THE INCOME TAX ORDINANCE, 1984. ( PART 17 )

THE FOURTH SCHEDULE

COMPUTATION OF THE PROFITS AND GAINS OF INSURANCE

BUSINESS
[See section 28(2)(a)]

Profits of life insurance to be computed separately.- In the case of any person who carries on, or at any time in the income year carried on, life insurance business, the profits and gains of such person from that business shall be computed separately from his income, profits or gains from any other business.
Computation of profits and gains of life insurance business.- The profits and gains of life insurance business, other than pension and annuity business, shall be taken to be either-

the gross external incomings of the income year from that business less the management expenses of that year, or
the annual average of the surplus arrived at by adjusting the surplus or deficit disclosed by the actuarial valuation made for the last inter-valuation period ending before the year for which the assessment is to be made, so as to exclude from it any surplus or deficit included therein which was made in any earlier inter-valuation period and any expenditure other than expenditure which may, under the provisions of section 29 of this Ordinance, be allowed for, in computing the profits and gains of a business, whichever is the greater:

Provided that the amount to be allowed as management expenses shall not exceed-

7 V₂ per cent. of the premiums received during the income year in respect of single premium life insurance policies, plus
in respect of the first year’s premiums received in respect of other life insurance policies for which the number of annual premiums payable is less than twelve, or for the number of years during which premiums are payable is less than twelve, for each such premium or each such year, 7 V₂ per cent. of such first year’s premium or premium received during the income year, plus
90 per cent of the ^[1] [first year’s premium received during the] income year in respect of all other life insurance policies, plus
12 per cent. of all renewal premiums received during the income year.

Computation of profits and gains of pension and annuity business.- The

profits and gains of pension and annuity business shall be taken to be the annual average of the surplus computed in the manner laid in paragraph 2(b).

– In computing the surplus,-

under paragraph 2(b), for the purpose of life insurance business, three- fourths of the amounts paid to or reserved for or expended on behalf of policy-holders, shall be allowed as a deduction, and under paragraph 3, the amounts paid to or reserved for or expended on behalf of the members of an approved superannuation fund shall be allowed as a deduction :

Provided that in the first such computation made under this paragraph of any such surplus, no account shall be taken of any such amounts to the extent to which they are paid out of or in respect of any surplus brought forward from a previous inter-valuation period:

Provided further that if any amount so reserved for policy-holders or members of an approved superannuation fund, as the case may be, ceases to be so reserved, and is not paid to or expended on behalf of policy-holders or members of an approved superannuation fund, as the case may be, one-half or three-fourths of such amount or the entire amount, as the case may be, if it has been previously allowed as a deduction, shall be treated as part of the surplus for the period in which the said amount ceased to be so reserved;

Subs. for. “first” by Corrigendum issued vide Bangladesh Gazette, dated 19th August, 1984

any amount either written off or reserved in the accounts or through the actuarial valuation balance-sheet to meet depreciation of or loss on the realisation of securities or other assets, shall be allowed as a deduction and any sums taken credit for in the accounts or actuarial valuation balance-sheet on account of appreciation of or gains on the realisation of the securities or other assets shall be included in the surplus :

Provided that if, upon investigation, it appears to the Deputy Commissioner of Taxes after consultation with the Controller of Insurance that having due regard to the necessity for making reasonable provision for bonuses to participating policy-holders and for contingencies, the rate of interest or other factor employed in determining the liability in respect of outstanding policy is materially inconsistent with the valuation of the securities and other assets so as artificially to reduce the surplus, such adjustment shall be made to the allowance for depreciation of or to the amount to be included in the surplus in respect of appreciation of, such securities and other assets as shall increase the surplus for the purposes of these paragraphs to a figure which is fair and just;

¹ [(c) interest received in respect of any securities of the Government which have been issued with the condition that interest thereon shall not be liable to tax shall be excluded.]

Adjustment of tax paid by deduction at source.- Where for any year an assessment of the profits and gains of life insurance business is made in accordance with the annual average of a surplus disclosed by a valuation for an inter-valuation period exceeding twelve months, then, in computing the tax payable for that year, credit shall not be given in accordance with section 62 for the tax paid in the income year, but credit shall be given for the annual average of the tax paid by deduction at source from interest on securities or otherwise during such period. ¹
Computation of profits and gains of other insurance business.- ‘[(1) The profits and gains of any business of insurance other than life insurance shall be taken to be the balance of the profits disclosed by the annual accounts, which are required to be prepared complying the provisions of the ^[2]^[3][fA ABb, 2oio (2oiombi 13 bs ABb) (Insurance Act, 2010) (Act No. 13 of 2010)], after adjusting such balance so as to exclude from it any expenditure, other than expenditure which may under the provisions of section 29 of the Income tax Ordinance, 1984 be allowed for, in computing the profits and gains of a business. Profits and losses on the realisation of investments, and depreciation and appreciation of the value of investments shall be dealt with as provided in paragraph 4 for the business of life insurance.]

Where a company sets aside a portion of its income, profits and gains to meet exceptional losses, so much of such portion as does not exceed ten per cent of the premium income of the year in which it is set aside shall be deducted from the balance of the profits referred to in sub-paragraph (1).
The amount deducted under sub-paragraph (2) in any year, together with the amounts, if any, deducted or carried to a reserve in earlier years to meet exceptional losses (as reduced by the amounts, if any, paid out of such amounts or reserve to meet exceptional losses) shall not exceed the premium income of that year or the average premium income of the three years immediately preceding that year, whichever is the higher.
Notwithstanding anything to the contrary contained in this Ordinance, where any amount is paid, appropriated or diverted out of, or from the amounts deducted under sub-paragraph (2) for purposes other than the meeting of an exceptional loss, such amount shall, together with the other premium income, if any, of the company for the year in which such payment, appropriation or diversion takes place, be deemed to be the premium income of the company for that year; and in the event of the liquidation of the company or the discontinuance of the business to which this paragraph applies, whichever is the earlier, the aggregate of the amounts deducted under sub-paragraph (2) (as reduced by the payments made out of such amounts to meet exceptional losses) shall, together with the other income, if any, of the company for the year in which it goes into liquidation or in which such business is discontinued, be deemed to be the income of the company for that year.

Explanation.-For the purposes of this paragraph, “exceptional loss” means the amount by which the aggregate loss in any year exceeds fifty per cent. of the premium income of that year or fifty per cent. of the average premium income of the three years immediately preceding that year, whichever is the higher, total world income of the company corresponding to the proportion which its premium income derived from Bangladesh bears to its total premium income. For the purposes of this paragraph, the total world income of life insurance companies not resident in Bangladesh whose profits are periodically ascertained by actuarial valuation, shall be computed in the manner laid down in these paragraphs for the computation of the profits and gains of life insurance business carried on in Bangladesh.

Profits and gains of non-resident person.- The profits and gains of the branches in Bangladesh of an insurance company not resident in Bangladesh in the absence of more reliable data, may be deemed to be the proportion of the total world income of the company corresponding to the proportion which its premium income derived from Bangladesh bears to its total premium income. For the purpose of the paragraph, the total world income of life insurance companies not resident in Bangladesh whose profits are periodically ascertained by actual valuation shall be computed in the manner laid down in these paragraphs for the computation of the profits and gains of the life insurance business carried on in Bangladesh.
Mutual Insurance Associations.- These paragraph apply to the assessment of the profits of any business of insurance carried on by a mutual insurance association.
– For the purposes of this Schedule.-

“gross external incomings” means the full amount and incomings from interest, dividends, fines and fees and all other incomings from whatever source derived (except premium received from policy-holders and interest and dividends on any annuity fund) and includes also profits from reversions and on the sale or the granting of annuities, but excludes profits on the realisation of securities or other assets :

Provided that incomings, including the annual value of the property occupied by the assessee, which but for the provisions of sub-section (2) of section 28 would have been assessable under section 24, shall be computed upon the basis laid down in the last named section, and that there shall be allowed from such gross incomings such deductions as are permissible under that section;

“management expenses” means the full amount of expenses (including commissions) incurred exclusively in the management of the business of life insurance, and in the case of a company carrying on other classes of business as well as the business of life insurance in addition thereto, a fair proportion of the expenses incurred in the general management of the whole business. Bonuses or other sums paid to or reserved on behalf of policy-holders, depreciation of, and losses on the realisation of securities or other assets and any expenditure other than expenditure which may under the provisions of section 29 be allowed in computing the profits and gains of a business are not management expenses for the purposes of this Schedule;
“life insurance business” means life insurance business as defined in section ‘[5(2) of fA ABb, 2o1o (2olombi 13 bs ABb)];
“securities” includes stocks and shares;
“pension and annuity business” means any life insurance business relating to a contract with the trustees of an approved superannuation fund, where such contract is-
entered into only for the purposes of such fund, and
so framed that the liabilities undertaken thereunder by the person carrying on the insurance business correspond with the liabilities against which the contract is intended to secure such fund.

¹ Subs. for “2(II) of the Insurance Act, 1938 (IV of1938)” by F.A. 2012

THE FIFTH SCHEDULE
PART A

COMPUTATION OF THE PROFITS OR GAINS FROM THE
EXPLORATION AND

PRODUCTION OF PETROLEUM AND THE DETERMINATION OF THE

TAX THEREON
[See section 28 (2)(b)]

Profits from exploration and production of petroleum to be computed separately.- Where any person carries on or is deemed under an agreement with the Government to be carrying on any business which consist of or includes exploration and production of petroleum, the profits or gains of such person therefrom shall be computed separately from his income, profits or gains from any other business.
Computation of profits.- Subject to the provisions of section 29, the profits and gains for the purposes of paragraph 1, shall be computed after making the following additional allowances, namely:-

where a person incurs any expenditure on searching for, or on discovering and testing a petroleum deposit or winning access thereto, but the search, exploration or enquiry upon which the expenditure is incurred is given up before the commencement of commercial production, such expenditure allocable to a surrender area and to the drilling of a dry hole shall be deemed to be lost at the time of the surrender of the area or the completion of the dry hole, as the case may be. A portion of such loss as provided for any agreement between any such person and the Government, shall be allowed in either of the following ways:-
such portion of the said loss in any year shall be set off against income, profits or gains from business or under any other head of income, other than income from dividend, of that year. If the loss cannot be wholly set off in this manner, the portion not so set off shall be carried forward to the following year and set off against such income, profits or gains, for that year in the same manner, and if it cannot be wholly so set off, the amount not so set off shall be carried forward to the following year and so on; but no loss shall be so carried forward for more than six years;

(ii) such portion of the said loss in any year shall be set off against income, profits or gains of the same business of the income year in which commercial production commences. If the loss cannot be wholly set off against the profit of the same business for that year, the loss not so set off shall be carried forward to the following year and set off against the profits or gains, if any, of the assessee from the same business for that year; and if it cannot be wholly so set off, the amount of loss not so set off shall be carried forward to the following year, and so on; but no loss shall be so carried forward for more than ten years;

after the commencement of commercial production, all expenditure prior thereto not deemed to be lost under clause (a) and not represented by physical assets in use at the time the commercial production commenced, shall be allowed as deductions. The portion of such deduction to be allowed in any year shall be such amount (not being greater than 10 per cent. of the aggregate amount deductible) as may be selected by the assessee;
expenditure incurred after the commencement of commercial production in connection with production and exploration shall be allowed as a deduction:

Provided that such expenditure on asset with respect to which depreciation is allowable shall not be deducted, and depreciation shall be allowable on such assets in accordance with the provisions of the Third Schedule. Depreciation shall also be allowed in respect of the expenditure referred to in the preceding clause on physical assets acquired prior to the date on which commercia production commenced, which were in use on that date, as if the assets were newly acquired at their original cost at the time of commencement of commercial production:

Provided further that where any depreciation allowance has been allowed before the commencement of commercial production, the original cost as aforesaid shall be reduced by the amount of such allowance;

if, in any year, the deductions admissible under section 29 and the foregoing clauses (b) and (c) of this paragraph, exceed the gross receipts from the sale of petroleum produced in Bangladesh such excess shall be set off against other income, not being a dividend, and carried forward in the manner and subject to the limitations laid down in sections 37, 38 and 42.

Depletion allowance.- In determining the profits or gains for any year ending after the date on which commercial production commenced, an additional allowance shall be made equal to 15 per cent. of the gross receipts representing the well-head value of the production from the business or part of the business to which the provisions of this Part apply:

Provided that such allowance shall not exceed one-half of the profits or gains as computed without the deduction of such allowance.

Payments to the Government and taxes.- (1) The sum of payments to the Government and taxes on income in respect of the profits or gains derived from the business or part of the business to which the provisions of this Part apply, for any year of assessment, shall be as provided for in the agreement with the assessee .^J[***]

(b) in respect of any tax or levy imposed in Bangladesh particularly applicable to oil production or to extractive industries, or any of them, and not generally imposed upon all industrial and commercial activities.
For the purposes of this paragraph, “payments to the Government” means amounts payable to the Government or to any governmental authority in Bangladesh,-

Adjustments of payments to the Government and taxes.- If in respect of any year, the aggregate of the sum of payments to the Government and taxes on income is greater or less than the amount provided for in the agreement referred to in paragraph 4(1), an additional income tax shall be payable by the assessee or an abatement of tax shall be allowed to the assessee, as the case may be, so as to make the aggregate of the sum of payments to the Government and taxes on income equal to the amount provided for in the agreement.

¹ Omitted by F.A. 1989 Omitted by F.A. 1989

Carry forward of excess payments.- If, in respect of any year, the payments to the Government exceed the amount provided for in the agreement referred to in paragraph 4(1), so much of the excess as consist of any tax or levy referred to in paragraph 4(2)(b) shall be carried forward and treated as payments to the Government for the purposes of paragraph 4 and 5 for the succeeding year.
Sale price of oil.- For the purposes of computing income under this Part, the “well-head value” shall be adopted as the sale price of the oil.
– For the purposes of this Part,-

“commercial production” means production as determined by the Government;

¹[(b) “petroleum” has the same meaning as assigned to it in Bangladesh Petroleum Act, 1974 (LXIX of 1974), but does not include refined petroleum products;]

“surrender” means the termination of right with respect to an area including the expiration of rights according to the terms of an agreement;
“surrendered area” means an area with respect to which the rights of a person have terminated by surrender or by assignment or by termination of the business;
“well-head value” has the meaning assigned to it in the agreement between the assessee and the Government and, in the absence of its definition in the agreement, the meaning assigned to it in the Petroleum (Production) Rules, 1949.

¹Subs. by F.A. 1989

THE FIFTH SCHEDULE
PART B

COMPUTATION OF PROFITS AND GAINS FROM THE
EXPLORATION AND EXTRACTION
OF MINERAL DEPOSITS (OTHER THAN OIL AND OIL GAS) IN

BANGLADESH
[See section 28(2) (c)]

Profits from exploration and extraction of mineral deposits to be computed separately.- Where any person carries on the business of the exploration or extraction of mineral deposits of a wasting nature other than oil and oil gas in Bangladesh, the profits and gains of such business, shall be computed separately from his income, profits or gains from other business, if any, and such business shall, for the purposes of these paragraphs, be treated as a separate undertaking (hereinafter referred to as such undertaking).
Computation of profits.- (1) Subject to the provisions of this Part, the profits and gains of such undertaking shall be computed in accordance with the provisions of section 29.

All expenditure on prospecting and exploration incurred by such undertaking up to the stage of commercial production shall, to the extent it cannot be set off against any other income of the said undertaking or any other income in accordance with section 37, be treated as a loss.
The loss computed in the manner specified in sub-paragraph (2) shall be set off against the income of such undertaking after the commencement of commercial production so, however, that if it cannot be wholly set off against the income, profits or gains of the said undertaking for the income year in which the commercial production was commenced, the portion not so set off shall be carried forward to the following year, and so on; but no loss shall be carried forward for more than ten years beginning with the year in which commercial production was commenced.
Notwithstanding the provisions of paragraph 3 and 6 of the Third Schedule, after the commencement of commercial production, depreciation allowance in respect of machinery and plant purchased or acquired for extracting the ore shall be allowed as a deduction against profits and gains of the year in which they are used for the first time in an amount equal to the original cost of such asset; where such allowance cannot be made in full in any year owing to there being no profits or gains chargeable for that year or owing to the profits and gains so chargeable being less than the allowance, the allowance or part of the allowance to which effect has not been given, as the case may be, shall be added to the amount of allowance for depreciation for the following year and deemed to be part of that allowance or, if there is no allowance for that year, be deemed to be allowance for that year, and so on for succeeding year :

Provided that where any loss has also to be carried forward under subparagraph (3) effect shall be given to that paragraph.

Depletion allowance.- (1) In computing the profits and gains of such undertaking for any year, an additional allowance (hereinafter referred to as the depletion allowance) shall be made equal to 15 per cent. of the total income of such undertaking (before the deduction of such allowance) or 50 per cent. of the capital employed in such undertaking (such capital being computed in accordance with such provisions as may be made by the Board for the purpose of this paragraph), whichever is the less.

No deduction on account of the depletion allowance shall be allowed under sub-paragraph (1) unless an amount equal to the depletion allowance is debited to the profit and loss account of the relevant income year and credited to a reserve account to be utilised for the development and expansion of such undertaking.
Where an allowance by way of depletion allowance has been made in any year and subsequently it is utilised for a purpose not specified in subparagraph (2), the amount originally allowed shall be deemed to have been wrongly allowed and the Deputy Commissioner of Taxes may, notwithstanding anything contained in this Ordinance, recompute the total income of the assessee for the relevant income year and the provisions of sections 93 and 94 shall, so far as may be, apply thereto, the period of four years specified in section 94 being reckoned from the end of the income year in which the amount was so utilised.

Tax exemption of profits from refining or concentrating mineral deposits.-

Where such undertaking is also engaged in the business of refining or concentrating in Bangladesh the mineral deposits extracted by it in Bangladesh, so much of the profits and gains (hereinafter referred to in subparagraph (2) as the said amount of profit and gains) derived from such business as does not exceed five percent of the capital employed in such business, such capital being computed in accordance with such rules as may be made by the Board for the purposes of this paragraph, shall be exempt from tax.
Where the profits and gains of such business, computed for any year of assessment cover a period which is less or more than one year, the amount of profits and gains exempt under sub-paragraph (1) shall be the amount which bears the same proportion to the said amount of profits and gains at the same proportion as the said period bears to a period of one year.
The profits and gains of the business to which this paragraph applies shall be computed in accordance with the provisions of sections 28 and 29.
Nothing contained in this paragraph shall apply to an undertaking which is formed by the splitting up, or the reconstruction of, a business already in existence, or by the transfer to a new business of any building, machinery or plant used in a business which was being carried on, on or before the first day of July, 1983.

The provisions of this paragraph shall apply to the assessment for the year next following the income year in which commercial production is commenced, or the loss under paragraph 2(3) or allowance, if any, under paragraph 2(4), as the case may be, has been set off or deducted in full, whichever is the later, and for the next following four years.

THE SIXTH SCHEDULE
PART A

EXCLUSIONS FROM TOTAL INCOME
[See section 44(1)]

(1) Any income derived from ‘[house property] held under trust or other legal obligation wholly for religious or charitable purposes, and in the case of ¹ [house property] so held in part only for such purposes, the income applied, or finally set apart for application, thereto.

²[Explanation.- The provisions of this paragraph shall not apply in the case of a non-government organisation registered with NGO Affairs Bureau].

(2) Where any income is not applied or is not deemed to have been applied to charitable or religious purposes in Bangladesh during the income year but is accumulated, or finally set apart, for application to such purposes in Bangladesh, such income shall not be included in the total income of the income year of the person in receipt of the income, provided the following conditions are complied with, namely,-

such person specifies, by notice in writing given to the Deputy Commissioner of Taxes, the purpose for which the income is being accumulated or set apart, and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years;
the money so accumulated or set apart is-
invested in any Government security as defined in section 2(2) of Public Debt Act, 1944 (XVIII of 1944), or in any other security which may be approved by the Government in this behalf, or
deposited in any account with the Post Office Savings Bank ^[1][,or
deposited in any account with scheduled bank of which fifty one per cent or more shares are held by the government.]

Manual, Part-1 [ 6^th Schedule, PART A

Where any income which-
is applied to purposes other than charitable or religious purposes or ceases to be accumulated or set apart for application thereto, or
ceases to remain invested in any security or deposited in any account referred to in sub-paragraph (2), or
is not utilised for the purpose for which it is so accumulated or set apart during the period referred to in sub-paragraph (2) or in the year immediately following the expiry thereof,

shall be deemed to be the income of such person of the income year in which it is so applied or ceases to be so accumulated or set apart or ceases to remain so invested or deposited or, as the case may be, of the income year immediately following the expiry of the period aforesaid.

^Explanation. -***]

²[1A. Any service charge derived from operation of micro credit by a nongovernment organisation registered with NGO Affairs Bureau.

Explanation.- For the purpose of this paragraph, “service charge” means any financial charge or interest or share of profit, called by whatever name, paid or payable by the loan recipient for the amount borrowed under micro credit programme from the non-government organisation].

³[Any voluntary contributions received by a religious or charitable institution]

and applicable solely to religious or charitable purposes:

Provided that nothing contained in paragraph 1 or 2 shall operate to exempt from the provisions of this Ordinance that part of the total income of a private religious trust which does not ensure for the benefit of the public.

⁴[3. The income of a local government.] ^[2]^{[3] [4] [5]}

(1) Any income accruing to, or derived by, a provident fund to which the Provident Fund Act, 1925 (XIX of 1925), applies.

(2) Any income accruing to, or derived by, workers participation fund established under the ¹[evsjv{‘k kOg AvBb, 2006 (2006 m{bi 42 bs AvBb), Bangladesh Labour Act, 2006 (Act No. XLII of 2006)], subject to any such conditions and limits as may be prescribed.

Any special allowance, benefits or perquisite specifically granted to meet expenses wholly and necessarily incurred in the performance of the duties of an office or employment of profit.

²[6. Any income received by the trustees on behalf of a recognised provident fund, an approved superannuation fund ³[or pension fund] and an approved gratuity fund.]

Any income received- (a) by any ambassador, high commissioner, envoy, minister, charge d’affairs, commissioner, counsellor, consul de carriere, secretary, adviser or attache of an embassy, high commission, legation or commission of a foreign State, as remuneration from such State for service in such capacity;

by a trade commissioner or other official representative in Bangladesh of a foreign State (not holding office as such in an honorary capacity) as his official salary, if the official salary of the corresponding officials, if any, of the Government, resident for similar purposes in the country concerned, enjoy a similar exemption in that country;
by a member of the staff of any of the officials referred to in clauses (a) and (b), as his official salary, when such member is not a citizen of Bangladesh and is either a subject of the country represented or a subject of some other foreign State and is not engaged in any business or profession or employment in Bangladesh otherwise than as a member of such staff, and the country represented has made corresponding provisions for similar exemptions in the case of members of the staff of the corresponding officials of the Government of the People’s Republic of Bangladesh in that country.

⁴[8. Any pension due to, or received by, an assessee.]

⁵[(9 )***]

⁶[(10.)***] ^[6]^{[7] [8] [9] [10]}

¹[(11.)***]

²[11A. Income from dividend received from a company listed in any stock exchange in Bangladesh up to twenty five thousand taka.]

⁴ [(12.)***

(13.)***]

Any income chargeable under the head “Income from property,”-

in respect of a building the erection of which is begun and completed at any time between the first day of July, 1975 and the thirtieth day of June, 1980 (both days inclusive), and the building is intended to be, and is actually, used for residential purposes only, for a period of five years from the date of such completion, subject to the following limits, namely,-
in a case where the annual value of such – the whole of such building does not exceed eight thousand and value;

four hundred taka, –

in a case where the annual value of such – eight thousand and building exceeds eight thousand and four four hundred taka: hundred taka,

Provided that where an assessee claims exemption in respect of more than one such building, the exemption under this clause shall be restricted to such portion of the aggregate annual value of such building as does not exceed eight thousand and four hundred taka;

in respect of a building the erection of which is begun and completed at any time between the first day of July, 1980 and the thirtieth day of June, 1985 (both days inclusive), and the building is intended to be and is actually, used for residential purposes only, for a period of five years from the date of such completion, subject to the following limits, namely,-
in a case where the annual value of such – the whole of such building does not exceed fifteen thousand value;

taka,

in a case where the annual value of such – fifteen thousand building exceeds fifteen thousand taka, taka: ^[11]^{[12] [13] [14]}

Provided that where an assessee claims exemption in respect of more than one such building, exemption under this clause shall be restricted to such portion of the aggregate annual value of such building as does not exceed fifteen thousand taka;

in respect of a building the erection of which is begun and completed at any time between the first day of July, 1975 and the thirtieth day of June, 1980 (both days inclusive), and which is intended to be and is actually, used for residential purposes only, for a period of five years from the date of such completion, subject to the condition that the plinth area of the building is not more than two thousand square feet. The exemption under this clause shall also apply in the case of housing companies, societies and estates where the construction comprises bungalows, flats, apartments or units (hereinafter referred to as units) each containing plinth area of not more than two thousand square feet provided the construction comprises not less than twenty-five units;
in respect of a building the erection of which is begun and completed at any time between the first day of July, 1980 and the thirtieth day of June, 1985 (both days inclusive), and which is intended to be, and is actually, used for residential purpose only, for a period of five years from the date of such completion, subject to the condition that the plinth area of the building is not more than one thousand square feet. The exemption under this clause shall also apply in the case of housing companies, societies and estates where the construction comprises bungalows, flats, apartments or units (hereinafter referred to as unit) each containing plinth area of not more than one thousand square feet provided the construction comprises not less than twenty-five units;

¹[(e) in respect of building the erection of which is begun and completed at any time between the first day of July, 1985 and the thirtieth day of June, 1990 (both days inclusive), and the building is intended to be, and is actually, used for residential purposes only, for a period of five years from the date of such completion, subject to the following limits, namely :-

in a case where the annual value of such building does not exceed fifteen thousand taka,
in a case where the annual value of such building exceeds fifteen thousand taka,

Ins. sub-paragraph (e) & f) by F.O. 1985

[ 6^th Schedule, PART A

(f) in respect of a building the erection of which is begun and completed at any time between the first day of July, 1985 and the thirtieth day of June, 1990 (both days inclusive), and which is intended to be, and is actually, used for residential purposes only, for a period of five years from the date of such completion, subject to the condition that the plinth area of the building is not more than one thousand square feet. The exemption under this clause shall also apply in the case of housing companies, societies and estates where the construction comprises bungalows, flats, apartments or units (hereinafter referred to as units) each containing plinth area of not more than one thousand square feet provided the construction comprises not less than twenty-five units];

¹[(g) in respect of a building the erection of which is begun and completed at any time between the first day of July,1990 and the thirtieth day of June,1995 (both days inclusive) and the building is intended to be, and is actually, used for residential purposes only, for a period of five years from the date of such completion subject to the following limits, namely :-

in a case where the annual value of such building does not exceed thirty thousand taka;
in a case where the annual value of such building exceeds ^[15]^[16][thirty thousand taka;]

³[(h)***]

¹[(15.)***

(16.)***

(17 )***]

Any income received by an assessee in respect of any share of income out of the capital gains on which tax has been paid by the firm of which the assessee is a partner.
Any sum received by an assessee as a member of a Hindu undivided family where such sum has been paid out of the income of the family.

²[20. Any income up to taka two crore fifty lakh received by an assessee as gratuity.]

Any payment from-

A provident fund to which the provident Funds Act, 1925 (XIX of 1925), applies; or
a recognised provident fund, subject to any such conditions and limits as may be prescribed; or
an approved superannuation fund, subject to any such conditions and limits as may be prescribed; or

³[(d) a workers participation fund established under gtjtwk kg AtBb, 2006 (2,006 mbi 82 bs ABb) and received by a worker as defined in section 2(65) of the said Act.]

⁴[(22).***]

⁵[22A. Income from ^[17][***] a mutual fund or a unit fund up to taka twenty five thousand.]

⁷[(23).***]

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

²[24A. Any income received by an assessee from wage earners development bond, US dollar premium bond, US dollar investment bond, Euro premium bond, Euro investment bond, Pound sterling investment bond or Pound sterling premium bond.]

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

³[26. Any amount received by an employee of a Government organisation, a local authority, or an autonomous or semi-autonomous body including the units or enterprises controlled by it, at the time of his voluntary retirement in accordance with any scheme approved by the Government in this behalf.]

⁴[27. Notwithstanding anything contained in any order or regulation for the time being in force, any income of an individual, being an indigenous hillman of any of the hill districts of Rangamati, Bandarban and Khagrachari, which has been derived solely from economic activities undertaken within the said hill districts.

An amount equal to fifty per cent. of the income of an assessee, other than a company not registered in Bangladesh, derived ⁵ [from the business of export but it shall not apply in case of an assessee, who is enjoying exemption of tax or reduction in rate of tax by any notification made under this Ordinace.]

Explanation.– For the purpose of this paragraph,–

sale of locally manufactured machinery, equipments and other finished products within the country to any agency against its procurement program in foreign exchange quota; and
supply of locally manufactured raw materials and other inputs to export oriented industry under internal back-to-back letter of credit, shall also be included in the definition of “business of export.”] ^[18]^{[19] [20] [21] [22]}

^x[29. Any income, not exceeding ²[two lakh] taka, chargeable under the head “Agricultural income” of an assessee, being an individual, whose only source of income is agriculture.]

³[[30).***]

⁴[(31.)***]

⁵[(31A).***]

⁶[(31B). ***]

⁷[(32.)***]

⁸[32A. Any sum or aggregate of sums received as interest from pensioners’ savings certificate or wage earners bond where the total accumulated investment at the end of the relevant income year in such certificate or bond does not exceed taka five lakh.]

⁹[33. Any income derived from the business of ^[23]^{[24] [25] [26] [27] [28] [29] [30] [31] [32]}[software development or Nationwide Telecommunication Transmission Network (NTTN) or] Information Technology Enabled Services (ITES) for the period from the first day of July, 2008 to the thirtieth day of June, ^[33]^[34][2024]:

Provided that the person shall file income tax return in accordance with the provisions of section 75(2)(c) of the Ordinance.

¹²[Explanation : Information Technology Enabled Services (ITES) means- Digital Content Development and Management, Animation (both 2D and 3D), Geographic Information Services (GIS), IT Support and Software Maintenance Services, Web Site Services, Business Process Outsourcing, Data entry, Data Processing, Call Centre, Graphics Design (digital service), Search Engine Optimization, Web Listing, E-commerce and Online Shopping, document conversion, imaging and archiving.]

Subject to the conditions made herender any income from fisheries, poultry, ‘[***], production of seeds, marketing of locally produced seeds, cattle farming, dairy farming, horticulture, frog faming, mushroom farming, floriculture, sericulture for the period from the first day of July, 2008 to the thirtieth day of June, 2011-

²[(a) if such income exceeds taka one lakh and fifty thousand, the person shall invest an amount not less than ten percent of the said income in the purchase of bond or securities issued by the Government within six months from the end of the income year and hold such bond or securities till maturity of such bond or securities;]

the person shall file return in accordance with the provisions of section 75(2)(c) of the Ordinance; and
no such income shall be transferred within five years from the end of the income year ^[35][:

Provided that income from fisheries as mentioned in this paragraph shall not apply to a company as defined in clause (20) of section (2) of this Ordinance].

Any income derived from the export of handicrafts for the period from the first day of July, 2008 to the thirtieth day of June, ^[36][2019].
Any amount paid by the Government as tax on behalf of a petroleum exploration company engaged in exploration of petroleum products in Bangladesh under Production Sharing Contract (PSC) with the Government of Bangladesh.
Income of any private Agricultural College or private Agricultural University derived from agricultural educational activities.

⁵[38. Any income derived from any building situated in any area of Bangladesh, not less than five storied having at least ten flats, constructed at any time between the first day of July, 2009 and the thirtieth day of June, 2014 (both days inclusive), for ten years from the date of completion of construction of the building, except the building situated in any areas of City Corporation, ^[37]^{[38] [39] [40] [41]}

Cantonment Board, Tongi Upazila, Narayanganj Paurashava, Gazipur Paurashava and any paurashava under Dhaka district.]

Income derived from any Small and Medium Enterprise (SME) engaged in production of any goods and having an annual turnover of not more than taka ‘[thirty lakh:]

Provided that person shall file income tax return in accordance with the provisions of section 75(2)(c) of the Ordinance.

Any income derived from Zero Coupon Bond received by a person other than Bank, Insurance or any Financial Institution, subject to the following conditions:

that the Zero Coupon Bond is issued by Bank, Insurance or any Financial Institution with prior approval of Bangladesh Bank and Securities Exchange Commission.
that the Zero Coupon Bond is issued by institution other than Bank, Insurance or any Financial Institution with prior approval of Securities Exchange Commission.

²[(41.)***].

³[42. Any income from poultry farming for the period from the first day of July 2011 to the thirtieth day of June, ⁴[2015] subject to the following conditions :

if such income exceeds taka 1,50,000/- an amount not less than 10% of the said income shall be invested in the purchase of bond or securities issued by the Government within six months from the end of the income year;
the person shall file return of his income in accordance with the provisions of clause (c) of sub-section (2) of section 75 of this Ordinance; and
no such income shall be transferred by way of gift or loan within five years from the end of the income year.] ^[42]^{[43] 3 4}

*[43. Any profits and gains under the head “Capital Gains” arising from the transfer of stocks or Shares of a public company as defined in CKMlbt ABb, 1998 (1998 mbi 18 bs ABb) listed in any stock exchange in Bangladesh of an assessee being a non-resident subject to the condition that such assessee is entitled to similar exemption in the country in which he is a resident].

²[44. An amount of income derived from cinema hall or Cineplex which starts commercial exhibition between the first day of July, 2012 and thirtieth day of June, ³[2019] for the period, and at the rate specified below:

if it is set-up in-

Dhaka or Chittagong divisions (excluding Rangamati, Bandarban and Khagrachari districts) for a period of five years beginning with the month of commencement of commercial exhibition:

Period of Exemption	Rate of Exemption
For the first two years (first and second year)	100% of income
For the next two years (third and fourth year)	50% of income
For the next one year (fifth year)	25% of income

⁴[(ii) Rajshahi, Khulna, Sylhet Rangpur and Barisal divisions and Rangamati, Bandarban and Khagrachari districts for a period of ten years beginning with the month of commencement of commercial exhibition:

Period of Exemption	Rate of Exemption
For the first three years (first, second and third year)	100% of income
For the next three years (fourth, fifth and sixth year)	50% of income
For the next four year (seventh to tenth years)	25% of income]

¹Ins. by bs 59-A&b/AW*%/*oS2, zffiLg 28/o2/2o12

Ins. new paragraph 44, 45, 46 and 47 by F.A. 2012 ³ Subs. for “2015” by F.A. 2014 ⁴Subs. by “2015” by F.A.2014

An amount of income derived by an industrial undertaking engaged in the production of rice bran oil and commencing commercial production by thirtieth day of June, ‘[2019] and at the rate specified below:

if the said undertaking is set-up in-

²[(i) Dhaka or Chittagong divisions (excluding city corporation area and Rangamati, Bandarban and Khagrachari districts) for a period of five years beginning with the month of commencement of commercial production:

Period of Exemption	Rate of Exemption
For the first two years (first and second year)	100% of income
For the next two years (third and fourth year)	50% of income
For the next one year (fifth year)	25% of income]

Rajshahi, Khulna, Sylhet Rangpur and Barisal divisions (excluding city corporation area) and Rangamati, Bandarban and Khagrachari districts for a period of ten years beginning with the month of commencement of commercial production:

Period of Exemption	Rate of Exemption
For the first three years (first, second and third year)	100% of income
For the next three years (fourth, fifth and sixth year)	50% of income
For the next four year (seventh to tenth years)	25% of income

An amount equal to fifty percent of the income of an assessee derived from the production of corn/maize or sugar beet; ^[44]^[45]
Income of an assessee donated in an income year to any fund established by or under the provisions of cahgik fk^t mntwt UA ABb, 2o12 (2o12 mbi 15 bs ABb) (Trust of Prime Minister’s Education Assistance Act, 2012) ( Act No. 15 of 2012) subject to a maximum of-

twenty percent (20%) of income of a company or taka eight crore, whichever is less;
twenty percent (20%) of income of an assessee other than a company or one crore taka , whichever is less.]

¹[48. Any income earned in abroad by an individual assessee being a Bangladeshi citizen and brought any such income into Bangladesh as per existing laws applicable in respect of foreign remittance.

Income of an assessee donated in an income year by a crossed cheque ²[or bank transfer] to any girls’ school or girls’ college approved by the Ministry of Education of the government.
Income of an assessee donated in an income year by a crossed cheque ²[or bank transfer] to any Technical and Vocational Training Institute approved by the Ministry of Education of the government.
Income of an assessee donated in an income year by a crossed cheque ²[or bank transfer] to any national level institution engaged in the Research & Development (R&D) of agriculture, science, technology and industrial development.]

³[52. Any income, not being interest or dividend classifiable under the head “Income from other sources”, received by any educational institution, if it –

is enlisted for Monthly Pay Order (MPO) of the Government;
follows the curriculum approved by the Government;
is governed by a body formed as per Government rules or regulations.

Any income, not being interest or dividend classifiable under the head “Income from other sources”, received by any public university or any professional institute established under any law and run by professional body of Chartered Accountants or Cost and Management Accountants or Chartered Secretaries.] ^[46]^{[47] [48]}

THE SIXTH SCHEDULE
PART B

EXEMPTIONS AND ALLOWANCES ^x[FOR ASSESSEES BEING
RESIDENT AND NON-RESIDENT BANGLADESHI]

[See section 44 (2)]

Any sum paid by an assessee, being an individual, to effect an insurance, or a

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

Any sum paid by an assessee, being a Hindu undivided family, to effect an

insurance on the life of any male member of the family or the wife of any such member :

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

Any sum deducted from salary payable by or on behalf of the Government to

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

Any sum paid by the assessee as a contribution to any provident fund to which

Provident Fund Act, 1925 (XIX of 1925), applies.

Any sum representing the assessee’s and the employer’s contribution to a

recognised provident fund in which the assessee is a participant subject to the limits laid down in Part B of the First Schedule.

Any sum paid by the assessee as ordinary annual contribution to approved

superannuation fund in which the assessee is a participant.

¹ [(7 )***]

²[(8 )***

(9) ***]

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

such savings certificates or instruments as the Board may specify in this behalf ³[***].
unit certificates and mutual fund certificates issued by ⁴[any financial institution or] the ⁵[Investment Corporation of Bangladesh and its subsidiaries];
such Government securities (including Development loans or Bonds) as the Board may specify in this behalf ; and
shares of such investment companies as the Board may specify in this behalf.

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

⁶[(2) Where any certificate, security or share (herein referred to as “the certificate”) to which clause (a), (b), (c) and (d) of sub-paragraph (1) apply and in respect of which any credit in tax has been allowed to the assessee, is disposed of by sale, transfer or in any other manner within five years from the date of its purchase or before the maturity thereof, as the case may be, then, ^[49]^{[50] [51] [52] [53] [54]}

notwithstanding anything contained in this Ordinance, the amount of tax payable by the assessee under the other provisions of this Ordinance in respect of the income year in which such certificate was so disposed of, shall be increased by an amount equal to the credit in tax allowed to the assessee in respect of such certificate (hereinafter referred to as the “said amount”) and the sum so arrived at or where no tax is payable by the assessee under the other provisions of this Ordinance in respect of that income year, the said amount shall be deemed to be the tax payable in respect of that income year and other provisions of this Ordinance shall, so far as may be, apply accordingly.]

¹[11. An amount not exceeding taka sixty thousand by an individual in any deposit pension scheme sponsored by a scheduled bank ²[or a financial institution].]

³[11A. Any sum paid as donation by an assessee to a charitable hospital which is established out side the city corporation area ⁴[one year] before such payment and is approved by the Board for this purpose.]

11B. Any sum paid as donation by an assessee to an organization set up for the welfare of retarded people, established at least ⁵[one year] before such payment and is approved by the Social Welfare Department and by the Board for this purpose.]

⁶[(12.)***]

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

⁷[(14.)***]

Any sum which the assessee is entitled to receive out of the income of an association of persons (other than a Hindu undivided family, company or a firm) on which tax has already been paid by the association : ^[55]^{[56] [57] [58] [59] [60]}

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

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

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

²[(18.)***

(19 )***

(20.)***]

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

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

⁵[23. Any sum invested in the purchase of one computer or one laptop by an individual assessee.] ^[61]^{[62] [63] [64] [65]}

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

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

²[(26.)***]

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

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

THE SEVENTH SCHEDULE

COMPUTATION OF RELIEF FROM INCOME TAX BY WAY OF
CREDIT IN RESPECT OF FOREIGN TAX
[See section 144 (4)]

– (1) In this Schedule,-

“Bangladesh tax” means income tax charged in accordance with the provisions of the Income Tax Ordinance,1984 ;
“foreign tax” means, in relation to any country an agreement with the Government of which has effect by virtue of section 144 of this Ordinance, any tax chargeable under the laws of that country for which credit may be allowed under the agreement ;
“foreign income tax” means any foreign tax which corresponds to income tax.
Where, an agreement having effect by virtue of the said section 144, provides for any tax chargeable under the laws of the country concerned being treated as income tax, that tax shall be treated as foreign tax or foreign tax other than foreign income tax, as the case may be.
Any reference in this Schedule to foreign tax or foreign income tax shall be construed, in relation to credit to be allowed under any agreement, as a reference only to tax chargeable under the laws of the country with the Government of which the agreement was made.

Credit against Bangladesh tax.- Subject to the provisions of this Schedule, where, under an agreement concluded under section 144, credit is to be allowed against Bangladesh tax chargeable in respect of any income, the amount of the Bangladesh taxes so chargeable shall, subject to the provisions of the said agreement, be reduced by the amount of the credit.
Credit admissible to residents.- Credit shall not be allowed against income tax for any year of assessment unless the persons in respect of whose income the tax is chargeable is resident for the period on the basis of which income is assessed.
Computation of credit.- The amount of the credit to be allowed for foreign tax against Bangladesh tax in respect of any income shall not exceed the amount which would be arrived at by applying the average rate of such tax to the doubly taxed income.
Effect on computation of income on allowance of credit.- (1) Where the income includes a dividend and, under the agreement, foreign tax, whether chargeable directly or by deduction in respect of the dividend or not, is to be taken into account in considering whether any, and if so, how much, credit is to be allowed against the Bangladesh tax in respect of the dividend, the amount of the income shall be treated as increased by the amount of the foreign tax appropriate to the dividend which falls to be taken into account in computing the amount of the credit.

Where the amount of the income is to be treated as increased under subparagraph (1), the foreign tax not chargeable directly or by deduction which is to be taken into account, shall be so much as borne by the body corporate paying the dividend upon the profits for the period for which the dividend is paid, or, if the dividend is not paid for a specified period, the profits of the last period for which accounts of the body corporate were made up which ended before the dividend became payable.

Explanation.- In this sub-paragraph “paid” means paid, credited or distributed or deemed to have been paid, credited or distributed.

Notwithstanding anything contained in the preceding provisions of this paragraph and in section 30, where part of the foreign tax in respect of the income cannot be allowed as a credit against the Bangladesh tax, the amount of the income shall be treated for the purposes of income tax as reduced by that part of that foreign tax.
Where the income tax payable depends on the amount received in Bangladesh the said amount shall be treated as increased by the amount of the credit allowable against income tax.
In computing the total income of a person for the purpose of determining the rate mentioned in paragraph 4, sub-paragraph (1) and (3) of this paragraph shall not apply, and for the reference in sub-paragraph (4) of this paragraph, to the amount of the credit allowance against income tax, there shall be substituted a reference to the amount of the foreign tax in respect of the income.

Limitation for claim.- (1) Subject to the provisions of sub-paragraph (2), any claim for an allowance by way of credit for foreign tax in respect of any income shall be made to the Deputy Commissioner of Taxes of the district in which the claimant is chargeable to income tax not later than two years from the end of the year of assessment for which that income falls to be charged to Bangladesh tax or would fall so to be charged if any such tax were chargeable in respect thereof.

(2) Where, the amount of any credit given under the agreement is rendered excessive or insufficient by reason of any adjustment of the amount of any tax payable either in Bangladesh or under the laws of any other country, nothing in the Ordinance limiting the time for the making of assessment or claims for refund shall apply to any assessment or claim to which the adjustment gives rise, being an assessment or claim made not later than two years from the time when all such assessment, adjustments and other determinations have been made whether in Bangladesh or elsewhere, as are material in determining whether any, and if so, how much, credit falls to be given.

– A person claiming an allowance by way of credit for foreign tax may appeal to the Appellate Joint Commissioner against any order of the Deputy Commissioner of Taxes disallowing the claim either wholly or in part, within thirty days of the date on which the order of the Deputy Commissioner of Taxes was communicated to the claimant, and the provisions of Chapter XIX of the Ordinance shall, with the necessary modifications, apply accordingly.
Provisions as to the deduction of tax at source.- (1) The provisions of this paragraph shall have effect where an agreement having effect under section 144 of the Ordinance provides for the exemption from Bangladesh tax of any class of income arising to persons resident in the country with the Government of which the agreement is made, being income from which deduction of tax is required to be made under the Ordinance.

Any person who pays income of any such class (referred to in this paragraph as “the Bangladesh payer”) to a person in the said country who is beneficially entitled to the income (such person being referred to in this paragraph as “the non-resident”) may be required, by notice given by or under the direction of the Board, to pay any such income to the non-resident without deduction of tax, and where such notice is given, any income from any source specified in the notice, being income for a year for which the agreement has effect, which the Bangladesh payer, the date on which the notice was communicated, pays to the non-resident whose name is specified therein, shall, subject to the following provisions of this paragraph, be paid without deduction of tax.
Any notice given under sub-paragraph (2) may be expressed to become ineffective if certain specified events happen or, whether so expressed or not, may be cancelled by a notice of cancellation given by or under the direction of the Board, and if, to the knowledge of the Bangladesh payer, any of those events happens or if such notice of cancellation is given, any payment made to the non-resident by the Bangladesh payer after the happening of that event becomes known to the Bangladesh payer, or after the date on which that notice was communicated to the Bangladesh payer, as the case may be, shall be subject to deduction of tax in accordance with the Ordinance.
If it is discovered, after a notice has been given under sub-paragraph (2) that the non-resident is not entitled to exemption from tax in respect of income from any source specified in the notice, any tax which, but for the notice, would have been deductible from any payment made to the nonresident by the Bangladesh payer but by virtue of the notice has not been so deducted shall, if a deduction to that effect is given by or under the direction of the Board, be deducted by the Bangladesh payer out of so much of the first payment made to the non-resident after the date on which the direction was communicated to the Bangladesh payer as remains after the deduction of any tax deductible therefrom under the Ordinance, and

any balance which cannot be deducted out of the first such payment shall be deducted, subject to the same limitation, out of the next such payment, and so on, until the whole of the tax (the amount of which shall be specified in the direction) has been deducted.

Any tax which the Bangladesh payer is required to deduct under subparagraph (4) shall be paid to the Government and the provisions of Chapter VII of the Ordinance relating to deduction of tax at source shall, with necessary modifications, apply accordingly.
A notice may be given under sub-paragraph (2) where income is paid to a person authorized to receive such income on behalf of a non-resident, and in such a case, the reference in this paragraph to payment to the non-resident shall be treated as including references to payment to that person.

¹[THE EIGHTH SCHEDULE

THE EIGHTH SCHEDULE
Deductions or Collections of tax at source

T See section 62A1

DHAKA President

The 3rd June, 1984 Peoples Republic of Bangladesh

ABUL BASHAR BHUIYAN

Deputy Secretary (Drafting)

⁴ Ins. by F.A. 1990

(2) Nothing contained in sub-section (1) shall apply to a co-operative society carrying on such business of insurance as is carried on by a mutual insurance association in respect of its profits and gains to which paragraph 8 of the Fourth Schedule applies.

¹ Subs. by F.O. 2008

Subs. by F.A. 1997, re-subs. by F.A. 1999 again subs. by F.A. 2002

by F.A. 2004

Subs. “clon” for “semi-colon” and inserted Proviso by F.A. 2013

Omitted by F.A. 2005
by F.A. 2012

⁵ Ins. ” or the commissioner (Appeals)” after “Appellate Joint Commissioner” everywhere of section 155 by F.A. 1990

² Ins. new section 165C by F.A. 2015

¹ Ins. by F.O. 2008

by F.A. 2009
by F.A. 2015

⁵ Ins. by F.A. 2009

for “property” by F.A. 2001
by F.A. 2002

Subs. “, or “for “full-stop” and ins. new sub-clause (iii) by F.A. 2011

^[2] Explanation omitted by F.A. 1999

[3]

Subs. by F.A. 2014

[4]

Subs. by F.A. 2014

[5]

⁴ Subs. by F.A. 2000

^[6] Subs. by F.A. 2014

^[7] Subs. by F.A. 1993

^[8] Ins. by F.A. 2012

^[9] Subs. by F.A. 2003

^[10]Omitted by F.A. 2002. ⁶Paragraph 10 omitted by F.A. 1990

^[11] Paragraph 11 omitted by F.A. 1991

[12]

Ins. new paragraph 11A by F.A. 2012 and subsequently subs. by F.A. 2015

[13]

Subs. for “ten thousand” by F.A. 2014

[14]

Paragraph 12 and 13 omitted by F.A. 2011

^[15] Ins. by F.A. 1990

[16]

Subs. for “twenty thousand taka” by F.A. 1993

Omitted by F.A. 1999

Paragraphs 15, 16 and 17 omitted by F.O. 2008 Subs. by F.A. 2015 Subs. by F.A. 2015

Subs. by F.A. 2003 subsequently omitted by F.A. 2005 Ins. by F.A. 2003 subsequently subs. by F.O. 2008 Omitted by F.A, 2015 Omitted by F.A, 1992

^[18] Paragraph 24 and 25 ins. by F.A. 1992

^[19] Paragraph 24A ins. by F.A. 2015

^[20] Ins. by F.A. 1993

^[21] Paragraph 27 and 28 ins by F.A. 1995

^[22] Subs. for “from the business of export” by F.A. 2003

^[23] Ins. by F.A. 1996

[24]

Subs. for “fifty thousand taka”by F.A. 2014

[25]

Subs. by F.A. 2002 subsequently omitted by F.A. 2011

[26]

Ins. by F.A. 1999 and subsequently omitted by F.A. 2005

^[27] Ins. by F.A. 2003 and subsequently omitted by F.O. 2007

^[28]Ins. by F.A. 2004 subsequently omitted by F.A. 2011

[29]

Omitted by F.A. 2002

^[30] Ins. by F.A. 2014

[31]

Ins. paragraph 33, 34, 35, 36, 37, 38, 39, and 40 by F.O. 2008

^[32] Subs. by F.A. 2014

^[33] Subs. for ”2019” by F.A. 2015

[34]

Subs. by F.A. 2011

^[35] Ins. by F.A. 2011

^[36] Subs. for “2013” by F.A. 2013

^[37] Omitted by F.A. 2010

^[38] Subs. by F.A. 2014

[39]

Subs. “, ” and Ins. new proviso by F.A. 2010

^[40]Subs. for”2015″ by F.A. 2015

^[41] Subs. by F.A. 2009

^[42] Ins. “thirty lakh” by F.A. 2013

Omitted by F.A. 2010

^[44] Subs. for “2015” by F.A. 2014

^[45]Subs. byF.A.2014

^[46] Ins. Paragraphs 48, 49, 50 &51by F.A. 2014

[47]

by F.A. 2015

[48]

Ins. Paragraphs 52 & 53 by F.A. 2015

Ins. “for assessees being resident” by F.A. 1995 and subs. for “for assessees being resident” by

F.O. 2007

^[49] Omitted by F.A. 1992

[50]

Omitted Paragraphs 8 and 9 by F.A. 2011

[51]

Omitted by F.A. 1997

^[52] Ins. by F.O. 2013

^[53]Subs. for “investment Corporation of Bangladesh” by F.A. 2004

^[54] Subs. by F.A. 1998

^[55] Subs. by F.A. 2011

^[56] Ins by F.A. 2012

^[57] Ins. by F.A. 2000

Subs. for “threeyears” by F.A. 2002

^[59] Subs. for “three years ” by F.A. 2002

^[60] Omitted by F.A. 1992

Omitted by F.A. 1992

^[61] Ins. by F.A. 1995

Omitted by F.A. 1992

^[63] Ins. by F.A. 1993

^[64] Ins. by F.A. 2005

¹ Ins. paragraph 24, 25, and 26 by F.A. 2011 Omitted by F.A. 2012

by m.Ali. I bs 6o-wlBb/Al¥Ki/2ol2, ZiLs 28/o2/2o12

^[1] Subs. by F.A. 1995

^[2] Subs. by F.A. 2005

^[3] Subs. for “insurance Act, 1938 (IV of1938)” by F.A. 2012

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Law Frim in Bangladesh