The Finance Order, 1972 (President's Order)
Third ScheduleRates of Income Tax
Third Schedule
THE THIRD SCHEDULE [See Article 9] Rates of Income Tax A. In the case.— of every individual, Hindu Undivided Family, unregistered firm, an association of persons and every artificial juridical person referred to in clause (9) of section 2 of the Income-tax Act 1922, (XI of 1922), not being a case to which paragraph.— B of this part applies-Rates. Rates of Super Tax A. In the case of a Company-Rates. (i) On the whole of the total income 30 per cent of such total income. excluding income to which paragraph E of Part I, applies. Provided that where a Company, in respect of the profits and gains liable to tax under the Income-tax Act, 1922 (XI of 1922), has made such effective arrangements as may be prescribed by the National Board of Revenue in this behalf for the declaration and payment in the taxable territories of dividends payable out of such profits and gains and for the deduction of tax from such dividends, rebate shall be allowed as follows: (i) a rebate of 5 per cent to such company if it is a public company; (ii) a rebate of 5 per cent to such company if it is a public company to which clause (iii) does not apply, if its paid-up capital plus free reserves as on the last day of the previous year does not exceed Taka 5,00,000; (iii) a rebate of 5 per cent on so such of the income, profits and gains of such company, being a public company, as are derived by it from an industrial undertaking if its paid-up capital plus free reserves as on the last day of the previous year does not exceed Taka 10,00,000; (iv) a rebate of.— 10 per cent to such company in respect of its income, profits and gains to which sub-section (9) of section 10 of the Income tax Act, 1922 (XI of 1922), applies or which are derived by it in Bangladesh from processing, freezing, preserving and canning of food, vegetable fruit, grain, meat, fish and (v) poultry;.— a rebate of 15 per cent to such company on so much of the income, profits and gains accruing or arising outside and taxable territories to which subsection (4) of section 9 does not apply as are brought by it into Bangladesh. Explanation-The term “industrial undertaking”, as used in clauses (iii) means an undertaking which is set up or commenced in the taxable territories on or after the 14 th day of August, 1947, and which employs (i) ten or more persons in Bangladesh and involves the use of electrical energy or any other form of energy which is mechanically transmitted and is not generated by human or animal agency or (ii) twenty or more persons in the taxable territories and does not involve the use of electrical energy or any other form of energy which is mechanically transmitted and is not generated by human or animal agency and which is- (a) (1) engaged in-.— the manufacture of goods or materials or the subjection of goods or materials.— to any process, which substantially changes their original conditions; (b) ship-building; (c) generation, transformation, conversion, transmission or distribution of electrical.— energy, or the supply of hydraulic power; (d) the working of any mine, oil-well or other source of mineral deposits not being an.— undertaking to which the Second and Third Schedules to the Income-tax Act, 1922 (XI of 1922) apply; or (ii) any other industrial undertaking which may be approved by the National Board of Revenue for the purposes of this clause. (2) On the amount representing income from dividends from a Company having its registered Office in Bangladesh-Rates. (a) where such dividends are received 15 per cent of such amount. by a public company and are declared and paid by a company formed and registered in Bangladesh under the Companies Act, 1913 (VII of 1913), or a body corporate formed in pursuance of an Act, in respect of the share-capital issued, subscribed and paid after the fourteenth day of August, 1947. (b) In other cases ... ... 20 per cent of such amount. (3) On the whole of the amount representing the face value of any bonus shares or the amount of any bonus issued by the Company to its shareholders with a view to increasing its paid-up capital- (a) Where a Company which issues 15 per cent of such amount. bonus shares or bonus, as the case may be, is a public company. (b) In other cases ... ... 20 per cent of such amount. B. In the case of every local authority-On the whole of the total income ... 12.5 per cent of the total income. C. In the case of every registered firm- (1) Where the total income does not Nil. exceed Taka 15,000. (2) Where the total income exceeds 5 per cent of the amount Taka 15,000 but does not exceed exceeding Taka 15,000. Taka 30,000. (3) Where the total income exceeds Taka 750 plus 10 per cent of the Taka 30,000 but does not exceed amount exceeding Taka 30,000. Taka 60,000. (4) Where the total income exceeds Taka 3,750 plus 20 per cent of Taka 60,000 but does not exceed the amount exceeding Taka Taka 1,00,000. 60,000. (5) Where the total income exceeds Taka 11,750 plus 30 per cent of Taka 1,00,00. the amount exceeding Taka 1,00,000. Explanation-The term “registered firm” as used in this paragraph, means a firm registered under section 26A of the Income Tax Act, 1922 (XI of 1922) or a firm treated as a registered firm under clause (b) of sub-section (5) of section 23 of the Income-tax Act, 1922 (XI of 1922).
PART I
Third Schedule, item 1
1. Where the taxable income does Taka 25. not exceed Taka 1,000.
Third Schedule, item 2
2. Where the exceeds Taka.— taxable income Taka 25 plus 5 per cent of the amount 1,000 but does exceeding Taka 1,000. not exceed Taka 2,000.
Third Schedule, item 3
3. Where the exceeds Taka.— taxable income Taka 75 plus 10 per cent of the amount 2,000 but does exceeding Taka 2,000. not exceed Taka 4,000.
Third Schedule, item 4
4. Where the exceeds Taka.— taxable income Taka 275 plus 15 per cent of the amount 4,000 but does exceeding Taka 4,000. not exceed Taka 6,500.
Third Schedule, item 5
5. Where the exceeds Taka.— taxable income Taka 650 plus 20 per cent of the amount 6,500 but does exceeding Taka 6,500. not exceed Taka 10,000.
Third Schedule, item 6
6. Where the exceeds Taka.— taxable income Taka 1,350 plus 25 per cent of the amount 10,000 but does exceeding Taka 10,000. not exceed Taka 15,000.
Third Schedule, item 7
7. Where the exceeds Taka.— taxable income Taka 2,600 plus 35 per cent of the amount 15,000 but does exceeding Taka 15,000. not exceed Taka 25,000.
Third Schedule, item 8
8. Where the exceeds Taka.— taxable income Taka 6,100 plus 50 per cent of the amount 25,000 but does exceeding Taka 25,000. not exceed Taka 35,000.
Third Schedule, item 9
9. Where the exceeds Taka.— taxable income Taka 11,100 plus 60 per cent of the amount 35,000 but does exceeding Taka 35,000. not exceed Taka 50,000.
Third Schedule, item 10
10. Where the exceeds Taka.— taxable income Taka 20,100 plus 65 per cent of the amount 50,000 but does exceeding Taka 50,000. not exceed Taka 70,000. Rates.
Third Schedule, item 11
11. Where the taxable income Taka 33,100 plus 67.5 per cent of the amount exceeds Taka 70,000 but does exceeding Taka 70,000. not exceed Taka 1,00,000.
Third Schedule, item 12
12. Where the taxable income Taka 53,350 plus 70 per cent of the amount exceeds Taka 1,00,000. exceeding Taka 1,00,000: Provided that- (i) no income-tax shall be payable on a total income which before the deduction of the sums, if any, exempt under the first, third and fourth provisos to sub-section (1) of section 7, section 15, section 15A, section 15AA, section 15C, section 15CC, section 15D, section 15E, section 15F, section 15H and section 58F of the Income-tax Act, 1922 (XI of 1922) does not exceed Taka 6,000; and (ii) the income-tax payable shall in no case exceed (a) the amount by which the total income exceed Taka 6,000 or (b) the amount representing seventy per cent of the total income, whichever amount is the less and, where such income includes any income from a share of the income, profits and gains of a firm to which paragraph C of Part II applies, such portion of the Super-tax payable under the said paragraph as bears to the total amount of such Super-tax the same proportion as his share of income, profits and gains of the firm bears to the total income of the firm shall be added to the income-tax payable by such partner under this paragraph and, if the sum so arrived at exceeds seventy per cent of the total income of such partner (including his share of income, profits and gains of the firm), the amount of income-tax payable by him under this paragraph shall be reduced by the amount of such excess. Explanation.-The expression “taxable income”, as used in this paragraph, means- (a) in the case of an assessee to which sub-section (3) of section 9 or clause (a) of sub-section (1) of section 17 of the Income-tax Act, 1922 (XI of 1922) applies, the total income; (b) in any other case, the total income of an assessee as diminished by the allowance admissible under the first, third and fourth provisos to subsection (1) of section 7, section 15, section 15A, section 15AA, section 15C, section 15CC, section 15D, section 15E, section 15F, section 15H and section 58F of the Income-tax Act, 1922 (XI of 1922). B. In the case of every company to which paragraph C or paragraph D does not apply, and in the case of every local authority and in every case in which, under the provisions of the Income Tax Act, 1922 (XI of 1922), income-tax is to be charged at the maximum rate-Rates. On the total income, excluding such part 30 per cent of such income. thereof as consists of any dividend, bonus or bonus shares to which subparagraph (2) or (3) of paragraph A of Part II applies. C. In the case of.— every public company to which section 23A of the Income-tax Act, 1922 (XI of 1922) applies- (1) On the total income, excluding such 30 per cent of such income. part thereof as.— consists of any dividend, bonus or bonus shares to which sub-paragraph (2) or (3) of paragraph A of Part II applies but including such income as is.— part of the total equal to the undistributed income of such (2) company.— On such part of the total income as 15 per cent of such income. represents the undistributed income of such company. D. In the case of.— every company, not being a public company, to which Section 23A of the Income-tax Act, 1922 (XI of 1922) applies-Rates (1) On the total income, excluding such 30 per cent of such income. part thereof as.— consists of any dividend, bonus or bonus shares to which sub-paragraph (2) or (3) of paragraph A of Part II applies but including such income as.— part of the total represents the undistributed income of such (2) company.— On such part of the total income as 25 per cent of such income. represents the undistributed income of such Company. E. In the case of every Company-On the part of the total income Nil. consisting of.— the amount of dividend, bonus of bonus shares to which sub-paragraph (2) or (3) of paragraph A of Part II applies. Provided that, for the purposes of paragraphs B, C and D, where a Company distributes dividends out of its income, profits and gains in respect of which it has obtained a rebate of one anna in the rupee under the proviso to paragraph B of Part I of the Fourth Schedule to the Finance Act, 1958 (XXII of 1958) , the Third Schedule to the Finance Act, 1957 (I of 1957), the Third Schedule to the Finance Act, 1956 (I of 1956), and the Third Schedule to the Finance (1955-56) Act, 1956 (XXX of 1956), an additional Income-tax at the rate of 6.25 per cent shall be levied on the amount of such dividend and such amount shall be deemed for the purposes of this proviso to be a part of the total income of the company of the year in which such distribution is made. Explanation-For the purposes of paragraph C and D, the expression “undistributed income” means the amount of undistributed income computed in accordance with the provisions of section 23A of the Income-tax Act, 1922 (XI of 1922). PART II
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