Section 3-19 Page 1 of 2

Taxation 1
Sections
Sec.-3: Income-tax authorities: [mj-10]
There shall be the following classes of income tax authorities for the purposes of this Ordinance,
namely:-
1) The National Board of Revenue,
2) Directors-General of Inspection (Taxes),
3) Commissioner of Taxes (Appeals),
4) Commissioner of Taxes (Large Tax-payer Unit),
5) Directors General (Training),
6) Directors General, Central Intelligences Cell;
7) Commissioner of Taxes;
8) Additional Commissioner of Taxes;
9) Joint Commissioner of Taxes;
10) Deputy Commissioner of Taxes;
11) Tax Recovery Officer;
12) Assistant Commissioner of Taxes;
13) Extra Assistant Commissioner of Taxes; and
14) Inspectors of Taxes.
Sec.-11: Establishment of Appellate Tribunal:
(1) For the purpose of exercising the functions of the Appellate Tribunal under this ordinance,
the Government shall establish a Taxes Appellate Tribunal consisting of a president and such
other members as the government may, from time to time, appoint.
(3) A person shall not be as a member of the Taxes Appellate Tribunal unless-
(i) he was or is a member of the Board; or
(ii) he was a Commissioner of Taxes; or
(iii) he is a Commissioner of Taxes; or
(iv) he is a CA and practiced professionally for a period not less than eight years; or
(v) he is a CMA and practiced professionally for a period not less than eight years; or
(vi) he is an ITP and practiced professionally for a period not less than twenty years; or
(vii) he is a professional legislative expert having not less than eight year experience in
the process of drafting and making financial and tax law; or
(viii) he is an advocate and practiced professionally for not less than ten years in any
income tax office; or
(ix) he is or has been a District Judge.
(4) The Government shall appoint one of the members of the Appellate Tribunal to be the
president thereof, who is a member of the board or holds the current charge of a member of the
Board.
Sec.-16: Charge of Income Tax:
(1) Income tax chargeable for each assessment year at any rate or rates as provided by an act
of Parliament.
(2) Tax to be deducted at source, paid or collected in advance in accordance with the
provisions under the ITO-1984.
(3) The rates specified in the 2nd Schedule in respect of
(i) A non resident person, not being a company.
(ii) Any income classifiable under the head “Capital Gain”.
(iii) Any income by way of “Winning” referred to section 19(13)
Sec-16B: Charges of additional tax:
* If a publicly trades company (other than bank or insurance) does not issue, declare or
distribute dividend or bonus share equivalent to at least 15% of its paid up capital within 6
months following its income year, it will be charged 5% additional tax on undistributed
profit in addition to tax payable under ITO-1984.
* Here undistributed profit includes free reserve.

Md. Sayduzzaman Tuhin, S.F.Ahmed & Co. Mob:-01552-639307, E-mail:tuhinsf@yahoo.com

 Section 3-19 Page 2 of 2

Sec.-16C: Charges of excess profit tax:

* If a banking company operating under “Banking Companies Act-1991” shows a profit
exceeding 50% of the aggregate sum of capital and reserve, the bank shall pay @15% of such
excess amount. Such tax payable in addition to tax payable under ITO.
Sec.-16E: Charges of tax on sales of share in a premium over face value:
Notwithstanding anything contained in any other provision of this Ordinance or any other law,
where a company raises its share capital through book building or public offering or right
offering or placement or preference share or in any other way at a value in excess of face value,
the company shall be charged, in addition to tax payable under this ordinance, tax at the rate of
three percent on the difference between the value at which the share is sold and its face value.
Sec.-17: Scope of total income:
(1) The total income of any income year of any person includes-
(a) in relation to any person who is a resident, all income,
(i) is received or deemed to be received In Bangladesh; or
(ii) accrues or arises, or deemed to accrue or arise to him in Bangladesh; or
(iii) accrue or arise to him outside Bangladesh; and
(b) in relation to any person who is a non-resident, all income,
(i) is received or deemed to be received In Bangladesh; or
(ii) accrues or arises, or deemed to accrue or arise to him in Bangladesh; or
(2) Where any amount consisting of the whole or a part of any income of a person has been
included in his total income, it shall not be included again in his total income received by him in
Bangladesh in another year.
Sec.-18: Income Deem to Accrue or Arise in Bangladesh:
The following income shall be deemed to accrue or arise in Bangladesh, namely:
(1) any income which fall under the head ‘salary’, wherever paid if-
(a) it is earned in Bangladesh; or
(b) it is paid by the Government:
(2) any income accruing or arising, whether directly or indirectly, through or from-
(a) any business connection in Bangladesh;
(b) any property, asset, right or other source of income in Bangladesh; or
(c) transfer of capital assets in Bangladesh;
(3) Any dividend paid outside Bangladesh by a Bangladeshi company;
(4) any income by way of interest payable-
(a) by the government; or
(b) by a person who is a resident, except outside Bangladesh; or
(c) by a person who is a non-resident, by such person in Bangladesh.
(5) any income by way of fees for technical service payable-
(a) by the government; or
(b) by a person who is a resident, except outside Bangladesh; or
(c) by a person who is a non-resident, by such person in Bangladesh.
(6) any income by way of royalty payable-
(a) by the government; or
(b) by a person who is a resident, except outside Bangladesh; or
(c) by a person who is a non-resident, by such person in Bangladesh.
Sec.-19C: Special tax treatment in respect of investment in the purchase of bond under
Bangladesh Infrastructure Finance Fund:
Notwithstanding anything contained in any other provision of this Ordinance, no
question as to the source of any sum invested by any person in the purchase of bond issued or
caused to be issued under Bangladesh Infrastructure Finance Fund during the period between the
first day of July, 2010 and thirtieth day June, 2012 (both day inclusive), shall be raised if the
assessee pays, before the filing of return of income for the relevant income year, tax at the rate
of ten percent (10%) on such sum invested.

Md. Sayduzzaman Tuhin, S.F.Ahmed & Co. Mob:-01552-639307, E-mail:tuhinsf@yahoo.com