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19. Un-explained investments, etc., deemed to be income.-
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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 2[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
2 omitted by F.A. 2019
(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 Development 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 Subs. "Colon" for "Semi-colon" and ins. new proviso by 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. for "Bangladesh Shilpa Bank or Bangladesh shilpa Rin Sangsta" by F.A. 2014
4Subs. for "two years" by F.A. 1999
5Subs. for "two years" by F.A. 1999
6Subs. For 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[2(21) Where any sum, is claimed or shown to have been received as loan 3[,advanced 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 such Assessee for the income year in which such loan 4[,advanced or deposite of any kind called by whatever name,] or gift was received, and shall be classifiable under the head "Income from other source":
Provide 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 5[or converted into consideration for any goods or services] in a subsewuent income year,the amount so repaid 6[or converted into consideration for any goods or services] shall be deducted in computing the income of the assessee for the 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 campany 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 dose 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 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 accounts are maintained in a bank or a financial institution legally authorised to operate accounts]
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".;]
1 Ins. sub-sections (21) and (22)by F.A. 1993
2 Subs. by F.A. 2018
3 Ins by F.A. 2019.
4 Ins by F.A. 2019.
5 Ins by F.A. 2019.
6 Ins by F.A. 2019.
7 Ins. by F.A. 2002 and subsequently omitted by F.A. 2018
8 Ins. by F.A. 2011 and subsequently omitted by F.A. 2018.
9 Subs. for "transferred by A person partly or fully within the period of limitation" by F.A. 2012
[(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.]
1[(22A) where an assessee, being the owner of a house property, received, from any person to whome such house property or any part thereof is let our, 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 is received through bank transfer , the amount shall be adjusted within five years after the years of receipt or the period of agreement whichever is lower, if after the expairy of the aforesaid period such amount or any part thereof remains unadjusted, the amount 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 aubsection, " 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]
1 Ins. new Sub-Section 22A by F.A. 2019
1[(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".]
2[(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".;]
3[(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."]]
4[5(26) Where an assessee, being a company, receives any amount as loan 6[ from any other company otherwise than by a crossed cheque or by bank transfer, the amount so received shall be
1Ins. Sub-sec. (23) by F.A. 1993
2 Subs. by F.A. 2012
3 Omitted by F.O. 2007
4 Ins. new sub-sections (26) and (27) by F.A. 2011
5 Omitted by F.A. 2018
6 Subs. for "from any other company " by F.A. 2014
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" 1[:
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 2[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 3[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".]
4(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"6[:
“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
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