30. Deduction not admissible in certain circumstances.-

30. Deduction not admissible in certain circumstances.-

Notwithstanding anything contained in section 29, no deduction on account of allowance from income from business or profession shall be admissible in respect of the following, namely:-

(a) any payment which is an income of the payee classifiable under the head "Salaries" if tax thereon has not been paid in accordance with provisions of Chapter VII;

  ¹[(aa) any payment made by an assessee to any person if tax thereon has not been deducted and credited in accordance with the provisions of Chapter VII and মূল্য সংযোজন কর আইন, (value-added tax) thereon has not been collected or deducted and credited in accordance with the provisions of মূল্য সংযোজন কর আইন, 1991 (1991 সনের 22 নং আইন);]

²[(aaa) any payment by way of salary to an employee if the employee is required to obtain a twelve-digit Taxpayer’s Identification Number under the provisions of this Ordinance but fails to obtain the same at the time of making such payment;]

³(aaaa)[ any payment made after the Tax Day by way of salary to an employee if the employee is required to file the return of income but fails to file the same on or before the Tax Day or obtain time extension, as the case may be];

(b) any payment by way of interest, salary, commission or remuneration made by a firm or an association of persons to any partner of the firm or any member of the association, as the case may be;

(c)    any payment by way of brokerage or commission made to a person who is   not a resident in Bangladesh unless tax has been deducted there from under section 56;

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

¹Ins. by F.A. 1993

² Ins. by F.A. 2016
3 Ins. by F.A. 2017

(d)    any payment to a provident fund or other fund established for the benefit of the employees unless the employer has made effective arrangements to secure that tax shall be deducted at source from any payments made from the fund which are taxable being income falling under the head "Salaries";

 Provided that the provision of this clause shall not be applicable to an employer where perquisites were paid to an employee in pursuance of any Government decision published in the official Gazette to implement the recommendation of a Wage Board constituted by the Government;]

(f) any expenditure in respect of the following as is in excess of the amount or rate prescribed in this behalf and as is not, in the cases of sales and services liable to excise duty, supported by excise stamp or seal, namely :-

(i) entertainment

(ii) foreign travels of employees and their dependents for holidaying and recreation ;

(iii) publicity and advertisement; and

(iv) distribution of free samples

³[(g) any expenditure exceeding ten percent of the ⁴[net profit disclosed in the statement of accounts]  under the head of Head Office expenses by a company not incorporated in Bangladesh under কোম্পানী আইন, 1994 (1994 সনের 18 নং আইন)

(h)  any  payment  by  way  of  royalty  ,  technical  services  fee,  technical  know how  fee  or  technical  assistance  fee  exceeding ⁵[Ten percent]  of  the ⁶[net profit from business or profession, excluding any profit or income of subsidiary or associate or joint venture,] disclosed in the statement of accounts Eight Percent of  the ⁷[net profit from business or profession, excluding any profit or income of subsidiary or associate or joint venture,] disclosed in the statement of accounts

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

¹ Subs. by F.A. 2005
² Ins. by F.A. 2016
³ Ins. by F.A. 2003
⁴ Subs. for "profit" by F.A. 2014
⁵ Subs. for “two and one-half per cent” by F.O. 2007 & “five percent” by F.A. 2009
⁶ Subs. for "net profit" by F.A. 2020
⁷ Subs. for "net profit" by F.A. 2020

(i) any payment by way of salary or remuneration made otherwise than by ¹[crossed cheque or] bank transfer by a person to any employee having gross monthly salary of taka ²[twenty] thousand or more;

³[(ii) any payment exceeding Taka five lakhs paid by a person on account of purchase of raw metarials otherwise than by bank transfer;]

(j) any expenditure by way of incentive bonus exceeding ten percent of the ⁴[net profit disclosed in the statement of accounts];

(k) any expenditure by way of overseas traveling exceeding ⁵[Zero point five zero percent (0.50%)] of the disclosed ⁶[business] turnover] ⁷[;

          ⁸[Provided that nothing of this clause shall apply to the overseas traveling expenses by an assessee engaged in providing any serviceto the Government where overseas  traveling is a key requirement of that service;]

(l)  any  payment  by  way  of  commission  paid  or  discount  made  to  its shareholder director by a company;

⁹[(m)  any  payment  by  a  person  exceeding  taka  fifty  thousand  or  more, otherwise than by a bank transfer excluding-

            (i) salary or remuneration made to any employee, without prejudice to an obligation referred to in clause (i) ;  

(ii) any payment for government obligation 

(iii) any payment for the purchase of raw materials] ¹⁰[;

(n)  any  payment  by  way  of  any  rent  of  any  property,  whether  used  for commercial  or  residential  purposes,  otherwise than  by  ¹¹[a  crossed  cheque  or] bank transfer.¹²[; 

(o) any payment made to a person who is required to obtain a twelve-digit Taxpayer’s Identification Number under clauses (xxviii), (xxix) and (xxx) of sub-section (3) of section 184A but fails to hold the same at the time of payment. 

¹³[“(p) any promotional expense exceeding zero point five zero percent (0.50%) of the disclosed business turnover.

¹⁴[Explanation: For the purpose of this clause, promotional expense means any expense incurred by way of giving any benefit in kind or cash or in any other form to any person for the promotion of business or profession.”।]

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¹ omitted by F.A. 2021

2 Subs for "fifteen" by F.A 2021

3 Ins by F.A 2021

⁴ Subs. for disclosed net profit"  by F. A. 2014

5 Subs for "one point two five percent (1.25%)" by F. A. 2020

6 Ins by F. A, 2021
⁷ Subs. "semi-colon" for "full-stop" and ins. new clause (l) and (m) by F.A. 2012

8 Ins by F.A. 2017

9 Subs by F. A. 2021
¹⁰ Subs. "semi-colon" for "full-stop" and ins. new clause (n) and (m) by F.A. 2014

¹¹ Omitted by F. A 2021

¹² Subs. "semi-colon" for "full-stop" and ins. new clause (l) and (m) by F.A. 2014    

¹³ Ins new clause (p) by F.A. 2020

¹⁴ Subs by F. A. 2021                              

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