THE FINANCE ACT, 1975

(ACT NO. III OF 1975).
  [30th June, 1975]
 
   
     
     An Act to give effect to the financial proposals of the Government and to amend certain laws.
 
    WHEREAS it is expedient to make provisions to give effect to the financial proposals of the Government and to amend certain laws for the purposes hereinafter appearing;



It is hereby enacted as follows:-
   
 
 
 
  Short title and commencement  
1. (1) This Act may be called the Finance Act, 1975.



(2) Subject to the Provisional Collection of Taxes Act, 1931 (XVI of 1931), and the declaration made thereunder, this Act shall, except as otherwise provided, come into force on the 1st day of July, 1975.
 
 
 
  Amendment of Act XI of 1922  
2. The following amendments shall be made in the Income-tax Act, 1922 (XI of 1922), namely:-



(1) throughout the Act,-



(a) for the words “Commissioner of Income-tax” and “Commissioners of Income-tax” wherever occurring, the words “Commissioner of Taxes” and “Commissioners of Taxes” shall respectively be substituted;



(b) for the words “Assistant Commissioner”, “Assistant Commissioner of Income-tax” and “Assistant Commissioners of Income-tax”, wherever occurring, the words “Joint Commissioner”, “Joint Commissioner of Taxes” and “Joint Commissioners of Taxes” shall respectively be substituted;



(c) for the words “an Income-tax Officer”, “Income-tax Officer” and “Income-tax Officers” wherever occurring, the words “a Deputy Commissioner of Taxes”, “Deputy Commissioner of Taxes” and “Deputy Commissioners of Taxes” shall respectively be substituted;

(d) for the words “Assistant Income-tax Officer” and “Assistant Income-tax Officers” wherever occurring, the words “Extra Assistant Commissioner of Taxes” and “Extra Assistant Commissioners of Taxes” shall respectively be substituted; and



(e) for the words “Inspector of Income-tax” and “Inspectors of Income-tax” wherever occurring, the words “Inspector of Taxes” and “Inspectors of Taxes” shall respectively be substituted;



(2) in section 2,-



(a) for clause (3) the following shall be substituted, namely:-



“(3) “Appellate Joint Commissioner” means a person appointed to be an Appellate Joint Commissioner of Taxes under section 5;”;



(b) for clause (3A) the following shall be substituted, namely:-



“(3A) “Assistant Commissioner of Taxes” means a person appointed to be an Assistant Commissioner of Taxes under section 5;”;



(c) after clause (5B) the following new clause (5BB) shall be inserted, namely:-



“(5BB) “Deputy Commissioner of Taxes” means a person appointed to be a Deputy Commissioner of Taxes under section 5 and includes a person appointed to be a Special Officer, an Assistant Commissioner of Taxes, an Extra Assistant Commissioner of Taxes and an Examining Officer;”;



(d) after clause (6AAA), the following new clause (6AAAA) shall be inserted, namely:-



“(6AAAA) “Extra Assistant Commissioner of Taxes” means a person appointed to be an Extra Assistant Commissioner of Taxes under section 5;”;



(e) for clause (6D) the following shall be substituted, namely:-



“(6D) “Inspecting Joint Commissioner” means a person appointed to be an Inspecting Joint Commissioner of Taxes under section 5;”;

(f) clause (7) shall be omitted;



(3) in section 4, in sub-section (3),-



(a) clause (vii) shall be omitted;



(b) in clause (xii), in sub-clause (e), for the full-stop at the end a semi-colon shall be substituted; and



(c) after sub-clause (e), amended as aforesaid, the following new sub-clause (f) shall be inserted, namely:-



“(f) in respect of a building the erection of which is begun and completed at any time between the first day of July, 1975 and the thirtieth day of June, 1980 (both days inclusive) and the building is intended to be, and is actually, used for residential purposes only, for a period of five years from the date of such completion, subject to the following limits, namely:-
 
 
 
  Amendment of Act XXXII of 1934  
3. The amendments set out in the First Schedule to this Act shall be made in the Tariff Act, 1934 (XXXII of 1934).
 
 
 
  Amendment of Act I of 1944  
4. The following amendments shall be made in the Excises and Salt Act, 1944 (I of 1944), namely:-



(1) throughout the Act, for the words “Collector of Central Excise”, “Deputy Collector of Central Excise”, “Assistant Collector of Central Excise”, “Superintendent of Central Excise” and “National Excise Officer” wherever occurring, the words “Collector of Excise”, “Deputy Collector of Excise”, “Assistant Collector of Excise”, “Superintendent of Excise” and “Excise Officer” shall respectively be substituted; and



(2) the First Schedule to that Act shall be amended in the manner set out in the Second Schedule to this Act.
 
 
 
  Amendment of Act X of 1950  
5. The following amendments shall be made in the Estate Duty Act, 1950 (X of 1950), namely:-



(1) in section 67, in sub-section (3), for the words “Income-tax Officer” the words “Deputy Commissioner of Taxes” shall be substituted ; and



(2) in section 74B, in sub-section (1), for the words “Income-tax Officer” the words “Deputy Commissioner of Taxes” shall be substituted.
 
 
 
  Amendment in its past operation and repeal, EB Act XVI of 1950  
6. The Finance Act, 1950 (E.B. Act XVI of 1950), shall-



(1) in its operation during the period commencing the first day of July, 1973 and ending the thirtieth day of June, 1974, have effect and shall be deemed to have had effect as if in section 3, in sub-section (1), in clause (d), for sub-clause (iii) the following were substituted, namely:-



“(iii) (a) clearing, forwarding agents registered at a customs port – 2,000;



(b) clearing, forwarding agents registered at a land customs station or a customs-airport – 1,000”; and



(2) on the first day of July, 1975, stand repealed.
 
 
 
  Amendment of Act III of 1951  
7. The following amendments shall be made in the Sales Tax Act, 1951 (III of 1951), namely:-



(1) throughout the Act, unless otherwise specified,-



(a) for the words “Commissioner of Sales Tax” wherever occurring the words “Commissioner of Taxes” shall be substituted;



(b) for the words “Assistant Commissioner” and “Assistant Commissioner of Sales Tax” wherever occurring the words “Joint Commissioner” and “Joint Commissioner of Taxes” shall respectively be substituted; and



(c) for the words “Sales Tax Officer” wherever occurring the words “Deputy Commissioner of Taxes” shall be substituted;



(2) in section 2,-



(a) for clause (1), the following shall be substituted, namely:-



“(1) “Appellate Joint Commissioner” means a person exercising the powers of an Appellate Joint Commissioner of Taxes under section 5;”;



(b) after clause (4), the following new clause (4A) shall be inserted, namely:-



“(4A) “Deputy Commissioner of Taxes” means a person exercising the powers of a Deputy Commissioner of Taxes under section 5;”;



(c) for clause (7), the following shall be substituted, namely:-



“(7) “Inspecting Joint Commissioner” means a person exercising the powers of an Inspecting Joint Commissioner of Taxes under section 5;”;



(d) clause (10) shall be omitted;



(e) clause (17) shall be omitted;

(3) in section 3,-



(a) in sub-section (1), clauses (c) and (e) shall be omitted;



(b) in sub-section (3), clauses (iii) and (iv) shall be omitted;



(c) in sub-section (4), the comma, brackets, and letter “, (c)” shall be omitted;



(d) for sub-section (7), the following shall be substituted, namely:-



“(7) If any person other than the manufacturer or producer or importer or exporter hereinbefore mentioned acquires from or against any one of these persons the right to sell any goods as a result of the operation of law, the sale of such goods by him shall be taxable as if made by the manufacturer or producer or importer or exporter, as the case may be, and the person so selling shall be liable to pay the tax.”;



(4) for section 4, the following shall be substituted, namely:-



“4. Tax not payable on certain transactions.-Notwithstanding anything contained in section 3, the tax shall not be payable on goods purchased in taxable territories or on goods imported into the taxable territories by the manufacturer to whom a licence is issued under the proviso to sub-section (2) of section 8.



4A. Tax credit. There shall be given credit of the amount of tax paid at the time of purchase or import of goods by the licensed manufacturer or producer or importer, as the case may be, under the provisions of section 3 if such goods are partly manufactured goods and are actually used in the manufacture or production of goods which are subject to tax.”;



(5) in section 5,-



(a) for sub-section (1) , the following shall be substituted, namely:-



“(1) Every Commissioner of Taxes, Appellate Joint Commissioner of Taxes, Inspecting Joint Commissioner of Taxes, Deputy Commissioner of Taxes and Tax Recovery Officer under the Income- tax Act, 1922 (XI of 1922) shall exercise the powers of a Commissioner

of Taxes, Appellate Joint Commissioner of Taxes, Inspecting Joint Commissioner of Taxes, Deputy Commissioner of Taxes and Tax Recovery Officer, respectively, under this Act and in relation to the same area and cases as he exercises under the Income-tax Act, 1922.”;



(b) after sub-section (3), the following new sub-section (4) shall be added, namely:-



“(4) References in any Act, Ordinance, Regulation, Rule, Order, bye-law, deed, document or any other instrument of whatever nature to Commissioner of Sales Tax, Assistant Commissioner of Sales Tax and Sales Tax Officer shall, with their grammatical variations, except where the context otherwise requires, be construed as references respectively to Commissioner of Taxes, Joint Commissioner of Taxes and Deputy Commissioner of Taxes; and any such Act, Ordinance, Regulation, rule, Order, bye-law, deed, document or any other instrument of whatever nature shall have effect accordingly.”;



(6) in section 8, in sub-section (1), for the word “five” the word “fifty” shall be substituted;



(7) section 9 shall be omitted;



(8) in section 10, in sub-section (1), the words “and every licensed whole-seller” shall be omitted;



(9) in section 12, for sub-section (1), the following shall be substituted, namely:-



“(1) Subject to the provisions of sub-section (4) of section 3, every person liable to pay tax under clause (a) and clause (aa) of sub-section (1) of section 3 shall, in such manner as may be prescribed, pay the tax leviable under this Act before the end of the calendar month next succeeding the month in which the goods in respect of which tax is payable were sold.”;



(10) in section 19, in sub-section (1), the words “and every licensed whole-seller” shall be omitted;

(11) in section 20, the words “or by a licensed wholesaler” shall be omitted;



(12) in section 21, the words “not licensed under section 9” shall be omitted;



(13) in section 23, in sub-section (1A), the words “or licensed whole-seller” shall be omitted;



(14) in section 27, for sub-section (1) the following shall be substituted, namely:-



“(1) Where partly manufactured goods are purchased by a manufacturer or producer not licensed under section 8 and tax has been paid on the goods on importation or on any previous sale refund or credit of the tax so paid shall not be made to such manufacturer or producer.”;



(15) in section 29, the words “or a licensed whole-seller” shall be omitted;



(16) in section 31, the words “or a licensed whole-seller” shall be omitted.
 
 
 
  Amendment of Act XIV of 1963  
8. The following amendments shall be made in the Gift-tax Act, 1963 (XIV of 1963), namely:-



(1) throughout the Act, unless otherwise specified,-



(a) for the words “Commissioner of Gift-tax” and “Commissioners of Gift-tax” wherever occurring the words “Commissioner of Taxes” and “Commissioners of Taxes” shall respectively be substituted;



(b) for the words “Assistant Commissioner”, “Assistant Commissioners”, “Assistant Commissioner of Gift-tax” and “Assistant Commissioners of Gift-tax” wherever occurring the words “Joint Commissioner”, “Joint Commissioners”, “Joint Commissioner of Taxes” and “Joint Commissioners of Taxes” shall respectively be substituted; and



(c) for the words “Gift-tax Officer” and “Gift-tax Officers” wherever occurring the words “Deputy Commissioner of Taxes” and “Deputy Commissioners of Taxes” shall respectively be substituted;

(2) in section 2,-



(a) for clause (i) the following shall be substituted, namely:-



“(i) “Appellate Joint Commissioner” means a person empowered to exercise the powers of an Appellate Joint Commissioner of Taxes under section 8;”;



(b) after clause (vii), the following new clause (viia) shall be inserted, namely:-



“(viia) “Deputy Commissioner of Taxes” means a person empowered to exercise the powers of a Deputy Commissioner of Taxes under section 7;”;



(c) clause (xiii) shall be omitted;



(d) clause (xv) shall be omitted;



(e) for clause (xvi) the following shall be substituted, namely:-



“(xvi) “Inspecting Joint Commissioner of Taxes” means a person empowered to exercise the functions of an Inspecting Joint Commissioner of Taxes under section 10;”;



(3) in section 7, for sub-section (1) the following shall be substituted, namely:-



“Deputy Commissioner of Taxes and Tax Recovery Officers.- (1) Every Deputy Commissioner of Taxes and Tax Recovery Officer having jurisdiction or exercising powers as such under the Income-tax Act, 1922 (XI of 1922), in respect of any person shall perform the functions of a Deputy Commissioner of Taxes or, as the case may be, a Tax Recovery Officer under this Act in respect of that person.



Explanation. For the purposes of this sub-section, “Deputy Commissioner of Taxes and Tax Recovery Officer having jurisdiction”, in relation to a person who has no income assessable to income-tax under the Income-tax Act, means the Deputy Commissioner of Taxes or, as the case may be, the Tax Recovery Officer of the area in which that person resides.”;

(4) in Chapter III, after section 12, the following new section 12A shall be added, namely:-



“12A. Reference in respect of Gift-tax Authorities.-References in any Act, Ordinance, Regulation, Rule, Order, bye-law, deed, document or any other instrument of whatever nature to Commissioner of Gift-tax, Assistant Commissioner of Gift-tax and Gift-tax Officer shall, with grammatical variations, except where the context otherwise requires, be construed as references respectively to Commissioner of Taxes, Joint Commissioner of Taxes and Deputy Commissioner of Taxes; and any such Act, Ordinance, Regulation, rule, Order, bye-law, deed, document or any other instrument of whatever nature shall have effect accordingly.”;



(5) in section 33, for the words “and to Gift-tax Officer and Commissioner of Gift-tax instead of to Income-tax Officer and Commissioner of Income-tax” the words “and to Deputy Commissioner of Taxes and Commissioner of Taxes under this Act instead of to Deputy Commissioner of Taxes and Commissioner of Taxes under that Act” shall be substituted.
 
 
 
  Amendment of Act XV of 1963  
9. The following amendments shall be made in the Wealth-tax Act, 1963 (XV of 1963), namely:-



(1) throughout the Act, unless otherwise specified,-



(a) for the words “Commissioner of Wealth-tax” and “Commissioners of Wealth-tax” wherever occurring the words “Commissioner of Taxes” and “Commissioners of Taxes” shall respectively be substituted;



(b) for the words “Assistant Commissioner”, “Assistant Commissioners”, “Assistant Commissioner of Wealth-tax” and “Assistant Commissioners of Wealth-tax” wherever occurring the words “Joint Commissioner”, “Joint Commissioners”, “Joint Commissioner of Taxes” and “Joint Commissioners of Taxes” shall respectively be substituted; and



(c) for the words “Wealth-tax Officer” and “Wealth-tax Officers” wherever occurring the words “Deputy Commissioner of Taxes” and “Deputy Commissioners of Taxes” shall respectively be substituted;

(2) in section 2,-



(a) for clause (a) the following shall be substituted, namely:-



“(a) “Appellate Joint Commissioner” means a person empowered to exercise the powers of an Appellate Joint Commissioner of Taxes under section 9;”;



(b) after clause (h) the following new clause (hh) shall be added, namely:-



“(hh) “Deputy Commissioner of Taxes” means a person empowered to exercise the powers of the Deputy Commissioner of Taxes under section 8;”;



(c) clause (k) shall be omitted;



(d) for clause (1) the following shall be substituted, namely:-



“(1) “Inspecting Joint Commissioner of Taxes” means a person empowered to exercise the functions of an Inspecting Joint Commissioner of Taxes under section 11;”;



(e) clause (r) shall be omitted;



(3) in section 8, for sub-section (1) the following shall be substituted, namely:-



“(1) Every Deputy Commissioner of Taxes and Tax Recovery Officer having jurisdiction or exercising powers as such under the Income-tax Act in respect of any individual, Hindu-undivided family or company shall perform the functions of a Deputy Commissioner of Taxes or, as the case may be, a Tax Recovery Officer under this Act in respect of such individual, Hindu-undivided family or company.



Explanation. For the purpose of this sub-section, “Deputy Commissioner of Taxes and Tax Recovery Officer having jurisdiction”, in relation to an individual or Hindu-undivided family who has no income assessable to income-tax under the Income-tax Act, means the Deputy Commissioner of Taxes or, as the case may be, the Tax Recovery Officer of the area in which that individual or Hindu-undivided family resides.”;

(4) in Chapter III, after section 13, the following new section 13A shall be added, namely:-



“13A. Reference in respect of Wealth-tax authorities.- References in any Act, Ordinance, Regulation, Rule, Order, bye-law, deed, document or any other instrument of whatever nature to Commissioner of Wealth-tax, Assistant Commissioner of Wealth-tax and Wealth-tax Officer shall, with grammatical variations, except where the context otherwise requires, be construed as references respectively to Commissioner of Taxes, Joint Commissioner of Taxes and Deputy Commissioner of Taxes; and any such Act, Ordinance, Regulation, Rule, Order, bye-law, deed, document or any other instrument of whatever nature shall have effect accordingly.”;



(5) in section 31A, for the words “Income-tax Officer” the words “Deputy Commissioner of Taxes”, and for the words “Wealth-tax Officer” the words “Deputy Commissioner of Taxes under this Act” shall respectively be substituted;



(6) in section 32 for the words “and to Wealth-tax Officer and Commissioner of Wealth-tax instead of to Income-tax Officer and Commissioner of Income-tax” the words “and to Deputy Commissioner of Taxes and Commissioner of Taxes under this Act instead of to Deputy Commissioner of Taxes and Commissioner of Taxes under that Act” shall be substituted;



(7) for the Schedule the following shall be substituted, namely:-

“THE SCHEDULE

(See section 3)



RATES OF WEALTH-TAX



1. On the first Taka four lakhs of net wealth or, where an assessee, being a person owning and occupying a house for purposes of his own residence, exercises the option to have the value of such house being excluded from his assets, on the first Taka three lakhs of net wealth. .. Nil.



2. On the next Taka two lakhs of net wealth .. 1%

3. On the next Taka five lakhs of net wealth



4. On the next Taka five lakhs of net wealth



5. On the next Taka five lakhs of net wealth



6. On the balance of net wealth

.. 1½ %



.. 2%



.. 2½ %



.. 3%”.
 
 
 
  Amendment of Act XLIV of 1974  
10. In the Finance Act, 1974 (XLIV of 1974),-



(1) sections 14, 15,16, 17,20, 21 and 25 shall be repealed;



(2) in section 26, for the words, figures and commas “tax or toll leviable under sections 14, 15, 16, 17, 20, 21 and 22” the words and figure “cess under section 22” shall be substituted; and



(3) in section 27, for sub-section (1) the following shall be substituted, namely:-



“(1) The Government may, by notification in the official Gazette, make rules to provide for the procedure for the assessment, collection and payment of any cess leviable under section 22; and such rules may provide for matters relating to-



(a) the person by whom the cess shall be payable;



(b) the time and manner of such payment;



(c) penalty for default or delay in the payment of the cess of an amount not exceeding the amount of the cess; and



(d) such other matters as may be necessary for the efficient assessment and collection of the cess.”; and



(4) the Third Schedule shall be repealed.
 
 
 
  Income-tax and Super-tax  
11. (1) Subject to the provisions of sub-sections (2), (3), (4) and (5), in making any assessment for the year beginning on the first day of July, 1975,-

(a) income-tax shall be charged at the rates specified in Part I of the Third Schedule, and

(b) the rates of super-tax shall, for the purposes of section 55 of the Income-tax Act, 1922 (XI of 1922), be those specified in Part II of the Third Schedule.



(2) In making any assessment for the year beginning on the first day of July, 1975,-



(a) where the total income of an assessee, not being a company, includes any income chargeable under the head “salaries” or any income chargeable under the head “interest on securities” the income-tax payable by the assessee on that part of his total income which consists of such inclusion shall be an amount bearing to the total amount of income-tax payable according to the rates applicable under the operation of the Finance Act, 1974 (XLIV of 1974), on his total income the same proportion as the amount of such inclusion bears to his total income; and



(b) where the total income of a company includes any profits and gains from life insurance business, the super-tax payable by the company shall be reduced by an amount equal to 12.5 per cent. of that part of its total income which consists of such inclusion.



(3) In making any assessment for the year beginning on the first day of July, 1975, where the assessee is a co-operative society, the tax shall be payable at the rates specified in paragraph A of Part I, or paragraph B of Part I and paragraph A of Part II of the Third Schedule as if the assessee were a company to which the proviso to sub-paragraph (1) of paragraph A of the said Part II applied, whichever treatment is more beneficial to the assessee:

Provided that in calculating for the purposes of this sub-section, the amount of income-tax at the rates specified in paragraph A of Part I of the Third Schedule, no deduction in respect of any allowance or sums referred to in clause (i) of the proviso to the said paragraph shall be made.

(4) (a) In making any assessment for the year beginning on the first day of July, 1975, where the total income of an assessee, not being a company to which the proviso to sub-paragraph (1) of paragraph A of Part II of the Third Schedule does not apply, includes any profits and gains derived from the export of goods out of Bangladesh, income-tax and super-tax, if

any, payable by him in respect of such profits and gains shall, subject to the provisions of clauses (b) and (c) be reduced by an amount computed in the manner specified hereunder:-

Amount.

15 per cent. of the income-tax and super-tax, if any, attributable to export sales.

Plus an additional 1 per cent. for every increase of 10 per cent. in export sales over those of the preceding year, subject to an overall maximum of 25 per cent.

Minus 1 per cent. for every decrease of 10 per cent. in export sales over those of the preceding year, subject to an overall minimum of 10 per cent.

Nil.

15 per cent. of the income-tax and super-tax, if any, attributable to export sales.

20 per cent. of the income-tax and super-tax, if any, attributable to export sales.

25 per cent. of the income-tax and super-tax, if any, attributable to export sales:



(i) Where the goods exported abroad had not been manufactured by the assessee who exported them:

(a) and where the export sales during the relevant year exceed the export sales of the preceding year.

(b) and where the export sales during the relevant year do not exceed the export sales of the preceding year.

(ii) Where the goods exported had been manufactured by the assessee who had exported them:

(a) where the export sales do not exceed 10 per cent. of the total sales.

(b) where the export sales exceed 10 per cent. but do not exceed 20 per cent. of the total sales.

(c) where the export sales exceed 20 per cent. but do not exceed 30 per cent. of the total sales.

(d) where the export sales exceed 30 per cent. of the total sales.

Provided that in the case of a registered firm super-tax payable by it under paragraph C of Part II of the Third Schedule shall be reduced under this clause by an amount calculated on the basis of the income-tax payable on its total income under paragraph A of Part I had it been the total income of an unregistered firm;

(b) Nothing contained in clause (a) shall apply in respect of the following goods or class of goods, namely:-



(i) tea,



(ii) raw jute,



(iii) jute manufacture,



(iv) such other goods as may be notified by the National Board of Revenue from time to time;



(c) The National Board of Revenue may make rules providing for the computation of profits and the tax attributable to export sales and for such other matters as may be necessary to give effect to the provisions of this sub-section.



(5) In cases to which section 17 of the Income-tax Act, 1922 (XI of 1922), applies the tax chargeable shall be determined as provided in that section, but with reference to the rates imposed by sub-section (1), and in accordance, where applicable, with the provisions of sub-section (2).



(6) For the purposes of making deduction of tax under section 18 of the Income-tax Act, 1922 (XI of 1922), the rates specified in Part I and Part II of the Third Schedule shall apply as respects the year beginning on the first day of July, 1975, and ending on the thirtieth day of June, 1976.



(7) For the purposes of this section and of the rates of tax imposed thereby, the expression “total income” means total income as determined for the purposes of income-tax or super-tax, as the case may be, in accordance with provisions of the Income-tax Act, 1922 (XI of 1922); and the expression “public company” means a company-



(i) in which not less than fifty per cent. of the shares are held by the Government, or



(ii) whose shares were the subject of dealings in a registered stock exchange in the taxable territories at any time during the previous year and remained listed on the stock exchange till the close of that year.
 
 
 
  Surcharge under the Income-tax Act, 1922 (XI of 1922)  
12. Surcharge under the Income-tax Act, 1922 (XI of 1922), shall be charged as respects any assessment for the year beginning on the first day of July, 1975, at the rates specified in Part III of the Third Schedule to this Act.
 
 
 
 
 

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