At present, direct taxes in Bangladesh is governed by Bangladesh Income Tax Ordinance, 1984. Since than, tax law has been regularly updated. In 2013, Government of Bangladesh has initiated steps to modernize the tax law by proposing ‘Direct Taxes Code, 2013’. However, it has not been in made effective yet. Till Now the the income taxation is governed by The Income Taxes Ordinance, 1994 and related Rules & SROs. Income Tax Ordinance (ITO) is divided into several chapters for easy understanding and application of the law. All the sections and chapters are listed below:
| CHAPTER I PRELIMINARY |
||
| 1. Short title and commencement | ||
| 2. Definitions | ||
| CHAPTER II ADMINISTRATION |
||
| 3. Income-tax authorities | ||
| 4. Appointment of income-tax authorities | ||
| 4A. Delegation of powers | ||
| 5. Subordination and control of income-tax authorities | ||
| 6. Jurisdiction of income-tax authorities | ||
| 7. Exercise of jurisdiction by successor | ||
| 8. Officers, etc. to follow instructions of the Board | ||
| 9. Guidance to the Deputy Commissioner of Taxes, etc. | ||
| 10. Exercise of assessment functions by the Inspecting Joint Commissioners [and the Inspecting Additional Commissioners] | ||
| CHAPTER III TAXES APPELLATE TRIBUNAL |
||
| 11. Establishment of Appellate Tribunal | ||
| 12. Exercise of power of the Tribunal by Benches | ||
| 13. Decision of Bench | ||
| 14. Exercise of power by one member | ||
| 15. Regulation of procedure | ||
| CHAPTER IV CHARGE OF INCOME TAX |
||
| 16. Charge of income-tax | ||
| 16A. Charge of surcharge | ||
| 16B. Charge of additional tax | ||
| 16BB. Charge of additional amount, etc | ||
| 16BBB. Charge of minimum tax | ||
| 16C. [Omitted] | ||
| 16CC. [Omitted] | ||
| 16CCC. [Omitted] | ||
| 16D. [Omitted] | ||
| 16E. [Omited] | ||
| 17. Scope of the total income | ||
| 18. Income deemed to accrue or arise in Bangladesh | ||
| 19. Un-explained investments, etc., deemed to be income | ||
| 19A. [Omitted] | ||
| 19AA. [Omitted] | ||
| 19AAA. [Omitted] | ||
| 19B [Omitted] | ||
| 19BB [Omitted] | ||
| 19BBB [Omitted] | ||
| 19BBBB[Omitted] | ||
| 19BBBBB. Special tax treatment in respect of investment in residential building and apartment. | ||
| 19C. Special tax treatment in respect of investment in the purchase of bond under Bangladesh Infrastructure Finance Fund | ||
| 19D [Omitted] | ||
| 19E. Voluntary disclosure of income. | ||
| CHAPTER V COMPUTATION OF INCOME |
||
| 20. Heads of income | ||
| 21. Salaries | ||
| 22. Interest on securities | ||
| 23. Deductions from interest on securities | ||
| 24. Income from house property | ||
| 25. Deductions from income from house property | ||
| 26. Agricultural income | ||
| 27. Deductions from agricultural income | ||
| 28. Income from business or profession | ||
| 29. Deductions from income from business or profession | ||
| 30. Deduction not admissible in certain circumstances | ||
| 30A. Provision for disallowance | ||
| 31. Capital gains | ||
| 32. Computation of capital gains | ||
| 33. Income from other sources | ||
| 34. Deductions from income from other sources | ||
| 35. Method of accounting | ||
| 36. Allocation of income from royalties, etc., for literary works, etc. | ||
| 37. Set off of losses | ||
| 38. Carry forward of business losses | ||
| 39. Carry forward of loss in speculation business | ||
| 40. Carry forward of loss under the head “Capital gains” | ||
| 41. Carry forward of loss under the head “Agricultural income” | ||
| 42. Conditions and limitations of carrying forward of loss, etc. | ||
| 43. Computation of total income | ||
| CHAPTER VI EXEMPTIONS AND ALLOWANCES |
||
| 44. Exemption | ||
| 45. Exemption of income of an industrial undertaking | ||
| 46. Exemption of income of a tourist industry | ||
| 46A. Exemption from tax of newly established industrial undertakings, etc. in certain cases | ||
| 46B. Exemption from tax of newly established industrial undertakings set up between the period of July, 2011 and [June, [2019]],etc, in certain cases. | ||
| 46C. Exemption from tax of newly established physical infrastructure facility set up between the period of July, 2011 and[June,[2019]], etc, in certain cases. | ||
| 47. Exemption of income of co-operative societies | ||
| CHAPTER VII PAYMENT OF TAX BEFORE ASSESSMENT |
||
| 48. Deduction at source and advance payment of tax | ||
| 49. Income subject to deduction at source | ||
| 50. Deduction at source from salaries | ||
| 50A. Deduction at source from discount on the real value of Bangladesh Bank bills | ||
| 50B. Deduction of tax from payment of remuneration to Members of Parliament | ||
| 51. Deduction at source from interest or profit on securities | ||
| 51A. [Omitted] | ||
| 52. Deduction from payment to contractors, etc. | ||
| 52A. Deduction from payment of royalties etc | ||
| 52AA. Deduction from the payment of certain services | ||
| 52AAA. Collection of tax from clearing and forwarding agents | ||
| 52B. Collection of tax from Cigarette manufacturers | ||
| 52C. Deduction at source from compensation against acquisition of property | ||
| 52D. Deduction at source from interest on saving instruments | ||
| 52DD. Deduction at source from payment to a beneficicary of workers’ participation fund | ||
| 52E. [Omitted] | ||
| 52F. Collection of tax from brick manufacturers | ||
| 52G. [Omitted] | ||
| 52H. [Omitted] | ||
| 52I. Deduction from the commission of letter of credit | ||
| 52J. [Omitted] | ||
| 52JJ. Collection of tax from travel agent | ||
| 52K. Collection of tax by City Corporation or Pourashava at the time of renewal of trade licence. | ||
| 52L. [Omitted] | ||
| 52M. Collection of tax from freight forward agency commission. | ||
| 52N. Collection of tax on account of rental power. | ||
| 52O. Collection of tax from a foreign technician serving in a diamond cutting industry | ||
| 52P. Deduction of tax for services from convention hall, conference centre, etc. | ||
| 52Q. Deduction of tax from resident for any income in connection with any service provided to any foreign person. | ||
| 52R. Deduction of tax from receipts in respect of international phone call. | ||
| 52S. Collection of tax from manufacturer of soft drink[,etc]. | ||
| 52T. Deduction of tax from any payment in excess of premium paid on life insurance policy. | ||
| 52U. Deduction from payment on account of local letter of credit. | ||
| 52V. Deduction from payment by cellular mobile phone operator. | ||
| 53. Collection of tax from importers [***] | ||
| 53A. Deduction at source from income from house property | ||
| 53AA. Collection of tax from shipping business of a resident | ||
| 53B. Deduction of tax from income derived on account of export of manpower | ||
| 53BB. Collection of tax from export of certain items | ||
| 53BBB. Collection of tax from Member of Stock Exchanges | ||
| 53BBBB. Collection of tax from export of any goods except certain items. | ||
| 53C. Collection of tax on sale price of goods or property sold by public auction | ||
| 53CC. [Omitted] | ||
| 53CCC. Deduction or collection of tax at source from courier business of a non-resident | ||
| 53D. Deduction from payment to actors, actresses, producers, etc. | ||
| 53DD. [Omitted] | ||
| 53DDD. Deduction of tax at source from export cash subsidy. | ||
| 53E. Deduction or collection at source from commission, discount, fees, etc. | ||
| 53EE. Deduction of tax from commission or remuneration paid to agent of foreign buyer | ||
| 53F. Deduction at source from interest on saving deposits and fixed deposits, etc. | ||
| 53FF. Collection of tax from persons engaged in real estate or land development business | ||
| 53G. Deduction at source from insurance commission | ||
| 53GG. Deduction at source from fees, etc. of Surveyors of general insurance company | ||
| 53GGG. [Omitted] | ||
| 53H. Collection of tax on transfer, etc. of property | ||
| 53HH. Collection of tax from lease of property. | ||
| 53I. Deduction at source from interest on deposit of Post Office Savings Bank Account. | ||
| 53J. Deduction at source from rental value of vacant land or plant or machinery. | ||
| 53K. Deduction of tax from advertising bill of newspaper or magazine or private television channel [or private radio station, [etc]]. | ||
| 53L. [Omited] | ||
| 53M. Collection of tax from transfer of securities or mutual fund units by sponsor shareholders of a company etc. | ||
| 53N. Collection of tax from transfer of share of shareholder of Stock Exchanges. | ||
| 53O. [Omitted] | ||
| 53P. Deduction of tax from any sum paid by real estate developer to land owner | ||
| 54. Deduction of tax from dividends | ||
| 55. Deduction from income from lottery, etc. | ||
| 56. Deduction from income of non-residents | ||
| 57. Consequences of failure to deduct, collect, etc | ||
| 57A. Consequences of the issuance of certificate of tax deduction or collection without actual deduction, collection or payment | ||
| 58. Certificate of deduction, etc. of tax | ||
| 59. Payment to Government of tax deducted | ||
| 60. Unauthorised deduction prohibited | ||
| 61. Power to levy tax without prejudice to other mode of recovery | ||
| 62. Credit of tax deducted or collected at source | ||
| 62A. [Omitted] | ||
| 63. Payment of tax where no deduction is made | ||
| 64. Advance payment of tax | ||
| 65. Computation of advance tax | ||
| 66. Instalments of advance tax | ||
| 67. Estimate of advance tax | ||
| 68. Advance payment of tax by new assessees | ||
| 68A. Advance tax on certain income | ||
| 68B. Advance tax for the owners of private motor car | ||
| 69. Failure to pay instalments of advance tax | ||
| 70. Levy of interest for failure to pay advance tax | ||
| 71. Credit of advance tax | ||
| 72. Interest payable by Government on excess payment of advance tax | ||
| 73. Interest payable by the assessee on deficiency in payment of advance tax | ||
| 73A. Delay Interest for not filing return on or before the Tax Day | ||
| 74. Payment of tax on the basis of return | ||
| CHAPTER VIII RETURN AND STATEMENT |
||
| 75. Return of income | ||
| 75A. Return of withholding tax | ||
| 75AA. Audit of the return of withholding tax | ||
| 75B. Obligation to furnish Annual Information Return. | ||
| 75C. Concurrent jurisdiction. | ||
| 76. [Omitted] | ||
| 77. Notice of filing return | ||
| 78. Filing of revised return | ||
| 79. Production of accounts and documents, etc | ||
| 80. Statements of assets, liabilities and life style | ||
| CHAPTER IX ASSESSMENT |
||
| 81. Provisional assessment | ||
| 82. Assessment on correct return. | ||
| 82A. Assessment under simplified procedure | ||
| 82B [Omitted] | ||
| 82BB. Universal Self Assessment | ||
| 82C. Minimum Tax | ||
| 82D. Spot assessment | ||
| 83. Assessment after hearing | ||
| 83A[Omitted] | ||
| 83AA [Omitted] | ||
| 83AAA. Assessment on the basis of report of a chartered accountant | ||
| 84. Best judgment assessment | ||
| 84A. [Omitted] | ||
| 85. Special provisions regarding assessment of firms | ||
| 86. Assessment in case of change in the constitution of a firm | ||
| 87. Assessment in case of constitution of new successor firm | ||
| 88. Assessment in case of succession to business otherwise than on death | ||
| 89. Assessment in case of discontinued business | ||
| 90. Assessment in case of partition of a Hindu undivided family | ||
| 91. Assessment in case of persons leaving Bangladesh | ||
| 92. Assessment in the case of income of a deceased person | ||
| 93. Tax, etc. escaping payment | ||
| 94. Limitation for assessment | ||
| 94A. [Omitted] | ||
| CHAPTER X LIABILITY IN SPECIAL CASES |
||
| 95. Liability of representative in certain cases | ||
| 96. Persons to be treated as agent | ||
| 97. Right of representative to recover tax paid | ||
| 98. Liability of firm or association for unrecoverable tax due from partners or members | ||
| 99. Liability of partners, etc., for discontinued business of a firm, etc. | ||
| 100. Liability of directors for unrecoverable tax of private companies | ||
| 101. Liability of liquidator for tax of private companies under liquidation | ||
| 102. Liability to tax in case of shipping business of non-residents | ||
| 103. [Omitted] | ||
| 103A. Liability to tax in case of air transport business of non-residents | ||
| CHAPTER XI SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX |
||
| 104. Avoidance of tax through transactions with non-residents | ||
| 105. Avoidance of tax through transfer of assets | ||
| 106. Avoidance of tax by transactions in securities | ||
| 107. Tax clearance certificate required for persons leaving Bangladesh | ||
| 1CHAPTER XIA Transfer Pricing |
||
| 107A. Definitions. | ||
| 107B. Determination of income from international transaction having regard to arm’s length price. | ||
| 107C. Computation of arm’s length price. | ||
| 107D. Reference to Transfer Pricing Officer. | ||
| 107E. Maintenance and keeping of information, documents and records | ||
| 107EE. Statement of international transactions to be submitted | ||
| 107F. Report from an accountant to be furnished. | ||
| 107G. Penalty for failure to keep, maintain or furnish information, documents or records to the Deputy Commissioner of Taxes. | ||
| 107H. Penalty for failure to comply with the notice or requisition under section 107C. | ||
| 107HH. Penalty for failure to comply with the provision of section 107EE | ||
| 107I. Penalty for failure to furnish report under section 107F. | ||
| 107J. Applicability of this Chapter. | ||
| CHAPTER XII REQUIREMENT OF FURNISHING CERTAIN INFORMATION |
||
| 108. Information regarding payment of salary | ||
| 109. Information regarding Payment of interest | ||
| 110. Information regarding payment of dividend | ||
| CHAPTER XIII [REGISTRATION OF FIRMS-Omitted] |
||
| 111. [Omitted] | ||
| CHAPTER XIV POWERS OF INCOME TAX AUTHORITIES |
||
| 112. Powers under this Chapter not to prejudice other powers | ||
| 113. Power to call for information | ||
| 114. Power to Inspect registers of companies | ||
| 115. Power of survey | ||
| 116. Additional powers of enquiry and production of documents | ||
| 116A. Power of giving order for not removing property | ||
| 117. Power of search and seizure | ||
| 117A. Power to verify deduction or collection of tax | ||
| 118. Retention of seized assets | ||
| 119. Application of retained assets | ||
| 120. Power of Commissioner or Inspecting Joint Commissioner to revise the erroneous order | ||
| 121 [Omitted] | ||
| 121A. Revisional power of Commissioner | ||
| 122. Power to take evidence on oath, etc. | ||
| CHAPTER XV IMPOSITION OF PENALTY |
||
| 123. Penalty for not maintaining accounts in the prescribed manner | ||
| 124. Penalty for failure to file return, etc. | ||
| 124A.Penalty for using fake Tax-payer’s Identification Number | ||
| 124AA. Penalty for failure to verify Taxpayer’s Identification Number, etc | ||
| 125. Failure to pay advance tax, etc. | ||
| 126. Penalty for non-compliance with notice | ||
| 127. Failure to pay tax on the basis of return | ||
| 128. Penalty for concealment of income | ||
| 129. [Omitted] | ||
| 129A. Penalty for incorrect or false audit report by chartered accountant. | ||
| 129B. Penalty for furnishing fake audit report | ||
| 130. Bar to imposition of penalty without hearing | ||
| 131. Previous approval of Inspecting Joint Commissioner for imposing penalty | ||
| 131A. Previous approval of the Board for imposing penalty | ||
| 132. Orders of Appellate Joint Commissioner, etc., to be sent to Deputy Commissioner of Taxes | ||
| 133. Penalty to be without prejudice to other liability | ||
| 133A. Revision of penalty based on the revised amount of income | ||
| CHAPTER XVI RECOVERY OF TAX |
||
| 134. Tax to include penalty, interest, etc. | ||
| 135. Notice of demand | ||
| 136. [Omitted] | ||
| 137. Penalty for default in payment of tax | ||
| 138. Certificate for recovery of tax | ||
| 139. Method of recovery by Tax Recovery Officer | ||
| 140. Power of withdrawal of certificate and stay of proceeding | ||
| 141. Validity of certificate for recovery not open to dispute | ||
| 142. Recovery of tax through Collector of District | ||
| 142A. Recovery of tax through Special Magistrates | ||
| 143. Other modes of recovery | ||
| CHAPTER XVII DOUBLE TAXATION RELIEF |
||
| 144. Agreement to avoid double taxation | ||
| 145. Relief in respect of income arising outside Bangladesh | ||
| CHAPTER XVIII REFUNDS |
||
| 146. Entitlement to refund | ||
| 147. Claim of refund for deceased or disabled persons | ||
| 148. Correctness of assessment, etc., not to be questioned | ||
| 149. Refund on the basis of orders in appeal | ||
| 150. Form of claim and limitation | ||
| 151. Interest on delayed refund | ||
| 152. Adjustment of refund against tax | ||
| CHAPTER XVIIIA [SETTLEMENT OF CASES.- Omitted] |
||
| 152A, 152B, 152C, 152D and 152E. [Omitted] | ||
| 2CHAPTER XVIIIB Alternative Dispute Resolution |
||
| 152F. Alternative Dispute Resolution. | ||
| 152G. Commencement of ADR. | ||
| 152H. Definition | ||
| 152I. Application for alternative resolution of disputes. | ||
| 152II. Stay of proceeding in case of pending appeal or reference at Appellate Tribunal or High Court Division. | ||
| 152J. Eligibility for application for ADR | ||
| 152K. Appointment of Facilitator and his duties and responsibilities. | ||
| 152L. Rights and duties of the assessee for ADR. | ||
| 152M. Nomination and responsibility of the Commissioner’s Representative in ADR. | ||
| 152N. Procedures of disposal by the Alternative Dispute Resolution. | ||
| 152O. Decision of the ADR. | ||
| 152P. Effect of agreement. | ||
| 152Q. Limitation for appeal where agreement is not concluded. | ||
| 152R. Post verification of the agreement. | ||
| 152S. Bar on suit or prosecution. | ||
| CHAPTER XIX APPEAL AND REFERENCE |
||
| 153. Appeal against order of Deputy Commissioner of Taxes [and Inspecting Joint Commissioner] | ||
| 154. Form of appeal and limitation | ||
| 155. Procedure in appeal before the Appellate Joint Commissioner [or the Commission (Appeals)] | ||
| 156. Decision in appeal by the Appellate Joint Commissioner [or the Commission (Appeals)] | ||
| 157. Appeal against order of Tax Recovery Officer | ||
| 158. Appeal to the Appellate Tribunal | ||
| 159. Disposal of appeal by the Appellate Tribunal | ||
| 160. Reference to the High Court Division | ||
| 161. Decision of the High Court Division | ||
| 162. Appeal to the Appellate Division | ||
| CHAPTER XX PROTECTION OF INFORMATION |
||
| 163. Statement, returns, etc., to be confidential | ||
| CHAPTER XXI OFFENCES AND PROSECUTION |
||
| 164. Punishment for non-compliance of certain obligations | ||
| 165. Punishment for false statement in [verifications, etc.] | ||
| 165A. Punishment for improper use of Tax-payer’s Identification Number | ||
| 165AA. Punishment for furnishing fake audit report | ||
| 165B. Punishment for obstructing an income tax authority. | ||
| 165C. Punishment for unauthorised employment | ||
| 166. Punishment for concealment of income, etc. | ||
| 167. Punishment for disposal of property to prevent attachment | ||
| 168. Punishment for disclosure of protected information | ||
| 169. Sanction for prosecution | ||
| 170. Power to compound offences | ||
| 171. Trial by Special Judge | ||
| CHAPTER XXII MISCELLANEOUS |
||
| 172. Relief when salary, etc., is paid in arrear or advance | ||
| 173. Correction of errors | ||
| 173A. Place of assessment | ||
| 174. Appearance by authorised representative | ||
| 175. Tax to be calculated to nearest taka | ||
| 176. Receipts to the given | ||
| 177. Computation of the period of limitation | ||
| 178. Service of notice | ||
| 178A. System generated notice, order, etc | ||
| 178B. Electronic filing, etc | ||
| 179. Certain errors not to vitiate assessment, etc. | ||
| 180. Proceeding against companies under liquidation | ||
| 181. Indemnity | ||
| 182. Bar of suits and prosecution, etc. | ||
| 183. Ordinance to have effect pending legislative provision for charge of tax | ||
| 184. [Omitted] | ||
| 184A. Requirement of twelve-digit Taxpayer’s Identification Number in certain cases | ||
| 184AA. [Twelve-digit] Tax-payer’s identification number (TIN) in certain documents, etc. | ||
| 184B. Tax-payer’s identification number | ||
| 184BB. Tax collection account number | ||
| 184BBB. Unified Taxpayer’s Identification Number (UTIN). | ||
| 184BBBB. Issuance of Temporary Registration Number (TRN). | ||
| 184C. Displaying of [twelve-digit] tax payer’s identification number certificate | ||
| 184D. Reward to officers and employees of the Board and its subordinate income tax offices [* * *] | ||
| 184E. Assistance to income tax authorities | ||
| 184F. Ordinance to override other laws. | ||
| CHAPTER XXIII RULES AND REPEAL |
||
| 185. Power to make rules | ||
| 185A. Power to issue circular, clarification, etc | ||
| 186. Repeal and savings | ||
| 187. Removal of difficulties | ||
| SCHEDULE |