as determined under sub-
section(3).
(6) The tax paid under this section shall be deemed to be the final discharge of the
tax liability of the assessee under this Ordinance, and the assessee shall not be
required to file the return of total income under section 75 nor shall he be
entitled to claim any refund or adjustment on the basis of such return.

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 CHAPTER XI
SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX

104. Avoidance of tax through transactions with non-residents.-

Where any business is carried on between a resident and a non-resident and it
appears to the Deputy Commissioner of Taxes that, owing to the close connection
between them, the course of business is so arranged that the business transacted
between them produces to the resident either no profits or profits less than the
ordinary profits which might be expected to yield in that business, the Deputy
Commissioner of Taxes shall determine the amount of income which may
reasonably be considered to have accrued to the resident from such business and
include such amount in the total income of the resident.

105. Avoidance of tax through transfer of assets.-

(1) Any income which becomes payable to a non-resident by virtue, or in
consequence, of any transfer of assets, whether alone or in conjunction with
associated operations, shall be deemed to be the income of the person who-
(a) has acquired, by means of such transfer or associated operations, any
right by virtue, or in consequence, of which he has power to enjoy,
whether forthwith or in future, the income which becomes so payable to
the non-resident, or
(b) has received or is entitled to receive at any time, for reasons attributable
to such transactions or associated operations, any sum paid or payable by
way of loan or repayment of loan or any other sum, not being a sum paid
or payable as income or for full consideration of money or money's
worth.
(2) The income which becomes payable to a non-resident and is deemed under
sub-section (1), to be the income of the person referred to therein shall be so
deemed for all purposes of this Ordinance, whether such income would or
would not have been chargeable to tax apart from the provisions of this
section.
(3) The provisions of this section shall not operate if it is shown to the satisfaction
of the Deputy Commissioner of Taxes-
(a) that neither the transfer nor any associated operation had for its purpose,
or for one of its purposes, the avoidance of liability to taxation; or
(b) that the transfer and all associated operations were bona fide commercial
transaction and were not designed for the purpose of avoiding liability to
taxation.
(4) Where any person has been charged to tax on any income which is deemed
under sub-section (1) to be his income, that income shall not again be deemed
to form part of his income for the purpose of this Ordinance if it is
subsequently received by him whether as income or in any other form.
(5) A person shall, for the purposes of this section, be deemed to have power to
enjoy the income payable to a non-resident if-
(a) such income is in fact so dealt with as to be calculated to ensure at any
time for the benefit of such person in any form; or
(b) the receipt or accrual of such income operates to increase the value of
any assets held by such person or for his benefit; or
(c) such person receives or is entitled to receive at any time any benefit
provided or to be provided-
(i) out of such income; or
(ii) out of money which is, or will be, available for the purpose by
reason of the effect or successive effects of associated operations
on such income and on any assets representing the income ; or
(d) such person has, by means of the exercise of any power of appointment,
revocation or otherwise, power to obtain for himself, with or without the
consent of any other person, the beneficial enjoyment of such income; or
(e) such person is able to control, directly or indirectly, the application of
such income, in any manner whatsoever.
(6) In determining whether a person has power to enjoy income, regard shall be
had to the substantial result and effect of the transfer and any associated
operations, and to all benefits which may at any time accrue to such person as
a result of the transfer and associated operations irrespective of the nature or
form of the benefit.
Explanation.- For the purposes of this section-
(a) "assets" includes property or rights of any kind and "transfer", in relation
to assets being rights, includes creation of those rights;
(b) "associated operation", in relation to any transfer, means an operation of
any kind effected by any person in relation to -
(i) any of the assets transferred; or
(ii) any income arising from such assets; or
(iii) any assets representing, directly or indirectly, any of the assets
transferred, or the accumulation of the income arising from such
assets;
(c) "benefit" includes a payment of any kind;
 (d) references to assets representing any assets transferred, or any income or
accumulation of income arising there from, includes references to shares
in or obligation of any company to which, or the obligation of any other
person to whom, any such assets or that income or accumulation of
income is or has been transferred; and
(e) any body corporate incorporated outside Bangladesh shall be treated as if
it were a non-resident.

106. Avoidance of tax by transactions in securities.-

(1) Where the owner of any securities sells or transfers those securities and buys
them back or reacquires them, or buys or acquires similar securities, and the
result of the transactions is that any interest becoming payable in respect of the
original securities sold or transferred by the owner is not receivable by the
owner, the interest payable as aforesaid shall be deemed, for all purposes of
this Ordinance, to be the income of such owner and not of any other person,
whether the interest payable as aforesaid would or would not have been
chargeable to tax apart from the provisions of this sub-section.
(2) Where any person has had for any period during an income year any beneficial
interest in any securities and the result of any transactions within that year
relating to such securities or the income thereof is that no income is received
by him, or that the income received by him is less than the sum which the
income would have amounted to had the income from such securities accrued
from day to day, and been apportioned to the said period, then the income from
such securities for the said period shall be deemed to be the income of such
person.
(3) Where, any person carrying on a business which consists wholly or partly in
dealing in securities buys or acquires any securities from any other person and
either sells back or re-transfers those securities, or sells or transfers similar
securities, to such other person, and the result of the transactions is that the
interest becoming payable in respect of the securities bought or acquired by
him is receivable by him but is not deemed to be his income by reason of the
provisions of sub-section (1), no account shall be taken of the transactions in
computing for any of the purposes of this Ordinance any income arising from,
or loss sustained, in the business.
(4) The Deputy Commissioner of Taxes may, by notice in writing, require any
person to furnish him, within such time, not being less than 28 days, as may be
specified in the notice, such particulars in respect of all securities of which
such person was the owner, or in which he had beneficial interest at any time
during the period specified in the notice, as the Deputy Commissioner of
Taxes may consider necessary for the purpose of ascertaining whether tax has
been borne in respect of the interest on all those securities and also for other
 purposes of this section.
Explanation.- For the purposes of this section,-
(a) "interest" includes dividend;
(b) "securities" includes stocks and shares; and
(c) securities shall be deemed to be similar if they entitle their holders to the same
right against the same persons as to capital and interest and the same remedies
for the enforcement of these rights, notwithstanding any difference in the total
nominal amounts of the respective securities or in the form in which they are
held or in the manner in which they can be transferred.

107. Tax clearance certificate required for persons leaving Bangladesh.-

(1) Subject to such exceptions as the Board may make in this behalf, a person who
is not domiciled in Bangladesh, or a person who being domiciled in
Bangladesh at the time of his departure is not, in the opinion of an income tax
authority likely to return to Bangladesh, shall not leave Bangladesh without
obtaining from the Deputy Commissioner of Taxes authorised in this behalf by
the Board.-
(a) a tax clearance certificate, or
(b) if he has the intention of returning to Bangladesh, an exemption
certificate which shall be issued only if the Deputy Commissioner of
Taxes is satisfied that such person has such intention; and such
exemption certificate may be either for a single journey or for all
journeys within the period specified in the certificate.
(2) The owner or charterer of any ship or aircraft, who issues any authority to any
person referred to in sub-section (1) for travel by such ship or aircraft from any
place in Bangladesh to any place outside Bangladesh unless such person has a
certificate required by that sub-section, shall-
(a) be liable to pay the amount of tax, if any, which has or may become due
and payable by such person and also to a penalty which may extend to
2,000(two thousand); and
(b) be deemed, for the purposes of recovery of such tax and penalty, to be an
assessee in default, and all the provisions of this Ordinance shall apply
accordingly.
Explanation.- For the purposes of this section-
(a) "exemption certificate", in relation to any person, means a certificate to the
effect that such person is exempt from the requirement of having a tax
clearance certificate for the purpose of the journey or journeys specified
therein;
(b) "owner" or "charterer" includes any representative, agent or employee, who
may be empowered by the owner or charterer of a ship or aircraft to issue an
authority to travel by the ship or aircraft; and
(c) "tax clearance certificate", in relation to a person, means a certificate to the
effect that such person has no liability under this Ordinance, the Income-tax
Act, 1922, the Gift-tax Act, 1963 or েোি@রআইি, ১৯৯১ or the Wealth-tax Act,
1963, or that satisfactory arrangements have been made for the payment of all
or any of such taxes which are or may become payable by such person.
 CHAPTER XIA
Transfer Pricing

107A. Definitions.-
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
25% of the voting power in the other enterprise; or
(d) the same person or persons controls shares carrying more than 25% of
the voting power in both enterprises; or
(e) the cumulative amount of borrowings of one enterprise from the other
enterprise constitutes more than 50% 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 10% 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
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

(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 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;
(6) [deleted]
(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 or 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;

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[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

(11) "uncontrolled transaction" means a transaction undertaken between

enterprises not being the associated enterprises.

107B. Determination of income from international transaction having regard to arm’s

length price.-
Notwithstanding anything contained in Chapter XI of this Ordinance, the amount of
any income, or expenditure, arising from an international transaction shall be
determined having regard to the arm‗s length price.

107C. Computation of arm’s length price.-

(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.
(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 30% of the dataset and ending on the
seventy percentile of the dataset shall be constructed and the arm‘s length
price shall be-
(1) 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

asadtax@gmail.com Page
 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 that—
(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. Reference to Transfer Pricing Officer.-

(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 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.

107E. Maintenance and keeping of information, documents and records.-

(1) Every person who has entered into an international transaction shall keep and
maintain such information, documents and records as may be prescribed.
 (2) Without prejudice to the provisions of sub-section (1), the Board may
prescribe the period for which the information, documents and records shall
be kept and maintained.
(3) The Deputy Commissioner of Taxes may, by notice in writing, require any
person to furnish any information, documents and records as prescribed under
sub-section (1) within the period as may be specified in the notice.

107EE. Statement of international transactions to be submitted.-

Every person who has entered into an international transaction shall furnish, along
with the return of income, a statement of international transactions in the form and
manner as may be prescribed.

107F. Report from an accountant to be furnished.-

The Deputy Commissioner of Taxes may, by notice in writing, require that a person
who has entered into international transaction or transactions the aggregate value of
which, as recorded in the books of accounts, exceeds taka 3 (three) crore during an
income year shall furnish within the period as may be specified in the notice and in
the form and manner as may be prescribed, a report from a Chartered Accountant or
a Cost and Management Accountant regarding all or of a part of the information,
documents and records furnished under section 107E.

107G. Penalty for failure to keep, maintain or furnish information, documents or

records to the Deputy Commissioner of Taxes.-
Where any person fails to keep, maintain or furnish any information or documents
or records as required by section 107E of this Ordinance, without prejudice to the
provisions of Chapter XV of this Ordinance, the Deputy Commissioner of Taxes
may impose upon such person a penalty not exceeding 1% of the value of each
international transaction entered into by such person.

107H. Penalty for failure to comply with the notice or requisition under section 107C.-
Where any person fails to comply with the notice or requisition under section 107C
of this Ordinance, the Deputy Commissioner of Taxes may impose upon such
person a penalty not exceeding 1% of the value of each international transaction
entered into by such person.

107HH. Penalty for failure to comply with the provision of section 107EE.-
Where any person fails to comply with the provision of section 107EE of this
Ordinance, the Deputy Commissioner of Taxes may impose upon such person a
 penalty not exceeding 2% of the value of each international transaction entered into
by such person.

107I. Penalty for failure to furnish report under section 107F.-

Where any person fails to furnish a report as required by section 107F of this
Ordinance, the Deputy Commissioner of Taxes may impose upon such person a
penalty of a sum not exceeding taka 3 lakh.

107J. Applicability of this Chapter.-

The provisions of this Chapter shall come into force from the date specified by the
Board through notification in the official Gazette.
 CHAPTER XII
REQUIREMENT OF FURNISHING CERTAIN INFORMATION

108. Information regarding payment of salary.-

Every person responsible for making any payment constituting income classifiable
under the head "Salaries" not being payment made by the Government, and the
prescribed officer in cases where such payments are made by the Government, shall,
before the first day of September each year, furnish to the Deputy Commissioner of
Taxes, a statement prepared in the prescribed form and verified in the prescribed
manner so as to give the following information, namely :-
(a) the name and address of every person to whom such payment has been made,
or was due, during the preceding financial year if the payment exceeds such
amount as may be prescribed;
(b) the amount of payment so made, or due;
(c) the amount deducted as tax from such payment; and
(d) such other particulars as may be prescribed:
Provided that the Deputy Commissioner of Taxes may extend the date for the
delivery of the statement.

108A. Information regarding filing of return by employees.-

(1) Every employee shall furnish the following information to the employer by the
fifteenth day of April each year-
(i) Taxpayer‘s Identification Number;
(ii) Date of filing of the return of income; and
(iii) The serial number provided by the income tax authority upon filing of
the return of income.
(2) Any person responsible for making any payment which is an income of the
payee classifiable under the head "Salaries", shall, by the thirtieth day of April
of each year, furnish to such income tax authority and in such manner as may
be prescribed, a statement containing the following information regarding the
payee:-
(i) The name, designation and the Taxpayer‘s Identification Number;
(ii) Date of filing of the return of income;
(iii) The serial number provided by the income tax authority upon filing of
the return;
(3) Nothing in this section shall apply to a payment made by the Government.
109. Information regarding payment of interest.-
Every person responsible for making any payment of interest constituting income
not classifiable under the head "Interest on securities" shall, if such payment exceeds
Tk. 15,000, before the first day of September each year, furnish to a prescribed
officer a statement prepared in the prescribed form and verified in the prescribed
manner so as to give the following information, namely:-
(a) the name and address of every person to whom such payment has been made,
or was due, during the preceding financial year;
(b) the amount of payment so made or due; and
(c) such other particulars as may be prescribed.

110. Information regarding payment of dividend.-

The principal officer of every company shall, before the first day of September each
year, furnish to the prescribed officer, a statement prepared in the prescribed form
and verified in the prescribed manner, so as to give the following information,
namely:-
(a) the name and address of every shareholder, as entered in the register of
shareholders, to whom a dividend or the aggregate of dividends has been paid
or distributed during the preceding financial year if such payment exceeds
such amount as may be prescribed;
(b) the amount of dividend or dividends so paid or distributed; and
(c) such other particulars as may be prescribed.
 CHAPTER XIII
REGISTRATION OF FIRMS

111. Registration of firms:- deleted

CHAPTER XIV
POWERS OF INCOME TAX AUTHORITIES

112. Powers under this Chapter not to prejudice other powers.-

The powers exercisable by income-tax authorities under this Chapter shall not
prejudice, unless otherwise provided in the provisions thereof, the powers
exercisable under the other provisions of this Ordinance.

113. Power to call for information.-

The Deputy Commissioner of Taxes, the Inspecting Joint Commissioner, the
Commissioner, the Director General, Central Intelligence Cell, 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 address 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 Tk.3,000 (three
thousand), 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 statements 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.

113A. Automatic furnishing of information.-

(1) The Board may, by a notice in official gazette, require any authority, person or
entity to furnish in digital manner to the Board or any income tax authority
specified by the Board, any information including information regarding
assets, liabilities, income, expenses and transactions in respect of any class of
persons.
(2) The information mentioned in sub-section (1) shall be furnished in such digital
manner as may be specified in the notice.
(3) For the purpose of this section, furnishing in digital manner includes-
(a) uploading data in the system of the Board;
(b) sharing data to the digital or electronic system of the Board; and
(c) enabling digital or electronic access to the intended system.

114. Power to inspect registers of companies.-

The Deputy Commissioner of Taxes, the Joint Commissioner of Taxes or any person
authorised in writing in this behalf by either of them, may inspect and, if necessary,
take copies, or cause copies to be taken, of any register of the members, debenture-
holders or mortgagees of any company or any entry in such register.

115. Power of survey.-

(1) For the purpose of survey of liability of any person to tax under this
Ordinance, an income tax authority may, notwithstanding anything contained
in other provisions of this Ordinance but subject to such directions or
instructions as the Board may issue in this behalf, enter any place of premises
within the limits or its jurisdiction and-
(a) inspect any accounts or documents and check or verify any article or
thing;
(b) make an inventory of any cash, stock or other valuable articles or things
checked or verified by it;
(c) place marks of identification on or stamp the books of accounts or other
documents inspected by it and make or cause to be made extracts or
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

copies therefrom;
(d) record the statement of any person which may be useful for, or relevant
to, any proceeding under this Ordinance; and
(e) make such enquiries as may be necessary.
(2) Subject to the provisions of section 117, any income-tax authority exercising
powers under sub-section (1), shall not remove or cause to be removed from
any place or premises wherein he has entered, any books of accounts or other
documents, or any cash, stock or other valuable article or thing.
(3) Every proprietor, employee or other person who may be attending in any
manner to, or helping in, the carrying on of any business or profession, or
every person who may be residing in the place or premises in respect of which
an income tax authority may be exercising power under sub-section (1), shall
in aid of the exercise of such power,-
(a) afford the authority necessary facilities for inspection of books of
accounts or other documents, or for checking or verifying the cash, stock
or other valuable article or thing found in such place or premises; and
(b) furnish such information as the authority may require in respect of any
matter which may be useful for, or relevant to, any proceeding under this
Ordinance.

116. Additional powers of enquiry and production of documents.-

(1) The Director-General of Inspection, the Commissioner, the director General,
Central Intelligence Cell, and the Inspecting Joint Commissioner may, without
prejudice to other powers which they may have under other provisions of this
Ordinance, make any enquiry which they consider necessary as respects any
person liable, or believed by them to be liable, to assessment under this
Ordinance, or require any such person or any other person in relation to such
enquiry to appear before him at the time and place as directed for providing
any information or to produce or cause to be produced necessary documents,
accounts or records including any electronic records and systems referred to in
the Explanation of sub-section (2) of section 117 under the possession or
control of such person or such other person.
(2) For the purposes of sub section (1), the Directors-General of Inspection, the
Commissioner, the Director General, Central Intelligence Cell, and the
Inspecting Joint Commissioner shall have the same powers as the Deputy
Commissioner of Taxes has under this Ordinance for the purposes of making
enquiry or requiring the production of accounts or documents including the
powers under section 117(2).
(3) The Commissioner, the director General, Central Intelligence Cell, the
Inspecting Joint Commissioner, the Deputy Commissioner of Taxes or an

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 Inspector, if he is so authorised in writing, may, for the purpose of making any
enquiry which he considers necessary, enter the premises in which a person
liable or believed by him to be liable to assessment, carries on his business or
profession, and may call for and inspect any such person's accounts or any
documents in his possession, and may stamp any accounts or documents so
inspected, and may retain such accounts or documents for so long as may be
necessary for examination thereof or for the purposes of a prosecution:
Provided that the Deputy Commissioner of Taxes or an Inspector shall not
make any enquiries from any scheduled bank regarding any client of such
bank except with the prior approval of the Commissioner, the Director
General, Central intelligence Cell.

116A. Power of giving order for not removing property.-

(1) Where, in the course of performing functions under this Ordinance, the
Director General, Central Intelligence Cell or the Commissioner has definite
information in his hands that any person has concealed the particulars of
income or investment, he may, by order in writing, require any person who is
in immediate possession or control of any money, bullion, jewellery, financial
instrument, financial asset, valuable article or any other property not to
remove, part with, or otherwise deal with it without obtaining previous
permission of the concerned authority passing such order.
(2) Every such order shall cease to have effect after the expiry of a period of one
year from the date of the order made under sub-section (1).
(3) The income tax authority mentioned in sub-section (1) may extend such period
or periods with the approval of the Board:
Provided that the total period of extension shall in no case exceed one year.
(4) In computing the period referred to sub-section (2) and sub-section (3), the
period, if any, for which the order under sub-section (1) has been stayed by
any court, shall be excluded.

117. Power of search and seizure.-

(1) Where the Directors-General of Inspection or the Commissioner, the Director
General, Central Intelligence Cell or such other officer empowered in this
behalf by the Board, has, on account of information in his possession, reason
to believe that-
(a) any person, to whom a summons or notice under this Ordinance has
been or might be issued to produce, or cause to be produced, any books
of accounts or other documents, or electronic records and systems, has
failed to, or is not likely to, produce or cause to be produced such books
 of accounts or other documents, or electronic record and system, or
(b) any person is in possession of any money, bullion, jewellery or other
valuable article or thing which represents, wholly or partly, income or
property which is required to be disclosed under this Ordinance but has
not been so disclosed, he may authorise any officer subordinate to him,
being not below the rank of the Assistant Commissioner of Taxes to
exercise the powers under sub-section (2).
(2) An officer authorised under sub-section (1) (hereinafter referred to as the
authorised officer) may, notwithstanding anything contained in any other law
for the time being in force,-
(a) enter and search any building, place, vessel, vehicle or aircraft where he
has reason to suspect that any books of accounts, documents, electronic
records and systems, money, bullion, jewellery or other valuable article
or thing referred to in sub-section (1) are or have been kept;
(b) break-open the lock of any door, box, locker, safe, almirah or other
receptacle for the purpose of the said entry, and search, if keys thereof
are not available;
(c) search any person who has got out of, or is about to get into, or is in, the
building, place, vessel, vehicle or aircraft, if he has reason to suspect
that such person has secreted about his person any such books of
accounts, documents, electronic records and systems, money, bullion,
jewellery or other valuable article or thing;
(d) seize any such books of accounts, documents, electronic records and
systems, money, bullion, jewellery or other valuable article or thing
found as a result of such search;
(e) 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;
(f) make a note or an inventory of any such money, bullion, jewellery or
other valuable article or thing; and
(g) 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.
Explanation.- For the purpose of this section, 'electronic records and systems'
include data, record or data generated, image or sound stored, received or sent
in an electronic form or micro film or computer generated micro fiche and
also include an electronic device.
(3) The authorised officer may requisition the services of any police officer or
other officer of the Government or any professional expert from outside the
government to assist him for all or any of the purposes specified in sub-
 section (2), and it shall be the duty of every such officer or professional
expert to comply with such requisition.
(4) The authorised officer may, where it is not practicable to seize any such
books of accounts, documents, electronic records and systems, money,
bullion, jewellery or other valuable article or thing, by order in writing,
require the owner or the person who is in immediate possession or control
thereof not to remove, part with or otherwise deal with it without obtaining
his previous permission, and the authorised officer may take such steps as
may be necessary for ensuring compliance with the order:
Provided that if the owner or the person concerned, without any reasonable
cause, fails to comply with the provisions of this sub-section ,the Deputy
Director General, Central Intelligence Cell or the Deputy Commissioner of
Taxes may realize from him the money or the value of the bullion, jewellery,
valuable article or thing, if any, removed, parted with or otherwise dealt
with; and in such a case the said person shall be deemed to be an assessee in
default under this Ordinance.
(5) The authorised officer may, during the course of the search or seizure,
examine on oath any person who is found to be in possession or control of
any books of accounts, documents, electronic records and systems, money,
bullion, jewellery or other valuable article or thing and any statement made
by such person during the examination may thereafter be used in evidence in
any proceeding under this Ordinance, or the Income-tax Act, 1922.
(6) Where any books of accounts, documents, electronic records and systems,
money, bullion, jewellery or other valuable article or thing is found in the
possession or control of any person in the course of a search, it may be
presumed that-
(a) the books of accounts, documents, electronic records and systems,
money, bullion, jewellery, article or thing belongs to such person;
(b) the contents of the books of accounts, documents, electronic records and
systems, are true ; and
(c) the signature on, or the handwriting in, any such books or documents is
the signature or handwriting of the person whose signature or
handwriting it purports to be.
(7) The person from whose custody any books of accounts or other documents or
electronic records and systems, are seized under sub-section (2) may make
copies thereof, or take extracts therefrom, in the presence of the authorised
officer or any other person designated by him, at such place and time as the
authorised officer may appoint in this behalf.
(8) The books of accounts or other documents or electronic records and systems,
seized under sub-section (2) shall not be retained by the authorised officer for
a period exceeding 180 days from the date of the seizure unless for reasons
 recorded in writing, approval of the Commissioner, the Director General,
Central intelligence Cell, has been obtained for such retention:
Provided that the Commissioner, the Director General, Central intelligence
Cell shall not approve such retention for a period exceeding 30 days after all
the proceedings under this Ordinance in respect of the years for which the
books of accounts or other documents, electronic records and systems, as are
relevant, have been completed.
(9) If any person, legally entitled to the books of accounts or other documents or
electronic records and systems, seized under sub-section (2) objects to the
approval given by the Commissioner the Director General, Central
Intelligence Cell under sub-section (8), he may make an application, stating
therein the reasons for his objection, to the Board for the return of the books
of accounts or other documents or electronic records and systems; and the
Board may, after giving the applicant an opportunity of being heard, pass
such orders thereon as it may think fit.
(10) Subject to the provisions of this Ordinance and the rules, if any, made in this
behalf by the Board, the provisions of the Code of Criminal Procedure, 1898,
relating to search and seizure shall apply, so far as may be, to search and
seizure under sub-section (2).
Explanation.-For the purposes of this section, the word "proceeding" means
any proceeding in respect of any year under this Ordinance which may be
pending on the date on which a search is authorised under this section or
which may have been completed on or before such date and also includes all
proceedings under this Ordinance which may be commenced after such date
in respect of any year.

117A. Power to verify deduction or collection of tax.-

Notwithstanding anything contained in this Ordinance or any other law for the time
being in force, without prejudice to the provisions of section 75AA, the Board or
any other authority empowered by the Board in this behalf may enter the premises
of a deducting or collecting authority to examine, monitor or verify books of
accounts and relevant records in relation to-
(a) deduction or collection of tax by the concerned authority in accordance with
the provisions of chapter VII of this Ordinance; and
(b) deposit of the tax so collected or deducted to the credit of the government as
per rules,

118. Retention of seized assets.-

(1) Where any money, bullion, jewellery or other valuable article or thing
(hereinafter referred to as assets) is seized under section 117, the authorised
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

officer shall, unless he himself is the Deputy Commissioner of Taxes, forward

a report thereof, together with all relevant papers, to the Deputy Commissioner
of Taxes.
(2) Where he has seized any asset under section 117 or, as the case may be, he has
received a report under sub-section (1), the Deputy Commissioner of Taxes
shall, after giving the person concerned a reasonable opportunity of being
heard and making such enquiry as the Directors-General of Inspection or the
Commissioner may direct, within 90 days of the seizure of the assets, and with
the previous approval of the Commissioner,-
(a) estimate the undisclosed income (including income from the undisclosed
property), in a summary manner to the best of his judgment on the basis
of such materials as are available with him;
(b) calculate the amount of tax payable under this Ordinance on the income
so estimated; and
(c) specify the amount that will be required to satisfy any existing liability
under this Ordinance, the Income tax Act, 1922, the Gift tax Act, 1963,
and the Wealth-tax Act, 1963, in respect of which such person is in
default or is deemed to be in default:
Provided that if, after taking into account the materials available with him, the
Deputy Commissioner of Taxes is of the view that it is not possible to ascertain
to which particular income year or years such income or any part thereof
relates, he may calculate the tax on such income or part, as the case may
be, as if such income or part were the total income chargeable to tax at the
rates in force in the financial year in which the assets were seized.
Explanation.-In computing the period of 90 days for the purposes of sub-
section (2), any period during which any proceeding under this section is
stayed by an order or injunction of any Court shall be excluded.
(3) After completing the proceedings under sub-section (2), the Deputy
Commissioner of Taxes shall, with the approval of the Commissioner, make an
order requiring the person concerned to pay the aggregate of the amounts
referred to in sub-section (2) (b) and (c) and shall, if such person pays, or
makes satisfactory arrangement for the payment of, such amounts or any part
thereof, release the assets seized under section 117 or such part thereof as he
may deem fit in the circumstances of the case.
(4) Where the person concerned fails to pay, or to make satisfactory arrangements
for the payment of, any amount required to be paid in pursuance of the order
under sub-section (3) or any part thereof, he shall be deemed to be an assessee
in default in respect of the amount or part, and the Deputy Commissioner of
Taxes may retain in his custody the assets seized under section 117 on any part
thereof as are in his opinion sufficient for the realisation of the said amount or,
as the case may be, of such part thereof as has not been paid.

asadtax@gmail.com Page
 (5) If the Deputy Commissioner of Taxes is satisfied that the assets seized under
section 117 or any part thereof were held by a person for or on behalf of any
other person, he may proceed under this section against such other person, and
all the provisions of this section shall apply accordingly.
(6) If any person objects, for any reason, to an order made under sub-section (3),
he may, within 30 days of the date of such order, make an application, stating
therein the reasons for his objection, to the Commissioner for appropriate relief
in the matter; and the Commissioner may, after giving the applicant an
opportunity of being heard, pass such orders thereon as he may think fit.

119. Application of retained assets.-

(1) Where the assets retained under sub-section (4) of section 118 consist solely of
money, or partly of money and partly of other assets,-
(a) the Deputy Commissioner of Taxes shall first apply such money towards
payment of the amount in respect of which the person concerned is
deemed to be an assessee in default under that sub-section; and thereupon
such person shall be discharged of his liability to the extent of the money
so applied; and
(b) where, after application of the money under clause (a), any part of the
amount referred to therein remains unpaid, the Deputy Commissioner of
Taxes may recover the amount remaining unpaid, by sale of such of the
assets as do not consist of money in the manner movable property may
be sold by a Tax Recovery Officer for the recovery of tax; and for this
purpose he shall have all the powers of a Tax Recovery Officer under
this Ordinance.
(2) Nothing contained in sub-section (1) shall preclude the recovery of the amount
referred to in section 118 (4) by any other mode provided in this Ordinance for
the recovery of any liability of an assessee in default.
(3) Any assets or proceeds thereof which remain after the discharge of the liability
in respect of the amount referred to in section 118 (4) shall forthwith be made
over or paid to the persons from whose custody the assets were seized.

120. Power of Commissioner or Inspecting Joint Commissioner to revise the

erroneous order.-
(1) The Inspecting Joint Commissioner may call for and examine the record of
anyproceeding under this Ordinance if he considers that any order passed
therein by the Deputy Commissioner of Taxes is erroneous in so far as it is
prejudicial to the interests of the revenue, and may, after giving the assessee an
opportunity of being heard, and after making or causing to be made, such
inquiry as he thinks necessary, pass such order thereon as in his view the
 circumstances of the case would justify, including an order enhancing or
modifying the assessment or cancelling the assessment and directing a fresh
assessment to be made.
(2) Where the power of the Deputy Commissioner of Taxes isexercised by a
higher income tax authority under the provision ofsection 10, the proceedings
mentioned in sub-section (1) shall be takenby the Commissioner.
(3) No order shall be made under sub-section (1) after the expiryof four years
from the date of the order sought to be revised.
(4) Nothing in section 93 shall bar any proceeding under this section in applicable
cases.
(5) In this section, an order shall be deemed to be erroneous if, in the opinion of
the Commissioner or the Inspecting Joint Commissioner, as the case may be,-
(a) any income is misclassified in the order; or
(b) any provision of this Ordinance is misinterpreted in making the order; or
(c) the order is passed without making verification which should have been
made; or
(d) the order is passed allowing any relief without inquiring into the claim;
or
(e) the order, direction or instruction issued by the Board under section 8 has
not been observed or followed in the order; or
(f) the order is erroneous for reasons apparent from the record.

121. [deleted]

121A. Revisional power of Commissioner.-

(1) The Commissioner may on an application made by the assessee, call for the
record of any proceeding under this Ordinance in which an order has been
passed by any authority subordinate to him and may make such enquiry or
cause such enquiry to be made and, subject to the provisions of this Ordinance,
may pass such order thereon, not being an order prejudicial to the assessee, as
he thinks fit.
(2) The application for revision of an order under this Ordinance passed by any
authority subordinate to the Commissioner shall be made within 60 days of the
date on which such order is communicated to the assessee or within such
further period as the Commissioner may consider fit to allow on being satisfied
that the assessee was prevented by sufficient cause from making the
application within the said 60 days.
 (3) The Commissioner shall not exercise his power under sub-section (1) in
respect of any order-
(a) where an appeal against the order lies to the Appellate Joint
Commissioner or to the Commissioner (Appeals) or to the Appellate
Tribunal and the time within which such appeal may be made has not
expired or the assessee has not waived his right of appeal; or
(b) where the order is pending on an appeal before the Appellate Joint
Commissioner or it has been made the subject of an appeal to the
Commissioner (Appeals) or to the Appellate Tribunal.
(4) No application under sub-section (1) shall lie unless-
(a) it is accompanied by a fee of Tk. 200; and
(b) the undisputed portion of the tax has been paid.
Explanation.-The "undisputed portion of the tax" means the tax payable
under section 74.
(5) For the purposes of this section, an order by the Commissioner declining to
interfere shall not be construed as an order prejudicial to the assessee.
(6) Notwithstanding anything contained in this Ordinance, an application for
revision made under sub-section (1) shall be deemed to have been allowed if
the Commissioner fails to make an order thereon within a period of 60 days
from the date of filing the application.
Explanation.-For the purposes of this section, the Appellate Joint
Commissioner of Taxes shall be deemed to be an authority subordinate to the
Commissioner to whom the Deputy Commissioner of Taxes, whose order was
the subject-matter of the appeal order under revision, is subordinate.

122. Power to take evidence on oath, etc.-

(1) The Deputy Commissioner of Taxes, the Joint Commissioner of Taxes, the
Commissioner, the Director General, Central Intelligence Cell, the
Commissioner (Appeals) and the Appellate Tribunal shall, for the purposes of
this Ordinance, have the same powers as are vested in a Court under the Code
of Civil Procedure, 1908, when trying a suit in respect of the following
matters, namely:-
(a) discovery and inspection;
(b) enforcing the attendance of any person and examining him on oath or
affirmation;
(c) compelling the production of accounts or documents (including accounts
or documents relating to any period prior or subsequent to the income
year); and
 (d) issuing commissions for the examination of witness.
(2) The Deputy Commissioner of Taxes shall not exercise his powers under this
section for the purpose of enforcing the attendance of an employee of a
scheduled bank as a witness or compelling the production of books of account
of such a bank except with the prior approval of the Commissioner.
(3) Any authority mentioned in sub-section (1) may impound and retain in its
custody for such period as it considers fit, any books of accounts or other
documents produced before it in any proceeding under this Ordinance.
(4) Any proceeding under this Ordinance, before any authority mentioned in sub-
section (1), shall be deemed to be a judicial proceeding within the meaning of
section 193 and 228, and for the purposes of section 196, of the Penal Code.
 CHAPTER XV
IMPOSITION OF PENALTY

123. Penalty for not maintaining accounts in the prescribed manner.-

(1) Where any person, not having income from house property, has, without
reasonable cause, failed to comply with the provisions of any order or rule
made in pursuance of, or for the purposes of section 35(2), the Deputy
Commissioner of Taxes, may impose upon him a penalty at the rate of a sum
not exceeding-
(a) one and a half times the amount of tax payable by him;
(b) Tk. 100 where the total income of such person does not exceed the
maximum amount on which tax is not chargeable.
(2) Where any person, having income from house property, has, without
reasonable cause, failed to comply with the provisions of any order or rule
made in pursuance of, or for the purposes of section 35(2), the Deputy
Commissioner of Taxes, may impose upon him a penalty of 50% of taxes
payable on house property income or Tk. 5,000, whichever is higher.

124. Penalty for failure to file return, etc.-

(1) Where any person has, without reasonable cause, failed to file a return of
income required by or under sections 75, 77, 89, 91 or 93, the Deputy
Commissioner of Taxes may impose upon such person a penalty amounting to
10% of tax imposed on last assessed income subject to a minimum of Tk.
1,000, and in the case of a continuing default a further penalty of Tk. 50 for
every day during which the default continues:
Provided that such penalty shall not exceed-
(a) in case of an assessee, being an individual, whose income was not
assessed previously Tk. 5,000;
(b) in case of an assessee, being an individual, whose income was assessed
previously, 50% of the tax payable on the last assessed income or Tk.
1,000, whichever is higher.
(2) Where any person has, without reasonable cause, failed to-
(a) file or furnish any return, certificate, statement or information required
under sections 58, 75A,103A, 108, 108A, 109, or 110; or
(b) display the Taxpayer's Identification Number (TIN) certificate in
accordance with the provisions of section 184C,
the Deputy Commissioner of Taxes may impose upon such person-
 (a) where the return, statement or information under sections 75A, 108 or
108A has not been filed or furnished, a penalty amounting to 10% 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 Tk. 25,000 and in
case of a continuing default a further penalty of Tk. 500 for each day.

124A. Penalty for using fake Taxpayer's Identification Number.-

Where a person has, without reasonable cause, used Taxpayer's Identification
Number (TIN) of another person or used fake TIN on a return of income or any
other documents where TIN is required under this Ordinance, the Deputy
Commissioner of Taxes may impose a penalty not exceeding Tk. 20,000 on that
person.

124AA. Penalty for failure to verify Taxpayer’s Identification Number, etc.-

Where a person, without reasonable cause, fails to comply with the provision of sub-
section (5) or (6) of section 184A, the Deputy Commissioner of Taxes or any other
income tax authority authorised by the Board for this purpose may impose upon
such person a penalty-
(a) not exceeding Tk. 2,00,000 in the case of non-compliance with the provision
of sub-section (5);
(b) not exceeding Tk. 50,000 in the case of noncompliance with the provision of
sub-section (6).

125. Failure to pay advance tax, etc.-

Where, in the course of any proceeding in connection with the assessment of tax
under Chapter IX, the Deputy Commissioner of Taxes is satisfied that any person
has-
(a) without reasonable cause, failed to pay advance tax as required by section 64;
or
 (b) furnished under section 67 any estimate of tax payable by him which he knew,
or had reason to believe, to be untrue;
he may impose upon such person a penalty of a sum not exceeding the amount by
which the tax actually paid by him falls short of the amount that should have been
paid.

126. Penalty for non-compliance with notice.-

Where any person has, without reasonable cause, failed to comply with any notice
issued under sections 79, 80 or under sub-section (1) or (2) of section 83 the Deputy
Commissioner of Taxes may impose on him a penalty not exceeding the amount of
tax chargeable on the total income of such person.

127. Failure to pay tax on the basis of return.-

Where, in the course of any proceeding under this Ordinance, the Deputy
Commissioner of Taxes is satisfied that any person has not paid tax as required by
section 74, he may impose upon such person a penalty of a sum not exceeding 25%
of the whole of the tax or as the case may be, of such portion of the tax as has not
been paid.

128. Penalty for concealment of income.-

(1) Where, in the course of any proceeding under this Ordinance, the Deputy
Commissioner of Taxes, the Appellate Joint Commissioner, the Commissioner
(Appeals) or the Appellate Tribunal is satisfied that any person has, either in
the said proceeding or in any earlier proceeding relating to an assessment in
respect of the same income year,-
(a) concealed particulars of his income or furnished inaccurate particulars of
such income; or
(b) understated the value of any immovable property in connection with its
sale or transfer with a view to evading tax, he or it shall impose upon
such person a penalty of 15% of tax which would have been avoided had
the income as returned by such person or as the case may be, the value of
the immovable property as stated by him been accepted as correct:
Provided that if concealment referred to in clause (a) and (b) of this sub-
section or sub-section (2) is detected after a period of more than one year
from the year in which the concealment was first assessable to tax, the amount
of penalty shall increase by an additional 15% for each preceding assessment
year.
(2) For the purpose of sub-section (1), concealment of particulars of income or
 furnishing of inaccurate particulars of income shall include-
(a) the suppression of any item of receipt liable to tax in whole or in part, or
(b) showing any expenditure not actually incurred or claiming any deduction
therefrom.

129A. Penalty for incorrect or false audit report by chartered accountant.-

Where, in the course of any proceeding under this Ordinance, the Deputy
Commissioner of Taxes, the Appellate Joint Commissioner, the Commissioner of
Taxes (Appeals) or the Appellate Tribunal is satisfied beyond reasonable doubt that
the audit report-
(a) is not certified by a chartered accountant to the effect that the accounts are
maintained and the statements are prepared and reported in accordance with
the Bangladesh Accounting Standards (BAS) and the Bangladesh Financial
Reporting Standards (BFRS), and are audited in accordance with the
Bangladesh Standards on Auditing (BSA), or
(b) is false or incorrect,
he shall impose upon such chartered accountant a penalty of a sum not less than Tk.
50,000 but not more than Tk. 2,00,000.

129B. Penalty for furnishing fake audit report.-

Where, in the course of any proceeding under this Ordinance, the Deputy
Commissioner of Taxes, the Appellate Joint Commissioner, the Commissioner
(Appeals) or the Appellate Tribunal is satisfied beyond reasonable doubt that any
audit report furnished by an assessee along with the return of income or thereafter
for any income year is not signed by a chartered accountant or is believed to be
false, such authority or the Tribunal, as the case may be, shall impose upon such
assessee a penalty of a sum of Tk. 1,00,000 for that income year.

130. Bar to imposition of penalty without hearing.-

No order imposing a penalty under this Chapter or Chapter XIA shall be made on
any person unless such person has been heard or has been given a reasonable
opportunity of being heard.

131. Previous approval of Inspecting Joint Commissioner for imposing penalty.-

The Deputy Commissioner of Taxes shall not impose any penalty under this Chapter
without the previous approval of the Inspecting Joint Commissioner except in the
cases referred to in section 124.
132. Orders of penalty to be sent to Deputy Commissioner of Taxes.-
The Appellate Tribunal or any income tax authority, not being the Deputy
Commissioner of Taxes himself, making an order imposing any penalty under this
Ordinance shall forthwith send a copy of the order to the Deputy Commissioner of
Taxes, and thereupon all the provisions of this Ordinance relating to the recovery of
penalty shall apply as if such order were made by the Deputy Commissioner of
Taxes.

133. Penalty to be without prejudice to other liability.-

The imposition on any person of any penalty under this Chapter shall be without
prejudice to any other liability which such person may incur, or may have incurred,
under this Ordinance or under any other law for the time being in force.

133A. Revision of penalty based on the revised amount of income.-

(1) Where a penalty imposed under this Chapter is directly related to the amount
of income assessed under the provision of this Ordinance and the amount of
income is revised subsequently by an order made under this Ordinance, the
Deputy Commissioner of Taxes shall pass an order revising the order of
penalty at the time of revising the income.
(2) No order of enhancement of penalty shall be made unless the parties affected
thereby have been given a reasonable opportunity of being heard.
(3) Where, in the case mentioned in sub-section (1), an order of the revision of
penalty is not issued despite the fact that the relevant assessment order has
been revised, the parties affected can make an application to the Deputy
Commissioner of Taxes requesting the revision of the amount of penalty and
if no order has been made by within one hundred and 80 days from the receipt
of such application, the amount of penalty shall be deemed to have been
revised according to the revised amount of income and all the provisions of
this Ordinance shall have effect accordingly.
 CHAPTER XVI
RECOVERY OF TAX

134. Tax to include penalty, interest, etc.-

For the purposes of this Chapter, "tax" includes any sum imposed, levied or otherwise
payable under this Ordinance as penalty, fine, interest,delay interest, additional
amount, fee or otherwise; and the provisions of this chapter shall accordingly apply to
the recovery of any such sum.

135. Notice of demand.-

(1) Where any tax is payable in consequence of any assessment made or any
order passed under or in pursuance of this Ordinance, the Deputy
Commissioner of Taxes shall serve upon the assessee (which expression
includes any other person liable to pay such tax) a notice of demand in the
prescribed form specifying therein the sum payable and the time within
which, and the manner in which, it is payable, together with a copy of an
assessment order.
(1A) Where any amount of tax is refundable in consequence of any order, the
Deputy Commissioner of Taxes shall specify in the notice referred to in sub-
section (1) the sum refundable to the assessee together with a copy of an
assessment order and a refund voucher unless such refund is set off against
tax as per provision of section 152.
(1B) The Deputy Commissioner of Taxes shall not set off without giving the
assessee an opportunity of being heard and in that case refund voucher for the
amount due for refund, if any, shall be issued within a period not exceeding
30 days from the date of assessment.
(1C) Where the Deputy Commissioner of Taxes fails to issue refund voucher for
any refund due to an assessee within the time specified in this section, such
failure on the part of the Deputy Commissioner of Taxes shall be construed as
misconduct.
(2) Where the assessee upon whom a notice of demand has been issued under sub
section (1) makes an application in this behalf before the expiry of the date of
payment specified in the notice, the Deputy Commissioner of Taxes may
extend the time for payment or allow payment by installments subject to such
conditions, including payment of interest on the amount payable, as he may
think fit in the circumstances of the case.
(3) If the sum payable is not paid within the time specified in the notice of
demand issued under sub-section (1) or, as the case may be, within the time as
extended under sub-section (2), the assessee shall be deemed to be in default:
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

Provided that where the assessee has presented an appeal under this
Ordinance in respect of the assessment of imposition of the tax or of the
amount thereof, the Deputy Commissioner of Taxes shall treat the assessee as
not being in default for so long as such appeal is not disposed of.
(4) If, in a case where payment by installment has been allowed under sub-
section (2), the assessee commits default in paying any one of the installments
within the time fixed therefor, the assessee shall be deemed to be in default as
to the whole of the amount then outstanding, and the other installment or
installments shall be deemed to have been due on the same date as the
installment in respect of which default has actually been committed was due
for payment.
(5) Where an assessee has been assessed in respect of income arising outside
Bangladesh in a country the laws of which prohibit or restrict the remittance
of money to Bangladesh, the Deputy Commissioner of Taxes shall not treat
the assessee as in default in respect of that part of the tax which is due in
respect of such amount of income as cannot, by reason of the prohibition or
restriction, be brought into Bangladesh, and shall continue to treat the
assessee as not in default in respect of such part of the tax until the
prohibition or restriction is removed.
Explanation.-For the purposes of this section, income shall be deemed to have been
brought into Bangladesh if it has been or could have been utilized for the purposes of
any expenditure actually incurred by the assessee outside Bangladesh or if the
income, whether capitalized or not, has been brought into Bangladesh in any form.

136. [deleted]

137. Penalty for default in payment of tax.-

(1) Where an assessee is in default or is deemed to be in default in making payment
of tax, the Deputy Commissioner of Taxes may direct that, in addition to the
amount of tax in arrears, a sum not exceeding that amount shall be recovered
from the assessee by way of penalty.
(2) Where, as a result of any final order, the amount of tax, with respect to the
default in the payment of which the penalty was levied, has been wholly
reduced, the penalty levied shall be cancelled and the amount of penalty paid
shall be refunded.

138. Certificate for recovery of tax.-

(1) When an assessee is in default or is deemed to be in default in making payment
of tax, the Deputy Commissioner of Taxes may forward to the Tax Recovery
Officer a certificate for recovery of the tax, under his signature specifying the

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 amount of arrears due from the assessee; and such certificate may be issued
notwithstanding that proceedings for recovery of the arrears by any other mode
have been taken.
(2) A certificate under sub-section (1) may be forwarded to-
(a) the Tax Recovery Officer within whose jurisdiction the assessee carried
on his business or profession or the principal place of business or
profession of the assessee is situate; or
(b) the Tax Recovery Officer within whose jurisdiction the assessee resides or
any movable or immovable property of the assessee is situate; or
(c) the Tax Recovery Officer who has jurisdiction in relation to the assessee
whose income is assessable by the Deputy Commissioner of Taxes
forwarding the certificate.

139. Method of recovery by Tax Recovery Officer.-

(1) Upon receipt of a certificate forwarded to him under section 138, the Tax
Recovery Officer shall, notwithstanding anything contained in any other law for
the time being in force, proceed, in accordance with the rules made in this
behalf by the Board, to recover from the assessee the amount specified in the
certificate by one or more of the following modes, namely :-
(a) attachment and sale, or sale without attachment, of any movable or
immovable property of the assessee;
(b) arrest of the assessee and his detention in prison;
(c) appointment of a receiver for the management of the movable and
immovable properties of the assessee.
(2) While recovering under sub-section (1) the amount specified in the certificate
forwarded to him, the Tax Recovery Officer may also recover in the same
manner from the assessee in default, in addition to such amount, any cost and
charges, including expenses on the service of any notice or warrant, incurred in
the proceedings for the recovery of the tax in arrears.
(3) If the Tax Recovery Officer to whom a certificate is forwarded under section
138 is not able to recover the entire amount by the sale of movable and
immovable properties of the assessee within his jurisdiction, but has
information that the assessee has property within the jurisdiction of another Tax
Recovery Officer, he may send the certificate to such other Tax Recovery
Officer or to the Tax Recovery Officer within whose jurisdiction the assessee
resides; and the Tax Recovery Officer to whom the certificate has been so sent
shall proceed to recover under this Chapter the amount remaining unrecovered
as if the certificate was forwarded to him by the Deputy Commissioner of
Taxes.
140. Power of withdrawal of certificate and stay of proceeding.-
(1) Notwithstanding the issue of a certificate for recovery under section 138, the
Deputy Commissioner of Taxes shall have power to withdraw, or correct any
clerical or arithmetical error in the certificate by sending an intimation to that
effect to the Tax Recovery Officer.
(2) Where the order giving rise to a demand of tax for which a certificate for
recovery has been issued has been modified in appeal or other proceedings
under this Ordinance and, as a consequence thereof, the demand is reduced but
the order is the subject matter of further proceedings under this Ordinance, the
Deputy Commissioner of Taxes shall stay the recovery of such part of the
amount of the certificate as pertains to the said reduction for the period for
which the appeal or other proceedings remain pending.
(3) Where a certificate for recovery has been issued and subsequently the amount
of outstanding demand is reduced as a result of appeal or other proceedings
under this Ordinance, the Deputy Commissioner of Taxes shall, when the order,
which was the subject-matter of such appeal or other proceeding, has become
final and conclusive, amend the certificate or withdraw it, as the case may be.
(4) The Deputy Commissioner of Taxes shall communicate to the Tax Recovery
Officer any orders of cancellation, correction, stay of proceeding, withdrawal or
amendment, as the case may be, of a certificate for recovery.

141. Validity of certificate for recovery not open to dispute.-

When the Deputy Commissioner of Taxes forwards a certificate for recovery under
section 138 to a Tax Recovery Officer, it shall not be open to the assessee to dispute
before the Tax Recovery Officer the correctness of the assessment; and the Tax
Recovery Officer shall not entertain any objection to the certificate on any ground
whatsoever.

142. Recovery of Tax through Collector of District.-

(1) The Deputy Commissioner of Taxes may forward to the Collector of District in
which the office of the Deputy Commissioner of Taxes is situate or the district
in which the assessee resides or owns property or carries on business or
profession, a certificate under his signature specifying the amount of arrears due
from an assessee, and the Collector, on receipts of such certificate, shall
proceed to recover, from such assessee the amount specified therein as if it were
an arrear of land revenue.
(2) Without prejudice to any other powers which the Collector of District may have
in this behalf, he shall, for the purposes of recovery of the amount specified in
the certificate for recovery forwarded to him under sub-section (1), have the
 powers which a Civil Court has under the Code of Civil Procedure, 1908, for
the purposes of recovery of an amount due under a decree.
(3) The Deputy Commissioner of Taxes may, at any time, recall from the Collector
of District a certificate forwarded to him under sub-section (1) and upon such
recall, all proceeding commenced in pursuance of the certificate shall abate:
Provided that the recall of a certificate shall not affect any recoveries made by
the Collector before the recall as if the certificate had not, to the extent of such
recovery, been recalled; nor shall the recall of a certificate issued at any time
prevent the recovery, by issue of a fresh certificate, of any amount which was
recoverable at the time the certificate so recalled was issued.

142A. Recovery of tax through Special Magistrates.-

(1) Without prejudice to the provisions of section 142, the Deputy Commissioner
of Taxes may forward to a Magistrate of the First Class, specially empowered
in this behalf by the Government, hereinafter referred to as "the Special
Magistrate, a certificate under his signature specifying the amount of arrears
due from the assessee, and the Special Magistrate shall, on receipt of such
certificate, proceed to recover from the assessee the amount specified therein as
if it were an arrear of land revenue and the Special Magistrate were a Collector
of District.
(2) Without prejudice to any other powers of a Collector of District which the
Special Magistrate may have in this behalf, he shall, for the purposes of
recovery of the amount specified in the certificate for recovery forwarded to
him under sub-section (1), have the powers which a Civil Court has under the
Code of Civil Procedure, 1908, for the purposes of recovery of an amount due
under a decree.
(3) The Deputy Commissioner of Taxes may, at any time, recall from the Special
Magistrate a certificate forwarded to him under sub-section (1) and upon such
recall, all proceedings commenced in pursuance of the certificate shall abate:
Provided that the recall of a certificate shall not affect any recoveries made by
the Special Magistrate before the recall as if the certificate had not, to
the extent of such recovery, been recalled; nor shall the recall of a certificate
issued at any time prevent the recovery, by issue of a fresh certificate of any
amount which was recoverable at the time the certificate so recalled was
issued.

143. Other modes of recovery.-

(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 in sub-section (1A) or (2).
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(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-
(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 assessee 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.
(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.

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(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 municipa1 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

144. Agreement to avoid double taxation.-

(1) The Government may enter into an agreement with the Government of any
other country for the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income leviable under this Ordinance and
under the corresponding law in force in that country, and may, by notification
in the official Gazette, make such provisions as may be necessary for
implementing the agreement.
(2) Where any such agreement as is referred to in sub-section (1) is made with the
Government of any country, the agreement and the provisions made for
implementing it shall, notwithstanding anything contained in any other law for
the time being in force, have effect in so far as they provide for-
(a) relief from the tax payable under this Ordinance;
(b) determining the income accruing or arising, or deemed to be accruing or
arising, to non-residents from sources within Bangladesh;
(c) where all the operations of business or profession are not carried on
within Bangladesh, determining the income attributable to operations
carried on within or outside Bangladesh, or the income chargeable to tax
in Bangladesh in the hands of non-residents, including their agencies,
branches or establishments in Bangladesh;
(d) determining the income to be attributable to any person resident in
Bangladesh having any special relationship with a non-resident;
(e) recovery of tax leviable under this Ordinance and under the corresponding
law in force in that country; or
(f) exchange of information for the prevention of fiscal evasion or avoidance
of tax on income chargeable under this Ordinance and under the
corresponding law in force in that country.
(3) Any agreement made in pursuance of sub-section (1) may include provisions
for relief from tax for any period before the commencement of this Ordinance
or before the making of the agreement and provisions as to income which are
not themselves subject to double taxation.
(4) The provisions of the Seventh Schedule shall have effect where an agreement
under this section provides that the tax payable under the laws of the country
concerned shall be allowed as a credit against the tax payable in Bangladesh.

145. Relief in respect of income arising outside Bangladesh.-

If any person who is resident in Bangladesh in any year proves to the satisfaction of
the Deputy Commissioner of Taxes that, in respect of any income which has accrued
or arisen to him during that year outside Bangladesh, he has paid tax, by deduction or
otherwise, in any country with which there is no reciprocal agreement for relief or
avoidance of double taxation, the Deputy Commissioner of Taxes may, subject to
such rules as the Board may make in this behalf, deduct from the tax payable by him
under this Ordinance a sum equal to the tax calculated on such doubly taxed income
at the average rate of tax of Bangladesh or the average rate of tax of the said country,
whichever is the lower.
Explanation.-The expression "average rate of tax" means the rate arrived at by
dividing the amount of tax calculated on the total income by such income.
 CHAPTER XVIII
REFUNDS

146. Entitlement to refund.-

(1) A person, who satisfies the Deputy Commissioner of Taxes or other authority
appointed by the Government in this behalf that the amount of tax paid by him
or on his behalf, or treated as paid by him or on his behalf, for any year exceeds
the amount with which he is properly chargeable under this Ordinance for that
year, shall be entitled to a refund of any such excess.
(2) Where the income of the person is included under any provision of this
Ordinance in the total income of any other person, such other person alone shall
be entitled to a refund under this chapter in respect of such income.

147. Claim of refund for deceased or disabled persons.-

Where through death, incapacity, insolvency, liquidation or other cause, a person, is
unable to claim or receive any refund due to him, his legal representative, or the
trustee, guardian or receiver, as the case may be, shall be entitled to claim or receive
such refund for the benefit of such person or his estate.

148. Correctness of assessment, etc., not to be questioned.-

In any claim for refund under this chapter, it shall not be open to the claimant to
question the correctness or validity of any assessment or other matter which has
become final and conclusive or to ask for a review of the same, and the claimant shall
not be entitled to any relief on any such issue raised except refund of the tax paid in
excess.

149. Refund on the basis of orders in appeal.-

Where, as a result of any order passed in appeal or other proceeding under this
Ordinance, refund of any amount becomes due to an assessee, the Deputy
Commissioner of Taxes shall, refund the amount, unless set off against tax or treated
as payment of tax as per provisions of section 152, to the assessee, within 60 days
from the date on which the refund has become due without his having to make any
claim in that behalf.

150. Form of claim and limitation.-

(1) Every claim for refund under sections 146 and 147 shall be made in such form
and verified in such manner as may be prescribed.
 (2) [deleted]

151. Interest on delayed refund.-

Where a refund due to an assessee is not paid within 2 months of the date of the claim
for refund, or refund becoming due consequent upon any order passed in appeal or
other proceeding under this Ordinance interest at the rate of 7.5% per annum shall be
payable to the assessee on the amount of refund from the month following the said 2
months to the date of issue of the refund.

152. Adjustment of refund against tax.-

Where, under the provisions of this Ordinance, the Income-tax Act, 1922, the Gift-tax
Act, 1963, or the Wealth-tax Act,1963, any refund or repayment is found to be due to
any person, the amount to be refunded or repaid or any part thereof may be set off
against the tax, payable by that person under this Ordinance or treated, at the option
in writing of that person, as payment of tax payable under section 64 or section 74
thereof.
 CHAPTER XVIIIA
SETTLEMENT OF CASES
[deleted]
 CHAPTER XVIIIB
ALTERNATIVE DISPUTE RESOLUTION

152F. Alternative Dispute Resolution.-

(1) Notwithstanding anything contained in Chapter XIX any dispute of an assessee
lying with any income tax authority, Taxes Appellate Tribunal or Court may
be resolved through Alternative Dispute Resolution (hereinafter referred to as
ADR) in the manner described in the following sections of this Chapter and
rules made thereunder.
(2) Board may, by notification in the official Gazette, specify the class or classes
of assessees eligible for ADR or extend the area or areas in which these
provisions may be applied.

152G. Commencement of ADR.-

The ADR as mentioned in this Chapter shall come into force on such date and in
such class or classes of assessees as the Board may determine by notification in the
official Gazette.

152H. Definition.-
For the purposes of this Chapter, unless the context otherwise requires-
(a) "authorised representative" means an authorised representative mentioned in
sub-section (2) of section 174;
(b) "bench" means bench of Taxes Appellate Tribunal;
(c) "Commissioner's Representative" means an officer or officers nominated by
the Commissioner of Taxes from among the income tax authorities under
section 3 to represent in the Alternative Dispute Resolution process under this
Chapter;
(d) "court" means the Supreme Court;
"dispute" means an objection of an assessee regarding-
(i) assessment of income above the income declared by him in his return of
income for the relevant year, or
(ii) order of an appellate authority under chapter XIX which results in
assessment of income which is above the declared amount in his return
of income;

152I. Application for alternative resolution of disputes.-

 (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
income-tax authority, tribunal or court.
(3) All cases dealt with under sub-section (2) are subject to permission of the
concerned income tax authority, 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.
(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.

152II. Stay of proceeding in case of pending appeal or reference at Appellate Tribunal

or High Court Division.-
Where an assessee has filed an application for ADR for any income year and for the
same income year, the Deputy Commissioner of Taxes has filed an appeal before the
Appellate Tribunal or the Commissioner has made a reference before the High Court
Division and no decision has been made in that respect by the Appellate Tribunal or
High Court Division as the case may be, the proceeding of such appeal or reference
shall remain stayed till disposal of the application for ADR.

152J. Eligibility for application for ADR.-

An assessee shall not be eligible for application to ADR if he fails to pay tax payable
under section 74 where the return of income for the relevant year or years has been
submitted.
152K. Appointment of Facilitator and his duties and responsibilities.-
For the purposes of resolving a dispute in an alternative way, the Board may select or
appoint Facilitator and determine his fees, duties and responsibilities by rules.

152L. Rights and duties of the assessee for ADR.-

(1) Subject to sub-section (2), the assessee applying for ADR shall be allowed to
negotiate himself personally or alongwith an authorized representative, with
the Commissioner's Representative for the concerned dispute under the
facilitation and supervision of the Facilitator.
(2) The Facilitator may exempt the applicant-assessee from personally attending
the negotiation process and may be allowed to represent himself by an
authorised representative, if he has sufficient reasons for his absence.
(3) While submitting an application for ADR, the applicant-assessee shall submit
all related papers and documents, disclose all issues of law and facts.
(4) The applicant-assessee shall be cooperative, interactive, fair and bonafide
while negotiating for resolution.
(5) If the applicant-assessee makes any untrue declaration, submits any false
document and obtains an order or assessment on that basis, the order or
assessment shall be set aside, if so detected, and appropriate legal action be
initiated against him.
(6) The applicant-assessee shall be liable to pay any taxes, if due as a result of
negotiation with the time frame as decided in the ADR.

152M. Nomination and responsibility of the Commissioner's Representative in ADR.-

(1) The respective Commissioner of Taxes may nominate any income tax
authority subordinate to him, not below the rank of Deputy Commissioner of
Taxes to represent him in the negotiation process of the ADR.
(2) The representative so nominated under sub-section (1) shall attend the
meeting(s) of ADR negotiation process and sign the agreement of such
negotiation process, where an agreement is reached.

152N. Procedures of disposal by the Alternative Dispute Resolution.-

(1) Upon receiving the application of ADR, the Facilitator shall forward a copy of
the application to the respective Deputy Commissioner of Taxes and also call
for his opinion on the grounds of the application and also whether the
conditions referred to in sections 152I and 152J have been complied with.
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(2) If the Deputy Commissioner of Taxes fails to give his opinion regarding
fulfillment of the conditions within 5 working days from receiving the copy
mentioned in clause (c) of sub-section (3), the Facilitator may deem that the
conditions thereto have been fulfilled.
(3) The Facilitator may-
(a) notify in writing the applicant and the Commissioner of Taxes or the
Commissioner's Representative to attend the meetings for settlement of
disputes on a date mentioned in the notice;
(b) if he considers it necessary to do so, adjourn the meeting from time to
time;
(c) call for records or evidences from the Deputy Commissioner of Taxes or
from the applicant before or at the meeting, with a view to settle the
dispute; and
(d) before disposing of the application, cause to make such enquiry by any
income-tax authority as he thinks fit.
(4) The Facilitator will assist the applicant-assessee and the Commissioner's
Representative to agree on resolving the dispute or disputes through
consultations and meetings.

152O. Decision of the ADR.-

(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 applicant-assessee and the
concerned Commissioner's Representative for non-cooperation of either of the
parties, the Facilitator shall communicate it, in writing recording reasons

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thereof, within 15 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 to have been reached if the Facilitator fails to
make an agreement within 2 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 15
days from the date on which the Facilitator and the parties have signed the
agreement.

152P. Effect of agreement.-

(1) Notwithstanding anything contained in any provision of this Ordinance, where
an agreement is reached, under sub-section (9) of section 152O, it shall be
binding on both the parties and it cannot be challenged in any authority,
Tribunal or court either by the assessee or any other income tax authority.
(2) Every agreement, concluded under section 152O shall be conclusive as to the
matters stated therein and no matter covered by such agreement shall, save as
otherwise provided in this Ordinance, be reopened in any proceeding under
this Ordinance.

152Q. Limitation for appeal where agreement is not concluded.-

(1) Notwithstanding anything contained in any provision of this Ordinance, where
an agreement is not reached under this Chapter, wholly or in part, the assessee
may prefer an appeal-
(a) to the Appellate Joint Commissioner of Taxes or Appellate Additional
Commissioner of Taxes or Commissioner of Taxes (Appeals), as the case
may be, where the dispute arises out of an order of a Deputy
Commissioner of Taxes;
(b) to the Taxes Appellate Tribunal where the dispute arises out of an order
of the Appellate Joint Commissioner of Taxes or Appellate Additional
Commissioner of Taxes or Commissioner of Taxes (Appeals), as the case
may be; and
(c) to the respective appellate authority or court from where the assessee-

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 applicant has got permission to apply for ADR.
(2) In computing the period of limitations for filing appeal, the time elapsed
between the filing of the application and the decision or order of the ADR shall
be excluded.
Explanation.- For the purpose of this section, ―prefer an appeal‖ means the revival
of the appeal with an intimation in writing to the respective appellate authority.

152R. Post verification of the agreement.-

(1) The Board may monitor the progress of disposal of the application for ADR in
the manner as may be prescribed and ensure necessary support and
coordination services.
(2) Copies of all agreement or matter of disagreement shall be sent by the
Facilitator to the respective Commissioner and Board for verification and
ascertainment of whether the agreement is legally and factually correct.
(3) After receiving the copy of agreement or matter of disagreement, if it appears
to the Board that the alleged agreement is obtained by fraud, misrepresentation
or concealment of fact causing loss of revenue, then such agreement shall be
treated as void and the matter shall be communicated to the concerned
authorities, Tribunal or court for taking necessary action.

152S. Bar on suit or prosecution.-

No civil or criminal action shall lie against any person involved in the ADR process
before any court, tribunal or authority for any action taken or agreement reached in
good faith.
 CHAPTER XIX
APPEAL AND REFERENCE

153. Appeal to appellate income tax authority.-

(1) Any person aggrieved by order of an income tax authority regarding the
following matters may appeal to the respective appellate income-tax
authority-
(i) assessment of income;
(ii) computation of tax liability or refund;
(iii) set off or carry forward of loss;
(iv) imposition of any penalty or interest;
(v) charge and computation of surcharge or any other sum;
(vi) credit of tax; and
(vii) payment of a refund.
(2) Subject to sub-section (3), an appeal in the following cases shall be made
only to the Commissioner of Taxes (Appeals)-
(i) appeal by a company;
(ii) appeal against an order under section 120;
(iii) appeal against an order of adjustment or penalty involving
international transactions as defined in 107A;
(iv) appeal against an order, in matters mentioned in sub-section (1), made
by an income tax authority in the rank of a Joint Commissioner of
Taxes or above.
(3) The Board may-
(i) assign any appeal to any appellate income-tax authority;
(ii) transfer an appeal from one appellate income-tax authority to another
appellate income-tax authority.
(4) No appeal shall lie in respect of an income which is computed as a share of
the taxed income.
(5) No appeal shall lie against any order of assessment in the following cases-
(i) Where the return of income - if tax under section 74 has not
was filed been paid
(ii) Where no return of income - if at least 10% of the tax as
was filed determined by the Deputy
Commissioner of Taxes has not
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

been paid:
Provided that where the tax on the basis of return has been paid by the
appellant before filing the appeal and the appellate income-tax authority is
convinced that the appellant was barred by sufficient reason from paying the
tax before filing the return, it may allow the appeal for hearing.
Explanation.- In this section, appellate income-tax authority means the
Commissioner of Taxes (Appeals) or the Appellate Joint Commissioner of Taxes, as
the case may be.

154. Form of appeal and limitation.-

(1) Every appeal under section 153 shall be drawn up in such form and verified
in such manner as may be prescribed and shall be accompanied by a fee of
Tk. 200.
(1A) The Board may, by notification in the official Gazette,-
(a) specify 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.
(2) Subject to sub-section (3), an appeal shall be presented within 45 days,-
(a) if it relates to any assessment or penalty, from the date of service of the
notice of demand relating to the assessment or penalty, as the case may
be; and
(b) in any other case, from the date on which the intimation of the order to
be appealed against is served.
(3) The Appellate Joint Commissioner or the Commissioner (Appeals), as the
case may be, may admit an appeal after the expiration of the period of
limitation specified in sub-section (2) if he is satisfied that the appellant was
prevented by sufficient cause from presenting the appeal within that period.

155. Procedure in appeal before the Appellate Joint Commissioner or the

Commissioner (Appeals).-
(1) The Appellate Joint Commissioner or the Commissioner (Appeals) shall fix a
day and place for the hearing of the appeal and give notice thereof to the
appellant and the Deputy Commissioner of Taxes against whose order the
appeal has been preferred.
(2) The appellant and the Deputy Commissioner of Taxes shall have the right to
be heard at the hearing of the appeal either in person or by a representative.
(3) The Appellate Joint Commissioner or the Commissioner (Appeals) may, if he
considers it necessary to do so, adjourn the hearing of the appeal from time to

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time.
(4) The Appellate Joint Commissioner or the Commissioner (Appeals) may,
before or at the hearing of an appeal, allow the appellant to go into any ground
of appeal not earlier specified in the grounds of appeal already filed if he is
satisfied that the omission of that ground from the form of appeal was not
wilful or unreasonable.
(5) The Appellate Joint Commissioner or the Commissioner (Appeals) may,
before or at the hearing of an appeal, make such enquiry as he thinks fit or call
for such particulars as he may require respecting the matters arising in appeals
or cause further enquiry to be made by the Deputy Commissioner of Taxes.
(6) While hearing an appeal the Appellate Joint Commissioner or the
Commissioner (Appeals) shall not admit any documentary material or
evidence which was not produced before the Deputy Commissioner of Taxes
unless he is satisfied that the appellant was prevented by sufficient cause from
producing such material or evidence before the Deputy Commissioner of
Taxes.

156. Decision in appeal by the Appellate Joint Commissioner or the Commissioner

(Appeals).-
(1) In disposing of an appeal, the Appellate Joint Commissioner or the
Commissioner (Appeals) may,-
(a) in the case of an order of assessment, confirm, reduce, enhance, set aside
or annul the assessment;
(b) in the case of an order imposing a penalty, confirm, set aside or cancel
such order or vary it so as either to enhance or to reduce the penalty; and
(c) in any other case, pass such order as he thinks fit:
Provided that an order of assessment or penalty shall not be set aside except
in a case where the Appellate Joint Commissioner or the Commissioner
(Appeals) is satisfied that a notice on the assessee has not been served in
accordance with the provisions of section 178.
(2) The Appellate Joint Commissioner or the Commissioner (Appeals) shall not
enhance an assessment or a penalty or reduce the amount of refund unless the
appellant has been given a reasonable opportunity of showing cause against
such enhancement or reduction.
(3) The order of the Appellate Joint Commissioner or the Commissioner (Appeals)
disposing of an appeal shall be in writing and shall state the points for
determination, the decision thereon and the reasons for the decision.
(4) Where, as a result of an appeal, any change is made in the assessment of a firm
or an association of persons, the Appellate Joint Commissioner or the

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 Commissioner (Appeals) may direct the Deputy Commissioner of Taxes to
amend accordingly any assessment made on any partner of the firm or any
member of the association.
(5) On the disposal of an appeal, the Appellate Joint Commissioner or the
Commissioner (Appeals) shall communicate the order passed by him to the
appellant, the Deputy Commissioner of Taxes and the Commissioner within 30
days of the passing of such order.
(6) Notwithstanding anything contained in this Ordinance, an appeal to the
Appellate Joint Commissioner or the Commissioner (Appeals) shall be deemed
to have been allowed if the Appellate Joint Commissioner or the
Commissioner (Appeals) fails to make an order thereon within one hundred
and 50 days from the end of the month on which the appeal was filed.

157. Appeal against order of Tax Recovery Officer.-

Any person aggrieved by an order of the Tax Recovery Officer under section 139
may, within 30 days from the date of service of the order, appeal to the Inspecting
Joint Commissioner to whom the Tax Recovery Officer is subordinate, and the
decision of the Inspecting Joint Commissioner on such appeal shall be final.

158. Appeal to the Appellate Tribunal.-

(1) An assessee may appeal to the Appellate Tribunal if he is aggrieved by an
order of-
(a) an Appellate Joint Commissioner or the Commissioner (Appeals), as the
case may be, under section 128 or 156.
(b) [deleted]
(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 10% 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 74:
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 himand shall pass such
order in this regard as he thinks fit within thirty days from date of the receipt
of such application.
(2A) The Deputy Commissioner of Taxes may, 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) [deleted]
(4) Every appeal under sub-section (1) or sub-section (2A) shall be filed within
60 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
60 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 and shall except in the case of an appeal under
sub-section (2A) be accompanied by a fee of Tk. 1,000 (one thousand).
(6) The Board may, by notification in the official Gazette,-
(a) specify 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.

159. Disposal of appeal by the Appellate Tribunal.-

(1) The Appellate Tribunal may, after giving both the parties to the appeal an
opportunity of being heard, pass such orders on the appeal as it thinks fit.
(2) Before disposing of any appeal, the Appellate Tribunal may call for such
particulars as it may require respecting the matters arising in the appeal or cause
further enquiry to be made by the Deputy Commissioner of Taxes.
(3) Where, as a result of the appeal, any change is made in the assessment of a firm
or association of persons, or a new assessment of a firm or association of
persons is ordered to be made, the Appellate Tribunal may direct the Deputy
Commissioner of Taxes to amend accordingly any assessment made on any
partner of the firm or any member of the association.
(4) The Appellate Tribunal shall communicate its order on the appeal to the
assessee and to the Commissioner within 30 days from the date of such order.
(5) Save as hereafter provided in this Chapter, the orders passed by the Appellate
Tribunal on appeal shall be final.
(6) Notwithstanding anything contained in this Ordinance an appeal filed by an
assessee to the Appellate Tribunal shall be deemed to have been allowed if the
Appellate Tribunal fails to make an order thereon within a period of 6 months
from the end of the month in which the appeal was filed and where a case is
heard by two members and an additional member is appointed for hearing the
case because of the difference of decision of the two members, the period shall
be 8 months from the end of the month in which the appeal was filed:
 Provided that the provisions of this sub-section shall not apply to an appeal
filed by an assessee at any time before the first day of July, 1991:
Provided further that the provisions of this sub-section shall, in relation to an
appeal filed by an assessee at any time during the period between the first
day of July, 1995 and the thirtieth day of June, 1996 (both days inclusive), have
effect as if for the words "2 years" the words "3 years" were substituted on the
day on which section 21 of অর্ আথ ইন, ১৯৯১ came into force:

Provided further that the provisions of this sub-section shall, in relation to an

appeal filed by an assessee on or after the first day of July, 1999, have effect as
if for the words "2 years from the end of the year" the words "2 years from the
end of the month" were substitute:
Provided further that the provisions of this sub-section shall in relation to an
appeal filed by an assessee before the first day of July, 2002 have effect as if
the words "6 months from the end of the month in which appeal was filed" were
substituted by the words "1 year from the end of the year in which appeal was
filed:
Provided further that the appeals filed by the Deputy Commissioner of Taxes
on or before the thirtieth day of June, 2002 on which no order was passed by
the Appellate Tribunal till that date shall be deemed to have been withdrawn
from first of July, 2002.

160. Reference to the High Court Division.-

(1) The assessee or the Commissioner may, within 90 days from the date of receipt
of the order of the Appellate Tribunal communicated to him under section 159,
by application in the prescribed from, accompanied, in the case of an
application by the assessee, by a fee of Tk. 2,000, refer to the High Court
Division any question of law arising out of such order:
Provided that no reference under sub-section (1) shall lie against an order of
the Taxes Appellate Tribunal, unless the assessee has paid the following tax at
the rate of-
(a) 15% of the difference between the tax as determined on the basis of the
order of the Taxes Appellate Tribunal and the tax payable under section
74 where tax demand does not exceed taka 10 lakh;
(b) 25% of the difference between the tax as determined on the basis of the
order of the Taxes Appellate Tribunal and the tax payable under section
74 where tax demand exceeds taka 10 lakh:
Provided further that the Board may, on an application made in this
behalf, modify or waive, in any case, the requirement of such payment.
(2) An application under sub-section (1) shall be in triplicate and shall be
 accompanied by the following documents, namely:-
(a) certified copy, in triplicate, of the order of the Appellate Tribunal out of
which the question of law has arisen;
(b) certified copy, in triplicate, of the order of the Deputy Commissioner of
Taxes, the Inspecting Joint Commissioner or the Appellate Joint
Commissioner, or the Commissioner (Appeals), as the case may be, which
was the subject-matter of appeal before the Appellate Tribunal; and
(c) certified copy, in triplicate, of any other document the contents of which
are relevant to the question of law formulated in the application and which
was produced before the Deputy Commissioner of Taxes, the Inspecting
Joint Commissioner, the Appellate Joint Commissioner or the
Commissioner (Appeals) or the Appellate Tribunal, as the case may be, in
the course of any proceedings relating to any order referred to in clause
(a) or (b).
(3) Where the assessee is the applicant, the Commissioner shall be made a
respondent; and where the Commissioner is the applicant the assessee shall be
made a respondent:
Provided that where an assessee dies or is succeeded by another person or is a
company which is being wound up, the application shall not abate and may, if
the assessee was the applicant, be continued by, and if he was the respondent,
be continued against, the executor, administrator or successor or other legal
representative of the assessee ,or by or against the liquidator or receiver, as the
case may be.
(4) On receipt of the notice of the date of hearing of the application, the respondent
shall, at least 7 days before the date of hearing, submit in writing a reply to the
application; and he shall therein specifically admit or deny whether the question
of law formulated by the applicant arises out of the order of the Appellate
Tribunal.
(5) If the question formulated by the applicant is, in the opinion of the respondent,
defective, the reply shall state in what particulars the question is defective and
what is the exact question of law, if any, which arises out of the said order; and
the reply shall be in triplicate and be accompanied by any documents which are
relevant to the question of law formulated in the application and which were
produced before the Deputy Commissioner of Taxes, the Inspecting Joint
Commissioner, the Appellate Joint Commissioner, the Commissioner (Appeals)
or the Appellate Tribunal, as the case may be, in the course of any proceedings
relating to any order referred to in subsection (2) (a) or (b).
(6) Section 5 of the Limitation Act, 1908 shall apply to an application under sub-
section (1).
161. Decision of the High Court Division.-
(1) Where any case has been referred to the High Court Division under section 160
it shall be heard by a bench of not less than two judges and the provisions of
section 98 of the Code of Civil Procedure 1908 (V of 1908), shall, so far as may
be, apply in respect of such case.
(2) The High Court Division shall, upon hearing any case referred to it under
section 160, decide the question of law raised thereby and shall deliver its
judgement thereon stating the grounds on which such decision is founded and
shall send a copy of such judgement under the seal of the Court and signature of
the Registrar to the Appellate Tribunal which shall pass such orders as are
necessary to dispose of the case in conformity with the judgement.
(3) The costs in respect of a reference to the High Court Division under section 160
shall be in the discretion of the Court.
(4) Notwithstanding that a reference has been made under section 160 to the High
Court Division, tax shall be payable in accordance with the assessment made in
the case unless the recovery thereof has been stayed by the High Court
Division.

162. Appeal to the Appellate Division.-

(1) An appeal shall lie to the Appellate Division from any judgement of the High
Court Division delivered under section 161 in any case which the High Court
Division certifies to be a fit one for appeal to the Appellate Division.
(2) The provisions of the Code of Civil Procedure, 1908, relating to appeals to the
Appellate Division shall, so far as may be, apply in the case of appeals under
this section in like manner as they apply in the case of appeals from decrees of
the High Court Division:
Provided that nothing in this sub-section shall be deemed to affect the
provision of section 161 (2) or (4):
Provided further that the High Court Division may, on petition made for the
execution of the order of the Appellate Division in respect of any costs awarded
thereby, transmit the order for execution to any Court subordinate to the High
Court Division.
(3) Where the judgment of the High Court Division is varied or reversed in appeal
under this section, effect shall be given to the order of the Appellate Division in
the manner provided in section 161 (2) and (4) in respect of a judgment of the
High Court Division.
(4) The provisions of sub-section (3) and sub-section (4) of section 161 relating to
costs and payment of tax shall apply in the case of an appeal to the Appellate
Division as they apply to a reference to the High Court Division under section
160.
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CHAPTER XX
PROTECTION OF INFORMATION

163. Statements, returns, etc. to be confidential.-

(1) Save as provided in this section, all particulars or information contained in the
following shall be confidential and shall not be disclosed, namely:-
(a) any statement made, return furnished or accounts or documents produced
under the provisions of this Ordinance;
(b) any evidence given, or affidavit or deposition made, in the course of any
proceedings under this Ordinance other than proceedings under Chapter
XXI;
(c) any record of any assessment proceedings or any proceeding relating to
the recovery of demand under this Ordinance.
(2) Notwithstanding anything contained in the Evidence Act, 1872 or any other
law for the time being in force, no Court or other authority shall, save as
provided in this Ordinance, be competent to require any public servant to
produce before it any return, accounts or documents contained in, or forming a
part of, the records relating to any proceeding under this Ordinance or to give
evidence before it in respect thereof.
(3) The prohibition under sub-section (1) shall not apply to the disclosure of-
(a) any particulars, or in respect of any statement, return, accounts,
documents, evidence, affidavit or deposition required for the purposes
of prosecution of an offence under this Ordinance, the Penal Code, or
the Foreign Exchange Regulation Act, 1947;
(b) any particulars or information which is necessary for the purposes of
this Ordinance to any person acting in the execution of this Ordinance,
or of any particulars to any person being an expert whose services have
been placed at the disposal of the Government by any international
organisation of which Bangladesh is a member;
(c) any particulars or information which is occasioned by the lawful
employment under this Ordinance of any process for the service of any
notice or the recovery of any demand;
(d) any particulars of the amount due from an assessee under this Ordinance
by the Board or any officer authorised by it, or by the Commissioner, to
any department of the Government, local authority, bank, corporation or
other organization for the purpose of the recovery of any demand;
(e) any particulars to a Civil Court in any suit which relates to any matter
arising out of any proceeding under this Ordinance and to which
Government is a party;

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(f) any particulars to the Comptroller and Auditor-General of Bangladesh

for the purpose of enabling him to discharge his functions under the
Constitution;
(g) any particulars to any officer appointed by the Comptroller and Auditor-
General of Bangladesh or the Board for the purpose of auditing tax
receipts or refunds;
(h) any particulars relevant to any inquiry into the conduct of any official of
the income tax department to any person appointed to hold such inquiry
or to a Public Service Commission established under the Constitution
when exercising its functions in relation to any matter arising out of any
such inquiry;
(i) any particulars relevant to any inquiry into a charge of misconduct in
connection with income tax proceedings against a lawyer, a chartered
accountant or a cost and management accountant to any authority
empowered to take disciplinary action against such lawyer, chartered
accountant or cost and management accountant;
(j) any particulars by a public servant where the disclosure is occasioned by
the lawful exercise by him of the powers under the Stamp Act, 1899, to
impound an insufficiently stamped document;
(k) any facts to an authorised officer of the Government of any country
outside Bangladesh with which the Government of the People's
Republic of Bangladesh has entered into an agreement for the avoidance
of double taxation and the prevention of fiscal evasion where such
disclosure is required under the terms of the agreement;
(l) any such facts to any officer to the Government as may be necessary for
the purpose of enabling the Government to levy or realise any tax
imposed by it;
(m) any such facts to any authority exercising power under the Excise and
Salt Act, 1944, the Gift-tax Act, 1963, েোি@রআইি, ১৯৯০, the Wealth-
tax Act, 1963, the Customs Act, 1969, the Sales tax Ordinance, 1982, or
মূ঱্সাংচযোেি@রআইি, ১৯৯১ or ম঱ূ ্ সাংচযোেি @র ও সম্পরূ @ শুল্ক আইি,
২০১২ as may be necessary for the purpose of enabling it duly to exercise
such powers;

(n) so much of any such particulars, to the appropriate authority as may be

necessary to establish whether a person has or has not been assessed to
income tax in any particular year or years, where, under the provisions
of any law for the time being in force, such fact is required to be
established;
(o) any such particulars to the Bangladesh Bank as are required by that
Bank to enable it to discharge its functions under the foreign exchange

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 control laws or to compile financial statistics of international
investments and balance of payments;
(p) any such information as may be required by any officer or department
of the Government for the purpose of investigation into the conduct and
affairs of a public servant;
(pp) any such information as may be required for the purpose of
investigation relating to money laundering and terrorist financing if the
information is requested by the authority responsible for giving approval
to a prosecution relating to money laundering and terrorist financing;
(q) any such particulars as may be required by any order made under
section 19(2) of the Foreign Exchange Regulation Act, 1947;
(r) a list of highest taxpayers or distinguished taxpayers in accordance with
rules made or guidelines issued by the board on this behalf;
(s) the particulars of any assessee mentioned in the certificate issued under
section 184B to any person or authority mentioned in sub-section (1) of
section 184A for the purpose of verifying the authenticity of the twelve-
digit Taxpayer‗s Identification Number (TIN); or
(t) any information required to furnish under section 108A.
(4) Nothing in this section shall apply to the production by a public servant before
a Court of any document, declaration or affidavit filed, or the record of any
statement or deposition made in a proceeding under section 90 or 111, or to the
giving of evidence by a public servant in respect thereof.
(5) Any person to whom any information is communicated under this section, and
any person or employee under his control, shall in respect of that information,
be subject to the same rights, privileges, obligations and liabilities as if he
were a public servant and all the provisions of this Ordinance shall, so far as
may be, apply accordingly.
(6) This section shall not be construed as prohibiting the voluntary disclosure of
any particulars referred to in sub-section (1) by the person by whom the
statement was made, return furnished, accounts or documents produced,
evidence given or affidavit or deposition made, as the case may be.
 CHAPTER XXI
OFFENCES AND PROSECUTION

164. Punishment for non-compliance of certain obligations.-

A person is guilty of an offence punishable with imprisonment for a term which may
extend to one year, or with fine, or with both, if he, without reasonable cause,-
(a) fails to deduct or collect and pay any tax as required under the provisions of
Chapter VII except advance payment of tax or fails to deduct and pay tax as
required under section 143(2);
(b) fails to produce, or cause to be produced, on or before the date mentioned in
any notice under Chapter VIII, or under section 83, such accounts,
documents or statements as are referred to in such notice;
(c) fails to furnish, in due time, the return of income which he is required to
furnish under section 75, or by notice given under section 77 or 93;
(cc) refuses to furnish such information as may be necessary under section 113;
(d) refuses to permit inspection or to allow copies to be taken in accordance with
the provisions of section 114;
(e) fails to afford necessary facilities or to furnish the required information to an
income tax authority exercising powers under section 115;
(ee) fails to comply with the requirement under sub-section (1) of section 116;
(eee) fails to comply with the order made under sub-section (1) of section 116A;
or
(f) refuses to permit or in any manner obstructs the exercise of powers under
section 117 by an income tax authority.

165. Punishment for false statement in verification, etc.-

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 3 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;
(b) knowingly and willfully aids, abets, assists, incites or induces another person
to make or deliver a false return, account, statement, certificate or declaration
under this Ordinance, or himself knowingly and willfully makes or delivers
such false return, account, statement, certificate or declaration on behalf of
another person
(c) signs and issues any certificate mentioned in the proviso of section 82 which
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he either knows or believes to be false or does not believe to be true;

(d) refuses to furnish such information as may be necessary for the purpose of
survey under section 115.

165A. Punishment for improper use of Taxpayer's Identification Number.-

A person is guilty of an offence punishable with imprisonment for a term which may
extend to three years or with fine up to Tk. 50,000 or both, if he deliberately uses or
used a fake Taxpayer's Identification Number (TIN) or a Taxpayer's Identification
Number (TIN) of another person.

165AA.Punishment for furnishing fake audit report.-

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 3 months, or with fine upto taka 1
(one) lakh, or both, if he furnishes along with the return of income or thereafter any
audited statement of accounts which is false or does not conform with signature of a
chartered accountant purported to be signatory to such statement.

165B. Punishment for obstructing an income tax authority.-

A person who obstructs an income tax authority in discharge of functions under this
Ordinance shall commit an offence punishable with imprisonment for a term not
exceeding one year, or with a fine, or with both.

165C. Punishment for unauthorised employment.-

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 3 months, or with fine up to taka 5
(five) lakh, or both, if he employs or allows to work any individual not being a
Bangladeshi citizen without prior approval from appropriate authority of the
Government.

166. Punishment for concealment of income, etc.-

A person is guilty of an offence punishable with imprisonment which may extend to
five years but shall not be less than 3 months, or with fine, or with both, if he
conceals the particulars, or deliberately furnishes inaccurate particulars, of his
income.

166A. Punishment for providing false information, etc.-

A person is guilty of an offence punishable with imprisonment which may extend to
three years or with fine, or with both, if he is in possession of any information in

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 relation to an assessee and after being required to furnish the information to an
income tax authority under this Ordinance –
(a) conceals the information; or
(b) deliberately furnishes inaccurate information.

167. Punishment for disposal of property to prevent attachment.-

The owner of any property, or a person acting on his behalf or claiming under him, is
guilty of an offence punishable with imprisonment for a term which may extend to
five years, or with fine, or with both, if he sells, mortgages, charges, leases or
otherwise so deals with the property after the receipt of a notice from the Tax
Recovery Officer as to prevent its attachment by that Officer.

168. Punishment for disclosure of protected information.-

A public servant, or any person assisting, or engaged, by any person acting in the
execution of this Ordinance, is guilty of an offence punishable with imprisonment for
a term which may extend to 6 months, or with fine, if he discloses any particulars or
information in contravention of the provisions of section 163.

169. Sanction for prosecution.-

(1) No prosecution for an offence punishable under any provisions of this Chapter
shall be instituted except with the previous sanction of the Board.
(2) [deleted]

169A. Further enquiry and investigation, etc. for prosecution.-

The Deputy Commissioner of Taxes, with prior approval of the Commissioner of
Taxes, may make such enquiry and investigation, in addition to the enquiry already
made under this Ordinance, as may be necessary for the purpose of prosecution of an
offence under this Chapter or a tax related offence (@র সাংক্রোন্ত অপরোি) under মোনি
঱ন্িোনরাং প্রনিচরোি আইি, ২০১২।

170. Power to compound offences.-

The Board may, either before or after the institution of any proceedings or
prosecution for an offence punishable under this Chapter, compound such offence.

171. Trial by Special Judge.-

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1898,
or in any other law for the time being in force, an offence punishable under this
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

Chapter, other than an offence under section 168, shall be tried by a Special
Judge appointed under the Criminal Law Amendment Act, 1958, as if such
offence were an offence specified in the Schedule to that Act.
(2) A Special Judge shall take cognizance of, and have jurisdiction to try, an
offence triable by him under sub-section (1) only upon a complaint in writing
made, after obtaining the sanction under 169, by the Deputy Commissioner of
Taxes-
(a) who is competent to make assessment under this Ordinance in the case to
which the offence alleged to have been committed relates, and
(b) whose office is situated within the territorial limits of the jurisdiction of
the Special Judge.

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 CHAPTER XXII
MISCELLANEOUS

172. Relief when salary, etc. is paid in arrear or advance.-

Where the income of an assessee is assessable at a rate higher than that at which it
would otherwise have been assessed by reason of-
(a) any portion of his salary being paid in arrears or in advance, or
(b) his having received in any one financial year salary for more than 12 months,
or
(c) his having received a payment which is a profit in lieu of salary, or
(d) his having received in arrears in one income year any portion of his income
from interest on securities relatable to more income years than one;
the Deputy Commissioner of Taxes may, on an application made to him in this
behalf, determine the tax payable as if the salary, payment or interest had been
received by the assessee during the income year or years to which it relates and may
refund the amount of tax, if any, paid in excess of the tax so determined.

173. Correction of errors.-

(1) Where an income tax authority or the Appellate Tribunalfinds by own motion
or based on written application from theassessee or information from any
other source that an errorapparent from record has been made in any order
passed by it, theincome tax authority or the Appellate Tribunal may amend
theerror by order in writing:
Provided that no amendment under this sub-section shall bemade after
the expiration of four years from the date of the ordersought to be amended.
(1A) Where an assessee, by an application in writing in relationto an assessment
year, brings to the notice of the DeputyCommissioner of Taxes of the claim
that-
(a) a sum payable under this Ordinance has been paid inamount higher than
the due amount, or
(b) the due credit of a sum paid under this Ordinance has notbeen given,
the Deputy Commissioner of Taxes shall give credit of the amountin the
assessment year in which the sum was to be given credit ifthe claim of the
assessee is found valid and correct after dueverification.
(2) No amendment under sub-section (1) which has the effect of enhancing an
assessment or reducing a refund or otherwise increasing the liability of the
assessee shall be made unless the parties affected thereby have been given a
 reasonable opportunity of being heard.
(3) Where any such error as is referred to in sub-section (1) is brought to the
notice of the authority concerned by the assessee and no amendment is made
by such authority within the financial year next following the date in which
the error is brought to its notice, the amendment under that sub-section shall
be deemed to have been made so as to correct the error and all the provisions
of this Ordinance shall have effect accordingly.
(4) [deleted]
(5) Where in respect of any completed assessment of a partner in a firm it is
found on the assessment of the firm or on any reduction or enhancement
made in the income of the firm under sections 120, 121A,156, 159, 161 or
162 that the share of the partner in the profit or loss of the firm has not been
included in the assessment of the partner, or, if included, is not correction, the
inclusion of the share in the assessment or the correct thereof, as the case may
be, shall be deemed to be correction of an error apparent from the record
within the meaning of this section, and the provisions of sub-section (1) shall
apply thereto accordingly, the period of four years referred to in sub-section
(4) being computed from the date of the final order passed in the case of the
firm.
(6) Where as a result of proceedings initiated under section 93, a firm or an
association of persons is assessed, and the Deputy Commissioner of Taxes
concerned is of opinion that it is necessary to compute the total income of a
partner in the firm or a member of the association of persons, as the case may
be, the Deputy Commissioner of Taxes may proceed to compute the total
income and determine the sum payable on the basis of such computation as if
the computation is a correction of an error apparent from the record within the
meaning of this section, and the provisions of sub-section (1) shall apply
accordingly, the period of four years specified in sub-section (4) being
reckoned from the date of the final order passed in the case of the firm or
association of persons, as the case may be.
(7) Subject to the provisions of sub-section (3) where an amendment is made
under this section, an order shall be passed in writing by the income tax
authority concerned or the Appellate Tribunal, as the case may be.

173A. Place of assessment.-

(1) Where an assessee carries on a business, profession or vocation at any place,
he shall be assessed by the Deputy Commissioner of Taxes of the area in
which that place is situate or, where the business, profession or vocation is
carried on in more places than one, by the Deputy Commissioner of Taxes of
the area in which the principal place of his business, profession or vocation is
situate.
 (2) In all other cases, an assessee shall be assessed by the Deputy Commissioner
of Taxes of the area in which he resides.
(3) Where any question arises under this section as to place of assessment, such
question shall be determined by the Commissioner, or, where the question is
between places in areas within the jurisdiction of more Commissioners than
one, by the Commissioners concerned, or, if they are not in agreement, by the
National Board of Revenue:
Provided that, before any such question is determined, the assessee shall
have had an opportunity of representing his views.
(4) No person shall be entitled to call in question the jurisdiction of a Deputy
Commissioner of Taxes after he has made the return of total income, or where
he has not made such return, after the time allowed by the notice served on
him for making such return has expired.

174. Appearance by authorised representative.-

(1) Any assessee, who is entitled or required to appear before any income tax
authority or the Appellate Tribunal in connection with any proceedings under
this Ordinance, may, except when required under section 122 to attend
personally, appear by an authorised representative.
(2) For the purpose of this section, "authorised representative" means a person,
authorised in writing by the assessee to appear on his behalf, being-
(a) a relative of the assessee who is his parent, spouse, son, daughter, brother
or sister;
(b) a whole time regular employee of the assessee;
(c) [deleted]
(d) a legal practitioner who is entitled to practice in a Civil Court in
Bangladesh;
(e) a chartered accountant or a cost and management accountant or a
member of an association of accountants recognised in this behalf by the
Board; or
(f) an income tax practitioner registered as such by the Board in accordance
with the rules made in this behalf and subject to such conditions as may
be laid down in those rules:
Provided that such an income tax practitioner shall be a member of
any registered Taxes Bar Association.
(3) Notwithstanding anything contained in sub-section (1), the following persons
shall not be qualified to represent an assessee under that sub-section, namely:-
(a) a person who has been dismissed from Government service;
 (b) a legal practitioner, or a chartered accountant, a cost and management
accountant, or other accountant mentioned in clause (e) of sub-section
(2), or an income tax practitioner, who, having been found guilty of
misconduct in his professional capacity-
(i) by any authority empowered to take disciplinary action against him,
or
(ii) by the Board, in connection with any income-tax proceeding, and,
on account of that finding, he stands disqualified from practising
his profession for so long as such disqualification continues:
Provided that no person shall be disqualified under this sub-clause
unless he is given a reasonable opportunity of being heard:
Provided further that any person disqualified under this sub-clause
may, within one month of his disqualification, appeal to the
Government to have the disqualification removed:
Provided further that no disqualification under this sub-clause
shall take effect until one month from the date of such
disqualification has elapsed or, when an appeal is preferred, until
the disposal of the appeal;
(c) a person who has become insolvent for so long as the insolvency
continues;
(d) a person who has been convicted of any offence connected with any
income tax proceeding under this Ordinance unless the Commissioner,
with the approval of the Board, by order, remove his disqualification
under this sub-section; and
(e) any Government servant in the Income-tax Department who has resigned
or retired from such service, for a period of three years from the date of
acceptance of resignation or a period of one year from the date of
retirement, as the case may be.

175. Tax to be calculated to nearest taka.-

In the determination of the amount of tax or of a refund payable under this
Ordinance, fractions of a taka, less than fifty paisa, shall be disregarded and fractions
of a taka equal to or exceeding fifty paisa shall be regarded as one taka.

176. Receipts to be given.-

A receipt shall be given for any money paid or recovered under this Ordinance.

177. Computation of the period of limitation.-

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(1) In computing the period of limitation prescribed for an appeal or application

under this Ordinance, the day on which the order complained of was served,
or, if the assessee was not furnished with a copy of the order when the notice
of the order was served upon him, the time requisite for obtaining the copy of
the order shall be excluded.
(2) Where the period of limitation prescribed for an appeal or application under
this Ordinance expires on a day which is a closed holiday, the appeal or
application may be made on the day next following such holiday.

178. Service of notice.-

(1) A notice, an assessment order, a form of computation of tax or refund, or any
other document may be served on the person named therein by registered post
or by sending from the official electronic mail of the sender to the specified
electronic mail address of the person or in the manner provided for service of a
summons issued by a Court under the Code of Civil Procedure, 1908:
Provided that where a notice, an assessment order, a form of computation of
tax or refund, or any other document is received by an authorized
representative as referred to in section on 174, such receipt by the authorized
representative, shall be construed as valid service on that person.
(2) A notice may be addressed-
(a) in the case of a firm or a Hindu undivided family, to any member of the
firm, or the manager or any adult male member of the family;
(b) in the case of a local authority or a company, to the principal officer
thereof;
(c) in the case of other body or association of persons, to the principal
officer or any member thereof;
(d) in a case where a firm or association of persons is dissolved, to any
person who was a member of the firm or association, as the case may be,
immediately before such dissolution;
(e) in a case where a business or profession is discontinued to which section
89 applies, if the business or profession discontinued was-
(i) that of an individual, to the person whose income is to be assessed;
(ii) that of a company, to the principal officer thereof; and
(iii) that of a firm or association of persons, to any person who was a
partner of such firm or a member of such association, as the case
may be, at the time of the discontinuance;
(f) in a case where a finding of partition has been recorded under section 90
in respect of a Hindu undivided family, to the person who was the last
manager of the family or, if such person is dead, to all adult male persons

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who were members of the family immediately before the partition; and
(g) in any other case, not being an individual, to the person who manages or
controls the affairs of the person or institution concerned.
(3) The validity of any notice or of the service of any notice shall not be called in
question after the return in response to the notice has been filed or the notice
has been complied with.
Explanation.-In this section, "notice" includes order or requisition made or
issued under this Ordinance.
(৪ ) In this section-
(a) ―electronic mail‖ shall have the same meaning as assigned to ―ইচ঱@ট্রনি@
কমই঱‖ by িথ্ ও কযোগোচযোগ প্রযনয ি আইি, ২০০৬;

(b) ―official electronic mail of the sender‖ means the

electronic mail designated by the Board to the income tax
authority
serving the notice;
(c) ―specified electronic mail address of the person‖ means the
electronic mail address –
(i) that has been mentioned in the return of income of the
person submitted for the respective income year;
(ii) that has been specified by a person, in writing, to the
income tax authority, as the electronic mail address of
such person.

178A. System generated notice, order, etc.-

A notice, order, requisition, certificate, communication, letter or an acknowledgment
of receipt generated by computer or electronic system specified by the Board shall
have the same meaning and effect of the notice, order, requisition, certificate,
communication, letter or an acknowledgment of receipt issued or served under this
Ordinance.

178B. Electronic filing, etc.-

Where any return, statement, application or document is to be filed to an income tax
authority or the Taxes Appellate Tribunal under any provision of this Ordinance, the
return, statement, application or document may be filed in such electronic, computer
readable or machine readable form and manner as may be specified by the Board.

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179. Certain errors not to vitiate assessment, etc.-
No assessment, order, notice, warrant or other document made, issued or executed,
or purporting to be made, issued or executed, under this Ordinance, shall be void or
otherwise inoperative, merely for want of form, or for an error, defect or omission
therein, if such want of form, error, defect or omission is not of a substantial nature
prejudicially affecting the assessee.

180. Proceeding against companies under liquidation.-

Notwithstanding anything contained in section 171 of the Companies Act, 1913,
leave of the Court shall not be required for continuing any proceeding, or
commencing any proceeding, under this Ordinance against a company in respect of
which a winding up order has been made or provisional liquidator appointed.

181. Indemnity.-
Every person deducting, retaining or paying any tax in pursuance of this Ordinance
in respect of income belonging to another person is hereby indemnified for the
deduction, retention or payment thereof.

182. Bar of suits and prosecution, etc.-

(1) No suit shall be brought in any Civil Court to set aside or modify any
assessment made under this Ordinance.
(2) No suit, prosecution or other proceedings shall lie against any officer of the
Government for anything in good faith done or intended to be done under this
Ordinance.

183. Ordinance to have effect pending legislative provision for charge of tax.-
If, on the first day of July in any year provision has not been made by Act of
Parliament for the charging of income tax for that year, this Ordinance shall
nevertheless have effect until such provision is made, as if the provision in force in
the preceding year, or the provision proposed in the bill which may then be before
the Parliament, whichever is more favourable to the assessee, were actually in force.

184. [deleted]

184A. Requirement of twelve-digit Taxpayer’s Identification Number in certain cases.-

(1) Notwithstanding anything contained in this Ordinance, a person shall be
required to furnish a proof of holding twelve-digit Taxpayer‘s Identification
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Number in the cases mentioned in sub-section (3).

(2) The proof of holding twelve-digit Taxpayer‘s Identification Number shall be a
certificate issued by the Deputy Commissioner of Taxes or a system generated
certificate authorised by the Board in this behalf or an acknowledgment receipt
of return of income, if such certificate or acknowledgment receipt, as the case
may be, contains the name and the twelve-digit Taxpayer‘s Identification
Number of the person.
(3) The proof of holding twelve-digit Taxpayer‘s Identification Number shall be
furnished in the cases of-
(i) opening a letter of credit for the purpose of import;
(ii) applying for an import registration certificate or export registration
certificate;
(iii) obtaining the issuance or renewal of a trade license in the area of a
city corporation or paurashava;
(iv) submitting tender documents by a resident for the purpose of supply
of goods, execution of a contract or rendering a service;
(v) submitting application for the membership of a club registered under
ক@োম্পোনি আইি, ১৯৯৪;

(vi) obtaining the issuance or renewal of license of 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 one lakh taka;
(viii) obtaining registration, change of ownership or renewal of fitness of a
bus, truck, prime mover, lorry etc., plying for hire;
(ix) applying for a loan exceeding five lakh taka from a bank or a
financial institution;
(x) obtaining a credit card;
(xi) obtaining 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;
(xii) being a director or a sponsor shareholder of a company;
(xiii) obtaining and retaining a license as a Nikah Registrar under the
Muslim Marriages and Divorces (Registration) Act. 1974;
(xiv) obtaining or maintaining the membership of any trade or professional

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body;
(xv) submitting a 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;
(xvi) obtaining or maintaining a drug license;
(xvii) obtaining or maintaining the commercial connection of gas;
(xviii) obtaining or maintaining the connection of electricity in a city
corporation, paurashava or cantonment board;
(xix) registration, change of ownership or renewal of fitness of a motor
vehicle;
(xx) obtaining or maintaining a survey certificate of any water vessel
including launch, steamer, fishing trawler, cargo, coaster and dump-
burge etc., plying for hire;
(xxi) registration or renewal of agency certificate of an insurance
company;
(xxii) 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;
(xxiii) participating in any election in upazila, paurashava,zila parishad, city
corporation or Jatiya Sangsad;
(xxiv) obtaining the admission of a child or a dependent in an English
medium school, providing education under international curriculum,
situated in any city corporation, district headquarter or paurasava;
(xxv) 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 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;
(xxvi) receiving any amount from the Government under the Monthly
Payment Order (MPO) if the amount of payment exceeds taka sixteen
thousand per month;
(xxvii) 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;

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 (xxviii) obtaining or maintaining the agency or the distributorship of a
company;
(xxix) 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;
(xxx) receiving any payment by a resident from a company against any
advisory or consultancy service, catering service, event management
service, supply of manpower or providing security service;
(xxxi) submitting a bill of entry for import into or export from Bangladesh;
(xxxii) participates in a shared economic activities by providing motor
vehicle, space, accommodation or any other assets;
(xxxiii) releasing overseas grants to a non-government organization
registered with NGO Affairs Bureau or to a Micro Credit
Organisation having licence with Micro Credit Regulatory Authority.
(xxxiv) obtaining or maintaining a license for arms
(4) The Board may, by a general or special order, exempt any person from
furnishing twelve-digit Taxpayer‘s Identification Number.
(5) The person responsible for processing any application or nomination, approving
any license, certificate, membership, permission, admission, agency or
distributorship, sanctioning any loan, issuing any credit card, allowing
connection, 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 twelve-digit Taxpayer‘s Identification Number is furnished as
required under the provision of sub-section (1) or the person who is required to
furnish the proof of holding twelve-digit Taxpayer‘s Identification Number
provides a certificate from the Board that he is exempted from furnishing such
proof.
(6) The person to whom the proof of holding twelve-digit Taxpayer‘s Identification
Number is furnished shall verify the authenticity of it in the manner as may be
specified by the Board.

184AA. Twelve-digit Taxpayer's Identification Number (TIN) in certain documents,

etc.-.
The Board may, with the prior approval of the Government and by notification in the
official Gazette, specify any class of documents where a twelve-digit Taxpayer‗s
Identification Number (TIN) is to be mentioned.

184B. Tax-payer's identification number.-

 (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 a new twelve-digit Tax-payer's Identification Number.
(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.

184BB. Tax collection account number.-

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.

184BBB. Unified Taxpayer's Identification Number (UTIN).- [deleted]

184BBBB. Issuance of Temporary Registration Number (TRN).-

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.
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).

184C. Displaying of twelve-digit tax payer's identification number certificate.-

An assessee having income from business or profession shall obtain twelve-digit tax
payer's identification number (TIN) certificate from the Deputy Commissioner of
Taxes under whose jurisdiction he is being assessed and display such certificate at a
 conspicuous place of such assessee's business premises.

184CC. Requirement of mentioning twelve-digit Taxpayer’s Identification Number in

certain documents.-
Notwithstanding anythingcontained in any other law for the time being in force
where any documentrelating to the transfer of land, building or apartment situated
within a citycorporation, or cantonment board, or a paurashava of a district
headquarters, deedvalue of which exceeds taka one lakh and required to be registered
under the Registration Act, 1908, such document shall contain twelve-
digitTaxpayer‘s Identification Number of both the seller and the purchaser.

184D. Reward to officers and employees of the Board and its subordinate income tax
offices.-
(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, 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 collection of revenue in excess of the revenue target as
may be prescribed.

184E. Assistance to income tax authorities.-

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.

184F. Ordinance to override other laws.-

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 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.

184G. 184G. Power to condone or extend, etc.—

(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 this 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.

185A. Power to issue circular, clarification, etc.-

The Board may, by order, issue circular, clarification, explanation and directives
relating to the scope and application of any provision under this Ordinance and the
rules and orders made thereunder.
 CHAPTER XXIII
RULES AND REPEAL

185. Power to make rules.-

(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, by 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 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;
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
subsection, 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.

186. Repeal and savings.-

(1) The Income-tax Act, 1922 is hereby repealed.
(2) Notwithstanding the repeal, the Income tax Act,1922, and the rules made
thereunder, shall continue to apply, as if that Act had not been repealed,-
(a) to any income of, or relatable to, any period prior to the commencement
of this Ordinance; and
(b) to any notice issued, or any assessment, order, application or appeal
made, any proceedings commenced or any prosecution instituted, under
that Act.
(3) Save as provided in sub-section (2), the repeal under sub-section (1) and
enactment of this Ordinance shall, for the purposes of the General Clauses
Act,1897, be deemed to be repeal and re-enactment of the Income-tax
Act,1922.

187. Removal of difficulties.-

(1) If any difficulty arises in giving effect to any of the provisions of this
Ordinance, the Government may, by notification in the official Gazette, make
such provisions as it thinks fit for removing that difficulty.
(2) No notification under this section shall be issued after the thirtieth day of
June,1988.
 THE FIRST SCHEDULE
PART A
APPROVED SUPERANNUATION FUND OR PENSION FUND
[See section 2(6)]

1. Definitions.-
For the purposes of this Part,-
(a) "employer", "employee", "contribution" and "salary" have, in relation to
Superannuation fund or Pension Fund, the same meanings assigned to those
expressions in paragraph 1 of Part B in relation to provident fund; and
(b) "ordinary annual contribution" means an annual contribution of a fixed amount or
an annual contribution computed on some definite basis by reference to the
earnings, the contributions or the number of members of the fund.

2. Approval and withdrawal of approval.-

(1) The Board shall within 6 months from the date of receipt of the application by it
for according approval to any Superannuation fund or Pension Fund, accord such
approval, failing which the Superannuation fund or Pension Fund shall be deemed
to have been accorded approval and the Board may, if, in its opinion, the
Superannuation fund or Pension Fund contravenes any of the conditions specified
in paragraph 3, withdraw such approval at any time.
(2) The Board shall communicate in writing to the trustees of the fund the grant of
approval with the date on which the approval is to take effect, and where the
approval is granted subject to conditions, those conditions.
(3) The Board shall communicate in writing to the trustees of the fund any withdrawal
of approval with the reasons for such withdrawal and the date on which the
withdrawal is to take effect.
(4) The Board shall neither refuse nor withdraw approval to any Superannuation fund
or Pension Fund or any part of a Superannuation fund or Pension Fund unless it
has given the trustees of that fund a reasonable opportunity of being heard in the
matter.

3. Conditions for approval.-

In order that a Superannuation fund or Pension Fund may receive and retain approval, it
shall satisfy the conditions set out below and any other conditions which the Board may
prescribe-
(a) the fund shall be a fund established under an irrevocable trust in connection with a
 trade or undertaking carried on in Bangladesh;
(b) the fund shall have for its sole purpose the provision of annuities for employees in
the trade or undertaking on their retirement at or after a specified age or on their
becoming incapacitated prior to such retirement, or for the widows, children or
dependents of persons who are, or have been, such employees on the death of
those persons;
(c) the employer in the trade or undertaking shall be a contributor to the fund; and
(d) all annuities, pensions and other benefits granted from the fund shall be payable
only in Bangladesh:
Provided that the Board may, if it thinks fit and subject to such conditions, if
any, as it thinks proper to attach to the approval, approve a fund or any part of a
fund-
(i) notwithstanding that the rules of the fund provide for the return in certain
contingencies of contributions paid to the fund, or
(ii) if the main purpose of the fund is the provision of such annuities as
aforesaid, notwithstanding that such provision is not its sole purpose, or
(iii) notwithstanding the trade or undertaking, in connection with which the fund
is established, is carried on only partly in Bangladesh.

4. Application for approval.-

(1) An application for approval of a Superannuation fund or Pension Fund or part of a
Superannuation fund or Pension Fund for any year of assessment shall be made in
writing before the end of that year by the trustees of the fund to the Board and
shall be accompanied by a copy of the instrument under which the fund is
established and by two copies of the rules and of the accounts of the fund for the
last year for which such accounts have been made up. The Board may require such
further information to be supplied as it thinks proper.
(2) If any alteration in the rules, constitution, objects or conditions of the fund is made
at any time after the date of the application for approval, the trustees of the fund
shall forthwith communicate such alteration to the Deputy Commissioner of
Taxes, and in default of such communication, any approval given shall, unless the
Board otherwise orders, be deemed to have been withdrawn from the date on
which the alteration took effect.

5. Exemption of income of and contribution to Superannuation fund or Pension Fund

from tax.-
(1) Income derived from investments or deposits of an approved Superannuation fund
or Pension Fund and any capital gains arising from the transfer of capital assets of
such fund shall be exempt from payment of tax.
 (2) Any sum paid by an employer as contribution towards an approved
Superannuation fund or Pension Fund shall be deducted in computing his income,
profits and gains for the purpose of assessment :
Provided that where a contribution by an employer is not an ordinary annual
contribution it shall, for the purpose of this paragraph, be treated either as an
expense in the income year in which the sum is paid or as an expense to be spread
over such period of years as the Board thinks proper.
(3) Tax shall not be payable in respect of any sum paid by an employee by way of
contribution towards an approved Superannuation fund or Pension Fund to which
the provisions relating to paragraph 6 of part B of the Sixth Schedule shall apply:
Provided that no such exemption shall be allowable to an employee in respect
of any sum which is not an ordinary annual contribution.

6. Treatment of repaid contributions.-

(1) Where any contributions (including interest on contributions, if any) are repaid to
an employee in any income year, the amount so repaid shall be deemed for the
purposes of tax to be income of the employee for that year.
(2) Where any contributions (including interest on contributions, if any) are repaid to
an employee during his life time but not at or in connection with the termination of
his employment, tax on the amount so repaid or paid shall, except in the case of an
employee whose employment was carried on abroad, be deducted by the trustees
of the fund at the average rate of tax at which the employee was liable to tax
during the preceding three years or during such period, if less than three years, as
he was a member of the fund, and shall be paid by the trustees to the credit of the
Government within the prescribed time and in such manner as the Board may
direct.

7. Deduction from pay off and contributions on behalf of employee to be included in

the statement under section 108.-
Where an employer deducts from the salary paid to an employee or pays on his behalf
any contribution to an approved Superannuation fund or Pension Fund, he shall include
all such deductions or payments in the statement which he is required to furnish under
section 108.

8. Liabilities of trustees on cessation of approval of fund.-

If a fund or a part of a fund, for any reason, ceases to be an approved Superannuation
fund or Pension Fund, the trustees of the fund shall nevertheless remain liable to
account for tax on any sum paid-
 (a) on account of returned contributions (including interest on contributions, if any);
and
(b) in commutation or in lieu of annuities;
in so far as the sum so paid is in respect of contributions made before the fund or part of
the fund ceased to be an approved fund under the provisions of this Part.

9. Particulars to be furnished in respect of Superannuation fund or Pension Fund.-

The trustees of an approved Superannuation fund or Pension Fund and any employer
who contributes to an approved Superannuation fund or Pension Fund shall, when
required by notice from the Deputy Commissioner of Taxes, within 21 days of the date
of such notice,-
(a) furnish to the Deputy Commissioner of Taxes a return containing such particulars
of contributions made to the fund as the notice may require;
(b) prepare and deliver to the Deputy Commissioner of Taxes a return containing-
(i) the name and place of residence of every person in receipt of an annuity
from the fund;
(ii) the amount of the annuity payable to each annuitant;
(iii) particulars of every contribution (including interest on contribution, if any)
returned to the employer or to employees; and
(iv) particulars of sums paid in commutation or in lieu of annuities; and
(c) furnish to the Deputy Commissioner of Taxes a copy of the accounts of the fund to
the last date prior to such notice to which such accounts have been made up,
together with such other information and particulars as the Board may require.
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

THE FIRST SCHEDULE

PART B
RECOGNISED PROVIDENT FUNDS
[See section 2(52)]

1. Definition.- For the purposes of this Part,-

(a) ―accumulated balance due‖ to an employee means the balance to his credit, or
such portion thereof as may be claimable by him under the regulations of the fund,
on the day he ceases to be an employee of the employer maintaining the fund;
(b) "annual accretion" to the balance to the credit of an employee means the increase
to such balance in any year, arising from contributions and interest;
(c) "balance to the credit" of an employee means the total amount to the credit of his
individual account in a provident fund at any time;
(d) "contribution" means any sum credited by or on behalf of any employee out of his
salary, or by an employer out of his own money to the individual account of an
employee, but does not include any sum credited as interest;
(e) "employee" means an employee participating in a provident fund but does not
include a personal or domestic servant;
(f) ―employer‖ means –
(i) a company,local authority, firm, other association of persons, a Hindu
undivided family or an individual engaged in a business or profession the
profits and gains whereof is assessable to tax under the head "Income from
business or profession", maintaining a provident fund for the benefit of his or
its employees; or
(ii) any diplomatic, consular or trade mission or office of any intergovernmental
organization located in Bangladesh, maintaining a provident fund for the
benefit of Bangladeshi employees of such mission or office;
(g) "recognized provident fund" means a provident fund which has been and continues
to be recognised by the Commissioner, in accordance with the provisions of this
part;
(h) "regulations of a fund" means the special body of regulations governing the
constitution and administration of a particular provident fund; and
(i) "salary" includes dearness allowance if the terms of employment so provides, but
excludes all other allowance and perquisites.

2. According and withdrawal of recognition of provident funds.-

(1) The Commissioner shall, within 45 days from the date of receipt of the application

asadtax@gmail.com Page
 by him for according recognition to any provident fund, accord such recognition,
failing which the provident fund shall be deemed to have been accorded
recognition, and the Commissioner may, if, in his opinion, the provident fund
contravenes any of the conditions specified in paragraph 3 and the rules made by
the Board in that behalf, withdraw such recognition at any time.
(2) An order according recognition shall take effect on such date as the Commissioner
may fix in accordance with any rules the Board may make in this behalf, such date
not being later than the last day of the financial year in which the order is made.
(3) An order according recognition to a provident fund shall not, unless the
Commissioner otherwise directs, be affected by the fact that the fund is
subsequently amalgamated with another provident fund on the occurrence of an
amalgamation of the undertaking in connections with which the two funds are
maintained or that it subsequently absorbs the whole or a part of another provident
fund belonging to an undertaking which is wholly or in part transferred to or
merged in the undertaking of the employer maintaining the first mentioned fund.
(4) An order withdrawing recognition shall take effect from the day on which it is
made.
(5) The Commissioner shall neither refuse nor withdraw recognition of any provident
fund, unless the applicant is given a reasonable opportunity of being heard.

3. Conditions to be satisfied by a recognised provident fund.-

In order that a provident fund may receive and retain recognition, it shall satisfy the
conditions set out below and any other conditions which the Board may prescribe-
(a) all employees shall be employed in Bangladesh or shall be employed by an
employer whose principal place of business is in Bangladesh:
Provided that the Commissioner may, if he thinks fit and subject to such
conditions, if any, as he thinks proper to attach to the recognition, accord
recognition to a fund maintained by an employer whose principal place of
business is not in Bangladesh notwithstanding that a proportion not exceeding
10% of the employees is employed outside Bangladesh;
(b) the contributions of an employee in any year shall be a definite proportion of his
salary for that year, and shall be deducted by the employer from the employee's
salary in that proportion at each periodical payments of such salary in that year
and credited to the employee's individual account in the fund;
(c) the contributions of an employer to the individual account of an employee in any
year shall not exceed the amount of the contributions of the employee in that year,
and shall be credited to the employee's individual account at intervals not
exceeding one year:
Provided that, subject to any rules which the Board may make in this behalf, the
Commissioner may, in respect of any particular fund, relax the provisions of
this
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

clause-
(i) so as to permit the payment of larger contributions by an employer to the
individual accounts of employees whose salaries do not, in each case,
exceed Tk. 500 per mensem; and
(ii) so as to permit the crediting by employers to the individual accounts of
employees of periodical bonuses or other contributions of a contingent
nature, where the calculation and payment of such bonuses or other
contributions is provided for on definite principles by the regulations of the
fund;
(d) the fund shall consist of contributions as above specified and of donations, if any,
received by the trustees, of accumulations thereof, and of interest, credited in
respect of such contributions, donations and accumulations, and of securities
purchased therewith and of any capital gains arising from the sale, exchange or
transfer of capital assets of the fund, and of no other sums;
(e) the fund shall be vested in two or more trustees or in the official trustee under a
trust which shall not be revocable save with the consent of all the beneficiaries;
(f) the employer shall not be entitled to recover any sum whatsoever from the fund,
save in cases where the employee is dismissed for misconduct or voluntarily
leaves his employment otherwise than on account of ill health or other
unavoidable cause before the expiration of the term of service specified in this
behalf in the regulations of the fund:
Provided that in such cases the recoveries made by the employer shall be
limited to the contributions made by him to the individual account of the
employee, and to interest credited in respect of such contributions and
accumulations thereof, in accordance with the regulations of the fund;
(g) the accumulated balance due to an employee shall be payable on the day he ceases
to be an employee of the employer maintaining the fund;
(h) save as provided in clause (g), or in accordance with such conditions and
restrictions as the Board may prescribe, no portion of the balance to the credit of
an employee shall be payable to him.

4. Annual accretion deemed to be income received by the employee.-

The annual accretion in any year to the balance at the credit of an employee
participating in a recognised provident fund shall be deemed to have been received by
him in that year and shall be included in his total income for that year, and, subject to
the exemptions specified in paragraph 5 shall be liable to tax.

5. Exemption of annual accretion from tax.-

asadtax@gmail.com Page
 (1) An employee shall not be liable to pay tax on contribution to his individual
account in a recognised provident fund, in so far as the aggregate of such
contributions in any year does not exceed one-third of his salary for that year.
(2) Interest credited on the accumulated balance of any employee in a recognised
provident fund shall be exempt from payment of tax, if and in so far as it does not
exceed one-third of the salary of the employee for the year concerned and in so far
as it allowed at a rate not exceeding such rate as the Board may, by notification in
the official Gazette, fix in this behalf.

6. Exemption of accumulated balance from tax.-

Where an employee participating in a recognised provident fund has rendered
continuous service with his employer for a period of not less than five years, and the
accumulated balance due to him becomes payable, such accumulated balance shall be
exempt from payment of tax and shall be excluded from the computation of his total
income:
Provided that the Commissioner may allow such exemption and exclusion where the
employee has rendered continuous service with the employer for a period of less than
five years, if in his opinion, the service has been terminated by reason of the employee's
ill health, or by the contraction or discontinuance of the employer's business, or other
cause beyond the control of the employee.

7. Tax on accumulated balance.-

Where exemption from payment of tax is not allowed under paragraph 6, the Deputy
Commissioner of Taxes shall calculate the total of the various sums of tax which would
have been payable by the employee in respect of his total income for each of the years
concerned if the fund had not been a recognised provident fund, and the amount by
which such total exceeds the total of all sums paid by or on behalf of such employee by
way of tax for such years shall be payable by the employee in addition to any tax for
which he may be liable for the income year in which the accumulated balance due to
him becomes payable.

8. Deduction at source of tax on accumulated balance due.-

The trustees of a recognised provident fund, or any other person authorised by the
regulations of the fund to make payment of accumulated balance due to employees
shall, at the time an accumulated balance due to an employee is paid, deduct therefrom
any tax payable under paragraph 7 and any tax payable under paragraph 10(4), and the
provisions of Chapter VII shall, so far as may be, apply as if accumulated balance was
income chargeable under the head "Salaries".
9. Accounts of recognised provident funds.-
(1) The accounts of a recognised provident fund shall be maintained by the trustees of
the fund and shall be in such form and for such periods and shall contain such
particulars as the Board may prescribe.
(2) The accounts shall be open to inspection at all reasonable times by the income tax
authorities, and the trustees shall furnish to the Deputy Commissioner of Taxes
such abstracts thereof as the Board may prescribe.

10. Treatment of balance in newly recognised provident funds.-

(1) Where recognition is accorded to a provident fund with existing balance, an
account shall be made of the fund up to the day immediately preceding the day on
which the recognition takes effect, showing the balance to the credit of each
employee on such day, and containing such further particulars as the Board may
prescribe.
(2) The account shall also show in respect of the balance to the credit of each
employee the amount thereof which is to be transferred to that employee's account
in the recognised provident fund, and such amount (hereinafter called his
transferred balance) shall be shown as the balance to his credit in the recognised
provident fund on the date on which the recognition of the fund takes effect, and
sub-paragraph (4) and (5) shall apply thereto.
(3) Any portion of the balance to the credit of an employee in the existing fund which
is not transferred to the recognised fund shall be excluded from the accounts of the
recognised fund and shall be liable to tax in accordance with the provisions of this
Ordinance other than this Part.
(4) Subject to such rules as the Board may make in this behalf, the Deputy
Commissioner of Taxes shall make a calculation of the aggregate of all sums
comprised in a transferred balance which would have been liable to tax if this part
had been in force, from the date of institution of the fund, without regard to any
tax which may have been paid on any such sum, and such aggregate, if any, shall
be deemed to be income received by the employee in the income year in which the
recognition of the fund takes effect, and shall be included in the employee's total
income for that income year, and for the purposes of assessment, the remainder of
the transferred balance shall be disregarded, but no other exemption or relief, by
way of refund or otherwise, shall be granted in respect of any sum comprised in
such transferred balance :
Provided that, in cases of serious accounting difficulty, the Commissioner shall
have power, subject to the said rules, to make a summary calculation of such
aggregate.
(5) Notwithstanding anything contained in paragraph 3(h), an employee in order to
enable him to pay the amount of tax assessed on his total income as determined
 under sub-paragraph (4), shall be entitled to withdraw from the balance to his
credit in the recognised provident fund a sum not exceeding the difference
between such amount and the amount to which he would have been assessed if the
transferred balance had not been included in his total income.
(6) Nothing in this paragraph shall affect the rights of the persons administering an
unrecognised provident fund or dealing with it, or with the balance to the credit of
any individual employee, before recognition is accorded, in any manner which
may be lawful.

11. Treatment of fund transferred by employer to trustee.-

(1) Where an employer who maintains a provident fund (whether recognised or not)
for the benefit of his employees and has not transferred the fund or any portion of
it, transfers such fund or portion to trustees in trust for the employees participating
in the fund, the amount so transferred shall be deemed to be of the nature of
capital expenditure.
(2) When an employee participating in such fund is paid the accumulated balance due
to him therefrom, any portion of such balance as represents his share in the
amount so transferred to the trustee (without addition of interest, and exclusive of
the employee's contributions and interest thereon) shall, if the employer has made
effective arrangement to secure that tax shall be deducted at source from the
amount of such share when paid to the employee, be deemed to be an expenditure
by the employer within the meaning of section 29(1) (xxvii), incurred in the
income year in which the accumulated balance due to the employee is paid.

12. Provisions of this Part to prevail against regulations of the fund.-

Where there is a repugnance between any regulation of a recognised provident fund and
any provisions of this Part or of the rules made thereunder, the regulation shall, to the
extent of the repugnance, be of no effect; and the Commissioner may at any time,
require that such repugnance shall be removed from the regulations of the fund.

13. Appeals.-
(1) An employer objecting to an order of the Commissioner refusing to recognise or
an order withdrawing recognition from a provident fund may prefer an appeal,
within 60 days of the date of such order, to the Board.
(2) The appeal shall be in such from and shall be verified in such manner as may be
prescribed.

14. Provisions relating to rules.-

 In addition to any power conferred by this Part, the Board may make rules-
(a) prescribing the statements and other information to be submitted with an
application for recognition;
(b) limiting the contributions to a recognised provident fund by employees of a
company who are shareholders in the company;
(c) providing for the assessment by way of penalty of any consideration received by
an employee for an assignment of or creation of a charge upon his beneficial
interest in a recognised provident fund;
(d) determining the extent to and the manner in which exemption from payment of tax
may be granted in respect of contributions and interest credited to the individual
accounts of employees in a provident fund from which recognition has been
withdrawn;
(e) regulating the investment or deposit of the moneys of a recognised provident fund;
and
(f) generally, to carry out the purposes of this Part, and to secure such further control
over the recognition of provident funds, and the administration of recognised
provident fund, as it may deem requisite.

15. Application of this Part.-

This Part shall not apply to any provident fund to which the Provident Fund Act, 1925,
applies.
 THE FIRST SCHEDULE
PART C
APPROVED GRATUITY FUND
[See section 2(5A)]

1. Definitions.-
In this Part, unless the context otherwise requires, the expression "contribution",
"employee", "employer", "regulations of a fund" and "salary" have, in relation to
gratuity funds, the meaning assigned to those expressions in paragraph 1 of Part B in
relation to provident funds.

2. Approval of gratuity funds.-

(1) The Board shall, within 4 months from the date of receipt of the application by it
for according approval to any gratuity fund, accord such approval, failing which
the gratuity fund shall be deemed to have been accorded approval, and the Board
may, if, in its opinion, the gratuity fund contravenes any of the conditions
specified in paragraph 3 and the rules made by the Board in that behalf, withdraw
such recognition at any time.
(2) An order according or withdrawing approval shall take effect from such date as
the Board may communicate in writing to trustees of the fund.
(3) The Board shall neither refuse nor withdraw approval to any gratuity fund unless it
has given the trustees of that fund a reasonable opportunity of being heard.

3. Conditions for approval.-

In order that a gratuity fund may receive and retain approval, it shall satisfy the
conditions hereinafter specified and any other conditions which the Board may
prescribe-
(a) the fund shall be a fund established under an irrevocable trust in connection with
trade or undertaking carried on in Bangladesh and not less than 90% of the
employees of such trade or undertaking shall be employed in Bangladesh;
(b) the fund shall have for its sole purpose the provision of a gratuity to employees in
the trade or undertaking on their retirement or after a specified age or on their
becoming incapacitated prior to such retirement, or on termination of their
employment after a minimum period of service specified in the regulations of the
fund or to the widows, children or dependents of such employees on their death;
(c) the employer in the trade or undertaking shall be a contributor to the fund; and
(d) all benefits granted by the fund shall be payable only in Bangladesh.
4. Application for approval.-
(1) An application for approval of gratuity fund shall be made in writing by the
trustees of the fund to the Board and shall be accompanied by a copy of the
instrument under which the fund is established and by two copies of the rules and,
where the fund has been in existence during any year or years prior to the financial
year in which the application for approval is made, also two copies of the accounts
of the fund relating to such prior year or years (not being more than three years
immediately preceding the year in which the said application is made) for which
such accounts have been made up. The Board may require such further
information to be supplied as it thinks proper.
(2) If any alteration in the regulations, constitution, objects or conditions of the fund is
made at any time after the date of the application for approval, the trustees of the
fund shall forthwith communicate such alteration to the Deputy Commissioner of
Taxes mentioned in sub-paragraph (1), and in default of such communication, any
approval given shall, unless the Board otherwise orders, be deemed to have been
withdrawn from the date on which the alteration took effect.
5. Exemption of income of gratuity fund from tax.-
Income derived from investments or deposits of an approved gratuity fund and any
capital gains arising from the transfer of capital assets of such fund shall be exempt
from payment of tax.

6. Treatment of contribution by employer.-

Any sum paid by an employer as contribution towards an approved gratuity fund shall
be deducted in computing his income, profits and gains for the purposes of assessment.

7. Contributions by employer, when deemed to be his income.-

Where any contributions by an employer (including the interest thereon, if any) are
repaid to the employer, the amount so repaid shall be deemed for the purposes of tax to
be the income of the employer for the income year in which they are so repaid.

8. Particulars to be furnished in respect of gratuity funds.-

The trustees of an approved gratuity fund and any employer who contributes to an
approved gratuity fund shall, when required by notice from the Deputy Commissioner
of taxes, furnish, within such period as may be specified in the notice, such return,
statement, particulars or information as the Deputy Commissioner of Taxes may require.

9. Provisions of this Part to prevail against regulations of the fund.-

 Where there is a repugnance between any regulation of an approved gratuity fund and
any provision of this Part or of the rules made there under , the said regulation shall, to
the extent of repugnance, be of no effect, and the Board may, at any time, require that
such repugnance shall be removed from the regulations of the fund.

10. Provisions relating to rules.-

In addition to any power conferred in this Part, the Board may make rules-
(a) prescribing the statements and other information to be submitted along with an
application for approval;
(b) limiting the ordinary, annual, and other contributions of an employer to the fund;
(c) regulating the investment or deposit of the money of an approved gratuity fund;
(d) providing for withdrawal of the approval in the case of a fund which ceases to
satisfy the requirements of this Part, or the rules made thereunder; and
(e) generally, to carry out the purposes of this Part and to secure such further control
over the approval of gratuity funds and the administration of gratuity funds, as it
may deem requisite.
 THE SECOND SCHEDULE
RATES OF INCOME TAX IN CERTAIN SPECIAL CASES
[See section 16(3)]

1. Where a person, not being a company, is a non-resident in Bangladesh, except a

Bangladeshi non-resident tax shall be payable by him or on his behalf, on his total
income, at the maximum rate.

2. Where the total income of an assessee includes any income chargeable under the head
"Capital gains" (hereinafter referred to as the "said income"), the tax payable by him on
his total income shall be-
(a) in the case of a company-
(i) tax payable on the total income as reduced by the said income had such
reduced income been the total income; plus
(ii) tax at the rate of 15% on the whole amount of the said income;
(b) in the case of a person other than a company-
(i) where the said income arises as a result of disposal by the assessee of his
capital assets after not more than five years from the date of their acquisition
by him, tax payable on the total income including the said income; and
(ii) where the said income arises as a result of disposal by the assessee of his
capital assets after five years from the date of their acquisition by him, tax
payable on the capital gains at the rate applicable to his total income
including the said capital gains, or tax at the rate of 15% on the amount of the
capital gains whichever is the lower.

3. Where the total income of an assessee includes any income from "winnings" referred to
in section 19(13) chargeable under the head "Income from other sources" (hereinafter
referred to as the "said income"), the tax payable by him on the said income shall be at
the rate of 20%.
 THE THIRD SCHEDULE
COMPUTATION OF DEPRECIATION ALLOWANCE AND AMORTIZATION
[See section 27 and 29]

1. Depreciation allowance on assets used for agricultural purposes.-

For the purpose of section 27(1)(f), depreciation allowance at the rates specified in the
Table below shall be made in respect of depreciation of any irrigation or protective
work or other capital assets:
Ser Classification of irrigation or Rate/percentage of Remarks.
ial protective work or other capital the written down
No assets. value, except as
. otherwise indicated.
1 2 3 4
1 Pucca buildings 10
2 Kancha and pucca buildings 15
3 Kancha buildings 20
4 Temporary structure -- No rate is
specifies; renewal
will be allowed as
revenue
expenditure.
5 Pucca walls 5
6 Fencing of substantial 10
material
7 Tube-well 15
8 Tanks 10
9 Pucca irrigation channel 15
10 Kancha irrigation channel 20
11 Kancha irrigation wells 33.33
12 Pucca irrigation wells 5
13 Bullock drawn iron implements 15
14 Bullock drawn wooden or leather 25
implements and other small
hand/implements.
15 Weighing machine 10
 16 Tractors and oil engines and thin 15
implements
17 Power pumping machinery 20
18 Factory made cart of iron material 15
with rubber tyre
19 Country Cart 20
20 Steam engine 10
21 Workshop tools 15
22 General (machinery, implements, 10
plants and other assets) not
provided for above specially

2. Allowance for depreciation.-

(1) In computing profits and gains from business or profession, an allowance for
depreciation shall be made in the manner hereinafter provided in respect of any
building, machinery, plant or furniture owned by an assessee or bridge or road or
fly over of a physical infrastructure undertaking and used for the purposes of
business or profession carried on by him.
(2) Where any such building, machinery, plant or furniture or bridge or road or fly
over of a physical infrastructure undertaking is not wholly used for the purposes
of the business or profession, the allowance under sub-paragraph (1) shall be
restricted to the fair proportional part of the amount which would be admissible
if such building, machinery, plant or furniture were wholly so used.
(3) No allowance under this paragraph shall be made unless-
(a) at the time of filing a return of total income such particulars as may be
prescribed and such further information or documents as the Deputy
Commissioner of Taxes may require, are furnished ; and
(b) such building, machinery, plant or furniture or bridge or road or fly over of
a physical infrastructure undertaking has been so used during income year.

3. Normal depreciation allowance.-

(1) The allowance for normal depreciation under paragraph 2 shall be computed at
the rates specified in the table below :
TABLE

Sl Rate/percen
Class of Assets tage of the Remarks
No
written
 down value,
except as
otherwise
indicated
1 2 3 4
1 (1) Buildings (general) 10
(2) Factory buildings 20
2 Furniture and fittings 10
2A Office equipment 10
3 Machinery and plant:
(1) General rate 20
(2) Special rates
(a) Ships:
(i) Ocean-going ships (new) 12
(ii) Ocean-going ships (second The
hand), age at the time of allowanc
purchase e is to be
calculate
d on the
original
cost.
(a) less than 10 years 12
(b) 10 years or more 24
(iii) Inland ships including 24
steamers, motor vessels, sails,
tug-boats iron or steel flats for
cargo, wooden cargo-boats,
motor launches and speed
boats
(b) (i) Batteries, X-Ray and 20
electrotherapeutic apparatus
and accessories thereto
(ii) Machinery used in the 20
production and exhibition of
cinematographic films
(iii) motor vehicles all sorts not 20
plying for hire
 (iv) motor vehicles all sorts plying 24
for hire
(v) computer and computer 30
equipments
(vi) Bangladeshi made computer 50
software
(vii) imported computer software 10
(c) (i) professional and reference 30
books
(ii) Aircraft, aeroengines and 30
aerial photographic apparatus
(iii) Moulds used in the 30
manufacture of glass or
plastic goods or concrete pipe
(d) Mineral oil concerns
(i) Below ground installations 100
(ii) Above ground installations, 30
that is to say, portable boilers,
drilling tools, well-head tanks
and rigs
(e) physical infrastructure
(i) Bridge 2
(ii) Road 2
(iii) Flyover 2
(iv) Pavement runway, taxiway 2.5
(v) Apron, termac 2.5
(vi) Boarding bridge 10
(vii) Communication, Navigation 5
aid and other equipments
2. The Board may, from time to time, by notification in the official Gazette, make
any amendment in the Table referred to in sub-paragraph (1)
3. Notwithstanding anything contained in sub-paragraph (1), in the case of any
assessee or any class of assessees, or any asset or class of assets, the Board may,
by notification in the official Gazette, direct that depreciation allowance shall be
a allowance at such rate or rates and in such manner as may be specified.
4. No allowance under this paragraph shall be made for a leasing company on such
 machinery, plant, vehicle or furniture given to any leasee on financial lease.

4. [deleted]

5. Depreciation not to be allowed in cases where the cost of renewal or replacement

is allowed.-
Notwithstanding anything contained in this Ordinance, no allowance under paragraph
2 shall be made in the case of any asset falling under the description "Machinery and
Plant" the normal useful life of which does not exceed one year, but the cost of
renewal or replacement thereof shall be allowed as a revenue expenditure.

5A. Initial depreciation allowance.-

Notwithstanding anything contained in this Ordinance, no allowance under paragraph
2 shall be made in the case of any asset falling under the description "Machinery and
Plant" the normal useful life of which does not exceed one year, but the cost of
renewal or replacement thereof shall be allowed as a revenue expenditure.
(1) Where any building has been newly constructed or any machinery or plant has
been installed in Bangladesh after the thirtieth day of June, 2002, an amount by
way of initial depreciation allowance in respect of the year of construction or
installation or the year in which such building, machinery or plant is used by the
assessee for the first time for the purpose of his business or profession or the
year in which commercial production is commenced, whichever is the later, shall
be allowed at the following rates, namely:-
(a) in the case of building - 10% of the cost thereof to the
assessee;
(b) in the case of machinery or - 25%of the cost thereof to the
plant other than ships or motor assessee;
vehicles not plying for hire
(2) Nothing contained in sub-paragraph (1) shall apply in the case of-
(a) any motor vehicle not plying for hire, and
(b) any machinery or plant which has previously been used in Bangladesh.
(3) The provisions of paragraph 2 and 3 shall, so far as may be, apply to this
paragraph as they apply to the said paragraph.

6. [deleted]

7. Accelerated depreciation allowance on machinery and plant.-

[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

(1) In the case of any machinery or plant (other than office appliances and road
transport vehicles) which, not having been previously used in Bangladesh, has
been or is used in an industrial undertaking set up in Bangladesh between the
first day of July, 1977 and the thirtieth day of June, 2012 (both days inclusive),
an amount by way of accelerated depreciation allowance shall, subject to the
conditions set out in sub-paragraph (2), be allowed and computed as follows,
namely :-
(a) for the first year in which the - 50% of the actual cost of plant and
undertaking starts commercial machinery to the assessee
production
(b) for the next following second - 30% of the actual cost of plant and
year machinery to the assessee
(c) for the next following third - 20% of the actual cost of plant and
year machinery to the assessee
(2) The industrial undertaking referred to in sub-paragraph (1) shall fulfil the
following conditions, namely:-
(a) that the industrial undertaking is owned and managed by a Bangladeshi
company, or a body corporate formed in pursuance of an Act of
Parliament, having its registered office in Bangladesh;
(b) that it belongs to such class of industries as the Board may, by notification
in the official Gazette, specify in this behalf;
(c) that the particulars required for the purpose of entitlement to, or claiming
accelerated depreciation allowance under this paragraph have been
furnished; and
(d) that the application in the prescribed form for accelerated depreciation
allowance under this paragraph, as verified in the prescribed manner, is
made to the Board within 6 months from the end of the month of
commencement of commercial production; and the application is
accompanied by a declaration in writing that the undertaking has not been
approved for, and that no application in respect of the undertaking has been
made or shall be made to the Board for approval of, exemption from
payment of tax under section 45 or 46A or 46B of this Ordinance for any
period.
(3) The machinery or plant on which accelerated depreciation has been allowed
under this paragraph shall not be entitled to any other depreciation allowance
under this Ordinance or the Income-tax Act,1922.

7A. Accelerated depreciation allowance on machinery and plant.-

(1) In the case of machinery or plant (other than office appliances and road transport
vehicles) which not having been previously used in Bangladesh, has been or is

asadtax@gmail.com Page
 used-
(a) in the expansion unit set-up between the first day of July, 1995 and the
thirtieth day of June, 2005 (both days inclusive) in any existing
undertaking enjoying exemption from tax under section 46A; or
(b) between the first day of July, 1995 and the thirtieth day of June, 2005 (both
days inclusive) in the treatment and disposal of toxic and environmentally
hazardous wastes or in the collection or processing of bio-degradable
wastes or in the research and development in any industrial undertaking
owned and managed by a company as defined in clause (20) of section 2,
an amount by way of accelerated depreciation allowance shall, subject to
the conditions set out in sub-paragraph (2), be allowed and computed as
follows, namely:-
(i) for the first year in which the - 80% of the actual cost of the
expansion unit starts commercial machinery or plant to the
production or operation or, as the assessee;
case may be, the undertaking
starts operation,
(ii) for the next following year - 20% of the actual cost of the
machinery or plant to the
assessee.
Explanation.- For the purposes of this paragraph, "expansion unit" means the
expansion of an existing undertaking if such expansion constitutes-
(a) an identifiable unit for production or operation of similar or other goods or
class of goods or services;
(b) a similar unit carrying on an identifiable industrial process, but does not
include an undertaking which is formed by splitting up or reconstruction of
an existing business or by transfer of machinery or plant of an existing
business in Bangladesh to a new business.
(2) The undertaking referred to in clause (a) or (b) of sub-paragraph (1) shall fulfill
the following conditions, namely:-
(a) that the application in the prescribed form for accelerated depreciation
allowance under this paragraph, as verified in the prescribed manner, is
submitted to the Board within 6 months from the end of the month of
commencement of commercial production or operation; and
(b) that the particulars required for the purpose of entitlement to, or claiming
accelerated depreciation allowance under this paragraph have been
furnished.
(3) The Board shall give its decision on an application under sub-paragraph (2)
(a)within 3 months from the date of receipt of the application by the Board,
failing which accelerated depreciation shall be deemed to have been allowed by
 the Board for the purposes of this paragraph.
(4) The machinery or plant on which accelerated depreciation is allowed under this
paragraph shall not be entitled to any other depreciation allowance under this
Ordinance.
(5) The Board may, on an application by any person aggrieved by any decision or
order passed under sub-paragraph (3), if the application is made within 4 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.

7B. Accelerated depreciation allowance on machinery and plant.-

(1) In the case of any machinery or plant (other than office appliances and road
transport vehicles) which, not having been previously used in Bangladesh, has
been or is used in an industrial undertaking as referred to in section 46B of the
Ordinance and set up in Bangladesh between the first day of July, 2014 and the
thirtieth day of June, 2019 (both days inclusive), an amount by way of
accelerated depreciation allowance shall, subject to the conditions set out in sub-
paragraph (2), be allowed and computed as follows, namely :-
(a) for the first year in which - 50% of the actual cost of plant and
the undertaking starts machinery to the assessee;
commercial production
(b) for the second year - 30% of the actual cost of plant and
machinery to the assessee;
(c) for the third year - 20% of the actual cost of plant and
machinery to the assessee.

(2) The industrial undertaking referred to in sub-paragraph (1) shall fulfill the
following conditions, namely:-
(a) that the industrial undertaking is owned and managed by a Bangladeshi
company, or a body corporate formed in pursuance of an Act of
Parliament, having its registered office in Bangladesh;
(b) that it belongs to the industrial undertaking as specified in sub-section (2)
of section 46B;
(c) that the particulars required for the purpose of entitlement to, or claiming
accelerated depreciation allowance under this paragraph have been
furnished; and
(d) that the application in the prescribed form for accelerated depreciation
allowance under this paragraph, as verified in the prescribed manner, is
made to the Board within 6 months from the end of the month of
commencement of commercial production; and the application is
 accompanied by a declaration in writing that the undertaking has not been
approved for, and that no application in respect of the undertaking has been
made or shall be made to the Board for approval of, exemption from
payment of tax under section 46B or 46C of this Ordinance for any period.
(3) The machinery or plant on which accelerated depreciation has been allowed
under this paragraph shall not be entitled to any other depreciation allowance
under this Ordinance.

8. Special depreciation allowance on ships.-

(1) In the case of-
(a) a ship, being a passenger vessel, plying ordinarily on inland waters, or a
fishing trawler registered in Bangladesh, which has been or is brought into
use in Bangladesh, for the first time on any day between the 1st day of
July, 1982 and the thirtieth day of June, 1995 (both days inclusive), and is
the property of the assessee, or
(b) a ship registered in Bangladesh, not being a ship ordinarily plying on
inland waters, which has been or is brought into use in Bangladesh for the
first time on any day between the 1st day of July, 1982 and the thirtieth day
of June, 1995 (both days inclusive), and is the property of the assessee, an
amount by way of special depreciation allowance shall, subject to the
conditions set out in sub-paragraph (2), be allowed and computed as
follows, namely :-
(i) for the first year - 40% of the original cost;
(ii) for the second year - 30% of the original cost;
(iii) for the third year - 30% of the original cost.
(2) For the purposes of special depreciation allowance under sub-paragraph (1), the
following conditions shall be fulfilled, namely :-
(a) that the ship conforms to such specifications as the Government may, by
notification in the official Gazette, specify in this behalf; and
(b) that the particulars required for the purpose of entitlement to or claiming
special depreciation allowance under this paragraph have been furnished.
(3) Any ship including a passenger vessel or a fishing trawler on which special
depreciation has been allowed under this paragraph shall not be entitled to any
other depreciation allowance under this Ordinance or the Income-tax Act, 1922.

9. Limitation in respect of allowance for depreciation.-

(1) The aggregate of the allowances for depreciation allowed under this Ordinance
or the Income-tax Act, 1922, in respect of any asset, shall not exceed the original
 cost of the asset.
(2) Where full effect cannot be given to depreciation allowances under this Schedule
in the year in which it is admissible there being no income chargeable for that
year or such income being less than the allowance admissible, then, subject first
to carrying forward of the loss, if any, under section 38, the allowances or the
part thereof to which effect has not been given shall be added to the amount of
the allowance for the following year or, if no allowance is admissible for such
following year, shall be deemed to be allowance admissible for such year and so
on for succeeding years till such time as the entire allowance on this account is
adjusted against the profits.

10. Disposal of assets and treatment of gains or losses thereof.-

Where in any income year any asset representing any building, machinery or plant is
disposed of by an assessee-
(a) no allowance for depreciation under paragraph 3, 4, 6, 7 or 8 shall be allowed in
respect thereof in that year;
(b) where the sale-proceed exceed the written down value of such asset, 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 income of the assessee of that income
year chargeable under the head "Income from business or profession";
(c) where the sales-proceeds are less than the written down value of such asset, the
deficit shall be deemed to be an expenditure, deductible from the profits and
gains of business or profession of that year; and the business or profession in
which such building, machinery or plant was used before its disposal, shall be
deemed to be carried on by the assessee during that year, and the provisions of
this Ordinance shall apply accordingly:
Provided that the deficiency is actually written off in the books of accounts of
the assessee.
10A. Amortization of license fees.-
(1) Where an assessee, being a resident company, paid any sum as license fees
before or after the first day of July, 2012 wholly and exclusively for the purpose
of obtaining a permission from any authority authorised by the government
applicable for two or more years to run a business, the assessee shall be allowed
a deduction of an amount proportionate to such years and such deduction shall
continue till the last year of the period for which the license was granted.
(2) For the purpose of this paragraph, ―license fees‖ means Spectrum Assignment
fees, GSM license fees, license acquisition fees or license renewal fees paid by a
cellular mobile phone operator or any other licence fee, paid by any other
company engaged in providing specialized services, if such licence is integral to
the operation of the company:
 Provided that the amortization of fees shall be allowed from assessment
year 2013-2014.

11. Definitions.-
For the purposes of this Schedule,-
(1) "furniture" includes fittings;
(2) "plant" includes ships, vehicles, books, scientific apparatus and surgical
equipment used for the purpose of business or profession;
(3) "sale-proceeds" means-
(a) where the asset is actually sold, the sale prices thereof or the fair market
value, whichever is the higher;
(b) where the asset is transferred by way of exchange, the fair market value of
the asset acquired through such transfer;
(c) where the asset is transferred otherwise than by sale or exchange, the
consideration for such transfer;
(d) where an asset is discarded, demolished, destroyed or lost, scrap value, or
the amount realised by the disposal thereof together with any insurance,
compensation or salvage money received or receivable in respect therefor;
(e) where the asset is compulsorily acquired under any law for the time being
in force in Bangladesh, the compensation paid thereof;
(f) where the asset ceases to be used by the assessee for the purposes of his
business or profession, the fair market value thereof at the time of such
cessation;
(g) where any machinery of plant, after having been used in Bangladesh in the
execution of any contract or otherwise, is exported or transferred outside
Bangladesh, the original cost thereof less the "normal depreciation"
allowed under paragraph 3 of this Schedule; or the depreciation allowances
allowed under section 10(2) (vi) of the Income tax Act, 1922, except the
further sum referred to therein; and in each such case the asset shall for the
purpose of paragraph 10, be deemed to have been disposed of by the
assessee:
Provided that where the actual cost of a motor vehicle not plying for hire is
subject to the maximum limit in accordance with clause (a) of sub-paragraph (6)
the sale-proceeds thereof shall be taken to be a sum which bears to the amount
for which the said vehicle is sold, together with any insurance, salvage or
compensation money received or receivable, or as the case may be, scrap value
in respect thereof, at the same proportion as the said maximum limit bears to
the
actual cost of the said vehicle to the assessee, had the said sub-clause not been
 applicable to such vehicle.
Explanation.-In the proviso, "sold" includes a transfer by way of exchange or
otherwise or a compulsory acquisition under any law for the time being in force;
(4) "Ship" includes a steamer, motor vessel, sail, tug boat, iron or steel flat for cargo,
wooden cargo boat, motor launch and speed boat;
(5) "written down value" means-
(a) where the assets were acquired in the income year, the actual cost thereof
to the assessee;
(b) where the assets were acquired before the income year, the actual cost
thereof to the assessee as reduced by the aggregate of the allowances for
depreciation allowed under this Ordinance, or the Income-tax Act, 1922, in
respect of the assessments for earlier year or years;
(6) For the purposes of clause (5),-
(a) in the case of motor vehicles, being passenger vehicles or sedan cars, not
plying for hire, the actual cost to the assessee shall be deemed not to
exceed taka 25 lakh:
Provided that nothing in this clause shall apply in the case of allowing
depreciation of a bus or minibus transporting the students and teachers of
the assessee being an educational institution or of the employees of the
business or profession for which the depreciation is to be allowed;
(b) in computing the actual cost of an asset, the amount of any grant, subsidy,
rebate or commission and the value of any assistance (not being in the
nature of any loan repayable with or without interest) received by an
assessee from Government or any other authority or person, and any
deduction or allowance admissible under this Ordinance or the Income tax
Act, 1922, shall be excluded;
(c) where, before the date of acquisition by the assessee, any such asset had at
any time been used by any person for the purposes of his business or
profession, the actual cost to the assessee shall, except in any case where
sub-clause (d) applies, be deemed not to exceed the fair market value
thereof;
(d) where any assessee has succeeded another person in business or profession
by inheritance, or where the provisions of section 88 apply, the written
down value of an asset shall be computed as if no succession had taken
place;
(e) where an assessee has acquired any plant or machinery (hereinafter
referred to as "asset") from a country outside Bangladesh for installation in
Bangladesh for the purposes of his business or profession and, in
consequence of a change in the rate of exchange at any time after the
acquisition of such asset and before full and final payment of any foreign
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

loan, there is an increase or reduction in the liability of the assessee as

expressed in Bangladesh currency for making payment towards the whole
or a part of the money borrowed by him from any person, directly or
indirectly, in any foreign currency specifically for the purposes of
acquiring the asset (being in either case, the liability existing immediately
before the date on which change in the rate of exchange takes effect), the
amount by which the liability aforesaid is so increased or reduced during
the income year shall be added to, or as the case may be, deducted from the
actual cost of the assets, and the amount arrived at after such addition or
deduction shall be taken to be the actual cost of the asset;
(f) where the whole or any part of the liability aforesaid is met, not by the
assessee, but, directly or indirectly, by any other person or authority, the
liability so met shall not be taken into account for the purposes of clause
(e); and
(g) where the assessee has entered into a contract with an authorised dealer for
providing him with a specified sum in a foreign currency on or after a
stipulated future date at the rate of exchange specified in the contract to
enable him to meet the whole or any part of the liability aforesaid, the
amount, if any, to be added to, or deducted from the actual cost of the asset
or the amount of expenditure of a capital nature or, as the case may be, the
cost of acquisition of the capital asset under this sub-clause shall, in respect
of so much of the sum specified in the contract as is available for
discharging the liability aforesaid, be computed with reference to the rate
of exchange specified therein.
Explanation.- For the purposes of this clause-
(a) "rate of exchange" means the rate of exchange determined or
recognised by the Government for the conversion of Bangladesh
currency into foreign currency or foreign currency into Bangladesh
currency; and
(b) "authorised dealer", "foreign currency" and "Bangladesh currency"
have the same meaning as in the Foreign Exchange Regulation Act.
1947.

asadtax@gmail.com Page
 THE FOURTH SCHEDULE
COMPUTATION OF THE PROFITS AND GAINS OF INSURANCE BUSINESS
[See section 28(2)(a)]

1. Profits of life insurance to be computed separately.-

In the case of any person who carries on, or at any time in the income year carried on,
life insurance business, the profits and gains of such person from that business shall be
computed separately from his income, profits or gains from any other business.

2. Computation of profits and gains of life insurance business.-

The profits and gains of life insurance business, other than pension and annuity business,
shall be taken to be either-
(a) the gross external incomings of the income year from that business less the
management expenses of that year, or
(b) the annual average of the surplus arrived at by adjusting the surplus or deficit
disclosed by the actuarial valuation made for the last inter-valuation period ending
before the year for which the assessment is to be made, so as to exclude from it any
surplus or deficit included therein which was made in any earlier inter-valuation
period and any expenditure other than expenditure which may, under the provisions
of section 29 of this Ordinance, be allowed for, in computing the profits and gains
of a business, whichever is the greater:
Provided that the amount to be allowed as management expenses shall not exceed-
(a) 7.5% of the premiums received during the income year in respect of single
premium life insurance policies, plus
(b) in respect of the first year's premiums received in respect of other life insurance
policies for which the number of annual premiums payable is less than twelve, or
for the number of years during which premiums are payable is less than twelve, for
each such premium or each such year, 7.5% of such first year's premium or
premium received during the income year, plus
(c) 90% of the first year's premium received during the income year in respect of
all other life insurance policies, plus
(d) 12% of all renewal premiums received during the income year.

3. Computation of profits and gains of pension and annuity business.-

The profits and gains of pension and annuity business shall be taken to be the annual
average of the surplus computed in the manner laid in paragraph 2(b).
4. Deductions.-
In computing the surplus,-
(a) under paragraph 2(b), for the purpose of life insurance business, three-fourths of the
amounts paid to or reserved for or expended on behalf of policy-holders, shall be
allowed as a deduction, and under paragraph 3, the amounts paid to or reserved for
or expended on behalf of the members of an approved superannuation fund shall be
allowed as a deduction:
Provided that in the first such computation made under this paragraph of any such
surplus, no account shall be taken of any such amounts to the extent to which they
are paid out of or in respect of any surplus brought forward from a previous inter-
valuation period:
Provided further that if any amount so reserved for policy-holders or members
of an approved superannuation fund, as the case may be, ceases to be so
reserved, and is not paid to or expended on behalf of policy-holders or members of
an approved superannuation fund, as the case may be, one-half or three-fourths of
such amount or the entire amount, as the case may be, if it has been previously
allowed as a deduction, shall be treated as part of the surplus for the period in
which the said amount ceased to be so reserved;
(b) any amount either written off or reserved in the accounts or through the actuarial
valuation balance-sheet to meet depreciation of or loss on the realisation of
securities or other assets, shall be allowed as a deduction and any sums taken credit
for in the accounts or actuarial valuation balance-sheet on account of appreciation
of or gains on the realisation of the securities or other assets shall be included in the
surplus:
Provided that if, upon investigation, it appears to the Deputy Commissioner of
Taxes after consultation with the Controller of Insurance that having due regard to
the necessity for making reasonable provision for bonuses to participating policy-
holders and for contingencies, the rate of interest or other factor employed in
determining the liability in respect of outstanding policy is materially inconsistent
with the valuation of the securities and other assets so as artificially to reduce the
surplus, such adjustment shall be made to the allowance for depreciation of or to
the amount to be included in the surplus in respect of appreciation of, such
securities and other assets as shall increase the surplus for the purposes of these
paragraphs to a figure which is fair and just;
(c) interest received in respect of any securities of the Government which have been
issued with the condition that interest thereon shall not be liable to tax shall be
excluded.

5. Adjustment of tax paid by deduction at source.-

Where for any year an assessment of the profits and gains of life insurance business is
 made in accordance with the annual average of a surplus disclosed by a valuation for an
inter-valuation period exceeding 12 months, then, in computing the tax payable for that
year, credit shall not be given in accordance with section 62 for the tax paid in the
income year, but credit shall be given for the annual average of the tax paid by deduction
at source from interest on securities or otherwise during such period.

6. Computation of profits and gains of other insurance business.-

(1) The profits and gains of any business of insurance other than life insurance shall be
taken to be the balance of the profits disclosed by the annual accounts, which are
required to be prepared complying the provisions of the বীমোআইি, ২০১০ (Insurance
Act, 2010), after adjusting such balance so as to exclude from it any expenditure,
other than expenditure which may under the provisions of section 29 of the Income
tax Ordinance, 1984 be allowed for, in computing the profits and gains of a
business. Profits and losses on the realisation of investments, and depreciation and
appreciation of the value of investments shall be dealt with as provided in
paragraph 4 for the business of life insurance.

(2) Where a company sets aside a portion of its income, profits and gains to meet
exceptional losses, so much of such portion as does not exceed 10% of the
premium income of the year in which it is set aside shall be deducted from the
balance of the profits referred to in sub-paragraph (1).
(3) The amount deducted under sub-paragraph (2) in any year, together with the
amounts, if any, deducted or carried to a reserve in earlier years to meet exceptional
losses (as reduced by the amounts, if any, paid out of such amounts or reserve to
meet exceptional losses) shall not exceed the premium income of that year or the
average premium income of the 3 years immediately preceding that year,
whichever is the higher.
(4) Notwithstanding anything to the contrary contained in this Ordinance, where any
amount is paid, appropriated or diverted out of, or from the amounts deducted
under sub-paragraph (2) for purposes other than the meeting of an exceptional loss,
such amount shall, together with the other premium income, if any, of the company
for the year in which such payment, appropriation or diversion takes place, be
deemed to be the premium income of the company for that year; and in the event of
the liquidation of the company or the discontinuance of the business to which this
paragraph applies, whichever is the earlier, the aggregate of the amounts deducted
under sub-paragraph (2) (as reduced by the payments made out of such amounts to
meet exceptional losses) shall, together with the other income, if any, of the
company for the year in which it goes into liquidation or in which such business is
discontinued, be deemed to be the income of the company for that year.
Explanation.-For the purposes of this paragraph, "exceptional loss" means the amount
by which the aggregate loss in any year exceeds 50% of the premium income of that year
or 50% of the average premium income of the 3 years immediately preceding that year,
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

whichever is the higher, total world income of the company corresponding to the
proportion which its premium income derived from Bangladesh bears to its total
premium income. For the purposes of this paragraph, the total world income of life
insurance companies not resident in Bangladesh whose profits are periodically
ascertained by actuarial valuation, shall be computed in the manner laid down in these
paragraphs for the computation of the profits and gains of life insurance business carried
on in Bangladesh.

7. Profits and gains of non-resident person.-

The profits and gains of the branches in Bangladesh of an insurance company not
resident in Bangladesh in the absence of more reliable data, may be deemed to be the
proportion of the total world income of the company corresponding to the proportion
which its premium income derived from Bangladesh bears to its total premium income.
For the purpose of the paragraph, the total world income of life insurance companies not
resident in Bangladesh whose profits are periodically ascertained by actual valuation
shall be computed in the manner laid down in these paragraphs for the computation of
the profits and gains of the life insurance business carried on in Bangladesh.

8. Mutual Insurance Associations.-

These paragraph apply to the assessment of the profits of any business of insurance
carried on by a mutual insurance association.

9. Definition.-
For the purposes of this Schedule,-
(a) "gross external incomings" means the full amount and incomings from interest,
dividends, fines and fees and all other incomings from whatever source derived
(except premium received from policy-holders and interest and dividends on any
annuity fund) and includes also profits from reversions and on the sale or the
granting of annuities, but excludes profits on the realisation of securities or other
assets:
Provided that incomings, including the annual value of the property occupied
by the assessee, which but for the provisions of sub-section (2) of section 28 would
have been assessable under section 24, shall be computed upon the basis laid down
in the last named section, and that there shall be allowed from such gross
incomings such deductions as are permissible under that section;
(b) "management expenses" means the full amount of expenses (including
commissions) incurred exclusively in the management of the business of life
insurance, and in the case of a company carrying on other classes of business as
well as the business of life insurance in addition thereto, a fair proportion of the
expenses incurred in the general management of the whole business. Bonuses or

asadtax@gmail.com Page
 other sums paid to or reserved on behalf of policy-holders, depreciation of, and
losses on the realisation of securities or other assets and any expenditure other than
expenditure which may under the provisions of section 29 be allowed in computing
the profits and gains of a business are not management expenses for the purposes of
this Schedule;
(c) "life insurance business" means life insurance business as defined in section 5(2) of
বীমোআইি, ২০১০;

(d) "securities" includes stocks and shares;

(e) "pension and annuity business" means any life insurance business relating to a
contract with the trustees of an approved superannuation fund, where such contract
is-
(i) entered into only for the purposes of such fund, and
(ii) so framed that the liabilities undertaken thereunder by the person carrying on
the insurance business correspond with the liabilities against which the
contract is intended to secure such fund.
Explanation.- For the removal of doubts, it is hereby declared that the provisions of
section 30 shall apply in allowing management expenses or any other expenses under
this Schedule.
 THE FIFTH SCHEDULE
PART A
COMPUTATION OF THE PROFITS OR GAINS FROM THE EXPLORATION AND
PRODUCTION OF PETROLEUM AND THE DETERMINATION OF THE TAX
THEREON
[See section 28 (2)(b)]

1. Profits from exploration and production of petroleum to be computed separately.-

Where any person carries on or is deemed under an agreement with the Government to
be carrying on any business which consist of or includes exploration and production of
petroleum, the profits or gains of such person therefrom shall be computed separately
from his income, profits or gains from any other business.

2. Computation of profits.-
Subject to the provisions of section 29, the profits and gains for the purposes of
paragraph 1, shall be computed after making the following additional allowances,
namely:-
(a) where a person incurs any expenditure on searching for, or on discovering and
testing a petroleum deposit or winning access thereto, but the search, exploration or
enquiry upon which the expenditure is incurred is given up before the
commencement of commercial production, such expenditure allocable to a
surrender area and to the drilling of a dry hole shall be deemed to be lost at the time
of the surrender of the area or the completion of the dry hole, as the case may be. A
portion of such loss as provided for any agreement between any such person and
the Government, shall be allowed in either of the following ways:-
(i) such portion of the said loss in any year shall be set off against income,
profits or gains from business or under any other head of income, other than
income from dividend, of that year. If the loss cannot be wholly set off in this
manner, the portion not so set off shall be carried forward to the following
year and set off against such income, profits or gains, for that year in the same
manner, and if it cannot be wholly so set off, the amount not so set off shall
be carried forward to the following year and so on; but no loss shall be so
carried forward for more than six years;
(ii) such portion of the said loss in any year shall be set off against income,
profits or gains of the same business of the income year in which commercial
production commences. If the loss cannot be wholly set off against the profit
of the same business for that year, the loss not so set off shall be carried
forward to the following year and set off against the profits or gains, if any, of
the assessee from the same business for that year; and if it cannot be wholly
so set off, the amount of loss not so set off shall be carried forward to the
 following year, and so on; but no loss shall be so carried forward for more
than ten years;
(b) after the commencement of commercial production, all expenditure prior thereto
not deemed to be lost under clause (a) and not represented by physical assets in use
at the time the commercial production commenced, shall be allowed as deductions.
The portion of such deduction to be allowed in any year shall be such amount (not
being greater than 10% of the aggregate amount deductible) as may be selected by
the assessee;
(c) expenditure incurred after the commencement of commercial production in
connection with production and exploration shall be allowed as a deduction:
Provided that such expenditure on asset with respect to which depreciation is
allowable shall not be deducted, and depreciation shall be allowable on such
assets in accordance with the provisions of the Third Schedule. Depreciation shall
also be allowed in respect of the expenditure referred to in the preceding clause
on physical assets acquired prior to the date on which commercial production
commenced, which were in use on that date, as if the assets were newly acquired at
their original cost at the time of commencement of commercial production:
Provided further that where any depreciation allowance has been allowed before
the commencement of commercial production, the original cost as aforesaid shall
be reduced by the amount of such allowance;
(d) if, in any year, the deductions admissible under section 29 and the foregoing
clauses (b) and (c) of this paragraph, exceed the gross receipts from the sale of
petroleum produced in Bangladesh such excess shall be set off against other
income, not being a dividend, and carried forward in the manner and subject to the
limitations laid down in sections 37, 38 and 42.

3. Depletion allowance.-
In determining the profits or gains for any year ending after the date on which
commercial production commenced, an additional allowance shall be made equal to 15%
of the gross receipts representing the well-head value of the production from the business
or part of the business to which the provisions of this Part apply:
Provided that such allowance shall not exceed one-half of the profits or gains as
computed without the deduction of such allowance.

4. Payments to the Government and taxes.-

(1) The sum of payments to the Government and taxes on income in respect of the
profits or gains derived from the business or part of the business to which the
provisions of this Part apply, for any year of assessment, shall be as provided for in
the agreement with the assessee .
 (2) For the purposes of this paragraph, "payments to the Government" means amounts
payable to the Government or to any governmental authority in Bangladesh,-
(a) [deleted]
(b) in respect of any tax or levy imposed in Bangladesh particularly applicable to
oil production or to extractive industries, or any of them, and not generally
imposed upon all industrial and commercial activities.

5. Adjustments of payments to the Government and taxes.-

If in respect of any year, the aggregate of the sum of payments to the Government and
taxes on income is greater or less than the amount provided for in the agreement referred
to in paragraph 4(1), an additional income tax shall be payable by the assessee or an
abatement of tax shall be allowed to the assessee, as the case may be, so as to make the
aggregate of the sum of payments to the Government and taxes on income equal to the
amount provided for in the agreement.

6. Carry forward of excess payments.-

If, in respect of any year, the payments to the Government exceed the amount provided
for in the agreement referred to in paragraph 4(1), so much of the excess as consist of
any tax or levy referred to in paragraph 4(2)(b) shall be carried forward and treated as
payments to the Government for the purposes of paragraph 4 and 5 for the succeeding
year.

7. Sale price of oil.-

For the purposes of computing income under this Part, the "well-head value" shall be
adopted as the sale price of the oil.

8. Definitions.-
For the purposes of this Part,-
(a) "commercial production" means production as determined by the Government;
(b) "petroleum" has the same meaning as assigned to it in Bangladesh Petroleum Act,
1974, but does not include refined petroleum products;
(c) "surrender" means the termination of right with respect to an area including the
expiration of rights according to the terms of an agreement;
(d) "surrendered area" means an area with respect to which the rights of a person have
terminated by surrender or by assignment or by termination of the business;
(e) "well-head value" has the meaning assigned to it in the agreement between the
assessee and the Government and, in the absence of its definition in the agreement,
the meaning assigned to it in the Petroleum (Production) Rules, 1949.
 THE FIFTH SCHEDULE
PART B
COMPUTATION OF PROFITS AND GAINS FROM THE
EXPLORATION AND EXTRACTION OF MINERAL DEPOSITS
(OTHER THAN OIL AND OIL GAS) IN BANGLADESH
[See section 28(2) (c)]

1. Profits from exploration and extraction of mineral deposits to be computed

separately.-
Where any person carries on the business of the exploration or extraction of mineral
deposits of a wasting nature other than oil and oil gas in Bangladesh, the profits and
gains of such business, shall be computed separately from his income, profits or gains
from other business, if any, and such business shall, for the purposes of these paragraphs,
be treated as a separate undertaking (hereinafter referred to as such undertaking).

2. Computation of profits.-
(1) Subject to the provisions of this Part, the profits and gains of such undertaking shall
be computed in accordance with the provisions of section 29.
(2) All expenditure on prospecting and exploration incurred by such undertaking up to
the stage of commercial production shall, to the extent it cannot be set off against
any other income of the said undertaking or any other income in accordance with
section 37, be treated as a loss.
(3) The loss computed in the manner specified in sub-paragraph (2) shall be set off
against the income of such undertaking after the commencement of commercial
production so, however, that if it cannot be wholly set off against the income,
profits or gains of the said undertaking for the income year in which the
commercial production was commenced, the portion not so set off shall be carried
forward to the following year, and so on; but no loss shall be carried forward for
more than ten years beginning with the year in which commercial production was
commenced.
(4) Notwithstanding the provisions of paragraph 3 and 6 of the Third Schedule, after
the commencement of commercial production, depreciation allowance in respect of
machinery and plant purchased or acquired for extracting the ore shall be allowed
as a deduction against profits and gains of the year in which they are used for the
first time in an amount equal to the original cost of such asset; where such
allowance cannot be made in full in any year owing to there being no profits or
gains chargeable for that year or owing to the profits and gains so chargeable being
less than the allowance, the allowance or part of the allowance to which effect has
not been given, as the case may be, shall be added to the amount of allowance for
 depreciation for the following year and deemed to be part of that allowance or, if
there is no allowance for that year, be deemed to be allowance for that year, and so
on for succeeding year:
Provided that where any loss has also to be carried forward under sub-paragraph
(3) effect shall be given to that paragraph.

3. Depletion allowance.-
(1) In computing the profits and gains of such undertaking for any year, an additional
allowance (hereinafter referred to as the depletion allowance) shall be made equal
to 15% of the total income of such undertaking (before the deduction of such
allowance) or 50% of the capital employed in such undertaking (such capital being
computed in accordance with such provisions as may be made by the Board for the
purpose of this paragraph), whichever is the less.
(2) No deduction on account of the depletion allowance shall be allowed under sub-
paragraph (1) unless an amount equal to the depletion allowance is debited to the
profit and loss account of the relevant income year and credited to a reserve
account to be utilised for the development and expansion of such undertaking.
(3) Where an allowance by way of depletion allowance has been made in any year and
subsequently it is utilised for a purpose not specified in sub-paragraph (2), the
amount originally allowed shall be deemed to have been wrongly allowed and the
Deputy Commissioner of Taxes may, notwithstanding anything contained in this
Ordinance, recomputed the total income of the assessee for the relevant income
year and the provisions of sections 93 and 94 shall, so far as may be, apply thereto,
the period of limitation specified in section 94 being reckoned from the end of the
income year in which the amount was so utilised.

4. Tax exemption of profits from refining or concentrating mineral deposits.-

(1) Where such undertaking is also engaged in the business of refining or concentrating
in Bangladesh the mineral deposits extracted by it in Bangladesh, so much of the
profits and gains (hereinafter referred to in subparagraph (2) as the said amount of
profit and gains) derived from such business as does not exceed 5% of the capital
employed in such business, such capital being computed in accordance with such
rules as may be made by the Board for the purposes of this paragraph, shall be
exempt from tax.
(2) Where the profits and gains of such business, computed for any year of assessment
cover a period which is less or more than one year, the amount of profits and gains
exempt under sub-paragraph (1) shall be the amount which bears the same
proportion to the said amount of profits and gains at the same proportion as the said
period bears to a period of one year.
(3) The profits and gains of the business to which this paragraph applies shall be
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

computed in accordance with the provisions of sections 28 and 29.

(4) Nothing contained in this paragraph shall apply to an undertaking which is formed
by the splitting up, or the reconstruction of, a business already in existence, or by
the transfer to a new business of any building, machinery or plant used in a
business which was being carried on, on or before the first day of July, 1983.
(5) The provisions of this paragraph shall apply to the assessment for the year next
following the income year in which commercial production is commenced, or the
loss under paragraph 2(3) or allowance, if any, under paragraph 2(4), as the case
may be, has been set off or deducted in full, whichever is the later, and for the next
following 4 years.

asadtax@gmail.com Page
 THE SIXTH SCHEDULE
PART A
EXCLUSIONS FROM TOTAL INCOME
[See section 44(1)]
1. (1) Any income derived from house property held under trust or other legal
obligation wholly for religious or charitable purposes, and in the case of house
property so held in part only for such purposes, the income applied, or finally set
apart for application, thereto.
Explanation.-The provisions of this paragraph shall not apply in the case of a
non-government organisation registered with NGO Affairs Bureau.
(2) Where any income is not applied or is not deemed to have been applied to
charitable or religious purposes in Bangladesh during the income year but is
accumulated, or finally set apart, for application to such purposes in Bangladesh,
such income shall not be included in the total income of the income year of the
person in receipt of the income, provided the following conditions are complied
with, namely,-
(a) such person specifies, by notice in writing given to the Deputy
Commissioner of Taxes, the purpose for which the income is being
accumulated or set apart, and the period for which the income is to be
accumulated or set apart, which shall in no case exceed ten years;
(b) the money so accumulated or set apart is-
(i) invested in any Government security as defined in section 2(2) of
Public Debt Act, 1944, or in any other security which may be
approved by the Government in this behalf, or
(ii) deposited in any account with the Post Office Savings Bank, or
(iii) deposited at least fifty per cent of such money in an account with
scheduled bank of which 51% or more shares are held by the
Government and the rest amount of money may be deposited in any
scheduled bank.
(3) Where any income which-
(a) is applied to purposes other than charitable or religious purposes or ceases
to be accumulated or set apart for application thereto, or
(b) ceases to remain invested in any security or deposited in any account
referred to in sub-paragraph (2), or
(c) is not utilised for the purpose for which it is so accumulated or set apart
during the period referred to in sub-paragraph (2) or in the year
immediately following the expiry thereof,
shall be deemed to be the income of such person of the income year in which it
 is so applied or ceases to be so accumulated or set apart or ceases to remain so
invested or deposited or, as the case may be, of the income year immediately
following the expiry of the period aforesaid.

1A. Any service charge derived from operation of micro credit by a non-government
organisation registered with NGO Affairs Bureau.
Explanation.- For the purpose of this paragraph, "service charge" means any financial
charge or interest or share of profit, called by whatever name, paid or payable by the
loan recipient for the amount borrowed under micro credit programme from the non-
government organisation.

2. Any voluntary contributions received by a religious or charitable institution and

applicable solely to religious or charitable purposes:
Provided that nothing contained in paragraph 1 or 2 shall operate to exempt from the
provisions of this Ordinance that part of the total income of a private religious trust
which does not ensure for the benefit of the public.

3. The income of a local government.

4. (a) Any income accruing to, or derived by, a provident fund to which the Provident
Fund Act, 1925, applies.
(b) Any income accruing to, or derived by, workers participation fund established
under the বোাং঱োচেল শ্রম আইি,২০০৬ Bangladesh Labour Act, 2006, subject to any
such conditions and limits as may be prescribed.

5. Any special allowance, benefits or perquisite specifically granted to meet expenses

wholly and necessarily incurred in the performance of the duties of an office or
employment of profit.

6. Any income received by the trustees on behalf of a recognised provident fund, an

approved superannuation fund or pension fund and an approved gratuity fund.

7. Any income received-

(a) by any ambassador, high commissioner, envoy, minister, charge d'affairs,
commissioner, counsellor, consul de carriere, secretary, adviser or attache of an
embassy, high commission, legation or commission of a foreign State, as
remuneration from such State for service in such capacity;
 (b) by a trade commissioner or other official representative in Bangladesh of a
foreign State (not holding office as such in an honorary capacity) as his official
salary, if the official salary of the corresponding officials, if any, of the
Government, resident for similar purposes in the country concerned, enjoy a
similar exemption in that country;
(c) by a member of the staff of any of the officials referred to in clauses (a) and (b),
as his official salary, when such member is not a citizen of Bangladesh and is
either a subject of the country represented or a subject of some other foreign
State and is not engaged in any business or profession or employment in
Bangladesh otherwise than as a member of such staff, and the country
represented has made corresponding provisions for similar exemptions in the
case of members of the staff of the corresponding officials of the Government of
the People's Republic of Bangladesh in that country.

8. Any pension due to, or received by an assessee from the Government or an approved
pension fund.

9. [deleted]

10. [deleted]

11. [deleted]

11A. Any sum or aggregate of sum received as dividend by a person being an individual
from a company or companies listed to any stock exchange in Bangladesh up to taka
fifty thousand.

12. [deleted]

13. [deleted]

14. Any income chargeable under the head "Income from property,"-
(a) in respect of a building the erection of which is begun and completed at any time
between the first day of July, 1975 and the thirtieth day of June, 1980 (both days
inclusive), and the building is intended to be, and is actually, used for residential
purposes only, for a period of five years from the date of such completion,
subject to the following limits, namely,-
 (i) in a case where the annual value of such - the whole of such value;
building does not exceed Tk. 8,400,
(ii) in a case where the annual value of such - Tk. 8,400:
building exceeds Tk. 8,400,
Provided that where an assessee claims exemption in respect of more than
one such building, the exemption under this clause shall be restricted to
such portion of the aggregate annual value of such building as does not
exceed Tk. 8,400;
(b) in respect of a building the erection of which is begun and completed at any time
between the first day of July, 1980 and the thirtieth day of June, 1985 (both days
inclusive), and the building is intended to be and is actually, used for residential
purposes only, for a period of 5 years from the date of such completion, subject
to the following limits, namely,-
(i) in a case where the annual value of such - the whole of such value;
building does not exceed Tk. 15,000,
(ii) in a case where the annual value of such - Tk. 15,000:
building exceeds Tk. 15,000,
Provided that where an assessee claims exemption in respect of more than
one such building, exemption under this clause shall be restricted to such
portion of the aggregate annual value of such building as does not exceed
Tk. 15,000;
(c) in respect of a building the erection of which is begun and completed at any time
between the first day of July, 1975 and the thirtieth day of June, 1980 (both days
inclusive), and which is intended to be and is actually, used for residential
purposes only, for a period of 5 years from the date of such completion, subject
to the condition that the plinth area of the building is not more than two thousand
square feet. The exemption under this clause shall also apply in the case of
housing companies, societies and estates where the construction comprises
bungalows, flats, apartments or units (hereinafter referred to as units) each
containing plinth area of not more than two thousand square feet provided the
construction comprises not less than 25 units;
(d) in respect of a building the erection of which is begun and completed at any time
between the first day of July, 1980 and the thirtieth day of June, 1985 (both days
inclusive), and which is intended to be, and is actually, used for residential
purpose only, for a period of five years from the date of such completion, subject
to the condition that the plinth area of the building is not more than one thousand
square feet. The exemption under this clause shall also apply in the case of
housing companies, societies and estates where the construction comprises
bungalows, flats, apartments or units (hereinafter referred to as unit) each
containing plinth area of not more than one thousand square feet provided the
construction comprises not less than twenty-five units;
 (e) in respect of building the erection of which is begun and completed at any time
between the first day of July, 1985 and the thirtieth day of June, 1990 (both days
inclusive), and the building is intended to be, and is actually, used for residential
purposes only, for a period of 5 years from the date of such completion, subject
to the following limits, namely :-
(i) in a case where the annual value of such - the whole of such value;
building does not exceed Tk. 15,000,
(ii) in a case where the annual value of such - Tk. 15,000:
building exceeds Tk. 15,000,
Provided that where an assessee claims exemption in respect of more than
one such building, the exemption under this clause shall be restricted to
such portion of the aggregate annual value of such building as does not
exceed Tk. 15,000;
(f) in respect of a building the erection of which is begun and completed at any time
between the first day of July, 1985 and the thirtieth day of June, 1990 (both days
inclusive), and which is intended to be, and is actually, used for residential
purposes only, for a period of five years from the date of such completion,
subject to the condition that the plinth area of the building is not more than one
thousand square feet. The exemption under this clause shall also apply in the
case of housing companies, societies and estates where the construction
comprises bungalows, flats, apartments or units (hereinafter referred to as units)
each containing plinth area of not more than one thousand square feet provided
the construction comprises not less than twenty-five units;
(g) in respect of a building the erection of which is begun and completed at any time
between the first day of July,1990 and the thirtieth day of June,1995 (both days
inclusive) and the building is intended to be, and is actually, used for residential
purposes only, for a period of five years from the date of such completion
subject to the following limits, namely :-
(i) in a case where the annual value of such - the whole of such value;
building does not exceed Tk. 30,000;
(ii) in a case where the annual value of such - Tk. 30,000:
building exceeds Tk. 30,000;
Provided that where an assessee claims exemption in respect of more
than one such building, the exemption under this clause shall be
restricted to such portion of the aggregate annual value of such building
as does not exceed Tk. 30,000;

15. [deleted]
16. [deleted]

17. [deleted]

18. Any income received by an assessee in respect of any share of income out of the
capital gains on which tax has been paid by the firm of which the assessee is a partner.

19. Any sum received by an assessee as a member of a Hindu undivided family where
such sum has been paid out of the income of the family.

20. Any income up to taka two crore fifty lakh received by an assessee as gratuity from
the Government or an approved gratuity fund.

21. Any payment from-

(a) A provident fund to which the provident Funds Act, 1925, applies; or
(b) a recognised provident fund, subject to any such conditions and limits as may be
prescribed; or
(c) an approved superannuation fund, subject to any such conditions and limits as
may be prescribed; or
(d) a workers participation fund established under বোাং঱োচেল শ্রম আইি, ২০০৬ to any
person not exceeding fifty thousand taka, notwithstanding anything contained in
any other law for the time being in force regarding tax exemption of such
payment;

22. [deleted]

22A. Income from a mutual fund or a unit fund up to Tk. 25,000.

23. [deleted]

24. Any interest classifiable under the head "Interest on securities" receivable by an
assessee on any security of the Government, which is issued with the condition that
interest thereon shall not be liable to tax.

24A. Any income received by an assessee from wage earners development bond, US dollar
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

premium bond, US dollar investment bond, Euro premium bond, Euro investment
bond, Pound sterling investment bond or Pound sterling premium bond.

25. Any sum representing interest credited on the accumulated balance of an employee in
a recognised provident fund, in so far as it does not exceed one-third of the salary of
the employee for the year concerned and in so far as it is allowed at a rate not
exceeding such rate as the Board may, by notification in the official Gazette, fix in this
behalf.

26. Any amount received by an employee of a Government organisation, a local authority,

or an autonomous or semi-autonomous body including the units or enterprises
controlled by it, at the time of his voluntary retirement in accordance with any scheme
approved by the Government in this behalf.

27. Notwithstanding anything contained in any order or regulation for the time being in
force, any income of an individual, being an indigenous hillman of any of the hill
districts of Rangamati, Bandarban and Khagrachari, which has been derived solely
from economic activities undertaken within the said hill districts.

28. An amount equal to 50% of the income of an assessee, other than a company not
registered in Bangladesh, derived from the business of export but it shall not apply in
case of an assessee, who is enjoying exemption of tax or reduction in rate of tax by
any notification made under this Ordinance.
Explanation.-- For the purpose of this paragraph,--
(a) sale of locally manufactured machinery, equipments and other finished products
within the country to any agency against its procurement program in foreign
exchange quota; and
(b) supply of locally manufactured raw materials and other inputs to export oriented
industry under internal back-to-back letter of credit, shall also be included in the
definition of "business of export."

29. Any income, not exceeding taka 2 (two) lakh, chargeable under the head "Agricultural
income" of an assessee, being an individual, whose only source of income is
agriculture.

30. [deleted]

31. [deleted]

asadtax@gmail.com Page
31A. [deleted]

31B. [deleted]

32. [deleted]

32A. Any sum or aggregate of sums received as interest from pensioners' savings certificate
where the total accumulated investment at the end of the relevant income year in such
certificate does not exceed taka five lakh.

33. Any income derived from the following business of a person being a resident or a non-
resident Bangladeshi for the period from the first day of July, 2008 to the thirtieth day
of June, 2024 on the conditions that the person shall file income tax return in
accordance with the provisions of section 75-
(i) Software development;
(ii) Software or application customization;
(iii) Nationwide Telecommunication TransmissionNetwork (NTTN);
(iv) Digital content development and management;
(v) Digital animation development;
(vi) Website development;
(vii) Web site services;
(viii) Web listing;
(ix) IT process outsourcing;
(x) Website hosting;
(xi) Digital graphics design;
(xii) Digital data entry and processing;
(xiii) Digital data analytics;
(xiv) Geographic Information Services (GIS);
(xv) IT support and software maintenance service;
(xvi) Software test lab services;
(xvii) Call center service;
(xviii) Overseas medical transcription;
(xix) Search engine optimization services;
 (xx) Document conversion, imaging and digital archiving;
(xxi) Robotics process outsourcing;
(xxii) Cyber security services.

34. Subject to the conditions made hereunder any income from fisheries, poultry,
production of seeds, marketing of locally produced seeds, cattle farming, dairy
farming, horticulture, frog faming, mushroom farming, floriculture, sericulture for the
period from the first day of July, 2008 to the thirtieth day of June, 2011-
(a) if such income exceeds Tk. 1,50,000, the person shall invest an amount not less
than 10% of the said income in the purchase of bond or securities issued by the
Government within 6 months from the end of the income year and hold such
bond or securities till maturity of such bond or securities;
(b) the person shall file return in accordance with the provisions of under sub-
section (5)of section 75 of the Ordinance; and
(c) no such income shall be transferred within five years from the end of the
income year
Provided that income from fisheries as mentioned in this paragraph shall not apply
to a company as defined in clause (20) of section (2) of this Ordinance.

35. Any income derived from the export of handicrafts for the period from the first day of
July, 2008 to the thirtieth day of June, 2024.

36. Any amount paid by the Government as tax on behalf of a petroleum exploration
company engaged in exploration of petroleum products in Bangladesh under
Production Sharing Contract (PSC) with the Government of Bangladesh.

37. Income of any private Agricultural College or private Agricultural University derived
from agricultural educational activities.

38. Any income derived from any building situated in any area of Bangladesh, not less
than five storied having at least ten flats, constructed at any time between the first day
of July, 2009 and the thirtieth day of June, 2014 (both days inclusive), for ten years
from the date of completion of construction of the building, except the building
situated in any areas of City Corporation, Cantonment Board, Tongi Upazila,
Narayanganj Paurashava, Gazipur Paurashava and any paurashava under Dhaka
district.
39. Income derived from any Small and Medium Enterprise (SME) engaged in production
of any goods and having an annual turnover of not more than taka 50 lakh:
Provided that person shall file income tax return in accordance with the provisions
of section 75 of the Ordinance.

40. Any income derived from Zero Coupon Bond received by a person other than Bank,
Insurance or any Financial Institution, subject to the following conditions:
(a) that the Zero Coupon Bond is issued by Bank, Insurance or any Financial
Institution with prior approval of Bangladesh Bank and Securities Exchange
Commission.
(b) that the Zero Coupon Bond is issued by institution other than Bank, Insurance
or any Financial Institution with prior approval of Securities Exchange
Commission.

41. [deleted]

42. Any income from poultry farming for the period from the first day of July 2011 to the
thirtieth day of June, 2015 subject to the following conditions :
(a) if such income exceeds Tk. 1,50,000, an amount not less than 10% of the said
income shall be invested in the purchase of bond or securities issued by the
Government within 6 months from the end of the income year;
(b) the person shall file return of his income in accordance with the provisions of
clause (c) of sub-section (2) of section 75 of this Ordinance; and
(c) no such income shall be transferred by way of gift or loan within five years
from the end of the income year.

43. Any profits and gains under the head "Capital Gains" arising from the transfer of
stocks or Shares of a public company as defined in ক@োম্পোনি আইি, ১৯৯৪ listed in any
stock exchange in Bangladesh of an assessee being a non-resident subject to the
condition that such assessee is entitled to similar exemption in the country in which he
is a resident.

44. An amount of income derived from cinema hall or Cineplex which starts commercial
exhibition between the first day of July, 2012 and thirtieth day of June, 2024 for the
period, and at the rate specified below:
if it is set-up in-
(i) Dhaka, Mymensing or Chittagong divisions (excluding Rangamati, Bandarban
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

and Khagrachari districts) for a period of five years beginning with the month
of commencement of commercial exhibition:
Period of Exemption Rate of Exemption
For the first two years (first and second year) 100% of income
For the next two years (third and fourth year) 50% of income
For the next one year (fifth year) 25% of income
(ii) Rajshahi, Khulna, Sylhet Rangpur and Barisal divisions and Rangamati,
Bandarban and Khagrachari districts for a period of ten years beginning with
the month of commencement of commercial exhibition:
Period of Exemption Rate of Exemption
For the first three years (first, second and third year) 100% of income
For the next three years (fourth, fifth and sixth year) 50% of income
For the next four year (seventh to tenth years) 25% of income

45. An amount of income derived by an industrial undertaking engaged in the production

of rice bran oil and commencing commercial production by thirtieth day of June, 2024
and at the rate specified below:
if the said undertaking is set-up in-
(a) Dhaka, Mymensingh or Chittagong divisions (excluding city corporation area
and Rangamati, Bandarban and Khagrachari districts) for a period of five years
beginning with the month of commencement of commercial production:
Period of Exemption Rate of Exemption
For the first two years (first and second year) 100% of income
For the next two years (third and fourth year) 50% of income
For the next one year (fifth year) 25% of income
(b) Rajshahi, Khulna, Sylhet Rangpur and Barisal 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:
Period of Exemption Rate of Exemption
For the first three years (first, second and third year) 100% of income
For the next three years (fourth, fifth and sixth year) 50% of income
For the next four year (seventh to tenth years) 25% of income

asadtax@gmail.com Page
46. An amount equal to 50% of the income of an assessee derived from the production of
corn/maize or sugar beet;

47. Income of an assessee donated in an income year to any fund established by or under
the provisions of প্রিোিমন্ত্রীরনলক্ষোসহোয়িোট্রোস্টআইি, ২০১২ (Trust of Prime Minister's Education
Assistance Act, 2012) subject to a maximum of-

(a) 20% of income of a company or taka 8 (eight) crore, whichever is less;

(b) 20% of income of an assessee other than a company or taka 1 (one) crore,
whichever is less.

48. Any income earned in abroad by an individual assessee being a Bangladeshi citizen
and brought any such income into Bangladesh as per existing laws applicable in
respect of foreign remittance.

49. Income of an assessee donated in an income year by a crossed cheque or bank transfer
to any girls' school or girls' college approved by the Ministry of Education of the
government.

50. Income of an assessee donated in an income year by a crossed cheque or bank transfer
to any Technical and Vocational Training Institute approved by the Ministry of
Education of the government.

51. Income of an assessee donated in an income year by a crossed cheque or bank transfer
to any national level institution engaged in the Research & Development (R&D) of
agriculture, science, technology and industrial development.

52. Any income, not being interest or dividend classifiable under the head ―Income from
other sources‖, received by any educational institution, if it -
(i) is enlisted for Monthly Pay Order (MPO) of the Government;
(ii) follows the curriculum approved by the Government;
(iii) is governed by a body formed as per Government rules or regulations.

53. Any income, not being interest or dividend classifiable under the head ―Income from
other sources‖, received by any public university or any professional institute
established under any law and run by professional body of Chartered Accountants or
Cost and Management Accountants or Chartered Secretaries.
54. Any income earned by an alternative investment fund recognized by the Bangladesh
Securities and Exchange Commission.

55. Any income of the Bangladesh Securities and Exchange Commission for the
Assessment Years starting from the first day of July, 2017 to the thirtieth day of June,
2022.

56. Any amount in the nature of an honorarium or allowance from মযনিচযোদ্ধো @঱্োণ ট্রোস্ট or any
welfare allowance received by any person from the Government.

57. Any reward received by any person from the Government.

58. Any income derived from the operation of an elderly care home or a day care home
for children.

59. Any income of an educational or training institution runs exclusively for persons with
disability.

60. Any distribution of taxed dividend to a company if the company distributing such
taxed dividend has maintained separate account for the taxed dividend.
 THE SIXTH SCHEDULE
PART B
EXEMPTIONS AND ALLOWANCES FOR ASSESSEES BEING RESIDENT
AND NON-RESIDENT BANGLADESHI
[See section 44 (2)]

1. Any sum paid by an assessee, being an individual, to effect an insurance, or a contract

for deferred annuity, on the life of the assessee or on the life of a wife or husband or a
minor child of the assessee, subject to the limit of such payment, in the case of
insurance, to 10% of the actual sum assured (excluding bonus or other benefits).

2. Any sum paid by an assessee, being a Hindu undivided family, to effect an insurance
on the life of any male member of the family or the wife of any such member:
Provided that no exemption under this paragraph or paragraph (1) shall be allowed
unless the premium and the proceeds of the life insurance policy or the contract for
deferred annuity, as the case may be, are both payable in Bangladesh.

3. Any sum deducted from salary payable by or on behalf of the Government to any
individual, being a sum deducted in accordance with the conditions of his service for
the purpose of securing to him a deferred annuity or of making provisions for his wife
or children, provided that the sum so deducted shall not exceed one-fifth of the salary.

4. Any sum paid by the assessee as a contribution to any provident fund to which
Provident Fund Act, 192, applies.

5. Any sum representing the assessee's and the employer's contribution to a recognised
provident fund in which the assessee is a participant subject to the limits laid down in
Part B of the First Schedule.

6. Any sum paid by the assessee as ordinary annual contribution to approved

superannuation fund in which the assessee is a participant.

7. [deleted]

8. [deleted]
9. [deleted]

10. (1) Subject to the maximum laid down in sub-paragraph (2), any sum invested by an
assessee, not being a company, in the purchase of the following, namely:-
(a) such savings certificates or instruments as the Board may specify in this
behalf;
(b) unit certificates and mutual fund certificates issued by any financial
institution or the Investment Corporation of Bangladesh and its
subsidiaries;
(c) such Government securities (including Development loans or Bonds) as
the Board may specify in this behalf ; and
(d) shares of such investment companies as the Board may specify in this
behalf.
Explanation.-For the purpose of clause (d) "investment companies" means
companies engaged principally or wholly in buying and selling securities of
other companies and includes a company 80% of whose paid up capital is
employed at any one time as investment in other companies, but does not
include a bank or an insurance company or a corporation which is a member of
stock exchange.
(2) Where any certificate, security or share (herein referred to as "the certificate") to
which clause (a), (b), (c) and (d) of sub-paragraph (1) apply and in respect of
which any credit in tax has been allowed to the assessee, is disposed of by sale,
transfer or in any other manner within five years from the date of its purchase or
before the maturity thereof, as the case may be, then, notwithstanding anything
contained in this Ordinance, the amount of tax payable by the assessee under the
other provisions of this Ordinance in respect of the income year in which such
certificate was so disposed of, shall be increased by an amount equal to the
credit in tax allowed to the assessee in respect of such certificate (hereinafter
referred to as the "said amount") and the sum so arrived at or where no tax is
payable by the assessee under the other provisions of this Ordinance in respect
of that income year, the said amount shall be deemed to be the tax payable in
respect of that income year and other provisions of this Ordinance shall, so far as
may be, apply accordingly.

11. An amount not exceeding Tk. 60,000 by an individual in any deposit pension scheme
sponsored by a scheduled bank or a financial institution.

11A. Any sum paid as donation by an assessee to a charitable hospital which is established
outside the city corporation area one year before such payment and is approved by the
 Board for this purpose.

11B. Any sum paid as donation by an assessee to an organization set up for the welfare of
retarded people, established at least one year before such payment and is approved by
the Social Welfare Department and by the Board for this purpose.

12. [deleted]

13. any sum paid by an assessee as Zakat to the Zakat Fund or as donation or contribution
to a charitable fund established by or under the Zakat Fund Ordinance,1982 (XI of
1982).

14. [deleted]

15. Any sum which the assessee is entitled to receive out of the income of an association
of persons (other than a Hindu undivided family, company or a firm) on which tax has
already been paid by the association:
Provided that where there is included in the total income of an assessee any income
exempted under this paragraph, the tax payable by the assessee shall be an amount
bearing to the total amount of the tax which would have been payable on the total
income had no part of it been exempted, at the same proportion as the unexempted
portion of the total income bears to the total income.

16. Any sum being the share or portion of the share of the assessee in the income of a firm
if tax of such income has already been paid by the firm:
Provided that where there is included in the total income of an assessee any income
exempted under this paragraph, the tax payable by the assessee shall be an amount
bearing to the total amount of the tax which would have been payable on the total
income had no part of it been exempted, at the same proportion as the unexempted
portion of the total income bears to the total income.

17. Any sum paid by an assessee, in order to make provision for his wife, children or
other persons dependent on him, to a benevolent fund or any premium paid under a
group insurance scheme if such fund or the scheme is approved by the Board for this
purpose.

18. [deleted]
19. [deleted]

20. [deleted]

21. Any sum paid by an assessee as donation to any socio-economic or cultural

development institution established in Bangladesh by the Aga Khan Development
Network.

22. Any sum paid by an assessee as donation to a philanthropic or educational institution

which is approved by the Government for this purpose.

23. [deleted]

24. Any sum paid by an assessee as donation to a national level institution set up in
memory of the liberation war.

25. Any sum paid by an assessee as donation to a national level institution set up in
memory of Father of the Nation.

26. [deleted]

27. Any sum invested by an assessee, being an individual, in the acquisition, of any stocks
or shares of a company, mutual fund or debenture listed with any stock exchange.

28. Any sum invested by an assessee, being an individual, in the purchase of Bangladesh
Government Treasury Bond.
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

THE SEVENTH SCHEDULE

COMPUTATION OF RELIEF FROM INCOME TAX BY WAY OF CREDIT IN
RESPECT OF FOREIGN TAX
[See section 144 (4)]

1. Definitions.-
(1) In this Schedule,-
(a) "Bangladesh tax" means income tax charged in accordance with the
provisions of the Income Tax Ordinance,1984;
(b) "foreign tax" means, in relation to any country an agreement with the
Government of which has effect by virtue of section 144 of this Ordinance,
any tax chargeable under the laws of that country for which credit may be
allowed under the agreement;
(c) "foreign income tax" means any foreign tax which corresponds to income tax.
(2) Where, an agreement having effect by virtue of the said section 144, provides for
any tax chargeable under the laws of the country concerned being treated as income
tax, that tax shall be treated as foreign tax or foreign tax other than foreign income
tax, as the case may be.
(3) Any reference in this Schedule to foreign tax or foreign income tax shall be
construed, in relation to credit to be allowed under any agreement, as a reference
only to tax chargeable under the laws of the country with the Government of which
the agreement was made.

2. Credit against Bangladesh tax.-

Subject to the provisions of this Schedule, where, under an agreement concluded under
section 144, credit is to be allowed against Bangladesh tax chargeable in respect of any
income, the amount of the Bangladesh taxes so chargeable shall, subject to the provisions
of the said agreement, be reduced by the amount of the credit.

3. Credit admissible to residents.-

Credit shall not be allowed against income tax for any year of assessment unless the
persons in respect of whose income the tax is chargeable is resident for the period on the
basis of which income is assessed.

4. Computation of credit.-
The amount of the credit to be allowed for foreign tax against Bangladesh tax in respect
of any income shall not exceed the amount which would be arrived at by applying the

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 average rate of such tax to the doubly taxed income.

5. Effect on computation of income on allowance of credit.-

(1) Where the income includes a dividend and, under the agreement, foreign tax,
whether chargeable directly or by deduction in respect of the dividend or not, is to
be taken into account in considering whether any, and if so, how much, credit is to
be allowed against the Bangladesh tax in respect of the dividend, the amount of the
income shall be treated as increased by the amount of the foreign tax appropriate to
the dividend which falls to be taken into account in computing the amount of the
credit.
(2) Where the amount of the income is to be treated as increased under sub-paragraph
(1), the foreign tax not chargeable directly or by deduction which is to be taken into
account, shall be so much as borne by the body corporate paying the dividend upon
the profits for the period for which the dividend is paid, or, if the dividend is not
paid for a specified period, the profits of the last period for which accounts of the
body corporate were made up which ended before the dividend became payable.
Explanation.-In this sub-paragraph "paid" means paid, credited or distributed or
deemed to have been paid, credited or distributed.
(3) Notwithstanding anything contained in the preceding provisions of this paragraph
and in section 30, where part of the foreign tax in respect of the income cannot be
allowed as a credit against the Bangladesh tax, the amount of the income shall be
treated for the purposes of income tax as reduced by that part of that foreign tax.
(4) Where the income tax payable depends on the amount received in Bangladesh the
said amount shall be treated as increased by the amount of the credit allowable
against income tax.
(5) In computing the total income of a person for the purpose of determining the rate
mentioned in paragraph 4, sub-paragraph (1) and (3) of this paragraph shall not
apply, and for the reference in sub-paragraph (4) of this paragraph, to the amount of
the credit allowance against income tax, there shall be substituted a reference to the
amount of the foreign tax in respect of the income.

7. Limitation for claim.-

(1) Subject to the provisions of sub-paragraph (2), any claim for an allowance by way
of credit for foreign tax in respect of any income shall be made to the Deputy
Commissioner of Taxes of the district in which the claimant is chargeable to
income tax not later than two years from the end of the year of assessment for
which that income falls to be charged to Bangladesh tax or would fall so to be
charged if any such tax were chargeable in respect thereof.
(2) Where, the amount of any credit given under the agreement is rendered excessive
or insufficient by reason of any adjustment of the amount of any tax payable either
[Unofficial version] ITOrdinance, 1984 [For AY 2020-21]

in Bangladesh or under the laws of any other country, nothing in the Ordinance
limiting the time for the making of assessment or claims for refund shall apply to
any assessment or claim to which the adjustment gives rise, being an assessment or
claim made not later than two years from the time when all such assessment,
adjustments and other determinations have been made whether in Bangladesh or
elsewhere, as are material in determining whether any, and if so, how much, credit
falls to be given.

7. Appeal.-
A person claiming an allowance by way of credit for foreign tax may appeal to the
Appellate Joint Commissioner against any order of the Deputy Commissioner of Taxes
disallowing the claim either wholly or in part, within thirty days of the date on which the
order of the Deputy Commissioner of Taxes was communicated to the claimant, and the
provisions of Chapter XIX of the Ordinance shall, with the necessary modifications,
apply accordingly.

8. Provisions as to the deduction of tax at source.-

(1) The provisions of this paragraph shall have effect where an agreement having effect
under section 144 of the Ordinance provides for the exemption from Bangladesh
tax of any class of income arising to persons resident in the country with the
Government of which the agreement is made, being income from which deduction
of tax is required to be made under the Ordinance.
(2) Any person who pays income of any such class (referred to in this paragraph as
"the Bangladesh payer") to a person in the said country who is beneficially entitled
to the income (such person being referred to in this paragraph as "the non-
resident") may be required, by notice given by or under the direction of the Board,
to pay any such income to the non-resident without deduction of tax, and where
such notice is given, any income from any source specified in the notice, being
income for a year for which the agreement has effect, which the Bangladesh payer,
the date on which the notice was communicated, pays to the non-resident whose
name is specified therein, shall, subject to the following provisions of this
paragraph, be paid without deduction of tax.
(3) Any notice given under sub-paragraph (2) may be expressed to become ineffective
if certain specified events happen or, whether so expressed or not, may be cancelled
by a notice of cancellation given by or under the direction of the Board, and if, to
the knowledge of the Bangladesh payer, any of those events happens or if such
notice of cancellation is given, any payment made to the non-resident by the
Bangladesh payer after the happening of that event becomes known to the
Bangladesh payer, or after the date on which that notice was communicated to the
Bangladesh payer, as the case may be, shall be subject to deduction of tax in
accordance with the Ordinance.

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(4) If it is discovered, after a notice has been given under sub-paragraph (2) that the
non-resident is not entitled to exemption from tax in respect of income from any
source specified in the notice, any tax which, but for the notice, would have been
deductible from any payment made to the non-resident by the Bangladesh payer but
by virtue of the notice has not been so deducted shall, if a deduction to that effect is
given by or under the direction of the Board, be deducted by the Bangladesh payer
out of so much of the first payment made to the non-resident after the date on
which the direction was communicated to the Bangladesh payer as remains after the
deduction of any tax deductible therefrom under the Ordinance, and any balance
which cannot be deducted out of the first such payment shall be deducted, subject
to the same limitation, out of the next such payment, and so on, until the whole of
the tax (the amount of which shall be specified in the direction) has been deducted.
(5) Any tax which the Bangladesh payer is required to deduct under sub-paragraph (4)
shall be paid to the Government and the provisions of Chapter VII of the Ordinance
relating to deduction of tax at source shall, with necessary modifications, apply
accordingly.
(6) A notice may be given under sub-paragraph (2) where income is paid to a person
authorized to receive such income on behalf of a non-resident, and in such a case,
the reference in this paragraph to payment to the non-resident shall be treated as
including references to payment to that person.

THE EIGHTH SCHEDULE

Deductions or Collections of tax at source
[See section 62A]
[deleted]