THE INCOME TAX ORDINANCE, 1984. ( PART 10 )

CHAPTER XV
IMPOSITION OF PENALTY

1[123. Penalty for not maintaining accounts in the prescribed manner-(l)

Where any person, not having income from house property, has, without reasonable cause, failed to comply with the provisions of any order or rule made in pursuance of, or for the purposes of section 35(2), the Deputy Commissioner of Taxes, may impose upon him a penalty at the rate of a sum not exceeding-

  • one and a half times the amount of tax payable by him;
  • one hundred Taka where the total income of such person does not exceed the maximum amount on which tax is not chargeable.

(2) Where any person, having income from house property, has, without reasonable cause, failed to comply with the provisions of any order or rule made in pursuance of, or for the purposes of section 35(2), the Deputy Commissioner of Taxes, shall impose upon him a penalty of fifty percent of taxes payable on house property income or five thousand taka, whichever is higher.]

2[124. Penalty for failure to file return, etc.- (1) Where any person has, without reasonable cause, failed to file a return of income required by or under sections 75, 77, 89(2),91(3) [1] [2] [3] [4][, 93(1) and or withholding tax required under section 75A], the Deputy Commissioner of Taxes may impose upon such person a penalty amounting to ten per cent of tax imposed on last assessed income subject to a minimum of 4[taka one thousand,] and in the case of a continuing default a further penalty of [5][taka fifty] for every day during which the default continues [6][:

Provided that such penalty shall not exceed-

  • in case of an assessee, being an individual, whose income was not assessed previously five thousand taka;
  • in case of an assessee, being an individual, whose income was assessed previously, fifty per cent (50%) of the tax payable on the last assessed income or taka one thousand, whichever is higher.]

(2) Where any person has, without reasonable cause, failed to file or furnish or, as the case may be, obtain and display within the time laid down therefor,- (a) any certificate, statement, accounts or information required by or under sections 58, 108, 109, [7][or] 110 ; or [8][***]

(b) the tax-payer’s identification number (TIN) certificate under section 184C;

the Deputy Commissioner of Taxes shall impose upon such person a penalty of taka five hundred and in the case of a continuing default a further penalty of taka two hundred and fifty for every month or fraction thereof during which the default continues 1[:

Provided that where any person has, without any reasonable cause, failed to furnish information as required under section 113, the 2[***] Director General, Central Intelligence Cell or the Deputy Commissioner of Taxes may impose a penalty of taka twenty five thousand and in case of a continuing default a further penalty of taka five hundred for each day.]

3[124A. Penalty for using fake Tax-payer’s Identification Number.- Where a person has, without reasonable cause, used Tax-payer’s Identification Number (TIN) of another person or used fake TIN on a return of income or any other documents where TIN is required under this Ordinance, the Deputy Commissioner of Taxes may impose a penalty not exceeding taka twenty thousand on that person.]

4[124AA. Penalty for failure to verify Taxpayer’s Identification Number.-

Where a person, responsible for verification of the authenticity of twelve­digit Taxpayer’s Identification Number (TIN) in accordance with the provision of sub-section (2) of section 184A of this Ordinance, has, without reasonable cause, failed to comply with such requirement under that provision, the Deputy commissioner of Taxes or any other income tax authority authorised by the Board for this purpose, as the case may be, may impose upon such person a penalty not exceeding taka fifty thousand.]

  1. Failure to pay advance tax, etc.- Where, in the course of any proceeding in connection with the assessment of tax under Chapter IX, the Deputy Commissioner of Taxes is satisfied that any person has-
  • without reasonable cause, failed to pay advance tax as required by section 64; or
  • furnished under section 67 any estimate of tax payable by him which he knew, or had reason to believe, to be untrue,

he may impose upon such person a penalty of a sum not exceeding the amount by which the tax actually paid by him falls short of the amount that should have been paid. [9] [10] [11] [12]

  1. Penalty for non-compliance with notice.- Where any person has, without reasonable cause, failed to comply with any notice issued under sections 79, 80 ‘[or under sub-section (1) or (2) of section 83] the Deputy Commissioner of Taxes may impose on him a penalty not exceeding the amount of tax chargeable on the total income of such person.
  2. Failure to pay tax on the basis of return.- Where, in the course of any proceeding under this Ordinance, the Deputy Commissioner of Taxes is satisfied that any person has not paid tax as required by section 74, 2[***] he may impose upon such person a penalty of a sum not exceeding twenty-five percent of the whole of the tax or as the case may be, of such portion of the tax as has not been paid.
  3. Penalty for concealment of income.- (1) Where, in the course of any proceeding under this Ordinance, the Deputy Commissioner of Taxes, the Appellate Joint Commissioner, 3[the Commissioner (Appeals)] or the Appellate Tribunal is satisfied that any person has, either in the said proceeding or in any earlier proceeding relating to an assessment in respect of the same income year,-
  • concealed particulars of his income or furnished inaccurate particulars of such income; or
  • understated the value of any immovable property in connection with its sale or transfer with a view to evading tax, 4[he or it shall impose upon such person a penalty of [13] [14] [15] [16] [17][fifteen percent] of tax which would have been avoided had the income as returned by such person or as the case may be, the value of the immovable property as stated by him been accepted as correct:
  • [Provided that if concealment referred to in clause (a) and (b) of this sub-section or sub-section (2) is detected after a period of more than one year from the year in which the concealment was first assessable to tax, the amount of penalty shall increase by an additional 2[fifteen per cent] for each preceding assessment year.]

3[(Proviso)***]

  • For the purpose of sub-section (1), concealment of particulars of income or furnishing of inaccurate particulars of income shall include-
  • the suppression of any item of receipt liable to tax in whole or in part, or
  • showing any expenditure not actually incurred or claiming any deduction therefor.

4[(2A)***]

5[(3)***]

6[(129.)***]

  • Ins by F.A. 1999 and subs. by F.O. 2008
  • for ten per cent by F.A. 2014

3

Proviso omitted by F.A 1995

4

Isn by F.A. 1998, omitted by F.A. 1999

  • by F.A. 1991, omitted by F.A. 1993
  • Omitted by F.A. 1998

X[129A. Penalty for incorrect or false audit report by chartered accountant.-

Where, in the course of any proceeding under this Ordinance, the Deputy Commissioner of Taxes, the Appellate Joint Commissioner, the Commissioner of Taxes (Appeals) or the Appellate Tribunal is satisfied beyond reasonable doubt that the audit report-

  • is not certified by a chartered accountant to the effect that the accounts are maintained according to the Bangladesh Accounting Standard (BAS) and reported in accordance with the Bangladesh Financial Reporting Standard (BFRS), or
  • is false or incorrect,

he shall impose upon such chartered accountant a penalty of a sum not

less than fifty thousand taka but not more than two lakh taka.]

2[129B. Penalty for furnishing fake audit report.- Where, in the course of any proceeding under this Ordinance, the Deputy Commissioner of Taxes, the Appellate Joint Commissioner, the Commissioner (Appeals) or the Appellate Tribunal is satisfied beyond reasonable doubt that any audit report furnished by an assessee along with the return of income or thereafter for any income year is not signed by a chartered accountant or is believed to be false, such authority or the Tribunal, as the case may be, shall impose upon such assessee a penalty of a sum of one lakh taka for that income year.]

  1. Bar to imposition of penalty without hearing.- No order imposing a penalty under this Chapter 3[or Chapter XIA] shall be made on any person unless such person has been heard or has been given a reasonable opportunity of being heard.
  2. Previous approval of Inspecting Joint Commissioner for imposing penalty.- The Deputy Commissioner of Taxes shall not impose any penalty under this Chapter without the previous approval of the Inspecting Joint Commissioner except in the cases referred to in section 124 4[.

(Proviso)***] [18] [19] [20] [21]

1[(131A.)***]

  1. Orders of Appellate Joint Commissioner, etc., to be sent to Deputy Commissioner of Taxes.- The Appellate Joint Commissioner, 2[or the Commissioners (Appeals)] or the Appellate Tribunal 3[or any other income tax authority making an order imposing any penalty under this Chapter or Chapter XIA] shall forthwith send a copy of the order to the Deputy Commissioner of Taxes, and thereupon all the provisions of this Ordinance relating to the recovery of penalty shall apply as if such order were made by the Deputy Commissioner of Taxes.
  2. Penalty to be without prejudice to other liability.- The imposition on any person of any penalty under this Chapter shall be without prejudice to any other liability which such person may incur, or may have incurred, under this Ordinance or under any other law for the time being in force. [22] [23] [24]

CHAPTER XVI
RECOVERY OF TAX

  1. Tax to include penalty, interest, etc.- For the purposes of this Chapter, “tax” includes any sum imposed, levied or otherwise payable under this Ordinance as penalty, fine, interest, fee or otherwise; and the provisions of this chapter shall accordingly apply to the recovery of any such sum.
  2. Notice of demand.- (1) Where any tax is payable in consequence of any assessment made or any order passed under or in pursuance of this Ordinance, the Deputy Commissioner of Taxes shall serve upon the assessee (which expression includes any other person liable to pay such tax) a notice of demand in the prescribed form specifying therein the sum payable and the time within which, and the manner in which, it is payable, together with a copy of an assessment order.

1[(1A) Where any amount of tax is refundable in consequence of any order, 2[***]the Deputy Commissioner of Taxes shall specify in the notice referred to in sub-section (1) the sum refundable to the assessee together with a copy of an assessment order and a refund voucher unless such refund is set off against tax as per provision of section 152.]

3[(1B) The Deputy Commissioner of Taxes shall not set off without giving the assessee an opportunity of being heard and in that case refund voucher for the amount due for refund, if any, shall be issued within a period not exceeding thirty days from the date of assessment.

(1C) Where the Deputy Commissioner of Taxes fails to issue refund voucher for any refund due to an assessee within the time specified in this section, such failure on the part of the Deputy Commissioner of Taxes shall be construed as misconduct.]

  • Where the assessee upon whom a notice of demand has been issued under sub section (1) makes an application in this behalf before the expiry of the date of payment specified in the notice, the Deputy Commissioner of Taxes may extend the time for payment or allow payment by installments subject to such conditions, including payment of interest on the amount payable, as he may think fit in the circumstances of the case. [25] [26] [27]
  • If the sum payable is not paid within the time specified in the notice of demand issued under sub-section (1) or, as the case may be, within the time as extended under sub-section (2), the assessee shall be deemed to be in default:

Provided that where the assessee has presented an appeal under this Ordinance in respect of the assessment of imposition of the tax or of the amount thereof, [28] [29][ the Deputy Commissioner of Taxes shall] treat the assessee as not being in default for so long as such appeal is not disposed of.

  • If, in a case where payment by installment has been allowed under sub­section (2), the assessee commits default in paying any one of the installments within the time fixed therefor, the assessee shall be deemed to be in default as to the whole of the amount then outstanding, and the other installment or installments shall be deemed to have been due on the same date as the installment in respect of which default has actually been committed was due for payment.
  • Where an assessee has been assessed in respect of income arising outside Bangladesh in a country the laws of which prohibit or restrict the remittance of money to Bangladesh, the Deputy Commissioner of Taxes shall not treat the assessee as in default in respect of that part of the tax which is due in respect of such amount of income as cannot, by reason of the prohibition or restriction, be brought into Bangladesh, and shall continue to treat the assessee as not in default in respect of such part of the tax until the prohibition or restriction is removed.

Explanation.-For the purposes of this section, income shall be deemed to have been brought into Bangladesh if it has been or could have been utilized for the purposes of any expenditure actually incurred by the assessee outside Bangladesh or if the income, whether capitalized or not, has been brought into Bangladesh in any form.

2[(136)***]

  1. Penalty for default in payment of tax.- (1) Where an assessee is in default or is deemed to be in default in making payment of tax, the Deputy Commissioner of Taxes may direct that, in addition to the amount of tax in arrears, a sum not exceeding that amount shall be recovered from the assessee by way of penalty.
  • Where, as a result of any final order, the amount of tax, with respect to the default in the payment of which the penalty was levied, has been wholly reduced, the penalty levied shall be cancelled and the amount of penalty paid shall be refunded.
  1. Certificate for recovery of tax.- (1) When an assessee is in default or is deemed to be in default in making payment of tax, the Deputy Commissioner of Taxes may forward to the Tax Recovery Officer a certificate for recovery of the tax, under his signature specifying the amount of arrears due from the assessee; and such certificate may be issued notwithstanding that proceedings for recovery of the arrears by any other mode have been taken.

(2) A certificate under sub-section (1) may be forwarded to-

  • the Tax Recovery Officer within whose jurisdiction the assessee carried on his business or profession or the principal place of business or profession of the assessee is situate; or
  • the Tax Recovery Officer within whose jurisdiction the assessee resides or any movable or immovable property of the assessee is situate; or
  • the Tax Recovery Officer who has jurisdiction in relation to the assessee whose income is assessable by the Deputy Commissioner of Taxes forwarding the certificate.
  1. Method of recovery by Tax Recovery Officer.- (1) Upon receipt of a certificate forwarded to him under section 138, the Tax Recovery Officer shall, notwithstanding anything contained in any other law for the time being in force, proceed, in accordance with the rules made in this behalf by the Board, to recover from the assessee the amount specified in the certificate by one or more of the following modes, namely :-
  • attachment and sale, or sale without attachment, of any movable or immovable property of the assessee;
  • arrest of the assessee and his detention in prison;
  • appointment of a receiver for the management of the movable and immovable properties of the assessee.

‘[(2) While recovering under sub-section (1) the amount specified in the certificate forwarded to him, the Tax Recovery Officer may also recover in the same manner from the assessee in default, in addition to such amount, any cost and charges, including expenses on the service of any notice or warrant, incurred in the proceedings for the recovery of the tax in arrears.]

  • If the Tax Recovery Officer to whom a certificate is forwarded under section 138 is not able to recover the entire amount by the sale of movable and immovable properties of the assessee within his jurisdiction, but has information that the assessee has property within the jurisdiction of another Tax Recovery Officer, he may send the certificate to such other Tax Recovery Officer or to the Tax Recovery Officer within whose jurisdiction the assessee resides; and the Tax Recovery Officer to whom the certificate has been so sent shall proceed to recover under this Chapter the amount remaining unrecovered as if the certificate was forwarded to him by the Deputy Commissioner of Taxes.
  1. Power of withdrawal of certificate and stay of proceeding.- (1)

Notwithstanding the issue of a certificate for recovery under section 138, the Deputy Commissioner of Taxes shall have power to withdraw, or correct any clerical or arithmetical error in the certificate by sending an intimation to that effect to the Tax Recovery Officer.

  • Where the order giving rise to a demand of tax for which a certificate for recovery has been issued has been modified in appeal or other proceedings under this Ordinance and, as a consequence thereof, the demand is reduced but the order is the subject matter of further proceedings under this Ordinance, the Deputy Commissioner of Taxes shall stay the recovery of such part of the amount of the certificate as pertains to the said reduction for the period for which the appeal or other proceedings remain pending.
  • Where a certificate for recovery has been issued and subsequently the amount of outstanding demand is reduced as a result of appeal or other proceedings under this Ordinance, the Deputy Commissioner of Taxes shall, when the order, which was the subject-matter of such appeal or other proceeding, has become final and conclusive, amend the certificate or withdraw it, as the case may be.
  • The Deputy Commissioner of Taxes shall communicate to the Tax Recovery Officer any orders of cancellation, correction, stay of proceeding, withdrawal or amendment, as the case may be, of a certificate for recovery.
  1. Validity of certificate for recovery not open to dispute.- When the Deputy Commissioner of Taxes forwards a certificate for recovery under section 138 to a Tax Recovery Officer, it shall not be open to the assessee to dispute before the Tax Recovery Officer the correctness of the assessment ; and the Tax Recovery Officer shall not entertain any objection to the certificate on any ground whatsoever.
  2. Recovery of Tax through Collector of District.- (1) The Deputy Commissioner of Taxes may forward to the Collector of District in which the office of the Deputy Commissioner of Taxes is situate or the district in which the assessee resides or owns property or carries on business or profession, a certificate under his signature specifying the amount of arrears due from an assessee, and the Collector, on receipts of such certificate, shall proceed to recover, from such assessee the amount specified therein as if it were an arrear of land revenue.
  • Without prejudice to any other powers which the Collector of District may have in this behalf, he shall, for the purposes of recovery of the amount specified in the certificate for recovery forwarded to him under sub-section
  • , have the powers which a Civil Court has under the Code of Civil Procedure, 1908 (Act V of 1908), for the purposes of recovery of an amount due under a decree.
  • The Deputy Commissioner of Taxes may, at any time, recall from the Collector of District a certificate forwarded to him under sub-section (1) and upon such recall, all proceeding commenced in pursuance of the certificate shall abate:

Provided that the recall of a certificate shall not affect any recoveries made by the Collector before the recall as if the certificate had not, to the extent of such recovery, been recalled; nor shall the recall of a certificate issued at any time prevent the recovery, by issue of a fresh certificate, of any amount which was recoverable at the time the certificate so recalled was issued.

‘[142A. Recovery of tax through Special Magistrates.- (1) Without prejudice to the provisions of section 142, the Deputy Commissioner of Taxes may forward to a Magistrate of the First Class, specially empowered in this behalf by the Government, hereinafter referred to as “the Special Magistrate, [30] [31][***] a certificate under his signature specifying the amount of arrears due from the assessee, and the Special Magistrate shall, on receipt of such certificate, proceed to recover from the assessee the amount specified therein as if it were an arrear of land revenue and the Special Magistrate were a Collector of District.

  • Without prejudice to any other powers of a Collector of District which the Special Magistrate may have in this behalf, he shall, for the purposes of recovery of the amount specified in the certificate for recovery forwarded to him under sub-section (1), have the powers which a Civil Court has under the Code of Civil Procedure, 1908 (Act V of 1908), for the purposes of recovery of an amount due under a decree.
  • The Deputy Commissioner of Taxes may, at any time, recall from the Special Magistrate a certificate forwarded to him under sub-section (1) and upon such recall, all proceedings commenced in pursuance of the certificate shall abate:

Provided that the recall of a certificate shall not affect any recoveries made by the Special Magistrate before the recall as if the certificate had not, to the extent of such recovery, been recalled; nor shall the recall of a certificate issued at any time prevent the recovery, by issue of a fresh certificate of any amount which was recoverable at the time the certificate so recalled was issued.]

  1. Other modes of recovery.- (1) Notwithstanding the issue of a certificate for recovery of tax under section 138 or section 142, the Deputy Commissioner of Taxes may also recover the tax in the manner provided [32] [33][in sub-section (1A) or (2).]

2[(1A) For the purpose of recovery of tax payable by an assessee which is not disputed in appeal to any appellate forum, the Deputy Commissioner of Taxes may, with the previous approval of the Commissioner, after giving the assessee an opportunity of being heard, stop movement of any goods and services from the business premises of such assessee and also shutdown such business premises till the recovery of the tax referred to above or any satisfactory arrangement has been made for the recovery of such tax.]

(2) For the purposes of recovery of any tax payable by an assessee, the Deputy Commissioner of Taxes may, by notice in writing, require any person-

  • from whom [34][any money or goods] is due or may become due to the assessee, or who holds, or controls the receipt or disposal of, or may subsequently hold, or control the receipt or disposal of, [35][any money or goods] belonging to, or on account of, the assessee, to pay to the Deputy Commissioner of Taxes the sum specified in the notice on or before the date specified therein for such payment; or
  • who is responsible for payment of any sum to the assessee classifiable as income of the assessee under the head “Salaries”, to deduct from any payment subsequent to the date of the notice, any arrear of tax due from the assessee, and to pay the sum so deducted to the credit of the Government.
  • A person who has paid any sum as required by sub-section (2) (a) shall be deemed to have paid such sum under the authority of the assessee and the receipt by the Deputy Commissioner of Taxes shall constitute a good and sufficient discharge of the liability of such person to the assessee to the extent of the sum specified in the receipt.
  • A person who has deducted any sum as required by sub-section (2) (b) shall be deemed to have deducted the tax under section 50 and the relevant provisions of Chapter VII shall apply accordingly.
  • If the person to whom a notice under sub-section (2) is sent fails to make payment or to make deductions in pursuance of the notice, he shall be deemed to be an assessee in default in respect of the amount specified in the notice and proceedings may be taken against him for realisation of the amount as if it were an arrear of tax due from him; and the provisions of this Chapter shall apply accordingly.
  • The Deputy Commissioner of Taxes may at any time amend or revoke any notice issued under sub-section (2) or extend the time for making any payment in pursuance of such notice.
  • In any area with respect to which the Commissioner has directed that any arrears may be recovered by any process enforceable for the recovery of an arrear of any municipa1 tax or local rate imposed under any enactment for the time being in force in any part of Bangladesh, the Deputy Commissioner of Taxes may proceed to recover the amount due by such process.
  • The Commissioner may direct by what authority any powers or duties incident under any such enactment as aforesaid to the enforcement of any process for the recovery of a municipal tax or local rate shall be exercised or performed when that process is employed under sub-section (7).

Explanation.- For the removal of doubts it is hereby clarified that the several modes of recovery specified in this Chapter are neither mutually exclusive nor affect in any way any other law for the time being in force relating to the recovery of debts due to Government, and it shall be lawful for the Deputy Commissioner of Taxes, if for any special reasons to be recorded by him, to have recourse to any such mode of recovery notwithstanding that the tax due is being recovered from an assessee by any other mode.

[1] Subs. by F.A. 2014

Subs. by F.A 1999 and re-subs by F. A. 2004

[3] Subs. F.A. 2011

[4]

Subs. for “taka two thousand five hundred” by F.O. 2007

[5] Subs. for “taka two hundred and fifty” by F.O 2007

[6] Subs. “colon” for “full stop” and ins. new proviso by F.A. 2015

[7]Subs for “,” by F.O 2007

[8] Omitted by F.A. 2007

[9] Subs. “colon” for “full-stop” and ins new proviso by F.O. 2007

[10] Omitted “Deputy” by F.A. 2013

[11] Ins. new section 124A by F.A. 2010

[12] Ins. new section 124AA by F.A. 2015

[13] Subs. for “or 83” by F.A. 1991

[14] Omitted by F.A. 2015

[15] Ins by F.A. 1991

[16] Subs. for “he or it may impose upon such person a penalty of a sum not exceeding two and a half times the amount” by F.O. 2008

[17] Subs. for ten percent by F.A. 2014

[18] Ins.new section by FA. 2014

[19]

Ins.new section 129B by FA. 2015

[20]

  • by FA. 2015

[21] Subs. full-stop for semi- colon and proviso by F.A. 1998 subsequently omitted by F.A 1999

[22]          Ins. by F.A. 1991 and omitted by F.A. 1996

[23] Ins by F.A. 1990

[24] Subs. by F.A. 2015

[25] Ins by F.A. 2000

[26] Deleted F.O. 2008

[27] Ins by F.A 2002

[28] Subs. for “the Deputy Commissioner of taxes may, in his discretion,” by F.A. 1995

[29]

[30]             Ins by F.A. 1993

[31]

[32]             Subs for “in sub-section (2)” by F.A. 1999

[33]             Ins by F.A. 1999

[34]

Subs for ” any money ” by F.A 1999

[35]

Subs for ” any money ” by F.A 1999

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