Income Tax Ordinance

Chapter XV

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

CHAPTER XV
IMPOSITION OF PENALTY

 


1[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)  one  hundred  Taka  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, shall impose upon him a penalty of fifty percent of taxes payable on house property income or five thousand taka, whichever is higher.]

 

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1Subs. by F.A. 2014

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

1[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(2),91(3) 2[, 93(1) and or withholding tax required under section  75A],  the  Deputy  Commissioner  of  Taxes  may  impose  upon  such person  a penalty  amounting  to  ten  per  cent of tax  imposed  on  last  assessed income  subject to  a  minimum  of 3[taka  one  thousand,]  and  in  the  case  of a continuing  default  a  further  penalty  of 4[taka  fifty]  for  every  day  during which the default continues.5[

Provided that such penalty shall not exceed-

  1. in case of an assessee, being an individual, whose income was not assessed previously five thousand taka;
  2. (b in case of an assessee, being an individual, whose income was assessed previously, fifty per cent (50%) of the tax payable on the last assessed income or taka one thousand, whichever is higher.]


(2) Where any person has, without reasonable cause, failed to file or furnish or, as the case may be, obtain and display within the time laid down therefor,-
(a) any certificate, statement, accounts or information required by or under sections 58, 108, 109, 6[or] 110 ; or 7[0r 113]

(b)  the  tax-payer's  identification  number  (TIN)  certificate  under section 184C; the Deputy Commissioner of Taxes shall impose upon such person a penalty of taka five hundred and in the case of a continuing default a further  penalty  of  taka  two  hundred  and  fifty  for  every  month  or fraction thereof during which the default continues 8[:

Provided that where any person has, without any reasonable cause, failed  to  furnish  information  as  required  under  section  113,  the 9[Director  General],  Central  Intelligence  Cell  or  the  Deputy Commissioner  of  Taxes  may  impose  a  penalty  of  taka  twenty  five thousand and in case of a continuing default a further penalty of taka
five hundred for each day.]

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1Subs. by F.A 1999 and re-subs by F. A. 2004
2Subs. F.A. 2011
3Subs. for "taka two thousand five hundred" by F.O. 2007
4Subs. for "taka two hundred and fifty" by F.O 2007

5 Subs “colon”for “full stop”and ins new proviso by F. A. 2015
6Subs for "," by F.O 2007
7Omitted by F.A. 2007

8Subs. "colon" for "full-stop" and ins new proviso by F.O. 2007
9Omitted "Deputy" by F.A. 2013

 

124A. Penalty for using fake Tax-payer’s Identification Number.-

1[124A. Penalty for using fake Tax-payer's Identification Number.- 

Where a person  has,  without  reasonable  cause,  used  Tax-payer'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  taka  twenty thousand on that person.]

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1Ins. new section 124A by F.A. 2010

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

1[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 two lakh taka in the case of non-compliance with the provision of sub-section (5);

(b) not exceeding fifty thousand taka in the case of noncompliance with the provision of sub-section (6).]

 

2[124AA. Penalty for failure to verify Taxpayer’s Identification Number.-

Where a person, responsible for verification of the authenticity of twelve-digit Taxpayer’s Identification Number (TIN) in accordance with the provision of sub-section (2) of section 184A of this Ordinance, has, without reasonable cause, failed to comply with such requirement under that provision, the Deputy Commissioner of Taxes or any other income tax authority authorised by the Board for this purpose, as the case may be, may impose upon such person a penalty not exceeding taka fifty thousand.]

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Ins  by F. A. 2017

1 Ins new section 124AA by F. A. 2015

125. Failure to pay advance tax, etc.-

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 requi red 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.-

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 1[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.

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1Subs. for "or 83" by F.A. 1991

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

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, 1[or the tax paid  by  him  under  that  section  is  less  than  eighty  percent  of  the  amount payable thereunder,] he may impose upon such person a penalty of a sum not exceeding twenty-five percent of the whole of the tax or as the case may be, of such portion of the tax as has not been paid.

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1 Omitted by F. A. 2015

 

128. Penalty for concealment of income.

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, 1[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, 2[he  or  it  shall  impose  upon  such  person  a  penalty  of 3[fifteen  per cent]  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:


4[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 5[fifteen per cent] for each preceding assessment year.]

6[[Provided that where concealment referred to in  this sub-section or sub-section is in a case where the assessment of tax was made by the assessee himself in accordance with any rule made in this behalf and accepted by the Deputy commissioner of tax as correct, the words "two and a half times" occurring in this sub section shall be read as "five times.]
(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 who le or in part, or
(b)  showing  any  expenditure  not  actually  incurred  or  claiming  any deduction therefor.

 

7[(2A) Notwithstanding anything contained in sub-sections (1) and (2), in a case where a certificate is issued by a chartered accountant as to the correctness of the total income of an assessee under the first proviso to section 82 it is subsequently discovered by the Deputy Commissioner of Taxes, the Appellate Joint Commissioner, the Appellate Additional Commissioner, the Commissioner (Appeal) or the Appellate Tribunal that the chartered accountant willfully or knowingly withheld any information relating to the particulars of such income,he or it may  impose upon such chartered accountant a penalty of a sum not exceeding two and a half times the amount of tax which would have been avoided had the total income as certified by such chartered accountant been accepted as correct.]

8[(2A)   Notwithstanding anything contained in sub-sections (I) and (2), in a case where a certificate is issued by a chartered accountant as to the correctness of the total Income of an assessee under the 9[first or the second proviso] to section 82 it is subsequently discovered by the Deputy Commissioner of Taxes, the Appellate Joint Commissioner, the Appellate Additional Commissioner, the Commissioner (Appeal) or the Appellate Tribunal that the chartered accountant willfully or knowingly withheld any information relating to the particulars of such income, he or it may impose upon such chartered accountant penalty of a sum not exceeding two and a half times the amount of tax which would been avoided had the total income as certified by such chartered accountant been accepted as correct.]

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1Ins by F.A. 1991
2Subs. for "he or it may impose upon such person a penalty of a sum not exceeding two and a half
times the amount" by F.O. 2008
3Subs. for ten percent by F.A. 2014

4Ins by F.A. 1999 and subs. by F.O. 2008
5Subs. for " ten per cent" by F.A. 2014
6Proviso omitted by F.A 1995
7Ins by F.A. 1998, omitted by F.A. 1999
8Ins. by F.A. 1991, omitted by F.A. 1993

9 Subs. for "second proviso" by F. A. 1992

 

129. Incorrect distribution of income by registered firm—

1129.]Incorrect distribution of income by registered firm—

Where, in the course of any proceeding under this Ordinance, the Deputy Commissioner of Taxes, the Appellate Joint Commissioner 3[, the Commissioner (Appeals)] or the Appellate Tribunal is satisfied that the profits of a registered firm have been distributed otherwise than in accordance with shares of the partners as shown in the instrument of partnership registered underthis ordinance governing such distribution and that any partner has thereby returned his income below its real amount,he or it may impose on such partner a penalty of a sum not exceeding one and a half times the amount of tax which has been avoided, or would have been avoided, if the income returned by such partner had been accepted as his correct income, and no refund or other adjustment shall be claimable by any other partner on account of imposition of such penalty]

 

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1Omitted by F.A. 1998   

 

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

1[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-

2[(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 fifty thousand taka but not more than two lakh taka.]

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1 Ins. new section 129A by F. A. 2014

2 Added by F.A 2016

129B. Penalty for furnishing fake audit report

1[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 one lakh taka for that income year.]Added F. A. 2015

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1 Ins. new section 129B by F.A. 2015

130. Bar to imposition of penalty without hearing.

 

130.  Bar  to  imposition  of  penalty  without  hearing.-

No  order  imposing  a penalty under this Chapter 1[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.

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1 Ins. by F. A. 2015

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

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 1[.

[Provided that under sub section (2A) of section 128 shall be imposed without previous approval of the Board.]

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1Subs. full-stop for semi- colon and proviso by F.A. 1998 subsequently omitted by F.A 1999

 

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

 

1[131A.]Previous approval of Inspecting Joint Commissioner for imposing penalty.-

Notwithstanding anything contained in sections 131,no penalty under sub-section (3) of section 128 shall be imposed without previous approval of the Board.]

 

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1Ins. by F.A. 1991 and omitted by F.A. 1996

 

132. Orders of Appellate Joint Commissioner, etc., to be sent to Deputy Commissioner of Taxes:-

132.  Orders  of  Appellate  Joint  Commissioner,  etc.,  to  be  sent  to  Deputy Commissioner  of  Taxes.- 

The  Appellate  Joint  Commissioner, 1[or  the Commissioners  (Appeals)]  or  the  Appellate  Tribunal 2[or any other income tax authority making an order imposing any penalty under this Chapter or Chapter XIA] making  an  order imposing any penalty under this Chapter 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.

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1Ins by F.A. 1990

2 Subs. "making an order imposing any penalty under this chapter" by F. A. 2015

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

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.

1[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 eighty 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.] 

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1Ins by F.A 2017