BASICS OF TAXATION

(Income Tax Ordinance, 1984):

Introduction to Tax Laws
Of all the direct taxes, Income Tax ranks foremost. By nature and heritage, many of us tend to be
just free riders in the society. We are little emotional and sometimes unreasonable in
demanding more and more state serices !ithout the mentality to yield our due share to the cost
of the exche"uer. Tax la!s and #ersonnel connected there!ith are many often thought to be
inimical by the tax#ayers. But it$s a reality that to safeguard our existence and interest in the
society, eery one of us must #ay tax according to our abilities to kee# the statecraft running.
Taxation is not only a major means of #ublic finance but also it #lays a crucial role in ensuring a
social and economic justice. The incidence of direct taxes %i&. Income'Tax, gift'tax cannot be
shifted on others and it has to be borne by the #erson on !hom it is leied. (y efforts today !ill
be to enlighten the #artici#ants of this course on the different as#ects of the direct taxes. We shall
confine ourseles to the contents only !ithout going into the details of releant sections of the
la!s !hich can be had from the IT. Ordinance, )*+, as amended from time to time through
annual -inance .ct.
Income-Tax:
Income Tax is a dynamic but mostly a #ractical subject. It is indeed a difficult task to ac"uire
!ithin this short time at least a !orking kno!ledge of income tax s#ecially !hen the la!s of it
originate from more than one source, such as/
). Income'Tax Ordinance, )*+, as amended from time to time through annual -inance .ct.
0. Income'Tax manual.
1. 2u##lementary 3egulatory Order 423O5, 6irculars, 7otifications etc.
,. 8recedents of decided 6ase la!s.
Classification of Taxa!ers: Cororate and "on-Cororate
-or the #ur#ose of socio'economic stabili&ation, tax#ayers hae been classified either as
cor#orate or non'cor#orate. 6om#anies, banks, cor#orations and other statutory bodies hae been
taken as cor#orate and the rest e.g. Indiiduals, firms, 9.:.-, ..O.8 are designated as non'
cor#orate.
Tax rates, residential status, tax exem#tions, rebates etc. and in many other areas, the t!o grou#s
of tax#ayers also differ.
Tax is leied on income. But !hat is income; The term income is easy to understand but
difficult to define in ie! of the com#lexities of tax la!s. -or our discussion today, !e shall
confine it to any sort of recei#ts in the form of money or money$s !orth chargeable to tax under
any #roision of the IT. Ordinance. Other!ise, anything that comes in exce#t those !hich are
excluded by tax la!s are included in income.
#ec$ %(&4): Income includes-
.ny income, #rofits or gains, from !hateer source deried, chargeable to tax under IT
Ordinance< +,<
.ny loss of such income, #rofits or gains<
The #rofits and gains of any business of insurance carried on by a mutual insurance
association com#uted in accordance !ith the IT Ordinance< +,/
.ny sum deemed to be income, or any income arising or receied or deemed to accrue or
arise or be receied in Bangladesh.
7e! #roision< 0==0. 8roided ho!eer, that Bonus or Bonus 2hares issued > declared by a
com#any shall not be included as income of the reci#ient shareholder.
Income may be assessable or non' assessable. 7on'assessable are totally ignored by tax la!s
%i&. #ension income, recei#ts of accumulated balance from recogni&ed #roident fund, income
from #isciculture ? dairy firm etc. as are declared as non'assessable income by the @ot. from
time to time. .ssessable income is again diided into taxable and non'taxable income. 7on'
taxable income is taken into total income for taxation rate #ur#ose but no tax is to be #aid on this
#art of income, rather, a #ro#ortionate rebate is allo!ed on this income as is included in the total
income. 7on'taxable income like share income of #artnershi# firm, share income from 9indu
:ndiided -amily, 2alaries of @ot. serants etc. are included in the total income of the tax
#ayers only to raise the income ceiling and the tax rate as and !hen a##licable. For example, a
tax #ayer !ith an income of Tk.), A=,===>' !ould not be at all taxable 4belo! taxable ceiling5 but
it shall be taxable due to inclusion of his share income of a firm 4already taxed at firm$s stage5,
say another Tk.A=,===>'. But !ith the inclusion of his non'taxable income 4taxed share income5,
the total income !orks out Tk.0==,===>' and the tax as #er -inance .ct., 0==B-2008 is Tk.A===>'.
But he has not to #ay Tk.A===>'rather, a #ro#ortionate rebate for this inclusion of the said non'
taxable income 4A===>0==,===5 C A=,===> D )0A=>' is to be reduced from the tax #ayable i.e. net
tax Tk.4A===')0A=5D1BA= remains to be #ayable instead of Tk.A===>' as calculated aboe on his
total income of Tk.0==,===>'.

'(o is to a! tax) #ec$ %(**)
Taxability of a #erson is determined on the basis of his residential status. .nyone stays in the
taxable territory for )+0 days or more in the income year or 1EA days at a time or consecutiely
!ithin =, years immediately before the income year just #receding the assessment year #lus a
minimum of *= days in the income year shall be deemed to be resident. Other!ise, a non'
resident. 7on'resident exce#t a Bangladeshi non'resident has to #ay tax at the maximum rate
irres#ectie of total income. (oreoer, a 7on'3esident shall not be entitled to any sort of tax
rebate like inestment tax rebates etc.

6om#anies and other statutory bodies shall be resident if their control and management is !holly
situated in Bangladesh. 9:-, firms or other .ssociation of 8ersons shall be resident in
Bangladesh if its control and management is situated !holly or #artly in Bangladesh in that year.

.ssessment year means the @ot. financial year just follo!ing the income year !hen the
assessment is to be made.

'(o and w(en to su+mit return , w(ere)
.ny assessed being taxed at any time !ithin the last =1 years and assesses haing got taxable
income for the current year shall hae to submit I.T. return. .dmitted tax has to be de#osited
along !ith return 42ec. B,5. . #erson o!ing a building of more than one story and !ith a #linth
area of more than )E== sft. Or a motor car or haing an I2F tele#hone connections, contesting
the elections of local bodies or of the 8arliament or being a member of a club registered under
VAT ACT, 1991, has also to submit IT return (Sec.7 (1!"(7!(1A!.
In the case of an indiidual, such returns including the returns under :niersal 2elf .ssessment
shall be accom#anied by #articulars of his #ersonal and family ex#enditures as #er the #rescribed
form G IT')=BB.
-enalt! for non-su+mission of return (#ec$1%4):
.ny #erson failing to file the return !ithin time may hae to #ay a #enalty of )=H of the last
assessed tax but not lesser than T#.1000>' and in cases of continuous defaults, a further sum of
T#.0>' #er day till the default continues.
-or assesses other than com#anies and statutory bodies, the last date fixed by la! for submission
of return is 1=th 2e#tember each year. The com#anies, banks and other statutory bodies like
T6B, B6I6, @rameen Bank etc. hae to submit their returns !ithin =E months from the end of
its income year or !ithin the next )Ath Iuly, !hicheer is later. 7on submission of returns !ithin
due date unless extended by the 7B3 or by the Fy. 6ommissioner of Taxes in indiidual cases
for a maximum #eriods of six months, shall entail a mandatory #enalty as stated before and in
addition, a summary assessment by the Fe#uty 6ommissioner of Taxes 4F6T5 may be made $"%
8& ex'#arte to the best of his judgment. 9o!eer, the F6T shall not extend any time in case of a
return under :niersal 2elf .ssessment u>s +0BB. The return has to be submitted to the income
tax circle concerned. The !hole of the taxable territories hae been diided into Jones, 3anges
and 6ircles. -or exam#le, Fhaka Jones ) to +, 6hittagong Jones ) to 1, 3ajshahi ? Khulna
Jones etc. Jones and 3anges are headed by 6ommissioners and .ddl. >Ioint commissioners and
the 6ircles by Fe#uty> .sst. 6ommissioners on the basis of its reenue im#ortance. .n assesses
has to file the return to the concerned income tax circle under !hose jurisdiction the assessed
falls as #er order of the Tax .uthorities.
Total Income and its #ources (#ec$4&)
.ny income subjected to tax must fall !ithin a definite source as defined :>2 0= of IT
Ordinance, +,. These are income from salaries, #rofession or ocation, interest on securities,
house #ro#erty income, agriculture, ca#ital gains and income from other sources. Lxce#t the last
t!o heads, all others are more or less self'ex#lanatory. .n income from other sources is one,
!hich cannot be attributed to any of the defined sources as aboe. -or exam#le, income from
gambling, lotteries, diidends, royalties or any income deemed to be as such for reasons of
inestments and ex#enses not being ade"uately ex#lained. Trading liabilities and #ersonal loans
not being #aid off !ithin three years are also be deemed to be income on the ,th year.
Interest receied from -ixed Fe#osits in 8ostal 2aings Banks or any other scheduled Banks,
Fiidend income are also s#ecified as income from other source u>s 11.
Sec. &'(2!(
.ll non'taxable income shall be included in total income but not the non'assessable income.
7on'assessable income is totally ignored for tax #ur#oses.
Sec. &'(&!(
Income of !ife or minor children shall hae to be included in total income of the husband or
father unless it can be reasonably ex#lained. The only exce#tion is in the case of !ife or minor
child !hen such income arises from assets transferred by !ay of gift by the husband or father.
Caital .ains (#ec$ &1):
6a#ital gains arise as a result of dis#osal of ca#ital assets exce#t #ersonal effects like !earing
a##arel, je!ellery, furniture, e"ui#ments and ehicles. It also does not includes gains from
agricultural lands beyond fie miles of the radius of an urban area, call it munici#ality, city
cor#oration or other!ise. The la! #roides that if the sale alue sho!n falls short of the fair
market alue by more than )AH, the F6T may !ith #rior a##roal of his joint commissioner,
estimate the fair market alue. If this difference goes further to more than 0AH, the @ot. may
o#t to buy it as #er the #roisions of Income Tax Ordinance )*+,. .ll these are there just to
check the gross under aluation of #ro#erties so sold off.
The rates of ca#ital gains tax hae also been sim#lified. 6a#ital gains arising out of dis#osal of
assets !ithin fie years of ac"uisition shall fetch tax at normal rate along !ith other income. If
the gains as such, accrue after fie years the tax #ayable by an indiidual shall be the normal tax
along !ith other income or the normal tax on other income if there be any, #lus )AH on the
#ortion of ca#ital gains, !hicheer is beneficial for the tax #ayer. . com#any shall #ay tax on
ca#ital gains M )AH. It has been also #roided that tax deducted at source M AH on the Feed
%alue at the time of registration of the sale deed shall be deemed to be a final settlement
to!ards #ayment of tax under this head exce#t !here the same ca#ital gains hae been
reinested under sub section )= of section 10 in the e"uity of a ne! industry.
a. If the sale #roceeds of the scra##ed assets fall belo! the !ritten do!n alue, the
deficiency shall be deemed to be obsolescence allo!ance u>s 0*.

NN The excess of sale #roceeds oer the !ritten do!n alue, subject to deduction of a maximum
de#reciation amount allo!ed so far, shall be taken to be the ca#ital gain u>s 1) and the deducted
amount of de#reciation shall be deemed to be a business income u>s 0+.
NN 6a#ital gains arising from the transfer of @ot. securities and stock and shares of #ublic
limited com#anies listed !ith the stock exchanges of Bangladesh is exem#ted from tax. This
exem#tion shall also be aailable to a 7on'resident if similar benefit is aailable for him in his
home country. 2ec.10 4B5

Total Income:
Tax is leied on the basis of total income of an assessee i.e. tax#ayer. -or indiiduals, -irms etc.,
the minimum ceiling for taxable limit has been no! fixed at Tk.),==,===>' from the asst. year of
0==,'0==A. -or com#anies, banks and other statutory bodies, there is nothing like minimum
ceiling, !hich means other!ise that these bodies !ill hae to #ay tax for any amount of income.
The rate is also different as is #rescribed by annual -inance .ct. Taxability of a resident shall be
determined on the basis of his total !orld income< and it$s the local income only for a non'
resident tax#ayer.
Total !orld income means any income arising to a 3esident any!here in the !orld
Tax rates hae been gien at the end of this !rite u#.
A%%e%%me)* +ear is the year !hen the assessments are made. .ssessment year must conform to a
got. financial year. It is the year just follo!ing the income year.
I)come +ear is the year !hen the income is earned. Fifferent tax #ayers may hae different
income year but each tax #ayer must fall !ithin a #articular assessment year. Income year is
other!ise the year just #roceeding the assessment year.
/ssessment:
Sec*,o) 81( 8roisional assessment may be made by the Fy. 6ommissioner of Taxes on the basis
of return submitted or !here no return has been submitted, on the basis of the latest assessed
income. 3egular assessment in such cases shall hae to be made subse"uently.
Sec*,o) 82( Where the Fy. 6ommissioner of Taxes has the reason to beliee that the return
submitted is correct and com#lete, he may assess and acce#t the total income sho!n as #er
return.
Sec*,o) 82B/ .ssessment as #er IT return if the Boards so directs the Fe#uty 6ommissioner of
Taxes to do.
Sec*,o) 82BB/ -),.er%al Sel/ A%%e%%me)* - if the return submitted by an assessee a##ears to be
correct and com#lete, the F6T shall acce#t it a% ,* ,% and the recei#t gien as ackno!ledgement
to the submission of the said return shall be deemed to be as an assessment order of the F6T.
9o!eer, such returns are also subjected to audit only on the #rior a##roal of the 7B3.
Sec*,o) 8'( .ssessments after hearing of cases/ notices are issued, com#liance is asked for,
accounts and eidences are erified and the assessments are finally made subject to other norms
and #rocedures.
Sec. 8&( Best judgment assessment/ -or non'submission of returns or for non'com#liance of
notices after the assessment #roceedings began, the F6T shall com#lete the assessment to be the
best of his judgment and determine the total income and tax #ayable.
If the best judgment assessment of the F6T lacks of #ro#er ealuation of legal and factual
as#ects in the o#inion of the Board, the actions of the F6T shall be construed as misconduct.
0Sec. 8&(2!1
Sec.'0A( The F6T cannot disallo! any claim of the assessee !ithout ascribing s#ecific reasons
for any such disallo!ance of any item of ex#enditure. 4-inance .ct, 0==0.5
Sec.9'( -or concealment of income >underassessment or for undue relief haing been enjoyed in
the #ast, the Fe#uty 6ommissioner of Taxes, subject to certain conditions and restrictions may
start #enal #roceedings !ithin =A years from the year of com#letion of the assessment and
determine the income of that year and may further im#ose #enalties as #er la!.
Sec.9&( .ssessments shall be made !ithin =0 years from the end of the assessment year in !itch
the income !as first assessable or after the ex#iry of =* months from the end of the month in
!itch the return is submitted, !hich eer, is earlier.
Sec. 9&(&!( If the F6T fails to gie effects to a##ellate decision !ithin 1= days, it shall be
construed as misconduct.

Sec. 12' *o 1'1(
Sec. 12& *o 171(
These sections deal !ith the #enalties and #rosecutions for arious offences and irregularities
committed by the tax#ayers in res#ect of their income tax assessments.
The #unishment ranges bet!een monetary #enalty to =A years im#risonment but in no case, the
minimum im#risonment shall be less than =1 months.

/eals +! a00rie1ed tax a!ers:
.n aggrieed assessee, other than a com#any, may #refer an a##eal to the a##ellate Ioint>.ddl.
6ommissioner of Taxes !ithin ,A days from the date of recei#t of the im#ugned assessment
order. ( Sec.1'!
.n a##eal fee of Tk.0==>' -inance Ordinance, 0==Bto be de#osited to got. a>c under code no.1-
11&'-0010-1872 and the admitted liability :>2 B, shall hae to be #aid before filing the a##eal.
. com#any !ill file the a##eal direct to the 6ommissioner of .##eals !ith similar conditions.
Sec. 1'(1A!

The aforesaid a##eals shall be deemed hae been acce#ted unless an order is #assed by the
a##ellate authorities !ithin )A= days, -inance .ct, 0==* from the end of the month in !hich the
a##eal !as filed Osec.)AE4E5P
Taxes /ellate Tri+unal: (#ec$1*8)
Taxes .##ellate Tribunal shall be constituted by members being recruited from amongst retired
members, 7B3, retired 6ommissioners of Taxes, existing 6ommissioners of Taxes, 6hartered
.ccountants ? I6(.$s !ith at least =+ years #ractice and #racticing Tax Qa!yers of enormous
ex#erience. 2ubject to norms, #rocedures and limitations, an assessee can a##eal to Tribunal
!ithin E= days and on #ayment of an a##eal fee of Tk.)===>' to be de#osited to got. a>c code
no.1-11&'-001-1872 against the orders of the a##ellate commissioners>additional
commissioners>joint commissioners of taxes. The a##eal shall be deemed to hae been acce#ted
unless any order is #assed on such a##eal by the Tribunal !ithin =E months from the end of the
month in !hich the a##eal !as filed.
8roided ho!eer, that no a##eal shall lie to the Tribunal unless =AH of the amount re#resenting
the difference bet!een the tax as determined on the basis of the order in the )st a##eal 4reised
assessment u>s)AE5 and the tax #ayable u>sB, as #er return.
2eference to t(e 3on4+le #ureme Court$ (#ec$156, 15%)
2uch references only on "uestions of la! may be made !ithin *= days and on #ayment of a fee
Tk.0===>'
Conclusion:
Tax la!s are highly cumbersome and full of juggleriess of re#etitions and rene!als, !hich hae
made it difficult for a commoner to understand. . B62 4Taxation5 6adre officer has to undergo
=0 years #robation before being #osted to the charge of assessments. Therefore, I hae no reason
to be ery much enthusiastic as to the sort of ongoing kno!ledge the #artici#ants may gather
from this sort of short lied course so ho#efully organi&ed by the management of this great
institute.

2ates of Taxes as er 7inance /ct, %669$
Indi1idual 8 7irm 8 3indu 9ndi1ided 7amil! 8 /ssociation of -erson (/O-)
-irst Tk.)EA,=== '''''''''''''''''''''''''''''''''''7il
7ext Tk.0BA,=== '''''''''''''''''''''''''''''''''M )=H
7ext Tk.10A,==='''''''''''''''''''''''''''''''''''M )AH
7ext Tk.1BA,==='''''''''''''''''''''''''''''''''''M 0=H
On the balance ''''''''''''''''''''''''''''''''''M 0AH
3ro.,4e4 5o6e.er, *5a* a la4+ *ax pa+er or a Se),or per%o)
o.er 2 %5all e)7o+ *5e ,),*,al exemp*,o) o/ T#.180,000"-
3ro.,4e4 /$r*5er *5a* a) a%%e%%ee 65o pa,4 *axe% ,) *5e
max,m$m ra*e ,) *5e la%* +ear %5all 8e* a re9a*e : 10; o)
*5e a44,*,o)al *ax a**r,9$*a9le *o a)+ exce%% ,)come %5o6) a*
more *5a) 10; *5,% +ear o.er la%* +ear.
B$* ,) )o ca%e, *ax %5all 9e le%%er *5a) T#.2000 /or a)+
par*,c$lar a%%e%%me)* +ear.
Tax <a*e% /or Corpora*e Tax pa+er% a% per F,)a)ce
Or4,)a)ce, 2009

3$9l,c =*4. Compa),e% l,%*e4 6,*5 *5e S*oc#
>xc5a)8e 27.;
3r,.a*e =*4.
Compa),e% '7.;
Banks, Insurance 6om#anies and other -inancial Institutions ,0.AH -inance .ct.
(obile 8hone O#erators 6om#anies ,AH
But if any (obile 6om#any offers at least )=H of its shares in the 2tock (arket as I8Os, in that
case, tax rate shall be M1AH Fiidend income shall be taxed M 0=H 4for the cor#orate assesses5
other conditions remain unaltered as last year.
.s #er -inance .ct. 0==*, eery com#any irres#ectie of sho!n 8rofit or Qoss, shall #ay a
minimum tax of Tk.A,===>'

7inance /ct, %66&: Tax 2ates: "on-Cororate Tax a!ers


F,r%* T#.90000 ----------------N,l
Nex* T#.10000 ------------ : 10;
Nex* T#.10000 ------------: 1;
Nex* T#.20000 ----------- : 20;
O) *5e 9ala)ce --------------: 2;
Tax rates as #er -inance .ct. 0==,.

O) F,r%* T#.1,00,000"------------ N,l
? Nex* T#.2,00,000"--------:10;
? ? T#.2,0,000"--------:1;
? ? T#.',0,000"--------:20;
O) *5e 9ala)ce-----------------:2;
@o6e.er, m,),m$m *ax 6a% T#.1200


.n inestment tax rebate M)=H on 0AH of the total income excluding the em#loyers
contribution to 8roident -und 48art B of -irst 2chedule5 or T#.10,00,000"- !hicheer is less,
shall be enjoyed by an indiidual tax#ayer. But a cor#orate Tax 8ayer is not eligible for such a
benefit of inestment tax rebate.

Wealth Tax had been abolished 4-inance, .ct, )***5 and instead a surcharge had been introduced
M)=H of the income tax #ayable for the year if the total !ealth, subject to exclusion of a
residential house, exceeded Tk.)= Qac and M)AH if the same exceeded Tk.1=,==,===>'. This
surcharge has again been abolished by -inance, .ct, 0==0.
The income earned abroad by a Bangladeshi citi&en and the same being remitted through #ro#er
banking channel is totally tax exem#ted ide 23O. 0)E'Qa!s>Income tax>0==, dated )1.B.0==,.

7on'residents exce#t a Bangladeshi 7on'resident shall be charged to tax at the maximum rate of
0AH.
Cororate 2ates F,)a)ce Ac*, F,)a)ce Ac*,
200' 200&
3$9l,c =*4. Compa),e% l,%*e4 6,*5 *5e S*oc# >xc5a)8e --- -: '0; ---------'0;

3r,.a*e =*4.
Compa),e%-------------------------------------:
'7.; ------'7.;
Ba)#, I)%$ra)ce Compa),e% A o*5er F,)a)c,al I)%*,*$*,o)%--: &; ---------&;
3$9l,c =*4. Compa),e% l,%*e4 6,*5 *5e S*oc# >xc5a)8e 6,ll e)7o+ a re9a*e o/ 10; /rom *ax
pa+a9le ,/ ,* 4eclare% 4,.,4e)4 o/ 20; or more ,) a)+ +ear.
200'-3ro.,4e4 /$r*5er *5a* ,/ a 3$9l,c =*4. Co. 4oe% )o* 4eclare a m,),m$m o/ 10;
4,.,4e)4B ,* 6,ll pa+ *ax : '7.;
3$9l,c =*4. Compa)+ 4eclar,)8 4,.,4e)4 o/ le%% *5a) 1; o/ *5e pa,4 $p cap,*al ,)
a)+ +ear %5all /e*c5 a) a44,*,o)al *ax o/ ; o) *5e re%er.e %o ma4e 6,*5
$)4,%*r,9$*e4 pro/,* o/ *5e +ear.

Corpora*e ra*e% o/ ,)come *ax /or rea4+-ma4e 8arme)*% ,)4$%*r,e% 5a% 9ee) re4$ce4
/rom '0; *o 10; 9+ F,)a)ce Ac*, 200'.
Tax ra*e /or *ex*,le ,)4$%*r,e%( : 20; $p *o '0.02.2002

.ssesses other than the aboe i.e. indiiduals firms etc. used to get an initial exem#tion
of Tk.,====>'4non'assessable5 from diidends and the balance !as to be taxed at normal
rate a##licable to that assessee. This ceiling of exem#tion had been raised to Tk.)=====>'
by -inance .ct, 0==). .nd again reduced to Tk.0A===>' by -inance .ct, 0==0. .gain a
total exem#tion of diidend has been allo!ed by -inance .ct, 0==1. It is also exem#ted
entirely if the com#any declaring such diidend #ays Fiidend Fistribution Tax M )=H
u>s )EF at the time of declaring such diidend.
2ection )E F has ho!eer, been deleted again by -inance .ct. 0==A.
9o!eer, there is no tax exem#tion no! for Fiidend income exce#t that the 6om#anies
shall be taxed M0=H and an indiidual shall be taxed as a normal income.
A=H of income earned through ex#ort business shall be non'assessable.
Income from 2oft!are deelo#ment is exem#ted from )st Iuly 0==0 to 1=th Iune 0==+.

Taxa9,l,*+ o/ ,)*ere%*% o) %a.,)8 Cer*,/,ca*e%
Interests credited>#aid to the holders of 2aing 6ertificates of any category other than Wage
Larners Feelo#ment Bond, :2F #remium bond etc. !ere subjected to =AH deduction of tax at
source till 1).)0.0==1 and the taxes so deducted !ere considered to be the final discharge of tax
liability u>s +0c4,5.
But 6ertificates #urchased after 1).)0.0==1 !ere immured from such deductions of taxes at
source till 1=.=E.0==B. The interests earned there from !ere as usual added to total income
subject to an exem#tion of Tk. 0A,===>' for a #articular income year. But this exem#tion of
Tk.0A,=== shall be allo!ed only to those assesses !ho do not come under the orbit of tax
deductions on their interests on saings certificates.
-inance Ordinance, 0==B, had brought another amendment to sec. A0F !hereby interests on any
saing instrument shall be subjected to a )=H deduction of tax at source, but the #roision for
final discharge of tax liability u>s +06 !as not touched.
But, by a subse"uent amendment to the -inance Ordinance, 0==B 4-inance .mendment
Ordinance, 0==B dated 1=.)=.0==B5 the #roision for final discharge of tax liability !as also
!ithdra!n !ith retros#ectie effect from =).=B.0==B.
9enceforth, all such interests shall face tax deductionsM)=H for on!ard credit from the tax
#ayable. But no tax shall be deducted unless the interests exceed Tk. )A=,===>' for a year.
9o!eer, interests receied from #ensioners 2aing 6ertificates has been declared totally
exem#ted by -inance .ct, 0==*.
------------------- 0----------------------