Friday, May 2, 2025

Income Tax Act, 2023

(Act No. 12 of 2023)

[ June 22, 2023 ]

1 [ 2 [the Income-tax Ordinance, 1984to make a new law in accordance with the times and to make it more suitable for the times

Whereas, since Article 19 of the Fourth Schedule to the Constitution of the People's Republic of Bangladesh relating to the approval and support of ordinances issued by military decrees between 24 March 1982 and 11 November 1986 has been abolished by the Constitution (Fifteenth Amendment) Act, 2011 (Act No. 14 of 2011) and the Constitution (Seventh Amendment) Act, 1986 (Act No. 1 of 1986) which gave validity to martial law by declaring it unconstitutional in the judgment given by the Appellate Division of the Supreme Court in Civil Appeal No. 48/2011, has been declared null and void, the said ordinances have ceased to have effect; and

Whereas some of the said Ordinances are kept in force and effect by Act No. 7 of 2013; and

Whereas, after reviewing the necessity and relevance of the said ordinances, the government has decided to enact new laws in Bengali language with necessary amendments and revisions, taking into account the opinions of all stakeholders and the concerned ministries or departments, and considering the ordinances considered necessary; and

Whereas it is necessary to enact new laws that are up-to-date and timely, to expand the scope of income tax, advance income tax, tax at source, minimum tax, surcharge and any other type of taxation, to establish financial discipline and other related matters; and

Whereas, in the light of the above-mentioned decision of the Government, it is expedient and necessary to repeal the Income-tax Ordinance, 1984 (Ordinance No. XXXVI of 1984) and enact a new law, making it contemporary and timely;

Therefore, it is hereby enacted as follows:-

PART 1

Early

Short title and introduction

1. (1) This Act may be called the Income Tax Act, 2023 .

(2) It shall come into force immediately.

Definition 2. Unless the subject or context otherwise requires, in this Act,-

(1) “depreciated value” means depreciated value as defined in Part 1 of the Third Schedule;

(2) “Additional Tax Commissioner (Appeals)” means the Additional Tax Commissioner (Appeals) and Joint Tax Commissioner (Appeals) referred to in section 4;

(3) “Additional Assistant Tax Commissioner” means the Additional Assistant Tax Commissioner referred to in section 4;

(4) “Non-resident” means any person who is not a resident;

(5) “Approved Benevolent Fund” means the Benevolent Fund approved by the [Commissioner of Taxation] in accordance with the provisions of Part 2 of the Second Schedule ;

(6) “approved superannuation fund or pension fund” means any superannuation fund or pension fund approved by the [Commissioner of Taxation] in accordance with the provisions of Part 1 of the Second Schedule;

(7) “Partner” means a partner as defined in the Partnership Act, 1932 (Act No. IX of 1932) and includes any minor treated as a partner by reason of receiving dividends;

(8) “Partnership” means partnership within the meaning of the Partnership Act, 1932 (Act No. IX of 1932);

(9) “Legal representative” means any legal representative as defined in clause (11) of section 2 of the Code of Civil Procedure, 1908 (Act No. V of 1908);

(10) “Relative” means the husband or wife, son, daughter, brother, sister or ascendant or descendant of any person;

5 [***]

(12) “Appellate Tribunal” means the Tax Appellate Tribunal established under section 13;

(13) The term "income" shall include-

(a) income, receipts, profits or gains arising from any source chargeable to tax under any provision of this Act;

(b) any amount of money deductible or recoverable at source under any provision of this Act;

(d) profits or receipts derived from any insurance business carried on by a mutual insurance association prescribed in accordance with paragraph 8 of the Fourth Schedule;

(e) any money deemed or treated as income under any provision of this Act, or any income arising, created or received in Bangladesh or any money deemed to accrue, arise, create or receive;

(f) any amount, payment or transaction on which tax is levied;

6 [(g) acquisition of any asset which—

A) Not natural;

a) Not the creation of any person;

e) Not a foreclosure against a lien or mortgage;

iv) Not acquired through inheritance, will, bequest or trust;

(v) not acquired by exchange or purchase;]

(14) “Income tax” means any tax or surcharge of any kind imposed or payable under this Act;

(15) “Financial year” means the financial year immediately preceding the tax year and shall include—

(a) the period from the date of first commencement of any business to the 30th day of June of the following month;

(b) In the case of a new income, the period from the date on which it commenced to the 30th day of June of the following month;

(c) the period commencing from the first day of July to the date of the close of business or, as the case may be, the date of the dissolution of an unincorporated association or the date of the winding up of a company;

(d) the period commencing from the first day of July until the date of retirement or death of a partner in an unincorporated partnership;

(e) from the date immediately following the date of retirement or death of a partner of an unincorporated company to the date of retirement or death of any other partner of that unincorporated company or, as the case may be, the 30th day of June immediately following the date of such retirement or death;

(f) In the case of a bank, insurance or financial institution or any of its affiliates, for the next 12 (twelve) months commencing from the first day of January of the relevant year:

Provided that in the case of a subsidiary company of a parent company incorporated outside Bangladesh, including a subsidiary company of a subsidiary company, or any of its holding companies or any of its branches, representative or liaison offices, if such company expresses an intention to follow a different income year for the purpose of reconciling its accounts with those of the parent company, then, with the approval of the Excise Commissioner, any separate 12 (twelve) months may be treated as an income year;

(16) “tax payable on income” means the amount chargeable or payable on income under this Act;

(17) “Cessation Commissioner” means any person appointed as the Excise Commissioner referred to in section 4 and shall also include the Transfer Pricing Officer, Assistant Tax Commissioner, Additional Assistant Tax Commissioner and Tax Recovery Officer;

(18) “merger” means merger as defined in the Eighth Schedule;

(19) “Commissioner” means the Tax Commissioner or the Tax Commissioner (Large Taxpayer Unit) referred to in section 4;

(20) “Commissioner (Appeals)” means the Commissioner of Taxes (Appeals) referred to in section 4;

(21) “Tax” means tax payable on income and includes any additional tax, additional profit tax, penalty tax, super tax, fine, interest, fee or other amount chargeable or payable under this Act;

(22) “Taxpayer” means any person earning taxable income and includes the following persons, namely:

(a) any person liable to pay any tax or other payment under this Act;

(b) Every such person-

(i) whose income, or with whose income the income of any other person is determinable; or

(ii) proceedings under this Act have been taken to determine the amount due to him or another person;

(d) any person required to file any return, document or statement or to provide information;

(e) Any person desirous of assessing tax and filing a return;

(f) any person deemed to be a taxpayer or a defaulting taxpayer under any provision of this Act;

(g) against whom any proceedings have been initiated under this Act;

(23) “Tax Day” means-

(a) in the case of a taxpayer other than a company, the 30th (thirtieth) day of November following the end of the income year;

(b) in the case of a company, the 15th (fifteenth) day of the seventh month following the end of the financial year or, where the said fifteenth day falls on a date before the 15th (fifteenth) day of September, the fifteenth day of September following the end of the financial year;

(c) In the case of an individual taxpayer who has never filed a return before, the 30th day of June following the end of the income year;

(d) In the case of a natural person taxpayer residing abroad, the 90th (ninetieth) day from the date of his return to Bangladesh, if such person-

(i) is on leave for higher education or on deputation or lien for employment and is residing outside Bangladesh; or

(ii) Stays outside Bangladesh with a valid visa and permit for the purpose of earning money;

(e) If the day mentioned in sub-clauses (a) and (b) is a public holiday, then the working day immediately following that day;

(24) “Tax year” means the period of 12 (twelve) months commencing on the first day of July in each year and shall include any period deemed to be a tax year under the provisions of this Act;

7 [(25) “Employee” means any employee and includes the following persons, namely:-

(i) in the case of a company, any director or managing director thereof and any person, irrespective of title, exercising any responsibility connected with the management thereof;

(ii) in the case of any business other than a company, any person, regardless of title, who performs any duty connected with the management of the business;

(e) Any person who receives a salary from the employer, is under the control of the employer and is directed by the employer and acts in accordance with the decisions taken by the employer;

(iv) All such persons who receive income from employment as per section 32: Provided that no tea garden workers and daily wage earners shall be included therein;]

(26) “Tax exemption” means the partial or complete exemption of a person from any tax liability arising under this Act by granting the following benefits, namely:-

(a) concession, leave, exemption;

(b) payment of tax at a reduced rate; or

8 [(26A) “Tax Commissioner” means the Tax Commissioner, Director General (Central Intelligence Cell) and Director General (Inspection) referred to in section 4 and appointed or posted under section 5;

(26b) “Tax assessment” means any type of tax assessment under this Act and shall also include re-tax assessment, additional tax assessment, and additional tax assessment;]

(27) “Tax-free limit” means any limit of gross income which is subject to zero tax rate;

(28) “Taxed dividends” means dividend income on which income tax has already been paid under this Act;

(29) “Cost and Management Accountant” means a Cost and Management Accountant as defined in the Cost and Management Accountants Act, 2018 (Act No. 70 of 2018);

(30) “Technical service fee” means remuneration received for the provision of management, technical or consultancy services, including one-time remuneration, and shall also include the services of any technical or other professional, but shall not include the following matters, namely:-

(a) remuneration received from any construction work, installation work, mining work or project relating to such matters undertaken by the recipient of remuneration; or

(b) any remuneration classifiable as “income from employment” income of the recipient of the remuneration;

(31) "Company" means a company as defined in the Companies Act, 1994 (Act No. 18 of 1994), and includes-

(a) Liaison office, representative office or branch office of a foreign organization;

(b) any permanent establishment of any foreign entity or person;

(d) any bank, insurance or financial institution;

(e) any industrial and commercial organization, foundation, association, cooperative society and any educational institution;

(f) Any institution registered with the NGO Affairs Bureau or the Microcredit Regulatory Authority;

(g) any firm, partnership, joint venture or association of persons, by whatever name called, if any of such persons is a company or foreign entity within the meaning of the Companies Act, 1994 (Act No. 18 of 1994);

(h) statutory government authorities, local authorities, autonomous bodies;

(i) any entity established or constituted by or under any law for the time being in force;

(j) All entities other than natural persons, firms, associations of persons, trusts, Hindu undivided families and funds;

(k) any foreign association or body not incorporated by or under any law which may, by general or special order, be declared by the Board to be a company for the purposes of this Act;

(32) “Delegated taxpayer” means-

(a) any person who has failed to pay any tax under this Act; or

(b) any person who has been deemed to be a defaulting taxpayer under this Act;

(33) “Research and development” means systematic, investigative and experimental studies which-

(a) Must involve novel or technical risks;

(b) Must be from the world of science or technology;

(d) The study must be conducted with the aim of using the results of the study for the purpose of production or development of materials, machines, products, agricultural products or processes,

However, studies conducted for the following purposes shall not be included in the meaning of research or development, namely:-

(i) quality control or routine testing of materials, equipment or products;

(ii) Research conducted in the arts and humanities and social sciences;

(e) creation and development of financial instruments or financial products;

(iv) Market research or sales promotion, routine data collection, efficiency surveys or management studies;

(v) Routine replacement or modification of materials, equipment, products, processes or production methods;

(v) cosmetic changes or changes in style of materials, equipment, products, processes or production methods; or

(vi) creation or improvement of a trademark or reputation;

(34) “Public servant” means any public servant as defined in section 21 of the Penal Code, 1860 (Act No. XLV of 1860);

(35) The term “employment” shall include—

(a) any position to which the person appointed is entitled to receive remuneration as prescribed or, from time to time, as may be prescribed;

(b) any directorship or any position related to the management of the company;

(36) “Chartered Accountant” means a Chartered Accountant as defined in the Bangladesh Chartered Accountants Order, 1973 (President's Order No. 2 of 1973);

9 [(36A) “Chartered Secretary” meansthe Chartered Secretaries Act, 2010(Act No. 25 of 2010);]

(37) “Trading Account” or “Profit and Loss Account” shall also include income statement and other similar accounting statements prepared under International Financial Reporting Standards (IFRS);

(38) “Trust” means a trust formed under the Trust Act, 1882 (Act No. II of 1882) and includes a trust as defined in the Specific Relief Act, 1877 (Act No. II of 1877):

Provided that where a trust is formed as a prerequisite to the formation of a company or fund or for the purpose of managing a company or fund, the said company or, as the case may be, the fund shall be a taxable entity and the trust shall not be treated as a taxable entity;

(39) “Tax Recovery Officer” means any person appointed as a Tax Recovery Officer as referred to in section 4;

(40) “Demerger” means Demerger as defined in the Eighth Schedule;

(41) “Scheduled Bank” means a Scheduled Bank as defined in article 2(j) of the Bangladesh Bank Order, 1972 (President's Order No. 127 of 1972);

(42) “Fund” means any fund created or recognized under any law or rule for the time being in force;

(43) “Charitable purpose” means-

(a) Relief for the poor, educational relief, medical relief; and

(b) the advancement or promotion of any purpose of general public utility,

However, the advancement or promotion of any purpose of general public utility shall not be considered a charitable purpose:

(i) unless it is approved by the 10 [Commissioner of Taxation]; and

(ii) If it is involved in any of the following activities:

(1) any activity of a business, trade or commerce of whatever kind or nature; or

(2) If any service is provided in exchange for consideration and the total value of such consideration exceeds 11 [1 (one) crore] taka in any income year;

(44) “Borrowed money” shall also include money received by way of deposit in the case of a banking company;

(45) “Resident” means in any income year—

(a) Any person who has resided in Bangladesh for the following period:

(i) continuously or cumulatively for at least 183 (one hundred and eighty-three) days or more in that year; or

(ii) a total of 90 (ninety) days or more consecutively or cumulatively in that year and a total of 365 (three hundred and sixty-five) days or more consecutively or cumulatively in the immediately preceding 4 (four) years;

(b) any Hindu undivided family, firm or association of individuals whose control and management activities are carried on entirely within Bangladesh during that year;

(c) any Bangladeshi company or any other company the control and management of which is carried out entirely from within Bangladesh during that year; and

(d) any trust, fund, entity or artificial person created by law which has been created under any law in force in Bangladesh or whose control and management activities have been carried out entirely within Bangladesh in that year;

(46) “prescribed” means prescribed by rules;

(47) “Employer” shall include a former employer;

(48) “Fair market value” means the value determined by the Board;

(49) “Goods” means all kinds of tangible movable property other than securities and money;

(50) “Supply of goods” means-

(a) the sale, exchange or other transfer of rights to the goods; or

(b) Lease, rental, installment or other way of granting the right to use goods and sale of goods under finance lease shall be included;

(51) “Inspector Additional Commissioner of Taxation” means the Inspector Additional Commissioner of Taxation and the Inspector Joint Commissioner of Taxation referred to in section 4;

(52) “Inspector” means the tax inspector referred to in section 4;

(53) “Director” or “Manager” means a director or manager as defined in the Companies Act, 1994 (Act No. 18 of 1994);

(54) “Principal Officer” in the case of any company, organization or association of individuals shall include the following persons, namely:-

(a) the managing director, chief executive officer, chief financial officer, manager, secretary, treasurer, agent or accountant, by whatever name called, or any officer responsible for the management of the affairs or the accounting of such authority, company, organization or association; and

(b) any person connected with the management or administration of any company, organization or association who has been notified by the Excise Commissioner as a principal officer of that organization;

(55) “Perquisite” means a perquisite as defined in section 32;

(56) “Person with Disabilities” means a person registered as a person with disabilities under section 31 of the Rights and Protection of Persons with Disabilities Act, 2013 (Act No. 39 of 2013);

(57) “Speculation” means any business in which a contract for the purchase or sale of goods is concluded in such a way that the goods may be disposed of in some other way without being finally delivered or delivered at a specified time, but it does not include any business in which—

(a) A producer enters into an agreement to properly distribute or supply any raw material or product in order to obtain a guaranteed price in order to be exempt from losses due to future price fluctuations during the production of the same;

(b) A contract is entered into with a dealer or investor regarding stocks and shares with a view to being exempt from the risk of loss of stocks and shares held by the person due to fluctuations in the price; and

(c) any member of a forward market or stock exchange enters into any agreement to remedy the risk of loss in his wholesale and brokerage business which may arise in the normal course of business of that member;

Explanation. - For the purpose of this clause, -

(i) The term "goods" shall also include shares or stocks;

(ii) Investment in any securities and buying and selling of securities on any stock exchange shall not be considered as speculative business;

12 [(57a) “Finance Company” meansthe Finance Companies Act, 2023(Act No. 59 of 2023);]

(58) “firm” means a firm as defined in the Partnership Act, 1932 (Act No. IX of 1932);

(59) “Year” means fiscal year;

(60) “Market price” means-

(a) Where agricultural produce is generally sold in the market in its raw state or is processed and made fit for sale by a farmer engaged in production, the average price at which it was sold during the entire preceding year in the year in which the income arising from the produce is first assessed for tax; and

(b) In cases where the said agricultural produce is not generally sold in the market in raw condition, the sum of the following amounts:

(i) Expenses of cultivation;

(ii) Land development tax or rent on the land on which the crop is grown; and

(e) the rate of profit reasonably determined by the Excise Commissioner, taking into account the circumstances, on the selling price of the disputed goods, which are considered to be agricultural products;

(61) “Bangladeshi company” means a company formed and incorporated under the Companies Act, 1994 (Act No. 18 of 1994) and includes any entity established or constituted under or by law in Bangladesh and having its registered office in Bangladesh;

(62) “Annual value” means, in the case of a rental of any property—

(a) the reasonable rent of the property at the end of the year; or

(b) in cases where the amount of annual rent exceeds the amount determined in accordance with sub-clause (a), then the annual rent;

(63) “Proceeds from sale” means-

(a) If the asset is sold, the sale proceeds or the fair market value of the asset, whichever is higher;

(b) if assets are transferred through exchange, the fair market value of the assets acquired through such transfer;

(c) If the asset is transferred in any manner other than sale or exchange, the consideration received in exchange for such transfer;

(d) if any asset is abandoned, destroyed, destroyed or lost, the scrap value of the asset, or the money recovered through the sale thereof, including the money received or receivable for insurance, salvage or compensation against the asset;

(e) if the property is compulsorily acquired under any law in force in Bangladesh, the compensation paid for the acquisition;

(f) if the taxpayer's use of the asset in agricultural operations has ceased, the fair market value of the asset at the time of cessation;

(g) the export value received if any plant or equipment is exported or transferred outside Bangladesh after being used in Bangladesh;

(h) If the price of a passenger vehicle is subject to the maximum limit under the Third Schedule, the amount shall be –

A × (B/C), where-

A= money received from the sale of the vehicle; B = the amount specified in the Third Schedule; C= Actual cost incurred to acquire the vehicle;

Explanation.-“Sale” shall include exchange or other transfer or acquisition by compulsion under any law in force;

(64) “Foreign company” means any company which is not a Bangladeshi company;

(65) “Rules” means rules made under this Act;

(66) “Scientific research” means any activity conducted in the natural or applied sciences with the aim of developing knowledge;

(67) “Expenditure on scientific research” shall include donations made to any university, college, technical school or other institution approved by the Board, but shall not include any expenditure incurred in the following cases, namely:-

(a) Acquisition of any asset or intangible asset for which depreciation or amortization allowance is applicable;

(b) acquisition of fixed assets; or

(c) any expenditure incurred for the purpose of determining the existence, location, extent or value of any natural resource;

(68) “Board” means the National Board of Revenue established under clause (1) of article 3 of the National Board of Revenue Order, 1972 (President's Order No. 76 of 1972);

(69) “Person” shall include any natural person, firm, association of persons, Hindu undivided family, trust, fund and company;

(70) The term “business” shall include—

(a) any trade, commerce or manufacture of goods;

(b) any risk-taking or undertaking of any trade, commerce or production of goods;

(d) any profession or vocation;

(71) “Banking Company” means any banking company as defined in the Banking Companies Act, 1991 (Act No. 14 of 1991) and includes any statutory body established or constituted under or by any law for the time being in force in Bangladesh and carrying on banking business in Bangladesh;

(72) The term “bank transfer” shall include—

(a) Transfer of funds from one bank account to another by crossed cheque or any other method approved by Bangladesh Bank;

(b) Transferring money from one account to another through mobile financial services;

(c) Payment of fees, charges, duties or any other amount determined by the Government or any authority of the Government through challan in favour of the Government or any authority of the Government;

(73) “Current” means in the normal course of business—

(a) anything produced or made;

(b) anything obtained or purchased for the purpose of making, selling or exchanging; or

(c) all materials or supplies used in the production or manufacturing process, However, this does not include shares or stocks;

(74) “Director General (Central Intelligence Cell)” means the Director General (Central Intelligence Cell) referred to in section 4;

(75) “Director General (Inspection)” means the Director General (Inspection) referred to in section 4;

(76) “Director General (Training)” means the Director General (Training) referred to in section 4;

(77) “Fixed assets” means-

(a) property of any nature or description held by a taxpayer;

(b) any business or undertaking as a whole or as a unit;

However, the following matters shall not be included in this, namely:-

(i) any stock, consumables or raw materials held for the purposes of the taxpayer's business;

(ii) Personal effects, such as clothing, jewelry, furniture, fixtures or crafts, machinery and vehicles included in the meaning of movable property, which are used by the taxpayer or any member of his dependent family only for personal needs and are not used for the purpose of his business;

(78) “Gross income” means the total income referred to in section 26, calculated in the manner prescribed in this Act, and any other income which may be included in the total income of a taxpayer under the provisions of this Act;

(79) “Royalty” means any consideration which may be earned in the following manner and shall also include any one-time consideration other than consideration which is treated as income of the recipient under the heading of “capital income”, namely:-

(a) by transferring all or any rights, including any permitted licenses, in respect of patents, industrial designs or trademarks or any other intellectual property;

(b) by providing information regarding the use of patents, industrial designs or trademarks or any other property related to intellectual property;

(c) by using such property as a patent, industrial design or trademark or any other property relating to intellectual property;

(d) by providing information relating to technical, artistic, commercial or scientific knowledge, experience or know-how;

(e) any transfer of rights, including the granting of a license to copyright or film, other than the sale, distribution or exhibition of cinematograph films; or

(f) by providing any services related to the aforementioned activities;

(80) “Export” means the supply of any goods or services from within Bangladesh to outside the geographical boundaries of Bangladesh and shall include the supply and export of locally produced raw materials and other inputs to export-oriented industries under domestic back-to- back LCs;

(81) The term “dividend” shall include—

(a) any distribution of accumulated profits, whether capitalised or not, among the shareholders of the company, if such distribution results in a total or partial reduction of the assets or reserves of the company;

(b) any distribution of accumulated profits to the shareholders of the company by way of any kind of debentures, debenture stock or deposit certificates, whether capitalised or not;

(c) on the winding up of a company, whether capitalised or not, the distribution to its shareholders out of the money reserved in the form of accumulated profits of the company immediately before such winding up;

(d) distribution of retained profits owned by the company to its shareholders for the purpose of reducing capital, whether capitalized or not;

(e) any profit remitted outside Bangladesh by any company not incorporated under the Companies Act, 1994 (Act No. 18 of 1994);

(f) Distribution of profits of any mutual fund, real estate investment trust, exchange traded fund or alternative investment fund;

(g) any amount paid by a

13 [***] company out of the accumulated profits owned by it as an

advance or loan to any shareholder, whether or not forming part of the assets of the company, or any amount paid by such company on behalf of or for the personal benefit of any such shareholder,

However, the following matters shall not be included in this, namely:-

(i) where, on the dissolution of the company, no shareholder or debentureholder is entitled to a share in the surplus assets of the company, in the case of any share, including preference shares, in accordance with sub-clause (c) or (d), the distribution in full in cash, or the redemption of debentures or debenture-stock;

(ii) where the principal business of a company is to make loans, advances or loans made to any shareholder in the ordinary course of business;

(e) any dividend paid by the company which has been adjusted by the company against any sum previously paid in whole or in part and is treated as a dividend within the meaning of section 14 [sub-section (g)], to the extent of the adjustment so made;

(iv) Bonus shares issued by a company;

Explanation.-The term "accumulated profits" shall include,-

(a) in this clause, any partial or complete reserve created by any allowance, deduction or exemption admissible under this Act;

(b) in the case of sub-clauses (a), (b) and (d), all profits of the company up to the date of such distribution; and

(82) “Shareholder” shall also include preference shareholders;

(83) “Member (Tax)” means any person appointed as Member (Tax) of the National Board of Revenue;

(84) “Child” in the case of a natural person shall include the step-children and adopted children of that person;

(85) “Cooperative Society” means a cooperative society registered under the Cooperative Societies Act, 2001 (Act No. 47 of 2001), or any law for the time being in force relating to the registration of cooperative societies;

(86) “Assistant Tax Commissioner” means any person appointed as an Assistant Tax Commissioner under section 4;

(87) “Securities” shall include in the meaning of

(a) Treasury bills, bonds, MQCs, debentures, Sukuk or Shariah-based securities or similar instruments issued by the government;

(b) Shares or stocks issued by any company or legal entity or issuer, instruments issued by way of mortgage or charge or hypothecation, bonds, debentures, derivatives, units of any collective investment scheme including mutual funds or alternative investment funds, Sukuk or similar instruments issued on the basis of Sharia, and the right to purchase or warrant to acquire the aforementioned instruments:

Provided that it shall not include any currency or notes, drafts, cheques, bills of exchange, bank acceptances, trade receivables or trade payables;

(88) The term “interest” shall include—

(a) any type of financial assistance, such as interest or financial liability of any kind paid against loans, borrowings, trade credits, advances, security or guarantees; or

(b) service fees or any other kind of liability or payment which is considered as interest in monetary terms,

However, this shall not include expenses related to raising money or capital;

(89) “Service” means any service, but does not include goods, immovable property and money;

15 [(89A) “Accepted tax liability” means the income tax liability payable calculated under section 173, 174 or 181, as the case may be, on the basis of the return filed or the revised return;]

(90) “Recognized Provident Fund” means a provident fund which is approved by the Commissioner under the provisions of Part 3 of the Second Schedule;

(91) “Local Authority” means City Corporation, District Council, Upazila Council, Municipality and Union Council;

(92) “permanent establishment” means, in relation to business income, a fixed place of business or activity through which such business of a person is carried on wholly or partly, and shall include

—

(a) any place of management;

(b) any branch;

(d) any office;

(e) any warehouse;

(f) any factory;

(g) any work camp;

(h) any mine, oil or gas well, underground shaft or any other place for the exploration, extraction or extraction of natural resources;

(i) any farm or plantation;

(j) any construction site, any construction, installation or addition project or any related supervision activities;

(k) the provision of any service, including consultancy services, by any person or by any manpower employed by such person for that purpose, if such activity is carried on continuously in Bangladesh (in the same work or in any other work related to such work); and

(l) an associate of a non-resident person or a person commercially dependent on that non- resident person who carries on any activity related to any sale made by the non-resident person in Bangladesh;

(93) “Transfer” in the case of capital assets shall include sale, exchange or surrender or the extinction of any right in the asset, but shall not include the following matters, namely:-

(a) If the transfer of capital assets occurs by way of donation, will, bequest or an irrevocable trust;

(b) if the assets of the company are distributed to the shareholders in any manner during its liquidation; and

(c) If any capital asset is distributed at the time of dissolution of a firm or other body of persons or at the time of division of a Hindu undivided family.

Rule of law 3. (1) Notwithstanding anything contained in any other law for the time being in force, the provisions of this Act shall prevail.

(2) If any other law or any provision thereof is inconsistent with any provision of this Act, that law or provision of that law shall be deemed to be invalid to the extent of the inconsistency.

PART 2

Tax administration

Income Tax 4. For the purposes of this Act, there shall be the following Income Tax Authorities, namely:-

Authority (a) National Board of Revenue;

(b) Chief Tax Commissioner;

(d) Commissioner of Taxation (Appeals);

(e) Tax Commissioner (Large Taxpayer Unit);

(f) Director General (Training);

(g) Director General (Central Intelligence Cell);

(h) Tax Commissioner;

(i) Additional Commissioner of Taxes who is Additional Commissioner of Taxes (Appeals) or 16

[Director (Central Intelligence Cell)], Additional Director General (Training), Additional Director General (Inspection) or Inspector Additional Commissioner of Taxes;

(j) Joint Commissioner of Taxation who is Joint Commissioner of Taxation (Appeals), Director

(Training),

17 [Joint Director (Central Intelligence Cell)], Director (Inspection) or Inspector Joint

Commissioner of Taxation;

(k) Excise Commissioner 18 [or Deputy Director (Central Intelligence Cell)];

(l) Tax Recovery Officer nominated by the Tax Commissioner from among the Excise Commissioners under his jurisdiction;

(m) Assistant Commissioner of Taxes 19 [or Assistant Director (Central Intelligence Cell)];

(n) Additional Assistant Tax Commissioner; and

(o) Tax Inspector.

Income Tax Authority Recruitment

5. (1) Subject to the applicable laws and rules, the Income Tax Authority shall be appointed.

(2) The Board may, in such manner as may be prescribed by rules, appoint and designate any person as an Income Tax Authority.

(3) The Board may, subject to the organizational structure, appoint the necessary number of employees.

20 [(4) If an Income Tax Officer is appointed to a post immediately superior to his existing post, he shall exercise all the powers and perform all the functions of such higher post.]

Delegation of power

21 [6. (1) The Board may, by order,—

(a) may delegate any of its powers to any other income tax authority subordinate to it;

(b) may delegate the powers of any income tax authority to any other income tax authority.

(2) The Tax Commissioner may, by order, delegate any of his powers to any other income-tax authority subordinate to him.]

Subordination and control of income tax authorities

7. The Board may, by order, make provisions relating to the subordination and control of the income-tax authorities.

Duties, functions and jurisdiction of the Income Tax Authority

8. (1) Subject to the other provisions of this Act, the Member (Tax) may exercise and perform all the powers and functions which the Board may exercise and perform under this Act.

(2) The Director General (Inspection) shall perform the following functions, namely:-

(a) inspecting the implementation of the proceedings under this Act;

(b) Propose tax policy reforms and identify areas for tax administration development based on the inspection;

(c) Submitting to the Board in the form of a report including opinions and recommendations in the manner prescribed by the Board; and

(d) Any other function as determined by the Board.

(3) The Director General (Central Intelligence Cell) shall perform the following functions, namely:-

(a) Intelligence work to collect information from taxpayers;

(b) Analysis of relevant income tax records along with information collected based on intelligence activities;

(d) Conducting investigations to prove tax evasion or concealment of income or any other tax- related irregularities and to collect evidence in favour of tax fraud or tax evasion for recovery of tax after payment of penalty and, subject to applicability, to make recommendations for appropriate prosecution;

(e) any other function authorized by any other law or assigned by the Board;

(4) The Board may, by order, determine the jurisdiction of the Income-tax Authority and, if necessary, may re-determine the jurisdiction of the Income-tax Authority or alter the functions or transfer the functions and powers of one Income-tax Authority to another Income-tax Authority.

(5) Such transfer as referred to in sub-section (4) may be made at any stage of the normal course of proceedings and further proceedings may be taken from the stage at which the transfer was made.

(6) The Board may, by order, determine the place of assessment of tax payers.

Exercise of authority by successor

9. In any proceeding under this Act, if any Income-tax Authority is replaced by another Income-tax Authority, such Income-tax Authority shall commence proceedings from the stage at which the predecessor left any proceeding unfinished.

Following the board's instructions

10. All officers and other persons concerned in the performance of any function under this Act shall, in the performance of such function, follow the orders, directions or instructions issued by the Board from time to time:

Provided that no order, direction or instruction shall be given which may interfere with the discretion of the 22 [***] Additional Commissioner of Taxes (Appeals) or the Commissioner (Appeals) in the conduct of the appeal proceedings.

Instructions to the Excise Commissioner

11. In carrying out any activity under this Act, the Excise Commissioner may be assisted or given instructions or directions by the Income Tax Authority to which the Excise Commissioner is subordinate or any other person empowered in this behalf by the Board.

Exercise of powers of the Inspector Additional Tax Commissioner in tax assessment proceedings

12. (1) The Commissioner may, with the previous approval of the Board, by general or special order in writing, direct that the powers and functions of any authority under this Act shall be exercised by the Income-tax Authority immediately superior to that authority for the performance of all or any of the functions relating to any particular case or class of cases or any particular person or class of persons within his jurisdiction.

(2) Any order issued under sub-section (1) shall be deemed to have been made to the Income-tax Authority immediately before any reference made to it under this Act or any rule made thereunder.

PART 3

Tax Appeal Tribunal

Establishment of Tax Appeal Tribunal

13. (1) For the purpose of performing the functions of the Appellate Tribunal under this Act, the Government shall, from time to time, constitute a Tax Appellate Tribunal consisting of a President and such number of members as may be necessary.

(2) No person shall be appointed as a member of the Appellate Tribunal unless—

(a) He has at some time been a member of the Board or is currently holding the position of a member of the Board;

(b) He is or was a District Judge;

(d) He is a tax lawyer under section 327 and has at least 10 (ten) years of professional experience in the Income Tax Office; or

(e) He/She is professionally an expert in drafting financial and tax laws and has at least 10 (ten) years of experience;

(3) The Government shall appoint one member from among the members of the Appellate Tribunal, who shall be a member of the Board , as the President.

Exercise of Tribunal powers by the Bench

14. (1) Unless otherwise provided by the President in any particular case or class of cases, the powers and functions of the Appellate Tribunal shall be exercisable by the Benches of the Tribunal, hereinafter referred to as the Bench.

(2) The bench constituted under sub-section (1) shall consist of at least 2 (two) members.

(3) At least one member of each bench constituted under sub-section (1) shall be appointed from among the following persons, namely:

(a) a member of the National Board of Revenue, or

(b) Tax Commissioner.

Bench decision 15. (1) Subject to the provisions of sub-sections (2) and (3), a decision in any case or on any specific matter shall be taken on the basis of the opinion of the majority of the members.

(2) If the members of the bench are equally divided on any matter, the matter shall be stated in writing and the President shall refer it to one or more members of the Appellate Tribunal for hearing, and in such case the matter shall be decided on the basis of the opinion of the majority of the members of the Appellate Tribunal, including those who have heard the matter for the first time.

(3) If there are only 2 (two) members of the Appellate Tribunal and there is a difference of opinion, the Government may appoint additional members to the Appellate Tribunal for the purpose of hearing the case and the decision of the case shall be taken in accordance with the opinion of the majority of the members of the Appellate Tribunal consisting of the additional members.

Exercise of power by a member

16. Notwithstanding anything contained in section 14, the Government may direct that the powers and functions of the Appellate Tribunal be exercised jointly or separately by any one or more of its members.

Process control 17. Subject to the provisions of this Act, the Appellate Tribunal may determine the place where its own and other benches shall conduct their proceedings and the procedure for resolving matters arising in the course of their proceedings.

PART 4

Income tax assessment

CHAPTER ONE

Basis of taxation

Taxation 18. (1) Income-tax shall be assessed, levied, paid or collected on the basis of the total income of a person in any income year.

(2) Subject to the provisions of this Act, income tax shall be assessed, levied, paid or collected at a rate prescribed for any tax year under any law made by Parliament:

However, income tax may be levied, imposed, paid or collected at the prescribed rate on income earned in any period other than the income year.

(3) The following taxes shall be levied, imposed, paid or collected in accordance with the provisions of this Act, namely:-

(a) Tax at source;

(b) Advance income tax;

(d) Any other tax.

(4) Subject to the provisions of this Act, surcharges or any other charges shall be levied, imposed or collected at such rates and in such nature as may be prescribed under any law made by Parliament.

(5) Notwithstanding anything contained in this section, tax shall be levied at the rates specified in Part VII and the Seventh Schedule in the following cases, namely:-

(a) any income considered as capital income;

(b) any income deemed to be dividends; and

Additional taxation

19. Notwithstanding anything contained in the other provisions of this Act, if any person, without the previous approval of the competent authority of the Government, employs or provides employment in any income year in his business or profession to any person who is not a citizen of Bangladesh, such person shall pay 50% (fifty percent) of the tax payable under this Act or 5 (five) lakh taka, whichever is higher, as additional tax.

Taxation on differences in imports, exports or investments

20. Where it appears from the return filed by a taxpayer in any income year that the taxpayer-

(a) makes any import or export and there is a difference between the actual transaction value and the amount of money paid or received for the import or export declared by the taxpayer; or

(b) makes any investment and there is a difference between the amount of money actually invested and the amount of money declared by the taxpayer,

In that case, without prejudice to the other provisions of this Act, tax shall be payable at the rate of 50% (fifty percent) on the difference referred to in clause (a) or, as the case may be, on the difference between the amount of actual investment and the amount of investment declared as mentioned in clause (b).

Penalty imposed on foreign assets not declared in returns

21. (1) Where any foreign property is found not shown in the return of a resident Bangladeshi taxpayer and the taxpayer fails to furnish any satisfactory explanation as to the source or nature of the acquisition of such property or the explanation furnished is not satisfactory to the Excise Commissioner, the Excise Commissioner shall impose and recover from the taxpayer a fine equal to the fair market value of the foreign property.

(2) The provisions of sub-section (1) shall not prejudice any liability arising under this Act or any other law in force in Bangladesh.

(3) In the case of imposition of penalty under sub-section (1), the taxpayer shall be given a reasonable opportunity of being heard.

(4) The Excise Commissioner may recover the penalty imposed under sub-section (1) by selling or seizing any property of the taxpayer or any property held by any other person on behalf of the taxpayer.

(5) Where the Excise Commissioner has reasonable grounds to believe that a taxpayer has assets abroad which are not disclosed in his return, he may make inquiries in the country and abroad in respect of such assets.

(6) The Board, for the purpose of preventing the retention of any property not shown in the return or for the recovery of any property smuggled abroad-

(a) may take such action as it considers appropriate; or

(b) may give consent, permit or take action to any income tax authority not below the Excise Commissioner for the purpose of conducting an inquiry or investigation.

Taxation on retained earnings, reserves, surplus, etc.

22. Notwithstanding anything contained in this Act or any other law for the time being in force, if in any tax year a company incorporated under the Companies Act, 1994 (Act No. 18 of 1994) and listed on the Bangladesh Stock Exchange transfers money from the tax-paid net income of the previous tax year to the retained earnings or to any fund, reserve or surplus, by whatever name it may be called, and the amount of such transferred money exceeds 70% (seventy percent) of the tax-paid net income of the previous tax year, then tax shall be payable by the company in that tax year at the rate of 10% (ten percent) of the amount transferred.

Taxation on stock dividends

23. Notwithstanding anything contained in this Act or any other law for the time being in force, if in any income year the stock dividend declared or distributed by a company incorporated under the Companies Act, 1994 (Act No. 18 of 1994) and listed on the Bangladesh Stock Exchange exceeds the cash dividend declared or distributed or if only stock dividend is declared or distributed without cash dividend, tax shall be payable at the rate of 10% (ten percent) on the stock dividend declared or distributed by the company in that income year.

Self-motivated display of investment or income through special tax payments, etc.

24. (1) Where a person pays tax on an investment at the rate and on the terms specified in the First Schedule and the source of that investment is deemed to be treated as being explained in accordance with the provisions of this Act, that investment shall be deemed to be so explained.

(2) Where, subject to the payment of tax and other applicable amounts at the rate specified in the First Schedule and subject to the conditions specified in the Schedule, an opportunity has been given to a person to show any undisclosed income under the provisions of this Act, then such opportunity shall exist to show the income.

Special provisions for tax calculation

25. In cases where special provisions have been made in the Eighth Schedule for the computation of income of any class of persons or for the computation of any specific income, the income shall be computed in that manner.

CHAPTER TWO

Income coverage

Total income coverage

26. Subject to the provisions of this Act, the total income of a person in any income year shall include-

(a) in the case of a resident individual, the following income derived from any source, which is-

(i) accrued or arose, or is deemed to have accrued or arisen, to him in Bangladesh in that year;

(ii) accrued or arose to him outside Bangladesh during that year;

(e) is received or deemed to have been received by or on behalf of that person in Bangladesh in that year; or

(iv) is received or deemed to have been received by or on behalf of that person outside Bangladesh during that year;

(b) in the case of a non-resident person, the following income derived from any source, which is-

(i) accrued or arose, or is deemed to have accrued or arisen, to him in Bangladesh in that year; or

(ii) is deemed to have been received or received by or on behalf of the said person in Bangladesh in that year.

Income deemed to accrue or arise in Bangladesh

27. The following incomes shall be deemed to have accrued or arisen in Bangladesh, namely:-

(a) Any income falling within the income from employment category, irrespective of the place of payment, if it is-

(i) is acquired in Bangladesh; or

(ii) If a payment is made to a Bangladeshi citizen by the government or local authority in return for the provision of services;

(b) Any income accruing or arising, directly or indirectly, from the following sources, namely:-

(i) any permanent establishment situated in Bangladesh;

(ii) any intangible property, any property, right or other source of income existing in Bangladesh; or

(e) transfer of any property situated in Bangladesh;

(iv) selling any goods or services electronically to a buyer located in Bangladesh; or

(v) any intangible property used in Bangladesh; Explanation.- For the purposes of this section,

(a) Shares of a company resident in Bangladesh, by whomsoever held, shall be deemed to be property situated in Bangladesh;

(b) Any intangible property shall be deemed to be property existing in Bangladesh if-

(i) the intangible property is registered in Bangladesh; or

(ii) Where the owner of the intangible property is a non-resident of Bangladesh, if the intangible property is connected with a permanent establishment of the non-resident in Bangladesh:

(c) Where shares of a company not resident in Bangladesh are transferred, wherever such transfer of shares takes place, and if such company has any assets in Bangladesh, the amount of the value of the shares transferred shall be deemed to be a transfer of assets situated in Bangladesh to the extent that it relates to the value of any assets situated in Bangladesh;

(d) any dividend paid outside Bangladesh by a Bangladeshi company;

(e) any income payable as interest, if it is-

(i) is paid by the Government of Bangladesh;

(ii) is payable by a resident person, but the following shall not apply if the loan or borrowed money is-

(1) is received from outside Bangladesh; and

(2) is used for the purpose of carrying on any business outside Bangladesh or for the purpose of earning income from any source situated outside Bangladesh;

(e) is paid by a non-resident against any loan or money borrowed for the purpose of carrying on any business in Bangladesh or for the purpose of earning income from any source situated in Bangladesh;

(f) any income received as fees for technical services, if it is-

(i) is paid by the Government of Bangladesh; or

(ii) is payable by a resident person, but shall not apply in the following cases, if the said fee-

(1) is paid in return for services received for the purpose of carrying on a business outside Bangladesh; or

(2) is paid in return for services received for the purpose of earning income from a source located outside Bangladesh;

(e) is paid by a non-resident as a fee for services received for the purpose of conducting a business in Bangladesh or earning income from any other source in Bangladesh;

g) Royalty income, which is-

(i) payable by the Government of Bangladesh;

(ii) is paid by a resident person, but it shall not apply in the following cases, if the said royalty-

(1) is paid in exchange for any right, property or information or services received for the purpose of carrying on any business outside Bangladesh; or

(2) is paid in exchange for any right, property or information or services received for the purpose of earning income from a source located outside Bangladesh;

(e) payable by a non-resident in exchange for any property, information or services received or used in carrying on a business in Bangladesh or in earning income from any other source in Bangladesh;

(h) Insurance or reinsurance premium accrued or paid by any resident or non-resident against protection against any risk within Bangladesh.

The same income should not be included twice in the total income.

28. Where any money accrues or arises or is deemed to have accrued or arisen to any person in any income year and is included in the total income as income in whole or in part, such money shall not be included in the total income as if it had been received or deemed to have been received in Bangladesh by that person in any other income year.

PART 5

Income calculation

CHAPTER ONE

Total income

Total income calculation

29. Total income should be calculated by adding up the income from all sectors.

Income sectors 30. Unless otherwise provided in this Act, for the purpose of imposing income tax and computing total income, any income shall be classified in one of the following categories, namely:-

(a) Income from employment;

(b) Income from rent;

(d) Income from business;

(e) Capital gains;

(f) Income from financial assets;

(g) Income from other sources.

Income consolidation

31. (1) Unless otherwise provided in this Act, the following incomes shall be included in the total income of a person, namely:

(a) if the person is a partner in a firm or a member of a partnership, his share in the income of the firm or partnership;

(b) the income of the husband or wife or minor child of the said person, if

(i) the said husband or wife or minor child is dependent on him;

(ii) the person has reasonable control over such income; or

(e) He is willing to make such a merger:

Provided that this provision shall not apply if the said husband or wife or minor child is assessed separately.

24 [***]

CHAPTER TWO

Income from work

Income from work

32. (1) Subject to the provisions of sub-section (2), the following incomes shall be included in the meaning of income from employment, namely:

(a) Any financial receipts, salaries and benefits received or due from employment;

(b) Income earned from employee share schemes;

(d) Any sum or benefit received from any past or future employer.

(2) The following receipts shall not be included in income from employment, namely:

(a) Money received for medical expenses related to heart, kidney, eye, liver and cancer operations of any employee other than a shareholder director; or

(b) Travel allowances, travelling allowances and daily allowances received and expended solely and exclusively for the performance of job duties.

Explanation.-For the purposes of this section,

(a) “Salary” means any amount of money received by an employee from employment and shall include the following, namely:

(i) any salary, wages or remuneration;

(ii) any allowance, leave allowance, leave encashment, bonus, fee, commission, overtime;

(e) Advance salary;

(iv) Allowance, annuity, pension or their supplements;

(v) Perquisite;

(v) receipt in lieu of salary or wages or receipt in addition to salary or wages;

a) “Receipt in lieu of salary or wages” or “receipt in addition to salary or wages” shall be included in the meaning.

(i) any compensation received due to termination of employment, by whatever name it may be called;

(ii) the remaining portion excluding the employee's contribution to the provident fund or any other fund;

(e) the fair market value of the amount or benefits received as a result of the change in the terms of the employment contract;

(iv) the fair market value of the amount or benefits received upon joining the service or under any other condition of employment;

(c) “Perquisite” means any payment or benefit, including incentive bonuses, given by the employer to the employee, but does not include the following payments, namely:

(i) Basic salary, arrears of salary, advance salary, festival allowance, leave encashment and overtime;

(ii) Contributions paid to recognized provident funds, approved pension funds, approved endowment funds and approved old age funds;

(d) “Basic salary” means the salary paid monthly or otherwise on the basis of which other allowances and benefits are determined, but the following allowances or benefits shall not be included in it, namely:

(i) all types of allowances, perquisites, annuities, bonuses and benefits; and

(ii) Contributions made by the employer to various employee funds;

(e) “Employer” means the person who provides the employment and pays the wages and allowances or the person who performs the said work on behalf of the employer shall also be deemed to be the employer.

Determining the monetary value of perquisites, allowances and benefits

Determination of income earned from employee share scheme

33. The monetary value of perquisites, allowances and benefits other than those paid in monetary value shall be determined as per the following table, namely:-

Table

Serial No.

Perquisites ,

allowances , benefits , etc.

Set price

( 1 )

( 2 )

( 3 )

1 .

Accommodation facilities

( a ) the annual cost of accommodation if the rent for the

accommodation is paid in full by the employer or if

accommodation is provided by the employer ;

( b ) In the case of accommodation obtained at reduced rent , the difference between the rent determined in

accordance with paragraph ( a ) and the rent paid .

2 .

Benefits per car

( a ) 10 ( ten) thousand taka per month for vehicles up to 2500 cc ;

( b ) 25 ( twenty-five) thousand taka per month for vehicles exceeding 2500 cc .

3 .

Any other perquisites , allowances or benefits

The monetary value or fair market value of the perquisite , allowance or benefit .

34. (1) Employee share scheme means any agreement or arrangement under which a company-

(a) may issue shares to any of its employees or any of its affiliated companies; or

(b) Shares may be issued to the trustee of a trust and the trustee may subsequently issue such shares to any employee of the company or any of its affiliates in accordance with the trust deed.

(2) If shares are received under an employee share scheme, the income shall be added to the income from employment in the year of receipt of the shares as per rule A-B, where-

A = Fair market value of the shares on the date of acquisition,

B = Cost of acquiring shares.

(3) The cost of acquiring shares referred to in sub-section (2) shall mean the sum of the following costs, namely:-

(a) If the employee has paid any price to acquire the shares;

(b) If the employee has paid any price to acquire the right or opportunity to acquire shares.

(4) If the employee sells or transfers the right or opportunity to acquire shares under the employee share scheme, the income shall be added to the income from employment in accordance with the rules A-B, where-

A = Sale or transfer price of the right or opportunity to acquire shares,

B = Price paid to acquire the right or opportunity to acquire shares.

²⁵ [CHAPTER THREE

Rental income

Definition 35. For the purpose of this Chapter,—

(1) “Household property” means any house property, building or structure and shall also include the following assets, namely—

(a) furniture, fixtures, fittings which are an integral part of the said house; and

(b) The land on which the house property is situated:

Provided that the following buildings or structures shall not be included therein, namely:—

(i) any building which is used solely as a warehouse, or

(ii) any factory building which is rented as an integral part of the rental of plant and machinery;

(2) “Rent” means the right to use property for a specified period without giving up ownership or title, but does not include the rental of property, whether owned by the owner or not, to any other person by a scheduled bank, investment bank, development finance company or mudaraba or leasing company;

(3) “Property” means house property, land, furniture, fixtures, factory buildings, business premises, machinery, personal vehicles and any other physical assets of a capital nature which can be rented.

Rental income 36. (1) The total allowable expenses as described in this Chapter shall be deducted from the total rental value earned by a person from the rental of any property, and the remainder shall be the rental income of that person from that property.

(2) If any part of the property of a person is used for the purposes of his own business or if the income derived therefrom is chargeable to the income from business of that person, this section shall not apply to that part.

(3) The income earned from any property other than a hostel, hotel, motel or resort, irrespective of the nature of the rental, trade, commerce or business, shall be calculated under the head “Income from rental”.

Total rental price calculation

37. (1) The total rental value of any house property owned by a person in any income year shall be calculated in accordance with the following formula, namely:—

A = (B+C+D+E)-F, where—

A = Total rental price,

B = whichever is greater of the following numbers, namely:—

(i) the amount of rent earned from the house property; or

(ii) Annual value of the property;

C = The amount of the adjustable advance received for the rent of the said house property which has been adjusted in the said income year:

Provided that it shall not include any non-negotiable advance or security deposit,

D = The monetary value of any amount or benefit other than the salami or premium received from the use of the said house property in the said income year, which is in addition to the amounts mentioned in B and C,

E = Any service charge, repair and maintenance charge or any other amount, by whatever name it may be called, paid by the tenant of the property.

F = Vacancy allowance which will be admissible only if proven subject to production of electricity bill.

(2) The total rental value of property other than house property shall be calculated according to the following formula, namely:—

A = (B+C+D), where-

A = Total rental price,

B = whichever is greater of the following numbers, namely:—

(i) the amount of rent earned from the property; or

(ii) Annual value of the property;

C = The amount of the adjustable advance received for the rent of the said property that has been adjusted in the said income year is:

Provided that it shall not include any non-negotiable advance or security deposit,

D = Income derived from the use of the property in any other way and any other amount or monetary value of any benefit received from the property, which is in addition to the amounts mentioned in B and C.

Allowable deductions in computing rental income

38. (1) In computing the income derived from the rental of a house property owned by a person, the following expenses shall be deductible, namely:—

(a) the premium paid for any insurance taken out against the risk of loss or destruction of any household property;

(b) Interest or profit paid on any capital loan taken from a bank or finance company for the acquisition, construction, renovation or reconstruction of a house property;

(d) If any interest or profit has been paid to any bank or finance company on any capital loan used for the acquisition, construction, repair, renovation or reconstruction of a house property during the pre-lease period, such interest or profit shall be paid in equal installments over a total of 3 (three) income years consecutively from the relevant income year with the commencement of the lease:

Provided that no interest or profit or any part thereof, if any, during the pre-lease period shall be deductible after the said period;

(e) The amounts mentioned in the table below for rent collection, water and sewage, electricity, gas, service charges, repair and maintenance charges and any other basic service related expenses, namely:-

Table

Serial No.	Property type	Statutory separation ( Total rental price) (in percentage )
( 1 )	( 2 )	( 3 )
1.	Commercial real estate	30 % ( thirty percent )
2.	Residential property used for non- commercial purposes	25 % ( twenty-five percent )

(f) In case of partial rent of the house property, the expenses shall be allowable at a pro rata rate against the partial rent;

(g) Where rent is paid for a part of a house property during the income year, the expenditure shall be allowable on a pro rata basis for the period during which the rent is paid.

(2) In computing income from rental of any property other than house property, deductions shall be allowed subject to the following limits and conditions, namely:—

(a) all deductions allowed under sections 49-55 in computing income from business, subject to the limits and conditions;

(b) All other deductions except the allowances approved as per the Third Schedule shall be made through bank transfer.

Calculation of income from special rent

39. (1) Any part of any statutory deduction claimed as unspent under clause (e) of sub-section (1) of section 38 shall be treated as income from special rent.

(2) Except in cases of accounting adjustment, unauthorized deductions under sub-section (2) of section 38 shall be treated as income from special rent.

(3) No deduction, adjustment of losses or deductions and no allowance under the Third Schedule shall be allowed against the income computed as income from special rent and such income shall be taxable at the ordinary rate of tax.

CHAPTER FOUR

Income from agriculture

Income from agriculture

40. (1) Income earned by a person from activities related to agriculture shall be classified as income from agriculture.

(2) 40% (forty percent) of the proceeds from the sale of tea and rubber produced and processed by a person shall be considered as business income and 60% (sixty percent) shall be considered as income from agriculture.

(3) Agriculture shall include any type of gardening, animal husbandry, natural use of land, poultry and fish farms, reptile farms, nurseries, any type of cultivation on land or in water, egg and milk production, wood, grass and shrub production, fruit, flower and honey production and seed production.

Special agricultural income

41. (1) Without prejudice to the generality of section 40, the provisions of this section shall apply to the computation of special agricultural income.

(2) If any property is sold in any income year after being used for the agricultural purposes of the taxpayer under section 40, it shall be calculated as follows, namely:-

Serial No.	Proceeds from sale	Amount of money considered as income
( 1 )	( 2 )	(3)
1.	If the proceeds from the sale are more than the acquisition cost of the asset	The amount equivalent to A - B will be considered as income under the ' capital income ' category of the concerned taxpayer in that income year ; The amount equivalent to b - c will be considered as income from the “ Agricultural Income ” category of the concerned taxpayer in that income year .
2.	If the proceeds from the sale are not more than the acquisition cost of the asset , then they are more than the depreciation cost .	The amount equivalent to A - C will be considered as income from the " Agricultural Income " category of the concerned taxpayer in that income year .

(3) If the amount received by the taxpayer in any income year as insurance, salvage or compensation due to the abandonment, destruction or destruction of any asset used by him in his agricultural work exceeds the depreciated value of that asset, such amount shall be included in the income from agriculture as follows:-

Serial No.	Proceeds from sale	Amount of money considered as income
( 1 )	( 2 )	(3)
1.	If the amount of insurance , salvage or compensation exceeds the realizable value of the asset	The amount equivalent to A - B will be considered as income under the ' capital income ' category of the concerned taxpayer in that income year ; The amount equivalent to b - c will be considered as income from ' Agricultural Income ' category of the concerned taxpayer in that income year .
( 1 )	( 2 )	(3)

If the amount of insurance , salvage or compensation does not

exceed the realizable value of the property , it shall exceed the value of the loss .

The amountequivalentto A - C will beconsideredasincomefrom'AgriculturalIncome'categoryconcernedtaxpayerthatincome year.

(4) For the purposes of this section,-

A = proceeds from the sale of the asset or, as the case may be, proceeds from insurance, salvage or compensation against the asset,

B = acquisition cost of the asset, and

C= The calculated depreciable value of the asset after allowing depreciation under the Third Schedule, Who will understand?

(5) If the difference between the sale proceeds or, as the case may be, the proceeds received on insurance, salvage or compensation against the property and the depreciated value as per column (2) of the table in sub-sections (2) and (3) is negative, the result shall be treated as expended under the head 'Income from agriculture' and shall be included in the general deduction allowed.

General deductions allowed in computing income from agriculture

42. (1) In computing the taxable income of a person from agriculture in any income year under this Act, the amount of money spent by the taxpayer in that year, other than capital expenditure or personal expenditure, wholly and exclusively for the purpose of agriculture shall be allowable as a deduction and the following deductions shall be treated as general deductions, namely:-

(a) any tax, land development tax or rent paid on land or premises used for agricultural purposes;

(b) rent payable, development and maintenance expenses and cultivation expenses for land or premises used for agricultural purposes;

(d) Expenses related to maintenance and repair of machinery and equipment used in agricultural work and raising and rearing of livestock for cultivation, related processing or transportation;

(e) insurance premiums payable for the purpose of compensation for land or premises or for the compensation of crops or products produced from land or premises or for the purpose of security in the keeping of livestock;

(f) Money spent to protect agriculture from natural disasters or any other type of damage;

(g) The following expenses as per the permissible limits mentioned in the Third Schedule:

(i) Depreciation of assets used in the relevant agriculture by the taxpayer;

(ii) Amortization of intangible assets used in related agricultural activities;

(h) where an animal used in the taxpayer's agricultural work has died or become permanently disabled, an amount equal to the difference between the actual purchase price of the animal and, as the case may be, the proceeds from the sale of the animal or its meat;

(i) any expenditure incurred in connection with a trip abroad as a member of a delegation related to agriculture sponsored by the Government, which is not of a capital nature;

(j) any expenditure incurred in providing training to citizens of Bangladesh on subjects related to any such scheme approved by the Board;

(k) Expenditure incurred in the conduct of any agricultural scientific research or expenditure incurred in the conduct of any such scientific research by which the research is conducted wholly and exclusively for the purpose of the development of the taxpayer's agriculture in Bangladesh.

(2) Only that part of any expenditure under this section which is related to income from agriculture shall be considered as allowable expenditure.

Calculation of special deductions in

43. (1) If it appears that—

(a) The taxpayer is not applying regular accounting procedures;

case of non- maintenance of books of account

(b) the taxpayer is applying any method on the basis of which it appears to the Excise Commissioner that it is not possible to arrive at a conclusion regarding the taxpayer's income;

(d) The accounts or transaction records maintained by the taxpayer are not verifiable,

In such case, notwithstanding anything contained in any other section, 60% (sixty percent) of the market value of the agricultural produce so produced shall be deemed to be the allowable expenditure.

(2) This section shall not apply in cases where the owner of the land or premises receives income from agriculture on a share, share, severance or share basis.

In some cases, deductions will not be allowed.

44. (1) In all cases where deduction or collection of tax at source is applicable, no deduction claimed under this Chapter shall be allowed unless the provisions of Part 7 are complied with.

(2) The provisions of section 55 shall apply as if the provisions related to this Chapter.

CHAPTER FIVE

Income from business

Income from business

45. The following incomes of the taxpayer shall be classified as income from business, namely:-

(a) any profits and gains of any business carried on or deemed to be carried on by the taxpayer at any time during the income year;

(b) any income earned by any business or professional organization or by any such organization from the provision of specific services to its members;

(c) the fair market value of any benefit arising from or in connection with a person's past, present or potential future business relationship, whether or not convertible into money;

(d) any management fee incurred by any management company, including a Mudaraba management company;

(e) Any amount received by the lessor, bank, insurance or financial institution, against the lease of any asset owned by the lessor or another person to another person;

(f) Realized gain from currency exchange subject to the Third Schedule;

(g) Any income received in the income year from a business that has been closed.

Special areas of income from business

46. (1) Without prejudice to the generality of section 45, the provisions of this section shall apply in special cases, in the computation of income from business.

(2) If any property used in the business of the taxpayer for which income is being computed is sold in any income year, then the amount of income from such sale shall be as follows, namely:-

Serial No.	Proceeds from sale	Income amount
( 1 )	( 2 )	(3)
1.	If the proceeds from the sale are more than the acquisition cost of the asset	The amount equivalent to A - B will be considered as income under the category of ' capital income ' of the taxpayer in that income year ; The amount equivalent to b - c will be considered as income of the taxpayer in the category of ' Income from Business ' in that income year .
2.	If the proceeds from the sale are not more than the acquisition cost of the asset , then they are more than the depreciation cost .	The amount equivalent to A - C will be considered as income of the taxpayer in the category of ' Income from Business ' in that income year .

(3) If any amount received by way of insurance, salvage or compensation for the abandonment, destruction or obliteration of any property after it has been used in the business of the taxpayer, and the amount thereof exceeds the depreciated value of the said property, then the income in this case shall be as follows, namely:-

Serial No.	²⁶ [Sale proceeds]	Income amount
( 1 )	( 2 )	( 3 )
1.	If the amount of insurance , salvage or compensation exceeds the realizable value of the asset	The amount equivalent to A - B will be considered as income under the ' capital income ' category of the concerned taxpayer in that income year ; The amount equivalent to b - c will be considered as income under the category of ' Income from Business ' of the concerned taxpayer in that income year .
2.	If the amount of insurance , salvage or compensation does not exceed the realizable value of the property , it shall exceed the value of the loss .	In case A > C , the amount equal to A - C shall be considered as income under the category of ' Income from Business ' of the concerned taxpayer in that income year ; In case A < C , then the amount equal to C - A shall be allowed as expenditure under section 49 for the purpose of computing the ' income from business ' of the concerned taxpayer in that income year .

(4) If the difference between the sale proceeds or, as the case may be, the proceeds of insurance, salvage or compensation against the property and the depreciated value as per column (2) of the table in sub-sections (2) and (3) is negative, the result shall be treated as being charged to income from business and shall be included in the general deduction allowed.

(5) The table in sub-sections (2) and (3) states-

A = money received for insurance, salvage or compensation against the asset received from sale],

B = acquisition cost of the asset, and

27 [or money

C = Calculated depreciable value of the asset after allowing depreciation under the Third Schedule,

Who will understand?

(6) If an exporter taxpayer transfers the whole or part of the export quota allocated in his favour by the Government to any other person in any income year, then the proportionate export value of such transferred quota shall be treated as income from the business of the taxpayer in that income year.

28 [***]

(8) If in any income year any trading liability of the taxpayer is taken into account in computing income under this Chapter and—

(a) If the taxpayer receives any benefit in respect of trading liabilities in any subsequent income year, the monetary value of that benefit shall be treated as income from the taxpayer's business in the income year in which the benefit is received;

(b) If the trading liability or any part thereof remains unpaid within 3 (three) years following the end of the income year in which the said trading liability is taken into account, then the said unpaid trading liability shall be treated as income from the business of the taxpayer in the income year following the end of the said 3 (three) years:

Provided that if any trading liability which has been treated as income is paid in any subsequent year, then that amount shall be excluded from the computation of the income of the taxpayer in the income year to which the payment relates.

(9) If in any income year a loss, bad debt or any expense is deducted in the computation of income under this Chapter and in any subsequent income year the taxpayer receives any benefit in respect of that deducted loss, bad debt or expense, then the monetary value of that benefit shall be treated as income from the taxpayer's business in the income year in which the benefit is received.

(10) In the case of filing a return under section 180, any deficiency in the initial capital shown at any time during the next 5 (five) years from the year in which the return is filed shall be treated as income from business.

(11) In computing the income of a financial institution, interest or profit income on loans classified as bad or doubtful loans by Bangladesh Bank shall be included as income from business of the financial institution in the income year in which it is credited to the profit and loss account or in which it is actually received, whichever is earlier.

(12) For the purposes of this section,-

(a) The business in which the asset was used before the sale shall be deemed to have been carried on by the taxpayer in the income year to which the asset is sold;

(b) If any asset is exported or transferred outside Bangladesh after being used in the taxpayer's business, the date of such export or transfer shall be deemed to be the date of sale of the asset and the purchase price of the asset shall be considered as the proceeds of sale.

Calculating the profit of some businesses

Considering speculation separately

47. The profit of the business mentioned in column (2) of the following table shall be computed in accordance with the provisions of the Schedule mentioned in column (3) of the table, namely:-

Table

Serial No.	Business	Schedule
( 1 )	( 2 )	( 3 )
1 .	Insurance business	Fourth Schedule
2 .	Extraction and exploration of natural gas , mineral oil or other minerals	Fifth Schedule

48. Any speculative business carried on by a person shall be considered as a separate and distinct business from the other businesses of that person.

General deductions allowable in computing income from business.-

49. Subject to the provisions of this Act, in computing the income from a business of any person in any income year, the following expenses shall be included in the general deduction for each separate and distinct business, namely:-

(a) Expenses for the purchase of raw materials, inventories, goods for business purposes and use in business and any uncollected inventory expenses;

(b) such duties, taxes, municipal taxes, local taxes, land development taxes or rents and government fees paid for business purposes, not paid under this Act and the Donations Act, 1990 (Act No. 44 of 1990);

(d) all such expenses, welfare expenses or remuneration as are considered as income from employment under this Act;

(e) Repair and maintenance expenses;

(f) Insurance premiums incurred and paid for business purposes;

(g) Expenses for electricity and other services including fuel;

(h) Freight, clearing and forwarding charges;

(i) Expenses in the nature of commission, brokerage, discount or warranty charges related to sales;

(j) Advertising and promotional expenses;

(k) Expenditure on training of employees;

(l) Conference, hotel and accommodation expenses of sales representatives;

(m) Travel and travel expenses;

(n) Expenses related to internet services, postal and telecommunications;

(o) Expenses related to obtaining legal services, audit services and other professional services;

(p) expenses related to entertainment and guesthouses;

(t) subject to the Third Schedule, monetized exchange losses of foreign currency;

(r) Subscriptions for the use of the facilities of any club or commercial association, including entrance fees;

(s) any expenses incurred in connection with a trip abroad as a member of a trade delegation sponsored by the Government;

(n) Royalties, technical fees, head office expenses;

29 [(p) The amount paid to the Participation Fund, Welfare Fund and the Workers' Welfare

Foundation Fund established under section 14 of the Bangladesh Workers' Welfare Foundation Act, 2006as per clause (b) ofsub-section (1) of section 234 of the Labour Act, 2006, which does not exceed 5% (five percent) of the net business profit shown;]

(f) Other expenses incurred wholly and exclusively for business purposes.

Special deductions allowable in computing income from business

50. (1) The following expenses shall be deductible subject to the permissible limits and conditions set out in the Third Schedule, namely:-

(a) General depreciation allowance;

(b) Early depreciation allowance;

(d) amortization allowance; and

(e) Research and development expenditure.

(2) If any property mentioned in the Third Schedule is sold in any income year and the proceeds of such sale are less than the depreciated value, then, subject to the claim of deduction by the taxpayer, an amount equal to the difference between the depreciated value and the proceeds of sale.

(3) Bad debt expenses allowed under section 51 shall be deducted in computing income from business.

(4) Interest expenses allowed under sections 52 and 53 shall be deducted in computing income from business.

Bad debt expense approval

51. (1) In cases other than banks and financial institutions, bad debt expense shall be admissible if-

(a) The bad debt or part of the bad debt is finalised as non-performing and is shown as written off in the business accounts;

(b) All reasonable steps have been taken to recover the amount written off as bad debt before it is written off;

(2) In the case of banks and financial institutions, bad debt expense shall be allowable if-

(a) Bad debts or parts of bad debts are finalised as non-performing by banks and financial institutions in accordance with International Accounting Standards (IAS) and applicable in Bangladesh and are shown as written-off in the business accounts;

(b) All reasonable steps are taken to recover the amount written off as bad debt before it is written off;

Calculation of special

52. (1) Any payment of interest or, as the case may be, any profit sharing on any capital borrowed for the purpose of business shall be allowed as business expenditure.

deductions for interest or profit

(2) If it is found that any part of the borrowed money has been used for any purpose other than the business or that any part of the assets acquired with the borrowed money has been transferred to another place outside the business where the investment of the money is not the business of the transferor, then interest or profit expense shall be allowed at the rate proportionate to the part of the said money or assets used for business purposes.

Special limits on interest approval

53. (1) Notwithstanding anything contained in the other provisions of this Act, subject to the provisions of sub-section (2), the approval of interest expense in any tax year by a resident person to an associate company as defined in section 233, other than a bank and financial institution, shall be in accordance with the procedure and limits prescribed by the Board.

(2) Notwithstanding anything contained in sub-section (1), this section shall not apply if the amount of interest paid in any income year does not exceed 15 (fifteen) lakhs of taka.

General conditions for approval of separation

54. (1) If any expenditure under this Chapter is allowed as a deduction in any income year which represents, in whole or in part, any asset, no further deduction shall be allowed in respect of that asset in the same income year.

(2) In approving any expenditure under section 49, the commercial rationality of the expenditure concerned shall be considered and the following matters shall be taken into account in considering commercial rationality, namely:-

(a) If the expenditure incurred is for the purpose of earning income from the business;

(b) if the expenditure incurred is of a revenue nature; and

In some cases, deductions may not be permissible.

55. Notwithstanding anything contained in this Chapter, the following deductions shall not be allowable in computing income from business in the following cases, namely:-

(a) any expenditure or payment in respect of which the provisions of Part 7 have not been properly complied with;

(b) Interest, salary, commission or remuneration paid by a firm or partnership to any partner of the firm or any member of the partnership;

(d) Any amount in excess of 10 (ten) lakhs of taka paid to an employee as perquisites as defined in the Explanation to Section 32:

Provided that nothing in this section shall apply to payments made to employees for the implementation of the recommendations of a wage board constituted by the Government, by notification in the Official Gazette, on the basis of a decision of the Government;

(e) royalties, license fees, technical service fees, technical strategy fees, technical assistance fees or any other fees of a similar nature incurred for the use of intangible property, in excess of 10% (ten percent) of the net business profit shown in the financial statements;

(f) In the case of head office or intra-group expenses, by whatever name they may be called, incurred by a company not registered in Bangladesh, in excess of 10% (ten percent) of the net business profit shown in the financial statements;

(g) In the case of expenses related to foreign travel for business purposes, an additional amount of 0.5% (zero decimal five percent) of the business turnover shown in the financial statements:

Provided that this limit shall not apply in cases where the taxpayer travels abroad for the purpose of rendering any service to the Government:

Provided further that the limit provided in this clause shall not apply if evidence is presented in support of the additional amount calculated under this clause and its commercial justification is proven;

(h) Entertainment expenses in excess of the following amounts:

(i) 4% (four percent) of the first 10 (ten) lakhs of the assessed business income excluding deduction for entertainment expenses; and

(ii) 2% (two percent) of the next amount after the first 10 (ten) lakh taka of the assessed business income excluding deduction for entertainment expenses;

(i) Additional figures for free sample distribution in addition to the following figures:

(i) In the case of the pharmaceutical industry-

(1) At the rate of 2% (two percent) of business turnover up to 5 (five) crore taka;

(2) In cases where the business turnover is more than 5 (five) crores but not more than 10 (ten) crores, at the rate of 1% (one percent);

(3) In cases where the business turnover exceeds 10 (ten) crore taka, at the rate of 0.5% (zero decimal five percent);

(ii) In the case of food, cosmetics and perfume industries:

(1) At the rate of 1% (one percent) of the business turnover up to 5 (five) crore taka;

(2) In cases where the business turnover is more than 5 (five) crores Taka but not more than 10 (ten) crores Taka, at the rate of 0.5% (zero decimal five percent);

(3) In cases where the business turnover exceeds 10 (ten) crore taka, at the rate of 0.25% (zero decimal two five percent);

(e) In the case of other industries-

(1) At the rate of 0.5% (zero decimal five percent) of business turnover up to 5 (five) crore taka;

(2) In cases where the business turnover exceeds 5 (five) crores but does not exceed 10 (ten) crores, at the rate of 0.25% (zero decimal two five percent);

(3) In cases where the business turnover exceeds 10 (ten) crore taka, at the rate of 0.1% (zero decimal one percent);

(j) In the case of promotional expenses other than advertising, an amount exceeding 0.5% (zero decimal five percent) of the business turnover;

(k) If any money considered as income from the employment of the employee is paid through any other means than through banking;

(l) If any payment which is considered as income from rent is made through any other means than banking, the amount paid;

(m) If any amount for raw materials is paid through any other means other than banking, an additional amount of Taka 5 (five) lakhs is paid;

(n) In case of all other types of expenses except clauses (k), (l) and (e), the additional amount of 50 (fifty) thousand taka, if paid through any other means other than banking, is the amount paid;

(o) any amount paid to any person who is required to furnish proof of filing of return under clauses 25, 26, 28, 29, 36, 37, 42 and 43 of sub-section (3) of section 264, if such person fails to furnish proof of filing of return at the time of payment of the amount;

(p) any expenditure of a capital nature or any personal expenditure of the taxpayer;

(t) 30 [any deduction or any deduction arising against any liability] which is not clearly determined;

(r) all expenses not related to business activities;

(s) Any depreciation allowance and interest deduction claimed for the right of use of an asset in accordance with International Financial Reporting Standards:

Provided that in this case, the rent payable for

31 [property] used for business purposes,

development and maintenance expenses shall be approved;

(n) Impairment loss of notional assets;

32 [(p) Money paid into any fund for which this Act provides for approval but which has not been approved;]

(f) All unsubstantiated expenses if the accounting provisions are not followed in the prescribed manner.

Explanation.- For the purposes of this section,-

(i) “Net business profit” means the profit of a business directly conducted by an entity, but does not include the profit earned from any subsidiary, associate or joint venture;

(ii) "Promotional expenses" means business expenses claimed against the provision of any goods, money or any other form of benefit to anyone for business purposes, but shall not include advertising expenses.

Special Business Income Calculation

56. (1) Notwithstanding anything contained in the other provisions of this Act, all expenditure not permitted under any other clause of section 55 except in the case of clauses 33 [clauses (d)-(j), (h), (i) and (n)] shall be treated as special business income.

(2) No expense, adjustment or carry-over of losses and no allowance under the Third Schedule shall be allowed against any income treated as special cases of “special business income” or “income from business” under this Chapter and such income shall be taxable at the ordinary rate of tax.

CHAPTER SIX

Capital gains

Capital gains 57. Profits and gains arising from the transfer of ownership of capital assets shall be capital income:

Provided that, any notional gain or profit arising from any asset which has not been actually transferred following the fair market value method as per International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS) shall not be considered as capital income.

Capital Gains Calculation

58. (1) Subject to the provisions of this Act, the capital gain of a person shall be the difference between the sale or transfer price of any asset in the open market and the acquisition price of that asset.

(2) For the purposes of this section,-

(a) The open market selling or transfer price of an asset shall be the higher of 'A' and 'B', where-

A = money received or accrued from the transfer of assets; and

B = Fair market value of the asset on the date of transfer;

(b) “Acquisition value of assets” means-

(i) The acquisition cost of an asset shall be the sum of the following costs:

(1) any such expenses which are solely related to the transfer of ownership of the said property;

(2) Purchase price of the asset; and

(3) the cost of development of the said property, if any, other than the cost permitted under section 38, 42, 49, 50 or 64;

(ii) Where the transferor has acquired the said property in the following manner:

(1) Subject to any gift, donation or bequest;

(2) Succession, inheritance or succession;

(3) Subject to the transfer of any revocable or irrevocable trust;

(4) by any distribution of capital assets for the purpose of winding up a company; or

(5) In the event of division of a firm or partnership or Hindu undivided family, by distribution of capital assets,

In that case, the fair market value on the date of acquisition of ownership of the asset by the transferor shall be considered as the acquisition price of the asset.

Calculation time 59. Income arising from the transfer of capital assets shall be included in the income of the income year in which the transfer takes place.

Limitations on the authorization of deductions

60. In the case of any expenditure on which tax is deducted at source, if tax is not deducted or collected at source and is not duly paid in accordance with the provisions of this Act, such expenditure shall not be considered as an allowable deduction under this Chapter.

Other factors in determining capital gains

61. (1) If the fair market value of any property is more than 15% (fifteen percent) of the full value of the goods declared by the taxpayer, the Excise Commissioner shall, with the prior approval of the Inspector Additional Commissioner of Taxes, determine the fair market value of that property.

(2) If the fair market value of any property is more than 25% (twenty-five percent) more than the acquisition price declared by the taxpayer, the Excise Commissioner may, in the manner prescribed by the Board, make an offer to purchase the said property at the declared acquisition price.

(3) Capital gains arising from the transfer of all the assets of a partnership firm to a new company established under the Companies Act, 1994 (Act No. 18 of 1994) shall be exempt from tax if the consideration for the transfer of all the assets is invested in the equity of the new company.

CHAPTER SEVEN

Income from financial assets

Income from financial assets

62. (1) The following income of a person shall be classified under the heading “Income from financial assets”, namely:-

(a) Interest, profit or discount on government or government-approved securities;

(b) Interest, profit or discount on debentures or any other type of securities issued by local authorities or companies;

(i) Deposits held in any bank or financial institution, by whatever name they may be called;

(ii) any financial 34 [asset,] product or scheme;

(d) Dividends.

(2) Capital income earned from the transfer of financial assets shall not be classified as “income from financial assets”.

Income calculation time

63. Any income received from a financial asset by a person or the income earned by him in the year of income, whichever occurs first, shall be included in that year of income.

Allowable expenses in computing income from financial assets

64. In calculating income under the heading “Income from financial assets”, the following expenses shall be allowed, namely:-

(a) Amounts deducted, excluding income tax, against interest or profit paid to the taxpayer by a bank or financial institution;

(b) interest paid on money borrowed solely for the purpose of earning “income from financial assets”;

(c) Any other expenditure incurred, other than the expenditure mentioned in clause (a) or (b), solely for the purpose of earning the relevant income.

In some cases, deductions may not be permissible.

65. Notwithstanding anything contained in this Chapter, the following expenses shall not be allowed in computing income from financial assets, namely:-

(a) any interest payable outside Bangladesh from which tax has not been deducted or paid in accordance with the provisions of this Act;

(b) interest or commission paid on income from such financial assets as are exempt from tax;

CHAPTER EIGHT

Income from other sources

Income from other sources

66. The following incomes of a taxpayer shall be classified and calculated under the heading of income from other sources, namely:-

(a) Income earned through royalties, license fees, fees for technical knowledge and the provision of rights to use intangible property;

(b) Cash subsidies provided by the government;

35 [(c) Income derived from the alienation of any property, whether natural or of a person's own creation, other than mineral deposits and hydrocarbons and goodwill;]

36 [(d) any donation, grant or gift, by whatever name it may be called;

(e) Income from any source not classified under any other heading mentioned in section 30.]

Special areas of income from other sources

67. (1) Without prejudice to the generality of section 66, the provisions of this Chapter shall, in special cases, apply to the computation of “income from other sources” in accordance with the provisions of this Chapter.

(2) In any income year, where any sum found credited in the books of account or other documents of the taxpayer is found to be of such nature and source as the taxpayer cannot give a satisfactory explanation or the taxpayer's explanation does not appear to be satisfactory to the Excise Commissioner, such sum shall be included as income of the taxpayer in that income year under the head "Income from other sources".

(3) In case the taxpayer owns any property or takes any loan or incurs any expenditure or enters into any transaction which affects the assets of the taxpayer in any income year, then if (A+B+C) is more than (D+E+F), then an amount equal to (A+B+C)-(D+E+F) shall be included as income under the head of “Income from other sources” of the taxpayer in that income year, where-

A= Growth in net assets,

B = actual cost incurred,

C = Other expenses from the fund other than A and B, G = Total assessed income,

E = assessed tax exempt income, and

F = Other acceptable receipts of funds other than D and E.

(4) Where a taxpayer purchases any asset other than business stock or financial assets from any person and the Excise Commissioner has reasonable grounds to believe that the price paid by the taxpayer is less than the fair market value, the difference between the price paid and the fair market value shall be treated as income of the taxpayer in the 37 [relevant income year] and shall be classified as “income from other sources”.

(5) If any amount received by a taxpayer in any income year as a result of cancellation or rescission of any contract or change or amendment in any term of the contract, such amount shall be included as income under the head of “Income from other sources” of the taxpayer in the relevant income year.

(6) If any lump sum amount is received or receivable by a taxpayer in any income year in the form of a lease or rent or premium, it shall be included as income under the head “Income from other sources” in that income year of the taxpayer.

(7) If tax is not deducted or collected at source from the money paid by a taxpayer in any income year on the acquisition of any asset in accordance with Part 7, such money paid shall be included as income under the head “Income from other sources” of the taxpayer in that income year.

(8) If any taxpayer receives any profit or benefit in any income year in view of the waiver of debt, whether it is convertible into money or not, the monetary value of such profit or benefit shall be considered as the income of the taxpayer in that income year and shall be included as income under the heading “Income from other sources”:

Provided that the provisions of this sub-section shall not apply in the following cases, namely:-

(a) Waiver of loan or interest to a natural person made by a scheduled bank or a financial institution registered under section 38 [ Finance Companies Act, 2023 (Act No. 59 of 2023)];

(b) Profit or benefit not exceeding 10 (ten) lakh taka due to any margin loan or waiver of interest arising therefrom by a merchant banker and portfolio manager or stock broker registered under the Bangladesh Securities and Exchange Commission Act, 1993 or the rules made thereunder against the investment of any securities traded on the stock exchange by an individual taxpayer.

(9) If in any income year the taxpayer receives any money by winning in lottery, word game, card game, online game or any other similar game, such receipt shall be included as income under the “Income from other sources” heading of the concerned taxpayer in that income year.

(10) In case any company not listed on the stock exchange receives paid-up capital in cash from any shareholder in any income year other than by bank transfer, then such paid-up capital shall be included as income under the head of “Income from other sources” of the company taxpayer in that income year:

Provided that this provision shall not apply if any asset or service other than cash is accepted as paid-up capital under the Companies Act, 1994 (Act No. 18 of 1994).

(11) Where a company taxpayer borrows any amount from any person in any manner other than through a bank account, the amount shall be treated as income of the taxpayer in the year in which the loan was received and shall be included in the income under the head “Income from other sources”:

Provided that where any loan or part thereof referred to in this sub-section is repaid in any subsequent income year, the amount so repaid shall be excluded in computing the income of that subsequent income year.

(12) In case a company taxpayer purchases one or more motor cars or jeeps directly or on hire and the value of any motor car or jeep exceeds 10 (ten) percent of its paid-up capital including reserves and accumulated profits, then 50% (fifty percent) of the amount exceeding such 10% (ten percent) shall be included as income under the head of “Income from other sources” of the taxpayer in that income year.

(13) Where a taxpayer receives from another person any amount exceeding 5 (five) lakh taka as an advance, loan, 39 [***] or any other type of deposit in any manner other than crossed cheque or bank transfer, the amount so received shall be included as income under the head of “Income from other sources” of that taxpayer in the income

year in which the advance, loan, 40 [***] or any other type of deposit was received: Provided that nothing in this sub-section shall apply in the following cases:

(a) if such money is received from a spouse, parent or child and it is shown in the return of the

donor and recipient;

(b) Any deposit accepted by a bank, financial institution and NGO Affairs Bureau or any organization registered with the Microcredit Regulatory Authority.

(14) In case a taxpayer who is not engaged in real estate business purchases construction materials for the construction or repair of a house property or part thereof and does not pay for it within 2 (two) income years following the end of the income year to which such purchase relates, then it shall be included as income under the “Income from other sources” heading of the taxpayer in the income year following the end of the said 2 (two) income years.

42 [***]

Allowable deductions in computing income from other sources

68. (1) Subject to the provisions of this Act, in computing the income of a person in any income year under the head “Income from other sources”, such expenditure incurred by that person solely for the purpose of earning the income in question, and not being capital or personal expenditure, shall be allowable as expenditure.

(2) No expenditure of any kind shall be allowed in the computation of income under any other sub- section of section 67 except sub-sections (5) and (6) of section 67.

(3) In approving expenditure under sub-section (1), the reasonableness of the expenditure shall be considered.

Separation not allowed in some cases

69. (1) If an expenditure is allowed in whole or in part against any asset under this Chapter in any income year, it shall not be allowed again against the same asset.

(2) The provisions of section 55 relating to limitations on the approval of expenditure shall apply to such cases of this Chapter.

CHAPTER 9

Loss adjustment and drawdown

Loss adjustment and drawdown

70. (1) Subject to the provisions of sub-section (2), the loss assessed in any one sector in any tax year may be adjusted against the income of another sector.

(2) Any loss mentioned in the following table shall not be adjusted against income from any other source or category except that source or category, namely:-

Table

Serial No.	Source or sector of income	How to adjust
(1)	(2)	(3)
1 .	Capital loss	Adjustments can only be made with capital gains .
2 .	Business loss	It can only be adjusted with income from business .
3 .	Loss in speculation	Only income from speculative business can be adjusted .

4 .

Losses in tobacco products business

Only income from tobacco products can be adjusted .

(3) No adjustment or offset shall be made for losses from any source or sector to which tax is exempted, reduced rate of tax or 43 [under sub-section (2) of section 163] minimum tax is applicable.

(4) The assessed loss of a firm or partnership may be adjusted only against the assessed income of that firm or partnership and may not be adjusted against the income of any partner of that firm or any member of the partnership.

(5) If the loss assessed in any sector in any tax year cannot be fully reconciled with the income of any other sector or source in that year, the unaligned loss may be reconciled in the next 6 (six) tax years.

(6) Subject to the Eighth Schedule, where a person succeeds in a business or profession in any way other than by inheritance, the successor shall not be entitled to set off or offset the losses of the predecessor against any of his own income.

Depreciation allowance deduction

71. (1) If any depreciation allowed under this Act cannot be fully charged as an expense against the gross income of any tax year, it shall be added to the depreciation of the next tax year.

(2) If any depreciation allowance is disallowed due to non-compliance with any provision of this Act, the consequences thereof shall not be pursued.

(3) Before charging allowance for accumulated depreciation, an adjustment for accumulated losses shall be made.

(4) The approved depreciation allowance shall be carried forward until it is fully adjusted.

CHAPTER TEN

Accounting system

Accounting system

72. (1) Subject to the other provisions of this Act, the income of a person shall be computed in accordance with the accounting system regularly applied.

(2) Where a person considers that any change in the method of calculation is necessary, that person may apply to the Excise Commissioner for the proposed change and on receipt of such application the Excise Commissioner may approve the necessary changes to clearly reflect the income of the taxpayer.

(3) The Board may, by rules, prescribe the accounting methods and other verification criteria for any business, or any class of business, or any other source, or income from any source.

(4) Without prejudice to the foregoing provisions, a company shall maintain its accounts and prepare financial reports in accordance with International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and the relevant laws in force in Bangladesh.

Audited financial statements submitted by companies, etc.

73. 44 [Any person other than an individual and a Hindu undivided family] and any person deriving income from a long-term contract shall furnish a return of income certified by a chartered accountant for the year of income and a copy of 45 [financial statements] to the effect that-

(a) Accounts have been maintained and returns have been prepared and submitted in accordance with International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and relevant laws in force in Bangladesh for the said tax year;

(b) the criteria prescribed by the Board from time to time have been followed; and

47 [Provided, however, that this provision shall not apply in the following cases, namely:-

(i) Any firm, trust, association of persons, foundation, society and cooperative society having a gross receipts not exceeding 5 (five) crores of taka;

(ii) Any educational institution which is engaged only in primary and pre-primary education.]

Accounting methods for long-term contracts

74. (1) Where a person is classified as 'income from business' and follows the accrual method of accounting for computed income, the income arising from long-term contracts in any income year shall be computed on the percentage of performance method.

(2) The percentage of completion of a long-term contract in any fiscal year shall be determined by comparing the total cost allocated to the contract and the costs incurred before the end of that fiscal year with the estimated total contract cost determined at the beginning of the contract.

(3) For the purposes of this section,-

(a) "Long-term contract" means a contract for the production, installation or construction of goods, or the performance of services relating to each contract, which is not completed within 48 [years] from the date of commencement of work under the contract, but all other contracts other than such contracts which shall be completed within approximately 6 (six) months from the date of commencement of work under the contract;

(b) "Percentage of completion method" means the generally accepted accounting principle under which revenue and expenses under long-term contracts are recognized at the stage of completion of the contract as amended under sub-section (2).

Incomplete or incorrect calculations, etc.

75. (1) Nothing in this Chapter shall limit the power of the Income-tax Authority to reject any return, statement or document furnished by a taxpayer, or any claim made in the course of an audit or assessment proceeding, if the same is not verifiable.

(2) Where no conventional method of accounting has been followed, or the Excise Commissioner is not satisfied as to the correctness or completeness of the taxpayer's accounts, or the taxpayer's accounts have not been prepared and maintained in accordance with the provisions of section 73, the Excise Commissioner shall assess the taxpayer's tax in such manner as he considers appropriate.

PART 6

Exemptions, deductions and tax holidays

CHAPTER ONE

Exemptions, reductions and exclusions

Tax exemption 76. (1) The Board may, by notification in the Official Gazette, grant exemption from tax to any person or any class of persons.

(2) Where any person has been granted exemption from tax under any law or any other legal instrument deemed to be a law other than this Act, then, notwithstanding anything contained in the other law or legal instrument, such provision shall not have effect unless the person has been granted exemption from tax by a notification issued under sub-section (1).

(3) The Board may, by notification under this section, cancel any tax exemption.

(4) No tax exemption under this Act shall be granted on a geographical basis.

(5) Notwithstanding anything contained in Part 6 and the other provisions of this Act, no person shall be exempt from tax under this Act in any tax year if he fails to comply with the following conditions, namely:-

(a) Filing the return by the tax day; or

(b) filing of return in compliance with the provisions of sections 166 and 171; or

(c) deduction, collection, deposit of tax at source or filing of returns in respect thereof and compliance with the provisions of Part 7 ; or

49 [(d) Receiving all types of receipts and income from any tax exempt sector through bank

transfer:

Provided that this provision shall not apply in the following cases, namely:—

(i) The receipt is accounted for as “Income from Agriculture” and the total amount of receipt in any income year does not exceed 1 (one) crore taka; or

(ii) any property is acquired as a gift under clause (34) of Part 1 of the Sixth Schedule;]

(6) In computing the income from any source exempt from tax or the income of a person, any expenditure not allowed under section 55 shall be deemed to be the income from that source or the income of the person, as the case may be, and tax shall be payable on that income at the regular rate.

50 [(7) Notwithstanding anything contained in any other provision of this Act, a person exempt from tax may surrender his tax exemption in whole or in part and pay tax at the regular rate.

(8) Any person who has been exempted from tax for a period specified by law in respect of income from any source shall not be exempted from tax again in respect of income from such source in any other manner or for any other period and such person shall not be exempted from tax even if he is reorganised by any merger, demerger or acquisition:

Provided that the provisions of this sub-section shall not apply where the existing period of any tax exemption is extended by any provision of law or by any notification.]

Deducted from gross income

77. (1) The income earned by any person mentioned in Part 1 of the Sixth Schedule shall not be included in the computation of the total income of that person in that income year, but it shall be included in the computation of the source of funds for that income year subject to the following conditions, namely:-

(a) The income must be properly shown in the relevant column, excluding it from the total income of the return; and

(b) The source and amount of income must be filed in detail along with the return.

(2) The amount of donation made by any person under Part 2 of the Sixth Schedule shall be excluded from the total income of that person at the time of computing his tax liability, subject to the following conditions, namely:-

(a) the said grant is reflected in the return or statement or the documents attached to the return;

(b) the total amount of the grant given under Part 2 of the Sixth Schedule does not exceed 10% (ten percent) of the total income shown before the grant of the said person;

General tax relief on certain investments and expenses

78. Subject to the provisions of this Act and subject to the limits, conditions and qualifications specified in Part 3 of the Sixth Schedule, a resident natural person taxpayer and a non-resident Bangladeshi natural person taxpayer shall be entitled to tax relief from the tax applicable on the total income in any tax year as follows:

(a) 0.03 × 'a'; or

(b) 0.15 × 'b'; or

'A' = Total income calculated after deducting tax exempt income, income subject to reduced tax rate and income subject to minimum tax, and

'B' = The total amount of investment and expenditure of the taxpayer as per Part 3 of the Sixth Schedule in any income year.

Exemption of certain income of cooperative societies

79. Income earned by a co-operative society from the following activities shall be exempt from tax, namely:-

(a) Crop production;

(b) operation of cottage industries;

Explanation.- For the purposes of this section, "cottage industry" means an undertaking, not registered as a joint stock company, where-

(a) The business owner is an investor, full-time employee, and genuine entrepreneur;

(b) The capital invested in plant, machinery and equipment of the business establishment does not exceed 25 (twenty-five) lakhs taka at any time during the income year;

(c) The number of workers working in the business establishment, including the owner and his family members, does not exceed 15 (fifteen).

CHAPTER TWO

Averaging

Averaging 80. (1) If the total income of a member of a partnership or a partner of a firm includes taxable share income arising from the partnership or, as the case may be, the firm, tax calculated at the average rate on such share income shall not be payable.

(2) The tax shall be calculated at an average rate according to the following formula, namely:- T = A × (B/C), where-

T = tax at average rate,

A = Tax calculated on total income ( including share income of firms or partnerships),

B = Share income received from a firm or partnership,

C = Total income including share income received from the firm or partnership.

CHAPTER THREE

Tax holiday

Income of an approved tax exempt entity

81. (1) Subject to the provisions of this Act, income included in the head of 'Income from Business' earned by any approved tax exempt entity shall be eligible for tax exemption in whole or in part under Part 4 of the Sixth Schedule and this Chapter, subject to the limits, conditions and qualifications prescribed for a specified period.

(2) If any income tax exemption is availed under sub-section (1), it shall not be included in the total income of the taxpayer, but it shall be shown in the relevant part of the return.

(3) An approved tax exempt entity may be granted tax exemption under sub-section (1) subject to the following conditions, namely:-

(a) The entity is owned and operated by a person who:

(i) any statutory body established by or under law, the head office of which is situated in Bangladesh;

(ii) a company as defined in the Companies Act, 1994 (Act No. 18 of 1994) and having its registered office in Bangladesh, the purchased or paid-up capital of which on the date of commencement of commercial production is not less than 20 (twenty) lakhs of Taka;

(b) the entity has not been formed by separation from, or by reorganization or re-merger of, any business already in existence;

(c) any factory, machinery, equipment or any other important immovable property if it has not been previously used by any other entity in Bangladesh;

(d) The said entity-

(i) has received TIN;

(ii) has maintained accounts in accordance with the provisions of this Act;

(e) Maintained accounts independently and separately.

Explanation.- For the purposes of this section, “approved tax-exempt entity” means an entity in respect of any income year which has income from business and which-

(a) has been approved by the Board for partial or complete tax exemption under this Chapter;

(b) The tax exemption or tax reduction has been approved for the relevant income year.

Tax Exempt Entity Approval by the Board

82. (1) For availing tax holiday benefits, a business entity shall submit an application in the manner prescribed by the Board, within 51 [not more than 6 (six) months] of the commencement of its commercial activities .

(2) The Board shall, by written order, decide on the application submitted under sub-section (1) within 60 (sixty) days from the date of receipt of the application.

(3) If the Board fails to give a decision within the time limit mentioned in sub-section (2), the application for tax holiday shall be deemed to have been provisionally granted and, until the Board gives a decision in that regard, the said business entity shall be deemed to be a tax holiday entity.

(4) The Board shall not reject any application without giving the applicant a reasonable opportunity of being heard.

(5) If any applicant is aggrieved by the decision given by the Board under sub-section (3), the applicant may appeal to the Board within 4 (four) months of receipt of the decision and the Board may reconsider the previous order and issue appropriate orders in consideration thereof.

(6) Without prejudice to the provisions of sub-section (1), the Board may, for the purpose of ensuring tax compliance of tax exempt entities, grant and review approvals under this section or make rules on any matter as it may consider appropriate.

Transactions with affiliated entities

83. (1) Where an approved tax exempt entity is involved in a transaction with any of its associated entities and if the Excise Commissioner is satisfied that—

(a) the transaction was not at open market price; and

(b) such transactions have resulted in the income of any associated entity being less than the actual income in any income year,

In that case, the amount of income under-calculated for the associate entity will be considered as income of the entity receiving the approved tax holiday and will be classified under the "Income from other sources" heading for that income year.

(2) For the purposes of this section,-

(a) An entity shall be considered as an associate of an approved tax-exempt entity if:

(i) an entity participates directly or indirectly, or through one or more intermediaries, in the management or control or capital of another entity; or

(ii) the same person or persons, including spouses and descendants, participate, directly or indirectly, or through one or more intermediaries, in the management or control or capital of both entities; or

(e) An entity directly or indirectly controls shares carrying more than 25% (twenty-five percent) of the voting power of another entity; or

(iv) the same person or persons, including spouses or descendants, control shares carrying more than 25% (twenty-five percent) of the voting power in both entities; or

(e) Two entities are members of the same group.

(b) "Open market price" means the price agreed upon between two parties in the open market;

Calculation of income of an approved tax exempt entity

84. (1) The income of an approved tax exempt entity shall be computed separately from that of any other business.

(2) The income of an entity granted tax exemption shall be computed in the same manner as income under the category of 'Income from Business'.

(3) In computing the income from the business of an approved tax-exempt entity, only the general depreciation allowance mentioned in Part 1 of the Third Schedule shall be applicable.

(4) The loss calculated by an entity granted tax exemption for any income year shall not be adjusted against the profit of any other entity or sector of the taxpayer which is not granted tax exemption.

(5) Tax holiday benefit shall not be applicable to the income arising from the disapproval of the said entity under section 55 and such income shall be taxed at regular rates.

Tax exemption cancellation or disapproval

85. (1) Where it appears from any proceedings taken under this Act that any approved tax-exempt entity has failed to comply with any of the conditions set out in this Chapter, the Excise Commissioner shall not grant the exemption to the approved tax-exempt entity and may determine the tax payable in the regular manner and at the rate for that income year.

(2) An entity granted the approved tax holiday benefit may file a written application with the Board against the order cancelling such benefit within 1 (one) year from the date of approval of such order and upon receipt of such application, the Board may issue any appropriate order in its consideration.

(3) Notwithstanding anything contained in this Chapter, the Board may, in the public interest, by notification in the Official Gazette, revoke or suspend in its entirety any exemption granted under this section.

PART 7

Tax payment

CHAPTER ONE

Tax deduction from resident

Tax deduction at source from

86. (1) The person responsible for paying any service money to a recipient under the head of "Income from employment" shall, at the time of payment of such money, deduct tax at the average rate of tax applicable on the recipient's 52 [estimated] total income under that head.

employment income

53 [***]

(3) Where any Government officer has acted as a Disbursing and Disbursing Officer (DDO) or has prepared or signed a bill for himself or any other Government subordinate for drawing "income from service" from the Government or any other authority, he shall deduct tax at the average rate of tax applicable to the estimated total income of that income year if, at the time of preparing or signing the bill, the annual salary payable for that income year exceeds the tax-free limit.

(4) At the time of any deduction under sub-sections (1) and (3), an amount equal to the surplus or deficit may be increased or decreased to adjust for any previous surplus or deficit.

(5) Where tax has already been paid at source under this section, including advance tax payable under this Act, and the tax chargeable on the probable total income of an employee is considered to be close to the amount of tax so payable, the Excise Commissioner may, on the basis of an application filed by the employee and the evidence furnished, issue a certificate for the remaining income year to the effect that no tax shall be deducted from the employee or that tax shall be deducted at a lower rate.

Tax deduction from honorarium of members of parliament

87. Any person responsible for paying any money as an honorarium to a Member of Parliament shall, at the time of payment of such money, deduct on the honorarium payable, the applicable amount of income tax at the average rate of tax applicable to the estimated total honorarium of the recipient for that income year.

Deduction at source from money paid to Participation Fund, Welfare Fund and Workers Welfare Foundation Fund

54 [88. Notwithstanding anything contained in any law existing in Bangladesh, the person responsible for making payments to the Participation Fund, Welfare Fund and Workers Welfare Foundation Fund under section 234 of the Labour Act, 2006 shall deduct tax at the rate of 10% (ten percent) at the time of payment or credit of such payments.]

Tax deduction from money paid to contractors, suppliers, etc.

89. Where any money is paid by a particular person to a resident for the following reasons:

(a) the execution of any contract other than a contract for the provision or supply of services referred to in any other section of Part 7;

(b) Supply of goods;

(d) Printing, packaging or binding,

In that case, the person responsible for the said payment shall deduct tax at the rate prescribed, not exceeding 10% (ten percent), on the base price at the time of such payment or credit.

Deduction from payment for services

90. If a specific amount of money is paid to a resident by a specific person for a service, the person responsible for paying the money shall deduct tax at the rate specified at the time of payment, not exceeding 20% (twenty percent).

Deduction from money paid for intangible property

Tax deduction from advertising

91. The person responsible for making payment for royalty, franchise or license, trademark, patent, copyright, industrial design, plant variety, geographical indication or any other property or intangible or intangible thing relating to intellectual property shall deduct tax at the time of such payment or credit at the rate specified in the following table, namely:-

Table

Payment Description	Tax deduction rate
(1)	(2)
If the base price does not exceed 25 ( twenty-five ) lakhs taka	10 % (ten percent)
If the base price exceeds 25 ( twenty -five ) lakhs taka	12 % (twelve percent)

92. Tax shall be deducted at the rate of 5% (five percent) on the amount payable or paid by a specified person to a newspaper, magazine, private television channel, private radio station or any other person (other than a media buying agent) for advertising, promotion or any other purpose or

income from media

on the date of payment or deposit in the recipient's account.

Deduction from money paid to an actor, actress, producer, etc.

93. (1) The person responsible for paying part or all of the money for the purchase of any film, drama or television or radio program shall deduct tax at the rate of 10% (ten percent) on the money paid or payable at the time of payment or at the time of depositing the money into the recipient's account.

(2) A person shall deduct tax at the rate of 10% (ten percent) on the amount payable or paid to any other person for acting in a film, drama, advertisement or any television or radio program, at the time of payment of part or full amount to another person or at the time of depositing it into the recipient's account.

Deduction or collection of tax at source from commission, discount, fee, etc.

94. (1) Where any company or firm makes any payment or any sanctioned sum to any distributor, by whatever name called, or any other person, for the supply or marketing of goods or services, by way of commission, rebate, fee, incentive or efficiency allowance or any other incentive relating to efficiency or any other payment of money of such nature or benefit of the same nature, the person responsible for making the payment shall deduct or collect tax at the rate of 10% (ten percent) on the amount payable or the sanctioned sum payable or the monetary value of the sanctioned benefit, as the case may be.

(2) When a company or firm makes any payment to a person involved in the marketing or sale of its products, the person responsible for making the payment shall deduct tax at the rate of 1.5% (one-point-five percent) on the amount received for the marketing or sale of the products.

(3) Any company or firm other than an oil marketing company, which –

(a) any distributor; or

(b) any other person under the contract,

- sells goods to the said company or firm 55 [or any other person] at a price less than the retail price fixed by him, shall collect tax from the said distributor or such other person at the rate of 5% (five per cent) on the value equivalent to B × C, in which case-

B = the selling price of the company or firm to the distributor or any other person;

C = 5% (five percent):

Provided that, at the time of sale of the products of the cigarette manufacturing company or firm, the said distributor or any other person shall collect tax at the rate of 3% (three percent) of the difference between the sale price of the products to the distributor or any other person and the retail price determined by the said company or firm.

Tax collection from travel agents

95. (1) Notwithstanding anything contained in the other provisions of this Act, any person responsible for making a payment to a resident by way of commission or discount or any other benefit, however called, shall, at the time of making such payment, deduct or collect advance tax at the rate of 0.3% (zero decimal three per cent) on the total amount of money convertible by way of sale of passenger tickets or provision of facilities for the carriage of goods in cargo aircraft.

(2) If any amount is paid in excess of the incentive bonus, performance bonus or any other benefit, by whatever name it may be called, by way of ticket sale or cargo carriage referred to in sub-section (1), the person responsible for the payment shall, at the time of payment of such amount, deduct an amount equal to A/B x C, where-

"A" = incentive bonus, performance bonus or any other benefit mentioned in this sub-section,

"B" = the amount of commission or discount or any other benefit mentioned in sub-section (1), and

"C" = Amount of tax at source on commission or discount or any other benefit mentioned in sub- section (1).

(3) The price or charge paid for any initial fee, travel tax, flight security insurance, security tax and airport tax shall not be included in the calculation of the price of the ticket or charge.

Deduction from money received as commission on loan

96. The person responsible for opening a letter of credit for the purpose of importing goods for himself or any other person shall, while collecting the commission on the letter of credit, deduct 5% (five percent) tax from the amount received as commission.

56 [Deduction from money paid

97. (1) Where a bank or financial institution, under a local letter of credit or any other financing agreement not being a financing arrangement under sub-section (2), provides any credit facility to a person, hereinafter referred to as A, for the purchase of any goods in Bangladesh from another

against local bonds]

person, hereinafter referred to as Person B, for the purpose of resale after business or processing or conversion, the said bank or financial institution shall, at the time of payment or credit to Person B, deduct tax at the rate of 3% (three percent) on the amount paid or borrowed by Person A for the purchase.

(2) Where a bank or financial institution provides a credit facility to a distributor under such financing arrangement and any person, hereinafter referred to as Person C, receives any money from the bank or financial institution against the sale or invoice of goods to any of its distributors, hereinafter referred to as Person D, the bank or financial institution shall deduct tax at the rate of 1% (one percent) on the amount paid or lent for the goods invoiced in favour of Person D at the time of payment or lenghtening of the credit to Person C.

57 [(3) In the case of opening or making local credit notes or any other financing agreement for the purchase of all kinds of fruits and computers or computer components, the bank or finance company shall deduct tax at the rate of 2% (two percent) on the amount paid or borrowed by the bank or finance company.]

58 [(4) In the case of opening or making local credit notes or any other financing agreement for the purchase of paddy, wheat, potato, onion, garlic, beans, chickpeas, lentils, ginger, turmeric, dry chillies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, nuts, cloves, bay leaves, jute, cotton and yarn, the bank or finance company shall deduct tax at the rate of 1% (one percent) on the amount paid or borrowed by the bank or finance company.]

Explanation.- For the purposes of this section, the term 'distributor' shall mean a person who carries out the activity of supplying processed products manufactured by another person to the ultimate purchaser directly or through any other intermediary.

Tax deduction on payments made by cellular mobile phone operators

98. The Chief Executive Officer of a cellular mobile phone operator company shall deduct tax at the rate of 59 [20% (twenty percent)] of the amount of any income distribution or any license fee or any other fee or charge, by whatever name called, deposited or paid to the Regulatory Authority, whichever occurs first.

Tax deduction from any excess payment of life insurance policy premium

99. Any person liable to pay any amount in excess of the premium paid for a life insurance policy taken out with a life insurance company to a resident shall deduct tax at the rate of 5% (five per cent) on the excess amount paid to the policyholder:

Provided that no tax will be deducted in the event of the death of the policyholder.

Deduction from insurance commission money

100. Any person responsible for making any payment for any business connected with the business of soliciting insurance or collecting insurance by way of commission or any other means of remuneration or reward, including the business of maintaining, renewing or revitalizing insurance policies, shall deduct tax at the rate of five percent (5%) on the said amount at the time of depositing the said amount in the account of the recipient or at the time of payment of the said amount in cash or by cheque or draft or by any other means, whichever occurs earlier.

Tax deduction from general insurance company surveyors' fees, etc.

101. The person responsible for paying a resident a fee or remuneration for conducting a survey for the purpose of settling an insurance claim of an insurer shall, at the time of payment, deduct income tax at the rate of 15% (fifteen percent) on the total amount.

Tax deduction from savings deposits and fixed deposits, etc.

102. 60 [(1) Notwithstanding anything contained in this Act or any other law in force in Bangladesh, if any person carrying on any banking, insurance, leasing, financing, postal and banking, co- operative or mobile financial services activity under any law of Bangladesh, or any person paying interest or profit against any deposit, pays any interest or profit to any other resident person, the person responsible for paying the interest or profit shall, at the time of credit to such person or at the time of payment of the interest or profit, whichever is earlier, deduct tax at source at the rate specified in the following table and deposit it in the Government Treasury, namely:—

Table

Serial No.	Recipient type	Tax deduction rate
( 1 )	( 2 )	( 3 )

1 .

In the case of trusts , partnerships and companies

20 % ( twenty percent )

2 .

In the case of primary educational institutions , Chartered Accountants or Cost and Management Accountants or Chartered Secretaries Institute

10 % ( ten percent )

3 .

In the case of other persons not mentioned in serial numbers 1 and 2

10 % ( ten percent )

]

(2) Nothing in this section shall apply to the following cases, namely:-

(a) any interest or profit arising from any deposit pension scheme sponsored by the Government or a scheduled bank with the prior approval of the Government; or

(b) any specific recipient or class of recipients otherwise exempted from tax by the Board, by general or special order.

(3) For the purposes of this section, proof of filing of the return by the legal guardian of the minor shall be deemed to be proof of filing of the return by the minor.

[Extinct]

61 [***]

Tax deduction from resident's interest income

104. (1) Where a prescribed person pays interest on any loan or borrowing to any person other than a bank or financial institution, he shall deduct tax at the rate of 10% (ten percent) on the interest paid at the time of payment of such interest.

(2) The Board may, upon the application of the taxpayer, subject to verification, issue a written certificate to the effect that no deduction of tax shall be applicable to the amount due to the taxpayer under this section or that deduction of tax shall be applicable at a reduced rate.

Tax deduction from savings certificate profits

105. (1) Notwithstanding anything contained in any other provision of this Act or any other Act regarding the exemption of profit from tax on savings certificates purchased with money from an approved old age fund or pension fund or gratuity fund or recognized provident fund or workers' interest participation fund, any person responsible for paying the profit from the savings certificates shall deduct tax at the rate of 10% (ten percent) at the time of payment of such money.

(2) If the accumulated investment in a pensioner's savings certificate in any income year does not exceed 5 (five) lakhs taka, no tax shall be deducted under this section from the profit earned from such investment.

(3) No tax shall be deducted from interest or dividends arising from foreign currency earning development bonds, US dollar premium bonds, US dollar investment bonds, Euro premium bonds, Euro investment bonds, Pound sterling investment bonds or Pound sterling premium bonds.

Tax deduction at source from interest on securities

106. Any person responsible for the issue of government securities or securities approved by the Government or the Bangladesh Securities and Exchange Commission shall deduct tax at the rate of 5% (five percent) on the payment of discount, interest or profit or on credit, whichever occurs first.

Tax deduction at source on discount on actual value of Bangladesh Bank Bill

107. Any person responsible for paying any amount for discount or deduction of the actual value of a Bangladesh Bank bill shall, at the time of payment of such amount, deduct tax at the highest rate applicable to the amount.

Tax deduction from money received for international phone calls

108. (1) Tax at the rate of 1.5% (one-point-five percent) shall be deducted on the total amount deposited through any bank in the account of the International Gateway (IGW) service provider for providing international gateway services in respect of international phone calls.

(2) The International Gateway (IGW) service operator, through which any payment in respect of international phone calls is made or any money is deposited into any account under an agreement with the Bangladesh Telecommunication Regulatory Commission (BTRC) with the Interconnection Exchange (ICX), Access Network Services (ANS), Bangladesh Telecommunication Regulatory Commission (BTRC) or any other person, shall deduct tax at the rate of 7.5% (seven point five percent) on the total amount paid or deposited under the said agreement.

(3) In case any amount is paid or deposited in exchange for provision of Interconnection Exchange (ICX) services or Access Network Services (ANS) in respect of outgoing international calls, tax shall be deducted at the rate of 7.5% (seven point five percent) on the amount paid or deposited.

(4) Notwithstanding anything contained in sub-section (1), (2) or (3), where the Board, on application by any person, grants any certificate in writing, such person shall be exempt from income-tax or shall be liable to pay tax at a rate lower than that specified in this section and the person liable for payment of such amount shall pay the amount as follows:

(a) excluding tax deductions; or

(b) Subject to tax deduction at the rate specified in the certificate.

Tax deduction at source from rent

109. (1) Where a particular person-

(a) any house property;

(b) Hotel or guest house;

(d) Any reservoir other than a government reservoir,

In case of renting, the said person shall deduct tax at the rate of 5% (five percent) on the rent paid for the said property at the time of payment of the rent.

(2) In cases where, after assessment of the tax for the relevant year, it is found that no tax is payable by the owner of the house property or the amount of tax paid is more than the tax payable, the amount deducted shall be refunded at the following rates:-

(a) if no tax is payable, the entire portion; or

(b) If the amount of tax deducted is more than the tax payable, then by the amount of the excess.

(3) Where, on an application made in this behalf, the Excise Commissioner issues a certificate in good faith in the prescribed form to the effect that the owner of the house property has no assessable income in that year or that it is exempt from income-tax subject to the provisions of this Act, then tax shall not be deductible on the income derived from the rent of that house property until the certificate issued under sub-section (1) is cancelled.

(4) For the purposes of this section, "rent" means any payment, by whatever name called, made by way of a lease, tenancy or any agreement or arrangement for the use of any building including any furniture, goods and land.

Tax deduction for services provided by convention halls, conference centers, etc.

110. Where any payment is made by any person to any other person for the rental or use of any convention hall, conference centre, room, or as the case may be, hall, hotel, community centre or any restaurant, the person responsible for such payment shall deduct tax at the rate of 5% (five percent) on the full amount paid for such service at the time of such payment.

Tax deduction at source from compensation for acquisition of property

111. The person responsible for paying any compensation to the owner of any immovable property for the acquisition thereof shall, at the time of payment of the compensation, deduct tax at the following rates:-

(a) 6% (six percent) of the total amount received as compensation if any immovable property is located in a City Corporation, Municipality or Cantonment Board area;

(b) 3% (three percent) of the total amount received as compensation if any immovable property is located outside the area of a City Corporation, Municipality or Cantonment Board.

Tax deduction at source on cash export subsidies

112. Any person responsible for paying any amount of money by way of cash export subsidy to an exporter for the purpose of promoting exports shall, at the time of payment or deposit of the money, deduct or collect advance tax at the rate of 10% (ten percent) of the total amount payable.

[Extinct]

62 [****]

Tax deduction 114. (1) Notwithstanding anything contained in this Act, the Bangladesh Power Development

against electricity

Board or any other person engaged in the distribution of electricity

63 [or any such specified

purchase

person purchasing electricity from a captive power producer] shall collect, deduct or pay tax at the

rate of 6% (six percent) of the amount payable at the time of payment for the purchase of electricity.

(2) Where the income of a person from the production of electricity for any income year is exempt from tax under any provision of this Act, the Board may, on the application of the taxpayer, certify that the income for that income year shall be subject to collection or deduction without any collection or deduction or to collection or deduction at a proportionately reduced rate.

Tax deduction from income received by landowner from real estate developer

115. Where any person engaged in the business of real estate or land development pays any money to the owner of the land, whether as signing money, subsistence money, house rent or any other money for the purpose of developing land owned by any business entity, under the authority of a power of attorney or any agreement or any written contract, by whatever name it may be called, then tax shall be deducted at the rate of 15% (fifteen percent) on the total amount paid in such manner.

Tax deduction from commission or remuneration paid to a foreign buyer's agent

116. Where, under the terms of a letter of credit or any instruction, an exporter pays money for the export of goods through a bank, or any amount of money is paid by way of commission, charge or remuneration on behalf of an agent, representing a foreign buyer or by whatever name it may be called, the bank shall deduct or collect advance tax at the rate of 10% (ten percent) at the time of payment of the commission, charge or remuneration.

Tax deduction from dividends

117. The Chief Executive Officer (Chief Executive) of a company registered in Bangladesh or any other company, while paying any dividend to any shareholder, whether resident or non-resident Bangladeshi, shall deduct tax from such dividend,-

(a) if the shareholder is a company, then at the rate applicable to the company;

(b) If the shareholder is a person other than a company, tax shall be deducted at the rate of 10% (ten percent) if the person receiving such dividends is a Taxpayer Identification Number (TIN) holder or at the rate of 15% (fifteen percent) if the person receiving such dividends is not a Taxpayer Identification Number (TIN):

Provided that the provisions of this section shall not apply to the distribution of tax dividends of a company if such tax dividends are exempt from tax under clause 32 of Part 1 of the Sixth Schedule.

Tax deduction from income received from lottery, etc.

118. If any money is received by winning in lottery, word games, card games, online games or any other game of this nature, the person responsible for paying the money shall deduct tax at the rate of 20% (twenty percent) at the time of payment of such money.

Explanation.-For the purposes of this section, the expression "any amount" means the value of any goods or property where the said winner is paid in cash or in kind.

CHAPTER TWO

Tax deduction from non-residents

Tax deduction or collection from the income of non-residents

119. (1) Notwithstanding anything contained in the other provisions of this Chapter, subject to the provisions of sub-section (2), where a specified person or any other person in charge pays to a non-resident any amount which is taxable to that non-resident under this Act, the person making the payment shall, at the time of payment of such amount, unless he himself is liable to pay tax as an agent, deduct or collect tax at the prescribed rate not exceeding 30% (thirty per cent) on the amount paid.

(2) Where the Board, being satisfied on the basis of an application received for this purpose along with the necessary documents, issues a certificate within 30 (thirty) days of receipt of the application to the effect that a non-resident is not liable to pay any tax in Bangladesh or is liable to pay tax at a reduced rate by reason of a tax treaty or for any other reason, then the payment referred to in sub-section (1) may be made without deduction of tax or with deduction of tax at a reduced rate.

(3) The tax deducted under this section shall be deemed to be the minimum tax liability of the recipient on the income on which such tax has been deducted and shall not be adjusted against any claim.

(4) Where capital gains arise in favour of a non-resident taxpayer from the transfer of shares of a company, the person responsible for effecting the transfer of shares or, as the case may be, the authority shall not effect the transfer unless the tax payable on the capital gains has been paid.

(5) If any tax collected under this section is deposited in the name of a resident person, the tax shall be deemed not to have been collected under this section.

(6) Tax deduction at source under this section shall not be applicable on remittance of the following amounts sent to non-residents, namely:-

(a) Arbitration fees;

(b) Money sent for Hajj;

CHAPTER THREE

Tax collection at source

Tax collection from importers

120. The Commissioner of Customs or any other officer empowered in this behalf shall collect tax at source at a prescribed rate, not exceeding 20% (twenty percent), on the import value of goods.

Tax collection from manpower export

121. Director General of Manpower, Employment and Training Bureau-

(a) Manpower exporting agencies shall not be granted clearance for manpower export unless the agencies submit a copy of the tax invoice depositing 10% (ten percent) of the service charges or fees received for manpower export along with the application;

(b) No license shall be issued or renewed under Section 9 of the Overseas Employment and Immigration Act, 2013 (Act No. 48 of 2013) unless the manpower exporting agency submits a tax invoice of 50 (fifty) thousand taka along with the application submitted in this regard.

Tax collection from clearing and forwarding agents

122. The Commissioner, Customs shall collect tax at the rate of 10% (ten percent) on the commission received by the clearing and forwarding agent during the import or export of any goods by any clearing and forwarding agent approved under the Customs Act, 1969 (Act No. IV of 1969).

Tax collection from export earnings

123. (1) Any bank shall, while depositing the money received by an exporter of any product through export into the account of the exporter, deduct tax at the rate of 1% (one percent) of the total export proceeds and deposit it in the Government Treasury.

(2) Where the Board, on application, issues a certificate in writing to the effect that the income of the exporter is exempt from tax or taxable at a reduced rate under this Act, the bank shall deposit the same in the Government Treasury without any deduction or after deducting tax at the reduced rate specified in the certificate as the taxpayer for the period specified in the certificate.

Tax deduction from income

124. The person responsible for paying or depositing money remitted from abroad in exchange for the following services through fee, service charge or remuneration, by whatever name or nature,

remitted from

by revenue sharing, shall deduct tax at the rate of

64 [7.5% (seven point five percent)] on the

abroad for any service, revenue sharing, etc.

amount paid or deposited at the time of payment or deposit of the money into the account of the recipient, namely:-

(a) for any service provided in Bangladesh;

(b) for the provision of services or any work by a resident person to a foreign person;

(c) To grant permission to use any online platform for advertising or any other purpose: However, there is a condition that:

65 [(1) Money received by freight forward agent-

(i) If it is only a commission, tax shall be collected at the rate of 10% (ten percent) on that commission;

(ii) If the bill is gross or gross including commission, tax shall be collected at the rate of 2.5% (two decimal five percent);]

66 [(2) No deduction shall be made against the following amounts remitted from abroad, namely:-

(i) the amount excluded from the total income by clauses (12), (17), (21) and (33) of Part 1 of the Sixth Schedule;

(ii) Any donation or grant received by any educational or research institution.]

Collection of taxes from

transfer of property, etc.

125. 67 [(1) No registering officer responsible for the registration of a document under clauses (b),

(c) or (e) of sub-section (1) of section 17 of the Registration Act, 1908 (Act No. XVI of 1908) shall register any document unless the transferor has paid the tax at the prescribed rate.]

(2) In the case of collection of tax under this section, the rate of tax shall be-

(a) In the case of land, 1.65 (one point sixty-five percent) 20 (twenty) lakh taka per katha;

(b) Taka 1 (one) thousand per square meter in the case of any establishment, building, flat, apartment or floor space; or

(3) Nothing in this section shall apply to any of the following documents, namely:-

(a) Sale by a bank or financial institution authorized to sell mortgaged property;

(b) Mortgaged assets given to a bank or financial institution against a loan;

(c) Transfer of any property from or to any trust or special purpose vehicle formed for the purpose of issuing Sukuk approved by the Securities and Exchange Commission or the Government.

Tax collection from developers or real estate developers

68 [126. (1)the Registration Act, 1908(Act No. XVI of 1908) shall register any such document unless the tax at the prescribed rate has been paid by the developer or real estate developer.

(2) In the case of collection of tax under this section, the rate of tax shall not exceed the following rates, namely:—

a) In the case of a building, house, flat, apartment or floor space constructed or used for residential purposes, 1600 (one thousand six hundred) taka per square meter;

b) If the establishment, house, flat, apartment or floor space is not built or used for residential purposes, 6500 (six thousand five hundred) taka per square meter;

c) 5% (five percent) of the deed value in the case of land associated with the establishment, house, flat, apartment or floor space.

(3) For the purposes of this section, “developer or real estate developer” means a developer or real estate developer as defined in the Real Estate Development and Management Act, 2010 (Act No. 48 of 2010) and if any person develops his own or another’s land or constructs an establishment, house, flat, apartment or floor space on his own or another’s land by performing the functions of a developer or real estate developer; or acts as a developer or co-developer, the owner of the land or the owner of an establishment, house, flat, apartment or floor space, then he shall also be included therein.]

Tax collection from commission paid for government stamps, court fees, cartridge paper

127. Any commission, discount or fee, by whatever name called, paid in respect of the sale of Government stamps, court fees, cartridge papers or anything of a similar nature, shall be deducted at source by the person responsible for payment at the time of payment at the rate of 10% (ten percent) from the amount so paid.

Tax collection from property leases

128. The officer responsible for registration under the Registration Act, 1908 (Act No. XVI of 1908) shall not register any instrument relating to the lease of any immovable property for a period of not less than 10 (ten) years unless a tax at the rate of 4% (four per cent) on the lease value of such property has been paid by the lessee.

Tax collection from cigarette manufacturers

129. Any person responsible for the sale of band rolls to a cigarette manufacturer shall, at the time of sale of the band rolls, collect tax from such manufacturer at the rate of 10% (ten percent) of the total value of the band rolls.

Explanation.- For the purposes of this section, "manufacture of cigarettes" means the production of cigarettes by conventional or domestic methods without any mechanical assistance.

Tax collection from brick manufacturers

70 [130. (1)the Brick Making and Kiln Establishment (Control) Act, 2013(Act No. 59 of 2013) shall grant or renew such licence unless the application for the grant or renewal of such licence is accompanied by—

(i) a tax payment certificate is attached stating the size and nature of the brick kiln or, where applicable, the method and nature of brick production; and

(ii) The A-challan of advance tax paid at the rate mentioned in the table below is attached:

Table

Serial No.

Types of brick kilns

Advance tax rate ( in rupees )

( 1 )

( 2 )

( 3 )

1 .

In the case of such seasonal brick kilns not exceeding 108,000 ( one lakh eight thousand

) cubic feet in volume

80000 (

eighty thousand taka )

2 .

In the case of seasonal brick kilns exceeding 108,000 ( one lakh eight thousand ) cubic feet in volume but not exceeding 124,000 ( one lakh twenty-four thousand ) cubic feet

120000 ( One

lakh twenty thousand taka )

3 .

In the case of such seasonal brick kilns exceeding 124,000 ( one lakh twenty-four thousand ) cubic feet

160000 ( One

lakh sixty thousand taka )

4 .

In the case of brick kilns not mentioned in serial numbers 1 , 2 and 3

220000 ( Two

lakh twenty thousand taka )

(2) In case a license is issued or renewed for more than one year in any year, the advance tax at the rate mentioned in sub-section (1) shall be deposited by way of challan by 30th June of the year or years following the year of issuance or renewal of the license.

(3) In case a person who manufactures or produces bricks in any year fails to pay advance tax as per sub-section (2), then the amount of advance tax payable by that person in the following year shall be determined as per the formula A + B, where—

A = Amount of advance tax unpaid in the previous year or years, and

B = Amount of advance tax payable under sub-section (1) in the year of payment.

(4) For the purposes of this section,—

(a) “Area” means the measurement of the length, width and height inside the walls of the brick kiln;

(b) “brick kiln” means any place or structure where bricks are manufactured;

Tax collection at the time of issuance or renewal of trade license

131. Any person responsible for the renewal of a commercial license shall collect tax at the following rates for each renewal of a commercial license, namely:-

(a) 3 (three) thousand taka in Dhaka South City Corporation, Dhaka North City Corporation or Chittagong City Corporation;

(b) 2 (two) thousand taka in any other city corporation;

(d) 500 (five hundred) taka in any municipality.

Collection of taxes from the shipping business of a resident

132. The Commissioner of Customs or any other authority duly empowered shall not grant port clearance to any ship owned or chartered by a resident taxpayer carrying passengers, cattle, mail or goods unless the said resident taxpayer obtains a certificate in the prescribed manner from the concerned Excise Commissioner and pays tax at the rate of 5% (five per cent) on the total goods entering Bangladesh or being sent abroad:

Provided that, tax shall be collected at the rate of 3% (three percent) on transported goods received or to be received in exchange for services provided by two or more countries.

Tax collection from public

auction sales 133. (1) If any person sells any goods or property of a particular owner at public auction through a sealed tender, tax at the rate of 10% (ten percent) shall be collected on the total sale price before the transfer of ownership of the said goods or property or the granting of permission to exercise any right.

(2) In the case of sale of tea at public auction, tax at source at the rate of 1% (one percent) shall be collected.

(3) If any land is sold in the form of a plot through public auction, tax deduction under this section shall not be applicable.

(4) For the purposes of this section,-

(a) “sale of any goods or property” means the lease of any goods or property, lease of a water palace, a sand palace, a Sairat palace, lease of any right of any kind, octroi duties or other levies, by whatever name called, including the right to collect any lease in the name of any person, but it shall not include the sale of any plot of land;

(b) “Specified owner” means any corporation or organization including the Government or any other authority, unit, the activities or principal activities of which are authorized by any law, ordinance, order or instrument having the force of law or any entity or company authorized or established under any law in force in Bangladesh.

Tax collection from share transfer

134. The person responsible for registering the transfer of shares of a non-listed company from a resident person to another person shall not register such transfer unless the resident person making the transfer attaches with the application for registration a challan for depositing tax at the rate of 15% (fifteen percent) on the difference between the nominal value and the fair value of the shares transferred.

Explanation: For the purposes of this section,-

(a) “face value” means the price determined by the issuer and includes any additional amount if it is-

(i) is made through bank transfer; and

(ii) is properly shown in the taxpayer's income tax return;

(b) “Fair value” means the fair value determined by a professional valuer in a valuation report prepared prior to the transfer of shares;

71 [(c) “Professional valuer” means a professional valuer recognized by Bangladesh Bank or

Bangladesh Securities and Exchange Commission.]

Tax collection from transfer of securities

72 [135. (1) No person responsible for the transfer of securities of any company or fund listed on the Stock Exchange shall transfer the securities unless, before effecting such transfer, the transferor has paid the tax as follows:—

A = (B - C) × 10%, where,

A = the amount of tax payable under this section;

B = Transfer price of securities;

C = Acquisition price of securities.

(2) For the purposes of this section,—

(a) “Securities” means securities of a company or fund held by a sponsor shareholder, director shareholder or placement shareholder of that company or fund;

(b) "Transfer" means all types of transfers other than gifts between parents and children and between husband and wife;

(i) the closing price of the securities on the day of consent or approval of the transfer by the Bangladesh Securities and Exchange Commission or the Stock Exchange; or

(ii) If there is no transaction of securities on the day of approval by the Bangladesh Securities and Exchange Commission or the Stock Exchange, the closing price of the securities on the day on which the last transaction took place.

Tax collection from transfer of shares by stock

136. (1) The Chief Executive Officer of the Stock Exchange shall deduct tax at the rate of 15% (fifteen percent) on any dividend and receipt arising from the transfer of shares of a shareholder of a Stock Exchange established under the Exchanges Demutualization Act, 2013 (Act No. 15 of

exchange shareholders

2013) at the time of transfer of shares, declaration of shares or exchange of such shares, whichever occurs earlier.

(2) For the purpose of calculating the dividend and proceeds of a share under sub-section (1), the acquisition price of the share before the commencement of the Exchanges Demutualization Act, 2013 (Act No. 15 of 2013) shall be taken as the acquisition price of the said share.

Tax collection from members of the stock exchange

137. The Chief Executive Officer of the Stock Exchange shall collect tax at the rate of 0.05% (zero decimal zero five percent) on the payment of the transaction price of shares, debentures, mutual funds or securities issued by a member of the Stock Exchange:

Provided that the provisions of this section shall not apply to the transfer of any listed sukuk and bonds.

Tax collection from commercially operated motor vehicles

138. (1) Subject to the provisions of sub-section (2), the person or authority responsible for the registration or renewal of fitness of a motor vehicle shall not register or renew the fitness of a motor vehicle unless an advance tax challan paid at the rate specified in the following table is submitted with the application for registration or renewal of fitness of the motor vehicle, namely:-

Table

Serial No.	Car type	Advance tax ( Rs. )
(1)	(2)	(3)
1 .	Bus with more than 52 seats	16 (sixteen) thousand
2 .	This bus has no more than 52 seats .	11 (eleven) thousand 500 (five hundred)
3 .	Air- conditioned bus	37 (thirty- seven) thousand 500 (five hundred)
4 .	Double -decker bus	16 (sixteen) thousand
5 .	Air- conditioned minibus / coaster	16 (sixteen) thousand
6 .	Non- air - conditioned minibuses / coasters	6 (six) thousand 500 (five hundred)
7 .	Prime mover	24 (twenty- four) thousand
8 .	Trucks , lorries or tank lorries with a payload capacity of more than 5 ( five ) tons	16 (sixteen) thousand
9 .	1. Trucks , lorries or tank lorries with a payload capacity exceeding 5 ( one and a half ) tons but not exceeding 5 ( five ) tons .	9 (nine) thousand 500 (five hundred)
10 .	1. Trucks , lorries or tank lorries with a payload capacity not exceeding 5 ( one and a half ) tons	4 (four) thousand
11 .	Pickup van , human hauler , maxi or auto rickshaw	4 (four) thousand

12 .

Air- conditioned taxicab

11 (eleven)

thousand 500 (five hundred)

13 .

This type of taxicab is not air- conditioned .

4 (four) thousand

(2) In cases where registration or fitness is granted for more than one year, the tax payable under sub-section (1) shall be collected on or before the 30th day of June of the year or years following the year of registration or fitness renewal.

(3) In case any person fails to pay advance tax in any year under sub-section (2), the amount of advance tax payable by such person in the following year shall be determined on the basis of the formula A+B, where-

A = Amount of advance tax unpaid in the previous year or years, and

B = Amount of advance tax payable under sub-section (1) in the year of payment.

(4) Advance tax shall not be collected under sub-section (1) if the motor vehicle belongs to the following persons or institutions, namely:-

(a) Government or local authority;

(b) any project, program or activity under the government or local government;

(c) any foreign diplomat, any diplomatic mission in Bangladesh, offices of the United Nations and its member organizations;

(d) any foreign development partner of Bangladesh and its affiliated office or offices;

(e) Any educational institution under the government's MPO (Monthly Payment Order);

(f) Government university;

(g) Gazetted war wounded freedom fighters; or

(h) Any institution receiving a certificate from the Board stating that no advance tax is payable.

Tax collection from boat operations

139. (1) The person in charge under the Inland Shipping Ordinance, 1976 (Ordinance No. LXXII of 1976) shall not issue a survey certificate to any vessel under section 9 of the said Ordinance or renew a survey certificate under section 12 unless the application for the issue of a survey certificate or for the renewal of a survey certificate is accompanied by a challan for the deposit of advance tax paid at the rate specified in the following table, namely:-

Table

Serial No.	Description of the vessel	Advance tax ( Rs. )
(1)	(2)	(3)
1 .	In the case of vessels engaged in passenger transport on inland waterways	Based on the capacity of passenger transportation during the day , 125 ( one hundred and twenty-five ) taka per passenger .
2 .	In the case of cargo , containers ( multipurpose ) or coasters engaged in the transport of goods on inland waterways	Based on the capacity of transporting goods , 170 ( one hundred and seventy ) taka per gross tonnage .

3 .

In the case of dump barges engaged in the transport of goods on inland waterways

Based on the capacity of transporting goods

, 125 ( one hundred and twenty-five ) taka per gross tonnage .

(2) Where a survey certificate is issued or renewed for more than one year, the tax payable under sub-section (1) shall be collected on or before the 30th day of June of any year following the year of issue of the survey certificate or renewal of the survey certificate.

A = Amount of advance tax unpaid in the previous year or years, and

B = Amount of advance tax payable under sub-section (1) in the year of payment.

(4) In this section, the expressions “Inland Ship” and “Inland Water” shall mean “Inland Ship” and “Inland Water” respectively as defined in the Inland Shipping Ordinance, 1976 (Ordinance No. LXXII of 1976).

CHAPTER FOUR

General provisions

Definition 140. Definition.-For the purposes of this Part,

(1) "Person responsible for payment" means-

(i) Any payment made by the employer himself or, where the employer is a local authority, company or institution, such authority, company or institution and its chief officers shall also be included in the income under the head of "income from employment";

(ii) in the case of any payment under the heading "Income from financial assets", any body, company or other institution issuing such financial assets or the principal officer of such body, company or institution; and

(e) in the case of any other payment of money treated as taxable income under this Act or in the case of any payment of money to which tax is deducted or collected at source under this Part, the payer himself or, if the payer is a company or any other institution, the chief officer thereof shall also be included;

(2) “Agreement” shall include sub-agreement, sub-sub-agreement, subsequent agreement, any agreement or arrangement by whatever name it may be called;

(3) “Specified person” means-

(a) any company, firm, association of persons, trust or fund;

(b) Public-Private Partnership;

(d) any hospital, clinic or diagnostic center;

(e) Any e-commerce platform with an annual turnover exceeding one crore taka, which is not a specific person, by whatever name it may be called;

(f) Hotels, 73

[resorts, motels, restaurants, convention centers,] community centers, transport

agencies with an annual turnover of more than 1 (one) crore taka ;

(g) A person who is involved in the production and supply of tobacco leaves, cigarettes, bidis, jorda, gul and other tobacco products is not a farmer;

(4) “payment” shall include transfer, credit, adjustment of payment or any order or direction to make payment;

(5) “Base price” shall mean the higher of the following three (3) items:

(i) Contract price;

(ii) the amount of the bill or invoice; or

(e) Payment.

Tax deduction or collection before gross-up in case of payment excluding tax

141. (1) Where the person responsible for payment of money makes any payment other than tax, tax shall be deducted at the applicable rate on the amount calculated in the following manner, namely:-

C = (100 × A)/(100-B), where-

C = number calculated for deduction purposes,

A = Amount of payment excluding tax,

B = Applicable tax rate.

(2) In cases where the recipient of a payment excluding tax,-

(a) is required to furnish proof of filing of return but fails to furnish it; or

(b) Failed to receive payment through bank transfer,

In that case, 'B' mentioned in sub-section (1) shall be determined in accordance with the provisions of this Chapter.

(3) For the purposes of this section, “payment free of tax” means any payment made by the payer to the payee without deduction or collection of tax at source under any agreement or arrangement.

General 142. (1) Subject to the exceptions in section 119 and unless otherwise provided in any other

provisions on

section of this Chapter, in the case of deduction or collection of tax under this

74 [Part], if the

deduction or collection of tax at source

person from whom the tax is to be deducted or collected fails to produce proof of filing a return, the rate of tax deducted or collected at source shall be 50% (fifty per cent) higher than the applicable rate.

(2) Unless otherwise provided, in the case of deduction or collection of tax under this Part, if the person from whom the tax is to be deducted or collected does not receive any money by bank transfer in respect of contract price, bill, rent, fee, charge, remuneration, salary or any other payment by whatever name it may be called, the rate of tax deducted or collected at source shall be 50% (fifty percent) higher than the applicable rate.

Consequences of failure of deductions, collections, etc.

143. (1) Where a person is subject to the provisions of this Part—

(a) fails to deduct or collect tax at source; or

(b) deducts or collects tax at a relatively low rate or amount; or

(c) fails to deposit tax in favour of the Government after deducting or collecting it at source or deposits in favour of the Government an amount less than the amount of tax deducted or collected; or

(d) fails to comply with any other requirement,

In that case, such person will be considered as a defaulting taxpayer.

(2) A person deemed to be a defaulting taxpayer under sub-section (1) shall, without prejudice to any other consequences for which he may be liable under this Act, be liable to pay the following amounts, namely:-

(a) The amount of money that has not been deducted or collected;

(b) an amount equal to the difference between the amount required to be deducted or collected and the amount actually deducted or collected; or

(c) an amount equal to the amount of money not deposited in favour of the Government after deduction or collection of tax; and

(d) Failure to comply with any other provisions not exceeding 10 (ten) lakhs Taka.

(3) In addition to the payment of the amount referred to in sub-section (1), a person deemed to be a defaulting taxpayer under sub-section (1) shall be liable to pay an additional amount of 2% (two percent) per month on the basis of the calculation of the additional amount given in the table below on the amount referred to in clauses (a), (b) and (c) of sub-section (2), namely:-

Table

Serial No.	fields	Basis for calculating additional payment
(1)	(2)	(3)

1 .

Failure to deduct or collect tax in accordance with the provisions of this Part

The amount for which tax has not been deducted or collected at source .

2 .

Tax deduction or collection at a lower rate or in a lower amount

The amount of tax deducted or collected at source .

3 .

Failure to deposit or under - deposit in the government treasury after deduction or collection

The amount of money that has not been deposited into the government treasury after tax deduction at source .

(4) The period for calculating the additional amount under sub-section (3) shall be from the date fixed for deduction or collection of tax at source to the date of deposit in the Government treasury:

Provided that such period shall not exceed 24 (twenty-four) months.

(5) The Excise Commissioner shall, after giving a reasonable opportunity of being heard to the person referred to in sub-section (1), take necessary steps to recover from him the amount payable under sub-section (2) and the additional amount referred to in sub-section (3).

(6) Where the Government, Government institution, authority, project, program, organization, unit or any activity in which the Government has financial or operational involvement is responsible for deducting or collecting tax at source, then-

(a) the natural person or persons responsible for authorizing or permitting the payment of money; or

(b) the natural person or persons responsible for granting clearance, registration, license, permit, approval or permission,

shall be jointly and severally liable for the payment of taxes, fines and additional amounts under this section.

(7) Where any person or institution other than the Government, Government institution, authority, project, program, organization, unit or any activity in which the Government has financial or operational involvement is responsible for deducting or collecting tax at source, then-

(a) the person or organization itself, and

(b) The natural person or persons responsible for authorizing or permitting the payment of money:

shall be jointly and severally liable for the payment of taxes, fines and additional amounts under this section.

(8) If the person from whom tax is collectable or deductible has already paid in full all the amounts mentioned in sub-sections (2) and (3), no steps shall be taken to recover the amounts mentioned in sub-sections (2) and (3).

The result of issuing a certificate of tax deduction, collection or payment without actual deduction, collection or payment.

144. (1) Where any person issues a certificate of deduction, collection or payment of tax at source without actually deducting, collecting or paying it to the Government, that person shall, without prejudice to any other consequences for which he may be liable, be personally liable for the payment of the amount not deducted, collected or paid to the Government.

(2) The Excise Commissioner shall, after giving a reasonable opportunity of being heard to the person personally liable, take necessary steps to recover from him the amount payable under sub-section (1).

Certificate of tax deduction, etc.

145. (1) Any person who deducts or collects tax under the provisions of this Part shall issue to the person from whom the tax has been deducted or collected by way of such deduction or collection a certificate relating to such deduction or collection, which shall state—

(a) the name and Taxpayer Identification Number (TIN), if any, of the person from whom the tax has been deducted or collected;

(b) the amount of tax deducted or collected;

(d) Details regarding deduction of tax or deposit of collected money in favour of the Government; and

(e) Other matters as prescribed.

(2) The Board may, by notification in the Official Gazette, determine the following matters, namely:-

(a) the areas where tax collection or deduction certificates are issued or transmitted electronically, or in machine-readable or computer-readable form;

(b) The method of issuing or transmitting said electronic, machine-readable or computer-readable certificate.

Deposit of withheld taxes in favor of the government

146. (1) All moneys deducted or collected under the provisions of this Part shall be deposited in favour of the Government by the person deducting or collecting them within the prescribed time or as directed by the Board.

(2) Except in accordance with the provisions of this Act, no person shall, directly or indirectly, levy, withhold, deduct or collect any amount by way of tax, and any amount so levied, withheld, deducted or collected shall be deposited in accordance with this section.

Confirmation and verification of tax deduction or collection at source

147. (1) The Commissioner of Taxes or the Director General, the Inspector of Taxes or the Director General, the Central Intelligence Cell, the authority authorized in writing by them, for the purpose of verifying the deduction or collection of tax at source or for the purpose of implementing the provisions of this Part-

(a) Any person or organization-

(i) have full and unhindered access to premises, places, goods, books of accounts and records of economic activities maintained in any form or manner;

(ii) access any information, code or technology capable of unscramble or retransform any encrypted data stored or available on a computer into a readable and intelligible format or text;

(e) may extract data, images or any other input stored in electronic records or systems;

(iv) can enter the system by breaking the password;

(e) may copy or analyze any information, ledgers, documents, images or inputs;

(v) may affix identifying marks or stamps on account books and other documents and may take copies or extracts thereof;

(vi) may seize and retain in their possession any books of accounts, documents, electronic records and systems;

(a) may order any person to do or refrain from doing any act;

(b) may take with them such experts, valuers or forces as may be appropriate.

(2) Any authority empowered under this section may, if it enters the premises or place of any person or, after expressing its intention to enter, encounters any obstruction, hindrance or non- cooperation, impose a fine not exceeding 50 (fifty) lakhs on that person.

(3) If any person fails to comply with the provisions of this section or this Part of this Act, the Excise Commissioner shall, after recording the explanation given by such person, or in the absence of any explanation, unilaterally assess the tax and collect the tax assessed and the penalty imposed.

Power to impose taxes without prejudice to other methods

148. The power to levy tax by deduction or collection under this Part shall be exercised without prejudice to the power to levy tax by other methods.

Exemption from liability for deduction or collection of tax at source

149. Where any money is collected or deducted as tax under this Part and paid to the Government, then—

(a) The tax shall be deemed to have been paid by the person from whom it has been deducted or collected;

(b) In the case of such deduction or collection, the person mentioned in clause (a) shall not be able to take any legal action against the deductor or, as the case may be, the collector and if legal action is taken, the deductor or, as the case may be, the collector shall be exempted from liability.

Payment of credit for tax deducted or collected at source

150. (1) Where tax is deducted or collected at source under this Part and deposited into the account of the Government, the tax shall be deemed to have been paid on the income of the person from whose income the tax was deducted or collected.

(2) Where income tax is paid under sub-section (1), credit shall be given for the purpose of determining the tax liability of the person in the income year in which the tax has been deducted or collected.

(3) Where tax is paid at source by a person on behalf of another person, the credit referred to in sub-section (2) shall be given in determining the tax liability of that other person.

Tax payment in case of no deduction

151. Direct tax shall be payable by the taxpayer under this Act in the following cases, namely:-

(a) if any tax required to be deducted or collected is not made subject to the provisions of this Part;

(b) If the amount of tax deducted or collected is less than the tax payable by the taxpayer after regular assessment of tax, the amount equal to the deficiency;

CHAPTER FIVE

Advance tax payment

Advance tax collection from cigarette manufacturers

152. (1) Cigarette manufacturing establishments shall pay advance tax at the rate of 3% (three percent) of the net sales price every month.

(2) The advance tax paid under sub-section (1) shall be set off against the quarterly instalments of advance tax payable under section 155.

(3) In this section, the expression “net sales” means A-B, in which case—

A = gross sale, and

B = Value Added Tax and Supplementary Duty, if any, on the said total sales.

75 [***] Collection of advance tax from motor vehicle owners

153. (1) Every owner of 76 [***] motor vehicles shall be deemed to have sufficient income for the maintenance of such motor vehicles and shall pay advance income tax at the prescribed rate and in the prescribed manner.

(2) Subject to the provisions of sub-section (3), the person or authority responsible for the registration or fitness renewal of a motor vehicle shall not register or renew the fitness of a motor vehicle unless an advance tax invoice paid at the rate specified in the following table is submitted with the application for registration or fitness renewal of the motor vehicle, namely:-

Table

Serial No.	Vehicle type and engine capacity	Advance tax ( Rs. )
(1)	(2)	(3)
1 .	For every motor vehicle not exceeding 1500 cc or 75 kW	25 (twenty- five) thousand
2 .	For every motor vehicle exceeding 1500 cc or 75 kW but not exceeding 2000 cc or 100 kW	50 (fifty) thousand
3 .	For every motor vehicle exceeding 2000 cc or 100 kW but not exceeding 2500 cc or 125 kW	75 (seventy- five) thousand
4 .	For every motor vehicle exceeding 2500 cc or 125 kW but not exceeding 3000 cc or 150 kW	1 (one) lakh 25 (twenty- five) thousand

Serial No.	Vehicle type and engine capacity	Advance tax ( Rs. )
5 .	For every motor vehicle exceeding 3000 cc or 150 kW but not exceeding 3500 cc or 175 kW	1 (one) lakh 50 (fifty) thousand
6 .	For every motor vehicle above 3500 cc or 175 kW	2 (two) lakhs
7 .	Microbus for everyone	30 (thirty) thousand:

Provided that if a person owns more than one motor vehicle in his own name or jointly with another person, tax shall be paid at a higher rate of 50% (fifty percent) for each motor vehicle in excess of one.

(3) In case the registration or fitness is renewed for more than one year, the tax payable under sub-section (2) shall be collected on or before the 30th day of June of any year following the year of registration or fitness renewal.

(4) In case any person fails to pay advance tax in any year under sub-section (3), the amount of advance tax payable by such person in the following year shall be determined on the basis of the formula A+B, where-

A = Amount of advance tax unpaid in the previous year or years, and

B = Amount of advance tax payable under sub-section (2) in the year of payment.

(5) Advance tax shall not be collected under sub-section (2) if the motor vehicle belongs to the following persons or institutions, namely:-

(a) Government or local authority;

(b) any project, program or activity under the government or local government;

(c) any foreign diplomat, any diplomatic mission in Bangladesh, offices of the United Nations and its member organizations;

(d) any foreign development partner of Bangladesh and its affiliated office or offices;

(e) 77 [Orphanages, orphanages, religious places of worship and] any educational institution under the Government's MPO (Monthly Payment Order);

(f) Government university;

(g) Gazetted war wounded freedom fighters; or

(h) Any institution receiving a certificate from the Board stating that no advance tax is payable.

(6) Where a person pays advance tax under sub-section (2), and the tax chargeable on the income from regular sources of that person is less than the said advance tax, that person shall be deemed to have had such notional income in that income year on which the calculated tax charge is collected under sub-section (2).

(7) Advance tax paid under sub-section (2) shall not be refundable.

(8) For the purposes of this section,-

(a) “Motor vehicle” shall include jeeps and microbuses, but shall not include any motor vehicle or motorcycle referred to in section 138;

(b) “Income from regular sources” shall mean income from any source other than the sources mentioned in sub-section (2) of section 163.

Advance tax payment

154. (1) Subject to the provisions of this Part, except the provisions of sub-section (2), if the total income of any person in the last assessed income year exceeds 6 (six) lakhs of taka, advance tax shall be paid by that person on the income in every current financial year and in such case it shall be mentioned as “advance tax”.

(2) Nothing in sub-section (1) shall apply to a taxpayer if—

(a) The taxpayer earns not more than 8 (eight) lakh taka from land cultivation alone;

(b) The total income referred to in sub-section (1) includes the following income, namely:-

(i) “capital income”; or

(ii) Any income of the nature of "one-time income" which is not expected to be earned in the current financial year in which advance tax is payable under this Part.

Amount of advance tax and time of payment

155. (1) Subject to the provisions of sub-section (3) and without prejudice to the provisions of section 154, the minimum advance tax payable by a taxpayer in any current financial year shall be an amount equal to A-B, where-

A = Tax payable on the total income of the taxpayer for the last income year, calculated at the rate applicable for that financial year;

B = Amount of tax deducted or collected at source under this Part or advance tax paid under Part 7.

(2) The minimum tax payable as advance tax shall be payable in 4 (four) equal installments as follows:-

Fiscal year date	Amount to be paid
(1)	(2)
September 15	25% (twenty-five percent)
December 15	25% (twenty-five percent)
March 15	25% (twenty-five percent)
June 15	25% (twenty-five percent).

(3) If the date mentioned in sub-section (2) is a public holiday, then the relevant installment shall be payable on the next working day.

(4) In this case, if a taxpayer fails to pay any installment or part thereof, the unpaid installment or part thereof shall be payable together with the next installment, without prejudice to any liability of the taxpayer under this Act.

(5) Where a taxpayer estimates that the advance tax instalment is likely to be less than the tax calculated under sub-sections (1) and (2), he shall submit an estimate to the Excise Commissioner and shall pay the instalment as per the estimate, making necessary adjustments with any instalment already paid.

Advance tax payment by new taxpayer

156. Subject to the provisions of sub-section (2) of section 154, if the total income of any person who has not previously been subject to regular assessment of tax under this Act exceeds 6 (six) lakh taka in the income year immediately following the tax year, he shall, before the 15th (fifteenth) day of June of each financial year, submit to the Excise Commissioner his estimated total income and the advance tax payable by him as calculated in the manner prescribed in sub- section (1) of section 142 and shall pay the same within the instalment date prescribed in sub- section (2) of section 155, so that it does not exceed the date of the revised instalment under sub- section (5) of section 155.

Failure to pay advance tax installments

157. If any taxpayer who is required to pay advance tax fails to pay any instalment of the said tax on the date fixed as per the original assessment or, as the case may be, as per the estimated assessment, he shall be deemed to be a defaulting taxpayer in respect of that instalment.

Advance tax credit payment

158. Any amount paid by or recovered from any taxpayer by way of advance tax, excluding penalty or interest, shall be deemed to have been paid on the income earned for that period and the tax so paid shall be deducted from the assessed tax payable by the taxpayer.

Explanation 159. For the purposes of this Chapter, “tax assessed for the last income year” means—

a) In the case of a taxpayer whose tax has been previously assessed;

b) In the case of a taxpayer whose tax has not been previously assessed.

CHAPTER SIX

Interest on advance tax

Interest imposed for failure to pay advance tax

160. If, in the case of any person who is liable to pay advance tax, it is observed at the time of regular assessment of tax that advance tax has not been paid in accordance with the provisions of this Part, then, without prejudice to the provisions of the consequences of defaulting taxpayers under section 157, simple interest shall be calculated on the tax assessed on the basis of such assessment of tax at the rate and for the period specified in section 162.

Interest paid by the government on additional advance tax paid

161. (1) If the amount of advance tax paid by any person in any financial year exceeds the amount of tax assessed by regular assessment, the Government shall pay simple interest at the rate of 10% (ten percent) per annum on the excess tax paid.

(2) Interest shall be payable on the payment of additional advance tax under sub-section (1) for the period from the first day of the relevant tax year to the date of assessment of regular tax for that tax year, or for a period of 2 (two) years from the first day of the relevant tax year, whichever is less.

If there is a shortfall in advance tax

162. (1) Where in any financial year a taxpayer pays advance tax on the basis of his own assessment and tax is deducted at source under this Part, if the aggregate of the tax deducted and the tax paid in advance is less than 75% (seventy-five per cent) of the tax payable as

payment, interest

determined by regular assessment,

then

simple interest at the rate of 10% (ten per cent) per

is payable by the taxpayer on it.

annum shall be payable on the difference between the total tax paid and 75% (seventy-five per cent) of the tax arising from the assessment:

Provided that, if the return is not filed on or before the tax date, the interest rate shall be 50% (fifty percent) higher.

(2) Interest shall be payable on the payment of additional advance tax under sub-section (1) for the period from the first day of July in the relevant assessment year to the date of regular assessment of tax for that year, or from 1st July to the next period of 2 (two) years, whichever is less.

(3) Notwithstanding anything contained in sub-sections (1) and (2), where-

(a) tax is paid under section 173; or

(b) Provisional tax has been assessed under section 185 but regular tax has not been assessed,

In that case, simple interest will have to be calculated according to the following provisions, namely:-

(i) up to the date on which the tax assessed or provisionally assessed under section 173 is paid;

(ii) Thereafter, simple interest shall be calculated on the amount of tax paid in such manner which is less than the prescribed 75% (seventy-five percent) of tax.

(4) Where, as a result of an appeal, revision or reference, the amount of interest payable under sub-section (1) has been reduced, the amount of interest payable shall be reduced accordingly and any additional interest paid shall be refunded along with the refundable tax.

(5) For the purposes of this section, “regular assessment of tax” shall include an assessment of tax made on receipt of a revised return or on the occasion of an audit under section 79 [182].

PART 8

Minimum tax

Minimum tax 163. (1) Notwithstanding anything contained in any other provision of this Act, the minimum tax payable by the taxpayer shall, subject to the provisions of this section, be

(2) Subject to sub-section (3), the following minimum tax shall be payable on income from sources from which deductions or collections have been made under certain sections:

(a) The tax deducted or collected under the provisions mentioned in clause (b) shall be deemed to be the minimum tax on the income from one or more sources for which the tax has been deducted or collected;

(b) The tax mentioned in clause (a) shall be deemed to be tax deducted or collected under sections 88-92, 94-95, 100-102, 105, 106, 108, 110-118, 120-129 and 132-139;

(c) Regular accounts shall be maintained in accordance with the provisions of section 72 for the source or sources of income to which minimum tax is applicable;

(d) The income from any source chargeable to minimum tax under this sub-section shall be determined in a regular manner and tax shall be assessed on that income at the rate applicable; if the tax so assessed exceeds the minimum tax under clause (a), then the said excess tax shall be

payable on that income;

(e) The income or loss computed under clause (d) shall not be adjusted against the income or loss computed for any regular source, respectively.

(3) Tax deducted or collected from the following sources shall not be deemed to be minimum tax for the purpose of sub-section (2), namely:-

80 [***]

(b) Tax collected under section 120 on goods imported for use as raw materials by any industrial entrepreneur other than an industrial entrepreneur engaged in the manufacture of cement, iron or

iron products, ferro alloy products or perfumes, carbonated beverages aluminium products, ceramic products] and toilet water.

81 [, powdered milk,

(4) Where a taxpayer derives income from a regular source in addition to one or more sources of income to which the minimum tax is applicable under sub-section (2), then—

(a) Regular tax shall be calculated on income from regular sources;

(b) The tax liability of the said taxpayer shall be the sum of the tax assessed under sub-section (2) and the regular tax under clause (a).

(5) 82 [Subject to the provisions of sub-section (6), a person shall be liable to pay minimum tax on his gross receipts, irrespective of profit or loss, in accordance with the provisions of clauses (a) and (b), namely:-]

83 [(a) Any company, any trust, any firm or association of persons having a gross receipts of not less than 50 (fifty) lakhs of taka, any natural person having a gross receipts of not less than 3 (three) crores of taka shall be liable to pay a minimum tax on its gross receipts in any tax year at the rates specified in the following table, namely:-

Table

Serial No.	Taxpayer type	Minimum tax rate
( 1 )	( 2 )	( 3 )
1.	Manufacturer of cigarettes , bidis , chewing tobacco , smokeless tobacco or any other tobacco product	3 % ( three percent ) of gross receipts
2 .	Carbonated beverage , sweetened beverage manufacturer	3 % ( three percent ) of gross receipts
3 .	Mobile phone operator	2 % ( two percent ) of gross receipts
4 .	Any natural person other than a manufacturer of cigarettes , bidis , chewing tobacco , smokeless tobacco or any other tobacco product is a taxpayer	0.25 % ( zero point two five percent ) of gross receipts
5 .	In any other case	0.60 % ( zero point six zero percent ) of gross receipts

Provided that in the case of an industrial establishment engaged in the production of goods to which serial number 5 of the said table applies, the said rate shall be 0.1% (zero decimal one percent) of such receipts for the first 3 (three) years of the commencement of its commercial production.]

(b) Where the taxpayer has any source of income which is exempt from tax, the total receipts from such one or more sources shall be shown separately, and the minimum tax under this sub-section shall be administered as follows, namely:

(i) In the case of income derived from sources which are subject to tax at regular rates, the minimum tax shall be calculated by applying the rates mentioned in clause (a);

(ii) In the case of income earned from sources exempted from tax or at reduced tax rates, the minimum tax shall be calculated by reducing the rate mentioned in clause (a) at a rate proportional to the exempted or reduced tax rate;

(e) The minimum tax under this sub-section shall be the sum of the minimum tax calculated under sub-sections (a) and (b).

(6) Where both the provisions of section 84 [sub-section (4)] and sub-section (5) apply to a taxpayer , the minimum tax payable by that taxpayer shall be—

(a) the minimum tax under section 85 [sub-section (4)]; or

(b) The minimum tax under sub-section (5), whichever is higher.

86 [(7) The adjustability of the minimum tax computed under this section shall be determined as follows, namely:-

a) The minimum tax calculated under sub-section (2) shall not be refundable or adjustable;

(ii) If, during the calculation of tax under sub-section (6), additional tax liability arises in addition to the minimum tax paid under sub-section (2), the refund generated in previous tax years shall be adjusted with such additional amount.]

(8) Where any surcharge, any additional interest, any additional amount, etc. is payable under the provisions of this Act, it shall be payable in addition to the minimum tax.

(9) Where the regular tax calculated in any tax year exceeds the minimum tax under this section, the regular tax shall be payable.

(10) For the purposes of this section,-

(a) “Regular source” means any source in respect of which the minimum tax under sub-section (2) is not applicable;

(b) “Regular tax” means tax calculated on regular income using regular methods;

(d) “Gross receipts” means-

(i) all proceeds earned through the sale of goods;

(ii) All fees or charges received for providing services or facilities, including commissions and discounts;

(e) All receipts from any source of income.

87 [more or less]

164. Where tax is deducted or collected in excess of the correct amount

, such deduction or

tax deducted or collected at source not being the minimum tax base

collection shall not be taken into account for the purpose of calculating the minimum tax under section 163 .

PART 9

Returns, Statements and Documents

CHAPTER ONE

Returns and Statements

Return 165. (1) The Board may determine such returns for taxpayers on a class basis and in such manner as it may consider appropriate.

(2) The return of a normal 90 [individual] taxpayer shall contain a statement of all income of the taxpayer, a statement of all assets and liabilities situated in Bangladesh and outside Bangladesh and, where applicable, a statement of all expenses relating to living.

Return filing 166. (1) Every person shall file a return for the relevant income year with the Excise Commissioner, if-

(a) his income in the relevant income year exceeds the tax-free income limit under this Act;

(b) his tax is assessed in any of the 3 (three) years immediately preceding the relevant income year;

(c) the person is a company, a shareholder director or a shareholder employee of a company, a firm, a partner in a firm, a body corporate, an employee holding an executive or managerial position in a business, a public servant or a non-resident who has a permanent establishment in Bangladesh;

(d) the said person, other than an institution established solely for charitable purposes, receives any income in the relevant income year which is exempt from tax or eligible for reduced rate of tax under Chapter I of Part 6;

(e) any person eligible to be registered as a taxpayer under section 261; or

(f) The person is required to furnish proof of filing a return under section 264.

(2) Filing of return shall not be mandatory in the following cases, namely:-

(a) Any educational institution-

(i) Which is a primary or pre-primary school or a government secondary or higher secondary school teaching in Bengali language, or which is an educational institution under Monthly Payment Order (MPO); and

(ii) Those who do not have an English version of the curriculum;

(b) Government University;

(d) Local authorities;

(e) Statutory government authority or autonomous body which has no income other than funds received from the government and interest income;

(f) any entity established or constituted by or under any law for the time being in force which has no income other than funds received from the Government;

(g) Government Provident Fund and Government Pension Fund;

(h) a non-resident natural person who has no fixed base in Bangladesh; or

(i) Persons exempted by the Board, by notification in the Official Gazette, from filing returns.

Filing of statement of assets and liabilities

167. (1) Subject to the other provisions of this section, every natural 91 [person] taxpayer shall be required to furnish a statement of assets and liabilities if the person-

(a) owns a total asset exceeding 92 [50 (fifty)] lakhs of taka as on the last date of the income year; or

(b) owns any motor vehicle at any time during the income year; or

(d) owns any property abroad at any time during the income year; or

(e) A shareholder of a company becomes a director:

Provided that, 93

liabilities.

[***] all public servants shall mandatorily submit a statement of assets and

(2) Every resident Bangladeshi natural person taxpayer shall furnish in his return a statement of all assets and liabilities situated in Bangladesh and outside Bangladesh.

(3) Every non-resident Bangladeshi natural person taxpayer shall furnish in his return a statement of all assets and liabilities situated in Bangladesh.

(4) Every such foreign natural person

96 [individual] taxpayer who is not a Bangladeshi shall

furnish in his return a statement of all assets and liabilities situated in Bangladesh.

(5) Although it is not mandatory for a natural 97 [individual] taxpayer to file a statement of assets and liabilities under sub-section (1), he may voluntarily file a statement of assets and liabilities.

(6) In the return of assets and liabilities of a natural 98 [individual] taxpayer, the return of assets and liabilities of the spouse or minor child of the person concerned shall also be filed if they do not have separate TINs.

(7) The Excise Commissioner may, by notice in writing, require any person to furnish a statement of assets and liabilities for any income year, if—

(a) the said person has not filed a statement of assets and liabilities in the relevant income year; or

(b) The said statement of assets and liabilities appears to be necessary for determining the tax liability of the said taxpayer for the relevant income year.

Submit a statement of

168. ( 1 ) Every natural 99 [individual] taxpayer shall be required to furnish a statement of living expenses in his return , if -

living expenses (a ) The income of the said person in the relevant income year exceeds 5 ( five ) lakhs of taka ;

(b ) the person acquires ownership of the motor vehicle at any time during the relevant income year ;

(c ) the person derives any income from the business ;

(d ) the said person is a shareholder or director of a company ; or

(e ) The said person invests in house property or apartment within the City Corporation area in the relevant income year .

( 2 ) The Excise Commissioner may , by notice in writing , require any person to furnish a statement of living expenses in respect of any income year , if—

(a) the said 100 [natural] persons have not submitted the said statement of expenditure in the relevant income year ; or

(b ) The said statement of expenses appears to be necessary for determining the tax liability of the said taxpayer for the relevant income year .

General rules for filing returns

169. (1) The return shall be filed along with the prescribed schedules, statements, accounts, annexures or documents, by providing the necessary details and information in the form prescribed by the Board.

(2) The following documents shall be attached with the return of a company or any person deriving income from the execution of a long-term contract, namely:-

(a) Audited financial statements;

(b) Evidence of compliance with the criteria set by the Board, from time to time, for the purpose of verification; and

(c) A separate statement of accounts explaining the difference between the profit and loss shown in the financial statements and the income shown in the return.

(3) In the case of an entity having international transactions in any income year, a statement relating to international transactions under section 238 shall be filed with the return.

(4) A non-resident Bangladeshi may submit the return along with proof of payment of tax on the basis of his return to the nearest Bangladesh Mission and the Mission shall issue an acknowledgement of receipt of the said return with its official seal and shall forward the return to the Board.

(5) The return must be signed and attested by the following persons, namely:-

(a) in the case of a natural 101 [person] taxpayer, by the taxpayer himself; if he is not resident in Bangladesh, by any person concerned or by any person authorized by him for that purpose, and if he is incapable of acting normally due to mental incapacity, by his guardian or by any person legally competent to sign on his behalf;

(b) in the case of a Hindu undivided family, by the head of the family, and if the head is not resident in Bangladesh or is unable to perform his normal duties due to mental incapacity, by any adult member of the family;

c) in the case of a company or local authority, the chief officer;

(d) in the case of a firm, any partner thereof, other than a minor partner;

(e) in the case of any other association, any member or principal officer of the association; and

(f) In the case of other persons, any person legally competent to sign by or on behalf of such person.

Self-directed return filing

102 [170. All persons who are legally required to file returns under section 166 shall file returns in the self-determined manner under section 180.]

Time for filing returns and paying income tax

103 [171. (1) Every taxpayer shall file a return on or before the tax day.

(2) In case of filing the return on or before the tax day, the return shall be filed after paying the income tax as per section 173.

(3) In case of filing of return after the tax day, the return shall be filed after paying income tax as per section 174.]

Notice for filing return

172. (1) The Excise Commissioner may, at any time after the expiry of the period specified in section 171, by notice in writing, direct any person to furnish his return of income, if—

(a) the person is required to file a return under section 166; or

(b) The total income of the said person is taxable in the relevant income year.

(2) The return shall be filed within the period specified in the notice under sub-section (1), which shall not be less than 21 (twenty-one) days, or within such extended period as the Excise Commissioner may approve.

Regarding payment of income tax and surcharge on or before the date of filing of return

3. (1) Every person required to furnish a return under section 166, 172, 175, 191, 193 or 212 shall pay the tax payable on or before the date of furnishing the return.

(2) The tax payable shall be calculated on the basis of the A-B rule, where-

A = Tax payable by the taxpayer on the basis of the return or in accordance with the provisions of sub-section (5) of section 163, whichever is higher;

B = Tax paid at source or advance tax as per the provisions of Part 7.

(3) The amount paid under sub-section (1) shall be deemed to have been paid as tax payable by the taxpayer after regular assessment of tax.

(4) If any person, without reasonable cause, fails to pay the tax payable under sub-section (1), he shall be deemed to be a defaulting taxpayer.

Tax calculation in case of filing return after tax day

104 [174. If any taxpayer who is required to file a return under section 166 fails to file a return by the due date, the tax of the taxpayer shall be assessed and payable in the following manner, subject to the liability arising under the other provisions of this Act, namely:-

A = B + (B - C) × D × 0.02, where,

A = Total amount of tax payable;

B = The total amount of tax that the taxpayer would have paid if he had filed the return by the tax date, but in this case—

(i) The tax shall be calculated in the manner in which it would have been calculated if no tax exemption had been applicable; and

(ii) It shall not include any other penalty or amount applicable or levied under this Act, except minimum tax, surcharge and simple interest;

C = Sum of advance tax and tax at source paid by the taxpayer in the said income year;

D = Number of months as specified below, namely:—

(i) The number of months after the tax day shall not exceed 24 (twenty-four);

(ii) A fraction of a month shall also be considered a full month.]

Special

105

[175. (1) Subject to the provisions of sections 182 and 212, the following returns shall be

provisions regarding general returns and revised returns

deemed to be ordinary returns, namely:-

(a) revised return filed under sub-section (10) of section 182;

(b) Returns filed in pursuance of notice issued under sub-section (3) of section 212.

(2) If a revised return is filed under any provision of this Act before the tax day, tax shall be payable in accordance with section 173.

(3) If a revised return is filed under any provision of this Act after the tax day, no tax exemption shall be claimed in the revised return which was not claimed in the original return and if any new tax exemption is claimed, it shall be cancelled and taxed at the regular rate.

(4) No return or revised return shall be filed while assessing tax on the basis of an appeal or an order of the Tribunal:

Provided that, in cases where the taxpayer has not filed any return, the return may be filed, where applicable, at the time of assessment of tax based on the order passed by the Appeal or Tribunal.]

Consequences of filing an incomplete return

176. (1) In the case of filing any return or revised return, if the provisions of section 169 or any direction issued by the Board are not followed, the said return or revised return shall be considered incomplete.

(2) If the return or revised return is considered incomplete, the Excise Commissioner shall, stating the reasons, send a notice to the taxpayer to furnish the relevant information, verification, statement or documents within the time specified in the notice.

106 [(3) If a taxpayer fails to comply fully with a notice given under sub-section (2), the return or revised return which was considered incomplete shall be—

(a) Failure to comply with sub-sections (2) and (5) of section 169 shall be deemed to be void or invalid as if it had not been filed and in the event of such void or invalidity the Excise Commissioner shall take the following steps, namely:-

(i) Sending a notice to the taxpayer of cancellation or invalidation of the filed return;

(ii) Informing the Inspector Additional Tax Commissioner in writing about the cancellation or invalidity;

(b) In other cases, selection may be made for audit under section 182.]

(4) If a taxpayer fully complies with the contents of the notice given under sub-section (2), the return or revised return shall be deemed to be complete on the date of filing.

(5) The return shall not be considered complete merely by reason of acknowledgement of receipt.

Tax return at source

177. (1) The following persons shall file returns of tax deducted or collected under the provisions of Part 7 in such form as the Board may prescribe:

(a) Local authorities, autonomous bodies, any authority of the government, primary or pre-primary schools teaching in Bengali, government secondary or higher secondary schools, or companies other than any educational institution under Monthly Payment Order (MPO);

(b) Farm;

(d) Private hospitals;

(e) Clinic;

(f) Diagnostic Center.

(2) The return under sub-section (1) shall-

(a) The taxpayer shall submit it to the cess commissioner under whose jurisdiction he falls;

(b) The relevant details and information in the prescribed form and accompanied by schedules, statements, accounts, annexures or documents shall be submitted;

(3) The return under sub-section (1) shall be filed within the following time periods, namely:-

(a) The applicable return for the previous month shall be filed by the 107th [25th (twenty-five)] date of each month; and

(b) In case the 108 [25 (twenty-five)] day of any month falls on a weekly or government holiday, the next office opening day shall be 109 []

110 [***]

(5) The Board may, by notification in the Official Gazette, prescribe the scope, form and procedure for filing returns in electronic, machine-readable or computer-readable medium.

Joint jurisdiction 178. The Board may issue general or special orders for the simultaneous exercise or performance by any income-tax authority of the powers and functions of the Excise Commissioner in relation to the receipt of returns or revised returns and the issuance of receipts acknowledging receipt thereof.

CHAPTER TWO

Presenting information for tax assessment

Presentation of accounts, documents, etc.

179. (1) The Excise Commissioner may, by notice in writing, direct any taxpayer who has filed a return or to whom a notice to file a return has been issued under section 166, 175, 111 [, 176 or 212] to produce such records, books, accounts, statements, documents, information or electronic records as may be necessary for the purpose of auditing the return or assessing tax, not exceeding 3 (three) years preceding the relevant income year.

(2) The Excise Commissioner may issue a notice for the production of any record, book, account, statement, document, information or electronic record or any part thereof in electronic form or by electronic means.

(3) Any account, statement, document, information or electronic record shall be filed on or before the date specified in the notice.

(4) For the purposes of this section,-

(a) “return” shall include a revised return;

(b) “information” shall include “data” as defined in clause (10) of section 2 of the Information and Communication Technology Act, 2006 (Act No. 32 of 2006);

(c) “Electronic record” and “electronic format” shall include “electronic record” and “electronic format” as defined in clauses (5) and (7) of section 2 of the Information and Communication Technology Act, 2006 (Act No. 32 of 2006).

PART 10

Tax assessment and audit

Customizable 180. (1) If a person files a “self-assessment return” for any tax year under this section, the assessment of his income, tax and other liabilities under this Act shall be deemed to have been completed automatically if the return-

(a) is submitted in compliance with all the provisions mentioned in section 169; and

(b) Tax is paid by complying with all the provisions mentioned in Section 173 and Section 174 112

[.]

113 [***]

(2) If, after filing a return under sub-section (1), it is observed by the taxpayer that in the return filed by him-

(a) the income shown; or

(b) the claimed tax exemption or credit; or

If the tax payable under this Act has not been correctly calculated or paid in the correct amount, he may file a revised return, stating the reasons in a written statement 114 [.]

115 [***]

(3) No revised return shall be filed under sub-section (2) in the following cases:

(a) after the expiry of 180 (one hundred and eighty) days from the date of filing of the return under sub-section (1);

(b) after the first filing of the revised return; or

c) After the original return is selected for audit under section 182.

(4) In the case of a return filed under sub-section (1), no question shall arise as to the source of the initial capital of the business of a new natural person taxpayer, if the taxpayer-

(a) shows income from a source which is not tax exempt and the income shown exceeds the tax- free limit;

(b) Demonstrates an income of not less than 20% (twenty percent) of the initial capital;

(c) pays the tax and other applicable amounts calculated at the regular tax rate on or before the time of filing the return;

(d) Submit evidence regarding the existence of the business being displayed;

(e) filed within the relevant tax day of the relevant tax year; and

(f) Mention in writing that the return filed is not a pending return.

116 [***]

(6) For the purposes of this section,-

(a) “Regular tax rate” means a tax rate which is not exempted or reduced;

(b) “Outstanding return” means a return which has not been filed within the tax year to which the income year relates.

Return process 181. (1) The Excise Commissioner shall process the “self-assessment return” or revised return filed under section 180 in the following manner, namely:-

(a) If any arithmetical error is observed in the return filed or any incorrect claim is observed in the light of any information contained in the said return or in any statement or document filed with the return, the income shall be calculated by adjusting it;

(b) the tax payable under this Act and any other amount shall be calculated on the basis of clause (a); and

(c) The tax payable or refundable shall be determined by giving credit for advance tax paid including tax at source and tax paid under this Act.

(2) If, as a result of the return process, there is a difference between the amount of income, tax or other significant amount and the amount shown in the “self-assessment return” or revised return filed under section 180, the Excise Commissioner shall give a written notice to the taxpayer as follows:-

(a) The taxpayer shall be informed of the amount of difference by attaching the calculation sheet containing the income, tax, refundable tax or other related matters calculated as a result of the return process to the notice;

(b) provide the taxpayer with an opportunity to explain his/her position in writing regarding the additional liability or reduction in refund arising in the return process within the period specified in the notice; and

(i) to file a revised return, correcting the discrepancies mentioned in the notice; and

(ii) To pay the taxes and other amounts payable as a result of the said process.

(3) Where a notice is given under sub-section (2), the Excise Commissioner shall-

(a) Send the revised return receipt within 90 (ninety) days after confirming the fulfillment of the following conditions, namely:-

(i) Whether a revised return has been filed in accordance with the provisions of clause (c) of sub- section (2);

(ii) whether any tax or other amount payable under this Act as a result of the process has been paid at the time of filing the revised return or before; and

(e) whether the difference referred to in sub-section (2) has been duly addressed in the return;

(b) If any of the conditions mentioned in clause (a) are not fulfilled, a notice of claim shall be issued after the expiry of the date mentioned in the notice given under sub-section (2) along with a statement of income, tax, refundable tax or other relevant matters;

(c) The notice of claim referred to in clause (b) shall be issued within 6 (six) months from the date of issue of the notice under sub-section (2).

(4) For the purposes of this section, "any incorrect claim on the basis of any information contained in the return or in any statement or document filed with the return" means any claim based on the information provided, which arises from any return or any statement or document filed-

(a) any item which is inconsistent with any other entry of the same kind, or any other item which is inconsistent with any statement or document of the return; or

(b) Any deduction, exemption, rebate or credit, where the amount, proportion or fraction of the legal limit allowed exceeds the limit of any deduction, exemption, rebate or credit.

Audit 182. (1) The Board or any authority subordinate to it with the approval of the Board may, in the manner prescribed by the Board, select returns for audit from the returns or revised returns filed under section 180 and shall forward the same to the concerned Tax Commissioner for the purpose of audit.

(2) The Tax Commissioner shall, within 7 (seven) working days from the date of receipt of the list of returns selected for audit, by order, appoint an investigation team, audit team and audit curator for each audit case and shall send such order to all the concerned investigation teams, audit teams, audit curators and the Excise Commissioner on the date of signing of such order.

(3) The Excise Commissioner shall, within 7 (seven) working days of receipt of the order issued under sub-section (2), issue a notice to the taxpayer concerned informing him of the audit and shall send a copy of such notice to the concerned investigation team.

(4) Each search team-

(a) Conduct an investigation and collect information about the taxpayer's income, expenses, assets, liabilities, transactions, financial statements and other records, public records, and information about related parties to the taxpayer, etc.;

(b) Submit an investigation report to the Audit Curator, including detailed verification and confirmation of the existence and nature of the taxpayer's source of income;

(c) shall submit the inquiry report to the concerned Excise Commissioner within 60 (sixty) days of receipt of the notice sent under sub-section (3) and shall submit a copy of such report to the Audit Curator; and

(d) If the report is not submitted within the time limit mentioned in clause (c), an application for extension of time may be made to the concerned Excise Commissioner and the concerned Excise Commissioner may extend the time limit up to a maximum of 60 (sixty) days.

(5) After submitting the investigation report, the audit team shall conduct the audit activities following the audit manual and guidelines prepared by the Board, and

(a) shall examine compliance with all applicable provisions under this Act and other relevant laws;

(b) The following tasks shall be performed through field inspection, namely:-

(i) verify any claim or information submitted by the taxpayer;

(ii) Collect and verify books of accounts, receipts and payments, purchase and sale agreements and other documents, any other information issued or received by the client, customer or supplier;

(e) Gain an understanding of the accounting and management information systems employed by the taxpayer;

(iv) Collection of other relevant evidence, of whatever nature or kind;

(d) shall examine the nature and authenticity of the transaction;

(e) re-verify the investigation report submitted under sub-section (4);

(f) interview any person who has or may have a relationship with the taxpayer;

(g) direct the taxpayer to submit a written statement regarding any information and statistics;

(h) Collect and analyze relevant aggregate information, market information, financial information and, where applicable, taxpayer lifestyle information.

(6) The audit team shall send the draft audit report to the taxpayer and receive written explanations from him.

(7) The audit team shall submit the audit report to the Audit Curator within 300 (three hundred) days from the date of submission of the investigation report under sub-section (4) and the report shall include the following matters:

(a) A statement regarding the detailed verification and confirmation of the taxpayer's source of income, assets and liabilities and their nature, including the report of the audit team;

(b) a statement regarding compliance with all applicable provisions of this Act;

(c) Areas for improvement in compliance with the provisions of the law and, where applicable, comments on the taxpayer's internal controls.

(8) The Audit Curator shall, within 7 (seven) working days of the submission of the report by the audit team:

(a) Make a recommendation to the Tax Commissioner to complete the audit process after being satisfied with the following matters, namely:-

(i) compliance with this Act and all information regarding the taxpayer's income, expenditure and assets, as per the audit report received, has been properly reflected in the taxpayer's return or amended return; and

(ii) There is no scope for any additional tax claim from the taxpayer;

(b) Grant approval to the Excise Commissioner to complete the audit activities if it appears from the audit report received that-

(i) According to the audit report received, compliance with this Act and all information regarding the income, expenditure and assets of the taxpayer are not properly reflected in the taxpayer's return or amended return; or

(ii) Any other action should be taken against the taxpayer.

(9) The Tax Commissioner, after receiving the recommendation from the Audit Curator, shall consider the case and shall give an appropriate decision within not more than 7 (seven) working days from the date of receipt of the recommendation.

(10) The Excise Commissioner shall, within not more than 7 (seven) working days after receiving approval from the Audit Curator:

(a) send the audit report to the taxpayer and send a notice directing the taxpayer to file a revised return reflecting the results of the audit, and to pay the tax and other applicable amounts assessed on the basis of the revised return on or before the date of filing the revised return; and

(b) Conduct any other proceedings as directed by the Audit Curator.

(11) If the Excise Commissioner is satisfied that the findings mentioned in the audit report are properly reflected in the revised return and that the tax liability and other applicable amounts have been paid in full in accordance with the provisions of sub-section (10), he shall accept the revised return and send a letter to the taxpayer stating that the audit has been completed.

(12) Where no revised return has been filed after the notice under sub-section (10) has been given or the revised return filed does not reflect the results of the audit, or tax or other applicable amount has not been paid in compliance with the provisions of sub-section (10), the Excise Commissioner may assess tax under section 183 or 184, as the case may be.

(13) No tax shall be assessed under sub-section (12) unless—

(a) The search and audit phase is completed;

(b) the taxpayer is notified of the audit report; and

(c) the taxpayer fails to file a revised return in compliance with the notice sent under sub-section (10); or the taxpayer files a revised return in compliance with the notice sent under sub-section

(10) but fails to properly reflect the results of the audit and fails to pay tax and other applicable amounts in accordance with the results of the audit.

117 [(14) Except in the following cases, any return or revised return filed under section 180 for any tax year shall not be eligible for audit under sub-section (1) if it shows a total income of not less than 15% (fifteen percent) more than the total income of the immediately preceding tax year, namely:-

(a) Return or revised return of any bank, insurance or finance company;

(b) No return or revised return has been filed in support of any loan taken in the year concerned from any source other than banks and finance companies totaling more than 5 (five) lakhs taka;

(d) any return or amended return showing income to which a reduced rate of tax is applicable;

(e) any return or amended return in respect of which a refund of tax has been claimed or a refund of tax has been generated;

(f) Taxpayer-

(i) fails to submit the necessary documents in support of compliance with the provisions of Part 7 in the relevant year; or

(ii) if he is eligible for selection for audit under clause (b) of sub-section (3) of section 176 for failure to comply fully with the notice sent under sub-section (2) of section 176; or

(e) Failure to file return under section 177.]

(15) For the purpose of audit under this section,-

(a) The Tax Commissioner shall constitute a team as follows:

(i) Formation of any number of audit teams and each audit team shall consist of at least 2 (two) auditors;

(ii) Formation of any number of investigation teams and each investigation team shall consist of at least 2 (two) tax inspectors;

(b) The Excise Commissioner and Tax Inspector under whose jurisdiction the taxpayer selected for audit is registered shall not be included in the audit team and investigation team appointed by such taxpayer respectively;

(d) No election shall be made under sub-section (1) before the expiry of 60 (sixty) days from the date of filing of the return;

118 [(e) The return shall be selected or approved for audit under sub-section (1) within not more than 2 (two) tax years from the end of the tax year in which it is filed;]

(f) All reports prepared and submitted under this section shall be signed by all members of the team;

(g) In calculating "15% (fifteen percent) more total income", only those sources of income shown in the return filed under section 180 which are in existence in the immediately preceding tax year shall be considered;

(h) The auditor shall be selected from among the Excise Commissioners not below the rank of Assistant Commissioner of Taxation by the Income Tax Authority;

(i) "Audit Curator",-

(i) shall be selected by the Tax Commissioner from among the Additional Tax Commissioners or Joint Tax Commissioners subordinate to him; and

(ii) Shall be the key person for managing the audit activities including the resolution of audit cases selected under this section within a specified time frame, preparation of audit calendar, preparation of audit plan; and

(e) shall be responsible to the Commissioner of Taxation for all intents and purposes of this section.

119 [Tax

assessment by the Revenue Commissioner]

183. 120 [(1) The Excise Commissioner may, under this section, determine the income-tax payable in the following cases in accordance with the relevant returns, documents or any other provision of this Act, namely:-

(a) any return or revised return filed by any person is treated as a general return under section 175; or

(b) if any person is eligible for assessment of tax under sub-section (12) of section 182; or

(d) If any person is liable to pay income tax under any provision of this Act.]

(2) Where the Excise Commissioner is satisfied that the presence of the taxpayer or any evidence is not required for the purpose of assessing the tax or calculating the tax liability of the taxpayer, the Excise Commissioner shall assess the tax of the taxpayer on the basis of the return or revised return, subject to the compliance of the following conditions, namely:-

(a) The said return shall be filed on or before the date mentioned in section 171;

(b) The tax payable shall be paid on or before the date of filing of the return;

(d) If tax is assessed on the basis of the said return, no tax will be refunded as a result thereof; and

(e) If the taxpayer identification number is mentioned in the said return.

(3) Where the Excise Commissioner considers it necessary to require the presence of the taxpayer or any evidence for the assessment of tax, the Excise Commissioner shall give notice to that person to the effect that he shall-

(a) appear before the Excise Commissioner, in person or by an authorised representative, on the date and time specified in the notice; or

(b) Necessary evidence must be submitted in support of the return mentioned in the notice.

(4) Where the taxpayer complies with the notice given under sub-section (3), the Excise Commissioner shall commence the tax assessment process.

(5) The Excise Commissioner may, during the assessment process of the taxpayer, request further hearing or necessary evidence and in such case, the notice shall specify the matters to be heard and shall state the consequences arising from the failure to comply.

(6) The Excise Commissioner shall not disallow any expenditure shown by the taxpayer without giving him an opportunity of being heard.

(7) The Excise Commissioner shall, after considering the evidence presented at the end of the hearing, issue a tax assessment order in writing or through a specified electronic method and shall notify the taxpayer of the order within 30 (thirty) days of the issuance of the order.

(8) If the taxpayer fails to comply with the notice given under sub-section (3) or (5), the Excise Commissioner may assess the best judgmental tax under section 184.

Best judgment- based tax assessment

184. (1) Subject to the other provisions of this section, the Excise Commissioner may determine the best judgment of the taxpayer in the following cases, namely:-

(a) where any person has failed to comply with a notice given under section 172 and has not filed any return or revised return under section 175; and

(b) Where any person has failed to comply with a notice given under section 172, 175, sub- sections (3) and (5) of section 183, section 193 or 212.

(2) After considering the information and facts available and after properly evaluating the legal and factual aspects of the case, the best judgment shall be determined.

(3) The tax assessment order made under this section shall reflect the best judgment of the Excise Commissioner on the basis of which the tax was assessed.

(4) The Excise Commissioner shall issue an order for assessment of tax based on best judgment in writing or through a specified electronic method and shall notify the taxpayer thereof within 30 (thirty) days from the date of issue of such order.

Temporary tax assessment

185. (1) The Excise Commissioner may assess provisional tax on the total income of a taxpayer in any income year.

(2) The provisional assessment of tax shall be made at the following times, namely:-

(a) where the return has been filed at any time during the relevant tax year; and

(b) In cases where the return for the relevant tax year has not been filed on the tax day or on any day preceding the tax day.

(3) The provisional tax assessment shall be prepared on the basis of the following factors, namely:-

(a) in the case referred to in clause (a) of sub-section (2), on the basis of the return and along with the accounts and documents, if any;

(b) in the case referred to in clause (b) of sub-section (2), on the basis of any readily available information or material and the best judgment of the Excise Commissioner.

(4) In assessing provisional tax under this section, the Excise Commissioner may take the following steps, namely:-

(a) Correction of any mathematical errors in returns, accounts and documents;

(b) Adjustment of any loss and deduction or deduction of depreciation allowance under sections 70 and 71 on the basis of information obtained from returns, accounts and documents.

(5) In the case of payment and recovery, tax payable on the basis of provisional tax assessment shall be treated as if it had been assessed on the basis of regular tax assessment.

(6) In computing the tax liability under this section, the following credit shall be given, namely:-

(a) any tax which has been deducted or collected at source and paid to the Government; and

(b) Any advance tax paid.

(7) Where any amount is paid against a tax claim by way of provisional assessment, a tax credit of that amount shall be given in computing the tax payable under the regular assessment for the same tax year.

(8) No action taken or grievance or loss suffered as a result of any temporary assessment of tax under this section shall prejudice the steps taken to resolve any problem arising in the regular assessment of tax.

(9) No appeal shall lie against the provisional assessment made under this section.

Source tax return audit

186. (1) With the approval of the Commissioner of Taxes, the Commissioner of Excise shall select for audit certain returns from the returns of tax at source filed under section 177.

(2) The Excise Commissioner shall conduct an audit of the following matters of the selected source tax returns, namely:-

(a) whether tax has been deducted or collected at the rate, amount and manner specified in Part 7 and the rules made therefor;

(b) whether the tax collected or deducted has been paid to the Government, or whether it has been paid at the prescribed time and in the prescribed manner;

(3) Where it appears from any account under sub-section (2) that the provisions of this Act have not been followed in respect of the matters mentioned in that sub-section, the Excise Commissioner may, in the conduct of an audit, take such steps as may be necessary under sections 143, 144 and 266 of this Act.

(4) The Board shall formulate such comprehensive audit guidelines as it may consider appropriate for the selection of returns for audit purposes and for the conduct of the audit under sub-section

(1) and shall be required to be followed.

(5) No return shall be eligible for audit if 4 (four) years have elapsed since the filing of the return.

Tax assessment of a firm or partnership

187. In determining the tax of a firm or association of persons-

(a) First, the total income of the firm or association of individuals shall be determined and then the tax liability shall be calculated on the basis of the total income; and

(b) Later, the after-tax income will have to be distributed among the partners or members on a proportional basis.

Taxation in case of change in the constitution of the firm

188. (1) If at the time of assessment of tax of a firm it is found that there has been a change in its constitution, then at the time of assessment of tax the tax of the newly formed firm shall be assessed.

(2) For the purpose of including the income of a firm for any tax year determined under sub- section (1) in the total income of the partners of the firm, the income shall be apportioned among those partners who are entitled to a share of the income in that tax year; and where the tax charged on any partner cannot be recovered from him, it shall be recovered from the firm as constituted at the time of assessment.

(3) For the purposes of this section, a change in the constitution of a firm shall be deemed to have been made in the following cases, namely:-

(a) Where all the partners remain in existence despite any change in their respective shares or in the shares of any of them; or

(b) Where one or more principal partners remain in the firm despite the change in ownership of one or more partners or the addition of one or more new partners.

Taxation in case of formation of a new firm by an heir

189. In cases where, at the time of assessment of tax of a firm, it appears that a new firm has been established as a successor to the firm to which the tax is to be assessed and whose tax assessment cannot be determined under section 188, separate tax shall be assessed for the predecessor firm and the successor firm in the light of the provisions for assessment of tax relating to succession of business under section 190.

Taxation of business inherited by any means other than death

190. (1) Where any person succeeds to any business of another person in any income year by any means other than death-

(a) The tax of the predecessor shall be assessed for the period prior to the inheritance in the year in which the inheritance is received; and

(b) The tax on the heir shall be determined for the period subsequent to the receipt of the inheritance.

(2) Notwithstanding anything contained in sub-section (1), if no predecessor is found, the inheritance tax shall be assessed for the year in which the inheritance is received or for the years preceding it and this Act shall apply to the extent applicable.

(3) If any amount payable on the income of a business cannot be recovered from the predecessor, the Excise Commissioner may, after recording the information received in this regard, recover the said amount from the successor and the successor shall be entitled to recover the recovered amount from the predecessor.

Taxation in case of closed business

191. (1) Subject to the provisions of section 189, where any business is closed during any financial year, the tax for that year may be assessed.

(2) In determining the tax for any income year under sub-section (1), the income shall be computed for the period from the beginning of the income year in which the business is discontinued to the date on which the business is discontinued.

(3) If any business is closed during any financial year, a notice shall be given to the Excise Commissioner within 15 (fifteen) days of the closure of the business and a return of income shall be filed along with the notice for the period from the end of the income year to the date on which the business was closed, but in such case, the financial year shall be treated as the tax year in respect of income for that period.

(4) For failure to give notice under sub-section (3), the Excise Commissioner may order the recovery of any amount as penalty for the period up to the date of cessation of business, but the amount of such penalty shall not exceed the amount of tax for the immediately preceding tax year.

(5) In assessing tax under sub-section (1), the Excise Commissioner shall-

(a) The person on whom the tax is to be assessed;

(b) in the case of a firm, the person who was a partner in the firm at the time of the cessation of business; and

The tax authority may issue a notice to the above person, giving at least 7 (seven) days' time, and may issue a direction to file a return by attaching the details, records and documents mentioned in the notice along with the details and information applicable to the filing of the return under section 169.

(6) For the purpose of assessment of tax, a notice given under sub-section (5) shall be deemed to be a notice under section 172 and the provisions of this Act shall apply to the extent applicable.

Tax assessment in case of division of Hindu undivided family

192. (1) For the purposes of this Act, any Hindu family designated as a Hindu undivided family shall be treated as a Hindu undivided family until such time as the information relating to the division of that family is furnished by that family under this section.

(2) Where, at the time of assessment of tax of a Hindu undivided family, it is claimed by any member of that family that a partition has taken place among the members of that family, the Excise Commissioner shall, after giving notice to all the members of that family, investigate the matter.

(3) After the completion of the investigation, the Excise Commissioner shall record the results of the investigation as to whether the joint family property has been divided and, if there has been any division, the date on which the family was divided.

(4) Where, in any decision under sub-section (3), the division of an undivided family occurs after the expiry of any income year, the total income of the undivided family for the income year shall be determined as if no division had occurred; and each member of the family or group shall be jointly or severally liable for the tax payable on the assessed income of that family in addition to the tax for which he is individually liable.

(5) In the case of a decision under sub-section (3), the division of an undivided family occurred during any income year, the total income of the undivided family up to the date of the division shall be determined as if no division had occurred; and each member of the family shall be liable jointly or severally to tax on the income of that family assessed for that period in addition to the tax for which he is individually liable.

(6) Notwithstanding anything contained in this section, if after the assessment of the tax of a Hindu undivided family has been completed, the Excise Commissioner has reason to believe that the division of the family has already taken effect, the tax shall be recoverable from each member of the family, each member of the family being jointly and severally liable in respect of the income of the family before the division.

(7) For the purposes of this section, the separate liability of any member or group of members of a Hindu undivided family shall be computed according to his or her share of the property of the divided family allotted to him.

(8) The provisions of this section shall, so far as may be, apply to the imposition and recovery of any fine, interest, penalty or any other sum on the application of a Hindu undivided family for any period up to the date of partition of that family.

Tax assessment in case of a

193. (1) The Excise Commissioner may assess tax on the total income of any person who is authorised to work in Bangladesh as follows, and who leaves Bangladesh during the current financial year or shortly after the expiry of the period of his authorisation and has no intention of returning, on the basis of the total income for that year, namely:-

person leaving Bangladesh

(a) if his tax has been previously assessed, for the period from the date on which he leaves Bangladesh after the end of the previous income year in which the income was assessed; and

(b) If his tax has not been previously assessed, for the full period of his stay in Bangladesh up to the probable date of departure from Bangladesh.

(2) The tax under sub-section (1) shall be determined as follows, namely:-

(a) in respect of each full income year falling within the period referred to in sub-section (1), the rate at which tax would have been levied had the tax been assessed at the appropriate time shall apply; and

(b) In the case of the period between the last completed income year and the probable date of departure, the tax shall be at the rate in force in the financial year in which such tax is assessed and, in respect of such income, the financial year for that period shall be treated as the tax year.

(3) For the purpose of assessing tax under this section, the Excise Commissioner shall issue a notice to the person concerned requiring him to furnish the following information within such period as may be specified in the notice, which shall not be less than 7 (seven) days:

(a) a return containing the total income for each full income year for the period referred to in sub- section (1) in the form and manner in which the return under section 166 is to be filed, together with the other particulars specified in the notice, and in the manner in which the return is to be filed, and

(b) An estimate of the total income for the period from the end of each full income year to the probable date of his departure from Bangladesh.

(4) The notice under sub-section (3) for the assessment of tax shall be given in the manner prescribed for giving notice under section 172, applying as far as possible all the provisions of this Act.

Income tax assessment in case of deceased person

194. (1) Where a person dies, his legal representative shall be liable for the payment of any tax or other payment under this Act in the same manner as if the deceased had not died; and for the purposes of this Act, the legal representative of the deceased shall be deemed to be the taxpayer:

Provided that before treating the legal representative of the deceased as a taxpayer, the Excise Commissioner shall send a notice to the legal representative in that regard.

(2) For the purpose of determining the income of the deceased and collecting tax,-

(a) any proceedings taken against the deceased before his death shall be deemed to have been taken against the legal representative and shall continue from the stage at which the proceedings were at the date of the death of the deceased; and

(b) The same proceedings may be taken in respect of the legal representative as would have been taken in respect of the deceased person while he was alive, and all the provisions of this Act shall be applicable to him in the same manner as soon as may be.

(3) The liability of the legal representative under this Act shall be limited only to the extent of his ability to discharge the liability from the estate of the deceased.

(4) For the purposes of this section and other sections, "legal representative" shall include the executor, administrator and any person administering the estate of the deceased, where the rights, interests and liabilities of the deceased are involved.

Tax assessment on the spot

195. (1) The Excise Commissioner may assess the tax of any person on the spot if the said person-

(a) has taxable income;

(b) There is an obligation to file returns;

(d) Failure to implement or comply with any of the provisions of this Act.

(2) The Tax Commissioner may, within his jurisdiction, delegate the power to assess tax under this section to any Excise Commissioner subordinate to him.

Obstruction in raising questions about tax assessment

196. (1) Notwithstanding anything contained in this Act or any other law in force in Bangladesh, no person or authority other than the Income Tax Authority referred to in section 4, the Tax Appellate Tribunal established under this Act and the Supreme Court of Bangladesh shall be entitled to raise a question on any assessment of tax made under this Act.

(2) If any act is done or any question is raised in violation of the provisions of sub-section (1), it shall be deemed to be null and void and shall have no legal effect.

Time limit for tax assessment

PART 11

Time constraints

197. 121 [(1) Subject to the provisions of sub-sections (2) and (3), the tax assessment or return process shall be completed before the expiry of the following periods, namely:—

(a) In the case of return processing under section 181, the 2 (two) tax years following the end of the tax year in which the return was filed;

(b) the two (2) tax years following the end of the tax year in which an election for audit of a return has been made under sub-section (1) of section 182;

(d) In the case of assessment of tax made under section 235, the 3 (three) tax years following the end of the relevant tax year in which the said income first became assessable.]

(2) Where a notice is issued under sub-section (1) of section 212, the tax may be assessed within 2 (two) years from the end of the year in which the notice under section 212 is issued.

(3) Notwithstanding anything contained in this section, any action taken under section 213, 285, 289, 292, 294 or 295, or any order or assessment made for the assessee or any other person, as the case may be, or in the case of a firm, any assessment made for the firm, as a result of the assessment made for the firm or any agreement made under section 304, shall be notified to the assessee within 30 (thirty) days of the date on which the said order or assessment is notified and any such revised order shall be notified to the assessee within 30 (thirty) days of the date on which the said order or assessment is notified.

(4) In case the tax assessment order is set aside by any authority, the tax shall be assessed within 60 (sixty) days from the date on which the said order is notified.

(5) Where any income of a taxpayer is excluded from the total income for any tax year by an order under section 213, 285, 289, 292, 294 or 295, the assessment of tax on that income for any other tax year shall, for the purposes of this section, be deemed to have been made in consequence of, or for the purpose of giving effect to, any decision or direction contained in that order.

(6) Where any income has been excluded from the total income of any person by an order under section 213, 285, 289, 292, 294 or 295 and is assessed as income of another person, then, for the purposes of this section, the assessment of tax on such income of the latter person shall be deemed to have been made in consequence of or in order to give effect to the decision or direction of that order.

(7) If the Excise Commissioner fails to issue any order or direction within the period specified in sub-section (3), such failure of the Excise Commissioner shall be deemed to constitute misconduct.

PART 12

Data collection

CHAPTER ONE

Information collection by income tax authorities

Definition 198. For the purposes of this Part,-

(1) “Investigating Income Tax Authority” means-

(i) Director General (Inspection);

(ii) Director General (Central Intelligence Cell);

(e) the Commissioner of Taxation; and

122

[(iv) Inspector Additional Commissioner of Taxes or Excise Commissioner or Tax Inspector

subject to the permission of the Excise Commissioner;]

(2) “Revenue related record” means any accounting books, documents, electronic records and systems.

Application of regulations in

199. Without prejudice to the application of other provisions of this Act, the Income Tax Authority

data collection may apply the provisions set out in this Chapter.

Data collection 200. (1) For the purposes of this Act, any authority not under the Excise Commissioner may, by notice in writing, call for such information from any person, in such manner and by such means as may be specified in the notice, and within such time as may be specified in the notice, as it may consider necessary for the purpose of carrying out its functions under this Act.

(2) Any income-tax authority not under the Excise Commissioner may, by notice in writing or by electronic means and in such manner and manner as may be specified in the notice, and within such time as may be specified in the notice, call for such information from any person as may be necessary or relevant to any pending investigation or proceeding under this Act:

Provided that no income tax authority subordinate to the Commissioner of Taxation shall be able to call for any information from any bank or financial institution without the approval of the Commissioner of Taxation.

Automatically provide information

201. (1) The Board may, by notification in the Official Gazette, order any authority, person or entity to furnish to the Board or any other income-tax authority in digital form any information relating to the assets, liabilities, income, expenditure and transactions of any class of person under its control.

(2) The provision of information in digital form as referred to in sub-section (1) shall include the following matters, namely:-

(a) Uploading data to the Board's system;

(b) Data sharing in the Board's digital or electronic systems;

Business record inspection

202. Any income tax authority may compel any person or institution to collect or provide copies of any business record, if necessary, which may be necessary or relevant for any pending investigation or any proceeding under this Act.

Income source search

203. If any Income Tax Authority considers it necessary for the investigation or inquiry into any pending proceedings under this Act, it may inquire into any information relating to the source of income of any person concerned with such proceedings and may compel the collection or production of copies of information and records relating to the source of income.

Search and investigation

204. (1) The investigating income-tax authority may make such inquiry and investigation as it may consider fit in respect of any person or any other person who is assessable to tax under this Act or who, in its opinion, is within the scope of assessment of tax or may direct such person or institution or any other person or institution concerned in such inquiry and investigation to appear before it at such time and place as it may direct to furnish or to take steps to furnish any information or documents relating to income under the control of such person or institution.

(2) The Board shall, for the purpose of this section, prepare a manual to be followed for the purpose of investigation and inquiry.

CHAPTER TWO

Survey, search and seizure

Survey capabilities

205. (1) For the purpose of surveying the tax liability of any person under this Act, the Board or the Commissioner of Taxes may delegate to any Income-tax Authority the power to enter and survey any place or premises where business is carried on or income is derived by way of rent.

(2) The Income-tax Authority shall enter the place mentioned in sub-section (1) in the following cases, namely:-

(a) if the business is carried on at that place, then only during the hours when that place is open for business; and

(b) In any other case, only after sunrise and before sunset.

(3) On entering the place mentioned in sub-section (2), the Income-tax Authority shall take the following steps, namely:-

(a) Collecting extracts or copies from the records relating to income, assets and liabilities which have been inspected by him, giving the marks of inspection on those records;

(b) Seizure and custody of records related to income inspected by it, after recording the reasons;

(d) examine a person on oath, if relevant for any proceedings under this Act; and

(e) Any other necessary investigation.

(4) Every owner, salaried employee or other person carrying on any business, or any person residing in any place or premises in respect of which the Income-tax Authority may exercise any authority or power under sub-section (1), shall assist the Authority in exercising such authority or power in the following manner, namely:-

(a) The Authority shall take necessary measures to perform the following functions:

(i) inspect and enter records relating to income, assets and liabilities; or

(ii) to scrutinize and examine cash, stock or any other valuable goods or objects received in such place or premises; and

(b) Provide necessary information to the Authority on any matter appropriate or relevant to any activity under this Act.

(5) A statement made by a person under clause (d) of sub-section (8) may be used as evidence in any proceedings under this Act.

(6) In the application of this section, the Income-tax Authority shall not remove any cash, stock or other valuable articles or objects from the place or premises entered.

(7) The Income-tax Authority shall not keep records relating to income seized under this section in the custody of the Commissioner of Taxes for a period exceeding 1 (one) month without the approval of the Commissioner of Taxes.

(8) Any income-tax authority other than a tax inspector shall have the power under sub-section (1) of section 223 if any person fails to perform or fails to comply with the following functions, namely:-

(a) Providing assistance to the Income Tax Authority for the examination of accounts or other documents;

(b) to permit the examination or testing of any cash, stock or other valuables or objects;

(d) Providing records or statements.

Power of search and seizure

206. (1) The investigating income-tax authority may exercise the power of search and seizure of any person as follows if the Board or the investigating income-tax authority has reason to believe on the basis of any information that-

(a) any person who has been required by any summons or notice under this Act to furnish or produce records relating to income, assets and liabilities, but such person has failed to furnish or produce the same;

(b) the person referred to in clause (a) is unlikely to provide or produce records relating to income, assets and liabilities; or

(c) has failed or is likely to fail to produce or produce any income-related records for the purpose of issuing or producing any summons or notice under this Act.

(2) The investigating Income-tax Authority may delegate the responsibility of conducting searches and seizures under this section to any officer not below the rank of Assistant Commissioner of Taxation (hereinafter referred to as the empowered officer).

(3) Notwithstanding anything contained in any other law for the time being in force, the authorized officer may take the following steps, namely:-

(a) enter any building, place, ship, vehicle or aircraft, and search, where there is reason to suspect, any records relating to income referred to in sub-section (1) or kept in custody, money, precious metals, jewellery or other valuable articles or objects;

(b) Breaking open any door, box, locker, safe, cupboard or other container for the purpose of entry or search, if the key to open it is not available;

(c) search any person who has left or is about to leave any building, place, ship, vehicle or aircraft, or is inside it, if there is reason to suspect that such person has concealed its accounts, documents, electronic records and systems, money, precious metals, jewellery or any other valuable article;

(d) Seizure of income-related records, money, precious metals, jewelry or other valuable items or things found as a result of the search;

(e) to place an identification mark or assign an electronic number to the income-related record or to make or attempt to make a summary thereof or to make a copy thereof;

(f) making notes or preparing inventories of money, bullion, jewellery or other valuable articles or goods; and

(g) Retrieving information, images or any data stored in electronic records and systems or accessing them by breaking password security or copying or analyzing income-related information.

(4) The authorized officer may request the assistance of any police officer or any government officer or any professional expert for all or any of the purposes mentioned in sub-section (2); and may request the services of any such officer or professional expert, and if assistance is so requested, it shall be the duty of such officer or professional expert to provide the assistance requested.

(5) Where it is not possible to seize any income-related record, money, precious metals, jewellery or other valuable articles or things, the Authorised Officer may by written order direct the owner or any person in his possession or control not to remove, divert or otherwise dispose of them without his prior permission; and the Authorised Officer may take such steps as may be necessary to enforce the order:

Provided that if the owner or any person fails to comply with the provisions of this sub-section without any reasonable cause and if the precious metal, jewellery, valuable article or thing is transferred, removed, diverted or otherwise disposed of, then such owner or person may be identified by the Excise Commissioner as the owner and such person shall be deemed to be a tax defaulter under this Act.

(6) A statement made by an authorized officer on oath during the examination of any income- related record, money, precious metals, jewellery or other valuable articles or things and while in the possession or control of any person, may be used as evidence in any proceedings under this Act.

(7) Where any income-related record, money, precious metals, jewellery or other valuable articles or objects are found in the possession or control of any person during a search, it shall be deemed to be-

(a) Income related records, money, precious metals, jewelry, objects or materials owned by that person;

(b) the contents of the income records are true; and

(c) The signature or handwriting given on any such book of accounts or documents shall be deemed to be the signature or handwriting of the person whose signature or handwriting it should be.

(8) Any record relating to income from the custody of a person from whose custody any such record is seized under sub-section (2) shall be copied or abstracts thereof taken from him in the presence of the person or any other person appointed by him at such place and time as may be fixed by the authorized officer.

(9) The Board may make rules on the following matters, namely:-

a) Regarding the procedure to be followed by the authorized officer-

(i) free access for the purpose of searching any building, place, ship, vehicle or aircraft to which there is no right of access; and

(ii) for the safe custody of seized goods; and

(b) any other matter relating to search and seizure under this section.

(10) Subject to the provisions of this Act, the provisions of the Code of Criminal Procedure, 1898 (Act No. V of 1898) shall , so far as may be, apply to search and seizure, subject to rules made by the Board in this behalf .

(11) For the purposes of this section, the term "proceedings" means any proceedings under this Act in any year which are pending or completed on or before the date authorized for any search under this section and shall include all proceedings under this Act which are commenced in any year after such date.

Transfer of records related to seized income to

207. (1) If the authorized officer and the Excise Commissioner are separate persons, the authorized officer shall hand over the records relating to the income seized under section 206 to the Excise Commissioner within 30 (thirty) days from the date on which they are recorded.

the Excise Commissioner

(2) The authorized officer and the Excise Commissioner under sub-section (1) shall be considered as separate persons, if the authorized officer has no authority over the person from whom any book of accounts or documents are seized.

(3) If the authorized officer and the Excise Commissioner are the same person, the records relating to the income referred to in sub-section (1) shall be deemed to have been handed over to the Excise Commissioner on the date on which they are seized.

(4) When records relating to the income of a person are seized from another person, the authorized officer shall hand over the seized material to the Excise Commissioner having jurisdiction over that person within 30 (thirty) days from the date of seizure.

Time limit for preserving records related to seized income

208. (1) Subject to the provisions of sub-section (2), the records relating to the income seized under section 206 shall not be kept in the custody of the authorized officer for a period exceeding 60 (sixty) working days from the date of seizure.

(2) Subject to the approval of the investigating Income Tax Authority, the authorized officer may retain the income related records for an extended period and the investigating Income Tax Authority shall not extend the retention period of the relevant records beyond 30 (thirty) days after the completion of the proceedings under this Act in any year.

(3) Any person having legal title to records relating to income seized under section 206, if aggrieved, may file an application against the extension of the period of such preservation, and the Board shall, after giving the applicant a reasonable opportunity of being heard, pass such order as it may consider fit.

Disposal of seized assets

209. (1) Where any money, precious metals, jewellery or other valuable articles or things (hereinafter referred to as assets) seized under section 206 is handed over to the Excise Commissioner, the procedure laid down in sub-section (2) shall be followed.

(2) The Excise Commissioner shall give the person concerned a reasonable opportunity of being heard and shall then undertake the following necessary investigations within 90 (ninety) days of the seizure of the property:-

(a) make an estimate of the undisclosed income, including income from undisclosed assets, and make a summary decision based on the information received, in his opinion the best decision;

(b) Calculation of the amount payable, which shall be the sum of the following items, namely:-

(i) the tax payable and any other amount based on the estimate in clause (a); and

(ii) The amount required to meet the existing tax liability of such person for which he is a tax defaulter or is considered to be a tax defaulter.

(3) For the purposes of sub-section (2), any proceedings shall be excluded from the computation of the period of 90 (ninety) days by reason of any time limit, order or prohibition prescribed under this section.

(4) Where it is not possible to determine whether the property or part thereof seized for the purpose of computing the total income and tax liability relates to any income year or years, the Excise Commissioner may treat the said property or part thereof, as the case may be, as being relevant to the income year of the person in respect of which the property has been seized.

(5) After completing the proceedings under sub-sections (2) and (3), the Excise Commissioner may, with the approval of the Commissioner, issue an order to the person concerned to pay the amount specified in clause (b) of sub-section (2).

(6) Where the person concerned pays any amount or takes satisfactory action, the Excise Commissioner shall release the seized property or take such other action as he considers appropriate.

(7) In cases where no satisfactory arrangements have been made for the payment of the amount due under sub-section (2), then—

(a) the said person shall be deemed to be a taxpayer for the payment of the unpaid amount of tax; and

(b) The Commissioner of Excise may retain in custody such amount of property seized under section 206 as is sufficient to recover the unpaid portion of tax.

(8) If the Excise Commissioner is satisfied that any property or any part thereof seized under section 206 is in the possession of any person or any other person, he may take action against that person under this section and all the provisions of this section shall be duly applicable.

(9) Any person who is aggrieved by the amount of money prescribed under sub-section (4) may raise an objection in writing to the Commissioner of Taxes, and the Commissioner shall, after giving the applicant an opportunity of being heard, pass an appropriate order.

Arrangement of occupied property

210. (1) Where the property reserved under sub-section (7) of section 206 is money only, or a part of the amount is money and the other part is other property, then—

(a) the Commissioner of Excise shall first apply the said amount to pay the amount due to the person who is deemed to be a liable taxpayer under this sub-section; and in such case the amount so paid by that person shall be exempt from liability; and

(b) In any case, after the expenditure of the money under clause (a), any part of the said amount remains, the Excise Commissioner may recover the remaining unpaid amount by selling any movable property other than the money through the Tax Recovery Officer; for this purpose he shall have all the powers of a tax recovery officer under this Act.

(2) Nothing in sub-section (1) and nothing in sub-section (7) of section 206 shall prevent the recovery of any amount due from the taxpayer under this Act by any means.

(3) If any assets or proceeds remain after payment of the liability referred to in sub-section (7) of section 206, they shall be immediately transferred to the person from whom the custody of the assets was taken.

CHAPTER THREE

Summons for hearing

Power to take evidence under oath, etc.

211. (1) For the purposes of this Act, the Excise Commissioner, Additional Excise Commissioner, Tax Commissioner, Director General (Central Intelligence Cell), Tax Commissioner (Appeals) and the Appellate Tribunal shall have the same powers in the following matters as are conferred on the Court under the Code of Civil Procedure, 1908 (Act No. V of 1908) for the purpose of trying any case, namely:-

(a) Discovery and inspection;

(b) to compel the attendance of any person and to examine him on oath or affirmation;

b) Compel the production of income-related records (including documents immediately preceding or following the relevant income year); and

(d) To form a commission to take testimony.

(2) The Excise Commissioner shall not, without the previous approval of the Commissioner, exercise his power under this section to compel the attendance of any employee of any scheduled bank as a witness or to compel the production of documents relating to the income of that bank.

(3) Any authority referred to in sub-section (1) may seize any income-related documents produced to it in connection with any proceedings under this Act and may detain them for such period as it may consider appropriate.

(4) Excise Commissioner-

(a) shall not seize any document relating to income without recording the reason; or

(b) Without the prior approval of the Chief Commissioner or the Commissioner, no document relating to income shall be retained by him for more than 15 (fifteen) days, excluding holidays.

(5) Any proceedings conducted under this Act before any authority referred to in sub-section (1) shall, for the purposes of section 196 of the Penal Code, 1860 (Act No. XLV of 1860), be deemed to be judicial proceedings under sections 193 and 128.

(6) Any order passed by the Income-tax Authority in any proceedings taken or conducted under this Act shall be deemed to be an order of a civil court.

PART 13

Revenue evasion recovery

Evasion of taxes and other payments

212. Evasion of payment of tax and other amounts.-(1) If, in the course of any audit, assessment of tax or any action taken under this Act or on specific information received from any other source, the Excise Commissioner has reason to believe that any taxpayer has evaded payment of any amount payable under this Act in any tax year, the Excise Commissioner may, by notice in the form prescribed by the Board, issue to that taxpayer:

(a) shall require the filing of returns and applicable statements and documents for the relevant tax year within the period specified in the notice; and

(b) The amount of tax evaded shall be called for payment at the time of filing the return or before.

(2) Excise Commissioner-

(a) If the following conditions are met, an acknowledgement of return will be sent, namely:-

(i) filing the return within the time limit specified in the notice issued under sub-section (1) and following the provisions of that sub-section;

(ii) payment of the amount evaded at the time of filing the return or before; and

(e) The issue for which tax payment has been evaded is clearly mentioned in the return;

(b) If any of the conditions mentioned in clause (a) are not fulfilled, proceed to assess tax under section 183 or, where applicable, section 184.

(3) The Excise Commissioner shall, before issuing a notice under sub-section (1), obtain written approval from the Inspector Additional Excise Commissioner, in cases where-

(a) the return for the relevant tax year has been filed in compliance with the provisions of sub- section (1) of section 180; or

(b) The assessment of tax for the relevant tax year has been completed under any other provision of this Act.

(4) The Excise Commissioner may issue a notice under sub-section (1)—

(a) at any time if no return has been filed and no tax has been assessed in the relevant tax year;

(b) In other cases, from the tax year in which the notice is issued to the sixth tax year preceding it: However, there is a condition that,

(i) If a new tax is assessed in any tax year under any provision of this Act, the period referred to in this section shall commence to be calculated from the end of the tax year in which the new tax is assessed;

(ii) In case any undisclosed property of a person has been acquired more than the sixth tax year mentioned in clause (b), then such property shall be deemed to have been acquired in the said sixth tax year.

(5) In computing the period of limitation for the purpose of assessing tax or taking any other action under this Act, if the court, tribunal or any other authority stays the assessment of tax or any other action for any period, that period shall be excluded from the computation.

(6) Notwithstanding anything contained in sub-section (4), if any assessment or order is cancelled, set aside, revoked or amended, the Income-tax Authority concerned may commence proceedings from the stage of proceedings next to that at which the cancellation, set aside, revoked or amended was made, and it shall not be necessary to re-issue or re-submit any notice already issued or re-issued or any return, statement or other information already furnished or, where applicable, filed under any provision of this Act.

(7) In the case of a taxpayer whose tax assessment has already been completed, the assessment of tax under sub-section (2) for the relevant tax year shall be limited to the issues mentioned in the notice issued under sub-section (1).

(8) The mere fact that the proceedings under sub-section (2) have already been completed in any tax year shall not prevent the Excise Commissioner from taking proceedings under this section for that tax year.

(9) For the purposes of this section,-

(a) It shall be deemed that the payment of any sum payable under this Act has been evaded if—

(i) the assessment of tax on any income or part thereof has been evaded;

(ii) The amount of income has been understated;

(e) Additional loss, deduction, allowance or relief has been claimed in the return;

(iv) the tax liability or any other amount has been understated or understated by concealing or falsely stating any income or by concealing or falsely stating any asset, liability or expense in the return filed under section 167 or 168;

(v) taxable income has been understated, or tax has been imposed on income at a rate lower than the actual tax rate;

(v) Taxable income has been treated as tax exempt income ;

(vi) Income has been determined by allowing excessive discounts or losses or depreciation allowances or any other allowance under this Act; or

(a) the tax or other amount payable under this Act has been under-calculated or paid due to under-assessment of the basis;

(b) The relevant tax year is the tax year in respect of which any amount payable by a taxpayer under this Act has been evaded.

Power of the Inspector Additional Commissioner of Taxes in the matter of rectification of erroneous orders

213. (1) If the Inspector Additional Commissioner of Taxes considers that the order passed by the Excise Commissioner is defective and is contrary to the interest of revenue, he may call for and examine the records of the proceedings conducted under this Act and, after giving the taxpayer an opportunity of being heard and after making or causing to be made such inquiry as he may consider necessary, may issue such order as he considers just in the circumstances, including the order to extend, vary or cancel the tax assessment order and issue an order to assess the tax afresh.

(2) If any higher income tax authority exercises the powers of the Excise Commissioner under section 12, the Excise Commissioner shall conduct the activities mentioned in sub-section (1).

(3) No order under sub-section (1) shall be issued to amend any order after the expiry of 4 (four) years from the date of its issuance.

(4) Nothing in section 212 shall, where applicable, prevent the taking of any action under this section.

(5) An order under this section shall be deemed to be defective if the Inspecting Additional Commissioner of Taxes is of the opinion that—

(a) The income section in the order has been wrong;

(b) in the issuance of the order, any provision of this Act has been misinterpreted ;

(d) An order has been issued accepting the exemption claimed without conducting any investigation into it;

(e) the order does not comply with or follow any order, direction or instruction issued by the Board under section 10; or

(f) It is clearly apparent from the record that the order is defective.

PART 14

Collection, refund and adjustment of dues

CHAPTER ONE

Collection of outstanding taxes

Notice of claim 214. (1) If any amount of tax is payable as a result of any order or proceeding under this Act, the Excise Commissioner shall issue to the said taxpayer (including any other person liable for payment of tax) a notice of demand in the prescribed form, specifying the amount of tax payable, the time limit for payment and the manner of payment, together with a copy of the tax assessment order.

(2) Where any amount of tax is refundable in respect of any order or proceeding under this Act, the Excise Commissioner shall, by notice referred to in sub-section (1), inform the taxpayer of the amount of money refundable and the arrangements for making such refund to him, unless such refund is adjusted against the tax due in accordance with the provisions of section 225.

(3) The Excise Commissioner shall not adjust any refund without giving the taxpayer an opportunity of being heard.

(4) If a taxpayer against whom a notice of demand has been issued under sub-section (1) applies to the Excise Commissioner before the expiry of the period for payment specified in the notice, the Excise Commissioner may, having regard to the circumstances of the case, extend the period for payment to such extent as he considers necessary and, where applicable, allow payment in instalments subject to the payment of interest on late payment.

(5) If the amount due is not paid within the period specified in the notice of demand issued under sub-section (1) or, where applicable, within the extended period under sub-section (4), the taxpayer shall be deemed to be a defaulting taxpayer.

(6) If the taxpayer files an appeal under this Act against the order assessing the tax imposed or against the amount of tax specified, the Excise Commissioner shall not treat the taxpayer as a defaulting taxpayer until the appeal is disposed of.

(7) If a taxpayer is permitted to pay in installments under sub-section (4), if the taxpayer fails to pay any installment within the specified period, he shall be deemed to be in default for the amount unpaid on that day and for the other installment or installments and the installment which he has failed to pay shall be deemed to have been due on the day fixed for payment of that installment.

(8) If a taxpayer is assessed tax on income earned outside Bangladesh and any prohibition or restriction is imposed on the remittance of money from that country to Bangladesh, then the Excise Commissioner shall not treat the taxpayer concerned as a defaulting taxpayer for the income tax imposed on the amount of income which has not been able to be brought into Bangladesh due to the imposition of such prohibition or restriction, until the said prohibition or restriction is removed.

(9) For the purposes of this section, the income of a taxpayer shall be deemed to have been brought into Bangladesh only when such income has been or could have been used to meet any actual expenses of the taxpayer outside Bangladesh or has been brought into Bangladesh in the form of capital or in any other manner.

Direct collection and refund

215. (1) Tax due from the taxpayer may also be collected by direct transfer from the taxpayer's bank account to the government's bank account.

(2) The amount due to the taxpayer shall be refunded through electronic transfer to the taxpayer's bank account.

(3) Notwithstanding anything contained in this Act or any other Act, if a taxpayer files a return under the self-assessment method and a refund is generated as a result of the processing of the return by the Excise Commissioner, the refund shall be electronically transferred to the bank account mentioned in the taxpayer's return within 60 (sixty) days.

(4) The Board may formulate rules specifying the method, conditions, qualifications and limits for the collection or refund of tax through bank transfer as mentioned in sub-sections (1), (2) and (3).

Certificate for tax collection

216. (1) If any taxpayer is in default or is deemed to be in default in the payment of arrears of tax, the Excise Commissioner may send a certificate under his signature to the Tax Recovery Officer for the purpose of recovery of the arrears, specifying the amount due from the taxpayer; and such certificate may be issued notwithstanding any other action taken for the recovery of the arrears.

(2) Any certificate under sub-section (1) may be sent to the following Tax Recovery Officers, namely:-

(a) the Tax Recovery Officer under whose jurisdiction the taxpayer carries on business or where the taxpayer has its principal place of business;

(b) the Tax Recovery Officer under whose jurisdiction the taxpayer resides or any immovable or movable property of the taxpayer is situated; or

(c) Any taxpayer assessable to tax by the Excise Commissioner, over whom the concerned Tax Recovery Officer has jurisdiction.

Procedure for recovery by Tax Recovery Officer

217. (1) Notwithstanding anything contained in any other law for the time being in force, the Tax Recovery Officer shall, after receiving a certificate under section 216, recover from the taxpayer the amount specified in the certificate in accordance with the rules made by the Board in this behalf, in one or more of the following ways, namely:-

(a) by sale of any immovable or movable property of the taxpayer subject to seizure, attachment or attachment or by sale without seizure, attachment or attachment;

(b) by arresting the taxpayer and detaining him in prison;

(2) The Tax Recovery Officer, while recovering the amount specified in the certificate sent to him under sub-section (1), may recover from the defaulting taxpayer, in addition to such amount, any expenses and charges incurred in connection with the recovery of outstanding tax, including the money spent on issuing any notice or warrant of arrest, in the same manner.

(3) If a Tax Recovery Officer to whom a certificate has been forwarded under section 216 is not able to recover the entire amount by selling the immovable and movable property of a taxpayer under his jurisdiction, but he has information to the effect that the property of that taxpayer is situated in the area under the jurisdiction of another Tax Recovery Officer, then that Tax Recovery Officer may send the certificate to the person in whose area the property of that taxpayer is

situated or the taxpayer resides, and the officer who has received the certificate shall proceed to recover the remaining unpaid amount under this Chapter as if he had received the certificate from the Excise Commissioner.

Power to revoke certificates and suspend operations

218. (1) Notwithstanding the issuance of a certificate for the purpose of recovery of tax under section 216, the Excise Commissioner reserves the power to withdraw it or to correct any clerical or arithmetical error by giving notice to the Tax Recovery Officer.

(2) If the amount of tax for which a certificate is issued is reduced by an appeal or any other proceeding under this Act, but further proceedings under this Act are necessary for the final settlement of the order, then the Excise Commissioner shall suspend the recovery of an amount equal to the amount reduced from the certificate until the further appeal or any other proceeding in the case remains pending.

(3) If, after the issue of a certificate for the purpose of recovery of arrears of tax, the amount of the outstanding claim is reduced by appeal or any other proceedings under this Act and the order in respect of which the appeal or any other proceedings under this Act is final and conclusive, the Excise Commissioner shall make the necessary corrections or, where applicable, withdraw the certificate.

(4) The Excise Commissioner shall inform the collecting officer of the order regarding cancellation, correction of errors, suspension of proceedings, withdrawal or, where applicable, correction of the tax collection certificate.

The validity of the certificate of collection is not in dispute.

219. When the Excise Commissioner sends a certificate to the Tax Recovery Officer for the purpose of collecting tax under section 216, the taxpayer shall not raise any objection to the Tax Recovery Officer as to the correctness of the assessment of tax and the Tax Recovery Officer shall not entertain any objection as to any ground of the certificate.

Tax collection through the District Collector

220. (1) The Excise Commissioner may send a certificate under his hand to the Collector of the district in which his office is situated or to the Collector of the district in which the taxpayer resides or owns property or carries on business, stating the amount of money due, and the Collector, on receipt of such certificate, shall arrange for the recovery of the amount of money due from the taxpayer as mentioned in the certificate, as if it were an arrears of land revenue.

(2) Without prejudice to any other power of the District Collector, the District Collector shall have the same power to recover the arrears specified in the certificate sent to him under sub-section (1) as the Civil Court has under the provisions of the Code of Civil Procedure, 1908 (Act No. V of 1908) to recover money under a decree.

(3) The Excise Commissioner may at any time withdraw the certificate sent to the District Collector under sub-section (1) and all proceedings relating to the certificate shall be cancelled as a result of such withdrawal.

(4) The withdrawal of a certificate shall not prejudice the recovery of any amount due by the Collector prior to such withdrawal, in which case the certificate shall be deemed not to have been withdrawn for an amount equal to the amount recovered; or there shall be no impediment in the recovery of the amount recoverable at the time of withdrawal of the certificate by issuing a new certificate.

Other methods of collection

221. (1) Notwithstanding the issue of a certificate under section 216 or section 220 for the purpose of recovering arrears of tax, the Excise Commissioner may recover the same in the manner mentioned in sub-section (2) or (3).

(2) For the purpose of recovering such tax claim from a taxpayer not pending in any appellate forum, the Excise Commissioner may, after giving the taxpayer an opportunity of being heard, with the prior approval of the Commissioner, prohibit the transfer of any goods and services from the place of business of the taxpayer until the said tax claim is recovered and may also close the place of business or take any satisfactory action for the recovery of such tax.

(3) For the purpose of recovering the tax due from the taxpayer, the Excise Commissioner may, by notice in writing, direct any of the following persons to deposit or deposit with deduction such amount of money into the Government treasury within such period as may be specified in the notice and, as the case may be, direct the further course of action to be taken in the case of transfer of money or property, namely:-

(a) to whom the taxpayer owes or may owe any money or goods;

(b) who controls the holding or receipt or disposal of money or goods owned by the taxpayer or who may subsequently control the holding or receipt or disposal of money or goods owned by the taxpayer;

(d) who, as an agent of a non-resident taxpayer, controls or may subsequently control the holding, receipt or disposal of any assets or goods on behalf of the non-resident;

(e) who is responsible for paying any amount of money in the income from employment of the taxpayer; or

(f) Whoever pays any amount to the taxpayer in the “Income from Rent” section .

(4) Where any person pays any amount under the provisions of sub-section (3), such payment shall be deemed to have been made by him under the control of the taxpayer and the person shall be discharged from the liability of the taxpayer to the extent of the amount of money received and given a receipt by the Commissioner of Excise from such person.

(5) If any person, despite receiving a notice under sub-section (3), fails to pay or deduct the amount as per the notice, he shall be deemed to be a defaulting taxpayer for the amount mentioned in the notice and such legal action may be taken against him for the recovery of the amount as the arrears of tax are due to him and in such case the provisions of this Chapter shall apply accordingly.

(6) The Excise Commissioner may at any time amend or withdraw a notice issued under sub- section (3) or extend the time for payment of any amount under such notice.

(7) The Excise Commissioner shall, by notice, direct the person responsible for the supply to disconnect or close the connection of the gas, electricity, water or other services of the taxpayer for the purpose of collecting the arrears of tax and the person responsible for the supply of gas, electricity, water or other services shall disconnect or close the said services within 21 (twenty- one) days of receipt of the notice under this section.

(8) If any person fails to comply with a notice received under sub-section (6), that person shall himself be deemed to be a defaulting taxpayer and shall be personally liable for the payment of the outstanding tax claim.

(9) Where any person has disconnected or closed the connection of any gas, electricity, water or other service in compliance with a notice received under sub-section (7), he shall restore the connection of such service after obtaining permission from the Excise Commissioner.

(10) Where the Commissioner directs that the tax shall be collected in the same manner as is used for the collection of arrears of municipal tax enforceable in that area or of local tax levied under any law applicable in any part of Bangladesh or of any other law in force in Bangladesh, the Commissioner of Excise shall proceed in the same manner for the collection of arrears of tax.

(11) The Commissioner shall determine the powers and duties to be exercised by any authority under sub-section (10) for the purpose of collecting municipal tax, local tax or other tax through any procedure applicable under any statutory law or through any procedure applicable for the purpose of collecting tax under the Value Added Tax and Supplementary Duty Act, 2012 (Act No. 47 of 2012) , the Customs Act , 1969 (Act No. IV of 1969).

Simultaneous measures to collect taxes

222. The existence of any tax collection activity under any other law for the time being in force or under any section or provision of this Act shall not prevent the taking of any other tax collection activity under any other section or provision of this Act or any other law.

CHAPTER TWO

Interim blockade or attachment

Interim freezing or attachment of property

223. (1) In the course of carrying out the functions under this Act, where the Director General (Central Intelligence Cell) or the Commissioner has specific information to the effect that any person has concealed information relating to his income or investment, he may, by order in writing, direct any person who is for the time being in possession of any money, bullion, ornaments, financial documents, financial assets, valuables or any other property not to remove, transfer or otherwise dispose of it without the prior permission of the authority making the order.

(2) An order under sub-section (1) shall have no effect after the expiry of one year from the date of its issue.

(3) The Income Tax Authority referred to in sub-section (1) may, subject to the approval of the Board, extend the said period:

Provided that the period of extension shall in no case exceed 1 (one) year in total.

(4) In computing the period referred to in sub-sections (2) and (3), if the Court suspends for any period the order made under sub-section (1), that period, if any, shall be excluded from the computation.

CHAPTER THREE

Refund and reconciliation

Right of extradition

224. (1) Where any person satisfies the Commissioner of Excise that the amount of tax paid by him or on his behalf in any year or the amount of tax deemed to have been paid by him or on his behalf is more than the amount of tax required to be paid by him under this Act in that year, he shall be entitled to a refund of the excess amount paid.

(2) Where the income of any person is included in the total income of any other person under any provision of this Act, such other person shall be entitled to a refund under this Act in respect of such income alone.

Claims Adjustment and Refund

225. (1) Where any amount is due to any taxpayer for any period under the provisions of this Act, the Income-tax Ordinance, 1984 (Ordinance No. XXXVI of 1984), the Gift Tax Act, 1963 (Act No.

XIV of 1963) or the Donations Act, 1990 (Act No. 44 of 1990) or the Wealth Tax Act, 1963 (Act No.

XV of 1963), the said arrears shall be adjusted before the amount refundable to that taxpayer is paid.

(2) Where an adjustment is made to the amount refundable against any outstanding dues for any period, the adjusted amount shall be deemed to have been paid to the taxpayer and the Excise Commissioner shall duly record it in the tax records of the taxpayer to this effect.

Refund claim 226. If any amount becomes refundable as a result of any order or proceeding under this Act, the taxpayer may claim the refund in the prescribed manner if the refundable amount is not electronically transferred to the taxpayer's bank account.

Refund claim on behalf of a deceased or incapacitated person

227. If a person is unable to claim or receive the refund of money due to him by reason of death, disability, bankruptcy, dissolution or any other cause, his legal representative or trustee, guardian or, where applicable, the receiver may claim or receive the said refund for the benefit of that person or his estate.

No question may be raised regarding the correctness of tax assessment, etc.

228. In the case of a claim for a refund under this Chapter, no claimant shall be entitled to raise any question as to the correctness or validity of any tax assessment order or as to any other matter which has been final and conclusive, or to request reconsideration of the matter, and the claimant shall not be entitled to any remedy other than a refund of the amount due for overpayment of tax.

Refund based on appeal order

229. If any amount is refundable to a taxpayer under any appeal order or any other proceeding taken under this Act, and the amount is not adjusted against the tax payable or is not considered as paid in accordance with the provisions of section 225, then the Excise Commissioner shall refund the amount to the taxpayer within 60 (sixty) days from the date on which the tax became refundable to the taxpayer, even if the taxpayer does not present any claim in this regard.

PART 15

Prevention of tax evasion

CHAPTER ONE

General provisions regarding the prevention of tax avoidance

Definition 230. For the purpose of this chapter,-

(1) The term “tax benefit” shall include the following, namely:-

(a) to avoid or reduce, directly or indirectly, income tax;

(b) directly or indirectly, to relieve any person from liability to pay income tax, or from potential or foreseeable liability to pay future income tax;

(c) directly or indirectly, to avoid, postpone or reduce any tax liability, or any potential or foreseeable liability for future income tax;

(d) Delay in payment of income tax;

(e) Avoidance of the obligation to deduct or collect tax at source and deposit such tax in the government treasury;

(2) “Arrangement” means any enforceable or enforceable agreement, contract, plan or arrangement and all such steps and transactions by which it is given effect;

(3) “Abuse of tax system” means any arrangement, whether carried out by the person affected by it or by any other person, whether through

(a) which, in the absence of this section, directly or indirectly creates one or more tax benefits unless the arrangement is reasonably adopted or created for a bona fide purpose other than the purpose of obtaining any tax benefit; or

(b) which is part of a system of arrangements and which, in the absence of this section, directly or indirectly creates one or more tax benefits unless the system is reasonably adopted or created for a purpose other than to obtain a tax benefit.

Tax benefit adjustment

231. (1) Where, in the course of any proceedings, it appears to the Excise Commissioner that any taxpayer has availed of tax benefits by abusing the tax arrangement in any income year, the Excise Commissioner may, by following the procedure mentioned in this section and with necessary adjustments, take action against the tax benefits availed by such abuse.

(2) The coordination referred to in sub-section (1) shall include the following matters, namely:-

(a) Increasing income;

(b) Tax liability correction;

(d) Revision of allowances, concessions, etc.;

(e) Any other order withdrawing tax benefits.

(3) Any adjustment under this section shall have effect for all purposes under this Act.

Coordination method

232. (1) For the purpose of taking action against tax benefits, the Excise Commissioner shall issue a notice to the taxpayer specifying the following matters, namely:-

(a) the Commissioner of Excise has reason to believe that the taxpayer has obtained tax benefits through misuse of the tax system;

(b) Where applicable, a description of the measures it intends to take, including a statement of the purpose of the coordination;

(d) To present the necessary statements, documents and information for making a decision on receiving tax benefits.

(2) The taxpayer shall be given an opportunity to be heard in the case of adjustment of tax benefits and a minimum of 30 (thirty) days shall be given to the taxpayer from the date of notification of the notice of hearing issued to the taxpayer until the date of the hearing.

(3) The Excise Commissioner shall, after considering all the information presented to him on the basis of the records, documents filed by the taxpayer and produced during the hearing, issue an adjustment order subject to the prior approval of the Tax Commissioner and shall inform the taxpayer thereof within 30 (thirty) days from the date of issue of the order.

CHAPTER TWO

Transfer Pricing

Definition 233. For the purpose of this chapter,-

(1) “Arms-length price” means the price of a transaction whose terms (such as price, margin or profit sharing) do not differ from those prevailing in comparable uncontrolled transactions between independent entities under comparable circumstances;

(2) “Associate institution” means an institution which is directly or indirectly or through one or more intermediate entities related to another institution by management or control or participation in the capital, and is bound by the following relationship with another institution, namely:-

(a) the same person or persons (including their spouses, successors or predecessors), directly or indirectly or through one or more intermediary entities, participate in the management or control or capital of both institutions;

(b) One company directly or indirectly holds more than 25% (twenty-five percent) of the voting shares of another company;

(c) the same person or persons [including their spouses, successors or predecessors with more than 25% (twenty-five percent) of the voting power of the company], directly or indirectly, hold both shares;

(d) More than half of the total members of the board of directors or governing board of one organization are appointed by another organization;

(e) an executive director or executive member of the governing board of an institution is appointed by another institution or is the same person in the case of both institutions;

(f) More than half of the total members of the Board of Directors or Governing Board of both institutions are appointed by the same person or persons;

(g) The executive director or executive member of both institutions is appointed by the same person or persons;

(h) one institution has the effective power to control the decisions of another institution;

(i) Both institutions are members, subsidiaries or concerns of the same parent company or group;

(j) Both institutions are affiliated on the basis of a relationship of mutual interest as determined by the rules;

(k) The cumulative amount of debt owed by one institution to another institution exceeds 50% (fifty percent) of the book value of the total assets of the lending institution; or

(l) The aggregate amount of guarantees given by one institution on behalf of another institution exceeds 10% (ten percent) of the total book value of the other institution's debt;

(3) “Institution” means any person or undertaking of any kind (including a permanent establishment of such person or undertaking);

(4) “Independent institution” means an institution that is not a subsidiary institution;

(5) “International transaction” means any transaction between two associated enterprises, one or both of which is a non-resident, arising from the purchase, sale or lease of tangible or intangible property or the exchange of services, or the lending or borrowing of money, or any other transaction relating to the profits, income, losses, assets, financial position or economic value of those enterprises, and includes any transaction of C with B if A has control over the transaction, in which case—

(a) B and A are subsidiaries; and

(b) C is not a subsidiary of B;

(6) “Property” means any product, article, material or item, patent, invention, formula, process, design, pattern, know-how, copyright, trademark, trade name, brand name, literary, musical or artistic composition, franchise, license or agreement, method, program, software, database, system, procedure, campaign, survey, survey, forecast, estimate, customer list, technical data, any view or advertising or marketing, any item having intrinsic value or any intangible property;

(7) “Record” means information, documents and records held electronically and shall include;

(8) “Transfer Pricing Officer” means any income tax authority empowered by the Board as a Transfer Pricing Officer;

(9) "Transaction" shall include any arrangement, agreement or act between two or more parties, whether or not formal or in writing or whether or not intended to be enforceable by any legal process;

(10) “Uncontrolled transaction” means any transaction between any institution other than an affiliated institution.

Determining income from international transactions considering arms length pricing

234. Notwithstanding anything contained in Chapter III of Part 15, the amount of any income or expenditure arising from international transactions shall be determined by taking into account the arms length price.

Arms Length Price Calculation

235. (1) The arms length price for international transactions shall be determined by the most appropriate method among the following methods, based on the nature of the transaction, availability of reliable information, activities performed, assets employed, risks assumed or other factors prescribed by law, namely:-

(a) Comparable uncontrolled price method;

(b) resale price method;

(d) Profit split method;

(e) Transactional net margin method ;

(f) Any other method, where evidence can be provided that:

(i) it is not reasonably possible to apply any of the methods mentioned in clauses (a) to (e) to determine the arms length price of an international transaction; and

(ii) The method provides results consistent with arms length pricing.

(2) In cases where any method other than the method mentioned in clause (d) or (f) of sub-section

(1) is applied as the most appropriate method and there are 6 (six) or more entries in the data set of arms length prices, then an arms length range shall be formed by taking the data located between the 30th (thirty) to 70th (seventy) percentile of the said data set and the arms length price shall be determined as per the following conditions, namely:-

(a) If the price at which the actual international transaction took place is within the above- described range, that price shall be considered as the arms length price;

(b) If the price at which the actual international transaction took place is not within the above range, the median of the dataset shall be taken as the arms length price;

(c) If the dataset of arms length prices has fewer than six entries, then the arms length price will be the arithmetic mean of all the values included in the dataset.

(3) The most appropriate method referred to in sub-section (1) for determining the arms length price shall be applied in the manner prescribed by the rules:

Provided that the total income derived as a result of the determination of the arms length price of an international transaction under this section shall not be less than the total income that would have been derived if the price at which the international transaction was actually concluded had been determined or paid.

(4) Where, in assessing any tax under Part 10, the Excise Commissioner is of the opinion that—

(a) the price charged or paid by the taxpayer for the international transaction has not been determined in accordance with sub-sections (1) and (3);

(b) the taxpayer has failed to maintain information, documents or records in accordance with section 237; or

(c) The information or data on the basis of which the arms length price has been determined by the taxpayer is not reliable or accurate,

In that case, the Excise Commissioner may, on the basis of the information or documents or evidence available to him, determine the arms length price of the said international transaction in accordance with the provisions of sub-sections (1) and (3).

(5) In the case of determining the arms length price under sub-section (4), the Excise Commissioner shall, on the basis of the information or documents or evidence available to him, give the taxpayer an opportunity to show cause why the arms length price should not be determined, within the date and time specified in the notice.

(6) Where an arms length price is determined under this sub-section (4) and sub-section (4) of section 236, the Excise Commissioner shall, by written order, commence the computation of the total income of the taxpayer, taking into account the arms length price so determined.

Send to transfer pricing employee

236. (1) Notwithstanding anything contained in section 235,-

(a) Subject to the prior approval of the Board, the Excise Commissioner may refer the matter of determination of arms length price under section 235 to the Transfer Pricing Officer;

(b) Subject to the prior approval of the Board, the Transfer Pricing Officer may initiate the process of determining the arms length price of any international transaction.

(2) Where a reference or proceeding is taken under sub-section (1), the Transfer Pricing Officer shall give notice to the taxpayer to produce or cause to be produced, by the date specified in the notice, the evidence on which the taxpayer relied for the calculation of the arms length price of the international transaction under consideration.

(3) The Transfer Pricing Officer shall, having regard to the evidence submitted to him or any evidence he may call for from the taxpayer or any other person at any particular point, and having regard to all the relevant documents collected by him, determine the arms length price in respect of international transactions by an order in writing in accordance with section 235 and shall send a copy thereof to the Excise Commissioner.

(4) The Excise Commissioner, after receiving a copy of the order under sub-section (3), shall commence the process of computing the total income of the taxpayer as per the arms length price determined by the Transfer Pricing Officer and if during the computation of such income the income of any person who is exempt from tax has to be computed, the adjustment obtained on the basis of the arms length price determined by the Transfer Pricing Officer shall be considered as the income of that person and tax shall be levied on that income at the regular rate.

(5) If the Transfer Pricing Officer, on his own discovery or on the basis of it being brought to his notice by the taxpayer or any other income-tax authority, finds that any order made by him under sub-section (3) contains any error which is apparent from the record, he may rectify such error and accordingly the provisions of section 330 shall, so far as may be, apply in such case.

(6) If any amendment is made under sub-section (5), the Transfer Pricing Officer shall send a copy of his order to the Excise Commissioner who shall then take steps to amend the tax assessment order in accordance with the said order.

Preservation and maintenance of information, documents and records

237. (1) Every person who has international transactions shall preserve and maintain such information, documents and records as may be prescribed by law.

(2) Without prejudice to the provisions of sub-section (1), the Board may, by rules, determine the period for which information, documents and records shall be preserved and maintained.

(3) The Excise Commissioner may, by notice in writing, direct any person to furnish such information, documents and records as may be prescribed by rule under sub-section (1) within the time specified in the notice.

Filing of international transaction reports

238. Every person who has international transactions shall file a statement of international transactions in the form and manner prescribed by rules along with the return.

Submitting reports received from accountants

239. The Excise Commissioner may, by notice in writing, direct any person who has international transactions or who has transactions exceeding 3 (three) crore taka as per the records kept in the books of account for any income year to furnish a report of a Chartered Accountant or Cost and Management Accountant relating to all the information, documents and records submitted under section 237 or any part thereof within the time specified in the notice and in the form and manner prescribed by the rules.

CHAPTER THREE

Other provisions related to prevention of tax avoidance

Tax avoidance through transactions with non-residents

240. Where a business is carried on between a resident and a non-resident and it appears to the Excise Commissioner that, as a result of the close relationship between the two, the business has been so arranged that no profit has been earned by the resident as a result of the business transactions carried on between them, or if it has been earned, it is less than the normal profit expected from the business, the Excise Commissioner shall determine the amount of income that is reasonable for the resident to derive from the business and shall include such determined income in the total income of the resident.

Tax avoidance through asset transfers

241. (1) Any income paid to a non-resident by reason of or as a result of the transfer of any property, whether carried on alone or in combination with associated activities, shall be deemed to be the income of a person who-

(a) acquires any right through such transfer or associated activity by reason of or as a result of which he has the power to enjoy immediately or subsequently the income payable to the said non- resident;

(b) Any money paid or payable by way of loan or repayment of loan or any other money received or entitled to receive at any time by virtue of such transaction or associated activity, but not any money paid or payable as income or as full monetary value.

(2) Income which is payable to a non-resident and is treated as income of the person referred to in that sub-section under sub-section (1) shall be treated as income for all purposes of this Act, whether or not the said income is taxable otherwise than in accordance with the provisions of this section.

(3) The provisions of this section shall not apply if the Excise Commissioner is satisfied that—

(a) such transfer or associated activities did not have one or more purposes of tax avoidance; or

(b) All such transfers or associated activities involved genuine business transactions and did not involve a scheme to avoid tax liability.

(4) Any income which has been treated as income and taxed under sub-section (1) shall not be treated as part of the income of any person and taxed again.

(5) For the purposes of this section, a person shall be deemed to have the power to enjoy income payable to a non-resident if—

(a) such income has actually been calculated to secure the benefit of the said person at any time in any form;

(b) contributes to the appreciation of the value of any property in the possession or interest of that person as a result of the receipt or generation of such income;

(i) from such income; or

(ii) from such money as is or may be realized as a result of or consequentially arising from such income and the assets representing such income;

(d) such person reserves the right to enjoy the benefit of such income, with or without the consent of any other person, by appointment, removal or other exercise of power; or

(e) Such person is able to control, directly or indirectly, the use of such income in any manner.

(6) For the purpose of determining whether a person has the capacity to enjoy income, the results and effects of any transfer and associated activities shall be considered and any benefit of any nature or kind arising to such person at any time as a result of such transfer or associated activities which accrues to that person shall be taken into account.

(7) For the purposes of this section,-

(a) "assets" shall include any property or right of any kind and where the property transferred is a right, "transfer" shall include the creation of such right;

(b) In the case of a transfer, “assistant activity” means any activity carried out by a person in relation to the following matters, namely:-

(i) any transferred assets;

(ii) any income arising from such property; or

(e) any asset directly or indirectly representing any transferred asset, or the accumulated income arising from such asset;

(d) “any asset representing the transferred asset, or any accumulation arising from such asset” shall include a reference to the shares or liabilities of the company or person to whom the transfer of such asset or income or accumulated income has taken place, or a reference to the liabilities of that person; and

(e) Any company incorporated outside Bangladesh shall be considered as non-resident.

Tax avoidance through securities transactions

242. (1) Where the owner of any securities, after having sold or transferred them, repurchases or acquires them, or purchases or acquires securities of the same kind, and as a result of such transaction no interest payable by the owner on the sale or transfer of the original securities is received by the owner, the interest aforesaid shall, for all purposes of this Act, be treated as the income of the owner and not as the income of any other person, whether or not the interest aforesaid is taxed otherwise than in accordance with the provisions of this sub-section.

(2) Where a person has a beneficial interest in any securities for any period of an income year and no income is received by him during that year as a result of the dealings in such securities or the income arising therefrom or the amount received by him as income is less than the amount which

could have been accumulated and deposited from day to day in proportion to the said period from such securities, then the total income arising from such securities during that period shall be treated as the income of that person.

(3) Where a person engaged in the business of dealing in securities, wholly or partly, purchases or acquires securities from another person and resells or transfers the said securities to that other person or sells or transfers to him securities of the same kind and, notwithstanding the interest payable by him on the securities purchased or acquired by him as a result of the said transaction, such income is not considered as his income by reason of the provisions of sub-section (1), then for the purpose of any purpose of this Act, no income or loss arising from such business shall be taken into account in computing any kind of income in respect of that transaction.

(4) The Excise Commissioner may, by notice in writing, within such period as may be specified in the notice, which shall not be less than 28 (twenty-eight) days, give notice to any person to furnish a statement of all securities owned by him or in which such person had a beneficial interest at the time specified in the notice, and to furnish such other information as the Excise Commissioner may consider necessary for the purposes of this section and for the purpose of finalising the tax assessment of interest received on securities.

(5) For the purpose of this section,-

(a) the expression “interest” shall include dividends; and

(b) Notwithstanding any difference in the total nominal value of the securities concerned or in the form in which they are held or the method of transfer, the term "securities" shall mean all securities which give the holder the same right to the same interest and profits of the same person and the same opportunity to establish such right.

Requirement of tax payment certificate for a person leaving Bangladesh

243. (1) Save as otherwise specified by the Board in this behalf, a person who is not domiciled in Bangladesh or a person who is domiciled in Bangladesh but who is of the opinion of the Income- tax Authority at the time of leaving Bangladesh that he will not return to Bangladesh shall not leave Bangladesh without a certificate to that effect from a Commissioner of Excise authorised by the Board, namely:-

(a) Tax payment certificate, or

(b) if he wishes to return to Bangladesh, an exemption certificate, which may be issued only when the Excise Commissioner is satisfied that the person concerned so wishes; and such exemption certificate may be issued for a single journey or for multiple journeys within the period specified in the certificate.

(2) If the owner or charterer of any aircraft or ship permits any person referred to in sub-section (1) to travel from any place in Bangladesh to any place outside Bangladesh in such aircraft or ship without the certificate referred to in that sub-section, then such owner or charterer shall-

(a) the tax due to or payable by the person referred to in sub-section (1) shall be payable and a fine not exceeding twenty (20) thousand taka shall be payable; and

(b) shall be treated as a defaulting taxpayer for the purpose of collecting such tax and penalty and in such case all the provisions of this Act shall apply.

(3) For the purposes of this section,-

(a) “Exemption certificate” in relation to a person means a certificate issued to that person for the purpose of exempting him from paying tax for one or more journeys specified in the certificate;

(b) “owner” or “charterer” shall include any representative, agent or employee of the owner or charterer of a ship or aircraft authorized to issue rights of passage on such ship or aircraft;

(c) "tax payment certificate" in relation to a person means a certificate issued to the effect that the person concerned is not liable under this Act or the Gift Tax Act, 1990 (Act No. 44 of 1990) or that satisfactory arrangements have been made for the payment of all taxes or for the payment of any tax payable or liable to be paid by that person.

PART 16

International Contract Management

CHAPTER ONE

Tax treaty

Tax treaty 244. (1) The Government may enter into agreements with the Government of any other country on the following matters, namely:-

(a) Regarding tax relief on the following matters:

(i) income on which tax has been paid under this Act and such other laws in force in other countries; or

(ii) any tax imposed under this Act and such laws in force in other countries for the purpose of encouraging mutual economic relations, trade and investment;

(b) Determination of income from sources within and outside Bangladesh;

(c) the avoidance of double taxation and the prevention of revenue evasion under this Act and such laws in force in other countries;

(d) exchange of information to prevent tax evasion or avoidance under this Act and such laws in force in other countries or to investigate cases relating to such evasion;

(e) recovery of taxes under this Act and such laws in force in other countries; and

(f) for carrying out any purpose of this Act and any other such law in force in other countries.

(2) The Board may, by notification in the Official Gazette, make such regulations as may be necessary for the implementation of the tax treaty.

(3) An agreement made under sub-section (1) may include provisions relating to tax relief of any period prior to the enactment of this Act or this agreement and provisions relating to income which is not automatically subject to double taxation.

(4) Where an agreement entered into under this section contains any provision allowing for the setting off of tax payable in Bangladesh against tax payable under the laws of any country concerned, the provisions relating to setting off of foreign taxes set out in Chapter II of this Part shall apply.

CHAPTER TWO

Exemptions and foreign tax credits

Definition 245. (1) For the purposes of this Chapter,-

(a) “Bangladesh tax” means income tax imposed in accordance with the provisions of this Act;

(b) “foreign tax” means, in the case of a treaty in force with a foreign country, a tax which is leviable under the laws of that country and which is admissible under the treaty in accordance with the provisions of section 244;

(2) Where, in accordance with an agreement in force under section 244, any tax imposed under the laws of the State concerned is treated as income tax, that tax shall be treated as foreign tax or foreign income tax, other than foreign tax, as the case may be.

(3) In the case of a concession granted under any agreement of this Chapter, any reference relating to foreign taxes or foreign income taxes shall be deemed to be a reference to taxes imposed by the Government under the laws of the country with which the agreement is concluded.

Exemption for income earned outside Bangladesh

246. If it appears to the satisfaction of the Excise Commissioner in respect of the income of any person resident in Bangladesh that during that year he has paid tax by deduction or otherwise in respect of such income arising or acquired outside Bangladesh in a country with which there is no reciprocal agreement for the avoidance of double taxation, the Excise Commissioner shall, for this purpose, assess tax on such double taxed income at the average rate of tax prevailing in Bangladesh or the average rate of tax prevailing in that country, whichever is lower, in accordance with the existing provisions, and shall exclude it from the tax payable in Bangladesh.

Explanation.- The term "average rate of tax" means the rate obtained by dividing the tax assessed on total income by such income.

Foreign tax credit 247. (1) Subject to the provisions of this Act, where, under an agreement concluded under section 244, a credit is allowed against tax imposed in Bangladesh on any income, the tax chargeable shall, subject to the provisions of that agreement, be reduced by an amount equal to such credit.

(2) If a taxpayer on whose income is chargeable to tax in any income-tax year is not resident at the time on the basis of which such income is assessed, then no adjustment under sub-section (1) shall be admissible against that income-tax.

(3) In the case of any income, the amount of adjustment allowable by way of foreign tax payment against tax in Bangladesh shall not exceed the amount of the amount determined at the average rate of tax stated on the double taxable income.

Effectiveness of income calculation on foreign tax adjustment approval

248. (1) Where income includes dividends and any foreign tax (whether directly chargeable or deductible by way of dividend or not) is required to be taken into account in determining whether or not any credit is to be allowed against Bangladesh tax in respect of such dividends under the Agreement, the income concerned shall be deemed to have been increased by an amount equal to the foreign tax relating to the dividends taken into account for the purpose of determining the amount of credit.

(2) Where under sub-section (1) any amount of income is deemed to have been increased, the foreign tax paid on the dividends paid by the statutory body paying the dividends at any particular time, if not directly or by deduction, shall be taken into account, or if the dividends are not paid within the specified time, the dividends paid during the last accounting period closed by the statutory body before the dividends are paid.

Explanation.-For the purposes of this sub-section, "paid" means money paid, deposited or distributed or has been paid, deposited or distributed.

(3) Notwithstanding anything contained in this section and section 55, if a portion of foreign tax on any source of income is not allowed as a credit against Bangladesh tax, the amount of that income shall be deemed to have been reduced by an amount equal to that portion of foreign tax.

(4) In cases where any income tax is payable on the basis of money received from Bangladesh, the amount of that money shall be deemed to have increased by the amount of the benefit allowed as a rebate against income tax.

(5) For the purpose of determining the rate referred to in sub-section (3) of section 247, the provisions of sub-sections (1) and (3) of this section shall not apply while computing the total income of any person, and in accordance with sub-section (4) of this section, the term 'allowance allowed against income-tax' shall be substituted by 'foreign tax paid on the basis of income'.

Limitations on claiming foreign tax credits

249. (1) Subject to the provisions of sub-section (2), a claim for credit for foreign tax paid on any source of income shall be made to the Excise Commissioner of the office in which the income tax of the payer has been assessed within 2 (two) years following the year in which such income was or would have been chargeable to Bangladesh.

(2) In cases where the benefits granted under the Agreement are deemed to be excessive or inadequate as a result of the adjustment of any tax payable in Bangladesh or as a result of the adjustment of any tax payable under the law of any other State, the time limit specified in this Act for claiming a refund of tax or for making a new assessment of tax arising out of the adjustment shall not apply if the claim for a refund of tax or for making a new assessment of tax is not met within 2 (two) years after all such assessment, adjustment and other assessments arising therefrom are made in Bangladesh or elsewhere.

Appeal 250. If the foreign tax credit claimed by any payer is disallowed, in whole or in part, by an order passed by the Excise Commissioner, the payer may appeal to the Joint Commissioner of Appeal within 30 (thirty) days of the receipt of the said order by the Excise Commissioner and similarly the provisions of Chapter II of Part 20 shall apply with necessary modifications.

Provisions for deduction of tax at source in cases where a double tax treaty exists

251. (1) Where an agreement entered into with the Government is in force under the provisions of section 244 to the effect that any particular class of income derived by a person resident in a country to which such agreement applies shall be exempt from tax in Bangladesh and tax shall be deductible from such income in accordance with the provisions of this Act, the provisions of this section shall apply.

(2) Where any person pays income of any such class (referred to in this section as a Bangladeshi payer) to a person entitled to the income of the said country (referred to in this section as a non- resident), such person may, under a notice directed by or under the Board, pay any such income to the non-resident without deduction of tax and the Bangladeshi payer shall, on the date on which such notice was issued, pay to the non-resident person mentioned in the notice any amount of income from the source mentioned in the notice, or any income likely to be received in any year for which the Agreement is in force, without any deduction under the provisions of this section.

(3) Any notice given under sub-section (2) shall be deemed to be void if in any case, whether or not such description is given, it is void by any direction given by the Board or by a notice of cancellation issued thereunder; and if any such event occurs to the knowledge of the Bangladeshi payer or a notice of cancellation is given to him, then tax shall be deducted in accordance with the provisions of this Act on any payment made by the Bangladeshi payer to the said non-resident after such event comes to the knowledge of the Bangladeshi payer or, as the case may be, after the receipt of the notice by the Bangladeshi payer.

PART 17

Agency, representation and related matters

Liability of the representative in some cases

252. (1) Every person acting as agent for another person in respect of any income shall, for the purposes of this section, in respect of that income—

(a) shall be subject to such duties, responsibilities and liabilities as if such income had been received by him for his benefit, or had arisen towards him or accrued in his favour;

(b) shall be liable for the assessment of taxes in his own name; and

(2) No person on whose income tax has been assessed under the provisions of this section as a representative shall be liable to tax on the same income under any other provision of this Act.

(3) Nothing in this section shall prevent the direct assessment of tax by or the recovery of tax on income from the person for whom or on whose behalf or for whose benefit the person is entitled to receive any income.

(4) For the purposes of this section-

(a) A guardian, administrator, or trustee who receives or is entitled to receive any income for, on behalf of, or for the benefit of a minor, an insane person, or an insane person, shall be deemed to be a representative for such income;

(b) The Administrator General, Official Trustee, or any receiver, manager or other person appointed by or under the order of the Court, by whatever name he may be called, shall be an agent for any income received or entitled to receive for or on behalf of or for the benefit of any other person;

(c) A trustee or trustees appointed under a trust declared by a legally executed written will or any other instrument including a legally valid waqf deed, who receive or are entitled to receive any income for or on behalf of or for the benefit of any other person, shall be agents for such income;

(d) A person who is treated as an agent of a non-resident under section 253 shall be an agent for the income of that non-resident which is treated as arising or acquired in Bangladesh under section 27.

Person considered as agent

253. (1) For the purposes of this Act, the following persons shall, subject to the provisions of sub- sections (2) and (3), be deemed to be agents of a non-resident, namely:-

(a) Any person in Bangladesh-

(i) who is appointed by or on behalf of a non-resident;

(ii) who has business relations with a non-resident;

(e) who holds or controls the receipt or settlement of any money owned by a non-resident;

(iv) who is a trustee of a non-resident; or

(v) from whom or through whom the non-resident receives any income directly or indirectly;

(b) a resident or non-resident person who acquires, by transfer, any capital asset situated in Bangladesh from a person residing outside Bangladesh;

(2) An independent broker located in Bangladesh who, in any transaction, does not deal directly with or on behalf of a non-resident principal but deals with or through a non-resident broker, shall not be considered as an agent of the non-resident in respect of that transaction, if-

(a) the transaction is carried out as a normal business activity through a non-resident broker; and

(b) The non-resident broker carries out such transactions in the ordinary course of his business.

(3) No person shall be deemed to be an agent under this Act in relation to a non-resident unless he is given an opportunity of being heard by the Excise Commissioner.

Representative's right to recover paid taxes

254. (1) Any agent who pays any sum against his liability under section 252 shall be entitled to recover from the person on whose behalf he paid the sum the sum so paid, or to recover an amount equal to the sum so paid from any money in his possession or likely to come into his possession or likely to come into his possession by reason of his being an agent.

(2) An agent, or any other person on whose behalf the tax may be assessed, may recover from any money payable to the person (hereinafter referred to as the “beneficiary”) on whose behalf the tax is payable an amount not exceeding the estimated tax liability of that person.

(3) Any person who is apprehensive that tax may be assessed on the basis of any disagreement between the beneficiary and the agent or on the basis of the agent, as the case may be, may obtain from the Commissioner of Excise a certificate specifying the amount to be withheld or deferred until the tax liability is settled, and the certificate so obtained shall be deemed to be a warrant for the withholding of the amount.

Liability of firm or association for irrecoverable taxes due to partners or members

255. (1) Where any tax payable by a partner of a firm or a member of a partnership in respect of the partnership income of such firm or partnership, as the case may be, is irrecoverable, the Excise Commissioner shall, by notice, inform the tax firm or partnership of the amount of such tax.

(2) Notwithstanding anything contained in any other law for the time being in force, upon receipt of a notice under sub-section (1) relating to the amount of tax, the firm or body of persons so notified shall be liable for the payment of the said tax and shall be deemed to be the taxpayer for the purpose of recovery of the said tax, and the provisions of this Act shall apply accordingly.

Liability of partners, etc. in case of cessation of business of firm, etc.

256. (1) Where any business carried on by a firm or partnership is discontinued, or where any firm or partnership is dissolved, the tax on the total income of such firm or partnership shall be assessed as if no such discontinuation or dissolution or dissolution had taken place, and the provisions of this Act shall, so far as may be, apply accordingly.

(2) Where a tax assessment is made under sub-section (1) in respect of a firm or partnership, every person who was a partner or member of the firm or partnership at the time of the cessation of business of the firm or partnership, or at the time of the dissolution of the firm or partnership, as the case may be, and, in the case of the death of any of them, the legal representative of the deceased, shall be jointly and severally liable for the payment of the tax payable by the firm or partnership as a result of the assessment and shall be deemed to be the taxpayer for the purpose of recovering the tax, including any penalty and any other sums payable; and the provisions of this Act shall apply accordingly.

Liability of directors for irrecoverable taxes of private companies

257. (1) Notwithstanding anything contained in the Companies Act, 1994 (Act No. 18 of 1994), where a private company is wound up and before or during the winding up of the company or after the winding up, whenever that may be, or if the business of the company has been closed for a period of 3 (three) consecutive years, it is not possible to collect the tax assessed on the company in respect of any income of any income year, in that case every person who was a director of the company at any time in the relevant income year shall be jointly and severally liable for the payment of such tax and shall be deemed to be the taxpayer for the purpose of recovery of such tax, and the provisions of this Act shall apply accordingly.

(2) Notwithstanding anything contained in sub-section (1), the liability of any person in respect of the income of a private company shall be suspended if he can prove to the Commissioner of Excise that the non-collection of tax from the company is not due to his gross negligence, abuse of lawful power or breach of any duty in any matter relating to the business of the company.

Liability of liquidator for taxes of private companies undergoing liquidation

258. (1) The liquidator of a private company wound up by order of the court or otherwise shall, within 30 (thirty) days of his appointment as liquidator, give notice of his appointment to the Excise Commissioner under whom the tax assessment jurisdiction of the company lies.

(2) The Excise Commissioner shall, within 3 (three) months from the date of receipt of the notice under sub-section (1), after calling for such information or making such inquiry as he may consider necessary, inform the liquidator of the amount of money which, in his opinion, is required for the payment of tax payable by the company at that time or after that time.

(3) After being informed under sub-section (2), the liquidator shall set aside a sum equal to the tax specified in the notice and, before setting aside such sum, no assets of the company shall be set aside except for the purpose of securing the payment of taxes payable by the company on the date of its winding up or of any debts which, by law, have priority over the payment of government dues.

(4) The liquidator shall be personally liable on behalf of the company for the payment of the amount of tax notified under sub-section (2) if he-

(a) fails to give notice as required by sub-section (1); or

(b) Violates the provisions of sub-section (3).

(5) Where more than one liquidator is appointed, the legal obligations and liabilities of the liquidator under this section shall be jointly and severally incumbent upon all the liquidators.

(6) This section shall have effect notwithstanding anything contained in any other law for the time being in force.

(7) For the purposes of this section, the expression "liquidator" shall include a person appointed as receiver of the assets of a company undergoing liquidation.

Tax liability in the case of non- resident shipping business

259. (1) Notwithstanding anything contained in this Act, where a non-resident carries on the business of shipping as owner or charterer, hereinafter referred to as the principal in this section, tax shall be levied and collected in respect of such business in accordance with the provisions of this section.

(2) Before any ship leaves any port in Bangladesh, the master of the ship shall prepare a return containing the following particulars and submit it to the Excise Commissioner, namely:-

(a) the amount of money paid or payable to the principal or any other person on his behalf, within or outside Bangladesh, for the carriage of passengers, cattle, mail or goods on board the ship since the last arrival of the ship at the port; and

(b) The amount of money received or deemed to be received within Bangladesh by the principal or any other person on his behalf for the carriage of passengers, cattle, mail or goods embarked on a ship at any port outside Bangladesh.

(3) After receiving the return, the Excise Commissioner shall determine the amount of money referred to in sub-section (2) and may call for such statements, accounts or documents as he may consider necessary for this purpose and the amount of money determined shall be treated as income earned by the principal in Bangladesh from the said business which shall be taxable under this Act under his 'income from business' and tax shall be levied on such income at the rate of 8% (eight per cent).

(4) Where the Excise Commissioner is satisfied that the return required under sub-section (2) cannot be filed by the master or principal of the ship before the ship leaves the port, and satisfactory steps have been taken by the principal for the return to be filed and the tax to be paid on his behalf through some other person, the Excise Commissioner may, if the return is filed within 30 (thirty) days of the ship leaving the port, treat the return as having been filed through a person authorised by the principal, subject to due compliance with the provisions of sub-section (2):

Provided that, where any charge referred to in sub-section (8) arises after the expiry of the said 30 (thirty) days, the other person referred to in this sub-section shall, within 30 (thirty) days after the end of the month in which the charge arises, file a supplementary return for the said charge and pay the tax payable thereon.

(5) No port clearance shall be granted to any ship until the Commissioner of Customs or any officer duly authorized in this behalf is satisfied that the tax payable under sub-section (3) has been duly paid or satisfactory arrangements have been made for its payment.

(6) Nothing in this Act shall be construed to authorize any expenditure against the aggregate amount of receipts determined under sub-section (3).

(7) The tax paid under this section shall be considered as the final tax liability of the taxpayer under this Act and the taxpayer shall not be required to file a return of total income under section 166, nor shall he be able to claim any refund or adjustment of tax on the basis of such return.

(8) For the purposes of this section, the amount referred to in sub-section (2) shall include any amount paid or payable as demurrage charge or handling charge or any other amount of a similar nature.

Tax liability in the case of non- resident air transport business

260. (1) Notwithstanding anything contained in the other provisions of this Act, where a non- resident carries on the business of air transport as proprietor or lessee (hereinafter referred to in this section as principal) and an aircraft owned or leased by him arrives at any airport in Bangladesh, the sum of money received from that airport for the carriage of passengers, cattle, mail or goods on board the aircraft shall be treated as income derived by the principal from that business in Bangladesh, which shall be taxable under his 'income from business' under this Act and tax shall be levied on that income at the rate of 3% (three per cent).

(2) The principal or any agent authorized by him in this behalf shall prepare a return for every 3 (three) months and shall submit it to the Excise Commissioner within 45 (forty-five) days from the last day of every 3 (three) months in each financial year, that is, 30th September, 31st December, 31st March and 30th June, showing the following particulars, namely:-

(a) the amount of money paid or payable to the principal or any person on his behalf, within or outside Bangladesh, for the carriage of passengers, cattle, mail or goods on board an aircraft from that airport; and

(b) The amount of money received or deemed to be received within Bangladesh by or on behalf of the principal for the carriage of passengers, cattle, mail or goods from any airport outside Bangladesh.

(3) After receiving the return, the Excise Commissioner may, by summoning such statements, accounts or documents as he may consider necessary, determine the total amount referred to in sub-section (2) and may levy tax in the manner referred to in sub-section (1).

(4) Where the principal fails to pay the tax payable under sub-section (1) for a period exceeding 3 (three) months, the Commissioner of Taxes shall issue a certificate to the authority competent to grant clearance for the said aircraft, mentioning the name of the principal and the amount of tax payable by him, and such authority shall not, after receiving the certificate, grant clearance for the aircraft owned or leased by the principal to leave any airport in Bangladesh until the tax payable is paid.

(5) Nothing in this Act shall be construed to authorize any expenditure against the aggregate amount of receipts determined under sub-section (3).

(6) The tax paid under this section shall be deemed to be the final tax liability under this Act and the taxpayer shall not be required to file a return under section 123 [166], nor shall he be entitled to claim any refund or adjustment of tax on the basis of such return.

PART 18

Taxpayer registration

261. (1) A person shall register himself as a taxpayer if he-

(a) Become a taxpayer;

(b) is compelled to file a return under section 166;

(d) Willing to pay taxes or file returns.

(2) The Board shall issue a Taxpayer Identification Number (TIN) to the registered taxpayer.

(3) The Board may, by general or special order, direct any person or class of persons holding a TIN to produce any information or documents for the purpose of upgradation or re-registration.

(4) In case any person who is eligible to be a registered taxpayer under sub-section (1) but fails to obtain TIN after obtaining registration, the Income Tax Authority may register such person and issue TIN.

Taxpayer registration cancelled

262. (1) A person may apply for cancellation of registration if the person-

(a) is no longer required to furnish proof of filing of return under section 264 and-

(i) is no longer defined as a taxpayer under clause 22 of section 2;

(ii) has had zero taxable income for the past 3 (three) consecutive years and will have zero taxable income in the future due to physical disability or any other reason; or

(e) No further return is required to be filed under section 166;

(b) ceases to exist by death, dissolution, dissolution or any other similar cause;

(d) has received a duplicate registration or incorrect registration;

(e) changes legal status;

(f) Demonstrates any other lawful reason.

(2) The Income Tax Authority, after receiving an application for cancellation of registration, may, after examining the application, cancel the registration of the taxpayer if it is satisfied that-

(a) There is no outstanding liability to be paid by the taxpayer;

(b) no tax assessment is pending against the taxpayer;

(d) The reason given by the taxpayer for cancellation of registration under sub-section (1) is true.

(3) The Board may, on its own initiative, cancel the registration of any taxpayer in the following matters, namely:-

(a) there is a reason to cancel the registration of a taxpayer under sub-sections (1) and (2);

(b) there are reasonable grounds to believe that a taxpayer has no income of real or lawful source;

(c) the registration was made for the purpose of committing a financial crime or as part of a money laundering scheme; or

(d) The information provided during the registration process is incorrect and untrue.

(4) The Board may preserve all information and records of a deregistered taxpayer for such period as it may deem appropriate.

(5) For the purposes of this section, "deregistration" means the making of a TIN inactive, dormant and unavailable for public use, but does not mean the deletion or erasure of information already obtained.

Withholder Identification Number (WIN)

263. (1) Every person liable to deduct or collect tax under Part 7 shall obtain a withholder identification number, hereinafter referred to as WIN, in such manner as the Board may determine.

(2) Nothing in this section shall prevent any action, including the imposition of personal liability, against any person referred to in sub-section (1) who does not accept a WIN.

(3) In cases where a person is required to obtain a WIN but fails to do so, a Temporary Withholder Number (TWIN) may be issued to that person in a manner prescribed by the Board.

Obligation to submit proof of return filing

264. (1) Notwithstanding anything contained in this Act, a person shall be required to furnish proof of filing a return in the cases mentioned in sub-section (3).

(2) “Proof of filing of return” means—

(a) Certificate or acknowledgement of receipt of return filing;

(b) System generated certificate containing the taxpayer's name, TIN and tax year; or

(3) “Proof of return filing” shall be submitted in the following cases, namely:-

1. Taking a loan of more than 20 (twenty) lakhs of taka, provided that there is no taxable income;

2. If you are a director or sponsor shareholder of a company;

3. Obtaining and maintaining an import registration certificate or export registration certificate;

4. Obtaining and renewing trade licenses in city corporation or municipality areas;

5. To obtain registration of a cooperative society;

6. To be a registered surveyor of general insurance and to obtain and renew a license;

7. To register the sale or lease or transfer or deed or power of attorney of land, building or apartment worth more than 10 (ten) lakhs of taka in the areas of City Corporation, Municipality and Cantonment Board;

8. Obtaining and maintaining credit cards;

9. To obtain and maintain membership of any recognized professional body as a physician, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or as a similar professional;

10. To maintain the license or, as the case may be, appointment as Registrar of Marriages under the Muslim Marriages and Divorces (Registration ) Act, 1974 (Act No. LII of 1974), Registrar of Hindu Marriages under the Hindu Marriage Registration Act, 2012 (Act No. 40 of 2012) and Registrar under the Special Marriage Act, 1872 (Act No. III of 1872);

11. To obtain and maintain membership in trade bodies or professional organizations;

12. Obtaining and renewing drug licenses, fire licenses, environmental clearances, BSTI licenses and clearances;

13. To obtain and maintain commercial and industrial gas connections in any area and to obtain and maintain residential gas connections in City Corporation areas;

14. To obtain and maintain survey certificates for any type of hired vessel including launches, steamers, fishing trawlers, cargo, coasters, cargo and dumb barges;

15. Obtaining and renewing permission for brick production from the Department of Environment or the office of the Deputy Commissioner;

16. Admission of children or pets to English medium schools located in city corporations, district headquarters or municipalities;

17. Obtaining or maintaining electricity connection in City Corporation or Cantonment Board areas;

18. To obtain and maintain agency or distributorship of the company;

19. Obtaining and maintaining firearms licenses;

20. Opening of letters of credit for import purposes;

21. Open a post office savings account of more than 5 (five) lakhs taka;

22. To open and maintain term deposits of more than 10 (ten) lakhs of taka;

23. Purchase of savings certificates worth more than 5 (five) lakhs of taka;

24. Participation in municipal, upazila, district council, city corporation or national parliament elections;

25. To participate in shared economic activities through the provision of motor vehicles, space, accommodation or other resources;

26. In receipt of salaries and allowances of a person working in a managerial or administrative or supervisory position in production activities;

27. In receiving salaries and allowances of public servants;

28. In case of receiving commission, fee or any other money through mobile banking or electronic money transfer and mobile phone account recharge;

29. Any payment received by a resident from any company for advisory or consultancy services, catering services, event management services, manpower supply, security supply services;

30. In case of receiving any amount exceeding 16 (sixteen) thousand taka per month from the government through Monthly Payment Order or MPO entry;

31. Registration or renewal of agency certificate of insurance company;

32. During registration, change of ownership or fitness renewal of motor vehicles other than two- wheeled or three-wheeled motor vehicles;

33. To release foreign grant funds in favor of NGOs registered with the NGO Affairs Bureau or microfinance institutions licensed by the Microcredit Regulatory Authority;

34. Selling products or services using digital platforms to consumers located in Bangladesh;

35. In case of application for membership of any club registered under the Companies Act, 1994 (Act No. 18 of 1994) and the Societies Registration Act, 1860 (Act No. XXI of 1860);

36. When submitting tender documents by a resident for the purpose of supplying goods, executing a contract or providing services;

37. When receiving any kind of goods or services from a company or firm;

38. When submitting a bill of entry for the purpose of importing or exporting goods;

39. When submitting the design of the construction of a building for approval to the Capital Development Authority (RAJUK), Chittagong Development Authority (CDA), Khulna Development Authority (KDA), Rajshahi Development Authority (RDA), Gazipur Development Authority, Cox's Bazar Development Authority or, from time to time, similar authorities constituted by the Government or other relevant authorities of the City Corporation or Municipality;

40. To register, license or enroll and maintain as a vendor or document writer of stamps, court fees and cartridge paper;

41. To open and maintain bank accounts of trusts, funds, foundations, NGOs, microcredit organizations, societies and cooperative societies;

42. When a specific person rents or leases a house in the City Corporation area, the owner of the house;

43. The supplier or service provider 124 [;] when receiving goods or services from a specific person

125

[44. During the obtaining and renewal of licenses of hotels, restaurants, motels, hospitals,

clinics, diagnostic centers;

45. While receiving community center, convention hall or any similar service located in the City Corporation area;]

(4) The Board may, by general or special order, exempt any person from furnishing proof of filing of return.

(5) In cases where proof of filing of return is mandatory, the person responsible for any nomination, nomination or application verification, any license approval, certificate, membership, permission, admission, agency or distributorship approval, loan approval, credit card issuance, connection or operation approval, registration execution or payment shall refrain from any verification, approval, permission, sanction, issue, exemption, execution or payment without submitting proof of filing of return.

(6) The person to whom the proof of return filing is submitted shall verify the correctness of the proof of return filing submitted in the manner prescribed by the Board.

(7) In cases where the submission of proof of return filing is mandatory, the person responsible for any nomination, nomination or application verification, approval of any license, certificate, membership, permission, admission, approval of agency or distributorship, approval of loan, issue of credit card, connection or operation approval, execution of registration or payment shall ensure submission of proof of return filing and if he fails to verify the authenticity of the proof of return filing submitted, the Excise Commissioner may impose a fine not exceeding 10 (ten) lakhs of taka on the person responsible.

(8) No penalty shall be imposed under this section without giving a reasonable opportunity of hearing.

(9) Any person, other than a natural person, incorporated, registered or constituted under any law or any instrument having legal power, shall, in lieu of proof of filing of return, furnish a certificate containing name and TIN in the following years:

(i) Year of incorporation, registration or formation; and

(ii) The year following the year of incorporation, registration or formation.

Show proof of return filing

265. (1) A taxpayer who is required to file a return under this Act and whose income is derived from business shall display proof of filing of the return in a conspicuous place at his place of business.

(2) In case any taxpayer fails to comply with the provisions of sub-section (1), the Excise Commissioner may impose a fine not less than 126 [twenty thousand taka and not more than fifty thousand taka].

PART 19

Fine

Penalty for failure to file returns, etc.

266. (1) Where any person fails, without reasonable cause, to furnish a return under section 166, 172, 191, 193 or 212, the Excise Commissioner may impose a penalty at the rate of 10% (ten percent) of the tax chargeable on the last assessed income of such person, subject to a minimum of 1 (one) thousand taka and, if the failure continues, may impose an additional penalty at the rate of 50 (fifty) taka for every day during which the failure continues:

Provided that the amount of the said fine shall not exceed the following amounts, namely:-

(a) In the case of an individual taxpayer who has never had a tax assessment before, 5 (five) thousand taka;

(b) In the case of an individual taxpayer whose tax has already been assessed, 50% (fifty percent) of the tax payable on the last assessed income or 1 (one) thousand taka, whichever is higher.

(2) Where any person, without reasonable cause,

(a) In the event of failure to file or furnish any return, information under section 177, the Excise Commissioner may impose on such person a penalty of 10% (ten percent) of the tax chargeable on his last assessed income or 5 (five) thousand taka, whichever is higher, and if the failure continues, he may impose an additional penalty of 1 (one) thousand taka for each month or fraction thereof during which the failure continues;

(b) fails to furnish any certificate under section 145, in which case the Excise Commissioner may impose on such person a fine not exceeding 5 (five) thousand taka and, if the failure continues, an additional fine of 1 (one) thousand taka for every month or fraction thereof during which the failure

continues;

(c) Fails to furnish or produce any information required under section 200, in which case the Income Tax Authority which has sought the information under section 200 may impose a fine of 50 (fifty) thousand taka on such person and, if the failure continues, may impose an additional fine of 500 (five hundred) taka for each day during which the failure continues.

Penalty for failure to maintain accounts in the manner prescribed by rules

267. (1) Where any person not deriving income from the rental of tangible property fails, without reasonable cause, to comply with the provisions of sub-section (3) of section 72 or any order or rule made for the purpose of that section, the Excise Commissioner may impose on him a penalty as follows:-

(a) not more than one and a half times the amount of tax payable by him; and

(b) 5 (five) thousand taka if the total tax-free income of the said person is within the limit.

(2) Where any person deriving income from the rental of tangible property fails, without reasonable cause, to comply with the provisions of sub-section (3) of section 72 or any order or rule made for the purpose of that section, the Excise Commissioner may impose on him a penalty of 50% (fifty per cent) of the tax payable on the income derived from the rental of tangible property or 5 (five) thousand taka, whichever is higher.

Penalties for using a fake Taxpayer Identification Number (TIN)

268. Where any person, without reasonable cause, uses in his return or in any document where the Taxpayer Identification Number (TIN) is required under this Act, the Taxpayer Identification Number (TIN) of another person or a fake Taxpayer Identification Number (TIN), the Excise Commissioner may impose a fine not exceeding 20 (twenty) thousand taka on that person.

Penalty for failure to pay advance tax, etc.

269. Where, in the course of any proceedings relating to the assessment of tax under Part 10, the Excise Commissioner is satisfied that any person—

(a) has failed, without reasonable cause, to pay advance tax in accordance with the provisions of section 154; or

(b) submits any estimate of tax payable by him under section 155 which to his knowledge or belief is untrue,

In that case, he may impose a maximum penalty on the said person not exceeding the difference between the tax payable by the said person and the tax actually paid.

Penalty for 270. Where any person, without reasonable cause, disobeys any notice issued under section 167,

disobeying the

168, 179, 181

127

[, 183 or 212], the Excise Commissioner may impose on that person such

notice

penalty not exceeding the tax chargeable on his total income.

Penalty for failure to pay tax based on return

271. If, in the course of any proceedings under this Act, the Excise Commissioner is satisfied that any person has not paid 128 [the recognised tax liability], the Excise Commissioner may impose on that person a penalty not exceeding 25% (twenty-five per cent) of the total tax or, as the case may be, an amount equal to the unpaid partial tax.

Penalty for concealing income

272. (1) If, in the course of any proceedings under this Act, the authority conducting the proceedings is satisfied that any person has, in the said proceedings or in any previous proceedings relating to the assessment of tax for the same income year, evaded the amount payable under this Act by making false representations as to his income, assets, liabilities, expenditure or any other material information relating to the amount payable by the taxpayer, the authority conducting the proceedings shall impose on that person a fine equal to A + B, in which case:

A = omitted number × 15%,

B = omitted number × 10% × C,

C = Total years from the tax year in which the misrepresentation occurred to the tax year in which the misrepresentation was discovered.

(2) For the purposes of this section,-

(a) “Programme Management Authority” means—

(i) means an income-tax authority not below the rank of Commissioner; and

(ii) shall mean the Tax Appeal Tribunal;

(b) “Blank figures” shall mean C-D in any tax year, In which case-

C = If income, assets, liabilities, expenses or any other material information were not shown to an untrue extent, then the tax and other amounts payable in any tax year,

D = Actual amount paid in the relevant tax year.

Fine for preparing fake audit report by chartered accountant

273. Where, in the course of any proceedings under this Act, the Excise Commissioner, Additional Commissioner of Taxes (Appeals), Commissioner (Appeals) or the Tax Appellate Tribunal is satisfied beyond reasonable doubt that the audit report-

(a) is not certified by a Chartered Accountant to the effect that International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) have been followed in the keeping of accounts, preparation of statements and reporting and International Standards on Auditing (ISA) in the audit; or

(b) is untrue or inaccurate,

In that case, he will impose a fine of a minimum of 50 (fifty) thousand taka and a maximum of 2 (two) lakh taka on the said chartered accountant .

Penalty for submitting fake audit report

274. Where, in the course of any proceedings under this Act, the Commissioner of Excise, Additional Commissioner of Taxes (Appeals), Commissioner (Appeals) or the Appellate Tribunal is satisfied beyond reasonable doubt that the audit report filed by a taxpayer with the return or subsequently for any income year is not signed by a Chartered Accountant or is likely to be false, the said authority or, as the case may be, the Tribunal may impose a fine of 1 (one) lakh taka on the taxpayer for that income year.

Penalty for tax default

275. Where any taxpayer defaults or is deemed to be in default in the payment of tax, the Excise Commissioner may direct that such amount, in addition to the tax due, not exceeding the tax due, shall be recovered from the taxpayer as penalty.

Penalty for non- compliance with the provisions of Section 235

276. Where any person fails to comply with any notice or demand under section 235, the Excise Commissioner may impose on that person a penalty not exceeding 1% (one percent) of the value of each international transaction carried out by the person.

Penalty for non- compliance with the provisions of Section 237

277. Where any person fails to keep, preserve or furnish any information or document or record under section 237, the Excise Commissioner may, without prejudice to the provisions of Part 19, impose on that person a penalty not exceeding 1% (one per cent) of the value of each international transaction effected by the person.

Penalty for non- compliance with the provisions of Section 238

278. Where any person fails to comply with the provisions of section 238, the Excise Commissioner may impose on that person a penalty not exceeding 2% (two percent) of the value of each international transaction carried out by the person.

Penalty for non- compliance with the provisions of Section 239

279. In case any person fails to submit any report under section 239, the Excise Commissioner may impose a fine not exceeding 3 (three) lakhs of taka on that person.

Ban on imposing fines without hearing

280. No order imposing a fine on any person under this Part shall be made without hearing him or giving him a reasonable opportunity of being heard.

Prior approval of the Inspector Additional Commissioner of Taxes for imposition of fine

281. The Excise Commissioner shall not impose any penalty under this Part without the previous approval of the Additional Commissioner of Excise, except in the cases mentioned in sections 266, 275, 276, 277, 278 and 279.

Sending fine order to the

282. If any income-tax authority other than the Appellate Tribunal or the Excise Commissioner passes an order imposing any penalty under this Part, a copy of such order shall forthwith be sent to the Excise Commissioner and all the provisions of this Act relating to the recovery of penalty

Excise Commissioner

shall thereupon have effect as if the order had been passed by the Excise Commissioner.

Fines shall not prejudice any other liability.

283. No penalty imposed on any person under this Part shall prejudice the right to recover any liability under this Act or any other law for the time being in force for which that person is or may be liable.

Correction of penalty order based on revised income amount

284. (1) Where the amount of any penalty imposed under this Part is directly related to the amount of income determined under the provisions of this Act and the amount of that income has subsequently been revised by an order made under this Act, the Excise Commissioner may, at the time of revising the amount of income, issue a revised penalty order.

(2) Before any order is made to increase the amount of a fine, the person to whom the fine is imposed shall be given a reasonable opportunity of being heard.

(3) Where, after the relevant revised tax assessment order has been issued, the revised order of penalty referred to in sub-section (1) has not been issued, the person to whom the penalty order is applicable may apply to the Excise Commissioner requesting for revision of the amount of the said penalty, and if no order is issued within 180 (one hundred and eighty) days of receipt of such application, the penalty order shall be deemed to have been revised in accordance with the revised tax assessment and all the provisions of this Act shall have effect accordingly.

PART 20

Revision, Appeal and Reference

CHAPTER ONE

Revision

Power of revision of the Commissioner

285. (1) The Commissioner may, on the application of a taxpayer, call for the record of any order passed by any authority under his jurisdiction in respect of any proceedings under this Act and, after making such inquiry or taking such steps as he may consider necessary, may, subject to the provisions of this Act, issue such order as he may consider appropriate in that regard, but no order shall be issued which is prejudicial to the interests of the taxpayer.

(2) An application for revision of an order passed by any authority under the jurisdiction of the Commissioner under this Act shall be filed within 60 (sixty) days of the date of notification of such order to the taxpayer or within such extended period as the Commissioner may extend if he is satisfied that there was reasonable cause for failure to file the application within the said 60 (sixty) days.

(3) The Commissioner shall not exercise his powers under sub-section (1) in the following cases, namely:-

(a) where an appeal is made to the Additional Tax Commissioner (Appeals) or the Commissioner (Appeals) or to the Appellate Tribunal and if the time for such appeal has not expired or the taxpayer has not waived his right to appeal; and

(b) Where an order is pending in respect of an appeal before the Additional Commissioner of Taxes (Appeals) or the Commissioner (Appeals) or the Appellate Tribunal.

129 [(4) No application under sub-section (1) shall be entertained unless—

(a) A fee of 200 (two hundred) taka is paid along with the application; and

(b) The recognized tax liability is paid.]

(5) For the purposes of this section, no order of disapproval shall be issued by the Commissioner as being prejudicial to the interests of the taxpayer.

(6) Notwithstanding anything contained in this Act, if any application for revision is made under sub-section (1), if the Commissioner fails to pass any order in this regard within 60 (sixty) days from the date of filing of the said application, the said revision shall be deemed to have been allowed.

(7) For the purposes of this section, the Additional Commissioner of Taxes (Appeals) shall be deemed to be a subordinate authority of the Commissioner of Taxes by whose subordinate Excise Commissioner the order subject to the appeal under review has been passed.

CHAPTER TWO

Appeals and references

Appeal Appeal to the Income Tax Authority

286. (1) If any taxpayer is aggrieved by the order of the Income Tax Authority, he may appeal to the concerned Appellate Income Tax Authority on the following matters, namely:-

(a) Determination of income;

(b) Determination of tax payable;

(d) imposition of penalty or interest;

(e) Charges and surcharges or any other financial account;

(f) Determination of the amount of refund;

(g) tax credits; and

(h) Regarding any extradition.

(2) Subject to the provisions of sub-section (3), an appeal shall lie only to the Commissioner (Appeals) in the following matters, namely:-

(a) Appeal by the company;

(b) an appeal against any order made under section 213; and

(3) Board-

(a) may assign the responsibility of deciding any appeal to the Appellate Income Tax Authority; and

(b) The responsibility of deciding appeals may be transferred from one Appellate Income Tax Authority to another Appellate Income Tax Authority.

(4) No appeal shall be allowed in respect of any income deemed to be taxable share income.

(5) No appeal shall be allowed against the tax assessment order in the cases mentioned in the following table, namely:-

Table

Return filing status	Conditions
( 1 )	( 2 )
Where a return has been filed	130 [AcknowledgedTaxLiability] NotPaid
In cases where the return is not filed	The minimum tax of 10 % ( ten percent) of the tax determined by the Excise Commissioner has not been paid :

Provided that if the appellant has paid the tax on the basis of his return before filing the appeal and the Appellate Income-tax Authority is satisfied that the appellant could not pay the tax before filing the return for satisfactory reasons, then the Appellate Income-tax Authority may accept the appeal for hearing.

Appeal form, procedure and deadline

287. (1) Subject to the provisions of sub-section (2), every appeal under section 286 shall be made in the prescribed form and manner.

(2) The Board, by notification in the Official Gazette,-

a) may prescribe the areas in which appeals may be filed electronically or in any other machine- readable or computer-readable medium; and

(b) may prescribe the form and procedure for filing such appeal.

(3) The appellant shall pay a fee of 200 (two hundred) taka on or before the date of filing the appeal.

(4) The appellant shall, subject to the provisions of sub-section (5), file an appeal within 45 (forty- five) days, if-

(a) in the case of assessment of tax or penalty, from the date of issue of the tax claim notice relating to such assessment of tax or, as the case may be, penalty; and

(b) In other cases, from the date of issue of the order against which the appeal is filed.

(5) The Appellate Income-tax Authority may entertain an appeal even after the expiry of the period mentioned in sub-section (4), if it appears to its satisfaction that there were sufficient reasons for the failure of the appellant concerned to file an appeal within the said period.

Procedure to be followed in resolving appeals

288. (1) The Appellate Income-tax Authority shall fix the date and place for hearing the appeal, and shall give a notice thereof to the appellant and the concerned Excise Commissioner.

(2) The appellant and the Excise Commissioner shall reserve the right to participate in the hearing of the appeal in person or through a representative.

(3) The Appellate Income Tax Authority may, from time to time, adjourn the hearing of the appeal, if it considers it necessary.

(4) The Appellate Income-tax Authority may, at the time of hearing or before the hearing, allow the inclusion of other grounds of appeal in addition to those presented in the appeal, if the Authority is satisfied that such grounds have not been intentionally omitted from the appeal application form and that such omission was not unreasonable.

(5) The Appellate Income-tax Authority may, before disposing of the appeal, conduct such inquiry as it may consider appropriate or, if it considers it necessary, may call for information relating to the grounds of appeal or may arrange for further inquiry into the matter to be conducted by the Excise Commissioner.

(6) The Appellate Income-tax Authority shall not accept during the hearing of an appeal any document or evidence which has not been produced to the Excise Commissioner in due time, unless it appears to its satisfaction that it was not possible for reasonable cause to produce such document or evidence to the Excise Commissioner.

Appeal decision 289. (1) In deciding any appeal, the Appellate Income Tax Authority shall –

(a) In the case of a tax assessment order, the relevant tax assessment may be finalised, reduced, increased, rejected or cancelled;

(b) in a case relating to an order imposing a fine, may finalise, set aside or annul such order or otherwise increase or reduce the fine; and

(2) No order assessing tax or imposing penalty shall be set aside unless it appears to the satisfaction of the Additional Commissioner of Taxes (Appeals) or the Commissioner (Appeals) that no notice has been issued to the taxpayer in accordance with the provisions of section 335.

(3) The Appellate Income-tax Authority shall not increase the amount of tax or the amount of penalty imposed in any tax assessment or increase or decrease the amount of money payable in the case of refund of tax, unless the appellant is given a reasonable opportunity to show cause for such increase or decrease.

(4) The judgment of the appeal disposed of by the Appellate Income Tax Authority shall be given in writing and shall state the subject matter of the disposal, the decision thereon and the proper reasons in support of the decision.

(5) Where any change is made in the tax assessment order of a firm or partnership as a result of an appeal case, the Appellate Income-tax Authority may direct the Excise Commissioner to amend the income-tax assessment of the partners of the firm or members of the partnership accordingly.

(6) After the disposal of any appeal case, the Appellate Income Tax Authority shall, within 30 (thirty) days of the order issued by it, inform the appellant, the Excise Commissioner and the Commissioner of the issue of the said order.

(7) Notwithstanding anything contained in this Act, if the appellate Income-tax Authority fails to pass any order thereon within 150 (one hundred and fifty) days after the end of the month on which the appeal was filed, the appeal shall be deemed to have been allowed.

Appeal against the order of the Tax Recovery Officer

290. Any person aggrieved by an order issued by the Tax Recovery Officer under section 217 may appeal to the Inspector Additional Commissioner of Taxes designated by the Commissioner of Taxes within 30 (thirty) days of the date of issue of the order, and in the case of such appeal, the decision of the Inspector Additional Commissioner of Taxes shall be final.

Appeal to the Appellate Tribunal

291. (1) If any taxpayer is aggrieved by an order passed by the Additional Commissioner of Taxes (Appeals) or, as the case may be, the Commissioner (Appeals) under section 272 or 289, he may appeal to the Appellate Tribunal.

(2) The taxpayer shall not be entitled to file any appeal under sub-section (1) against the order of the Additional Commissioner of Taxes (Appeals) or, as the case may be, the Commissioner (Appeals) unless he has paid 10% (ten percent) of the difference between the tax assessed on the basis of the order of the Additional Commissioner of Taxes (Appeals) or, as the case may be, the Commissioner (Appeals).

(3) On the application of the appellant, the Commissioner of Taxes may, if the reasons stated in the application appear to him to be satisfactory, relax the obligation to pay under sub-section (2) and shall, within 30 (thirty) days of receipt of the application, pass such order as he considers appropriate.

(4) The Excise Commissioner may, with the prior approval of the Tax Commissioner, file an appeal in the Appellate Tribunal against the order passed by the Additional Tax Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) under section 289.

(5) Every appeal under sub-section (1) or sub-section (3) shall be filed within 60 (sixty) days after the taxpayer or, as the case may be, the Commissioner is informed of the order against which the appeal is filed:

Provided that, even if an appeal is failed to be filed within the prescribed period of 60 (sixty) days, if the Appellate Tribunal is satisfied that there were sufficient reasons for the said failure, then the said appeal shall be accepted even after the expiry of the said period.

(6) An appeal shall be filed with the Appellate Tribunal in the prescribed form and manner and, except in the case of sub-section (2), a fee of 1 (one) thousand taka shall be paid along with the appeal filed.

(7) The Board, by notification in the Official Gazette,-

(a) may prescribe the areas in which appeals may be filed electronically or in any other machine- readable or computer-readable medium; and

(b) may prescribe the form and procedure for filing such appeal.

Disposition of appeal by the Appellate Tribunal

292. (1) The Appellate Tribunal shall, after giving both parties to the appeal an opportunity of being heard, pass such order in the appeal as it considers appropriate.

(2) Before deciding any appeal, the Appellate Tribunal may call for any information relating to the appeal or may arrange for further investigation in this regard by the Excise Commissioner.

(3) In case any change is made in the tax assessment order of a firm or partnership due to an appeal case, or the tax assessment order of a firm or partnership has to be made afresh, in that case the Appellate Tribunal shall direct the Excise Commissioner to amend the relevant tax assessment of the partner of the firm or partnership in accordance with the said change.

(4) In the event of disposal of any appeal case, the Appellate Tribunal shall, within 30 (thirty) days of the order issued by it, notify the appellant and the Commissioner of the said order.

(5) Except as provided in this Chapter, the order given by the Appellate Tribunal in any appeal shall be deemed to be final.

(6) Notwithstanding anything contained in this Act, if an appeal is filed by a taxpayer with the Appellate Tribunal, and the Appellate Tribunal fails to pass any order on the appeal before the expiry of 180 (one hundred and eighty) days following the month in which it was filed, the appeal shall be deemed to have been allowed and in case the case is heard by an Appellate Tribunal consisting of 2 (two) members and an additional member is appointed due to disagreement in the decision, the said period shall be 240 (two hundred and forty) days following the month in which the appeal was filed.

Reference to the High Court Division

293. (1) If the taxpayer or the Commissioner desires to have any legal question arising out of such order resolved by a reference case to the High Court Division within 90 (ninety) days from the date of receipt of the order of the Appellate Tribunal by the taxpayer or the Commissioner under section 292, he may apply to the High Court Division in the form prescribed for this purpose:

Provided that no reference case shall be filed under sub-section (1) against any order of the Tax Appellate Tribunal unless the taxpayer pays the fees and taxes at the following rates, namely:-

(a) In the case of a taxpayer, a fee of 2 (two) thousand taka is not attached with the application; and

(b) Where the tax claim does not exceed 10 (ten) lakhs of taka, if the taxpayer fails to pay 15% (fifteen percent) of the amount equivalent to the difference between the tax assessed and the 132 [accepted tax liability] on the basis of the order of the Appellate Tribunal;

(c) In cases where the tax claim exceeds 10 (ten) lakhs of taka, if the taxpayer fails to pay 25% (twenty-five percent) of the amount equivalent to the difference between the tax assessed and the 133 [accepted tax liability] as per the order of the Appellate Tribunal.

(2) The Board may, on the application of the taxpayer, reduce or waive the amount of such payment, except for the fee under sub-section (1).

(3) The application under sub-section (1) shall be made in 3 (three) pages and the following documents shall be attached therewith, namely:-

(a) 3 (three) certified copies of the order of the Appellate Tribunal in which the legal question arose;

(b) 3 (three) certified copies of the order of the Excise Commissioner, the Inspector Additional Commissioner of Taxes or the Appellate Additional or Joint Commissioner or, as the case may be, the Commissioner of Taxes (Appeals) which was the subject of the appeal to the Appellate Tribunal, and

(c) 3 (three) certified copies of any other documents relating to the legal question arising from the subject matter of the application, which were filed with the Excise Commissioner, the Inspector Additional Excise Commissioner or the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal in the proceedings relating to the order referred to in clause (a) or (b).

(4) Where the taxpayer is the plaintiff, the Commissioner shall be deemed to be the defendant and where the Commissioner is the plaintiff, the taxpayer shall be deemed to be the defendant:

Provided that the application shall not be vacated on the death of the taxpayer or his successor or if the taxpayer is a dissolved company, and the application shall remain active by the taxpayer's executor, administrator or heir or other legal representative if the taxpayer is the plaintiff, or by the taxpayer's pro se or anti se or, as the case may be, by the liquidator or receiver if the taxpayer is the defendant.

(5) After receiving the notice of the date fixed for hearing the application, the respondent shall file a written reply to the application at least 7 (seven) days before the date of hearing; and the reply shall clearly state whether the legal question was actually raised by the plaintiff in the light of the relevant order of the Appellate Tribunal.

(6) If the question raised by the plaintiff is considered to be defective in the opinion of the defendant, the context in which it may be defective shall be described in the above reply and if any legal question is involved in the order concerned, the question may be stated in that reply; and the reply shall be filed in 3 (three) pages and all documents relating to the question raised shall be attached to the application which were supplied to the Excise Commissioner, the Inspector Additional Excise Commissioner, the Additional Excise Commissioner (Appeals), the Commissioner (Appeals) or, as the case may be, the Appellate Tribunal for the purpose of proceedings connected with any order referred to in clause (a) or (b) of sub-section (2).

(7) Section 5 of the Limitation Act, 1908 (Act No. IX of 1908) shall apply to an application under sub-section (1) .

High Court Division Decision

294. (1) Where any reference case under section 293 is brought before the High Court Division, it shall be heard by a Bench consisting of at least two (2) Judges and the provisions of section 98 of the Code of Civil Procedure, 1908 (Act No. V of 1908) shall apply so far as may be.

(2) The High Court Division, after hearing the reference case brought under section 293, shall give a decision to resolve the legal complications raised in the case and shall give a judgment explaining the background of taking such decision and shall send a copy of such judgment to the Appellate Tribunal under the seal of the Court and the signature of the Registrar and the Tribunal shall issue such order as it deems necessary for the purpose of disposal, making provision for consistency with such judgment.

(3) The costs of a reference case in the High Court Division under section 293 shall be determined at the discretion of the court.

(4) Notwithstanding the manner in which a reference case is received or filed in the High Court Division under section 293, unless the High Court Division has issued a stay order on the collection of tax in that case, the tax shall be payable on the basis of the assessment of tax.

Appeal to the Appellate Division

295. (1) In the case of any judgment given by the High Court Division under section 294, an appeal may be made to the Appellate Division if the High Court Division certifies that the judgment is appealable to the Appellate Division.

(2) The provisions of the Code of Civil Procedure 1908 (Act No. V of 1908) shall, so far as may be, apply to an appeal under this section in the Appellate Division in the same manner as they apply to a decree by the High Court Division:

Provided that nothing in this section shall be construed as affecting the provisions of sub-section

(2) or (4) of section 294:

Provided further that the High Court Division may deliver the petition filed for the implementation of the order relating to the expenses approved as an order of the Appellate Division to any court subordinate to it.

(3) In cases where the judgment given by the High Court Division under this section is varied, the order of the Appellate Division shall be given effect in the same manner as is followed for giving effect to the judgment of the High Court Division as mentioned in sub-sections (2) and (4) of section 294.

(4) The provisions of sub-sections (3) and (4) of section 294 relating to expenses and payment of taxes shall be equally applicable to appeals in the Appellate Division as they are applicable to reference cases in the High Court Division under section 294.

CHAPTER THREE

Alternative Dispute Resolution

Definition 296. For the purposes of this Chapter, unless there is anything contrary to the subject or context,-

(1) “Authorized representative” means the authorized representative referred to in sub-section (2) of section 327;

(2) “Bench” means the Bench of the Tax Appellate Tribunal;

(3) “Commissioner’s Representative” means any officer authorized by the Commissioner of Taxes from among the income tax authorities under section 4 to represent them in the alternative dispute resolution process under this Chapter;

(4) “Court” means the Supreme Court;

(5) “Dispute” means any complaint by a taxpayer regarding the following matters:

(a) If the amount of income tax assessment declared by the taxpayer in the return is more than the income of the relevant year; or

(b) If the amount of income tax assessed as a result of an order of the Appellate Authority under Chapter II of Part 20 is higher than the amount of income tax assessed as declared by the taxpayer in the return.

Alternative Dispute Resolution

297. Any dispute relating to assessment of tax pending before any Income Tax Authority or Tax Appellate Tribunal or Court may be settled through Alternative Dispute Resolution process in the manner prescribed in this Chapter and in the rules made under this Chapter, and subject to the qualifications, conditions and limits prescribed by the Board, by notification in the Official Gazette.

Application of alternative dispute resolution

298. (1) Subject to the provisions of sub-section (4), a taxpayer may apply for the resolution of a dispute pending before the Appellate Income Tax Authority or any division of the Tax Appellate Tribunal or the Supreme Court through the Alternative Dispute Resolution process.

(2) If any dispute is pending in any division of the Supreme Court, the taxpayer shall obtain the permission of the court before filing an application under sub-section (1):

Provided, however, that if a writ is filed regarding a dispute, the dispute cannot be resolved through alternative dispute resolution processes.

(3) Alternative Dispute Resolution Application-

(a) It must be submitted in the prescribed form, at the prescribed time and after paying the fee, after attesting;

(b) The relevant appeal shall be filed with the Income Tax Authority or the Tax Appellate Tribunal or, as the case may be, with the Registrar of the Supreme Court.

(4) The taxpayer shall submit the relevant documents, records and a statement containing the legal basis and factual facts along with the application.

(5) If a taxpayer has filed a return for any income year, he shall not be eligible to file an application for alternative dispute resolution unless he has paid 134 [acknowledged tax liability] for that income year.

Commissioner's representative

299. (1) The concerned Tax Commissioner may nominate any Income Tax Authority not below the rank of Excise Commissioner, hereinafter referred to as Income Tax Representative, to mediate with the taxpayer applying for alternative dispute resolution.

(2) The Income Tax Representative designated under sub-section (1) shall participate in all mediation proceedings for alternative dispute resolution and, if an agreement is reached, shall sign the agreement of the said mediation proceedings.

Facilitator in the alternative dispute resolution process

300. (1) An alternative dispute resolution process shall be conducted between the taxpayer and the Commissioner's representative through the mediation of a facilitator appointed by the Board.

(2) The assistant shall perform the prescribed duties and responsibilities and receive the prescribed fee.

Taxpayer's rights and obligations for alternative dispute resolution

301. (1) The taxpayer involved in the alternative dispute resolution process shall have the right to participate in the mediation with the representative of the Commissioner, either personally or through his authorized representative.

(2) Alternative dispute resolution mediation shall be limited to presenting arguments with the taxpayer, accompanied by legal and factual documents and evidence, on the disputed issues involved.

(3) If an agreement can be reached, the taxpayer shall, if any tax liability is imposed on the basis of the agreement, pay it within the agreed period.

Method of resolving tax disputes through alternative dispute resolution

302. (1) On receipt of an application for alternative dispute resolution, the facilitator shall send a copy of the application to the concerned Excise Commissioner and seek his opinion on the matter and whether the conditions of section 298 have been complied with.

(2) If the Excise Commissioner, after receiving the copy referred to in clause (c) of sub-section (3), fails to give his opinion on the compliance of the conditions within 5 (five) working days, then the applicant may treat the conditions mentioned in the application as having been complied with.

(3) Assistant-

(a) may notify the applicant and the Tax Commissioner or the Commissioner's representative in writing to attend the dispute resolution meeting on the date specified in the notice;

(b) may, from time to time, adjourn the meeting if deemed necessary;

(c) may call for documents or evidence from the Excise Commissioner or the applicant before or at the meeting for the purpose of resolving the dispute; and

(d) If considered appropriate, an inquiry may be conducted by any income tax authority before the application is disposed of.

(4) The facilitator shall assist the applicant taxpayer and the Commissioner's representative in reaching an agreement for the purpose of resolving the dispute through discussion and meetings.

Temporary stay of proceedings related to appeals or references pending in the Appellate Tribunal or High Court Division

303. Where a taxpayer applies for alternative dispute resolution in any income year and the Excise Commissioner files an appeal in the Appellate Tribunal for that income year or the Tax Commissioner sends a reference to the High Court Division, and no decision is given in this regard by the Appellate Tribunal or, as the case may be, the High Court Division, in that case, the proceedings relating to the said appeal or reference shall be stayed for the time being until the application for alternative dispute resolution is disposed of.

Alternative Dispute Resolution Process Decision

304. (1) In cases where both parties agree on any matter or matter of legal dispute relating to a dispute under this Act, the matter in dispute may be resolved, in whole or in part, through alternative dispute resolution processes on the basis of agreement.

(2) In case of partial or complete agreement between the taxpayer and the representative of the Tax Commissioner on the settlement of the dispute, the facilitator shall record the details of the agreement in the prescribed manner.

(3) The record of such agreement shall contain a description of the terms of the agreement, including any taxes payable or refundable and other necessary and appropriate matters, and shall also include the method of payment of just dues based on the agreement and such other matters as the Facilitator may consider appropriate.

(4) If it is later discovered that the consensus process was completed through fraud and presentation of false information, then it will be void.

(5) The taxpayer, the Commissioner's representative and the assistant shall sign the agreement.

(6) In case it is not possible to reach an agreement, partially or completely, due to non- cooperation of any party between the applicant taxpayer and the representative of the concerned Commissioner, or if there is a disagreement in the resolution of the dispute, the facilitator shall, within 15 (fifteen) days of the occurrence of the disagreement, inform the applicant, the Board, the concerned court, tribunal, appellate authority and, as the case may be, the Income Tax Authority about the unsuccessful resolution of the dispute, by recording the reasons.

(7) Where an agreement is reached on the method and time of collection and refund of dues and the same is duly recorded and signed, the facilitator shall, in accordance with the provisions of this Act, inform the taxpayer and the concerned Excise Commissioner of the agreement.

(8) If the facilitator fails to reach an agreement within 3 (three) months following the end of the month in which the application was made , then it shall be deemed that no agreement has been reached.

(9) In case of successful agreement, the facilitator shall send a copy of the agreement to all the parties mentioned in sub-section (6) within 15 (fifteen) days from the date on which the facilitator and the parties sign the agreement.

Consensus results

305. (1) Notwithstanding anything contained in any other provision of this Act, an agreement entered into under sub-section (9) of section 304 shall be binding on both the parties and no objection shall be raised against it by the taxpayer or any income-tax authority before any authority, tribunal or court.

(2) In the case of an agreement entered into under section 304, the matter referred to therein shall be final and any matter not agreed upon may be reopened in any proceeding under this Act.

Limitation of appeal in case of disagreement

306. (1) Notwithstanding anything contained in this Act, in all disputes in which there is no partial or complete agreement, the taxpayer shall-

(a) In case of any dispute arising from the order of the Excise Commissioner, an appeal may be filed with the Appellate Tax Commissioner or the Additional Tax Commissioner (Appeals) or, as the case may be, the Tax Commissioner (Appeals);

(b) In case of any dispute arising out of the order of the Additional Tax Commissioner (Appeals) or, as the case may be, the Tax Commissioner (Appeals), an appeal may be filed before the Tax Appellate Tribunal;

(c) In cases where the applicant taxpayer obtains permission to appeal from the relevant appellate authority or court for alternative dispute resolution, he may file an appeal with that authority.

(2) In calculating the limitation period for filing an appeal, the time spent in obtaining a decision or order in the alternative dispute resolution process from the date of filing the application by the applicant for alternative dispute resolution shall not be included.

Verification of authenticity after consensus

307. (1) The Board may, in the prescribed manner, monitor the progress of the resolution of alternative dispute resolution applications and ensure the provision of necessary support and coordination services.

(2) Copies of all correspondence relating to the agreement or disagreement shall be forwarded by the facilitator to the concerned Commissioner and the Board for verification and determination of legal or factual accuracy.

(3) After receiving the copy of the agreement or the matters of disagreement, if it appears to the Board that the agreement filed will cause loss of revenue through fraud, misrepresentation or concealment of real information, then the said agreement shall be deemed to be void and the matter shall be referred to the concerned authority, tribunal or court for taking necessary action.

Interference in civil or criminal proceedings

308. No civil or criminal case shall be brought before any court, tribunal or authority against any measure or agreement taken in good faith by any person involved in the alternative dispute resolution process.

PART 21

Data protection

Confidentiality of statements, income, etc.

309. (1) Notwithstanding anything contained in any other law for the time being in force, subject to the provisions of this section, all particulars or information containing the following matters shall remain confidential and shall not be disclosed, namely:-

(a) statements prepared, returns filed or accounts or documents etc. under the provisions of this Act;

(b) any evidence, affidavit or document submitted in the course of any proceedings under this Act, other than proceedings taken under Part 22; and

(2) Notwithstanding anything contained in the Evidence Act, 1872 (Act I of 1872), the Anti- Corruption Commission Act, 2004 (Act No. 5 of 2004) or any other law for the time being in force, no court or other authority shall, except in the cases provided for in this Act, order the production of any return, account or document, or any part thereof, relating to any proceedings under this Act, any record relating to any action taken under this Act, or call for the production of any evidence or evidence in any matter by any servant of the Republic.

(3) The prohibition under sub-sections (1) and (2) shall not apply to the publication of the following matters, -

(a) Any necessary papers, statements, returns, documents, evidence, affidavits or other matters submitted by any authority for the purpose of investigating any offence under the following Acts:

(a) Penal Code (Act No. XLV of 1860); or

(ii) Anti-Corruption Commission Act, 2004 (Act No. 5 of 2004):

Provided that, in cases where the Magistrate Court orders the disclosure or production of any papers, or any statements, returns, accounts, documents, evidence, affidavits or submissions necessary for the investigation, such necessary papers, or any statements, returns, accounts, documents, evidence, affidavits or submissions may be disclosed or produced only in such cases;

(b) any papers, statements, returns, documents, evidence, affidavits or other matters required for the purpose of prosecuting any offence under this Act;

(c) any particulars or information considered necessary for the purpose of this Act to any person concerned with the implementation of this Act, or any matters provided to any expert working on behalf of the Government or in any international organization of which Bangladesh is a member;

(d) to obtain any particulars or information in any legal proceedings or to demand the recovery of any dues under this Act;

(e) any documents or statements relating to the recovery of tax arrears by the taxpayer to the Board or any officer authorized by it, or to the Commissioner, any government department, local authority, bank, corporation or any other organization;

(f) any documents produced for the purpose of any proceedings in any civil court arising out of this Act and to which the Government is a party;

(g) Any matters relating to the performance of constitutional duties by the Auditor General and Comptroller of Bangladesh;

(h) Matters relating to tax collection or refund audit by any officer or board appointed by the Auditor General and Comptroller of Bangladesh;

(i) During the investigation into the conduct of any employee of the Income Tax Department, the matters to be presented to the person responsible for conducting the investigation or the Public Service Commission established under the Constitution while performing the functions arising out of such investigation;

(j) any matter relating to the investigation of any misconduct proceedings brought against any tax lawyer in matters relating to income tax activities which has been submitted to any authority empowered to take disciplinary action against such lawyer;

(k) any matter by any public servant where legal proceedings are to be taken in respect of the filing of documents including insufficient stamp duty under the Stamp Act, 1899 (Act II of 1899);

(l) The Government of the People's Republic of Bangladesh has concluded an agreement for the avoidance of double taxation with the government of any country outside Bangladesh, with the authorized officer of that government and in cases where the relevant information is subject to disclosure in accordance with that agreement for the prevention of revenue evasion;

(m) for the purpose of collecting any tax payable to any officer by the Government or for the purpose of collecting any tax levied by it;

(n) any such power as may be necessary for the purpose of implementing the Excise and Salt Act, 1944 (Act No. I of 1944), the Gift Tax Act, 1990 (Act No. 22 of 1990 ), the Customs Act, 1969 (Act No. IV of 1969), the Value Added Tax and Supplementary Duty Act, 2012 (Act No. 47 of 2012);

(o) any specific matter, to the competent authority, where it is necessary to determine whether income-tax has been assessed on any person in any particular income year or income years under any provision of any law for the time being in force;

(p) any information necessary for the performance of the functions of any officer or department of the Government for the purpose of investigating the conduct of public servants and matters connected therewith;

(t) any information necessary for the purpose of an investigation into money laundering and terrorist financing, if requested by the competent authority for the purpose of authorizing prosecution in relation to money laundering and terrorist financing;

(r) any such particulars or information or matters as may be required by any order under sub- section (2) of section 19 of the Foreign Exchange Regulation Act, 1947 (Act No. VII of 1947);

(s) any information which has not been filed or exhibited by the taxpayer but has been discovered in the course of any proceedings conducted under this Act;

(n) any return, statement or certificate required to be filed, exhibited or verified under any provision of this Act;

(p) List of highest taxpayers prepared under the rules made for this purpose.

(4) Nothing in this section shall apply to the production of any document, declaration or affidavit in any court or to the evidence of any statement or deposition made by a public servant under section 192.

(5) Any information furnished to any person under this section and any person or employee under his control in respect of such information shall be subject to such liability as if he were a public servant, shall be subject to such rights, privileges, duties and obligations as are due under the provisions of this Act.

(6) The prohibition on disclosure of any information mentioned in this sub-section (1) shall not apply to the voluntary declaration of the person preparing the statement, the person preparing the return, the accounts or documents prepared, the evidence given or affidavit or the information furnished, howsoever be.

PART 22

Criminal offenses and justice

The provisions of this Part shall be consistent with other provisions.

310. (1) The provisions of this Part shall apply to the conduct of criminal cases without prejudice to the provisions of other laws.

(2) The provisions of this Part shall have effect independently of any other order made or to be made under this Act and shall not be a defence to the non-provision of any order on account of time constraints or for any other reason.

Penalties for failure to provide information and failure to perform certain functions

311. If any person fails to furnish the information or perform the following acts without reasonable cause, he shall be punished with rigorous imprisonment for a term which may extend to 1 (one) year or with fine or with both, if he-

(a) fails or refuses to provide information within the time specified under section 200, 201, 204 or 205;

(b) does not grant permission for inspection or consent to take copies in accordance with section 202;

(d) fails to provide the Income Tax Authority with the necessary facilities or information for the performance of its functions in exercising its powers under section 205;

(e) does not permit or obstructs any income tax authority from exercising its powers under section 147 or section 206.

(f) fails to comply with an order given under sub-section (1) of section 223;

Penalty for attempting to evade taxes

312. (1) If any person intentionally attempts to evade the tax payable under this Act by any means, he shall be punished with imprisonment for a term which may extend to 5 (five) years, but not less than 6 (six) months, or with fine, or with both.

(2) A person shall be deemed to have intentionally attempted to evade tax payable under this Act if he-

(a) Conceals specific details of income;

(b) intentionally provides false information about assets, liabilities and expenses to reduce the liability to pay income tax;

(c) provides false information or statement in respect of any account or other document in his possession or under his control, which is relevant to any proceedings under this Act;

(d) prepares or causes to be prepared any false information or statement in accounts or other statements;

(e) intentionally omits or causes to be omitted any relevant information or statement in the accounts or other statements; or

(f) Takes any other initiative to avoid paying income tax payable under this Act.

Penalty for false statement proven to be true, subject to verification

313. If any person makes any such account or statement which is false, and he knows or believes that it is false or does not believe it to be true, he shall be punished with rigorous imprisonment for a term which may extend to 5 (five) years, but not less than 6 (six) months, and with fine.

Penalty for false certificate

314. If any person signs or issues any certificate under this Act which he knows or believes to be false or does not believe to be true, he shall be punished for signing or issuing any certificate with imprisonment for a term which may extend to 1 (one) year but not less than 3 (three) months.

Penalty for failure to deduct or collect tax at source and to deposit it in the government treasury

315. (1) Any person shall be punished with rigorous imprisonment for a term which may extend to 1 (one) year, or with fine, or with both, if he, without reasonable cause,

(a) fails to levy or collect and pay the tax required under the provisions of Part 7;

(b) Fails to collect and pay tax as required under sub-section (3) of section 221.

(2) If the amount of tax deducted, collected or paid does not exceed 25 (twenty-five) thousand taka, then the provisions of sub-section (1) shall not apply.

(3) Where any person voluntarily deducts tax under sub-section (1) before being identified by the Income-tax Authority, no case shall be filed against that person for failure to deduct, collect or pay tax within the prescribed time.

(4) The fine referred to in sub-section (1) shall be calculated at such rate as shall not be less than 100 (one hundred) taka nor more than 500 (five hundred) taka for each day during the period of continuous default.

Penalty for providing false audited statements subject to verification

316. If any person files with or in connection with a return any audited statement of accounts which is false or untrue and he knows or believes that it is false or untrue, or does not believe it to be true, he shall be punished with rigorous imprisonment for a term which may extend to 5 (five) years but which may not be less than 6 (six) months.

Penalties for improper use of taxpayer identification numbers.

317. Any person who intentionally makes a false or improper use of the taxpayer identification number of another person shall be guilty of an offence and shall be punishable with imprisonment for a term which may extend to 1 (one) year or with fine which may extend to 1 (one) lakh taka or with both.

Penalty for obstructing the Income Tax Authority

318. If any person obstructs any income tax authority in the performance of its functions under this Act, he shall be punished with imprisonment for a term which may extend to 1 (one) year or with fine or with both.

Penalty for transfer of property for the purpose of preventing attachment

319. If the owner of any property, or his representative or a person claiming on his behalf, after receiving a notice from the tax recovery officer, sells, mortgages, settles, leases or otherwise disposes of any property for the purpose of preventing attachment, he shall be punished with imprisonment for a term which may extend to 5 (five) years or with fine or with both.

Penalty for failure to comply with the provisions of sub-section (7) of

section 221

320. If any person fails, without reasonable cause, to comply with any direction required under sub-section (7) of section 221, he shall be punished with imprisonment for a term which may extend to 1 (one) year, or with fine, or with both.

Punishment for persuasion

321. If any person knowingly aids, abets, incites or instigates any other person to commit an offence under this Act, the first-mentioned person shall be punished with imprisonment for a term which may extend to 2 (two) years, or with fine, or with both.

Penalty for disclosure of protected information

322. If any public servant, or any person assisting him, or any person employed or any person connected with the implementation of this Act, discloses any protected document, special statement or information in violation of the provisions of section 309, he shall be punished with imprisonment for a term not exceeding 6 (six) months, or with fine, or with both.

Crime committed by a company, firm or association of individuals

323. Where any offence under this Act is committed by a company, firm or association of persons-

(a) the said company, firm or association of individuals shall only be fined; and

(b) Every person who was directly responsible for the management or exercise of power of the company or any business connected therewith, or for the management or exercise of any firm or association of persons, shall be punished with rigorous imprisonment for a term which may extend to 6 (six) years, but not less than 6 (six) months, and with fine.

(2) Every company, firm or association of persons and every person mentioned in clause (b) of sub-section (1) shall be liable to trial and punishment in accordance with the provisions of this Act.

(3) The persons mentioned in clause (b) of sub-section (1) shall not be punished if he is able to prove that-

(a) The offence was committed without his knowledge, consent or acquiescence;

(b) the offence was not committed through any negligence on his part; and

Case management approval

324. No case shall be filed for any offence punishable under any provision of this Part without the previous approval of the Commissioner of Taxes.

Power to compromise crime

325. The Commissioner may, with the prior approval of the Board, enter into a compromise before or after the commencement of any proceedings or case for an offence punishable under this Part, before or after the commencement of the prosecution proceedings.

Trial by special judge

326. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act No. V of 1898) or any other law, an offence punishable under this Chapter, other than an offence under section 322, shall be tried by a Special Judge appointed under the Criminal Law Amendment Act, 1958 (Act No. XL of 1958) as if the offence were an offence in the Schedule to that Act.

(2) Subject to the provisions of section 324, a Special Judge may, on a written complaint by the Excise Commissioner, take cognizance of any offence under this Act, other than an offence under section 322.

PART 23

Authorized representative

Authorized representative for attendance

327. (1) Any taxpayer who is fit or required to appear before any Income-tax Authority or Appellate Tribunal in connection with any proceedings under this Act may, in addition to appearing in person under section 221, appear through an authorised representative.

(2) For the purposes of this section, “authorised representative” means a person who is authorised in writing to appear on behalf of the taxpayer and who—

(a) the father, mother, husband or wife, son, daughter, brother or sister of the taxpayer;

(b) any full-time regular employee of the taxpayer;

(3) For the purposes of clause (c) of sub-section (2), “tax lawyer” means –

(a) Any person registered as a lawyer with the Bangladesh Bar Council;

(b) practicing chartered accountant;

(d) Practising Chartered Secretaries of Bangladesh;

(e) has worked as an Income Tax Authority for at least 5 (five) years in a position not below the Excise Commissioner; or

(f) Any person certified as a tax lawyer by the Board.

(4) Every tax lawyer shall be a member of a tax lawyer association registered with the Board.

(5) The Board shall grant registration to tax bar associations and no bar association shall be deemed to be a tax bar association unless it is registered with the Board.

(6) The Board may make rules on the following matters, namely:-

(a) Obtaining and canceling certification as a tax lawyer;

(b) Code of Conduct for Tax Lawyers;

(d) Tax lawyer discipline and appeals; and

(e) Registration and obtaining credentials as a tax lawyer.

PART 24

Electronic tax management

328. (1) Where any return, return of tax at source, statement, application or document of any kind is required to be filed with any income-tax authority or Tax Appellate Tribunal under any provision of this Act, such return, statement, application or document may be filed in such electronic, computer-readable or machine-readable form and manner as may be accepted or approved by the Board.

(2) Any notice, order, demand, certificate, communication, letter or acknowledgement of receipt sent on a specific computer or electronic system adopted or approved by the Board shall be considered as any notice, order, demand, certificate, communication, letter or acknowledgement of receipt under this Act.

(3) The Board may develop, use and introduce any computer or electronic system for the purpose of ensuring electronically the attendance or hearing of any matter before the Income Tax Authority or the Tax Appeal Tribunal under any provision of this Act and may issue necessary orders for ensuring attendance and hearing through such system.

(4) The Board may, by special order, make it mandatory to file returns, returns of tax at source, any kind of statement, application or document electronically with any income tax authority or with the Tax Appellate Tribunal in respect of any specified class of persons or any specified class of income.

(5) The Board may issue special orders regarding payment of tax through electronic means or other matters related to tax compliance.

PART 25

Miscellaneous

Providing assistance to the Income Tax Authorities

329. All officers and employees of government and semi-government institutions, law enforcement agencies, autonomous bodies, statutory bodies, financial institutions, educational institutions, private organizations, local authorities and private organizations shall assist the Income Tax Authority in the performance of its duties under this Act.

Error correction 330. (1) Where any Income-tax Authority or the Appellate Tribunal, on its own motion or on the basis of a written application of the taxpayer or on the basis of information from any other source, finds any error in any order, the Income-tax Authority or the Appellate Tribunal may, by order in writing, rectify such error:

Provided that no amendment shall be made under this sub-section after the expiry of a period of 4 (four) years from the date of issuance of the order.

(2) Where any taxpayer, in respect of any tax year, makes a claim to the Excise Commissioner by written application that under this Act-

(a) a payment has been made in excess of the amount due; or

(b) No credit has been given for any tax paid by the taxpayer;

In that case, the Excise Commissioner shall, after verifying the validity and correctness of the taxpayer's claim, refund the said excess amount in the tax year in which it was paid or, as the case may be, grant credit for the tax paid.

(3) No liability under sub-section (1) shall be modified without giving the parties affected a reasonable opportunity of being heard in the event of such modification increasing the assessment of tax or reducing the refund or otherwise increasing the liability of the taxpayer.

(4) Where any error referred to in sub-section (1) has been brought to the notice of the concerned authority by the taxpayer and the error is not rectified within the financial year following the date of notification to the authority, the error shall be deemed to have been rectified under this sub- section and the provisions of this Act shall apply accordingly.

(5) Where, after the assessment of the tax of a partner of a firm, it appears from the assessment of the tax of that firm or from the decrease or increase in the income of the firm under section 213, 285, 289, 292, 294, 295 or 304 that the share of the profit or loss of the firm has not been included in the assessment of the income of that partner or, if included, has not been correctly included, the inclusion or correction, as the case may be, of the partner's share in the assessment of that tax shall be made in such a manner as to be deemed to have corrected the error recorded under this section and the provisions of sub-section (1) shall have effect accordingly.

(6) Where, as a result of proceedings under section 212, the tax of a firm or partnership is assessed and it is necessary, in the opinion of the Excise Commissioner concerned, to calculate the total income of the partner in the firm or, as the case may be, of the member of the partnership, the Excise Commissioner shall not calculate the total income in such case and shall determine the amount payable on the basis of such calculation as if the calculation had been corrected in error subject to the record under this section and the provisions of sub-section (1) shall have effect accordingly.

Calculate taxes to the nearest dollar.

331. In determining the amount of money payable or refund under this Act, any fraction of money equal to 50 (fifty) paisa or more shall be treated as 1 (one) taka.

Proof provided for money paid or recovered

332. A receipt shall be given for money paid or recovered under this Act.

Calculation of the limitation period

333. (1) In computing the period of limitation prescribed for filing an appeal or application under this Act, if a copy of the order is not furnished to the taxpayer on the date on which the order in question was issued or at the time of issuing the notice, then the time required for the taxpayer to receive the copy of the order shall be excluded in computing the period of limitation.

(2) If the day of limitation fixed for filing an appeal or application under this Act is a holiday, then the appeal or application may be filed on the day immediately following that holiday.

Power to extend time limit or extend statute of limitations

135 [334. Notwithstanding anything contained in any other provision of this Act,-

(a) The Board may, by order, extend the tax period by not more than 1 (one) month;

(b) Where there is a declaration or order of the Government stating that there is an epidemic, pandemic, natural calamity or war, the Board may, in the public interest, with the previous approval of the Government, by issuing an order, extend the period for compliance with any provision of this Act or extend the period for compliance. However, where there is a declaration or order of the Government stating that there is an epidemic, pandemic, natural calamity or war, the Board may, in the public interest, with the previous approval of the Government, by issuing an order, extend the period for compliance with any provision of this Act or extend the period for compliance.]

Notice issued 335. (1) Any notice, tax assessment order, tax or refund calculation form, or any other document may be served on the person named therein by registered post or by the official electronic mail of the sender to the electronic mail address specified by that person or by a court in the manner prescribed by the Code of Civil Procedure, 1908 (Act V of 1908).

(2) If any notice, tax assessment order, tax or refund calculation form, or any other document is received by the authorized representative referred to in section 327, such receipt by the authorized representative shall be deemed to be a valid delivery to that person.

(3) Notice may be sent in the following manner, namely:-

(a) in the case of a firm or a Hindu Undivided Family, to any member of the firm, or to the manager or to any adult member of the family;

(b) in the case of a local authority or company, to its chief executive, by whatever name he may be called;

(d) if a firm or partnership is dissolved, to any person who was a member of the firm or partnership, as the case may be, immediately before the dissolution;

(e) Section 191 applies in the case of the closure of any business, if the business is closed-

(i) in the case of any person whose income is to be determined;

(ii) in the case of any such company, to the chief executive of that company; and

(e) in the case of any such firm or partnership, to any such person who was a partner at the time of the cessation of the activities of such firm or partnership;

(f) where information is received under section 192 of the division of a Hindu undivided family, to the person who was the last manager of the family or, if such person is deceased, to all such adult members of the family who were members of the family before the division; and

(g) in any other case, to a person who is not a person who manages or controls the affairs of that person or institution.

(4) After filing a return under any notice or after compliance with the notice, no question shall be raised as to the validity of such notice or the validity of its issuance.

Explanation- For the purposes of this section,

(a) "Notice" shall include any order, direction or demand issued under this Act;

(b) “Electronic mail” means any electronic mail as defined in the Information and Communication Technology Act, 2006 (Act No. 39 of 2006);

(c) “Sender’s official electronic mail” means the electronic mail designated by the Board for the income tax authority for sending notices;

(d) “Electronic mail address assigned to the individual” means the electronic mail address;

(i) as provided in the return of that person filed for the relevant income year;

(ii) Any person who has notified the Income Tax Authority in writing of the electronic mail address of such person.

Not to consider tax assessment, etc., as defective for certain errors

336. No assessment, order, notice, warrant or other instrument made, issued or executed under this Act or deemed to be made, issued or executed shall be void or otherwise invalid merely by reason of the absence of any prescribed form or of any mistake, defect or deviation therein unless such absence, mistake, defect or deviation in the form substantially prejudices the taxpayer.

Measures taken in case of company liquidation

337. Notwithstanding anything contained in the Companies Act, 1994 (Act No. 18 of 1994), no leave of the court shall be required to continue or commence any proceedings under this Act in the case of a company which has been ordered to be wound up or a provisional liquidator has been appointed.

Exoneration 338. (1) If any person deducts, collects, withholds or pays any tax from the income of any other person by virtue of this Act, that person shall be exempt from liability for such deduction, collection, withholding or payment of tax.

(2) No suit shall be filed in any civil court for the setting aside or revision of any assessment of tax made under this Act or for any other order.

(3) No criminal case shall be instituted or any other proceedings shall be taken against any Government servant under any other law for any act done or attempted to do in good faith under this Act.

Implementation of pending legal provisions for tax imposition

339. If on the first day of July in any year no provision has been made by an Act of Parliament for the purpose of imposing tax for that year, then the provision proposed in the Bill introduced in Parliament or the provision enacted in the previous year, whichever is more convenient to the taxpayer, shall continue to have effect under this Act.

Incentives for officers and employees

340. Notwithstanding anything contained in the other provisions of this Act or in any other law for the time being in force, the Board may, by order published in the Official Gazette, award prizes to the following persons, namely:-

(a) Outstanding performance by any officer or employee of the Board and the Income Tax Department, for tax collection and detection of tax evasion;

(b) the Board, and the officers and employees of the Income Tax Department, for collecting revenue in excess of the target for revenue collection in any financial year; or

Power to amend the schedule

341. The Board may, by notification in the Official Gazette, amend any Schedule to this Act:

Provided, however, that no tax shall be imposed or tax rate shall be increased through such amendment.

Troubleshooting 342. If any difficulty arises in giving effect to any provision of this Act, the Board may, with a view to removing such difficulty, issue notifications, clarifications, explanations or directions, consistent with the law.

Power to make rules

343. The Board may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.

Abolition and custody

344. (1) On the commencement of this Act, the Income-tax Ordinance, 1984 (Ordinance No. XXXVI of 1984), hereinafter referred to as the repealed Ordinance, shall be hereby repealed.

(2) Notwithstanding such repeal, under the repealed Ordinance-

(a) any act done, any action taken or any proceeding initiated shall be deemed to have been done, taken or initiated under this Act;

(b) Any action taken or any proceeding initiated, if pending or in progress, shall be dealt with as if it had been taken or initiated under this Act;

(c) any rule made or order or direction given or notification or policy issued or published notice or any other legal instrument executed, if in force immediately before such repeal, shall, subject to its consistency with this Act, continue in force until repealed or amended under this Act; and

(d) Any case or legal proceedings pending in any court shall be disposed of as if the said Ordinance had not been repealed.

Publishing translated text in English

345. (1) After the commencement of this Act, the Government shall, by notification in the Official Gazette, publish an authentic English text translated into English of the original Bengali text of this Act.

(2) In case of conflict between the Bengali and English texts, the Bengali text shall prevail.

1The words “finance company”, “to the finance company”, “in the finance company” and “of the finance company” mentioned throughout shall be substituted for the words “financial institution”, “to the financial institution”, “in the financial institution” and “of the financial institution” by section 14(a) of the Finance Act, 2024 (Act No. 5 of 2024), which shall come into force from 1 July 2024.

2The words, commas, figures and brackets “ Customs Act, 2023 (Act No. 57 of 2023)” throughout shall be substituted by the words, commas, figures and brackets “ Customs Act, 1969 (Act No. IV of 1969)” by section 14(c) of the Finance Act, 2024 (Act No. 5 of 2024) with effect from 1st July, 2024.

3The words “Commissioner of Taxation” were substituted for the word “Board” by section 15(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

4The words “Commissioner of Taxation” were substituted for the word “Board” by section 15(b) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

5Clause (11) repealed by section 15(c) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024. 6Sub-section (g) inserted by section 15(d) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024. 7Clause (25) substituted by section 15(e) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

8Clauses (26A) and (26B) were inserted by section 15(f) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

9Clause (36A) inserted by section 15(g) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

10The words “Commissioner of Taxation” were substituted for the words “National Board of Revenue” by section 15(h)(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

11The figure, brackets and words “1 (one) crore” were substituted for the figure, brackets and words “20 (twenty) lakhs” by section 15(h)(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1st July, 2024.

12Clause (57A) inserted by section 15(i) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

13The word “private” was repealed by section 15(j)(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

14The words and brackets “sub-section (g)” were substituted for the words and brackets “sub-section (e)” by section 15 (j)(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

15Clause (89A) inserted by section 15(k) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

16The words and brackets “Director (Central Intelligence Cell)” and the words and brackets “Additional Director General (Central Intelligence Cell)” were substituted by section 16(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

17The words and brackets “Joint Director (Central Intelligence Cell)” and the words and brackets “Director (Central Intelligence Cell)” were substituted by section 16(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

18The words “or Deputy Director (Central Intelligence Cell)” and the words “Commissioner of Revenue” in brackets were inserted by section 16(c) of the Finance Act, 2024 (Act No. 5 of 2024) with effect from 1st July, 2024.

19The words “or Assistant Director (Central Intelligence Cell)” and the words in brackets “Assistant Commissioner of Taxes” were substituted by section 16(d) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

20Sub-section (4) inserted by section 17 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

21Section 6 substituted by section 18 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

22The word “couple” was abolished by section 19 of the Finance Act, 2024 (Act No. 5 of 2024) with effect from 1 July 2024. 23The words “was or” were repealed by section 20 of the Finance Act, 2024 (Act No. 5 of 2024) with effect from 1st July 2024. 24Sub-section (2) repealed by section 21 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

25Chapter III is substituted by section 22 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

26The heading “Proceeds of Sale” was substituted for the heading “Proceeds of Purchase” by section 23(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

27The words “or proceeds from sale” were inserted after the words “proceeds received” by section 23(b) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1st July, 2024.

28Sub-section (7) repealed by section 23(c) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

29Clause (p) substituted by section 24 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

30The words “any loss or any loss arising against any liability” were substituted for the words “any liability” by section 25(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

31The word “property” was substituted for the words “land or premises” by section 25(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

32Clause (p) substituted by section 25(c) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

33The words, letters, symbols and brackets “clauses (d)-(j), (th), (dh) and (n)” were substituted for the words, letters and brackets “clause (dh)” by section 26 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

34The word “assets” and the comma “financial” were inserted after the word “financial” by section 27 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

35Clause (c) substituted by section 28(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

36Clauses (d) and (e) were inserted by section 28(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

37The words “in the relevant income year” were inserted after the word “that” by section 29(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1st July, 2024.

38The words “ Finance Companies Act, 2023 (Act No. 59 of 2023)”, commas, figures and brackets are substituted for the words “ Financial Institutions Act, 1993 (Act No. 27 of 1993)”, commas, figures and brackets by section 14(b) of the Finance Act, 2024 (Act No. 5 of 2024), which shall come into force from 1 July 2024.

39The word “donation” was repealed by section 29(b)(i) of the Finance Act, 2024 (Act No. 5 of 2024) with effect from 1st July 2024.

40The word “donation” was repealed by section 29(b)(i) of the Finance Act, 2024 (Act No. 5 of 2024) with effect from 1st July 2024.

41The words “shown in the return of the donor and the recipient” were substituted for the words “withdrawn from the donor’s bank account” by section 29(b)(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1 July 2024.

42Sub-section (15) repealed by section 29(c) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

43The words, figures and brackets “under sub-section (2) of section 163” were inserted before the word “minimum” by section 30 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1st July, 2024.

44The words “any person other than an individual and a Hindu undivided family” were substituted by the words “any company, firm, association of persons, fund having a turnover exceeding 3 (three) crores of taka”, in place of the numbers, brackets and commas, by section 31(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

45The words “financial statements” were substituted for the words “balance sheet” by section 31(b) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

46“:” at the end of the colon was substituted for “.” by section 31(c) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

47The provision was inserted by section 31(c) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

48The word “year” was substituted for the word “tax year” by section 32 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

49Clause (d) substituted by section 33(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

50Sub-sections (7) and (8) were inserted by section 33(b) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

51The words “not more than 6 (six) months”, the number and the brackets “within months” were substituted by section 34 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1st July, 2024.

52The word “estimated” was substituted for the word “estimated” by section 35(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

53Sub-section (2) repealed by section 35(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

54Section 88 substituted by section 36 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

55The words “or any other person” were inserted after the words and the symbol “to the said company or firm” by section 37 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1st July, 2024.

56The footnote “Deduction from money paid against local bonds” was substituted by the footnote “Deduction from money received as commission on local bonds” by section 38(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1 July 2024.

57Sub-section (3) substituted by section 38(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

58Sub-section (4) inserted by section 38(c) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

59The figure, sign, bracket and words “20% (twenty percent)” were substituted for the figure, sign, bracket and words “10% (ten percent)” by section 39 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

60Sub-section (1) substituted by section 40 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

61Section 103 is repealed by section 41 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July 2024.

62Section 113 repealed by section 42 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

63The words “or any specified person who purchases electricity from a captive power producer” were inserted after the words “any person” by section 43 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1st July, 2024.

64The figures, symbols, brackets and words “7.5% (seven point five percent)” were substituted for the figures, symbols, brackets and words “10% (ten percent)” by section 44(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

65Clause (1) substituted by section 44(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024. 66Clause (2) substituted by section 44(c) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024. 67Sub-section (1) substituted by section 45 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024. 68Section 126 substituted by section 46 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

69The words “by the lessee” were substituted after the word “rate” by section 47 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

70Section 130 substituted by section 48 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024. 71Clause (c) substituted by section 49 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024. 72Section 135 is substituted by section 50 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

73The words and commas “resort, motel, restaurant, convention center,” after the word and comma “hotel,” were inserted by section 51 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

74The words “under the Part” were substituted for the words “under the Chapter” by section 14(d) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

75The word “personal” was repealed by section 52(a) of the Finance Act, 2024 (Act No. 5 of 2024) with effect from 1 July 2024.

76The word “personal” was repealed by section 52(b) of the Finance Act, 2024 (Act No. 5 of 2024) with effect from 1 July 2024.

77The words “orphanages, orphanages, religious places of worship and” and the commas were inserted before the word “Government” by section 52(c) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

78The words and commas “is less than, but in that case, the total tax and regular tax paid” and commas were substituted for the words and commas “is less than, but in that case the total tax and regular tax paid in excess of the remaining tax payable by the taxpayer” by section 53(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

79The number “182” was substituted for the number “181” by section 53(b) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

80Clause (a) repealed by section 54(a) of the Finance Act, 2024 (Act No. 5 of 2024) , with effect from 1st July , 2024.

81The words “, powdered milk, aluminum products, ceramic products” were inserted after the words “carbonated beverages” by section 54(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

82“Subject to the provisions of sub-section (6), a person shall be liable to pay the minimum tax as per the provisions of clauses (a) and (b) on his gross receipts, irrespective of profit or loss, namely:-” The words, figures, brackets and symbols “Subject to the provisions of sub-section (6), the minimum tax of a person, firm or company shall be as follows, namely:-” The words, brackets, figures and symbols were substituted by section 54 (c) (a) of the Finance Act, 2024 (Act No. 5 of 2024) with effect from the 1st day of July, 2024.

83Clause (a) substituted by section 54(c)(ii) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

84The words, brackets and figures “sub-section (4)” were substituted for the words, brackets and figures “sub-section (2)” by section 54(d) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

85The words, brackets and figures “sub-section (4)” were substituted for the words, brackets and figures “sub-section (2)” by section 54(d) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

86Sub-section (7) substituted by section 54(e) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

87The words “more or less” were substituted for the word “additional” by section 55(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024. 88The words “or less” were inserted after the word “more” by section 55(b) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1 July 2024. 89The words “or less” were inserted after the word “more” by section 55(b) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1 July 2024. 90The word “person” was inserted after the word “natural person” by section 56 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024. 91The word “person” was inserted after the word “natural person” by section 57(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

92The number, brackets and words “50 (fifty)” were substituted for the number, brackets and words “40 (forty)” by section 57(b) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

93The words “subject to the conditions of this sub-section” were repealed by section 57(c) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024. 94The word “person” was inserted after the word “natural person” by section 57(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024. 95The word “person” was inserted after the word “natural person” by section 57(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024. 96The word “person” was inserted after the word “natural person” by section 57(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024. 97The word “person” was inserted after the word “natural person” by section 57(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024. 98The word “person” was inserted after the word “natural person” by section 57(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024. 99The word “person” was inserted after the word “natural person” by section 58(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

100The word “natural person” was inserted before the word “person” by section 58(b) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

101The word “person” was inserted after the word “natural person” by section 59 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

102Section 170 substituted by section 60 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

103Section 171 substituted by section 61 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

104Section 174 substituted by section 62 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

105Section 175 substituted by section 63 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

106Sub-section (3) substituted by section 64 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

107The number, brackets and words “25 (twenty-five)” were substituted for the number, brackets and words “15 (fifteen)” by section 65(a)(i) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

108The number, brackets and words “25 (twenty-five)” were substituted for the number, brackets and words “15 (fifteen)” by section 65(a)(i) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

109“.” The colon “;” was substituted for the semicolon by section 65(a)(ii) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

110Sub-section (4) repealed by section 65(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

111The commas, figures and words “, 176 or 212” were substituted for the words and figures “or 176” by section 66 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

112“.” The colon “:” was substituted for the colon by section 67(a)(i) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

113The conditional portion was repealed by section 67(a)(ii) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

114The colon “:” at the end of the words “may” was substituted by section 67(b)(a) of the Finance Act, 2024 (Act No. 5 of 2024) with effect from 1st July, 2024.

115The conditional portion was repealed by section 67(b)(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

116Sub-section (5) repealed by section 67(c) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024. 117Sub-section (14) substituted by section 68(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024. 118Clause (e) substituted by section 68(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

119The footnote “Determination of tax by the Excise Commissioner” was substituted by “Determination of tax by the Excise Commissioner on the basis of return” by section 69(a) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1st July, 2024.

120Sub-section (1) substituted by section 69(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

121Sub-section (1) substituted by section 70 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

122Sub-clause (iv) substituted by section 71 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

123The number “166” was substituted for the number “167” by section 14(e) of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

124“;” Semicolon “.” Substituted for the hyphen by section 72 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

125Clauses 44 and 45 were inserted by section 72 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force from 1 July 2024.

126The figures, brackets and words “20 (twenty) thousand taka and not exceeding 50 (fifty) thousand” were substituted for the figures, brackets and words “5 (five) thousand taka and not exceeding 20 (twenty) thousand” by section 73 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

127The commas, figures and words “, 183 or 212” were substituted by the words and figures “or 183” by section 74 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

128The words “recognized tax liability” were substituted for the words and figures “tax as required by section 173” by section 75 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1 July 2024.

129Sub-section (4) substituted by section 76 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

130The words “recognized tax liability” were substituted for the words and figures “any tax under section 173” by section 77 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

131The words “tax payable under section 173” were substituted for the words and figures “tax payable under section 173” by section 78 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1st July, 2024.

132The words “tax payable under section 173” were substituted for the words and figures “tax payable under section 173” by section 79(a) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

133The words “tax payable under section 173” were substituted for the words and figures “tax payable under section 173” by section 79(b) of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1st July, 2024.

134The words “tax payable under section 173” were substituted for the words and figures “tax payable under section 173” by section 80 of the Finance Act, 2024 (Act No. 5 of 2024), which came into force on 1st July, 2024.

135Section 334 substituted by section 81 of the Finance Act, 2024 (Act No. 5 of 2024), with effect from 1 July 2024.

Saturday, April 26, 2025

Modern Women

Modern Women Think They’re Better Than Men—And Now They’re Armed for the Kill

Once upon a time, women pretended to submit. Played soft. Cooked stew with silence. Acted like they needed a man.

But that era is dead.

Now? They don’t just compete—they come for your throat.

Let’s stop acting confused.

Women have always resented men.

They just didn’t have the tools to show it.

Now they do—and the mask is off.

Let’s break it down:

—

1. Men Died at War—So They Never Got to See the Wives They Married

For centuries, men went to war and died young. They never lived long enough to find out their sweet “helpmate” was actually harboring silent contempt.

She wore the apron. But under it? A sword.

He died thinking he married peace.

Meanwhile, she lived long—and rewrote the story.

Now we know better.

—

2. The Less Power Women Had, The Sweeter They Pretended to Be

They had no votes. No jobs. No political leverage.

So they smiled.

They served.

They seduced.

But now that they’ve been handed equality?

It’s not gratitude you’re getting—it’s revenge.

They don’t want to partner with men—they want to outperform, outshine, and outlive you.

—

3. Birth Control Changed the Game—And Killed Monogamy

There was a time when sex meant consequences.

Now? She can sleep with the football team, and still post Bible quotes by Sunday morning.

Birth control removed the risk—and revealed the truth:

Women are not naturally loyal. They’re just risk-averse.

Take away the risk? And watch the body count grow.

—

4. The Dildo Replaced the Dependency

Before now, a woman needed a man for release.

Now? She needs a battery.

And that battery never cheats, never argues, and never forgets birthdays.

You? You’ve been demoted.

Not just from husband—but from human.

—

5. DNA Tests Crushed the “Sacred Mother” Myth

Let’s talk about it:

1 in 3 DNA tests come back negative.

Wrap your head around that.

That means a third of the time, men are raising kids that don’t belong to them—while being told “trust your queen.”

That’s not motherhood.

That’s fraud with lipstick on.

And in some countries, like France, it’s illegal to test at all.

Because the truth is too inconvenient.

—

6. Social Media Didn’t Make Women Worse—It Just Gave Them a Microphone

The girl who used to whisper slander to her friends now has a TikTok with 1 million views.

Now she teaches your daughter that marriage is oppression,

femininity is slavery,

and good men are clowns.

And if you respond?

You’re “insecure,” “abusive,” or worse—“not alpha enough.”

—

7. Divorce Is the Final Blow—and the Cleanest Escape Plan

80% of divorces? Filed by women.

Because the moment she’s “unhappy,” the state steps in with legal weapons.

She gets the kids. The house. Your peace.

You get therapy.

She didn’t marry for legacy. She married for leverage—and cashed out.

—

Final Word: They Don’t Want Men—They Want Superiors They Can Destroy

Modern women say they want love—but watch how they treat the men who give it.

They don’t want equals. They want thrones.

They don’t want peace. They want power.

They don’t want marriage. They want options.

So the next time a woman says, “Where have all the good men gone?”

Tell her:

They left when they realized this was never about partnership.

It was war.

And the enemy doesn’t wear armor anymore—she wears lashes, heels, and a degree in psychological warfare.

Let the truth-triggered come for blood.

The floor is yours.

#truthhurts

Friday, May 2, 2025

(Act No. 12 of 2023)

1 [ 2 [the Income-tax Ordinance, 1984to make a new law in accordance with the times and to make it more suitable for the times

Short title and introduction

Income Tax Authority Recruitment

Delegation of power

Subordination and control of income tax authorities

Duties, functions and jurisdiction of the Income Tax Authority

Exercise of authority by successor

Following the board's instructions

Instructions to the Excise Commissioner

Exercise of powers of the Inspector Additional Tax Commissioner in tax assessment proceedings

Establishment of Tax Appeal Tribunal

Exercise of Tribunal powers by the Bench

Exercise of power by a member

CHAPTER ONE

Basis of taxation

Additional taxation

Taxation on differences in imports, exports or investments

Penalty imposed on foreign assets not declared in returns

Taxation on retained earnings, reserves, surplus, etc.

Taxation on stock dividends

Self-motivated display of investment or income through special tax payments, etc.

Special provisions for tax calculation

CHAPTER TWO

Income coverage

Income deemed to accrue or arise in Bangladesh

The same income should not be included twice in the total income.

CHAPTER ONE

Total income

Income consolidation

CHAPTER TWO

Income from work

Determining the monetary value of perquisites, allowances and benefits

Table

25 [CHAPTER THREE

Rental income

Total rental price calculation

Allowable deductions in computing rental income

Calculation of income from special rent

CHAPTER FOUR

Income from agriculture

Special agricultural income

General deductions allowed in computing income from agriculture

Calculation of special deductions in

case of non- maintenance of books of account

In some cases, deductions will not be allowed.

CHAPTER FIVE

Income from business

Special areas of income from business

Calculating the profit of some businesses

Table

General deductions allowable in computing income from business.-

Special deductions allowable in computing income from business

Bad debt expense approval

Calculation of special

deductions for interest or profit

Special limits on interest approval

General conditions for approval of separation

In some cases, deductions may not be permissible.

Special Business Income Calculation

CHAPTER SIX

Capital gains

Capital Gains Calculation

Limitations on the authorization of deductions

Other factors in determining capital gains

CHAPTER SEVEN

Income from financial assets

Income calculation time

Allowable expenses in computing income from financial assets

In some cases, deductions may not be permissible.

CHAPTER EIGHT

Income from other sources

Special areas of income from other sources

Allowable deductions in computing income from other sources

Separation not allowed in some cases

CHAPTER 9

Loss adjustment and drawdown

Table

Depreciation allowance deduction

²⁵ [CHAPTER THREE