THE SIXTH SCHEDULE PART B

THE SIXTH SCHEDULE
PART B
EXEMPTIONS AND ALLOWANCES ¹[FOR ASSESSEES BEING RESIDENT AND NONRESIDENT BANGLADESHI
[See section 44 (2)]

1.  Any sum paid by an assessee, being an individual, to effect an insurance, or a contract for deferred annuity, on the life of the assessee or on the life of a wife or  husband  or  a  minor  child  of  the  assessee,  subject  to  the  limit  of  such payment, in the case of insurance, to ten per cent. of the actual sum assured (excluding bonus or other benefits.)

2.  Any  sum  paid  by  an  assessee,  being  a  Hindu  undivided  family,  to  effect  an insurance  on  the  life  of  any  male  member  of  the family  or  the  wife  of any such member :

Provided that no exemption under this paragraph or paragraph (1) shall be allowed unless the premium and the proceeds of the life insurance policy or the  contract  for  deferred  annuity,  as  the  case  may  be,  are  both  payable  in Bangladesh.

3.  Any sum deducted from salary payable by or on behalf of the Government to any individual, being a sum deducted in accordance with the conditions of his service  for  the  purpose  of  securing  to  him  a  deferred  annuity  or  of  making provisions for his wife or children, provided that the sum so deducted shall not exceed one-fifth of the salary.

4. Any sum paid by the assessee as a contribution to any provident fund to which Provident Fund Act, 1925 (XIX of 1925), applies.

5.  Any  sum  representing  the  assessee's  and  the  employer's  contribution  to  a recognised provident fund in which the assessee is a participant subject to the limits laid down in Part B of the First Schedule.

6.  Any  sum  paid  by  the  assessee  as  ordinary  annual  contribution  to  approved superannuation fund in which the assessee is a participant.

²[(7.)  Any sum, not exceeding three thousand taka, spent by the assessee on the purchase of books of a professional or technical nature or of general utility.]

³[(8.) Any amount invested by an assessee, not being a company, in the acquisition ⁴[otherwise than by purchase or transfer from previous holder] of any stocks or shares of a company or other body corporate which fulfills the following conditions, namely-

(a)       in the case of a company, it shall be a company listed with a Stock Exchange in Bangladesh;

⁵[(b)     in the case of any other body corporate, it shall be established by or under any Act of Parliament;

⁶[(c)     in the case of any stocks or shares acquired by purchase from a previous holder, if such stocks or shares is transferred in the name of the transferee.

(9.) (1)   Any sum invested by the assessee, not being a company, in the purchase, otherwise than from previous shareholders, of such debentures or debenturestocks issued by a company as the Securities and Exchange Commission may approve for the purpose of this paragraph.

(2)       The maximum amount of deduction admissible under this paragraph shall be the lesser of the following two amount, namely :-

(a)       the amount invested by the assessee in the income year (a) as reduced by the amount of sale proceeds, if any, or the original cost to the assessee, whichever is greater, of the debentures or debenture-stocks, purchased by the assessee in the income year and the two immediately preceding income years and disposed of by him by sale, transfer or otherwise in the income year (b), that is to say, the amount arrived at after deducting (b) from (a);

(b)       the aggregate of the amounts invested by the assessee in the income year and the two immediately preceding income years (c), as reduced by the sale proceeds or the original cost to the assessee, whichever is greater, of the debentures or debenture-stocks disposed of by him by sale, transfer or otherwise, in the income year and the two immediately preceding income years, (d), that is to say, the amount arrived at after deducting (d) from (c)]

10. (1) Subject to the maximum laid down in sub-paragraph (2), any sum invested by an assessee, not being a company, in the purchase of the following, namely:-

(a) such savings certificates or instruments as the Board may specify in this behalf ⁷[and as are purchased not later that the thirtieth day of June, 1994].
(b)  unit  certificates   ⁸[and  mutual  fund]  certificates  issued  by ⁹[any  financial institution  or]   the ¹⁰[Investment  Corporation  of  Bangladesh  and  its subsidiaries];
(c)  such  Government  securities  (including  Development  loans  or  Bonds)  as the Board may specify in this behalf ; and
(d)  shares  of  such  investment  companies  as  the  Board  may  specify  in  this behalf

.
Explanation.-For  the  purpose  of  clause  (d)  "investment  companies"  means companies engaged  principally or wholly in buying and selling securities of other companies and includes a company eighty per cent. of whose paid up capital  is  employed  at  any  one  time  as  investment  in  other  companies,  but does not include a bank or an insurance company or  a corporation which is a member of stock exchange.

¹¹[(2)  Where  any  certificate,  security  or  share  (herein  referred  to  as  "the certificate") to  which  clause  (a),  (b), (c)  and  (d) of  sub-paragraph  (1) apply and in respect of which any credit in tax has been  allowed to the assessee, is disposed of by sale, transfer or in any other manner within five years from the date of its purchase or before the maturity thereof, as the case may be, then, notwithstanding anything contained in this Ordinance, the amount of tax payable by  the  assessee  under  the  other  provisions  of  this  Ordinance  in  respect  of  the income year in which such certificate was so disposed of, shall be increased by an amount  equal  to  the  credit  in  tax  allowed  to  the  assessee  in  respect  of  such certificate (hereinafter referred to as the "said amount") and the sum so arrived at or  where  no  tax  is  payable  by  the  assessee  under  the  other  provisions  of  this Ordinance in respect of that income year, the said amount shall be deemed to be the  tax  payable  in  respect  of  that  income  year  and  other  provisions  of  this Ordinance shall, so far as may be, apply accordingly.]

¹²[11. An amount not exceeding taka sixty thousand by an individual in any deposit pension scheme sponsored by a scheduled bank ¹³[or a financial institution].]

¹⁴[11A. Any sum paid as donation by an assessee to a charitable hospital which is established out side the city corporation area ¹⁵[one year] before such payment and is approved by the Board for this purpose.]

11B.  Any sum paid as donation by an assessee to an organization set up for the welfare of retarded people, established at least ¹⁶[one year] before such payment and  is  approved  by  the  Social  Welfare  Department  and  by  the  Board  for  this purpose.]

¹⁷[(12.)  Any sum paid by the assessee in the income year as donation to-

(a) an educational institution, including a polytechnic, which is affiliated to a University or a Board of Education established by law in Bangladesh, or is recognized or run by the Government.

(b) Any hospital aided, run or recognized by the Government or a local authority;

(c) Any flood or famine relief fund sponsored or approved by the Government;

(d) Such institution or funds for religious institution or fund which does not enure for the benefit of the public, as are established in Bangladesh and approved by the Board for the purpose of this paragraph.]

13.  any  sum  paid  by  an  assessee  as  Zakat  to  the  Zakat  Fund  or  as  donation  or contribution  to  a  charitable  fund  established  by  or  under  the  Zakat  Fund
Ordinance,1982 (XI of 1982).

¹⁸[(14.) Any sum paid by an assessee as donation to national level sports organization notified in this behalf by the Board]

15.  Any  sum  which  the  assessee  is  entitled  to  receive  out  of  the  income  of  an association of persons (other than a Hindu undivided family, company or a firm) on which tax has already been paid by the association :

Provided that where there is included in the total income of an assessee any income exempted under this paragraph, the tax payable by the assessee shall be an amount bearing to the total amount of the tax which would have been payable  on  the  total  income  had  no  part  of  it  been  exempted,  at  the  same proportion as the unexempted portion of the total income bears to the total income.

16. Any sum being the share or portion of the share of the assessee in the income of ¹⁹[a firm] if tax of such income has already been paid by the firm:

Provided that where there is included in the total income of an assessee any income exempted under this paragraph, the tax payable by the assessee shall be an amount bearing to the total amount of the tax which would have been payable  on  the  total  income  had  no  part  of  it  been  exempted,  at  the  same proportion as the unexempted portion of the total income bears  to the total income.

17. Any sum paid by an assessee, in order to make provision for his wife, children or other persons dependent on him, to a benevolent fund or any premium paid under a group insurance scheme if such fund or the scheme is approved by the Board for this purpose.

²⁰[(18.) In the case of an assessee, being a salaried employee, who does not receive any conveyance or perquisite in lieu thereof and does not derive any income chargeable under the head “Income from business or profession”-

(a) a sum of three thousand taka, if he does not own and maintain any power driven vehicle for conveyance;

(b) a sum of three thousand eight hundred taka, if he owns and maintain at his expense a power driven vehicle other than a car registered in his own name; and

(c) a sum of six thousand six hundred taka, if he owns and maintains at his own expense a car registered in his own name as a private vehicle.]

19. Any interest classifiable under the head “Interest on securities” receivable by an assessee on any security of the Government, which is issued with the condition that interest thereon shall not liable to tax.
 

20. Any sum representing interest credited on the accumulated balance of an employee in a recognized provident fund, in so far as it does not exceed one-third of the salary of the employee for the year concerned and in so far as it is allowed at a rate not exceeding such rate as the Board may, by notification in the official Gazette, fix in this behalf. ]]

²¹[21.  Any sum paid by an assessee as donation to any socio-economic or cultural development  institution  established  in  Bangladesh  by  the  Aga  Khan Development Network.]

²²[22. Any sum paid by an assessee  as donation to a philanthropic or educational institution which is approved by the Government for this purpose.]

²³[23.  Any  sum  invested  in  the  purchase  of  one  computer  or  one  laptop  by  an individual assessee.]

²⁴[24. Any sum paid by an assessee as donation to a national level institution set up in memory of the liberation war.

25.  Any sum paid by an assessee as donation to a national level institution set up in memory of Father of the Nation.]

²⁵[(26.) Any sum paid by an assessee as donation to Prime Minister’s Higher Education Fund.]

²⁶[27.  Any sum invested by an assessee, being an individual, in the acquisition, of any stocks or shares of a company, mutual fund or debenture listed with any stock exchange.]

28.  Any  sum  invested  by  an  assessee,  being  an  individual,  in  the  purchase  of Bangladesh Government Treasury Bond.]

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¹ Ins. "for assessees being resident" by F.A. 1995 and subs. for "for assessees being resident" by F.O. 2007

²Omitted by F.A. 1992
³Omitted Paragraphs 8 and 9 by F.A. 2011
⁴Omitted by F.A. 2000
⁵ Subs. by F.A. 1994

⁶ Ins. by F. A. 2000

⁷ Omitted by F. A. 1997

⁸ Ins. by F. A. 1985

⁹ Ins. by F. A. 2013
¹⁰ Subs. for "investment Corporation of Bangladesh" by F.A. 2004
¹¹Subs. by F.A. 1998

¹²Subs. by F.A. 2011
¹³Ins by F.A. 2012
¹⁴Ins. by F.A. 2000
¹⁵Subs. for "three years" by F.A. 2002
¹⁶Subs. for "three years" by F.A. 2002
¹⁷Omitted by F.A. 1992
¹⁸Omitted by F.A. 1992

¹⁹Ins. by F.A. 1995
²⁰Omitted by F.A. 1992
²¹Ins. by F.A. 1993
²²Ins. by F.A. 2005
²³Ins. by F.A. 2009

²⁴Ins. paragraph 24, 25, and 26 by F.A. 2011
²⁵Omitted by F.A. 2012
²⁶Subs. by এস.আর. ও নং ৬০-আইন/আয়কর/২০১২, তারিখঃ ২৮/০২/২০১২

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