Income Tax Ordinance

Chapter IV

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16. Charge of income tax.-

         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 -

(i) a non-resident person, not being a company;

(ii) any income classifiable under the head "Capital gains"; and

(iii) any income by way of "winnings" referred to in section 19 (13),

16A. Charge of surcharge.-

1[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.]

 

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1.Ins by F.A. 1988

16BBB. Charge of minimum tax.-

116BBB. 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.]

 

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1 Subs by F.A. 2016

16BB. Charge of additional amount, etc.-

1[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.

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1 Subs. by F.A. 2016

16B. Charge of additional tax.-

1[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 Board of Investment or any competent authority of the Government, as the case may be, any individual not being a Bangladeshi citizen to work at his business or profession at any time during the income year, such person shall be charged additional tax at the rate of fifty percent (50%)of the tax payable on his income or taka five lakh, whichever is higher in addition to tax payable under this Ordinance.

 

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1 Subs  by F.A. 2016

16C. Charge Or Excess Profit Tax.

16C. Charge Or Excess Profit Tax.-

 

 

Where a banking company operating under ব্যাংক কোম্পানী আইন, 1991 (1991 সনের 14 নং আইন) shows profit in its return of income for an income year at an amount exceeding fifty per cent of its capital as defined under the said Act together with reserve, the company, in addition to tax payable under the Ordinance, shall pay an excess profit tax for that year at the rate of fifteen per cent on so much of profit as it exceeds fifty per cent of the aggregate sum of the capital and reserve as aforesaid.

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Deleted by F. A. 2016

 

16CC. Charge of minimum tax.-

1[16CC.] Charge of minimum tax.-

(1)   This section shall apply to a company in the case where, for any reason whatsoever, including the sustaining of a loss,the setting off of a loss of an earlier year, the application of tax credits or rebates, or the claiming of allowances or deductions (including depreciation and amortization deductions) allowed under this Ordinance or any other law for the time being in force, tax is not payable or paid by such company for an assessment year, or tax payable or paid by such company for an assessment year is less than 2[point two five  per cent (0.25%) of the amount representing such company’s turnover from all sources for that year or taka five thousand whichever is higher.

(2) Where this section applies, -

  (a) the aggregate of the company.s turnover assessed for the assessment year shall be deemed to be the income    of       such company for the year chargeable to tax;

   (b) such company shall pay as income tax for the assessment year an amount equal to3[point two five per cent(0.25%) of the turnover      assessed for the  year or taka five thousand whichever is higher.

Explanation: For the purposes of this section, "turnover" means-
(a) the gross receipts derived from the sale of goods;
(b) the gross fees for rendering services or giving benefits including commissions or discounts;
(c) the gross receipts deprived from any heads of income excluding income from capital gains and receipts under speculation business;
(d) the company's share of the amounts stated above of any association of persons of which the company is a member.]

1. Ins.Sec. 16CC  by F.A. 2006 and subsequently omitted by F.O. 2008

2. Subs for "half per cent (0.50%)" by F. O. 2007

 

16CCC. Charge of minimum tax.-

1[16CCC. Charge of minimum tax.-

Notwithstanding anything contained in any other provisions of this Ordinance, [every firm having gross receipts of more than taka fifty lakh or every company]Subs F. A. 2013 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 at the rate of 3[zero point three zero (0.30%)] per cent of the amount 4[representing such firm’s or company’s] gross receipts from all sources for that year.

Explanation: For the purposes of this section, ‘gross receipts’ means-

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

(b) all fees or charges for rendering services or giving benefits including commissions or discounts;

(c) all receipts derived from any heads of income 5[:

[Provided that such rate of tax shall be zero point one zero per cent(0.10%) of such receipts for an industrial undertaking engaged in manufacturing of goods for the first three income years since commencement of its commercial production.] Added F. A. 2015.

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1 Ins. by. F.A. 2013

2 Subs. for "every company" by F.A. 2013

3 I Subs for "Zero point five zero (0.50%)" by F.A. 2014

4 I Subs. for "representing such company's" by F.A. 2013

5 I Subs. "Colon" for "full stop" and ins. new proviso by F. A. 2015

6 Deleted F. A. 2016

16D. Charge of dividend distribution tax:-

1[16D. Charge of dividend distribution tax:-

Notwithstanding anything contained in this Ordinance, where a company registered under , 1994 (1991 সালের ১৮নং আইন) declares dividend, whether interim or otherwise, on or after the first day of July,2003, the company shall pay, in addition to tax payable under this Ordinance, dividend distribution tax at the rate of ten per cent on such dividend within sixty days from the date of such declaration:  

 Provided that the provision of this section shall not apply in case of dividend referred to in sub-clause (dd) and sub-clause (e) of clause(26) of section 2.]

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1 Ins. by F.A. 2003 and subsequently omitted by F.A. 2005
 

 

16E. Charge of tax on sale of share in a premium over face value.—

 1[16E. Charge of tax on sale of share at a premium over face value.—

Notwithstanding anything contained in any other provisions of this Ordinance or any other law, where a company raises its share capital through book building or public offering or rights offering or placement or preferential share or in any other way, at a value in excess of face value, the company shall be charged, in addition to tax payable under this Ordinance, tax at the rate of three percent on the difference between the value at which the share is sold and its face value.]

 
1 Ins. new section 16E by F.A. 2010 subsequentl Omitted by F.A. 2013

17. Scope of the total income.-

17. Scop 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.--

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 business connection in Bangladesh;
(b) any property, asset, right or other source of income in Bangladesh;
or
(c) transfer of capital assets in Bangladesh:

Provided that in the case of a business all the operations of which are not  carried  out  in  Bangladesh,  only  such  part  of  the  income  as  is reasonably  attributable  to  the operation  carried  out  in  Bangladesh shall be deemed to accrue or arise in Bangladesh;

(3) any dividend paid outside Bangladesh by a Bangladeshi company;
(4) any income by way of interest payable-

(a) by the Government; o
(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 purposesof 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.

(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 inrespect 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.-

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  incomeyear 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  o f  the  Deputy Commissioner  of  Taxes,  satisfactory,  the  value  of  the  investments  shall  bedeemed 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 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 1[ 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 or stocks, and shares, 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 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.

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1Subs. for "income year in which it is declared" by F.O. 2007

 

 

(10)      Where any amount is received by an assessee during any income year by way of goodwill money or receipt in the nature of compensation or damages for cancellation or termination of contracts and licences by the Government or any person, such amount shall be demmed 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 1[Which makes any debtor taxable]], 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":

2[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, Rajshahi Krishi Unnyan Bank, 3[Bangladesh Shilpa Bank Ltd].  or a leasing company or a financial institution registered under আর্থিক প্রতিষ্ঠান আইন, 1993 (1993 সনের 27 নং আইন)]

4[Provided further that the provisions of this sub-section shall not apply in case of a benefit or advantage, of an assessee being an individual, not exceeding taka ten lakh resulting from the waiver of margin loan or interest thereof by a holder of Trading Right Entitlement Certificate (TREC) as defined under এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩(২০১৩সনের ১৫ নং আইন) in respect of the assessee’s investment in shares, debentures, mutual funds or securities transacted in the stock exchange;]

(12) Any managing agency commission including compensation received during any income year by an assessee for termination of agencies or any modification of the terms and conditions relating thereto shall be deemed to be his income for that income year classifiable under the head "Income from other sources".

(13) Any amount received by an assessee during any income year by way of winnings from lotteries, crossword puzzles, card games and other games of any sort or from gambling or betting in any form or of any nature whatsoever shall be deemed to be his income for that income year classifiable under the head "Income from other sources".

(14) Any profits and gains derived in any income year from any business of insurance carried on by a mutual insurance association computed in accordance with the provisions of paragraph 8 of the fourth schedule shall be deemed to be the income of such association for that income year.

(15) Where, for the purpose of computation of income of an assessee under section 28, any deduction has been made for any year in respect of any loss, bad debt, expenditure or trading liability incurred by the assessee, and--

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1 Omitted by F.A. 1999
2 Subs. by F.A. 2003
3 Subs. for "Bangladesh Shilpa Bank pr Bangladesh Shilpa Rin Aangstha" by F.A. 2014

4 Added F. A. 2016

 

 

 

 

(a)    subsequently, during any income year, the assessee has received, 1[except as provided in clause (aa)]whether in cash or in any other manner whatsoever, any amount in respect of such loss, bad debt, or expenditure, the amount so received shall be deemed to be his income from business or profession during that income year;

 2 [(aa) such amount on account of any interest which was to have been paid to any commercial bank or the 3[[Bangladesh Development Bank Ltd.] or on account of any share of profit which was to have been paid to  any  bank  run  on  Islamic  principles  and  which  was  allowed  as  a deduction in respect of such expenditure though such interest or share of profit was not paid by reason of the  Assessee  having  maintained his accounts on mercantile basis, within4[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 4[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:


5[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.]

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1Ins. by F.A. 1991
2Ins. by F.A. 1991
3Subs. by F.A. 2014
4Subs. for "two years" by F.A. 1999
5Subs. by F.A. 2003

 

 

   (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 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.

1[(21) Where any sum, or aggregate of sums 2[not exceeding taka five lakh] is claimed or shown to have been received as loan by an Assessee 3[, not being a company]  during  any  income  year  from  any  person,  not  being  a  banking company or a financial institution, otherwise than by a crossed cheque drawn on a bank 4[or bank transfer], and has not been paid back in full within 5[three years] from the end of the income year in which it is claimed or shown to have been received,the said sum or part thereof which has not been paid back, shall be deemed to be the income of the  Assessee  for the income year immediately following the expiry of the said 6[three years] and be classifiable under the head "Income from other sources":

Provided that where the loan referred to in this sub-section is paid back in a subsequent income year, the amount so paid shall be deducted in computing the income in respect of that subsequent year.]


7[(21A) Where any sum is claimed to have been received by an  Assessee  as loan  or  gift  during  any  income  year  from  a  person  who  has  transferred  the sum  within  the  period  of  limitation  stipulated  in  the  rule  made  under  this Ordinance, from the initial capital of his business or profession shown in his return filed under section 83A, the amount of such loan or gift so received by the  Assessee  shall be deemed to be his income of the year in which such loan or  gift  was  received  and  shall  be  classifiable  under  the  head  "income  from other sources.‖]


8[(21B) Where any sum, shown as initial capital of business or profession in return of income filed under section 82BB, 9[transferred by a person partly or  fully  from  that business  or  profession  within  the  period  of  limitation] stipulated in the said section, the sum so transferred shall be deemed to be his income of the year in which such sum was transferred and shall be classifiable under the head "Income from other sources".;]

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1 Ins. sub-sec. (21) and (22)by F.A. 1993
2 Subs. for "exceeding taka one lakh" by F.A. 2012
3 Ins by F.A. 2012.

4 Ins by F.A. 2015
5 Subs. for "two years" by F.A. 1999

6 Subs. for "two years" by F.A. 1999
7 Ins. by F.A. 2002.
8 Ins. by F.A. 2011 .
9 Subs. for "transferred by A person partly or fully within the period of limitation" by F.A. 2012

 


1[(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.]


2[(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  thispurpose  shall  be  deemed  to  be the  income  of  the  Assessee  for  that  income year, classifiable under the head "Income from business or profession".]

3[(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".;]


4[(25)where an assessee, being a director of any company , makes any business tour abroad more than twice in any income year and the expenses of whichvare claimed by the company as an expenditure in its accounts, fifty per cent of such expenses excluding the expenses for the first two tours shall be deemed to be the income of the assessee for the income year in which the tours were made and such income shall be classifiable under the head "Income from other sources."]]

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1 Ins by Sub-sec.(22) by F.A. 1993
2 Ins. Sub-sec. (23) by F.A. 1993
3 Subs. by F.A. 2012
4 Omitted by F.O. 2007

 

1[(26)   Where an assessee, being a company, receives any amount as loan 2[ from any other company otherwise than by a crossed cheque or by bank transfer, the amount so received shall be deemed to be the income of such assessee for that income year in which such loan was taken and shall be classifiable under the head "Income from other sources" 3[:

Provided that where the loan or part thereof referred to in this sub-section is repaid  in a subsequent income year, the amount so repaid shall be deducted in computing the income for that subsequent year.]

[(27)    Where an assessee, being a company, purchases directly or on hire one or more motor car or jeep and value of any motor car or jeep exceeds ten percent of its 4[paid up capital together with reserve and accumulated profit], paid up capital, then fifty percent of the amount that exceeds such ten percent of the 5[paid up capital together with reserve and accumulated profit], paid up capital shall be deemed to be the income of such assessee for that income year classifiable under the head "Income from other sources".]

6[(28) Where an Assessee, being an individual, receives any sum or aggregate of  sums  exceeding  taka  five  lakh  as  loan  or  gift  from  any  other  person otherwise  than  by  a  crossed  cheque  or  by  bank  transfer,  the  amount  so received shall be deemed to be the income of such  Assessee  for that income year in which such loan or gift was taken and shall be classifiable under the head " Income from other sources"7[:

 “Provided that nothing in this sub-section shall be applicable to a loan or gift from spouse or parents if any banking or formal channel is involved in the process of such loan or gift.”]

8[(29)] Where an assessee, not baing an assesse angaged real astat 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 9[which has not been paid within two years from the end of the income year in which the purchase was made, shall be deemed to be the income of the assessee for the income year immediately following the expiry of the said two years and be classifiable under the head “Income from other sources]

(30) Where an assessee, in the course of any proceedings under this Ordinance, is found to have any sum or part thereof allowed or deducted but not spent in accordance with the provision of clause (h) of sub-section (1) of section 25 of this Ordinance, such unspent sum or part thereof shall be deemed to be the income of such assessee for that income year classifiable under the head “Income from house property”.

10[(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, 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.”.]

...............................................................................................................

1 Ins. sub-sections (26) and (27) by F.A. 2011
2 Subs for "from any other company" by F.A. 2012
3 Ins by F.A. 2014

4 Subs. for "paid up capital" by F.A. 2015

5 Subs. for "paid up capital" by F.A. 2015
6 Ins. new sub-section (28) by F.A. 2012

7 Ins. new sub-section (28) by F.A. 2017

8 Ins. new sub-section (29), (30) and (31) by F.A. 2015

9 Subs F. A. 2016

10 Ins. new sub-section (31) by F.A. 2017

 

 

 

19A. Special tax treatment in respect of investment in new industry.-

1[19A. Special tax treatment in respect of investment in new industry.-

Notwithstanding anything contained in section 19 or in any other provision of this Ordinance, no question as to the source of any sum invested by any person in a company for setting up of new industry or physical infrastructure facility during the period between the first day of July 2009 and the thirtieth day of June 2010 (both days inclusive) shall be raised if the assessee pays, before the filing of return of income, tax at the rate of ten per cent on such sum invested and submit a declaration to this effect as prescribed:

Provided that the provision of this section will not apply in case where a concealment of income has been detected and proceedings under section 93 have been initiated prior to payment of tax under this section.

Explanation.- For the purpose of this section,-

(a) "new industry" means agro processing industry (fruits processing, baby corn packeting, fruit juice producing and rubber industry), textiles, spinning, textile machinery, garments, leather goods, toys, furniture, information technology enabled services (ITES),drugs and pharmaceuticals, light engineering, melamine, plastic products, ceramics, sanitary ware, steel from iron ore, MS rod, CI sheet, fertilizer, insecticide, pesticide, computer hardware, petro chemicals, agricultural machinery, boilers, basic raw materials of drugs, chemicals and pharmaceuticals, compressors, ship building, diamond cutting industry, shrimp processing industry, milk processing industry, accumulator and battery industry, tour operators, energy saving bulb producing industry, industry producing jute goods, recycling industry, herbal medicine , basic chemicals and dyes, cosmetics and toiletries, tourism industry, foot wear, MS billet and any other category of industry as the government may by notification in the official gazette specify,

(b) "Physical Infrastructure facility" means river or sea-port, container terminals, internal container depot, container freight station, Liquefied Natural Gas (LNG) terminal and transmission line, Compressed Natural Gas(CNG) terminal and transmission line, gas pipe line, flyover, elevated road, mono-rail, underground rail, telecommunication other than mobile phone, large water treatment plant and supply through pipe line, waste treatment plant, solar energy plant and any other category of physical infrastructure facility as the government may by notification in the official gazette specify.]

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1 Subs.by F.A.2009 and subsequently omitted by F.A.2010

 

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

1[19AA. Special tax treatment in certain cases of investment.-

Notwithstanding anything contained in this Ordinance, no question as to the source of any sum invested by any person in the expansion or balancing, modernisation, renovation and extension of an existing industry during the period between the first day of July 2009 and the thirtieth day of June, 2010 (both days inclusive), shall be raised if the assessee pays, before the filing of return of income, tax at the rate of ten per cent on such sum invested.]

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1 Subs.by F.A.2009 and subsequently omitted by F.A.2010

                     

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

1[19AAA. Special tax treatment in respect of investment in the purchase of stocks and shares.-

Notwithstanding anything contained in this Ordinance, no question shall be raised as to the source of any sum invested by an assessee, being an individual, firm, association of persons or a private limited company between the first day of July 2009 and the thirtieth day of June, 2010 (both days inclusive) in the purchase of stocks and shares of a company listed with any stock exchange in Bangladesh if the assessee pays, before the filing of return of income, tax at the rate of ten per cent on such sum invested:

Provided that the provisions of this section shall not apply if money so invested is withdrawn or transferred for any other purpose within two year from the date of their purchase.]

Provided further that provisions of this section shall not apply in case where a concealment of income has been detected and proceedings under section 93 have been initiated prior to payment of tax under this scetion.]

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1 Subs. by F.A. 2009 and subsequently omitted by F.A. 2010

 

 

 

 

 

 

19B. Special tax treatment in respect of investment in house property.–

1[19B.] Special tax treatment in respect of investment in house property.–

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 by any person in the construction or purchase of any building or apartment shall be raised if the assessee pays, before the assessment is completed for the relevant assessment year, tax at the rate of –

2[(a) taka three hundred per square meter in the case of a building or apartment  the plinth area of which does not exceed two hundred square meter for the  area of Gulshan Model Town, Banani, Baridhara, Defence Officers Housing  Society (DOHS), Dhanmondi Residential Area, Lalmatia Housing Society,   Uttara Model Town, Bashundhara Residential Area, Dhaka Cantonment,   Motijheel Commercial Area, Dilkhusha Commercial Area, Kawran Bazar   Commercial Area of Dhaka and Khulshi Residential Area, Panchlaish   Residential Area of Chittagong ;

(b) taka five hundred per square meter in the case of a building or apartment  the plinth area of which exceeds two hundred square meter for the areas   mentioned in clause (a);

(c)   taka two hundred per square meter in the case of a building or apartment   the plinth area of which does not exceed two hundred square meter for the   areaother than the areas mentioned in clause (a);

(d)  taka three hundred per square meter in the case of a building or apartment  the plinth area of which exceeds two hundred square meter for the area other  than the areas mentioned in clause (a)]

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1. Section 19B inserted by F.A. 199 and subsequently omitted by F.O. 2007

2 Subs. by F. A. 2006

     

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

1[19BB.] Special tax treatment in respect of investment in land property.-

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 by any person in purchasing of any land 2[situated in city corporation or pourashava or cantonment board] shall be raised if the assessee pays, before the assessment is completed for the relevant assessment year, tax at the rate of  3[seven and half per cent] of the deed value of the said land.]

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1 Section 19BB inserted by F.A. 2002 and subsequently omitted by F.O. 2007

2 Omitted by F.A 2006

3 Subs. for "five percent" by F. A. 2006

19BBB. Special tax treatment regarding investment in motor vehicles:--

1[19BBB.] Special tax treatment regarding investment in motor vehicles:--

Notwithstanding anything contained in this Ordinance, no question as to the source of any sum invested by any person in purchasing of motor vehicle, not plying for hire, shall be raised if the assessee pays tax at the following rate, at the time of registration of the motor vehicle or before the assessment is completed for the relevant year:

(a)  2 [fifteen per cent] of the purchase value where the car or jeep exceed 1500c.c;

(b) 3 [ten percent] of the purchase value where the car or jeep does not exceed 1500c.c  4[:

Provided that the provisions of this section shall apply in the case of first time registration of the said motor vehicle in Bangladesh.]] 

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Section 19BB inserted by F.A. 2004 and subsequently omitted by F.O. 2007

2 Subs for “seven and five and half per cent“ by F . A . 2006

3 Subs for “ five half per cent“ by F . A . 2006

4 Omitted by A.F. 2006

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

1[19BBBB. Special tax treatment in respect of investment in house property.-

Notwithstanding anything contained in this Ordinance, no question shall be raised as to the source of any sum invested by any person during the period between the first day of July 2009 and the thirtieth day of June, 2010 (both days inclusive) in the construction or purchase of any building or apartment if the assessee pays, before the assessment is completed for the relevant assessment year, tax at the rate of

(a)    taka eight hundred per square metre in the case of a building or apartment the plinth area of which does not exceed one hundredsquare metre for area of Gulshan Model Town, Banani, Baridhara, Defence Officers' Housing Society   (DOHS), Dhanmondi Residential Area, Lalmatia Housing Society, Uttara Model Town, Bashundhara Residential Area, Dhaka Cantonment area, Motijheel Commercial Area, Dilkhusha Commercial Area, Kawran Bazar Commercial Area of Dhaka and Khulshi Residential Area, Panchlaish Residential Area of Chittagong ;

(b) taka one thousand per square metre in the case of a building or apartment the plinth area of which exceeds one hundred square metre but does not exceed two hundred square meter for areas mentioned in clause (a);

(c)  taka one thousand five hundred per square metre in the case of a building or apartment the plinth area of which exceeds two hundred square metre for areas mentioned in clause (a);

(d)  taka four hundred per square metre in the case of a building or apartment the plinth area of which does not exceed one hundred square metre for areas other than the areas mentioned in clause (a);

(e) taka six hundred per square metre in the case of a building or apartment the plinth area of which exceeds one hundred square metre but does not exceed two hundred square metre for areas other than the areas mentioned in clause (a);

(f)  taka one thousand per square metre in the case of a building or apartment the plinth area of which exceeds two hundred square metre for areas other than the areas mentioned in clause (a)

: Provided that the provision of this section will apply to a single flat or apartment or any one floor of a building.]

...................................................................................................................

1 Ins . by F . A.  2009 and subsepuently  omitted  by  F .A . 2010

19BBBBB. Special tax treatment in respect of investment in residential building and apartment.-

1[19BBBBB. Special tax treatment in respect of investment in residential building and apartment.-

(1) Notwithstanding anything contained in this Ordinance, source of any sum invested by any person, in the construction or purchase of any residential 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) taka five thousand per square meter in the case of building or apartment the plinth area of which does not exceed two hundred square meter;

(ii) taka seven thousand per square meter in the case of building or apartment the plinth area of which exceeds two hundred square meter;

(b) for building or apartment situated in the area of Dhanmandi Residential Area, Defence Officers Housing Society (DOHS), Mahakhali, Lalmatia
Housing Society, Uttara Model Town, Bashundhara Residential Area, Dhaka Cantonment, Kawarn Bazar, Bijaynagar, Segunbagicha, Nikunja of Dhaka, and Panchlaish, Khulshi, Agrabad and Nasirabad Area of Chittagong-

 

(i)Take for thousand per square meter in the case of a building or apartment the plinth area or which does not exceed two hundred square meter;”

(ii)Taka five thousand per square meter in the case of a building or apartment the plinth area of which exceeds two hundred square meter;

(c) for building or apartment situated in the area of any City Corporation other than areas mentioned in clauses (a) or (b)-

(i) taka two thousand per square meter in the case of a building or apartment the plinth area of which does not exceed two hundred square meter;

(ii) taka three thousand per square meter in the case of a building or apartment the plinth area of which exceeds two hundred square meter;

(d) for building or apartment situated in the area or a paurasabha of any district headquarters-

(i) 2[taka six hundred]  per square meter in the case of a building or apartment the plinth area of which does not exceed two hundred square meter;

(ii) 3[taka eight hundred] per square meter in the case of a building or apartment the plinth area of which exceeds two hundred square meter;

(e) for building or apartment situated in the area other than the areas mentioned in clauses (a) to (d)-

(i) 4[taka four hundred] per square meter in the case of a building or apartment the plinth area of which does not exceed two hundred square meter;

(ii) 5[taka six hundred]  per square meter in the case of a building or apartment the plinth area of which exceeds two hundred square meter.

 (2) The rate of tax mentioned in sub-section (1) shall be twenty per cent higher in case where the assessee already owns a building or 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 provision of this section shall not apply where the source of such investment, made by the assessee for the purchase or construction of such residential 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.]

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1 Ins. new section 19BBBBB by F. S. 2013

2 Subs. for "taka one thiusend" by F. A. 2015

3 Subs. for "taka one thiusend and five hundred" by F. A. 2015

4 Subs. for "taka seven hundred" by F. A. 2015

5 Subs. for "taka one thiusend" by F. A. 2015

 

19C. Special tax treatment in respect of investment in the purchase of bond under Bangladesh Infrastructure Finance Fund.—

1[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 ten per cent on such sum invested.]

     ...................................................................................

   1Ins. section 19C by F.A. 2010

19D. Special tax treatment in respect of investment in the purchase of Bangladesh Government Treasury Bond.-

1[19D. Special tax treatment in respect of investment in the purchase of Bangladesh Government Treasury Bond.-

Notwithstanding anything contained in any other provision of this Ordinance, no question as to the source of any sum invested by any person, being an individual, in the purchase of Bangladesh Government Treasury Bond shall be raised if such person pays, before the filing of return of income for that income year as per provisions laid down in sub-section (2) of section 75, tax at the rate of ten per cent on such sum invested.]

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1Ins. section 19D by F.A. 2011 and omitted by F.A. 2014

 

19E. Voluntary disclosure of income.-

1[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 any income has escaped assessment in those assessments or the amount of income assessed is less than the actual income, may disclose that income for respective heads of income in the return of income along with the income for the current assessment year.

(2) Return of income mentioned in sub-section (1) shall be treated as valid, if-

(a) the assessee pays before the submission of return-

(i) tax payable at applicable rate on total income including such income under respective heads of income; and

(ii) penalty at the rate of ten percent of tax proportionate to such income under respective heads of income;

(b) the return of income is submitted within the time specified in 2[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-

          3[(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; 4[or]

(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 5[;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 extersion 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.]

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1 Ins new section 19E by F. A. 2012

2 Ins new section 19E by F. A. 2017

3Ins new section 19E by F. A. 2017

4 Omitted by F. A. 2015

5Subs "Semi-colon " and " or " for " "fulll stop" and Ins. new claus (e) by F. A. 2015