Tax Holiday Benefits for New Businesses

Taxation-l Study Manual
Chapter 6
Tax Holiday
Contents
lntroduction
Examination context
Topic List
6. 1 : Tax holiday scheme for newly established industrial undertakings, tourist industry
and infrastructure facility
fxsrnption from tax of newly established industrial undertakings set-up between the
perlod ofJuly,2008 toJune,20l l, etc. in certain cases
, Exemption of income of co-operative society
Tax holiday for hospital
Concession to industries set up in any Export Process Zone
Special tax exemptions / concessions in respect of certain business
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Taxation- | Studv Manual
Introduction
Learning objectives
. ldentifr the area of investment for tax holiday scheme.
. Recognise the conditions for enjoying tax holiday.
. Determine rhe tax holiday income
Practical significance
Income from some newly established industrial undenakings are exempted from tax liability on
the basis of fulfilling some conditions. To get the facility of tax holiday the undertakings need to
comply with some conditions and if any conditions are not fulfilled in the course of making
assessment of an exempted assesse, the exemption will be withdrawn and the DCT shall
determine the tax payable for such year.
The tax holiday and special tax exemptions or tax concessions are provided to different types of
business and industrial undertaking to encourage those businesses and industries for overall
development of the country. Significant exemption on income from export sales also a good
initiative of government to promote the export oriented companies.
Stop and think
When you want to starc a new business you can consider the opporrunity of tax holiday or
special tax exemPtion given by the Governmenc You can be rhe part of the development of the
countn/ and at the same rime you can get the tax holiday facility to enrich your business.
Working context
Accounants are sometime required by the entrepreneur for giving advice on how the business
can be newly started or expanded along with the tax holiday or special tax exemption facility.
Being the mentors accountants can help their clients regarding new business or expansion of
their business in such way that the clients can enjoy rhe tax holiday opportunity to be benefited
economically.
Accountants should have the detailed knowledge on the area of tax exempted business and the
updates of the rules and regulation for getting tax holiday and other special tax exemptions
facility so that they can righdy advise their clients enioying that facility in case of requirement.
Syllabus links
The topics covered in this chapter implies the area of industry and investments from where you
can get tax holiday benefit with the conditions for that benefit.
You will learn more about this area at application level and in case study of advanced stage.
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Taxation-l StudyManual
Ex$lnntlon context
Exam requirements
In the examination, candidates may be required to:
. Recognise the different industrial undertakings for taking ax holiday facility.
. lllustrate the various conditions for getting tax holiday.
. State the computarion of tax holiday income.
. Mentioh the reasons for wirhdrawal and cancellation of tax holiday.
. Define the exemption of tax liability for exporting industries.
. Mention the different types of business considered for special tax exemptions.
Question practice
For question practice on these topics go to the suggested answers covering this chapter.
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6.0 TAX HOLIDAY
Section Overview
Some newly established industrial undenakings are enioying tax holiday.
There are some conditions to get the tax holiday facility.
The purpose of tax holiday is ro encourage industrial and other development of the country
in many sectors like tourism, infrastructural, textile, hospital, exporting industries etc.
) Tax holiday Income shall be computed like the computation of income from business or
profession.
i Tax holiday may be cancelled or withdrawn if one or more conditions not fulfilled.
Tax Holiday Scheme for newly established industrial undertakings, tourist
industry and infrastructure facility: Sec 46A
Profits and gains of an industrial undertaking, tourist industry or physical infrastructure facility
(hereinafter referred to as the said undertaking) set-up in Bangladesh between I July 1995 and 30
June 2008 (both days inclusive) shall be exempt from the tax payable under section 46,4(l) of the
Ordinance for the period specified below-
if the said undertaking is set-up in, Dhaka and Chittagong divisions excluding the hill
districts of Rangamati, Bandarban and Khagrachari, for a period of4 years beginning with
the month of commencement of commercial production or oPeration of the said
under-taking;
if the said undertaking is set-up in Raishahi, Khulna, Sylhet and Barisal divisions and the
hill districts of Rangamati, Bandarban and Khagrachari, for a period of 6 years beginning
wirh the month of commencement of commercial production or oPeration of the said
underuaking.
"(lA) industrial undertaking, rourist industry, or physical infrastructure facility does not include
expansion of an existing undertaking for the purpose of this section -
"lndustrial undertaking" means the following:
Textile
Textile Machinery
High value Garments
Pharmaceuticals,
Melamine
Plastic Products
Ceramics,
Sanitary ware
Steel from iron ore
Fenilizer
lnsecticide and Pesticide
Computer Hardware
Petro-chemicals
Basic raw materials of drugs, chemicals pharmaceuticals
Agricultural Machine
Ship Building
Boilers and compressors
Physical Infrastructure:
(a) Sea or river port
(b) Container terminals, internal container depot (lCD) conainer freight station (CFS)
@The Institute of Chanered Accountants of Bangladesh
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(a)
(b)
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(ii
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(vi)
(vii)
(viii)
(i")
(x)
('i)
(xii)
(xiii)
(xiv)
(t")
(xvi)
(xvii)
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LNG terminal and transmission line
CNG terminal transmission line
Gas pipe line
Flyover
Large water treatment plant and supply through pipe line
Waste treatment plant; and
Export processing zone
Solar Energy Plant
(xviii) TouristlndustrY:
Means residential hotel having facility of three star or more and any other category of
tourist industry facility as rhe Government may by notification in the official Gazette
specify.
(xix) Any other category of industrial undertaking or physical infrastrucure facility or tourist
industry facility as tiie Government may by notification in the official Gazette specify.
Conditions for Tax Holiday
The exemption under section 46A(l) shall apply to the said undertaking if it fulfils the following
conditions under section 46A(2)' namely:'
(a) That the said undertaking is owned and managed by-
(i) a body corporate established by or under an Act of Parliament with its head
office in Bangladesh; or
(ii) a company as defined in the Companies Act, 191.311994 with its registered office
in Bangladesh and having a subscribed and paid up capital of not less than Tk
l,oo,oo0 on the date of commencement of commercial production or
operation:
(c) That thirty per cent of the income exempted under sub-section (l) is invested in the
said undertaking or in any new industrial undertakings during the period of exemPtion or
within one y""i fror the end of the period to which the exemption under that sub-
secrion relates and in addition to that another ten Percent of the income exemPted
under sub-section (l) is invested in each year before the expiry of three months from
the end of the income year in the purchase of shares of a company listed with any stock
exchange, failing which the income so exempted shall, nowvithstanding the provisions of
the Ordinance, be subiect to tax in the assessment year for which the exemPtion was
allowed.
provided thar the quantum of investment referred to in this clause shall be reduced by
the amount of dividend, if any, declared by the comPany enioying tax exemPtion under
this section;
provided further rhar, the provision for purchase of shares of a comPany listed with any
stock exchange referred to in this clause shall not be apPlicable in case of readymade
garments industry, if it invests forty per cent of the income exempted under sub-section
(t; in ttre said undertaking or in any new industrial undertaking during the period.of
exempdon or within onu y""r from the end of the period to which the exemPtion under
that sub-section relates.
It is to be noted that income to be invested mentioned as above means total income for
tax purpose and not net profit as per profit and loss account'
(c)
(d)
(e)
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Study Manual
(d)
Tk.
Total income as.per Compuation of lncome for tax purpose _1,000,000
Less: dividend declared
Balance loo'ooo
___?00-000
(i) to be invesred in the said undertaking or in any new industriar undertaking @ 30%
- Tk. 270,000
(ii) to be invested in the purchase of stock listed shares @ lO% - Tk. 90,000
that the said undertaking is not formed by splitting up or by reconsrrucrion or
reconstitution of business already in existence or by transfer to a new business of any
machinery or plant used in business which was being carried on in Bangladesh at any
time before the commencement of the new business:
that the.said.undertaking is approved, and during the rerevant income year, stancs
approved by the Board for the purposes of section 46A; and
that th-e applicadon in the prescribed form for approval for rhe purposes of section 45A,
as- verified in the prescribed manner, is made to the Board within 6 months from the end
of the monrh of commencement or commercial production or operation.
Computation of Tax Holiday Income
The profics and gains of the undertaking to which section 46A applies shall be computed in the
same manner as is applicable to income chargeable under the head 'lncome from business or
profession.[Section 464(5)]. However, in respect of depreciation, only the allowances for normal
depreciation specified in paragraph 3 of the Third schedule shall be aliowed.
The profia and gains of the said undertaking shall be computed separately from other income,
profits and gains of the assessee, if any, and where the assessee ,u.oin, a loss from such
undertaking it shall be carried forward and set off atainst the profits and gains of the said
undertaking for the following year and where it cannot be wholly set off, the amounr of the loss
not so set off' shall be carried forward for the next year and so on, but no loss shall be carried
l9[-ard beyond the period specified by the Board in the order issued under secdon 464(3) or
(4) [Section 46A(6)].
Unless otherwise specified by the Government, nothing conained in section 464 shall be so
construed as to exempt the following from tax chargeable under section 464-
(a) any dividend paid, credited or distributed or deemed to have been paid, credited or
distributed by a company to its share-holders out ofthe profits gains; and
(b) any income of the said undenaking classifiable as 'Capital gain-s' chargeable under the
provisions of section 3 l;
(c) any income of the said undenaking resulting from disallowance made under section 30.
(e)
(f)
(t)
(2)
(3)
Note
A tax holiday comPany is liable to pay tax resulting from disallowance made u/s 30 in respect of the
following.
(a) Any payment of salaries chargeable to income tax, if tax ar source has not been deducted and paid
to the Government Treasury.

(b) Any payment paid by an assessee to any person if deductible tax at source has not been made and
paid to the Government Treasury under Chapter Vll (Section 49).
(.) Any excess perquisites u/s 30(e) has been paid to the employees.
Worked Example
A tax holiday company's Income was determined at Tk. l,O00,O0O without considering disallowances u/s
30 [under (a), (b) & (c) above] of Tk. 400,000.
Solution
The tax holiday company is liable to pay tax on Tk. 400,000.
Withdrawal and Cancellation of Tax Holiday
(l) Where any exemption is allowed under section 46,4 and in the course of making assessmenq the
Deputy Commissioner of Taxes is satisfied that any one or more of the conditions specified in
section 46,{ are not fulfilled, the exemption will stand withdrawn for the relevant assessment
year and the Deputy Commissioner of Taxes shall determine the tax payable for such year.
[Section 46A(8)].
(2) Notwithstanding anything conhined in this section-
(") where the said undertaking enloying exemption of tax under section 46A is engaged in
any commercial transaction with another undertaking or company having one or more
common sponsor directors, and
(b) during the course of making an assessment of the said undertaking if the Deputy
Commissioner of Taxes is satisfied that rhe said undertaking has purchased or sold
goods at higher or lower price in comparison to the market price with intent to reduce
the income of another undertaking or company.
The exemption of tax of that said undertaking shall be deemed to have been withdrawn
for that assessment year in which such transaction is made. [Section 46A(2A)].
(3) Any such undertaking approved under section 46A may, not later than one year from the date of
approval, apply in writing to the Board for the cancellation of such approval, and the Board may
pass such orders thereon as it may deem fit.[Section 46A(9)].
(6) Notwithstanding anything contained in section 464, the Board may, in the public interest,
cancel or suspend fully or partially any exemption allowed under section 46A.[Section
464( r0)1.
Tax Holiday not Eligible in Certain Cases
A new industry, wherein investment of any sum by any person during the period between the
first day of January, 1997 and the thirty first day of December, 1999 is exemptfrom tax without
any question as to the source of the invested sum under section | 9A shall not be eligible for €x
- holiday.
Such industry may however be considered for tax holiday if the assessee pays tax at the rate of
seven and a half per cent on the invested amount before the filing of return for the relevant
income year (Sec l9A).

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Procedures of Tax Holidav
(l) An application under section 46A(2X0 of the Ordinance for approval for the purposes
of that section in respect of an industrial undertaking, tourist industry or physical
infrastructure facility shall be .made in the prescribed form (Rule 59A (l), in duplicate,
duly signed and verified by the Managing Director or Director of the company.
Exemption from Tax of Newly Established Industrial Undertakings Set-up
Between the Period ofJuly, 2008 to June, 201 l, etc. In Certain Cases. Sec 468
(l) Subject to the provisions of the lT Ordinance 1984, income, profits and gains under secrion
28 from an industrial undertaking, tourism industry or physical infrastructure hcility (hereinafter
referred to as the said undertaking) set-up in Bangladesh between the first day ofJuly, 2008 and
the thirtieth day of June,20ll (both days inclusive) shall be exempted from the tax payable
under the Ordinance for rhe period, and at the rate, specified below:
(a) if the said undertaking is set-up in Dhaka and Chinagong divisions, excluding the hill districts
of Rangamati, Bandarban and Khagrachari, for a period of five years beginning with the monrh of
commencement of commercial production or operadon of the said undertaking
(b) if the said undertaking is set-up in Raishahi, Khulna, Sylhet and Barisal divisions and the hill
districts of Rangamati, Bandarban and Khagrachari, for a period of seven years beginning wirh the
month of commencement of commercial production or operation of the said undeftaking:
(2) For the purpose of this section,-
(a) "industrial undertaking" means :
(i) an industry engaged in the production of textile, textile machinery high value garments,
pharmaceuticals, melamine, plastic products, ceramics, sanitary were, steel from iron ore,-steel
from billet, fertilizer, insecticide and pesticide, compurer hardware, petro-chemicals, agriculture
machinery, boilers, compressors, energy saving bulb, solar energ/ panel, barrier contraceptive or
rubber latex, basic raw materhls of drugs, chemicals and pharmaceudcals and any orher caretory
of industrial undenaking as the Government may by notification in the ofiicial Gazette specifr:
Explanation: 'high value tarrnents'means overcoats, iackets and suits.
(ii) an industry engaged in agro-processing, ship building, diamond cutting and any other caregory
of industrial undenaking as the Government may by notification in the oflicial Gazerte speciff;
(b) "physical infrastructure facility" means sea or river port, container terminals, internal
container depog conainer freight station, Liquefied Natural Gas (LNG) terminal and
transmission line, Compressed Natural Gas (CNG) terminal and transrnissbn line, tas pipe
line, flyover, mono-rail, underground rail, telecommunication other than mobile phone, large
water treatment plant and supply through pipe line, waste treatment plant solar energy plant,
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Period of Exemption Rate of Exemption
For the first two years (first and second year) 100% of income
For the next two years (third and founh year) 50% of income
For the last one year (fifth year) 25% of income
Period of Exemption Rate of Exemption
For the first three years (firsc second and third year) 100% of income
For the nex! rhree years (founh, fifth and sixth year) 50% of income
ror the last one year (seventh yearl 25% of income

export processing zone and any other category of physical infrastructure facility as the
Government may by notification in the official Gazette specify;
"tourism industry" means residential hotel having facility of three star or more and any
other category of tourist industry facility as the Government may by notification in the
official Gazette specify.
NotwithstandinS anythinS contained in sub-section (2), for the PurPose of this section
industria! undertaking, tourism industry or physical infrastructure facility shall not include
expansion of an existing undertaking.
(4) The exemption under sub-section (l) shall apply to the said undertaking if it fulfils the
following conditions, namely:-
(a) that the said undertaking is owned and managed by-
(i) a body corporate established by or under any law for the time being inforce with
its head office in Bafigladesh; or
(ii) a company as defined in the Companies Act, l9l3 (Vll of l9l3) or Companies
Act, 1994 (Act No. l8 of 1994) with its registered office in Bangladesh and having
a subscribed and paid up capital of not less than ten lakh taka on the date of
commencement of commercial production or oPeration;
(b) that thirty percent of the exempted income under subsection (l) is invested in the
said undertaking or in any new industrial undertakings during the period of exemPtion or
within one year from the end of the period to which the exemption under that sub-section
relates and in addition to that another ten percent of the exempted income under sub-
secdon (l) is invested in each year before the expiry of three months from the end of the
income year in the purchase of shares of a company listed with any stock exchange, failing
which the income so exempted shall, notwithstanding the provisions of the Ordinance, be
subiect to tax in the assessment year for which the exemPtion was allowed:
Provided that the quantum of investment referred to in this clause shall be reduced by the
amount of dividend, if any, declared by the company enioying tax exemption under this
section.
Provided further that, the provision for purchase of shares of a company listed with any
stock exchange referred to in this clause shall not be applicable in case of readymade
garments industry, if it invests forty per cent of the income exempted under sub-section (l)
in the said undertaking or in any new industrial undertaking during the period of exemption
or within one year from the end of the period to which the exemption under that
subsection relates.
(c) thar the said undertaking is not formed by splitting up or by reconstruction or
reconstitution of business already in existence or by transfer to a new business of any
machinery or plant used in business which was being carried on in Bangladesh at any time
before the commencement of the new business;
(d) that the said undertaking is approved, and during the relevant income year, stands
approved by the Board for the purposes of this section;
(e) that the application in the prescribed form for approval for the purposes of this
section, as verified in the prescribed manner, is made to th'e Board within six months from
the end of the month of commencement of commercial production or oPeration;
(0 that the said undertaking obtained a clearance certificate for the relevant income year
from the Directorate of Environment.
(c)
(3)
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Trxarron-l Study Manual
Notwithstanding anyrhing contained in this section, where a undertaking enloying
exemption of tax under this seition is engaged in any commet-cial transaction with another
undertaking or company having one or more common sponsor directors, and during the
course of making an assessment of the said undertaking if the Deputy Commissioner of
Taxes is satisfied that the said undercaking has purchased or sold goods at higher or lower
price in comparison to the market price with intent to reduce the income of another
undertaking or comPany, the exemption of tax of that undertaking shall be deemed to have
been withdrawn for that assessment year in which such transaction is made.
The Board shall give its decision on an application made under clause (e) cf sub-section (4)
within forty five days from the date of receipt of the application by the Board, failing which
the undertaking shall be deemed to have been approved by the Board for the purposes of
this section:
Provided that the Board shall not reject any application made under this section unless the
applicant is given a reasonable opportuniry of being heard.
The Board may, on an application of any person aggrieved by any decision or order passed
under sub-section (5), if the application is made within four months of the receipt of such
decision or order, review the previous decision or order and pass such order in relation
thereto as it thinks fic
(8) The income, profits and gains of the undertaking to which this section applies shall be
computed in the same manner as is applicable to income chargeable under rhe head
"lncome from business or orofession":
Provided that in respect of depreciation, only the allowances for normal depreciation
specified in paragraph 3 of the Third Sclredule shall be allowed.
(9) The income, profic and gains of the undertaking to which this section applies shall be
computed separately from other income, profits and gains of the assessee, if any, and where
the assessee sustains a loss from such undertaking ic shall be carried forward and set off
against the profits and gains of the said under-taking for the following year and where it
cannot be wholly set off, the amount of the loss not so ser off, shall be carried forward for
the next year and so on, but no loss shall be carried forward beyond the period specified by
the Board in the order issued under subsection (6) or (7).
(10) Unless otherwise specified by the Government, nothing contained in this section shall be so
construed as to exempt the following from tax chargeable under this section:-
(") any dividend paid, credited or distributed or deemed to have been paid, credired or
distributed by a company to its share-holders out ofthe profits and gains;
(b) any income of the said undertaking classifiable as "Capital gains" chargeable under the
provisions of section 3 l;
(c) any income of the said under-caking resulting from disallowance made under section
30.
(l l) Where any exemption is allowed under this section and in the course of making assessmentr
the Deptrty Commissioner of Taxes is satisfied that any one or more of the conditions
specified in this section are not fulfilled, rhe exemption shall stand withdrawn for the
relevant assessment year and the Deputy Commissioner of Taxes shall determine the tax
payable for such year.
(s)
(6)
(7)
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(12) Any such underraking approved under this section may, not latter than one year from the
' ' d"re of approval, apply in writing to the Board for the cancellation of such approval, and the
Board may pass such order or orders thereon as it may deem fit'
fl 3) Notwithstanding anything contained in this section, the Board may, in the public interest,
cancel or suspend fully or parrially any exemption allowed under this section.
(la) The Board may make rules regulating the procedure for the grant of approval under sub-
section (6), review under sub-section (7), furnish information regarding Payment of other
taxes b.i the said undertaking, and take such other measure connected therewith or
incidental to the oPeration of this section as it as it may deem fit'
Exemption of Income of Co-Operative Society: Sec 47
Tax shall not be payable by a co-operarive society including a co-oPeradve society carrying on
the business of banking in respect of--
(") so much of its income as is derived by it as a result of such of its dealings with its
members as involve sale of goods, the lending of money or the lease of buildings and
land which is for the personal use of such members, or where such member is a firm or
an association of persons, for the personal use of the paruners or members thereof;
(b) the entire income from business carried on by it, if it is engaged in the following--
(r,
(ii)
(iii)
(vi)
(v)
agricultural or rural credit;
coftage industry;
marketing of agricultural produce of its members;
purchase of agiicultural implements, seeds, livestock or other anicles intended for
agriculture for the purpose of supplying them to its members: or
sich processing, not being the performance of any manufacturing oPeration with
the aid of power, of the agricultural produce of its members as is ordinarily
employed by a cultivator to render marketable the agricultural produce raised by
him:
any income from interest and dividends derived from its investments with any other co-
oPerative society; and
(d) any income derived from the letting of godowns or warehouses for the purpose of
srorage, processrng or facilitating the marketing of commodities belonging or meant for
sale to its members.
For the purpose of section 47-
(") 'cotrage industry' means an enterprise, not being owned by a ioint stock company which
fulfils the following conditions' namely-
(i) it is basically an enterprise in which the owner is the investor, a fulltime worker
and the actual entrePreneur;
(ii) the capital invested in plant, machinery and equipment does not exceed Tk
3,00,000 at any time during the income year;
(iii) the number of workers, including the owner and the members of his family'
shall not on any one wenty-four hour day during the income year, exceed
fifteent and
the owner of the enterprise or any member of his hmily does not own any
other industrial or commercial enterprise either in his own name or in the
name of any other Person; and
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(c)
(iv)

(b) 'member of his family', in relation to rhe owner of an enterprise, means the parents,
spouse and children dependent on the owner and employed in the enterprise, whether
working full-time, or whether for or without any wages, remuneration or compensarion
in any form. [EXPLANATION to Section 47].
Nothing contained in section 47(l) shall apply to a co-operarive society carrying on such business
of insurance as is carried on by a mutual insurance association in respect of its profits and gains
to which paragraph 8 of the Fourth Schedule applies.
Tax Holiday for Hospital: S.R.O. No. 204-Ain/lt -2005 Dated 6 July 2005
A newly established private hospital will be eligible for exemption from income tax for five years
sublect to the following conditions:
( l) The hospital is owned by a company registered under the Companies Acq l9l3/ 1994.
(2) The hospital is established between the period from I July 2005 co 30 June 2009.
(3) The hospital is housed in a building construcred on the company's own land.
(4) The hospital has number of beds as mentioned below:
(r) 200 beds in the case ofgeneral hospital.
(b) 50 beds in the case of specialized hospital for hearg kidney and cancer patients.
(5) | 0% of the beds must be kept reserved for treatment of poor patients free of charge.
The owner of the hospital en.joying exemption from tax shall file return of income to the
concerned Deputy Commissioner of Taxes along with statement of accounts and relevant
documenc & evidences in respect of the concerned year of exemption and the Deputy
Commissioner of Taxes will determine the income under sections 28 and 29 along with the
owner's income from other sources, if any, and make the income tax assessment accordingly.
Concession to Industries set up in any Export Processing Zone
Based on compliance of some conditions, the concessions have been granted to the industries
set up in any Export Processing Zone, as follows:-
(l) Exemption of pioneering industries: S.R.O. No.266-U86 dated I July l996:
(2) Exemption of 50% of tax on export sales of industries: S.R.O. No. 267-U86 dated I July
t986:
(3) Dividend income of non-resident shareholders of companies having industries set up in any
. Expon Processing Zone: S.R.O. No. 268-U86 dated lJuly 1986:
(4) Accelerated depreciation up to 100% for plant or machinery used in specified hitch
electronic industry: S.R.O. No. 269-U86 dated I July 1986:
(5) Exemption of income of any industry set up in any Export processing Zone [sRo No
289lLawl89 dated l7 August 19891:.
Special rax Exemptions / concessions in Respect of certain Business
(a) As per SRo No.36 lLawl9T dated 3'd February 1997 prqvides for ls years rax
exemption from commencement of commercial production in case of income of a
Private Power Generation Company.
(b) As per SRo No. 214ll.T/2003 dated 196 July, 2003 provisions have been made for
exemption of any person's income from agro-processing industry from l"July,2002 to
30dJune,2006.
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c) As per SRO no. 216/AlN/lT/2005 dated l6'h July, 2005, provision has been made for
exemption of Bangladeshi resident's income attributable to software business upto 30'h
June, 2008. The person enjoying the exemption will have to furnish income tax return
for every year of the exemption Period.
As per SRO No. 177ll.T/2002 dated 3'd July, 2002 provision has been made for taxing
the income of new industrial undertaking established during the period from l" July,
2002 to 30'h June, 2005 at the rate 20% on fulfillment of some conditions.
SRO no. 2 | 6-AlN/lT/2004 dated I 3.h July, 2004 : By this notification the Government has
exempted from income tax any income accrued outside Bangladesh to any Person
irrespective of his status as resident or non-resident if such income is brought into
Bangladesh under existing laws.
SRO no. 2 | 7-AlN/lT/2004 dated | 3'h July, 2004 : By this notification the Government has
exempted from income tax any income accrued outside Bangladesh to any person who
is resident in Bangladesh, but not a Bangladeshi citizen if such income is brought into
Bangladesh under existing laws.
SRO no. 200/-AlN/lT/2005 dated 06.07.2005 - Any person having not previously
declared any income can declare the same undisclosed income from other sources
during the period from 01.07.2005 to 30.06.2006 on Payment of 7.5% tax thereon and
no quesrion as ro the source of money shall be raised. The declared income shall not be
added with any income from other sources previously shown in the return and tax
thereon have been paid at normal rates in determination of total income declaring under
the Ordinance and the opportunity under this notification shall not constitute immunity
from action if any taken previously under section 93 of the LT. Ordinance. The
declaration has to be made ifr prescribed form.
Exemption on Income from Fish Farming, Poultry Farming, Duckery, Cattle Farming, Dairy
Farming, Frog Farming, Horticulture, Cultivation of Mulberry, Cocoon, Mushroom and
from Floriculture: S.R.O.309J9l Dated 9 October l99 l;S.R.O. No.207-ll93 Dated 18
october 1993; S.R.O. 127-V2000 Dated ll May 2000; and S.R.o. 215/lT/2003 Dated 20
July 2003, SRO 206/Ain/lt Dated 6th July 2005
(d)
(e)
(0
(s)
h)
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Taxrtiorr- | Study Manual
:l_
Chapter 7
Payment of tax before assessment
Contents
I ntroduction
Examination context
Topic List
7.1 Deduction ii souice and Aivanae Paymeni of Tii
7.2 Income subject to deduction at source
i.t - Time Limit for Palmeni or fix Deauiied ir Sourie
i.1-- -
Manner of Paymeni of Tii Deauiied at Sourii
7.i- liiuance of Cenificate ioi Tii ;i Souiae
.in'.
7.6 Rates of TDS
7.7--= 6th-ei t;;ue; i;taifis io TDS
Advance Payment of Tax
7.8 Requirement to pay advance payment of tax
zs Comprtaiion oiiaulni" t^i
7.10 : lnstallments of advance tax
7.ll-, Esrirdia oftduinie tax-- i
'-'- ---- - 1
7.12 r Advance payment of tax by new assesses i
z{railu1et;93y3!r{gr;;t;_ , ,'- "___" _,
--
,
7.14 Levy of interest for failure to pay advance tax
-2.
r5-'- criail;i;dGnca 6i
7.16 : Interest payable by Government on excess payment of advance tax
7.-lr- iniiresr payiuie by ihe issessee on aehiieri-y in piymbnf oi iavjnce tai
i ,.0 l
li7
@The Insciwte of Chanered Accountants of Bangladesh

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