Income Tax Ordinance

Chapter XVI

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

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, 1[delay interest, additional amount,] fee  or  otherwise;  and  the  provisions  of this chapter shall accordingly apply to the recovery of any such sum.

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1 Ins. by F.A. 2016

 

135. Notice of demand.-

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.


1[(1A) Where any amount of tax is refundable in  consequence of any order, 2[except an order passed under section 83A and 83AA in pursuance of this Ordinance,] 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.]

3[(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 thirty 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:


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,
4[ 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.

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1Ins by F.A. 2000
2Deleted F.O. 2008
3Ins by F.A 2002

 4Subs. for "the Deputy Commissioner of taxes may, in his discretion," by F.A. 1995

 

136. Simple interest on delayed payment—

 

1[136.]Simple interest on delayed payment—

If the amount specified as payable in a notice of demand under section 135 or an order under section 156 or 159 is not paid within the time specified under section 135,the assessee shall be liable to pay simple interest at fifteen per cent per annum from the date following the date or extended date specified for payment to the date of actual payment.]

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1Deleted F. A. 1995

 

 

137. Penalty for default in payment of tax.-

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.-

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 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.

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.

 

1[(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 an other 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.

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1Subs by F.O. 2008

 

140. Power of withdrawal of certificate and stay of proceeding.-

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.

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.-

[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 (Act V of 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[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, 2[in whose territorial jurisdiction the office of the deputy Commissioner of Taxes is situate, or the assessee resides, or owns propert or carries on business or profession] 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 f orwarded to him under sub-section (1), have the powers which a Civil Court has under the Code of Civil Procedure, 1908 (Act V of 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.]

 

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1Ins by F.A. 1993
2Omitted by F.A. 1999

143. Other modes of recovery.-

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 1[in sub-section(1A) or (2).]

2[(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 3[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,  4[any money or goods] belonging to, or on account of, the assessee, to pay to the Deputy Commissioner of Taxes the sum specified in the notice on or before the date specified therein for such payment; 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.


(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.

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1Subs for "in sub-section (2)" by F.A. 1999
2Ins by F.A. 1999
3Subs for " any money" by F.A 1999
4Subs for " any money" by F.A 1999