Part V: Computation Of Income
Chapter I: Total Income
Section 46 (Special areas of income from business.)
clause 1: Without prejudice to the provisions of section 45, the provision of this section shall, in special cases, apply to the computation of income from business.
clause 2: If any asset used in the business of the assessee for which the income is being computed is sold in any income year, the income from such sale proceeds shall be as follows, namely: SL. No Sale Proceeds Amount of Income
clause 3: 1. If the sale proceeds exceed the acquisition cost of the asset The amount equal to A-B shall be deemed as income under the head of 'Capital gains' of the concerned assessee in the said income year; The amount equal to B-C shall be deemed as income under the head 'Income from business' of the concerned assessee in the said income year. 2. If the sale proceeds does not exceed the acquisition cost of the asset, but exceeds the written down value The amount equal to A-C shall be deemed as income under the head 'income from business' of the concerned assessee in the said income year.
clause 3: Where any amount received as insurance, salvage or compensation in any income year in respect of any asset which having been used by the assessee for business purpose is discarded, demolished or destroyed and the amount of such moneys exceed the written down value of the asset, the amount of income in such case shall be as follows, namely: SL.No. [Sale Proceeds] Amount of Income
clause 3: 1. If the amount from insurance, salvage or compensation exceeds the acquisition value of the asset The amount equal to A-B shall be deemed as income of the concerned assessee for that income year under the head 'Capital gains'; The amount equal to B-C shall be deemed as income of the concerned assessee for that income year under the head 'Income from Business'. 2. If the amount from insurance, salvage or compensation amount does not exceeds the acquisition value of the asset, but exceeds the written down value Where A>C, the amount equal to A-C shall be deemed as income of the concerned assessee for the income year under the head 'Income from business'. Where A<C, the amount equal to C-A shall be allowed as expenditure under section 49 in the computation of 'Income from business' of the concerned assessee in the said income year.
clause 4: As per column
clause 2: of the table in sub-sections
clause 2: and
clause 3: , if the difference between the proceeds of sale or, as the case may be, the amount received for insurance, salvage or compensation against the asset and the written down value is negative, the amount shall be deemed to have been spent under the head income from business and shall be included under the allowable general deduction.
clause 5: In the table of sub-sections
clause 2: and
clause 3: A= Amounts received for insurance, salvage or compensation against assets 2[or sale proceeds], B= Acquisition value of assets, and 1 The heading sale proceeds was substituted by section 23(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 2 The words or sale proceeds were inserted by section 23(b) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.C= The calculated written down value of the asset after allowing depreciation under the Third Schedule.
clause 6: Where during any income year any assessee, being an exporter, transfers the whole or any part of the export quota allocated in his favour by the Government to any other person, the proportionate export value of such transferred quota shall be deemed to be income classifiable under the head Income from business of the assessee in that income year. 1[***]
clause 8: If in computing income under this Chapter for any income year, any trading liability has been accounted for by the assessee is taken into account and (a) in any subsequent income year, the assessee receives any benefit in respect of the trading liability, the value of that benefit shall be deemed to be income from business of the assessee in the income year in which the benefit is received; (b) if the trading liability or any part thereof remains unpaid within 3 (three) years after the end of the income year in which the said trading liability has been account for, then the said unpaid trading liability shall be classified as Income from Business of the assessee in the income year following the end of the said 3 (three) years: Provided that if any such trading liability, which has been treated as income, is paid in any subsequent year, such amount so paid shall be deducted in computing the income of the assessee in the income year in which the payment was made.
clause 9: If in any income year a loss, bad debt or any expense is allowed in computing income under this Chapter and if in any subsequent income year, the assessee receives any benefit in respect of such deducted loss, bad debt or expense, the value of that benefit shall be classified as income from business of the assessee in the income year in which the benefit is received.
clause 10: In the case of filing of return under section 180, any deficiency in the initial capital shown at any time within 5 (five) years after the year in which the return is filed shall be treated as income from business.
clause 11: In computing the income of a 2[finance company], interest or profit income on loans classified as bad debts or doubtful debts by Bangladesh Bank 1 Sub-section
clause 7: was omitted by section 23(c) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 2The words finance company were substituted for the word financial institution by section 14(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. shall be classified as income from business 1[finance company] in the income year in which it is credited in profit and loss account or in the income year in which it is actually received, whichever is earlier between the two.
clause 12: For the purposes of this section, (a) the business in which the asset is used before the sale shall be deemed to have been carried on by the assessee in the income year to which the sale of asset relates; (b) if an asset is exported or transferred outside Bangladesh after being used in the assessee's business, the date of such export or transfer shall be deemed to be the date of sale of the asset and the purchase price of the asset shall be deemed to be its sale proceeds.