44. Exemption.-

CHAPTER VI
EXEMPTIONS AND ALLOWANCES

44. Exemption.-

(1) Notwithstanding anything contained in this Ordinance, any income or class of income or the income of any person or class of persons specified in Part A of the Sixth Schedule shall be exempt from the tax payable under this Ordinance, subject to the limits, conditions and qualifications laid down therein and shall be excluded from the computation of total income under this Ordinance.

1[(2) Subject to the provisions of this Ordinance and the limits, conditions and qualifications laid down in Part B of the Sixth Schedule,-

(a)   tax shall not be payable by an assessee in respect of any income or any sum specified in paragraphs 15 and 16 of the said Part B; and

2 [(b) an assessee, being a resident or a non-resident Bangladeshi, shall be entitled to a credit from the amount of tax payable on his total income of the following amount:

Total income Amount of credit
(i) if the total income does not exceed taka ten lakh 15% of the eligible amount;
(ii) if the total income exceeds taka ten lakh but does not exceed taka thirty lakh (i) 15% of the first two lakh fifty thousand of the eligible amount; and
(ii) 12% on the rest of the eligible amount;
(iii) if the total income exceeds taka thirty lakh (i) 15% of the first two lakh of the eligible amount; and (ii) 12% of the next five lakh fifty thousand of the eligible amount; and
(iii) 10% on the rest of the eligible amount;

 

(c)[ the “eligible amount” mentioned in clause (b) shall be the lesser of-
(i) the sums specified in all paragraphs excluding paragraphs 15 and 16 of Part B of the Sixth Schedule; or
(ii) 25% of the total income excluding any income for which a tax exemption or a reduced rate is applicable under sub-section(4) of section 44 or any income from any source or sources mentioned in clause(a) of sub-section(2) of section 82C; or
(iii) one crore and fifty lakh taka.]

(4) The Government may, by notification in the oficial Gazette,-

(a) make such amendments by way of addition, omission, alteration or qualification in the Sixth Schedule as it may deem fit; and

(b) make any exemption, reduction in rate or other modifications in respect  of  tax  in  favour  of  any  class  of  income  or  in  regard  to  the whole or any part of the income of any class of persons.

3 [(5) Notwithstanding anything contained in clause (b) of sub-section (4) or any other section in Chapter VI-

(a) the income of a person for the relevant income year shall not be-
(i) exempted from tax; or
(ii) be subject to reduced rate of tax; in an assessment year if the person fails to submit the return of income, as required under section 75;

(b) any disallowance of expenditure under section 30, in calculating the income of a source or of a person that is exempted from tax or is subject to a reduced rate of tax, shall be treated as income for that source or of that person, as the case may be, and tax shall be payable on such income at the regular rate.

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1 Subs. by F.A. 1992
2 Subs F. A. 2016

3 Added F. A. 2016

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