Income Tax Manual Part-II – Rule 1-10

[Published in the Bangladesh Gazette, Extraordinary dated the 14th January,1985.]

GOVERNMENT OF THE PEOPLE’S REPUBLIC OF BANGLADESH

NATIONAL BOARD OF REVENUE
Dhaka, the 14th January, 1985

No. S.R.O. 39-L/85.—In exercise of the powers conferred by section 185 of the Income Tax Ordinance, 1984 (XXXVI of 1984), read with sub-section (4) of that section, the National Board of Revenue is pleased to make the following rules, namely :—

THE INCOME TAX RULES, 1984

1. Short title.

These rules may be called the Income Tax Rules, 1984.

2. Definition.

In these rules, unless there is anything repugnant in the subject or context, –

(a) “certificate” means a certificate forwarded to the Tax Recovery Officer by the Deputy Commissioner of Taxes, issued under section 138 of the Ordinance, for the recovery of arrears under these rules;

(b) “defaulter” means the assessee mentioned in certificate;

(c) “execution”, in relation to a certificate, means steps taken for the recovery of arrears under these rules in pursuance of a certificate;

(d) “officer” means a “public officer” as defined in the Code of Civil Procedure, 1908 (Act V of 1908), or a “public servant” as defined in section 21 of the penal Code (Act XIV of 1860), including a person subordinate to the Tax Recovery Officer whom the Tax Recovery Officer authorizes to execute an order of attachment or sale or arrest:

(e) “Ordinance” means the Income Tax Ordinance, 1984 (XXXVI of 1984);

(f) “property” includes movable or immovable property, including shares, debentures, or interest in any company or any actionable claim;

(g) “section” means a section of the Ordinance;

(h) “share in a company” includes stock, debenture stock, debentures and donds.

[3]Deleted F. A. 1997

[4]Deleted F. A. 1997

[5]Deleted F. A. 1997

[6]Deleted F. A. 1997

[7]Deleted F. A. 1997

8. Maintenance of accounts by doctors, legal practitioners, etc.-

(1) Subject to the provisions of sub-rules (6) and (7), accounts shall be maintained by medical practitioners, whether known as doctors, surgeons, physicians, dentists, psychiatrists, homoeopaths, tabibs, vaids, veterinary surgeon or by any other name (other than medical practitioners, who do not make any separate charge for consultation but make a charge for the medicines supplied by them), and by legal practitioners (including income tax practitioners), accountant,, auditors,
architects and engineers in the following forms, namely :-

Form A(1)
CASE REGISTER

To be maintained by medical practitioners, that is, doctors, surgeons, physicians, dentists, psychiatrists, homoeopaths, tabibs, vaids veterinary surgeons or by any other name (other than medical practitioners, who do not make any separate charge for consultation but make a charge for the medicines supplied by them).

Sl. No Patient’s Name Nature of treatment (a) Consultation,
(b) Surgical treatment
(c) Injection,
(d) Visit, etc.
Treatment charges. Remarks.
1 2 3 4 5
      Taka  

Form A(2)
CASE REGISTER

[To be maintained by legal practitioners (including income tax practitioner.), accountants, auditors, architects and engineers].

Sl. No. Name and address of the client. Brief particu­lars of the case (Confi­dential details are not required). Amount of fee, remuneration, etc., received. Remarks.
Date Whether by Whether in full or part settlement.
Cash Taka Cheque Taka Total Taka
                 

Form B
PAYMENTS BOOK

Date…………………

 

Receipts
Date in Case Register. Amount. Total. Remarks.
Cash. Cheque.
1 2 3 4 5
  Taka Taka Taka  

 

Disbursements

 

Particulars of expenses. Voucher No. or Cheque No. Amount Total. Remarks.
1 2 3 4 5 6
    Taka Taka Taka  

Certified that the above account is &complete and true record of—–

(i) all amounts received by me/us or on my/our behalf due to me/us on account of the
income, profits and gains from business or profession;

(ii) all expenditure incurred by me/us in connection with my/our business or profession and that all items of expenditure listed in the above account are supported by vouchers/cash memos, etc., receipts of which have been cancelled and filed separately.

 

Signature: ………………………….
Date : ……………………………….

 

FORM C
RECEIPT BOOK

 

Book No. ……….. Page No. ………… Book No. ……..Page No………….
Date……………….. Date …………..
Name and address of the client……………………………………………. Received with thanks the sum of taka…………………………..(Taka …………………………)
Page No. of Case Register…………… by Cheque/Bank draft No. ………
Page No. of Payments Book…………… dated………………on ………………………./cash ……….
Amount received(Taka…………………….) from …………………………
by Cheque/Bank draft No dated on ……. on account of …………………./cash ……….
Signature …………………….. Signature: ………………………….

(2) Particulars of the type of cases in which fees at reduced rates are charged, or no fees are charged at all due to the indigent circumstances of the patient or his guardian or any other cause by a medical practitioner shall be recorded in the remarks column of the Case Register in Form A (1).

(3) Particulars of the type of cases in which fees at a reduced rate are charged, or no fees are charged at all due to the indigent circumstances of the client 01 any other cause by a legal practitioner, accountant, auditor, archi­tect or engineer shall be recorded in the remarks column of the Case Register in Form A (2).

(4) Where a separate nursing or maternity home is maintained by a medica.1 practitioner, an auxiliary register showing the particulars of the charges made shall be maintained giving inter aliathe name and address of the patient, the nature of the treatment, the room (diet and/or lodging) charges and other fees charged from him, if any.

(5) In the case of medical practitioners, a receipt in Form C may be issued only when demanded by the patient or his guardian.

(6) The accounts in the forms specified in sub-rule (1) shall be maintained with effect from the income years beginning on or after the first day of July 1984.

(7) Nothing contained in this rule shall be construed as preventing an assessee from maintaining any accounts in addition to those specified in sub-rule (1) or adding such further columns or particulars in the forms referred to therein as he may think fit to maintain or add to suit his own requirements.

[8A. Maintenance of account in a bank by the owner of house property.-

(1) Subject to the provisions of sub-rules (2) and (3), where any person having ownership or possession of any property, whether used for commercial or residential purposes, receives any sum or aggregate of sums exceeding taka 25,000/- (twenty five thousand) per month in respect of any rent of such house property or its unit, such person shall operate a separate bank account in any scheduled bank for the purpose of depositing rent of the house property or its unit and deposit such rent or any advance received or receivable from such house property or its unit in such bank account.

(2) Where the person having ownership or possession mentioned in sub-rule (1) has one or more tenants and receives the sum or aggregate of sums exceeding taka 25,000/- (twenty five thousand) per month, he shall maintain a separate register and record regarding particulars of the tenant or tenants and the sum or sums received or receivable.

(3) Nothing contained in this rule shall prevent such person from recording any other particular in the register as specified in sub-rule (2).]Added F. A. 2014

9.Rate of exchange.

The rate of exchange for the calculation of the value in taka of any income chargeable under the head “Salaries” which is payable to the assessee in a foreign currency shall be the rate of exchange determined or recognized by the Government for the conversion of foreign currency into Bangladesh currency.

10.Particulars to be furnished on interest on securities by a person other than the Government.-

In the case of income chargeable under the head “Inte­rest on securities”, where the deduction is not made by or on behalf of the Government, the parson responsible for paying the interest shall, at the times of deduction, send to the Deputy Commissioner of Taxes concerned a state­ment showing the following particulars:—

(i) Description of securities,

(ii) Numbers of securities,

(iii) Dates of securities,

(iv) Amounts of securities,

(v) Period for which interest is drawn,

(vi Amount of interest,

(vii) Amount of tax; and

(viii) Date on which tax was deducted.


[3. Time limit for registration of firms.—

The application for registration of a firm under section 111 of the Ordinance shall be made within one month of the end of the income year relevant to the assessment year for which regis­tration is sought:

Provided that the Deputy Commissioner of Taxes may entertain an applica­tion made after the expiry of this time limit if he is satisfied that the firm was prevented by sufficient cause from making the application within- the specified time.]Deleted F. A. 1997

[4. Form of application.—

The application referred to in rule 3 shall be made in the form annexed to this rule and shall be signed and verified by all the partners (not being minors) personally and by the legal representative of any partner who is deceased.

Form of application for registration of a firm under section 111(2) of the idcmm
Tax Ordinance, 1984.

To
The Deputy Commissioner of Taxes,

—————————————–

Date……………………………………..
Assessment year…………………….
Name ofthe firm:…………………….
Address…………………………………

1.We hereby apply for registration of our firm under section 111(2) The Income Tax Ordinance, 1984 (XXXVI of 1984), for the assessment year

2. A certified copy of the instrument of partnership by which the firm is constituted together with a copy thereof is enclosed. The required particulars are given in the attached Schedule.

3. We do hereby certify that the profits (or loss) of the income year ending on…. .. .. ..have been divided among or credited (and in the case of loss, debited) to the accounts of partners as shown in the attached Schedule,

Names of partners and addresses :

 

(1) ………………………..(Signatures) (1) ………………….
(2) ……………………….. (2) ………………….
(3) ……………………….. (3) ………………….
(4) ……………………….. (4) ………………….

 

VERIFICATION

We declare that to the best of our knowledge and belief the information given is the above declaration is correct and complete.

 

Signature of partners:(1) ……………………………………………..
(2) ……………………………………………..
(3) ……………………………………………..
(4)………………………………………………

Note:- This application and the verification must be signed by all the partners (not being minors) and by the legal representative of any deceased partner.

 

THE SCHEDULE

Particulars of apportionment of income, profits and gains (or loss) of the business or profession in the income year ending on……………………………between the partners who were entitled to share in such income, profits and gains (or loss).

 

Sl. No. Names of partners. Address. Interest on capita) (or loans), if any [see Note (1)]. Salary, commis­sion (or other remuneration) from the firm [ see Note(l) Share in the balance of profits (or loss) [see Note (2)]. Remarks
1 2 3 4 5 6 7
             

Notes,—(1) If the interest, salary, commission/or other remuneration is payable or allowable only if there are sufficient profits available, this fact should be noted against the appropriate item in the Remarks col. inn.

(2) Where any partner is entitled to share in the profits but not liable to bear a similar proportion of any losses, this fact should be noted in the Remarks colomn.]Deleted F. A. 1997

[5. Order regarding registration of firms.—

(1) If the Deputy Commissioner of Taxes registers the firm, he shall pass an order in writing accordingly and shall furnish a copy of such order to the applicants.

(2) If the Deputy Commissioner of Taxes is not go satisfied, he shall pass an order in writing refusing to register the firm and shall furnish a copy of such order to the applicants.]Deleted F. A. 1997

[6. Form of declaration of partners of a firm.—

(1) For the purpose of section 111(6) proviso (ii) of the Ordinance, the declaration shall be made and verified in the form annexed hareto,

Form of declaration under section 111(6) proviso (ii) of the Income Tax Ordinance, 1984.

To

The Deputy Commissioner of Taxes,
…………………………………………..
Date. …………………………………..Assessment year. ……………………..
…………………………………………….
Name of the Firm………………………
Address :………………………………..

1. We hereby declare that :

Our firm was granted registration under section 111 of the Income Tax Ordinance, 1984 (XXXVI of 1984), for the assessment year…………….

Or,

The application for the registration of the firm was made to the Deputy Commissioner of Taxes on……….. for the assessment year………….but no order granting/refusing registration has been passed by the Deputy Commissioner of Taxes concerned.

2. We hereby declare that the constitution of the firm and the individual shares of the partners as specified in the instrument of partnership certified copy of which was previously filed with the said Deputy Commissioner of Taxes has remained unchanged.

3. We do hereby further declare that the profits (or loss) of the income year have been divided among or credited (and, in the case of loss, debited) to the accounts of partners as shown in the attached Schedule.

Names of partners and addresses :

(1) …………………………………………………………………………………………………………………………(Signatures)(1)…………………………………………………………………………………………………………………
(2) ………………………………………………………………………………………………………………………….(2) …………………………………………………………………………………………………………………………………
(3) ………………………………………………………………………………………………………………………….(3) ………………………………………………………………………………………………………………………………….
(4) ………………………………………………………………………………………………………………………….(4) ………………………………………………………………………………………………………………………………….

VERIFICATION

We declare that to the best of our knowledge and belief the information given in the above declaration is correct and complete.

Signatures of partners:(1) ……………………………………………………
(2)……………………………………………………
(3)……………………………………………………
(4) ……………………………………………………

Note—

This declaration and verification must be signed by all the partners (not being minors) personally and by the legal representative of any deceased partner.

THE SCHEDULE

Particulars of apportionment of income, profits and gains
(or loss) of the business or profession in the income year
ending on…………… between the partners who
were entitled to share in such income,
profits and gains (or loss).

 

Sl.No. Name of partners. Address. Interest on capital (Or loans), if any [see Note (1)]. Salary, com­mission (or other remune­ration) from the firm [see Note (2) Share in balance of profits (or loss) [see Note (2)]. Remarks.
1 2 3 4 5 6 7
             

Notes–

(1) If the interest, salary, commission/or other remuneration is payable or allowable only if there are sufficient profits available, this fact should be noted against the appropriate item in the Remarks column.

(2) Where any partner is entitled to share in the profits but not liable to bear a similar proportion of any losses, this fact should be noted in the Remarks column.

(2) The declaration mentioned in sub-rule (1)shall be submitted within the date specified for the submission of the return of income under section 75(2) (c) (ii) of the Ordinance.] Deleted F. A. 1997

[7. Firms to maintain accounts, etc.—

(1) The firms applying for registration must maintain books of accounts.

(2) The firms seeking registration having capital exceeding taka5 lakh irrespective of their turnover or receipts, must get their books of audited by Chartered Accountants:

Provided that, in the case of a firm of Chartered of accounts audited by the firm itself would constitute a this rule]. Deleted F. A. 1997