Income Tax Manual Part-II – Rule 31-40

Income Tax Manual Part-II – Contents

31. Computation of income derived from the sale of tea.—

  1. Income derived from the sale of tea grown and manufactured by the seller in Bangladesh shall be computed as if 40% of such income was derived from business and 60% of such income was derived from agriculture:
  2. Provided that in computing, such income from business, an allowance shall be made in respect of the cost of planting bushes in replacement of bushes that have died or become permanently useless in an area already planted, unless such area has previously been abandoned:
  3. Provided further that in computing such income an allowance shall be made in respect of the expenditure incurred in the income year by the asssssee in connection with the development of the new areas for bringing them under tea cultivation

32. Computation of income derived from the sale of rubber. —

  1. Income derived from the sale of rubber grown and manufactured by the seller in Bangladesh shall be computed as if 40% of such income was derived from business and 60% of such income was derived from agriculture.
  2. Provided that in computing such income an allowance shall be made in respect of the expenditure incurred in the income year by the assessee in connection with the development of the new areas for bringing them under rubber cultivation.

33. Valuation of perquisites, allowances benefits.

  1. (1) For the purpose of computing the income chargeable under the head “salary”, the value if perquisites, allowances and benefits includable in the said income shall be determined in accordance with the provision of the rule 33A to rule 33J, whichever is applicable.
  2. (2) For the purpose of determining the value of perquisites, allowances and benefits under sub-rule (1)—
    1. (a) “basic salary” means the pay and allowances payable monthly or otherwise, but does not include–
      1. (i) dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the employee concerned;
      2. (ii) employer’s contribution to a recognized provident fund or a fund to which the Provident Funds Act, 1925 (XIX of 1925), applies and the interest credited on the accumulated balance of and employee in such fund;
      3. (iii) allowances which are exempt are exempt from the payment of tax; and
      4. (iv) allowance. Perquisites. Annuities and benefits referred to in sub-rule (1)
    2. (b) a shareholder, being director of more than one company, shall be entitled to the benefits under rule 33 for one company only.
  3. []Deleted F. A. 2000

33A. House rent allowances receivable in cash.—

  1. Where the house rent allowance is receivable by the employee in cash, the amount, if any by which the house rent allowance so receivable exceeds fifty percent of the basic salary or taka [[25,000] Subs F. A. 2015]Subs F. A. 2013 per month, whichever is less, shall be included in his income.

33B. Rent free accommodation.—

  1. (1) Where the employee is provided with rent free accommodation, the rental value of the accommodation or twenty five percent of the basic salary of the employee, whichever is less, shall be included in his income.
  2. (2) Where the accommodation is provided to the employee at a concessional rate, the difference between the rent actually paid by him and the amount determined to be includable in an employee’s salary under sub-rules (1) shall be added to his income.

33C. Conveyance allowance receivable in cash with no conveyance facility.—

  1. Where no conveyance is provided by the employer and the conveyance allowance is receivable by the employee on cash, the allowance so receivable in excess of Taka [30,000]Subs F. A. 2013 shall be included in his income.

33D. Conveyance provided for personal or private use.—

  1. Where the conveyance is provided by the employer for the use of the employee partly or exclusively for personal or private purposes, there shall be included in the employee’s income, an amount equal to [five per cent]Subs F. A. 2014[or 60,000, whichever is higher,] Added F. A. 2015 of the employee’s basic salary.

33E. Additional conveyance allowance:–

  1. Where any allowance is receivable by an employee in addition to the perquisite mentioned in rule 33D, the whole amount of such allowance plus the amount determined under rule 33D shall be included in his income.

[33F.]Deleted F. A. 2000

33G. Free or concessional passage for travel abroad or within Bangladesh.—

  1. (1) Where free or concessional passage for travel abroad or within Bangladesh is provided by the employer to an employee (including the members of his house-hold and dependants) there shall be included in the income or the employee,-
    1. (i) where the passage is provided in accordance with the terms of employment, an amount equal to the sum by which the cash payments, it any, made by the actual expenditure incurred by the employee; and
    2. (ii) where the passage is not in accordance with the terms of employment, the whole or the amount paid in cash, if any, or it no cash payment is made, the amount which would have been expended by the employee had the free or concessional passage, as the case may be, not been provided by the employer:
    3. Provided that where free concessional passage for travel abroad is availed of by the employee more then once in two years, the whole of the amount paid to him in cash if any, for such additional passage or it no cash payment is made, the amount which would have been expended by him, had the additional passage not been provided by the employer, shall be included in his income.
  2. (2) Where the transport is provide free of cost or at a concessional rat by and undertaking engaged in the transport of passengers or the carriage of goods to any employee of the undertaking (including the members if his household and dependants) in any conveyance owned or chartered by the undertaking for the purpose of the transport of the passengers or carriage of goods, nothing shall be added in his income.

33H. Entertainment allowance.—

  1. Where any amount is payable to the employee by way of entertainment allowance, the whole of the amount so payable shall be included in his income. No addition on this account shall, however, be made if free tea, coffee, beverages or the like thereof are provided at the office premises during the course of word.

[33I. Medical expenses.-

  1. Where any amount is received or receivable by the employee by way of hospitalisation, medical expenses or medical allowance, the amount, if any, so receivable or received exceeds ten per cent of the basic salary or taka [1,20,000] Subs F. A. 2015 annually, whichever is less, shall be included in his income:]Subs F. A. 2014
  2. [Provided that-

  3. (a)medical expenses or medical allowance not exceeding taka ten lakh received or receivable by an employee being a person with disability shall not be included in his total income;
  4. (b)medical expenses reimbursed by an employer to an emplyee, other than an employee who is a shareholer director, for a surgery relating to heart, kidney,eye liver and cancer of the emplyee, shall not be included in the total income of such employee.
  5. ] Added F. A. 2016

33J. Other benefits.—

  1. Where any benefit or annuity not covered by the provisions of rule 33A to rule 33I is provided to the employee, the members of his household or his dependants, there shall be included in his income an amount equal to the amount which would have been expended by the employee in obtaining such benefit or annuity from an independent source on the same or near locality, had it not been so provided, as reduced by the amount, if any, expended wholly, necessary and exclusively in the performance or the duties of the office held by him or actually paid by him in cash.

34. Computation of income of a person residing outside Bangladesh.—

  1. In any ease in which the Deputy Commissioner of Taxes is of the opinion that the actual amount of the income, profits or gains accruing or arising to any person residing out of Bangladesh whether directly or indirectly through or from any business connection in Bangladesh or through or from any property in Bangla­desh or through or from any asset or source of income in Bangladesh or through or from any money lent at interest and brought into Bangladesh in cash or in kind cannot be ascertained, the amount of such income, profits or gains for the purposes of assessment to tax may be calculated on such per­centage of the turnover so accruing or arising as the Deputy Commissioner of Taxes may consider to be reasonable, or on an amount which bears the same proportion to the total profits of the business of such person (such profits being computed in accordance with the provisions of the Ordinance) as the receipts so accruing or arising bear to the total receipts of the business or in such other manner as the Deputy Commissioner of Taxes may deem suitable.

35. Computation of income from transactions with non-residents.—

  1. The profits derived from any business carried on in the manner referred to in section 104 ef the Ordinance, may be determined for the purpose of assessment to tax according to rule 34.

36. Application for refund.—

  1. An application for a refund of tax under section 150 of the Ordinance shall be made in the following form:—
  2. Application for Refund of Income Tax

  3. I,………………………..of……………………..hereby declare that my total income computed in accordance with the provisions of the Income Tax Ordinance, 1984, during the income year ending on relating to the assessment year………………..amounted to taka,………………………..that the total income tax chargeable in respect of such total income is taka……………..and that the total amount of income tax paid or treated as paid under sections 48(2) and 62 is taka……………..
  4. I, therefore, request that a refund of taka……………..may be allowed to me.
  5. ……………………………………

    (Signature)

  6. * Delete whichever description is inappropriate.
  7. Notes :
    1. 1. The application should be accompanied by a return of income in the specified form unless it has already been filed.
    2. 2. Where the application is made in respect of interest on securities, the application shall be accompanied by the certificates required under section 58.
    3. 3. The application for refund shall be made to the Deputy Commissioner of Taxes of the Circle in which the applicant is chargeable directly to tax otherwise to the Deputy Commissioner of Taxes under whose jurisdiction the applicant resides, unless there is a special Refund Circle, in which case the application shall be made to the Deputy Commissioner of Taxes of that Circle.
    4. 4. A non-resident person shall make his application for refund to the Deputy Commissioner of Taxes who has jurisdiction over him. If the non-resident tax­payer is assessed through a statutory agent, the application for refund shall be made to the Deputy Commissioner ef Taxes who has jurisdiction over that statutory agent.
    5. 5. The application may be presented by the applicant in person or through a duly authorised agent or may be sent by registered post.

37. Recognition of association of accountants, registration of income tax practi­tioners, etc., by the Board.—

  1. [(1) The following bodies are recognised by the Board as ssociation of accountants for the purposes of section 174(2)(e) of the Ordinance:
    1. (a) Institute of Chartered Accountants of Bangladesh.
    2. (b) Institute of Cost and Management Accountants of Bangladesh.
    3. ]Subs F. A. 2015

  2. (2) For registration of a person as incom* tax practitioner by the Board under section 174(2)(f) of the Ordinance, the person seeldng registration shall have any of the following qualifications, namely:—
    1. (a) any person who has passed any of the following accountancy examina­tions:—
      1. []Deleted F. A. 2001
      2. (ii) The First Examination conducted by the Government under the Auditor’s Certificate Rules, 1950;
      3. []Deleted F. A. 2001
      4. (iv) Intermediate Examination conducted by the Institute of Chartered Accountants of Bangladesh constituted under the Bangladesh Chartered Accountants Order, 1973;
      5. (v) Examination conducted by the Institute of Cost and Management Accountants of Bangladesh for granting membership of the Institute constituted under the Cost and Management Accountants Ordinance, 1977;
      6. (vi) Final Examination conducted by the Association of Certified and Corporate Accountants, London
      7. []Deleted F. A. 2001
    2. (b) any person has any of the following educational qualifications, namely:—
    3. A degree in Law, a degree in Commerce with accounting as one of the subjects or part of a subject, whether compulsory or optional, or a degree or diploma in Banking including Higher Auditing conferred by any of the following Universities, namely :—
      1. (i) any University incorporated by any law for the time being in force in Bangladesh, Pakistan and India;
      2. (ii) other Foreign Universities, namely, Rangoon University, the Univer­sities of Birmingham, Bristol, Cambridge, Durban, Leeds, Liverpool, London, Manchester, Oxford, Reading, Sheffield, Wales, Aberdeen, Edinburgh, Glasgow, St. Andrews, Dublin (Trinity College) and Queen’s University, Belfast; and
    4. (c) any person who has retired after putting in satisfactory service in the Taxes Department and has for a period of not less than [seven years]Subs F. A. 2014 served in a post or posts not inferior to that of Deputy Commissioner-of Taxes or has resigned from the services of the Taxes Department after putting in satisfactory service for not less than seven years in a post not inferior to that of a Deputy Commissioner of Taxes and such resignation has been accepted by the Government.
  3. (3) The following procedure shall be followed for registration of a person as an income tax practitioner under section 174(2)(f)of the Ordinance, namely :—
    1. (a) the person shall make an application to the Board setting out the fact or facts by virtue of which he claims to be qualified under sub-rule (2) and, unless he is a person qualified as an exemployee of the Taxes Department his application shall be accompanied by a fee of [taka three hundred]Subs. F. A. 2011 only;
    2. (b) he shall furnish such particulars and such evidence as the Board may require in order to determine whether he is qualified as aforesaid;
    3. [(c) the applicant, not being a person referred to in clause (c) of sub-rule(2),-
      1. (i) shall have to successfully appear in the written examinations conducted by the Board;
      2. (ii) successful applicant in the wtitten examinations shall have to appear in aviva-voce examinations conducted by the Board; and
      3. (iii)successful applicant of the viva-voce examinations shall have to undergo a training programme conducted by the Board or any authority authorised by the Board in this behalf;]Subs. by S.R.O. No. 232/F.A. 2011/05-07-2011
    4. [(d) if the Board is satisfied that the applicant is qualified as aforesaid, and has passed the viva voce examination conducted under clause (c), it shall cause his name to be entered in the register maintained for the purpose in the Board’s Office and the fact of such entry shall be communicated to him, to the Commissioners and to the Taxes Appellate Tribunal.]Subs. by S.R.O. No. 232/F.A. 2011/05-07-2011
  4. (4) Notwithstanding anything contained in this rule a legal practitioner entitled to practice in a Civil Court in Bangladesh shall be deemed to have been registered as income tax practitioner by the Board in accordance with the provisions under section 174(2)(f) of the ordinance.

37A. Form for publishing list of highest taxpayers.—

  1. The Board may, at any time, with the prior consent of the concerned taxpayers, publish a list of highest tax payers in respect of any financial year in the following form:
  2. List of highest taxpayers in respect of financial year…………….
  3. a. Individuals
Name and address of the taxpayers. Taxpayer’s identification number (TIN) Amount of tax paid
1 2
  1. 1.
  2. 2.
  3. b. Other than individuals (Companies, firms, etc.)
Name and Address of the taxpayers Status Taxpayer’s indentification number (TIN) Amount of Tax paid
1 2 3 4
  1. 1.
  2. 2.
  3. Note: The list may contain any number of taxpayers in either group as the Board may deem fit.

[38.]Deleted F. A. 2008

[38A.]Deleted F. A. 1998

38B. Procedure for spot assessment.—

  1. (1) An assessee, referred to in section 82D of the Ordinance, claiming adjustment for any tax deducted or collected under chapter VII of the Ordinance or having wholesale business or having initial capital investment exceeding [taka fifteen lac]Subs F. A. 2013 shall not be eligible for assessment under that section.
  2. (2) The Deputy Commissioner of Taxes, with the prior approval of the Inspection Additional Commissioner of Taxes or Inspection Joint Commissioner of Taxes, shall chalk out a programme to visit any shopping centre or commercial market or an area where such establishments are located and accordingly visit such centre, market or area and fix the tax or an assessee referred to in section 82D of the Ordinance for any year at the following rates, namely:-
  3. [(a) Where an assessee carrying on business-

Initial capital investment to be shown

Rate of
Tax(Tk)
Applicability
Upto Tk 6 lakh 3,000/- For the assessee not located under any city corporation or paurashva of district headquarters;
Upto Tk 7 lakh 3,500/- For the assessee located at paurashava in district headquars and other area excluding city corporation;
Upto Tk 8 lakh 4,000/- For assessee of any area;
Upto Tk 10 lakh 5,000/- For assessee of any area;
Upto Tk 15 lakh 10,000/- For assessee of any area;
  1. (b) Where an assessee carrying on profession as a Lawyer or Doctor-

Length of profesison

Rate of
Tax(Tk)

Applicability

Upto 3 years 3,000/- For the assessee not located under
any city corporation or paurashava of district headquarters;
Upto 4 years 3,500/- For the assessee located at
Paurashava in district headquarters
and other area excluding city corporation;
Upto 5 years 4,000/- For assessee of any area;
Upto 10 years 5,000/- For assessee of any area.;

] Subs F. A. 2016

39. Computation of income of a contractor, etc., of an oil company residing out of Bangladesh.—

  1. (1) Any person who resides out of Bangladesh and carries on business in Bangladesh in any year under an agreement as a extractor to an oil company or as a sub-contractor to the contractor to an oil company may exercise an option in writing before the Deputy Commissioner of Taxes for ascertainment, under this rule, “of his income, profits and gains from the operation of drilling of oil, geophysical survey, marine seismic survey, shallow water seismic survey and other activities relating to petroleum operations, in which case, his income, profits and gains derived from such operations shall, subject to the provision of this rule, be deemed to be an amount equivalent to [fifteen percent]Subs F. A. 2014, of the gross earnings from such operations;
  2. Provided that such option shall be exercised before the thirtieth day of September of the year of asessment in which such person is assessable for the first time in Bangladesh:
  3. Provided further that the option once exercised shall be treated as final and shall be applicable to all assessments thereafter.
  4. (2) For the purposes of this rule,—
    1. (a) the expression “income, profits and gains” shall mean the net income profits and gains determined after all expenses and allowances, including depreciation, having already been considered and allowed for the pur­poses of sections 28, 29 and 30 of the Ordinance;
    2. (b) the expression “gross earnings” shall include the total value of all fees, moneys, income, compensations or reimbursable costs as stipulated in the agreement with the oil company, or in the agreement with the contractor to the oil company, whether in cash or in kind and whe­ther received or not, derived from the operations referred to in sub-rule (1) by the person but excluding the amount of tax, if any, paid or payable on behalf of the said person, as reduced by the following amounts—
      1. (i) amount constituting compensations or reimbursements exclusively for expenditures effected by the said person for the purchase of equipment’s for the oil company, which are, in fact, not his responsibility ; and
      2. (ii) amounts constituting compensations or reimbursements exclusively for expenditures effected by the said person for the purpose of transporting or moving drilling and other equipments into and out of Bangladesh ;[]Deleted F. A. 2014
    3. (c) the expression “oil company” shall mean a concern engaged in petro­leum operations in Bangladesh for the exploration and development of oil and gas[; and]Added F. A. 2014
    4. [(d) The expression “petroleum operation” shall mean-
      1. (i) activities for the purpose of anticipation, exploration, development or exploitation of petroleum,
      2. (ii) construction, installation or operation of any structure, facilities or installation for the development, exploitation and export of petroleum, or
      3. (iii) decommissioning or removal of any such structures, facilities or installations.]Added F. A. 2014

40. Form of application for accelerated depreciation.—

  1. (1) The application for accelerated depreciation referred to in paragraph 7(2)(d) of the Third Schedule to the Ordinance shall be made and verified in the following form :—
  2. Form of application for accelerated depreciation under paragraph 7(2)(d) of the Third Schedule to the Income Tax Ordinance, 1984.

  3. Part A-Particulars–
    1. (i) Name of the company :
    2. (ii) Location of its registered office (with full address) :
    3. (iii) Location of the industrial underta­king (name, place and district where it has been set up to be given):
    4. (iv) Commissioner of Taxes and Deputy Commissioner of Taxes under whose jurisdiction the company is assessed or falls to be assessed :
    5. (v) Date of incorporation of the company:
    6. (vi) Date of sanction of the industrial unit and the name under which the sanction was given:
    7. (vii) Date of opening of the letter of credit:
    8. (viii) Date of arrival of machinery or plant:
    9. (ix) Date on which the machinery or plant was completely installed:
    10. (x) Date on which the industrial undertaking started commercial production:
    11. (xi) Whether approval of the Controller of Capital Issues, if required, has been taken for the issue of capital, and, if so, the amount of capital permitted to be issued:
    12. (xii) The amount of share capital autho­rised, issued or proposed to be issued and the class of shares and their value, if applicable:
    13. (xiii) The amount of investment involved in setting up and running the industrial undertaking:
    14. (xiv) The minimum number of employees required to be engaged in one shift:
    15. (xv) Whether the undertaking involves the use of electric energy which is mechanically transmitted and is not generated by human or animal agency:
    16. (xvi) Declaration in writing that the under­taking has not applied or shall not apply for approval under section 45 of the Income Tax Ordinance, 1984:
    17. (xvii) The exact nature of business of the undertaking:
    18. (xviii) The names and addresses of the managing director and other directors of the company with particulars of their holdings and interest in the company and other companies or enterprises:
  4. Part B—The application shall be accompanied by—
    1. (i) Attested copy of certificate of incorporation.
    2. (ii) Certificate of the commencement of business with an attested copy thereof.
    3. (iii) A certified true copy of the letter from the Controller of Capital Issues conveying sanction to the issue of capital.
    4. (iv) A certified copy of the Memorandum and Articles of Association of the company.
    5. (v) A copy of the complete scheme of the unit as submitted to the Go­vernment at the time of obtaining the sanction.
    6. (vi) A certified copy of the blue print of the building where the undertaking for which the application is made and located, showing the installed position of the machinery.
  5. Place …………………………………….
  6. Date ……………………………………..
  7. Signature of the

    Managing Director/Director

  8. Verification.

  9. I declare that to the best of my knowledge and belief the information given in the above application are correct and complete.
  10. Place …………………………………….
  11. Date ……………………………………..
  12. Signature of the

    Managing Director/Director

  13. (2) The declaration to be filed under paragraph 7(2)(d) of the Third Schedule to the Ordinance shall be made in the following form:
  14. Declaration under paragraph 7(2)(d) of the Third Schedule to the Income Tax

    Ordinance, 1984.

  15. Name of the undertaking, ………………………………
  16. Assessment year ………………………….
  17. I declare that the undertaking has not been approved for, and that no application in respect of the undertaking has been made or shall be made to the Board for approval of, exemption from payment of tax under section 45 of the Income Tax Ordinance, 1984, for any period.
  18. Place …………………………………….
  19. Date ……………………………………..
  20. Signature of the

    Managing Director/Director

  21. (3) On receipt of the application, the Board may make such enquiries as it considers necessary and call for such further particulars as it may think fit.
  22. (4) If the Board is satisfied that the industrial undertaking is one which qualifies for accelerated depreciation under paragraph 7 of the Third Schedule to the Ordinance, it shall issue an order to that effect and send a copy thereof to the company.

40A. Form of application for accelerated depreciation allowance under paragraph 7A(2)(a) of the Third Schedule to the Ordinance.—

  1. (1) The application for accelerated depreciation allowance referred to in paragraph 7A(2)(a) of the Third Schedule to the Ordinance shall be made and verified in the following form, namely:-
  2. From of application for accelerated depreciation allowance under paragraph 7A(2)(a) of the Third Schedule to the Income-tax Ordinance 1984 (XXXVI of 1984)

    1. (i) Name of the company:
    2. (ii) Date of incorporation of the company:
    3. (iii) Location of its registered office (with full address):
    4. (iv) Location of the undertaking (name of place and district in which it has been set up):
    5. (v) Tax Identification Number (TIN) and name of the Zone of Commission of Taxes and the Circle of Deputy Commissioner of Taxes under whose jurisdiction the company is assessed or will be assessed:
    6. (vi) Value Added Tax (VAT) Registration No…………..
    7. (vii) Date of approval of the undertaking for the purpose of section 46A and the name under which the approval was given:
    8. (viii) Date of opening of letter of credit:
    9. (ix) Date of arrival of machinery or plant:
    10. (x) Date on which the machinery or plant was completely installed:
    11. (xi) Date on which the expansion unit of the undertaking enjoying exemption from tax under section 46A of the Ordinance started commercial production or operation/Sate on which the industrial undertaking started the use of machinery or plant in the treatment and disposal or toxic and environmentally hazardous wastes or in the research and development:
    12. (xii) Amount of share capital authorized, issued or proposed to be issued and the class of shares and their value, if applicable:
    13. (xiii) Exact nature of business of the undertaking:
    14. (xiv) Name and address of the managing director and other directors of the company with particulars of their holdings and interest in the company and other companies or enterprise.
  3. Place …………………………………….
  4. Date ……………………………………..
  5. Signature of the

    Managing Director/Director

  6. Verification

  7. I, ……………………….. do hereby solemnly affirm that the information given above is correct and complete.
  8. Place …………………………………….
  9. Date ……………………………………..
  10. Signature of the

    Managing Director/Director

  11. *Delete whichever is inapplicable.

  12. (2) The application shall be accompanied by-
    1. (i) an attested copy of certificate of incorporation;
    2. (ii) a certificate of the commencement of business in the case of expansion unit of the undertaking enjoying exemption from tax under section 46A of the Ordinance;
    3. (iii) a certificate from the Department of Environment to the effect that the installed machinery is essential for treatment and disposal of toxic and environmentally hazardous wastes if the machinery os proposed to be used for such purpose;
    4. (iv) detailed description of place for research and development if the machinery is proposed to be used for such purpose;
    5. (v) a certified copy of the Memorandum and Articles of Association of the company;
    6. (vii) a certificate to the effect that the undertaking has not applied or shall not apply for approval under section 46A of the Ordinance in the following form; namely:-
  13. “I hereby certify that no application in respect of the undertaking ………………………………. (name of the undertaking) has been made or shall be made to the Board for approval of, and that the said undertaking has not been approved for , exemption from payment of tax under section 46A of the Income-tax Ordinance, 1984 (XXXVI of 1984), for any period.
  14. Place …………………………………….
  15. Date ……………………………………..
  16. Signature of the

    Managing Director/Director

  17. (3) On receipt of an application under sub-rule (1), the Board may make such enquiries as it may consider necessary and may call for such further particulars as it may think fit.
  18. (4) If the Board is satisfied that the undertaking is one which qualifies for accelerated depreciation under paragraph 7A of the Third Schedule to the Ordinance, it shall issue an order to that effect and send a copy thereof to the company.

  1. [33F. Conveyance used partly for personal and partly for business purposes.—
    1. Where the conveyance is used by the employee partly for his personal and partly for business purposes, there shall be included in his income, and amount equal to five percent of the employee’s basic salary.] Deleted F. A 2000
  2. [The Schedule

Sl. No. Particulars of allowances, benefits and perquisites receivable by an employee. The extent to which it is deem-ed to be income.
1 2 3
1. 1. Where house-rent allowance is receivable by the assessee in cash—
(a) where the allowance does not exceed taka 2,000 per month or 50 par cent. of the basic salary of the assessee, whichever is the less.
Nil;
  (b) in other cases the amount, if any, by which such allowance exceeds taka 2,000 per month or 50 per cent, of the basic salary of the assessee, whichever is the less.
2. Where rent-free accommodation is provided—  
  (a) where the accommodation is unfurnished the rental value of the accom­modation or 15 per cent, of the basic salary of the assessee, whichever is the less.
  (b) where the accommodation is fur­nished the rental value of the accom­modation or 20 per cent, of the basic salary of the assessee, whichever is the less.
3. Where residential accommodation is provided at a concessional rent. the sum, if any, by which the amount arrived at under serial 2, as if the accommodation had been provided free of rent, exceeds the rent actually paid by the assessee.
4 (1) Where the conveyance is provided by the employer for the use of the assessee exclusively for his personal or private purposes the sum actually expended by the employer on the running (including the maintenance) of the conveyance (including the normal wear and tear, if the conveyance is owned by the employer).
  (2) Where the conveyance is used by the assessee partly for his personal or private and partly for business pur­poses—
(a) where the conveyance is owned by the employer and its running (including maintenance) costs are also borne by him—
(i) where the conveyance is used exclusively by one person
50 per cent, of the sum actually expended by the employer on the running (including main­tenance) of the conveyance (in­cluding the normal wear and tear, if the conveyance is owned by the employer) sub­ject to a maximum of taka 2.400 per annum;
  (ii) where the conveyance is used by more than one person the sum arrived at by dividing the amount representing 50 per cent, of the sum actually ex­pended by the employer on the running (including maintenance) of the conveyance (includ­ing the normal wear and tear, if the conveyance is owned by the employer) by the number of such persons, or taka 1,200 per annum, whichever is the less;
  (b) where the conveyance is owned by the employee and its running (including maintenance) eosts are also borne by him—
(i) where the conveyance allow­ance does not exceed taka 4,200.
Nil;
  (ii) in other eases the amount, if any, by which the conveyance allowance exceeds taka 4,200 or 10 per cent. of his basis salary, whichever of these two sums is the higher;
  (c) where the conveyance is
by the employer and its running (including maintenance) costs are borne by the employee—
(i) where the conveyance allow­ance does not exocd taka 3,600.
Nil;
  (ii) in other cases the amount, if any, by which the conveyance allowance exceeds taka 3,600 or 7 -5 per cent. of his basic salary, whichever of these two sums is the higher;
  (d) where the conveyance is owned by the employee and its running (including maintenance) costs are borne by the employer—  
  (i) where the conveyance allowance does not exceed taka 1200 Nil;
  (ii) in other cases the amount, if any, by “which the conveyance allowance exceeds taka 1,200 or 2 -5 per cent, of his basic salary, whichever of these two sums is the higher;
  (e) where the conveyance is used exclusively for business purposes—
(i) where the conveyance is owned by the employer and its running (including main­tenance) costs are also borne by him—
 
  (A) where no conveyance allowance is given Nil;
  (B) where a conveyance allowance is given the whole amount of such allowance
  (ii) where the conveyance is owned by the employer and its running (including main­tenance) costs are borne by the employee the amount, if any, by which the conveyance allowance ex­ceeds the actual expenditure incurred by the assesses on the running (including main­tenance) of the conveyance ;
  (iii) where the conveyance is owned by the employee and its running (including main­tenance) costs are also borne by him—  
  (A) where the conveyance allowance does not ex­ceed taka 4,200 Nil;
  (B) in other eases— the amount, if any, by which the conveyance allowance exceeds taka 4,200 or 10 per cent, of the basic salary of the assesses, whichever of these two sums is the higher;
  (iv) where conveyance is owned by the employee and its running (including mainten­ance) costs are borne by the employer—  
  (A) where the conveyance allowance does not ex­ited taka 3,600 Nil;
  (B) in other cases the amount, if any, by which the conveyance allowance exceeds taka 3,600 or 7 -5 per cent, of the basic salary, whichever of these two sums is the higher.
5. Where no conveyance is provided by the employer nor any conveyance owned or maintained by the employee is used by him—  
  (a) where the conveyance allowance does not exceed taka 3,600. Nil;
  (b) in other cases the amount, if any, by which the sum receivable by the assessee exceeds taka 3,600 or the actual expenditure in­curred by him wholly, neces­sarily and exclusively in the performance of the duties of the office held by him, whichever of those two sums is the greater.
6. Where the transport is provided free of cost, or at a concessional rate, by an undertaking engaged in the transport of passengers or the carriage of goods to any employee of the undertaking (includ­ing the members of his household and dependents) in any conveyance owned or chartered by the undertaking for the purpose of the transport or carriage of goods. Nil;
7. Free or concessional passage provided by the employer to an employee (including the members of his household and depen­dents)—
(1) where the passage is provided for the travel abroad of the employee (including the members of his house­hold and dependents)—
(a) where such passage is provided in accordance with the employee’s terms of employment and not of tener than once in two years during the period of the employee’s service with the employer—
(i) where no cash payment is made to the employee
Nil;
  (ii) where cash payment is made the amount, if any, by which such cash payment exceeds the actual expenditure incur­red by the employee;
  (b) in other cases the whole of the amount paid in cash or, where no cash payment is made, the amount which would have been ex­pended by the employee if the free or eoncessional passa­ge, as the ease may be had not been provided by the employer;
  (2) where the passage is provided for travel of the employee (including the members of his household and depen­dents) between places within Bangla­desh—  
  (a) where such passage is provided in accordance with the employee’s terms of employment with the employer. Nil;
  (b) in other cases the whole of the amount paid in cash or, where no cash payment is made, the amount which would have been expened by the employee if the free or concessional passage, as the case may be, had not been provided by the emplo­yer.
8. Entertainment allowance—  
  (a) where the allowance does not exceed taka 4,200 per annum.  
  (b) in other cases the amount, if any, by which. such allowance exceeds taka 4,200 per annum.
9. Provision of free tea, coffee, etc., at the office premises during the course of work. Nil;
  10. Medical and hospitalisation fee and expenses the amount, if any, by which the sum receivable by the assessee exceeds the actual expenditure incurred by him.
11. Any benefit or annuity not included in items 1 to 9 (both inclusive) provided to the employee, the members of his house-hold and dependents the amount which would have been expended by the assessee on obtaining benefit or annuity from an independent source in the same or near locality, if it had not been so provided, as reduced by the amount, if any, recovera­ble from or payable by the assessee and the amount, if any, actually expended by him wholly, necessarily and exclusively in the performance of the duties of office held by the assessee.
  (2) For the purposes of assessment under section 33 of the Ordinance, the allowances, annuities, benefit and perquisites] specified in column 2 of the Sche­dule annexed hereto shall, to the extent indicated in column 3 thereof, be deemed to be income of the assessee and shall be included in his total income :—
  1. The Schedule

Sl. No. Particulars of allowances, annuities
benefits and perquisites.
The extent to which deemed to be income.
1 2 3
  1. Entertainment, conveyance and any other allowance paid in cash the amount, if any, by which the sum receivable by the assessee exceeds the amount actually expended by him wholly, necessarily and exclu­sively in the performance of the duties of the office held by the asssssec.
2 Where transport is provided free of cost, or at a concessional rate, by an under­taking engaged in the transport of passen­gers of the carriage of goods, to any part-time director or a business associate, such as, a representative of a Travel or Booking Agency (including the members of his household and dependents) in any conveyance owned or chartered by the undertaking for the purposes of the trans­port of passengers or the carriage of goods Nil;
3. Any benefit or annuity not included in serials 1 and 2 provided to the assessee, the members of his household or depdendents the amount which would have been expended by the assessee on obtaining such bene­fit or annuity from an inde­pendent source in the same or near locality, if it had not been so provided, as reduced by the amount, if any, receivable from or paya­ble by the assessee and the amount, if any, actually expended by him wholly, necessarily and exclusively in the performance of the duties of office held by the assessee.
  (3) For the purposes of this rule,—
  (a) “basic salary” means the pay and allowances payable monthly or otherwise, but does not include—
(i) dearness allowance or dearness pay unless it enters into the com­putation of superannuation or retirement benefits of the employee concerned;
(ii) employer’s contribution to a recognised fund or a fund to whieh the Provident Funds Act, 1925 (XIX of 1925), applies and the interest credited on the accumulated balance of an employee im such fund;
(iii) allowances which are exempt from the payment of tax; and
(iv) allowances, perquisites, annuities and benefits referred to in sub-rule (1); and
(b) “employee” includes a director of a company working full-time for one company.
  (4) This Rule shall apply to the allowances, annuities, benefits and perqui­sites which become due to an assessee on or after the first dav of July, 1984.

] Deleted F. A 1997

  1. [(i) Government Diploma in accountancy examination conducted by the Accountancy Diploma Board, Bombay;] Deleted F. A 2001
  2. [(iii) Intermediate Examination conducted by the Institute of Chartered Accountants of Pakistan constituted under the Chartered AccountantsOrdinance, 1961;] Deleted F. A 2001
  3. [(vii) The Bombay Government Diploma in Commerce, provided that the Diploma holder took “Accountancy” as his optional subject for the diploma course and has also passed the Matricula­tion Examination of a recognised university or an equivalent examination;
  4. (viii) The Diploma in accountancy awarded by the Sydenham College of Commerce and Economics, Bombay, provided that the diploma holder has passed the Matriculation Examination of a recognised University or an equivalent examination;
  5. (ix) Senior All-India Diploma in Commerce awarded by the All-India Board of Technical Studies in Commerce and Business Administra­tion of the All-India Council for Technical Education, Government of India, provided that the diploma holder took, ‘Advanced Accountancy and Auditing’ as his optional subject for the diploma course; or] Deleted F. A 2001
  6. [38. Procedure for self-assessment.—
    1. (1) Where an assessee, not being a company, as defined in clause (20) of section 2 of the Ordinance, files a return under section 83A of the Ordinance of his total income and such return:
      1. (a) describes “self-assessment” as superscribed on the top of the return form;
      2. (b) is filed on or before the date specified on sub-section (2)(e) of section 75 of the Ordinance;
      3. (c) does not show income below taxable limit, loss or lesser income than the income last assessed;
      4. (d) does not show any refund nor any payment or receipt of gift;
      5. (e) does not show any income on respect of which tax on exempted;
      6. (ee) shows an income for which tax payable is not less than take three thousand and six hundred of the total income of the assessee includes income from business or profession or if the assessee is a share holder director of a company;
      7. (f) is accompanied by a statement of assets & liabilities in the form specified in rule 25 in case of an individual assessee;
      8. (ff) is accompanied by a statement of particulars of his personal and family expenditure to be called life style in the form specified in rule 25A in case of an individual assessee.
      9. (g) is accompanied by a Manufacturing and/or Trading Account, Profit & Loss Account or Receipt and Expenditure account and Balance Sheet, where the assessee derives income chargeable under the head “Income from business of profession” and maintains proper books of accounts;
      10. (h) is accompanied by a statement showing particulars of his income where the assessee derives income chargeable under the head “Income from business or profession”
        and does not maintain proper books of accounts;
      11. (i) is accompanied by a bank certificate from a scheduled bank confirming maintenance of an account either in the name of the assessee or in the name of the business or profession in the first year of commencement of business.
    2. (2) The return is duly verified by the assessee and found to be correct and complete in all respect.
    3. (3) The assessee pays tax of an amount calculated at the rates applicable to the total income shown in the return.
    4. (4) The amount of tax payable is paid by the assessee on or before the date on which the return is filed by him.
    5. (5) Nothing in this rule shall apply to anew assessee deriving income from business or profession whose return shows income less than twenty five percent of the capital invested in business or profession.
    6. (6) The receipt of any return which fulfills the provisions of the preceding sub-rules and section 83A of the Ordinance shall be deemed to be the order of assessment under the said section of the Ordinance.
    7. (7) The initial capital investment or any fraction thereof shall not be transterred in any manner or lent out within five years from the end of the assessment year in respect of which assessee’s return of income has been filed under this rule.]Deleted F. A. 2008
  7. [38A. Special provision for comtractors.-
    1. Where an assessee having no income other than income from supply of goods, execution of a contract or services rendered pays tax at the rate of 4 percent of total payment received by him and submits return showing income of an amount on which tax payable is equivalent to the so paid along with an option in writing that the amount of tax so paid is to be treated as his final liability, the return shall be accepted as correct and complete under section 82 of the Ordinance.]Deleted F. A 1998
    2. [and] Deleted by F. A 2014