THE FIRST SCHEDULE
1 [PART C
APPROVED GRATUITY FUND
[See section 2(5A)]
- – In this Part, unless the context otherwise requires, the expression “contribution”, “employee”, “employer”, “regulations of a fund” and “salary” have, in relation to gratuity funds, the meaning assigned to those expressions in paragraph 1 of Part B in relation to provident funds.
- Approval of gratuity funds.- 2[(1) The Board shall, within 3[four months] from the date of receipt of the application by it for according approval to any gratuity fund, accord such approval, failing which the gratuity fund shall be deemed to have been accorded approval, and the Board may, if, in its opinion, the gratuity fund contravenes any of the conditions specified in paragraph 3 and the rules made by the Board in that behalf, withdraw such recognition at any time.]
- An order according or withdrawing approval shall take effect from such date as the Board may communicate in writing to trustees of the fund.
- The Board shall neither refuse nor withdraw approval to any gratuity fund unless it has given the trustees of that fund a reasonable opportunity of being heard.
- Conditions for approval.- In order that a gratuity fund may receive and retain approval, it shall satisfy the conditions hereinafter specified and any other conditions which the Board may prescribe-
- the fund shall be a fund established under an irrevocable trust in connection with trade or undertaking carried on in Bangladesh and not less than ninety per cent. of the employees of such trade or undertaking shall be employed in Bangladesh; [1]
- the fund shall have for its sole purpose the provision of a gratuity to employees in the trade or undertaking on their retirement or after a specified age or on their becoming incapacitated prior to such retirement, or on termination of their employment after a minimum period of service specified in the regulations of the fund or to the widows, children or dependents of such employees on their death;
- the employer in the trade or undertaking shall be a contributor to the fund; and
- all benefits granted by the fund shall be payable only in Bangladesh.
- Application for approval.- (1) An application for approval of gratuity fund shall be made in writing by the trustees of the fund to the 1[Board] and shall be accompanied by a copy of the instrument under which the fund is established and by two copies of the rules and, where the fund has been in existence during any year or years prior to the financial year in which the application for approval is made, also two copies of the accounts of the fund relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up. The Board may require such further information to be supplied as it thinks proper.
(2) If any alteration in the regulations, constitution, objects or conditions of the fund is made at any time after the date of the application for approval, the trustees of the fund shall forthwith communicate such alteration to the Deputy Commissioner of Taxes mentioned in sub-paragraph (1), and in default of such communication, any approval given shall, unless the Board otherwise orders, be deemed to have been withdrawn from the date on which the alteration took effect.
- Exemption of income of gratuity fund from tax.- Income derived from investments or deposits of an approved gratuity fund and any capital gains arising from the transfer of capital assets of such fund shall be exempt from payment of tax. [2]
- Treatment of contribution by employer.- Any sum paid by an employer as contribution towards an approved gratuity fund shall be deducted in computing his income, profits and gains for the purposes of assessment.
- Contributions by employer, when deemed to be his income.- Where any
contributions by an employer (including the interest thereon, if any) are repaid to the employer, the amount so repaid shall be deemed for the purposes of tax to be the income of the employer for the income year in which they are so repaid.
- Particulars to be furnished in respect of gratuity funds.- The trustees of an approved gratuity fund and any employer who contributes to an approved gratuity fund shall, when required by notice from the Deputy Commissioner of taxes, furnish, within such period as may be specified in the notice, such return, statement, particulars or information as the Deputy Commissioner of Taxes may require.
- Provisions of this Part to prevail against regulations of the fund.- Where
there is a repugnance between any regulation of an approved gratuity fund and any provision of this Part or of the rules made there under , the said regulation shall, to the extent of repugnance, be of no effect, and the Board may, at any time, require that such repugnance shall be removed from the regulations of the fund.
- Provisions relating to rules.- In addition to any power conferred in this Part, the Board may make rules-
- prescribing the statements and other information to be submitted along with an application for approval;
- limiting the ordinary, annual, and other contributions of an employer to the fund;
I.T. Manual, Part-1 [ 1st Schedule, Part C
- regulating the investment or deposit of the money of an approved gratuity fund;
- providing for withdrawal of the approval in the case of a fund which ceases to satisfy the requirements of this Part, or the rules made thereunder; and
- generally, to carry out the purposes of this Part and to secure such further control over the approval of gratuity funds and the administration of gratuity funds, as it may deem requisite.]
THE SECOND SCHEDULE
RATES OF INCOME TAX IN CERTAIN SPECIAL CASES
[See section 16(3)]
- Where a person, not being a company, is a non-resident in Bangladesh, ‘[except a Bangladeshi non-resident] tax shall be payable by him or on his behalf, on his total income, at the maximum rate.
2[2. Where the total income of an assessee includes any income chargeable under the head “Capital gains” (hereinafter referred to as the “said income”), the tax payable by him on his total income shall be-
- in the case of a company-
- tax payable on the total income as reduced by the said income had such reduced income been the total income; plus
- tax at the rate of fifteen per cent on the whole amount of the said income;
- in the case of a person other than a company-
- where the said income arises as a result of disposal by the assessee of his capital assets after not more than five years from the date of their acquisition by him, tax payable on the total income including the said income; and
- where the said income arises as a result of disposal by the assessee of his capital assets after five years from the date of their acquisition by him, tax payable on the capital gains at the rate applicable to his total income including the said capital gains, or tax at the rate of fifteen per cent on the amount of the capital gains whichever is the lower.]
3[3. Where the total income of an assessee includes any income from “winnings” referred to in section 19(13) chargeable under the head “Income from other sources” (hereinafter referred to as the “said income”), the tax payable by him on the said income shall be at the rate applicable to his total income including the said income or at the rate of twenty per cent., whichever is the lower.]
- by F.A. 1997
- by F.A. 2002
- by F.A. 1994
THE THIRD SCHEDULE
COMPUTATION OF DEPRECIATION ALLOWANCE X[AND
AMORTIZATION]
[See section 27 and 29]
- Depreciation allowance on assets used for agricultural purposes.- For the purpose of section 27(1)(f), depreciation allowance at the rates specified in the Table below shall be made in respect of depreciation of any irrigation or protective work or other capital assets:
2[TABLE
Serial Classification of irrigation Rate/percentage of the Remarks.
1 Ins. by F.A. 2013 2TABLE Subs. by F.A. 1987 |
| Serial Classification of
No. irrigation or protective work or other capital assets. |
Rate/percentage of the Remarks.
written down value, except as otherwise indicated. |
|
| 1 | 2 | 3 4 |
| 15 | Weighing machine | 10 |
| 16 | Tractors and oil engines and thin implements. | 15 |
| 17 | Power pumping machinery | 20 |
| 18 | Factory made cart of iron material with rubber tyre | 15 |
| 19 | Country Cart | 20 |
| 20 | Steam engine | 10 |
| 21 | Workshop tools | 15 |
| 22 | General (machinery, implements, plants and other assets) not provided for above specially. | 10 |
- Allowance for depreciation.- (1) In computing profits and gains from business or profession, an allowance for depreciation shall be made in the manner hereinafter provided in respect of any building, machinery, plant or furniture owned by an assessee [3][or bridge or road or fly over of a physical infrastructure undertaking] and used for the purposes of business or profession carried on by him.
- Where any such building, machinery, plant or furniture [4][or bridge or road or fly over of a physical infrastructure undertaking] is not wholly used for the purposes of the business or profession, the allowance under sub-paragraph (1) shall be restricted to the fair proportional part of the amount which would be admissible if such building, machinery, plant or furniture were wholly so used.
- No allowance under this paragraph shall be made unless-
- at the time of filing a return of total income such particulars as may be prescribed and such further information or documents as the Deputy Commissioner of Taxes may require, are furnished ; and
- such building, machinery, plant or furniture [5][or bridge or road or fly over of a physical infrastructure undertaking] has been so used during income year.
1 3[(1) Buildings (general) ———- 10 (2) Factory buildings ————– 20 2 Furniture and fittings ————— 10 4[2A Office equipment 3 Machinery and plant :
(1) General rate —————–
(2) Special rates– (a) Ships :
10] 20]
(i) Ocean-going ships (new) — 12 (ii) Ocean-going ships (second The allowance is to hand), age at the time of be calculated on the purchase– original cost. 1 Ins. by F.A. 2010 2 Subs. by m.Ati.I bS 2&0-AtBb/9& ZtULg 8/5/1805 WtS/29/8/98 Bs Subs. by Gm. Ati. I bs l8o-AtWKi/2oo2, ztfiLs 03/7/2002
Normal depreciation allowance.- (1) The allowance for normal depreciation under paragraph 2 shall be computed at the rates specified in the table below :
| 4Ins. by F.A. 2014 |
I.T. Manual, Part-1 Sl. Class of
No Assets
1
- less than 10 years —
- 10 years or more —
- Inland ships including steamers, motor vessels, sails, tug-boats iron or steel flats for cargo, wooden cargo-boats, motor launches and speed boats
- (i) Batteries, X-Ray and
electrotherapeutic apparatus and accessories thereto
- Machinery used in the production and exhibition of cinema-tographic films.
- motor vehicles all sorts not plying for hire.
- motor vehicles all sorts plying for hire.
1[(v) computer and computer equipments.
2 [(vi) Bangladeshi made computer software 3[(vii) imported computer software
- (i) professional and reference books.
- Aircraft, aeroengines and aerial photographic apparatus.
- Moulds used in the manufacture of
glass or plastic goods or concrete pipe.
- Mineral oil concerns-
- Below ground installations.
- Above ground installations, that is to say, portable boilers, drilling tools, well-head tanks and rigs. 1
[ 3rd Schedule
Rate/percentage of the Remarks
written down value, except
as otherwise indicated.
2 3
12
24
24
20 20 20
24
30]
50]
10]
30
30
30 100
30
1[(e) physical infrastructure
- Bridge
- Road
- Fly over
- Pavement runway, taxiway
- Apron, termac
- Boarding bridge
- Communication,
Navigation aid and other equipments
- The Board may, from time to time, by notification in the official Gazette, make any amendment in the Table referred to in sub-paragraph (1)
- Notwithstanding anything contained in sub-paragraph (1), 2[***] in the case of any assessee or any class of assessees, or any asset or class of assets, the Board may, by notification in the official Gazette, direct that depreciation allowance shall be a allowance at such rate or rates and in such manner as may be specified.
3[(4) No allowance under this paragraph shall be made for a leasing company on such machinery, plant, vehicle or furniture given to any leasee on financial lease.]
4[(4 )***]
- Depreciation not to be allowed in cases where the cost of renewal or replacement is allowed.- Notwithstanding anything contained in this Ordinance, no allowance under paragraph 2 5[***]shall be made in the case of any asset falling under the description “Machinery and Plant” the normal useful life of which does not exceed one year, but the cost of renewal or replacement thereof shall be allowed as a revenue expenditure.
*[5A. Initial depreciation allowance.- (1) Where any building has been newly constructed or any machinery or plant has been installed in Bangladesh after the thirtieth day of June, 2002, an amount by way of initial depreciation allowance in respect of the year of construction or installation or the year in which such building, machinery or plant is used by the assessee for the first time for the purpose of his business or profession or the year in which commercial production is commenced, whichever is the later, shall be allowed at the following rates, namely:-
- in the case of building – ten per cent of the cost thereof
to the assessee;
- in the case of machinery or plant other – twenty-five per cent of the
than ships or motor vehicles not plying cost thereof to the assessee;
for hire
- Nothing contained in sub-paragraph (1) shall apply in the case of-
- any motor vehicle not plying for hire, and
- any machinery or plant which has previously been used in
Bangladesh.
- The provisions of paragraph 2 and 3 shall, so far as may be, apply to this paragraph as they apply to the said paragraph.]
2[(6.)***]
- Accelerated depreciation allowance on machinery and plant.- [(1) In the case of any machinery or plant (other than office appliances and road transport vehicles) which, not having been previously used in Bangladesh, has been or is used in an industrial undertaking set up in Bangladesh between the first day of July, 1977 and the thirtieth day of June, 4[2012] (both days inclusive), an amount by way of accelerated depreciation allowance shall, subject to the conditions set out in subparagraph (2), be allowed and computed as follows, namely :- [6] [7] [8] [9]
- for the first year in which the fifty per cent of the actual cost of plant and
undertaking starts commercial machinery to the assessee
production
- for the next following second year -thirty per cent of the actual cost of plant and machinery to the assessee
- for the next following third year — twenty per cent of the actual cost of plant and machinery to the assessee.
- The industrial undertaking referred to in sub-paragraph (1) shall fulfil the following conditions, namely: –
- that the industrial undertaking is owned and managed by a Bangladeshi company, or a body corporate formed in pursuance of an Act of Parliament, having its registered office in Bangladesh;
- that it belongs to such class of industries as the Board may, by notification in the official Gazette, specify in this behalf;
- that the particulars required for the purpose of entitlement to, or claiming accelerated depreciation allowance under this paragraph have been furnished; and
- that the application in the prescribed form for accelerated depreciation allowance under this paragraph, as verified in the prescribed manner, is made to the Board within 1[six months] from the end of the month of commencement of commercial production; and the application is accompanied by a declaration in writing that the undertaking has not been approved for, and that no application in respect of the undertaking has been made or shall be made to the Board for approval of, exemption from payment of tax 2[under section 45 or 46A or 46B] of this Ordinance for any period.
- The machinery or plant on which accelerated depreciation has been allowed under this paragraph shall not be entitled to any other depreciation allowance under this Ordinance or the Income-tax Act,1922 (XI of 1922). [10] [11]
*[7A. Accelerated depreciation allowance on machinery and plant.- (1) In the
case of machinery or plant (other than office appliances and road transport vehicles) which not having been previously used in Bangladesh, has been or is used-
- in the expansion unit set-up between the first day of July, 1995 and the thirtieth day of June, 2[2005] (both days inclusive) in any existing undertaking enjoying exemption from tax under section 46A; or
- between the first day of July, 1995 and the thirtieth day of June, 3[2005] (both days inclusive) in the treatment and disposal of toxic and environmentally hazardous wastes or in the collection or processing of bio-degradable wastes or in the research and development in any industrial undertaking owned and managed by a company as defined in clause (20) of section 2, an amount by way of accelerated depreciation allowance shall, subject to the conditions set out in sub-paragraph (2), be allowed and computed as follows, namely:-
- for the first year in which the expansion .. 80 per cent. of the actual cost unit starts commercial production or of the machinery or plant to
operation or, as the case may be, the the assessee;
undertaking starts operation,
(ii ) for the next following year … 20 per cent. of the actual cost
of the machinery or plant to the assessee.
Explanation.- For the purposes of this paragraph, “expansion unit” means the expansion of an existing undertaking if such expansion constitutes-
- an identifiable unit for production or operation of similar or other goods or class of goods or services;
- a similar unit carrying on an identifiable industrial process, but does not include an undertaking which is formed by splitting up or reconstruction of an existing business or by transfer of machinery or plant of an existing business in Bangladesh to a new business. [12] [13] [14]
- The undertaking referred to in clause (a) or (b) of sub-paragraph (1) shall fulfill the following conditions, namely:-
- that the application in the prescribed form for accelerated depreciation allowance under this paragraph, as verified in the prescribed manner, is submitted to the Board within six months from the end of the month of commencement of commercial production or operation; and
- that the particulars required for the purpose of entitlement to, or claiming accelerated depreciation allowance under this paragraph have been furnished.
- The Board shall give its decision on an application under sub-paragraph (2) (a)within three months from the date of receipt of the application by the Board, failing which accelerated depreciation shall be deemed to have been allowed by the Board for the purposes of this paragraph.
- The machinery or plant on which accelerated depreciation is allowed under this paragraph shall not be entitled to any other depreciation allowance under this Ordinance.
- The Board may, on an application by any person aggrieved by any decision or order passed under sub-paragraph (3), if the application is made within four months of the receipt of such decision or order, review the previous decision or order and pass such order in relation thereto as it thinks fit.
1[7B. Accelerated depreciation allowance on machinery and plant.- (1) In the
case of any machinery or plant (other than office appliances and road transport vehicles) which, not having been previously used in Bangladesh, has been or is used in an industrial undertaking as referred to in section 46B of the Ordinance and set up in Bangladesh between the first day of July, 2014 and the thirtieth day of June, 2019 (both days inclusive), an amount by way of accelerated depreciation allowance shall, subject to the conditions set out in sub-paragraph (2), be allowed and computed as follows, namely :-
| (a) for the first year in which the undertaking starts commercial production | fifty per cent of the actual cost of plant and machinery to the assessee |
| (b) for the second year — | thirty per cent of the actual cost of plant and machinery to the assessee |
| (c) for the third year — | twenty per cent of the actual cost of plant and machinery to the assessee. |
| 1 Ins. by F.A. 2014 |
- The industrial undertaking referred to in sub-paragraph (1) shall fulfil the following conditions, namely: –
- that the industrial undertaking is owned and managed by a Bangladeshi company, or a body corporate formed in pursuance of an Act of Parliament, having its registered office in Bangladesh;
- that it belongs to the industrial undertaking as specified in subsection (2) of section 46B;
- that the particulars required for the purpose of entitlement to, or claiming accelerated depreciation allowance under this paragraph have been furnished; and
- that the application in the prescribed form for accelerated depreciation
allowance under this paragraph, as verified in the prescribed manner, is made to the Board within six months from the end of the month of commencement of commercial production; and the application is accompanied by a declaration in writing that the undertaking has not been approved for, and that no application in respect of the undertaking has been made or shall be made to the Board for approval of, exemption from payment of tax under section 46B or 46C of this Ordinance for any period.
- The machinery or plant on which accelerated depreciation has been allowed under this paragraph shall not be entitled to any other depreciation allowance under this Ordinance.]
- Special depreciation allowance on ships.- (1) in the case of-
- a ship, being a passenger vessel, plying ordinarily on inland waters, or a fishing trawler registered in Bangladesh, which has been or is brought into use in Bangladesh, for the first time on any day between the 1st day of July, 1982 and the thirtieth day of June, 1995 (both days inclusive), and is the property of the assessee, or
- a ship registered in Bangladesh, not being a ship ordinarily plying on inland waters, which has been or is brought into use in Bangladesh for the first time on any day between the 1st day of July, 1982 and the thirtieth day of June, 1995 (both days inclusive),
and is the property of the assessee, an amount by way of special depreciation allowance shall, subject to the conditions set out in subparagraph (2), be allowed and computed as follows, namely : –
- for the first year … 40 per cent of the original cost;
- for the second year … 30 per cent of the original cost;
- for the third year … 30 per cent of the original cost.
- For the purposes of special depreciation allowance under sub-paragraph
- , the following conditions shall be fulfilled, namely :-
- that the ship conforms to such specifications as the Government may, by notification in the official Gazette, specify in this behalf; and
- that the particulars required for the purpose of entitlement to or claiming special depreciation allowance under this paragraph have been furnished.
- Any ship including a passenger vessel or a fishing trawler on which special depreciation has been allowed under this paragraph shall not be entitled to any other depreciation allowance under this Ordinance or the Income-tax Act, 1922 (XI of 1922).
- Limitation in respect of allowance for depreciation.- (1) The aggregate of the allowances for depreciation allowed under this Ordinance or the Income-tax Act, 1922 (XI of 1922), in respect of any asset, shall not exceed the original cost of the asset. [15]
- Disposal of assets and treatment of gains or losses thereof.- Where in any income year any asset representing any building, machinery or plant is disposed of by an assessee-
- no allowance for depreciation under paragraph 3, 4, 6, 7 or 8 shall be allowed in respect thereof in that year;
- where the sale-proceed exceed the written down value of such asset, so much of the excess as does not exceed the difference between the original cost and the written down value, shall be deemed to be income of the assessee of that income year chargeable under the head “Income from business or profession”;
- where the sales-proceeds are less than the written down value of such asset, the deficit shall be deemed to be an expenditure, deductible from the profits and gains of business or profession of that year; and the business or profession in which such building, machinery or plant was used before its disposal, shall be deemed to be carried on by the assessee during that year, and the provisions of this Ordinance shall apply accordingly :
Provided that the deficiency is actually written off in the books of accounts of the assessee.
1[10A. Amortization of license fees.- (1) Where an assessee, being a resident company, paid any sum as 2[license fees before or after] the first day of July, 2012 wholly and exclusively for the purpose of obtaining a permission from any authority authorised by the government applicable for two or more years to run a business, the assessee shall be allowed a deduction of an amount proportionate to such years and such deduction shall continue till the last year of the period for whcih the license was granted.
(2) For the purpose of this paragraph, ‘license fees’ means Spectrum Assignment fees [16] [17] [18][,GSM license fees, license acquisition fees or license renewal fees] paid by a cellular mobile phone operator [19][:
Provided that the amortization offees shall be allowed from assessment year 2013-2014.]
- Manual, Part-1 [3rd Schedule
- – For the purposes of this Schedule,-
- “furniture” includes fittings;
- “plant” includes ships, vehicles, books, scientific apparatus and surgical equipment used for the purpose of business or profession;
- “sale-proceeds” means-
- where the asset is actually sold, the sale prices thereof or the fair market value, whichever is the higher;
- where the asset is transferred by way of exchange, the fair market value of the asset acquired through such transfer;
- where the asset is transferred otherwise than by sale or exchange, the consideration for such transfer;
- where an asset is discarded, demolished, destroyed or lost, scrap value, or the amount realised by the disposal thereof together with any insurance, compensation or salvage money received or receivable in respect therefor;
- where the asset is compulsorily acquired under any law for the time being in force in Bangladesh, the compensation paid thereof;
- where the asset ceases to be used by the assessee for the purposes of his business or profession, the fair market value thereof at the time of such cessation;
- where any machinery of plant, after having been used in Bangladesh in the execution of any contract or otherwise, is exported or transferred outside Bangladesh, the original cost thereof less [20] [the “normal depreciation” allowed under paragraph 3 of this Schedule]; or the depreciation allowances allowed under section 10(2) (vi) of the Income tax Act, 1922 (XI of 1922), except the further sum referred to therein; and in each such case the asset shall for the purpose of paragraph 10, be deemed to have been disposed of by the assessee:
Provided that where the actual cost of a motor vehicle not plying for hire, is, in accordance with clause (6) (a), taken to be ftwenty lakh taka], the sale-proceeds thereof shall be taken to be a sum which bears to the amount for which the said vehicle is sold, together with any insurance, salvage or compensation money received or receivable, or as the case may be, scrap value in respect thereof, at the same proportion as the said sum of 2[twenty lakh taka] bears to the actual cost of the said vehicle to the assessee, had the said subclause not been applicable to such vehicle.
Explanation.-In the proviso, “sold” includes a transfer by way of exchange or otherwise or a compulsory acquisition under any law for the time being in force;
- “Ship” includes a steamer, motor vessel, sail, tug boat, iron or steel flat for cargo, wooden cargo boat, motor launch and speed boat;
- “written down value” means-
- where the assets were acquired in the income year, the actual cost thereof to the assessee;
- where the assets were acquired before the income year, the actual cost thereof to the assessee as reduced by the aggregate of the allowances for depreciation allowed under this Ordinance, or the Income-tax Act, 1922 (XI of 1922), in respect of the assessments for earlier year or years;
- For the purposes of clause (5),-
(a) in the case of motor vehicles, being passenger vehicles or sedan cars, not plying for hire, the actual cost to the assessee shall be deemed not to exceed 3[twenty five lakh taka];
Subs. for “seven lakh fifty thousand taka” by F.A. 2000 again subs. for “ten lakh taka” by F.A.
2009
2
Subs. for “seven lakh fifty thousand taka” by F.A. 2000 again subs. for “ten lakh taka” by F.A. 2009
3
Subs. for “seven lakh fifty thousand taka” by F.A. 2000 again subs. for “ten lakh taka” by F.A. 2009 again subs. for “twenty lakh taka” by F.A. 2015
- in computing the actual cost of an asset, the amount of any grant, subsidy, rebate or commission and the value of any assistance (not being in the nature of any loan repayable with or without interest) received by an assessee from Government or any other authority or person, and any deduction or allowance admissible under this Ordinance or the Income tax Act, 1922 (XI of 1922), shall be excluded;
- where, before the date of acquisition by the assessee, any such asset had at any time been used by any person for the purposes of his business or profession, the actual cost to the assessee shall, except in any case where subclause (d) applies, be deemed not to exceed the fair market value thereof;
- where any assessee has succeeded another person in business or profession by inheritance, or where the provisions of section 88 apply, the written down value of an asset shall be computed as if no succession had taken place;
- where an assessee has acquired any plant or machinery (hereinafter referred to as “asset”) from a country outside Bangladesh for installation in Bangladesh for the purposes of his business or profession and, in consequence of a change in the rate of exchange at any time after the acquisition of such asset and before full and final payment of any foreign loan, there is an increase or reduction in the liability of the assessee as expressed in Bangladesh currency for making payment towards the whole or a part of the money borrowed by him from any person, directly or indirectly, in any foreign currency specifically for the purposes of acquiring the asset (being in either case, the liability existing immediately before the date on which change in the rate of exchange takes effect), the amount by which the liability aforesaid is so increased or reduced during the income year shall be added to, or as the case may be, deducted from the actual cost of the assets, and the amount arrived at after such addition or deduction shall be taken to be the actual cost of the asset;
- where the whole or any part of the liability aforesaid is met, not by the assessee, but, directly or indirectly, by any other person or authority, the liability so met shall not be taken into account for the purposes of clause (e); and
- where the assessee has entered into a contract with an authorised dealer for providing him with a specified sum in a foreign currency on or after a stipulated future date at the rate of exchange specified in the contract to enable him to meet the whole or any part of the liability aforesaid, the amount, if any, to be added to, or deducted from the actual cost of the asset or the amount of expenditure of a capital nature or, as the case may be, the cost of acquisition of the capital asset under this sub-clause shall, in respect of so much of the sum specified in the contract as is available for discharging the liability aforesaid, be computed with reference to the rate of exchange specified therein.
Explanation. – For the purposes of this clause-
- “rate of exchange” means the rate of exchange determined or recognised by the Government for the conversion of Bangladesh currency into foreign currency or foreign currency into Bangladesh currency; and
“authorised dealer”, “foreign currency” and “Bangladesh currency” have the same meaning as in the Foreign Exchange Regulation Act. 1947 (VII of 1947).
[1] PART C ins by F.A. 1993
- by F.A 1999
3
Subs. for ” six months ” by F.A. 2006 again subs. for, ” three months” by F.A. 2009
Subs. for ” Deputy Commissioner of Taxes by whom the employer is assessable” by F.A. 2000
[3] Ins. by F. A. 2010
[4] Ins. by F. A. 2010
1 Subs. by F.A. 2014
9
Omitted by F.A. 1998
- byF.O. 2007
4
Omitted by F.A. 1998
- Omitted by F.A. 1998
[6] Ins by F.A. 2002
Omitted by F.A. 1998
Subs. by F.A. 2002 again re-subs. by F.A. 2006
[9] Subs. for “2010.
[10] Subs. for “four months” by F.A. 2000
Subs. for. “under section 45 or 46A” by F.O. 2008
[12] Ins by F.A. 1995
[13]Subs. for “2000” by F.A. 20003
[14] Subs. for “2000” by F.A. 2000
[15] Where full effect cannot be given to depreciation allowances under this Schedule in the year in which it is admissible there being no income chargeable for that year or such income being less than the allowance admissible, then, subject first to carrying forward of the loss, if any, under section 38, the allowances or the part thereof to which effect has not been given shall be added to the amount of the allowance for the following year or, if no allowance is admissible for such following year, shall be deemed to be allowance admissible for such year and so on for succeeding years till such time as the entire allowance on this account is adjusted against the profits.
[16]Ins. sec (10A) by F.A. 2013
[17]Subs.by F.A. 2014
[18]Ins. by F.A. 2014
[19] Ins. by F.A. 2014
[20] Subs. for “the “normal depreciation” and “extra depreciation” in any, allowed under paragraph 3 and 4 or this Schedule by F.A. 1999