Income Tax Manual Part-II – Rule 41-50

Income Tax Manual Part-II – Contents

41. Particulars for depreciation allowance.—

  1. Forthe purpose of paragraph 2(3)(a) of the Third Schedule to the Ordinance, the particulars to be furnished, shall be in the following form :—
  2. Particulars for depreciation allowance

  3. Section A.
SI. No. Description of buildings, machinery, plant or furniture. Written down value
as at the
beginning of the accounting period.
Capital expenditure
during the
year on additions,
alternations,
improvements and
extensions.
Dates from
which the
additions, etc.
referred to in col. 4 are used
for the purpose of the
business or
profession.
If any building, machinery or
plant has been
sold or discarded or demolished
during the income year, show in this column the written down
value as at the
beginning of the
accounting
period and the
date on which
it ceased to be
used for the
purposes of the
business or
profession.
1 2 3 4 5 6
Amount on which depreciation allowable. Rate specified in the Third Schedule. Depreciation allowable.
Normal Initial Extra Normal Initial Extra
7 8 9 10 11 12 13
No. of days of double/ triple shift working. Depreciation allowable on multiple shift working. Total depreciation allowable under cols. 11, 12 and 13. Remarks.
Double shift Triple shift
14 15 16 17 18
  1. Notes.—
  2. (1) In the case of ocean going ships, particulars of ‘Original cost’ instead of those of the ‘written down value’ shall be furnished.
  3. (2) Capital expenditure on any new machinery or plant installed or any new building erected shall be shown separately and in the ‘Remarks’ column against each such entry, it shall be indicated that initial depreciation allowance is claimed.
  4. Section B.
Items of buil­ding, machinery or plant shown in column 6 of Section A. If sold, amount for which sold. If discarded, destroyed or demolished. Net profit or loss. Remarks.
Scrap value thereof. Amount of insurance, salvage or compensation monies received.
1 2 3 4 5 6
  1. 1,……………………………………. do hereby declare that what is stated above is true to the best of my knowledge and belief.
Place …………………………………….
Date ……………………………………..
Signature of the
Managing Director/Director

42. Purchase of capital asset by Government.—

  1. The manner to be followed in connection with purchase of a capital asset by the Government under section 32(4) of the Ordinance, shall be as follows:—
  2. (1) Where the Deputy Commissioner of Taxes has reason to believe that any immovable property is being transferred by a person (hereinafter referred to as the transferor) to another person (hereinafter referred to as the transferee) and the fair market value of such property exceeds the declared value by more than twenty-five per cent. and the considera­tion for such transfer as agreed to between the parties has not been truly stated in the instrument of transfer with the object of facilitating the reduction or evasion of the liability of the transferor to pay the tax under the Ordinance in respect of any income arising from the transfer or any other taxes or duties, he may, subject to the provisions of this rule, initiate proceedings for the acquisition of such property by the Government.
  3. (2) The Deputy Commissioner of Taxes shall initiate proceedings for acquisition of immovable property under this rule by giving a notice to that effect in the official Gazette and a copy of such notice shall also be published in the two leading newspapers of wide circulation where such property is located; a copy of such notice shall also be served on the transferor, the transferee and the person in occupation of the property, if the transferee is not in occupation thereof:
  4. Provided that no such proceedings shall be initiated after the expiry of a period of two years from the end of the month in which the instrument of transfer in respect of such property is registered under the Registration Act, 1908.
  5. (3) Objection against the acquisition of the immovable property in respect of which a notice has been published in the Official Gazette and the newspapers may be made in writing by the transferor or the transferee to the Deputy Commissioner of Taxes within sixty days of the publication of the notice in the official Gazette or newspapers.
  6. (4) The Deputy Commissioner of Taxes shall fix a date and place for the hearing of the objections against the acquisition and shall give notice of the same to every person who has made such objection:
  7. Provided that notice shall also be given to the transferee of such property even if he has not made any such objection.
  8. (5) After hearing the objections, if any, and after taking into account all the relevant materials on record, if the Deputy Commissioner of Taxes is satisfied that—
  9. (a) the fair market value of such property exceeds the consideration paid therefore by more than twenty-five per cent, of such consideration, and
  10. (b) the consideration for such transfer as agreed to between the parties has not been truly stated in the instrument of transfer with such object as is referred to in clause (1), he may make an order forthe acquisition of the property under this rule.
  11. (6) Any person aggrieved by an order made under clause (5) may prefer an appeal under the Ordinance to the Appellate Joint Commissioner.
  12. (7) As soon as may be after the order of acquisition of any immovable property has been made under clause (5) and after the disposal of appeal, if any, the Deputy Commissioner of Taxes may by notice in writing, order any person who may be in possession of the immovable property to surrender or deliver possession thereof to him or any other person duly authorised by him in writing in this behalf within thirty days of the service of the notice.
  13. (8) If any person refuses or fails to comply with a notice under clause (7), the Deputy Commissioner of Taxes or any other person duly authorised by him under that clause may take possession of the immovalble property and may, for that purpose, requisition the services of any police officer to assist him and it shall be the duty of such officer to comply with such requisition and may use such force as may be necessary.
  14. (9) When the possession of the immovable property is surrendered or delivered under clause (7), the Deputy Commissioner of Taxes or the person duly authorised by him in that behalf or, as the case may be, when the possession thereof is taken under clause (8), the Government shall tender as consideration a sum equal to the aggregate of the amount of the declared value for its transfer plus ten per cent. of the said amount to the transferor and the property shall vest absolutely in the Government free from all encumbrances:
  15. Provided that nothing in this clause shall operate to discharge the transferor or the transferee or any other person (not being the Government) from any liability in respect of such encumbrances, and notwithstanding anything contained in any other law, such liability may be enforced against the transferor or the transferee or such other person by a suit for damages.
  16. (10) Notwithstanding anything contained in clause (9), if any dispute arises as to the apportionment of the amount of consideration amongst persons claiming to be entitled thereto, the Government shall deposit in the principal civil court of original jurisdiction the amount required to be tendered under clause (9) and refer such dispute for decision of the court and the decision of the court thereon shall be final.

43. Application for recognition of a provident fund.—

  1. (1) An application for recognition shall be made by the employer maintaining the fund for which recognition is sought and shall be accompanied by the following documents, namely:—
    1. (a) the trust deed in original with one copy thereof the latter to be retai­ned by the Commissioner; and
    2. (b) the rules of the fund :
    3. Provided that if the original of the trust deed cannot conveniently be produced, the Commissioner may accept, in lieu of the original, a true copy certified either by a Magistrate or in any manner specified in rule 7 of the Companies Rules, 1914, in which case, an additional copy shall be furnished for retention by the Commissioner.
  2. (2) The application shall be submitted to the Deputy Commissioner of Taxes of the area in which the accounts of the funds are kept, or, if the accounts are kept outside Bangladesh, to the Deputy Commissioner of Taxes of the area in which the local headquarter of the employer is situate.
  3. (3) The application shall contain the following information:—
    1. (a) Name of employer and address, his business, profession, etc., also his principal place of business.
    2. (b) Number of employees subscribing to the fund — (i) in Bangladesh ; and (ii) outside Bangladesh.
    3. (c) Place where the accounts of the fund are or will be maintained.
    4. (d) If the fund is already in existence—
      1. (i) a copy of the last balance sheet of the fund ; and
      2. (ii) details of investments of the fund.
  4. (4) A verification in the following form shall be annexed to the application, namely:—
  5. I/We, the trustee(s) of the above named fund, do hereby declare that what is stated in the above application is true to the best of my/our information and belief, and that the documents sent herewith are the originals or true copies thereof.

44. Date of recognition of a provident fund.—

  1. An order according recognition to a provident fund shall take effect from the last day of the month in which the application for recognition is received by the Commissioner concerned, unless, at the request of the employer, the last day of any later month in the same financial year is specified for such purpose.

45. Form of appeal.—

  1. An appeal under paragraph 13 of Part B of the First Schedule to the Ordinance shall be in the following form and shall be verified in the manner indicated therein :—
  2. Form of appeal against refusal to recognise or withdrawal of recognition
    from a provident Fond.

  3. To
    The National Board of Revenue,
    Dhaka.
  4. The petition of ………………………employer(s) carrying on business or profession ……………at……………………………………………………………….
  5. Your petitioner(s) applied to (obtained sanction from) the Commissioner under paragraph 2(2) of Part B of the First Schedule to the Ordinance, 1984 (XXXVI of 1984) for the recognition of the provident fund maintained by him (them) for the benefit of his (their) employees. The Commissioner has refused recognition (withdrawn recognition) for the reasons stated in his order, ………… dated, ………………………. ofwhich a copy is attached.
  6. For the reasons set out below, your petitioner (s) submit (s) that the fund should (be continued to) be recognised and pray (s) that the National Board of
    Revenue may be pleased to accord recognition/continue the recognition.
  7. GROUNDS OF APPEAL
    Verification

  8. We/I, …………………… the petitioner (s) (named in the above petition) do declare that what is stated therein is true to the best of our/my information and belief.
Place …………………………………….Date …………………………………….. Signature of the
Managing Director/Director
  1. N.B.— Unnecessary words or letters should be scored out.

46. Preparation and maintenance of provident fund accounts, etc.—

  1. (1) The accounts of a recogaised provident fund shall be prepared at an interval of not more than twelve months.
  2. Account closed
    ………………….

  3. (2) An account shall be maintained for each subscriber to the fund and it shall include the particulars shown in the following form
  4. date Paid to employee
    ……………………………………..
    Lapsed to employer or to Fund
    ……………………………………..
    Recovery by employer

  5. Name…………………………………………….. Date of joining the Fund……………………
Year and month. Salary.
1 2
Balance brought forward
July
June
Total
Adjustment on account of temporary withdrawals account (columns
8 and 9 only). Adjustment on account of non-payable withdrawals account
(columns 10 and 11). Total carried over
Contribution
Contributions by employee. Regular contributions by employer. Employer’s contributions of a contingent
nature.
Total of columns 3, 4 and 5.
3 4 5 6
  1. Exempt/Not Exempt

Total in-
terest on
the amo-
unt shown
in column
6.
Contribu-
tions not
exceeding
l/3rd of
salary for
the year.
Interest on
sums in col-
umn 6 at …
% but not
exceeding
l/3rdofthe
salary for
the year.
Contribu-
tions col.
6 minus
col. 8.
Interest
col. 7 mi-
nus col. 9.
Additions
to total in-
come (cols.
4, 5 and 7).
7 8 9 10 11 12 13
Non-repayable withdrawals account Temporary withdrawals account
July…………………..

August……………….

…………………..

…………………..

June……………..

Total…………..

Amount. Balance brought forward.

July…………..

August………………
…………………………….
…………………………….
June………………….

Total……………….

Advance. Repayment.
  1. If desired, column 7 may be divided into sub-columns showing separately the interest on and columns 4 and 5 respectively.

47. Furnishing of an abstract of the provident fund account of an employee.—

  1. (1) An abstract for the financial year or other applicable accounting period of the individual account of each employee participating in a recognised provident fund whose income under the head “Salaries” is Taka 20,000 or over per annum, area in which the employer conducts his business or profession, or to such, other Deputy Commissioner of Taxes and such abstract shall be in the form specified in rule 46, but shall show only the totals of the various columns thereof for the financial year or other accounting period.
  2. (2) The abstract shall contain an account of any temporary withdrawals by the employee during the year and of the repayment thereof.

48. Particulars of accounts of employee participating in provident fund.—

  1. The account to be made under the provisions of paragraph 10(1) of Part B of the First Schedule to the Ordinance shall show in respect of each employee:—
  2. (i) the total salary paid to the employee during the period of his partici­pation in the provident fund.
  3. (ii) the total contributions.
  4. (iii) the total interest which has accrued thereon, and
  5. (iv) the percentage of the employee’s salary in accordance with which contributions have been made by the employer and employee.

49. Investment of contributions.—

  1. (1) Where the employer is not a company as defined in section 2(2) of the Companies Act, 1913 (VII of 1913), the contributions made by employees after the date of recognition of a provident fund and the interest on the accumulated balance of such contributions shall be wholly invested either in securities of the nature specified in clauses (a), (c), (d) or (f) of section 20 of the Trusts Act, 1882 (II of 1882), and payable both in respect of capital and interest in Bangladesh or in a Post Office Savings Bank Account in Bangladesh.
  2. (2) Where the employer is a company as defined to section 2(2) of the Companies Act, 1913 (VII of 1913), all movies contributed to a provident fund (whether by the company or by the employees) or accruing by way of interest or otherwise to such fund shall be wholly invested in accordance with the provisions of section 282B(2) of the Companies Act, 1913 (VII of 1913), so that the securities in which the contributions made by employees after the date of recognition of a provident fund and the interest on the accumulated balance of such contributions are invested are payable both in respect of capital and interest in Bangladesh.

50. Withdrawal from the provident fund.—

  1. (1) Withdrawals by employees shall not be allowed by the trustees except on special grounds in the following circumstances or circumstances of a similar nature—
    1. (a) to pay expenses incurred in connection with the illness of a subscriber or a member of his family;
    2. (b) to pay for the passage over the sea or by air of a subscriber or any member of his family;
    3. (c) to pay expenses in connection with marriages, funerals or ceremonies which, by the religion of the subscriber, it is incumbent upon him to perform and in connection with which it is obligatory that expenditure should be incurred;
    4. (d) to meet the expenditure on building or purchasing a house or a site for a house provided that such house or site is assigned to the trustees of the fund:
    5. Provided that at the discretion of the trustees of the fund, the condition of such house or site being assigned to the trustees of the fund may be waived in the case of an employee whose income under the head “Salaries” does not exceed taka 10,000 per annum;
    6. (e) to pay premia on policies of insurance on the life of the subscriber or of his wife provided that the policy is assigned to the trustees of the fund or, at their discretion, deposited with them and that receipts granted by the insurance company for the piemia are from time to time handed over to the trustees for inspection by the Deputy Commis­sioner of Taxes.
    7. Explanation.— Forthe purpose of sub-rule
  2. (1) “family” means any of the following persons who reside with and are wholly dependent on the employees, family, the employee’s wife, legitimate children, step-children, parents, sisters and minor brothers.
  3. (2) No such withdrawal shall exceed—
    1. (a) the pay of the employees for three months or in the case of with­drawals for the purpose specified in clause (c) of sub-rule (1), the pay of the employees for six months, or the total of the accumulation of exempted contributions and ‘exempted interest contained in the balance to the credit of the employee, whichever is less;
    2. (b) in the case of withdrawals for the purpose specified in clause (d) of sub-rule (1), eighty parcent, of the total of accumulation of exempted contribution and exempted interest standing to the credit of the employee; and
    3. (c) in the case of withdrawals for the purpose specified in clause (e) of sub-rule (1), the restriction imposed by clause (a) shah1 apply to each withdrawal and not to the total withdrawals.
  4. (3)
    1. (a) Save as provided in clauses (b), (c), (d) and (e) of sub-rule (1), a second withdrawal shall not be permitted until the sum. first withdrawn has been fully repaid.
    2. (b) A withdrawal may be permitted for the purposes specified in clause (e) of sub-rule (1) notwithstanding that the sum or sums previously withdrawn for fie same purpose has or have not been repaid.
    3. (c) A withdrawal for any one of the purposes of sub-rule (1) other than that specified in clauses (d) and (e) of that sub-rule may be permitted notwith­standing that the sum or sums withdrawn for the purposes of clauses (d) and (e) of the same sub-rule has or have not been repaid.