1. Agreement to avoid double taxation.- (1) The Government may enter into an agreement with the Government of any other country for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income leviable under this Ordinance and under the corresponding law in force in that country, and may, by notification in the official Gazette, make such provisions as may be necessary for implementing the agreement.

(2) Where any such agreement as is referred to in sub-section (1) is made with the Government of any country, the agreement and the provisions made for implementing it shall, notwithstanding anything contained in any other law for the time being in force, have effect in so far as they provide for-

  • relief from the tax payable under this Ordinance;
  • determining the income accruing or arising, or deemed to be accruing or arising, to non-residents from sources within Bangladesh;
  • where all the operations of business or profession are not carried on within Bangladesh, determining the income attributable to operations carried on within or outside Bangladesh, or the income chargeable to tax in Bangladesh in the hands of non-residents, including their agencies, branches or establishments in Bangladesh;
  • determining the income to be attributable to any person resident in Bangladesh having any special relationship with a non-resident;
  • recovery of tax leviable under this Ordinance and under the corresponding law in force in that country; or
  • exchange of information for the prevention of fiscal evasion or avoidance of tax on income chargeable under this Ordinance and under the corresponding law in force in that country.
  • Any agreement made in pursuance of sub-section (1) may include provisions for relief from tax for any period before the commencement of this Ordinance or before the making of the agreement and provisions as to income which are not themselves subject to double taxation.
  • The provisions of the Seventh Schedule shall have effect where an agreement under this section provides that the tax payable under the laws of the country concerned shall be allowed as a credit against the tax payable in Bangladesh.
  1. Relief in respect of income arising outside Bangladesh.- If any person who is resident in Bangladesh in any year proves to the satisfaction of the Deputy Commissioner of Taxes that, in respect of any income which has accrued or arisen to him during that year outside Bangladesh, he has paid tax, by deduction or otherwise, in any country with which there is no reciprocal agreement for relief or avoidance of double taxation, the Deputy Commissioner of Taxes may, subject to such rules as the Board may make in this behalf, deduct from the tax payable by him under this Ordinance a sum equal to the tax calculated on such doubly taxed income at the average rate of tax of Bangladesh or the average rate of tax of the said country, whichever is the lower.

Explanation.-The expression “average rate of tax” means the rate arrived at by dividing the amount of tax calculated on the total income by such income.


  1. Entitlement to refund.- (1) A person, who satisfies the Deputy Commissioner of Taxes or other authority appointed by the Government in this behalf that the amount of tax paid by him or on his behalf, or treated as paid by him or on his behalf, for any year exceeds the amount with which he is properly chargeable under this Ordinance for that year, shall be entitled to a refund of any such excess.
  • Where the income of the person is included under any provision of this Ordinance in the total income of any other person, such other person alone shall be entitled to a refund under this chapter in respect of such income.
  1. Claim of refund for deceased or disabled persons.- Where through death, incapacity, insolvency, liquidation or other cause, a person, is unable to claim or receive any refund due to him, his legal representative, or the trustee, guardian or receiver, as the case may be, shall be entitled to claim or receive such refund for the benefit of such person or his estate.
  2. correctness of assessment, etc., not to be questioned.- In any claim for refund under this chapter, it shall not be open to the claimant to question the correctness or validity of any assessment or other matter which has become final and conclusive or to ask for a review of the same, and the claimant shall not be entitled to any relief on any such issue raised except refund of the tax paid in excess.
  3. Refund on the basis of orders in appeal.- Where, as a result of any order passed in appeal or other proceeding under this Ordinance, refund of any amount becomes due to an assessee, the Deputy Commissioner of Taxes shall, 1[refund the amount, unless set off against tax or treated as payment of tax as per provisions of section 152,] to [1] [2][the assessee, [3][within sixty days] from the date on which the refund has become due] without his having to make any claim in that behalf.
  4. Form of claim and limitation.- (1) Every claim for refund [4] [5][under sections 146 and 147] shall be made in such form and verified in such manner as may be prescribed.


  1. Interest on delayed refund.- Where a refund due to an assessee is not paid within two months of the date of the [6][***] [7][claim for refund, or refund becoming due consequent upon any order passed in appeal or other proceeding under this Ordinance] interest at the rate of [8][seven and a half per cent] per annum shall be payable to the assessee on the amount of refund from the month following the said two months to the date of issue of the refund.

Adjustment of refund against tax.- Where, under the provisions of this Ordinance, the Income-tax Act,1922 (XI of 1922), the Gift-tax Act, 1963 (XIV of 1963), or the Wealth-tax Act,1963 (XV of 1963), any refund or repayment is found to be due to any person, the amount to be refunded or repaid or any part thereof may be set off against the tax, payable by that person under this Ordinance [9][or treated, at the option in writing of that person, as payment of tax payable under section 64 or section 74 thereof.]

[1] Subs. for “except as otherwise provided in this Ordinance, refund the amount” by F.A. 1995


Subs. for “the assessee” by F.A. 1992 re-subs. for “within thirty days” by F.A. 1996

Subs. for the words “within thirty days” by F.A. 1996

[4] Subs. for the words “under this chapter” by F.A. 1997

[5] Omitted by F. A. 2002

[6] Omitted by F. A. 1995

[7] Ins. by F.A. 1996

[8] Subs. for “ten per cent.” by F.A. 1995

[9] Ins by F.A. 1992