mahfuzmee-eng/income-tax-bd huggingface dataset:
Part 18: Registration Of Assessee
Section 1 (Short title and commencement.)
clause 1: This Act may be called the Income-tax Act, 2023.
clause 2: It shall come into force at once.
Part 18: Registration Of Assessee
Section 3 (Overriding effect of the Act.)
clause 1: Notwithstanding anything contained in any other law for the time being in force, the provisions of this Act shall prevail.
clause 2: If any other law or any provision thereof is inconsistent with any provision of this Act, that other law or provision of that law shall be deemed to be void to the extent of the inconsistency. 10478
Part 18: Registration Of Assessee
Section 5 (Appointment of income-tax authorities.)
clause 1: Subject to applicable laws, rules and regulations, the income-tax authority shall be appointed.
clause 2: The Board may, subject to the manner prescribed by rules, appoint and post any person as an Income-tax authority.
clause 3: The Board may, subject to the organogram, appoint such number of staff as may be necessary. 2[
clause 4: Where an income-tax authority is posted to a higher position immediate to his existing position on current charge, he shall be entitled to exercise all the powers and to perform the functions of such higher position.] 3[6. Delegation of powers.
clause 1: The Board may, by an order, (a) delegate any of its powers to any other income-tax authority subordinate to it; (b) delegate any powers of an income-tax authority to any other income-tax authority.
clause 2: The Commissioner of Taxes may, by an order, delegate any of his powers to any other income-tax authority subordinate to him.]
Part 18: Registration Of Assessee
Section 8 (Duties and functions and jurisdiction of income-tax authorities.)
clause 1: Subject to other provisions of this Act, the Member (Tax) may exercise all the powers and perform functions which the Board may exercise and perform under this Act. 1 The words and brackets Assistant Director (Central Intelligence Cell) were added by section 16(d) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 2 Sub-section
clause 4: was added by section 17 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 3 Section 6 was substituted by section 18 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 10480
clause 2: The Director General (Inspection) shall perform the following functions, namely: (a) to inspect the execution of proceedings under this Act; (b) to propose tax policy reforms and identify areas for tax administration improvement on the basis of the inspection; (c) to submit to the Board, in such a manner as may be directed by the Board, reports incorporating opinions and recommendations; and (d) to perform such other functions as may be determined by the Board.
clause 3: The Director General (Central Intelligence Cell) shall perform the following functions, namely: (a) to carry out intelligence work for collecting information on assessees; (b) to analyse information gathered through intelligence work vis-a-vis concerned income tax records; (c) to detect tax evasions, concealments of income and irregularities referred to in Part 13 and 15; (d) to carry out investigations to prove tax evasion or concealment of income or any other irregularity relating to taxes and to collect evidence in favour of tax evasion or for recovery of tax with payment of penalty and, subject to applicability, to make recommendations for appropriate prosecution; (e) to carry out any other function authorized by any other law or assigned by the Board.
clause 4: The Board may, by order, determine the jurisdiction of the income-tax authority, and, if necessary, re-determine the jurisdiction or change the functions of the income-tax authority or transfer them to any other income-tax authority.
clause 5: Such transfer as referred to in sub-section
clause 4: shall be made at any stage of normal proceedings and further proceedings shall be taken from the stage at which the transfer was made.
clause 6: The Board may, by an order, determine the place of tax assessment of assessees.
Part 18: Registration Of Assessee
Section 12 (Exercise of assessment functions of the Inspecting Additional Commissioner of Taxes.)
clause 1: The Commissioner, with the prior approval of the Board, may, by general or special order in writing, direct that in respect of all or any proceedings relating to specified cases or classes of cases or to a specified person or classes of persons within his jurisdiction, the powers and functions of any authority under this Act shall be exercised by the immediate superior income-tax authority of that authority.
clause 2: Any order issued under sub-section
clause 1: , any reference to the income-tax authority under this Act or any rule made thereunder shall be deemed to have been made to the immediate superior income-tax authority.
Part 18: Registration Of Assessee
Section 13 (Establishment of Taxes Appellate Tribunal.)
clause 1: For the purpose of performing the functions of the Appellate Tribunal under this Act, the Government shall establish a Taxes Appellate Tribunal consisting of a President and such other members as the Government may, from time to time, appoint.
clause 2: A person shall not be appointed as a member of the Taxes Appellate Tribunal unless (a) he is or was a member of the Board; or 1 The word Joint was omitted by section 19 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 10482 (b) he is or was a District Judge; or (c) he is a Commissioner of Taxes; or (d) he is a tax practitioner within the meaning of section 327 and practiced professionally for not less than 10 (ten) years; or (e) he is a professional legislative expert having not less than 10 (ten) years experience in the process of drafting and making financial and tax laws.
clause 3: The Government shall appoint one of the members of the Appellate Tribunal to be the President thereof, who 1[***] is a member of the Board.
Part 18: Registration Of Assessee
Section 14 (Exercise of power of the Tribunal by Benches.)
clause 1: Unless the President in any particular case or class of cases otherwise directs, the powers and functions of the Appellate Tribunal shall be exercised by Benches of the Appellate Tribunal, hereinafter referred to as Bench, to be constituted by the President.
clause 2: A Bench constituted under sub-section
clause 1: shall have not less than 2 (two) members.
clause 3: At least one member of each Bench constituted under sub-section
clause 1: shall be appointed from among the following persons, namely: (a) a member of the National Board of Revenue, or (b) Commissioner of Taxes.
Part 18: Registration Of Assessee
Section 15 (Decisions of Bench.)
clause 1: Subject to the provisions of sub-sections
clause 2: and
clause 3: , the decision of Bench in any case or on any point shall be given in accordance with the opinion of the majority of its members.
clause 2: Any point on which the members of a Bench are equally divided shall be stated in writing and shall be referred by the President to one or more other members of the Appellate Tribunal for hearing and the point shall be decided according to the majority of the members of the Appellate Tribunal who have heard it including those who first heard it.
clause 3: Where there are only two members of the Appellate Tribunal and they differ in any case, the Government may appoint an additional member of the Appellate Tribunal for the purpose of hearing the case, and the decision of the case shall be given in accordance with the opinion on the majority of the members of the Appellate Tribunal as constituted with such additional member. 1 The words was or were omitted by section 20 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
Part 18: Registration Of Assessee
Section 18 (Charge of income-tax.)
clause 1: Income-tax shall be charged, levied, paid or collected on the basis of the total income of any person in any income year.
clause 2: Subject to the provisions of this Act, income-tax shall be charged, levied, paid or collected at the prescribed rate for any assessment year under an Act made by Parliament: Provided that income tax may be charged, levied, paid or collected at the prescribed rate on income earned in any period other than the income year.
clause 3: The following taxes shall be charged, levied, paid or collected in accordance with the provisions of this Act, namely: (a) tax at source; (b) advance income tax; (c) minimum tax; and (d) any other tax.
clause 4: Subject to the provisions of this Act, any surcharge or any other charge shall be charged, levied or collected at such rate and in such nature as may be prescribed under an Act made by Parliament.
clause 5: Notwithstanding anything contained in this section, tax shall be levied at the rate specified in Part 7 and the Seventh Schedule in the following cases (a) any income by way of capital gain; (b) any income by way of dividend; and (c) any money received by winning a lottery, crossword puzzle, card game, online game or game of any similar nature.
Part 18: Registration Of Assessee
Section 21 (Penalty for any offshore asset not disclosed in the return.)
clause 1: Where any person being a resident Bangladeshi is found to be the owner of any offshore asset not disclosed in the return and the assessee fails to offer satisfactory explanation about the nature and source thereof or the explanation offered is, in the opinion of the Deputy Commissioner of Taxes, not satisfactory, in that case, the Deputy Commissioner of Taxes shall charge penalty equal to the fair market value of such offshore asset on the assessee and proceed to recover thereof.
clause 2: The provisions of sub-section
clause 1: shall not prejudice any liability arising under this Act or any other law in force in Bangladesh.
clause 3: In the imposition of penalty under sub-section
clause 1: , the assessee shall be given a reasonable opportunity of being heard.
clause 4: The Deputy Commissioner of Taxes shall have the authority to recover the penalty under sub-section
clause 1: by confiscating or selling any asset held by assessee or any other person on behalf of the assessee.
clause 5: The Deputy of Commissioner of Taxes shall have the power to conduct an onshore and offshore investigation, where he has reason to believe that an assessee has offshore assets not disclosed in the return.
clause 6: To prevent holding undisclosed offshore asset in the return and to recover such laundered offshore asset, the Board may (a) take such necessary action as it deems fit; or (b) approve, permit or arrange an inquiry or investigation by any income-tax authority not being below the rank of Deputy Commissioner of Taxes.
Part 18: Registration Of Assessee
Section 24 (Voluntary disclosure of investment or income by paying special tax etc.)
clause 1: Where it is provided that the source of such investment shall be deemed to have been explained in accordance with the provisions of this Act on payment of tax at the rate and under the conditions prescribed in the First Schedule of this Act, the said investment shall be deemed to be so explained.
clause 2: Where a person has been given an opportunity to disclose any undisclosed income under the provisions of this Act, subject to the payment of tax and other applicable amounts prescribed in the First Schedule and subject to the conditions specified in the Schedule, there shall be an opportunity to disclose such income.
Part 18: Registration Of Assessee
Section 26 (Scope of the total income.)
clause 1: Subject to the provisions of this Act, the total income of any income year of any person includes (a) in relation to a person who is a resident, all income, from whatever source derived, which (i) accrues or arises, or is deemed to have accrued or arisen to him in Bangladesh during that year; or (ii) accrues or arises to him outside Bangladesh during that year; or (iii) is received or deemed to have been received in Bangladesh by or on behalf of such person in such year; or (iv) is received or deemed to have been received outside Bangladesh by or on behalf of such person in such year; (b) in relation to a person who is a non-resident, all income from whatever source derived, which (i) accrues or arises, or is deemed to have accrued or arisen, to him in Bangladesh during that year; or (ii) is received or deemed to have been received in Bangladesh by or on behalf of such person in such year.
Part 18: Registration Of Assessee
Section 27 (Income deemed to accrue or arise in Bangladesh.)
clause 1: received from outside Bangladesh; and
clause 2: used, for the purpose of a business carried on outside Bangladesh or for the purpose of earning any income from any source outside Bangladesh; (iii) by a person who is a non-resident where the debt incurred, or moneys borrowed and used for the purposes of a business carried on by such person in Bangladesh or for the purposes of making or earning any income from any source in Bangladesh; (f) any income by way of fees for technical services, if payable (i) by the Government of Bangladesh; or (ii) by a person who is a resident, except for the following cases, if such fees
clause 1: are payable in respect of services utilized in a business carried on outside Bangladesh; or
clause 2: are payable for the purposes of making or earning any income from any source outside Bangladesh; (iii) by a person who is a non-resident where such fees are payable in respect of services utilized in a business carried on by such person in Bangladesh or for the purposes of making or earning any income from any source in Bangladesh; (g) any income by way of royalty payable (i) by the Government of Bangladesh; or (ii) by a person who is a resident, except where the royalty
clause 1: is payable in respect of any right, property or information used or services utilized for the purposes of a business carried outside Bangladesh; or
clause 2: is payable for the purposes of earning any income in exchange of any right, property or information or services received from any source outside Bangladesh; (iii) by a person who is a non-resident where the royalty is payable in respect of any right, property or information used or services utilized for the purposes of a business carried on by such person in Bangladesh or for the purposes of making or earning any income from any source in Bangladesh; (h) insurance or reinsurance premiums accrued or payable by a resident or non-resident to insure against any risk within Bangladesh.
Part 18: Registration Of Assessee
Section 31 (Consolidation of income.)
clause 1: Save as otherwise provided in this Act, the following income shall be included in the total income of a person, namely: (a) if said person is a partner of a firm or a member of an association of persons, his share in the income of the firm or association of persons; 10490 (b) the income of the husband or wife or minor child, if (i) the said spouse or minor child is dependent on him; (ii) the said person has reasonable control over such income; or (iii) the said person is willing for such consolidation: Provided that this provision shall not be applicable when the tax of said spouse or minor child has been assessed separately. 1[***] CHAPTER II INCOME FROM EMPLOYMENT
Part 18: Registration Of Assessee
Section 32 (Income from employment.)
clause 1: Subject to the provisions of sub- section
clause 2: , income from employment shall include the following incomes, namely: (a) any monetary receipts, salaries and benefits received or receivable from employment; (b) income earned from employee share schemes; (c) untaxed arrear salary; or (d) any amount or benefit received from a past or future employer.
clause 2: Income from employment shall not include the following receipts, namely: (a) amounts received for medical expenses related to heart, kidney, eye, liver and cancer operations of any such employee who is not a shareholder director; or (b) any conveyance allowance, traveling allowance and daily allowance received wholly and exclusively incurred in the performance of the duties of employment. Explanation. For the purposes of this section, (a) salary means sums of any nature received by an employee from employment and shall include the following items, namely: (i) any salary, wages or remuneration; 1 Sub-section
clause 2: was omitted by section 21 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. (ii) any allowance, leave allowance, leave encashment, bonus, fees, commission, overtime; (iii) advance salary; (iv) gratuities, annuities, pensions or supplements thereof; (v) perquisites; (vi) profit in lieu of salary or wages or receipts in addition to salary or wages; (b) profit in lieu of salary or wages or receipt in addition to salary or wages shall include (i) any compensation received on account of termination of employment, called by whatever name; (ii) remaining portion excluding employee's contribution to provident fund or any other fund; (iii) the fair market value of benefits or sums received as a result of modification of the terms and conditions of the employment contract; (iv) the fair market value of benefits or sums received at the time of joining employment or under any other condition of employment; (c) perquisite means any payment or benefit, including incentive bonus, made by the employer to the employee, but shall not include the following payments, namely: (i) basic salary, arrears, advance salary, festival allowance, leave encashment and overtime; (ii) contributions to recognized provident funds, approved pension funds, approved gratuity funds and approved superannuation funds; (d) basic salary means the pay which is payable monthly or otherwise on the basis of which other allowances and benefits are determined, but the following allowances or benefits shall not be included in the basic salary, namely: (i) all types of allowances, perquisites, annuities, bonuses and benefits; and 10492 (ii) employers contributions made by the employer to various funds of the employee; (e) employer means the person who employs and pays the wages and salaries or the person who performs the said work on behalf of the employer shall also be deemed to be the employer.
Part 18: Registration Of Assessee
Section 33 (Determination of monetary value of perquisites, allowances and benefits.)
clause 3: 1. Accommodation benefits a. The annual cost of accommodation, if the accommodation rent is fully paid by the employer or if the accommodation is provided by the employer; b. In respect of accommodation obtained at reduced rent, the difference between the rent determined under clause (a) and the rent paid. 2. Benefits for each motor vehicle (a) 10,000 (ten thousand) Taka monthly for vehicles up to 2500 cc; (b) 25,000 (twenty-five thousand) Taka monthly in case of vehicles above 2500 cc. 3. Any other perquisites, allowances or benefits Monetary value or fair market value of perquisites, allowances or benefits.
Part 18: Registration Of Assessee
Section 34 (Determination of income earned from employee share schemes.)
clause 1: Employee share scheme means any agreement or arrangement under which a company (a) may issue shares to any of its employees or employees of any of its associate companies; or (b) may issue shares to the trustee of a trust and subsequently the trustee may issue such shares to any employee of the said company or any of its associate companies in accordance with the trust deed.
clause 2: If shares are received under an employee share scheme, in the year of receipt of shares, the income shall be added to income from employment as per A-B, where A = fair market value of the shares on the date of receipt; B = cost of acquisition of shares.
clause 3: The cost of acquisition of shares referred to in sub-section
clause 2: shall mean the sum of the following costs, namely: (a) if the employee has paid any price to acquire the shares; (b) if the employee has paid any price for the right or opportunity to acquire shares.
clause 4: If the right or opportunity to acquire shares under the employee share scheme is sold or transferred by the employee, the income shall be added to the income from employment in accordance with formulae A - B, where A = sale or transfer price of the right or opportunity to acquire shares; B = price paid for the right or opportunity to acquire shares. CHAPTER III INCOME FROM RENT
Part 18: Registration Of Assessee
Section 35 (Definitions.)
clause 1: house property means any house property, house or building and shall also include the following assets, namely (a) furniture, fixtures, fittings which are an integral part of the said house; and (b) the land on which the said house is erected: Provided that it shall not include the following house or building, namely: i. any building used completely as go-down, or ii. any factory building which is rented out as an integral part of plant and machineries; 1 Chapter III was substituted by section 22 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 10494
clause 2: rent means the grant of the right to use property for a specified period of time without relinquishing ownership or title, however shall not include, whether owned or not, rent to any other person, by a scheduled bank, investment bank, any development finance company or mudaraba or leasing company;
clause 3: property means house property, land, furniture, fixtures, factory buildings, business premises, machineries, personal vehicles and any other physical assets of capital nature which is rentable.
Part 18: Registration Of Assessee
Section 36 (Income from rent.)
clause 1: The remaining amount after deducting the total allowable expenses, mentioned in this chapter, from the gross rental value of any property of a person shall be the income from rent of that person from that property.
clause 2: If any portion of the property of a person is used for the purpose of the person's own business and the income derived therefrom is computable as the income from business of that person, this section shall not apply to the part thereof.
clause 3: Excepting the cases of hostel, hotel, motel or resort, the nature of rent of any property, regardless of trade, commerce or business of whatever kind, income therefrom shall be computed under the head Income from rent.
Part 18: Registration Of Assessee
Section 37 (Computation of gross rental value.)
clause 1: The gross rental value of a house property owned by a person himself in any income year shall be computed according to the following formula, namely: A = (B+C+D+E)-F, where A = gross rental value; B = the higher of the following amounts, namely: i. rent accrued from the house property, or ii. annual value of the house property; C = so much of the adjustment made in the income year in respect of adjustable advance received by way of house rent: Provided that, any unadjustable advance or security deposit shall not be included therein; D = any other sum or monetary value of any benefit, excepting salamy or premium, received in respect of use of that house property in the said income year, which is in addition to the sum mentioned in 'B' or 'C'; E = any service charge, repair and maintenance charge or any other sum, called by whatever name, paid by the tenant of the house property; F = vacancy allowance admissible subject to production of electricity bill.
clause 2: The gross rental value of a property other than house property shall be computed according to the following formula, namely: A = (B+C+D), where A = gross rental value; B = the higher of the following amounts, namely: i. rent accrued from the property, or ii. annual value of the property; C = so much of the adjustment made in the income year in respect of adjustable advance received by way of property rent: Provided that any unadjustable advance or security deposit shall not be included therein; D = income derived from the use of the property in any other way and any other sum or monetary value of any benefit received in respect of use of property which is in addition to the sum mentioned in 'B' or 'C'.
Part 18: Registration Of Assessee
Section 38 (Allowable deductions in computing rental income.)
clause 1: For computing income from rent of house property owned by a person himself, the following expenses shall be deductible, namely: (a) the premium paid for any insurance against the risk of damage or destruction of any house property; (b) interest or profit paid on any capital loan taken from any bank or finance company for the acquisition, construction, renovation or reconstruction of the house property; (c) any tax, fee or other annual charge paid on the house property, which is not a capital charge in nature; (d) if any interest or profit has been paid to any bank or finance company on any capital loan used for acquisition, construction, repair, re-modelling or reconstruction of the house property during the pre-rental period, such interest or profit shall be deductible in equal instalments for a total of 3 (three) consecutive income years starting from the relevant income year in which the property has been rented out first: 10496 Provided that interest or profit or any part thereof, if any, of the pre-rental period shall not be deductible after the said period. (e) the sums mentioned in the table below for expenditure on collection of rent, water and sewerage, electricity, gas, service charge, repair and maintenance charge and any other basic service, namely: Serial No. Type of property Deductible expenses (As a percentage of the total rental value)
clause 3: 1. House property used for commercial purpose 30% (thirty percent) 2. House property used for non- commercial purpose 25% (twenty-five percent); (f) in case of partial rent of the property, expenses shall be allowable at proportionate rate against the partial rent; (g) where a property is let out for a part of the income year, the expenditure shall be allowable at the rate proportional to the period for which the property is rented out.
clause 2: For computing income from rent of a property other than a house property, the expenses shall be deductible subject to the following limits and conditions, namely: (a) the deductions allowed under sections 49-55 in computing income from business subject to such limits and conditions; (b) all deductions other than the allowances under the Third Schedule if made by bank transfer.
Part 18: Registration Of Assessee
Section 39 (Computation of special income from rent.)
clause 1: If any part of statutory deduction in accordance with clause (e) of sub-section
clause 1: of section 38 is claimed as unspent, that unspent amount shall be deemed to be special income from rent.
clause 2: Excepting in cases of accounting adjustments, deductions inadmissible under sub-section
clause 2: of section 38 shall be deemed as special income from rent.
clause 3: Any deduction, set-off or carry forward of losses or allowance under the Third Schedule shall not be allowed against any special income from rent and tax shall be charged on such incomes at regular rate. CHAPTER IV INCOME FROM AGRICULTURE
Part 18: Registration Of Assessee
Section 40 (Income from agriculture.)
clause 1: Income earned by a person from activities related to agriculture shall be classified as income from agriculture.
clause 2: 40% (forty percent) of the proceeds from the sale of tea and rubber, produced and processed by any person, shall be deemed to be business income and 60% (sixty percent) shall be deemed to be income from agriculture.
clause 3: Definition of agriculture shall include any kind of horticulture, animal husbandry, aviculture, natural use of land, poultry and fish farms, reptile farms, nurseries, any kind of cultivation on land or in water, egg and milk production, timber, grass and shrubs production, fruit, flower and honey production and seed production.
Part 18: Registration Of Assessee
Section 41 (Special agricultural income.)
clause 1: Without prejudice to the generality of section 40, special agricultural income shall be computed in accordance with the provisions of this section.
clause 2: If an asset is sold in any income year after being used by the assessee for agricultural purposes under section 40, it shall be computed as follows, namely: Serial No. Sales Proceeds The amount of money deemed as income
clause 3: 1. If the sale proceeds 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 classifiable under the head 'Capital Gain'; The amount equal to of B-C shall be deemed to be income of the concerned assessee for that income year classifiable under the head 'Income from Agriculture; 2. If the sale proceeds does not exceed the acquisition value of the asset, but exceeds written down value The amount equal to A-C shall be deemed as income of the concerned assessee for that income year classifiable under the head 'Income from Agriculture'.
clause 3: Where any amount received as insurance, salvage or compensation any income year in respect of any asset which having been used by the assessee for agricultural purpose is discarded, demolished or destroyed and the amount of such moneys exceed the written down value of such asset, the said amount shall be included under the head income from agriculture as described below, namely: Serial No. Sales proceeds The amount of money deemed as 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 classifiable under the head 'Capital Gain'; The amount equal to B-C shall be deemed as income of the concerned assessee for that income year classifiable under the head 'Income from agriculture'. 2. If the amount for insurance, salvage or compensation amount does not exceed acquisition value of the asset, but exceeds the written down value The amount equal to A-C shall be deemed as income of the concerned assessee for that income year classifiable under the head 'Income from Agriculture'.
clause 4: For the purposes of this section, A = the sale proceeds of the asset or, as the case may be, the proceeds of insurance, salvage or compensation against the asset, B = acquisition value of assets, and C= the written down value of asset after allowing for depreciation under Third Schedule.
clause 5: As per column
clause 2: of the tables in sub-sections
clause 2: and
clause 3: , if the difference between the sale proceeds or, as the case may be, the amount received on account of insurance, salvage or compensation and the written down value of the asset, is negative, the amount shall be deemed to be spent on Income from Agriculture, and shall be included under the allowable general deduction.
Part 18: Registration Of Assessee
Section 42 (General deductions allowable in computation of income under the head income from agriculture.)
clause 1: Subject to this Act, in computing the taxable income of a person under the head income from agriculture in any given income year, the amount expended by the assessee in that year, other than capital expenditure or personal expenditure, wholly and exclusively for the purpose of agriculture shall be allowable as a deduction, and the following deductions shall be treated as general deductions, namely: (a) any tax, land development tax or rent paid in respect of the land or grounds used for agricultural purposes;(b) rent payable for land or grounds used for agricultural purposes, development and maintenance expenses, and cultivation expenses; (c) interest or profit payable on loans taken for agricultural purposes; (d) expenses related to repair and maintenance of machinery and equipment used in agriculture and expenses relating to rearing of cattle, processing or transportation for the purpose of cultivation; (e) insurance premiums payable for compensation of land or grounds or for the purpose of compensation of crops or produce produced from the land or grounds or for the purpose of security in the rearing of cattle; (f) expenses incurred for protection of agriculture from natural calamities or any other type of damage; (g) the following expenses subject to the limits prescribed in the Third Schedule (i) depreciation of the assets used by the assessee for his agriculture; (ii) amortization of intangible assets used in his agricultural related activities; (h) in cases where the animal used in the assessee's agricultural work has died or become permanently disabled, the difference between the actual purchase price of the animal and, as the case may be, the proceeds from the sale of the animal or of its meat; (i) any expenditure incurred in connection with a foreign tour as a member of any delegation on agriculture sponsored by the Government, which is not capital in nature; (j) any expenditure incurred on providing training to citizens of Bangladesh on matters related to any such scheme as approved by the Board; (k) expenditure incurred in conducting scientific research related to agriculture or expenditure incurred in conducting such scientific research whereby the research is conducted in Bangladesh wholly and exclusively for the purpose of agricultural development of the assesse.
clause 2: Only the portion of any expenditure which relates to income from agriculture under this section shall be deemed to be allowable expenditure.
Part 18: Registration Of Assessee
Section 43 (Computation of special deductions in case of non-maintenance of books of accounts.)
clause 1: Where it appears that, (a) the assessee is not applying regular accounting procedures; (b) the assessee is applying any such procedure on the basis of which it appears to the Deputy Commissioner of Taxes that it is not possible to arrive at a conclusion as to the income of the assessee; (c) the assessee has failed to maintain records of accounts or transactions; or (d) the accounts or records of transactions maintained by the assessee are not verifiable, in that case, notwithstanding anything contained in any other section, 60% (sixty percent) of the market value of the agricultural produce shall be deemed to be allowable expenditure.
clause 2: This section shall not apply in cases where the income from agriculture is derived by the owner of the land through adhi, barga, bhaga or share-basis.
Part V: Computation Of Income
Chapter I: Total Income
Section 44 (Deduction not admissible in certain cases.)
clause 1: Deduction claimed under this Chapter shall not be allowed unless the provisions of Part VII are complied with in all such cases where deduction or collection of tax at source is applicable.
clause 2: The provisions set out in section 55 shall apply as though the provisions were related to this Chapter. CHAPTER V INCOME FROM BUSINESS
Part V: Computation Of Income
Chapter I: Total Income
Section 47 (Calculation of profit of certain businesses.)
clause 2: of the table below shall be computed in accordance with the provisions of the Schedule mentioned in column
clause 3: of the table, namely: Table Serial No Business Schedule
clause 3: 1. Insurance business Fourth Schedule 2. Extraction and exploration of natural gas, petroleum or other minerals Fifth Schedule
Part V: Computation Of Income
Chapter I: Total Income
Section 49 (General allowable deductions in computing income from business.)
clause 1: of section 234 of the Labour Act, 2006 and Labour Welfare Foundation Fund established under section 14 of the Bangladesh Workers Welfare Foundation Act, 2006 (Act XXV of 2006)]; (v) other expenses incurred wholly and exclusively for the purpose of business.
Part V: Computation Of Income
Chapter I: Total Income
Section 50 (Special allowable deductions in computing income from business.)
clause 1: The following expenses shall be admissible subject to the limits and conditions prescribed in the Third Schedule, namely: (a) general depreciation allowance; (b) initial depreciation allowance; (c) accelerated depreciation allowance; (d) amortization allowance; and (e) research and development expenses.
clause 2: If an asset mentioned in the Third Schedule is sold in any income year and the proceeds are less than the written down value, subject to the deduction claimed by the assessee, the equal amount of difference between the written down value and the sale proceeds shall be admissible as deduction.
clause 3: Any bad debt expenses approved under section 51 shall be deducted in computation of Income from Business.
clause 4: Any interest expenses allowed under sections 52 and 53 shall be deducted in computing income from business.
Part V: Computation Of Income
Chapter I: Total Income
Section 51 (Approval of bad debt expense.)
clause 1: Bad debt expense shall be allowable in cases other than banks and 2[finance companies], if (a) a bad debt or part thereof is established as irrecoverable and is written off in the books of account of the business; 1 Clause (u) was substituted by section 24 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 2 The words finance companies 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.(b) all reasonable steps have been taken for the recovery of the amount recognized as bad debt prior to being written off; (c) a bad debt or part thereof is treated as an income in determining the income in an income year.
clause 2: Bad debt expense shall be allowable in the case of banks and 1[finance company], if (a) a bad debt or part thereof is established as irrecoverable by applicable banks and 2[finance company] in Bangladesh in accordance with International Accounting Standards (IAS) and is written off in the books of account of the business; (b) all reasonable steps have been taken for the recovery of the amount recognized as bad debt prior to being written off; (c) a bad debt or part of a bad debt is treated as an income in determining the income in an income year.
Part V: Computation Of Income
Chapter I: Total Income
Section 52 (Special deduction computation for interest or profit.)
clause 1: Any payment of interest or, as the case may be, payment of any share of profit, on any capital borrowed for the purpose of business shall be allowable as business expenditure.
clause 2: If it is found that any part of the money borrowed has been used for purposes other than the business or any part of the assets acquired by the money borrowed has been transferred elsewhere outside the business wherein investment is not the business of the transferor, in such cases, the interest or share of profit expense shall be allowed at the proportional rate of the portion of the said money or asset used in the business.
Part V: Computation Of Income
Chapter I: Total Income
Section 53 (Special limits on allowance of interest.)
clause 1: Notwithstanding anything contained in any other provisions of this Act, subject to the provisions of sub-section
clause 2: , any interest paid to an associated enterprise as defined in section 233 in any assessment year by a resident other than a bank and 3[finance company] shall be allowed as expense in accordance with the procedure and limit prescribed by the Board in this regard.
clause 2: Notwithstanding anything contained in sub-section
clause 1: , this section shall not apply if the amount of interest paid in any income year does not exceed Taka 15 (fifteen) lakh. 1 The 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. 2 The 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. 3 The 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. 10508
Part V: Computation Of Income
Chapter I: Total Income
Section 54 (General conditions for allowing deductions.)
clause 1: If in any income year any such expenditure is allowed as deduction under this chapter which represents an asset in whole or in part, no further deduction shall be allowable in respect of that asset in the same income year.
clause 2: In allowing any expenditure under section 49, the commercial reasonableness of the expenditure concerned shall be considered and the following factors shall be taken into account in considering the commercial feasibility, namely: (a) if the expenditure incurred is for the purpose of earning income from the business; (b) if the expenditure incurred is revenue in nature; and (c) if the expenditure incurred is reasonable in the circumstances.
Part V: Computation Of Income
Chapter I: Total Income
Section 56 (Computation of special business income.)
clause 1: Notwithstanding anything contained in any other provision of this Act, all expenditure disallowed under clauses other than 3[clauses (d)-(j), (q), (s) and (t)] of section 55 shall be deemed to be special business income.
clause 2: Any expenditure, set-off or carry forward of losses or allowance under the Third Schedule shall not be allowed against any special business income or special areas of income from business under any provision of this chapter and tax shall be charged on such incomes at regular rate. 1 The word assets was substituted for the words land or premises by section 25(b) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 2 Clause (u) was substituted by section 25(c) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 3 The words, letters and brackets clauses (d)-(j), (q), (s) and (t) were substituted for the words, letters and brackets clause (s) by section 26 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 10512 CHAPTER VI CAPITAL GAINS
Part V: Computation Of Income
Chapter I: Total Income
Section 58 (Computation of capital gains.)
clause 1: Subject to the provisions of this Act, the capital gains of a person shall be the difference between the sale or transfer price of an asset in the open market and the cost of acquisition of that asset.
clause 2: For the purpose of this section, (a) open market sale or transfer price of an asset means the higher of A and B, where A = amount received or accrued from transfer of capital assets; and B = fair market value of the capital asset on the date of transfer; (b) cost of acquisition of an asset shall be (i) the sum of the following costs
clause 1: any such expenses which are solely related to the transfer of ownership of said asset;
clause 2: the purchase price of the asset; and
clause 3: the cost of development of such asset, if any, other than the cost allowed under section 38, 42, 49, 50 or 64; (ii) where the transferor has acquired the said asset as follows
clause 1: under any gift, bequest or will;
clause 2: by succession, inheritance or devolution;
clause 3: under a transfer on a revocable or irrevocable trust;
clause 4: by any distribution of capital assets on the liquidation of a company; or
clause 5: by distribution of capital assets in case of partition of any firm or association of person or Hindu undivided family, in that case, the fair market value on the date of ownership of the asset by the transferee shall be deemed to be the cost of acquisition.
Part V: Computation Of Income
Chapter I: Total Income
Section 61 (Other matters in determination of capital gains.)
clause 1: Where the fair market value of an asset exceeds the full value of the consideration declared by the assessee by an amount greater than 15% (fifteen percent) of the value, the fair market value of the capital asset shall be determined, with the previous approval of the Inspecting Joint Commissioner, by the Deputy Commissioner of Taxes.
clause 2: Where the fair market value of an asset exceeds the declared acquisition value thereof by more than 25% (twenty five percent), the Deputy Commissioner of Taxes may, in the manner prescribed by the Board, offer to buy the said asset at the said declared acquisition value.
clause 3: Where a capital gain arises from the transfer of all capital assets of a partnership firm to a new company registered under the Companies Act, 1994 (Act No. XVIII of 1994), shall be exempt from tax if the consideration from the transfer of all assets is invested in the equity of the new company. CHAPTER VII INCOME FROM FINANCIAL ASSETS
Part V: Computation Of Income
Chapter I: Total Income
Section 62 (Income from financial assets.)
clause 1: The following income of a person shall be classified and computed under the head Income from financial assets, namely: a. interest, profit or discount on securities issued or approved by the Government;(b) interest, profits or discount of any other types of debentures or other securities by a local authority or a company; (c) interest or profit due from the following sources, namely: (i) any amount, called by whatever name, deposited in a bank or 1[finance company]; (ii) any financial 2[asset,] product or scheme; (d) dividend.
clause 2: Capital gain derived from transfer of financial assets shall not be included in the category of Income from financial assets.
Part V: Computation Of Income
Chapter I: Total Income
Section 68 (Allowable deductions in computing income from other sources.)
clause 1: Subject to the provisions of this Act, in computing the income of a person under Income from other sources in any income year, such expenditure, not being in the nature of capital expenditure or personal expenses of the person, incurred solely for the purpose of making or earning the relevant income shall be allowable.
clause 2: Except sub-sections
clause 5: and
clause 6: of section 67, no expenditure of any kind shall be allowed in computing income under other sub-sections of section 67.
clause 3: In allowing expenditure under sub-section
clause 1: , the reasonableness of such expenditure shall be considered.
Part V: Computation Of Income
Chapter I: Total Income
Section 69 (Disallowance of deduction in certain cases.)
clause 1: Expenditure allowed in whole or in part against any asset under this Chapter in any income year shall not be allowed again against the same asset.
clause 2: The provisions of section 55 relating to limitation of admissible expenditure shall apply to such cases in this Chapter. CHAPTER IX SET OFF AND CARRY FORWARD OF LOSSES
Part V: Computation Of Income
Chapter I: Total Income
Section 70 (Set off and carry forward of losses.)
clause 1: Subject to the provisions of sub-section
clause 2: , the loss determined in respect of any head of any assessment year may be set off against the income of other heads of income in that assessment year.
clause 2: Any loss as mentioned in the table below shall not be set off against income under any head or source other than income under that head or source, namely: Table Serial no: Source or Head of income To be set off
clause 3: 1. Capital loss Set off may only be made with capital gain. 2. Business loss Set off may only be made with income from business. 3. Loss from speculative business Set off may only be made with income from speculative business 4. Loss from tobacco products Set off may be made only with income from manufacturing of tobacco products.
clause 3: Loss from any source, income of which is exempted from tax or taxed at a reduced rate or subject to minimum tax 1[under sub-section
clause 2: of section 163] may not be set off or carried forward.
clause 4: Loss of a firm or association of persons shall be set off only against the assessed income of the firm or association of persons and not against the income of any partner of the firm or member of the association of persons.
clause 5: If the loss of any head of income in an assessment year cannot be fully set off with the income of any other source or head of income of that assessment year, such unadjusted loss may be carried forward to successive 6 (six) assessment years for setting off.
clause 6: Subject to the Eight Schedule, where any person carrying on any business or profession has been succeeded otherwise than by inheritance, the successor shall not be entitled to set off or carry forward the loss of the predecessor against any of his own income.