You are on page 1of 20

"[46A.

Exemption from tax of newly established industrial


undertakings, etc. in certain cases.
(1)

Subject to the provisions o f this Ordinance, ""[profits and


gains under section 28 from] an industrial undertaking,
tourist industry or physical infrastructure facility j
(hereinafter referred to as the said undertaking) set-up in
Bangladesh between the first day o f July, 1995 and the
thirtieth day o f ""[June, 2008] (both days inclusive) shall '
be exempt from the tax payable under this Ordinance for
the period specified below
(a)

i f the said undertaking is set-up in '[Dhaka and


Chittagong divisions], excluding the hill districts
o f Rangamati, Bandarban and Khagrachari, for a
period o f ""[four] years beginning w i t h the month
o f commencement o f commercial production or
operation o f the said undertaking;

/. T. Manual, Part-I

(b)

121

Sec. 46A

i f the said undertaking is set-up in '[Rajshahi,


Khulna, Sylhet and Barisal divisions] and the hill
districts
of
Rangamati,
Bandarban
and
Khagrachari, for a period o f "[six] years beginning
with the month o f commencement o f commercial
production or operation o f the said undertaking.]

^[Explanation.For
the purpose o f this section,
industrial undertaking, tourist industry or physical
infrastructure facility does not include expansion o f an
existing undertaking.]
[(lA)

industrial undertaking, tourist industry, or physical


infrastructure facility does not include expansion o f an
existing undertaking for the purpose o f this section,
(i)
"industrial undertaking" means an
industry
engaged in the production o f textile, textile
machinery, high value garments, pharmaceuticals,
melamine, plastic products, ceramics, sanitary
ware, steel from iron ore, fertilizer, insecticide &
pesticide, computer hardware, petro-chemicals,
basic raw
materials
o f drugs,
chemicals,
pharmaceuticals
agricultural
machine,
ship
building, boilers, compressors and any other
category
o f industrial undertaking
as
the
Government may by notification in the official
Gazette speciiy;
Explanation:'high
value
overcoats, jackets and suits.
(ii)

garments'

mean

"physical infrastructure facility" means sea or


river port, container terminals, internal container
depot, container freight station, L N G terminal and
transmission line, C N G terminal and transmission
line, gas pipe line, flyover, large water treatment
plant & supply through pipe line, waste treatment

122

/. T. Manual, Part-I

Sec. 46A

plant, [solar energy plant,] export processing zone


and any other category o f physical infrastructure
facility as the Government may by notification in
the official Gazette specify;
(iii)

(2)

"tourist industry" means residential hotel having


facility o f three star or more and any other
category o f tourist industry facility as the
Government may by notification in the official
Gazette specify.]

The exemption under sub-section (1) shall apply to the


said undertaking i f it fulfils the f o l l o w i n g conditions,
namely:
(a)
that the said undertaking is owned and managed
by(i)
a body corporate established by or under an
Act o f Parliament with its head office in
Bangladesh; or
(ii)

a company as defined in the Companies Act,


1913 ( V I I o f 1913) or ( < ^ \
i^^8
(iS>s.8
-iV^K ^5nt^) w i t h its registered
office
in Bangladesh
and
having a
subscribed and paid up capital o f not less
than one lakh taka on the date of
commencement o f commercial production
or operation;

"[(b) that the said undertaking is engaged i n


(i)
the manufacture o f goods or materials or the
subjection o f goods or materials to any such
process, or the exploration and extraction of
mineral
resources and
processing
of
agricultural products;
(ii)

providing, on commercial basis, physical


infrastructure facility;

123

/. T. Manual, Part-I

(iii)

Sec. 46A

tourist industry as defined in the explanation


to section 46.

Explanation.For
the purposes o f this section,
"physical infrastructure facility" means generation,
transformation,
conversion,
transmission
and
distribution or supply o f electrical energy or
hydraulic power, or road, highway, bridge, airport,
or the system o f railway or telecommunication, or
such other public facility o f similar nature as may
be specified by the Board in this behalf by
notification in the official Gazette;]
'[(c)

that thirty per cent o f the income exempted under


sub-section (1) is invested in the said undertaking or
in any new industrial undertakings during the
period o f exemption or within one year from the
end o f the period to which the exemption under that
sub-section relates and in addition to that another
ten per cent o f the income exempted under subsection (1) is invested in each year before the expiry
o f three months from the end o f the income year in
the purchase o f shares o f a company listed with any
stock exchange, failing which the income so
exempted shall, notwithstanding the provisions o f
this Ordinance, be subject to tax in the assessment
year for which the exemption was allowed:
Provided that the quantum of investment
referred to in this clause shall be reduced by the
amount of dividend, if any, declared by the
company enjoying tax exemption under this section:
^[Provided further that, the provision for
purchase of shares of a company listed with any
stock exchange referred to in this clause shall not
be applicable to ready made garments industry, if it
re-invested forty percent of the income exempted

T. Manual, Part-I

124

Sec. 46A

under sub-section (1) in the said undertaking or in


any new industrial undertaking during the period of
exemption or within one year from the end of the
period to which the exemption under that subsection relates.]
(d)

that the said undertaking is not formed by splitting


up or by reconstruction or reconstitution of
business already in existence or by transfer to a
new business o f any machinery or plant used in
business which was being carried on in
Bangladesh at any time before the commencement
o f the new business;

(e)

that the said undertaking is approved, and during


the relevant income year, stands approved by the
Board for the purposes o f this section;

(f)

that the application in the prescribed form for


approval for the purposes o f this section, as
verified in the prescribed manner, is made to the
Board ' [ w i t h i n six months from the end o f the
month]
of
commencement
of
commercial
production or operation.

^[(2A) Notwithstanding anything contained in this section


(a)
where a said undertaking enjoying exemption of
tax under this section is engaged in any
commercial transaction with another undertaking
or company having one or more common sponsor
directors, and
(b)

during the course o f making an assessment o f the


said undertaking i f the Deputy Commissioner of
Taxes is satisfied that the said undertaking has
purchased or sold goods at higher or lower price
in comparison to the market price w i t h intent to
reduce the income o f another undertaking or
company

/. T. Manual, Part-I

125

Sec. 46A

the exemption o f tax o f that said undertaking shall be


deemed to have been withdrawn for that assessment year
in which such transaction is made.]
(3)

The Board shall give its decision on an application made


under clause (f) o f sub-section (2) within '[forty-five
days] from the date o f receipt o f the application by the
Board, failing which the undertaking shall be deemed to
have been approved by the Board for the purposes o f this
section:
^[Provided that the Board shall not reject any
application made under this section unless the applicant
is given a reasonable opportunity of being heard.]

(4)

The Board may, on an application o f any person


aggrieved by any decision or order passed under subsection (3), i f the application is made within four months
o f the receipt o f such decision or order, review the
previous decision or order and pass such order in
relation thereto as i t thinks fit.

(5)

The profits and gains o f the undertaking to which this


section applies shall be computed in the same manner as
is applicable to income chargeable under the head
"Income from business or profession":
^[Provided that in respect of depreciation, only the
allowances for
normal depreciation
specified
in
paragraph 3 of the Third Schedule shall be allowed].

(6)

The profits and gains o f the said undertaking shall be


computed separately from other income, profits and
gains o f the assessee, i f any, and where the assessee
sustains a loss from such undertaking it shall be carried
forward and set o f f against the profits and gains o f the
said undertaking for the following year and where it
cannot be w h o l l y set off, the amount o f the loss not so
set off, shall be carried forward for the next year and so

/. T. Manual, Part-I

126

Sec. 46A

on, but no loss shall be carried forward beyond the


period specified by the Board in the order issued under
sub-section (3) or (4).
(7)

Unless otherwise specified by the Government, nothing


contained in this section shall be so construed as to
exempt the following from tax chargeable under this
section:
(a)
any dividend paid, credited or distributed or
deemed to have been paid, credited or distributed
by a company to its share-holders out o f the profits
and gains;
(b)

any income o f the said undertaking classifiable as


"Capital gains" chargeable under the provisions of
section 3 1 ; ' [and]

^[(c)

any income o f the said undertaking resulting from


disallowance made under section 30 *[.

(d)

dividend distribution tax under section 16D.]

(8)

Where any exemption is allowed under this section and


in the course o f making assessment, the Deputy
Commissioner o f Taxes is satisfied that any one or more
o f the conditions specified in this section are not
fulfilled, the exemption w i l l stand withdrawn for the
relevant assessment year and the Deputy Commissioner
o f Taxes shall determine the tax payable for such year.

(9)

A n y such undertaking approved under this section may,


not latter than one year from the date o f approval, apply
in w r i t i n g to the Board for the cancellation o f such
approval, and the Board may pass such orders thereon as
it may deem fit.

(10)

Notwithstanding anything contained in this section, the


Board may, in the public interest, cancel or suspend fully
or partially any exemption allowed under this section.

/. T. Manual, Part-I

(11)

127

Sec. 46A, 46B

The Board may make rules regulating the procedure for


the grant o f approval under sub-section (3), review under
sub-section (4) and furnishing o f information regarding
payment o f other taxes by the said undertaking and any
other matters connected with or incidental to operation
o f this section.

[46B.Exemption from tax of newly established industrial


undertakings set up between the period of July, 2011 and
^[June, [2019]], etc. in certain cases.
(1)

Subject to the provisions o f this Ordinance, income, profits


and gains under section 28 from an industrial undertaking
(hereinafter referred to as the said undertaking) set-up in
Bangladesh between the first day o f July, 2011 and the
''[thirtieth day o f June, '[2019]] (both days inclusive) shall
be exempted from the tax payable under this Ordinance for
the period, and at the rate, specified below:
i f the said undertaking is set-up i n
^[(i) Dhaka and Chittagong divisions, excluding Dhaka,
Narayanganj, Gazipur, Chittagong, Rangamati,
Bandarban and Khagrachari districts, for a period
o f five years beginning w i t h the month o f
commencement o f commercial production o f the
said undertaking:
Period of Exemption

Rate of Exemption

For the first and second year


For the third year

60% o f income

100% o f income

For the fourth year

40% o f income

For the fifth year

20% o f income ;

^[(ii) Rajshahi, Khulna, Sylhet, Barisal and Rangpur


divisions (excluding City Corporation area) and

128

/. T. Manual, Part-I

Sec. 46B

Rangamati, Bandarban and Khagrachari districts,


for a period o f ten years beginning w i t h the month
o f commencement o f commercial production o f
the said undertaking:
Period of Exemption

Rate of Exemption

For the
For the
For the
For the
For the
For the

100% o f income
70% o f income
55% o f income
40% o f income
25% o f income
20% o f income:

first and second year


third year
fourth year
fifth year
sixth year
seventh to tenth year

Provided that any industry engaged in the production


of item as referred to in clause (e) or clause (I) of sub
section (2) shall be entitled to exemption fi'om tax under
the provision of this section even if it is set up in the
districts of Dhaka, Gazipur, Narayanganj or Chittagong.]
(2)

For the purpose o f this section


"industrial undertaking" means an industry engaged in
the production of
(a)
active pharmaceuticals ingredient industry and radio
pharmaceuticals industry;
(b)

barrier contraceptive and rubber latex;

(c)

basic chemicals or dyes and chemicals;

(d)

basic ingredients o f electronic industry (e.g


resistance, capacitor, transistor, integrator circuit);

(e)

bio-fertilizer;

(f)

biotechnology;

(g)

boilers;

'[(gg)brick made o f automatic Hybrid Hoffmann Kiln


technology;]
(h)

compressors;

129

/. T. Manual, Part-I

Sec. 46B

(i)

computer hardware;

(j)

energy efficient appliances;

(k)

insecticide or pesticide;

(1)

petro-chemicals;

(m)

pharmaceuticals;

(n)

processing o f locally produced fruits and vegetables;

(o)

radio-active (diffusion) application industry (e.g.


developing quality or decaying polymer or
preservation o f food or disinfecting medicinal
equipment);

(p)

textile machinery;

(q)

tissue grafting; or

(r)

any other category o f industrial undertaking as the


Government may, by notification in the official
Gazette, specify.

(3)

Notwithstanding anything contained in sub-section (2), for


the purpose o f this section industrial undertaking shall not
include expansion o f such an existing undertaking.

(4)

The exemption under sub-section (1) shall apply to the


said undertaking i f it fulfils the following conditions,
namely:
(a)
that the said undertaking is owned and managed
by(i)
a body corporate established by or under any
law for the time being in force with its head \
office in Bangladesh; or
I
\

(ii)

a company as defined in C<PMI^ ^srft^,


:
(i>S.!8 ^^iW? i l r -i^'v Wtt^) with its registered
office
in Bangladesh
and
having a
subscribed and paid up capital o f not less
than two m i l l i o n taka on the date o f
commencement o f commercial production;

/. T. Manual, Part-I

(b)

130

Sec. 46B

that thirty percent o f the exempted income under


sub-section (1) is invested in the said undertaking or
in any new industrial undertaking during the period
o f exemption or within one year from the end of the
period to which the exemption under that subsection relates and in addition to that, another ten
percent o f the exempted income under sub-section
(1) is invested in each year before the expiiy of
three months from the end o f the income year in the
purchase o f shares o f a company listed with any
stock exchange, failing which the income so
exempted shall, notwithstanding the provisions of
this Ordinance, be subject to tax in the assessment
year for which the exemption was allowed:

Provided that the


referred to in this clause
amount of dividend, if
company enjoying tax
section;

quantum of investment
shall be reduced by the
any, declared by the
exemption under this

(c)

that the said undertaking is not formed by splitting


up or by reconstruction or reconstitution of
business already in existence or by transfer to a
new business o f any machinery or plant used in
business which was being carried on in
Bangladesh at any time before the commencement
o f the new business;

(d)

that the said undertaking is approved, and during


the relevant income year, stands approved by the
Board for the purposes o f this section;

(e)

that application in the prescribed form for approval


for the purposes o f this section, as verified in the
prescribed manner, is made to the Board within six
months
from
the end
o f the
month of
commencement o f commercial production;
that the said undertaking obtained a clearance
certificate for the relevant income year from the
Directorate o f Environment;

/. T. Manual, Part-I

(g)

131

Sec. 46B

that the said undertaking maintains books of


accounts on a regular basis and submits return o f
its income as per provisions laid down in section
75 o f this Ordinance.]

(5)

Notwithstanding anything contained in this section,


where an undertaking enjoying exemption o f tax under
this section is engaged in any commercial transaction
w i t h another undertaking or company having one or
more common sponsor directors, and during the course
o f making an assessment o f the said undertaking i f the
Deputy Commissioner o f Taxes is satisfied that the said
undertaking has purchased or sold goods at higher or
lower price in comparison to the market price with intent
to reduce the income o f another undertaking or
company, the exemption o f tax o f that undertaking shall
be deemed to have been withdrawn that assessment year
in which such transaction is made.

(6)

The Board shall give its decision on an application made


under clause (e) o f sub-section (4) within forty five days
from the date o f receipt o f the application by the Board,
failing which the undertaking shall be deemed to have
been approved by the Board for the purposes o f this
section:

Provided that the Board shall not reject any


application made under this section unless the applicant
is given a reasonable opportunity of being heard.
(7)

The Board may, on an application o f any person


aggrieved by any decision or order passed under subsection (6), i f the application is made within four months
o f the receipt or such decision or order, review the
previous decision, order or orders and pass such order in
relation thereto as it thinks fit.

(8)

The income, profits and gains o f the undertaking to


which this section applies shall be computed in the same
manner as is applicable to income chargeable under the
head "Income from business or profession".

/. T. Manual, Part-I

132

Sec. 46B

Provided that in respect of depreciation, only the


allowances for normal depreciation specified in
paragraph 3 of the Third Schedule shall be allowed.
(9)

(10)

The income, profits and gains o f the undertaking to


which this section applies shall be computed separately
from other income, profits and gains o f the assessee, i f
any, and where the assessee sustains a loss from such
undertaking it shall be carried forward and set o f f
against the profits and gains o f the said undertaking for
the next year and where it cannot be w h o l l y set off, the
amount o f the loss not so set off, shall be carried forward
for the f o l l o w i n g year and so on, but no loss shall be
carried forward beyond the period specified by the
Board in the order issued under sub-section (6) or (7).
Unless otherwise specified by the Government, nothing
contained in this section shall be so construed as to
exempt the following from tax chargeable under this
section:(a)
any dividend paid, credited or distributed or
deemed to have been paid, credited or distributed
by a company to its share-holders out o f the profits
and gains;
(b)

any income o f the said undertaking classifiable as


"Capital gains" chargeable under the provisions o f
section 3 1 ;

(c)

any income o f the said undertaking resulting from


disallowance made under section 30.

(11)

Where any exemption is allowed under this section and


in the course o f making assessment, the Deputy
Commissioner o f Taxes is satisfied that any one or more
o f the conditions specified in this section are not
fulfilled, the exemption shall stand withdrawn for the
relevant assessment year and the Deputy Commissioner
o f Taxes shall determine the tax payable for such year.

(12)

A n y such undertaking approved under this section may,


not later than one year from the date o f approval, apply

133

/. T. Manual, Part-I

Sec. 46B, 46C

in w r i t i n g to the Board for the cancellation o f such


approval, and the Board may pass such order or orders
thereon as it may deem fit.
(13)

Notwithstanding anything contained in this section, the


Board may, in the public interest, cancel or suspend
fully or partially any exemption allowed under this
section.

(14)

The Board may make rules regulating the procedure for


the grant o f approval under sub-section (6), review under
sub-section (7), furnish information regarding payment
o f other taxes by the said undertaking, and take such
other measures connected therewith or incidental to the
operation o f this section as it may deem fit.

'[46C.Exemption from tax of newly established physical


infrastructure facility set up between the period of July,
2011 and "[June, ^[2019]], etc. in certain cases.
'[(1) Subject to the provisions o f this Ordinance, income,
profits and gains under section 28 from physical
infrastructure facility, hereinafter referred to as the said
facility, set up in Bangladesh between the first day of
July, 2011 and the thirtieth day o f June, '[2019] (both
days inclusive) shall be exempted from the tax payable
under this Ordinance for ten years beginning with the
month o f commencement o f commercial operation, and
at the rate, specified below:
Period of Exemption

Rate of Exemption

For the first and second year


For the third year

80% o f income

For the fourth year

70% o f income

For the fifth year

60% o f income
50% o f income

For the sixth year

100% o f income

134

/. T. Manual, Part-I

Sec. 46C

For the seventh year

(2)

For the eighth year

40% o f income
30% o f income

For the ninth year

20% o f income

For the tenth year

10% o f income. ]

For the purpose o f this section, "physical infrastructure


facility" means,
(a)
deep sea port;
(b)

elevated expressway;

(c)

export processing zone;

(d)

flyover;

(e)

gas pipe line,

(f)

Hi-tech park;

(g)

Information and Communication Technology


( I C T ) village or software technology zone;

(h)

Information Technology ( I T ) park;

(i)

large water treatment plant and supply through


pipe line;

(j)

Liquefied Natural
transmission line;

(k)

mono-rail;

(1)

rapid transit;

(m)

renewable energy (e.g energy saving bulb, solar


energy plant, w i n d m i l l ) ;

(n)

sea or river port;

(o)

' [ t o l l road or bridge];

(p)

underground rail;

(q)

waste treatment plant; or

Gas

( L N G ) terminal

and

135

/. T. Manual, Part-I

(r)

(3)

Sec. 46C

any other category o f physical infrastructure


facility as the Government may, by notification in
the official Gazette, specify.

The exemption under sub-section (1) shall apply to the said


facility i f it fulfils the following conditions, namely:
(a)
that the said facility is owned and managed by
(i)
a body corporate established by or under any
law for the time being in force with its head
office in Bangladesh; or
(ii)

a company as defined

in ' C ^ s T " ^ ^srlt^^, iSicsS

(b!s.S.8
ib- -Ri wlt=T) with its registered
office in Bangladesh and having a subscribed
and paid up capital o f not less than two
million taka on the date o f commencement of
commercial operation;
(b)

that thirty percent o f the exempted income under


sub-section (1) is invested in the said facility or in
any new physical infrastructure facility during the
period o f exemption or within one year from the
end o f the period to which the exemption under that
sub-section relates and in addition to that, another
ten percent o f the exempted income under subsection (1) is invested in each year before the expiry
o f three months from the end o f the income year in
the purchase o f shares o f a company listed with any
stock exchange, failing which the income so
exempted shall, notwithstanding the provisions of
this Ordinance, be subject to tax in the assessment
year for which the exemption was allowed:

Provided that the quantum of investment


referred to in this clause shall be reduced by the
amount of dividend, if any, declared by the
company enjoying tax exemption under this section:
(c)

that the said facility is approved, and during the


relevant income year, stands approved by the
Board for the purposes o f this section;

T. Manual, Part-I

(4)

136

Sec. 46C

(d)

that application in the prescribed form for approval


for the purposes o f this section, as verified in the
prescribed manner, is made to the Board within six
months
from
the end
o f the
month o f
commencement o f commercial operation;

(e)

that the said facility maintains books o f accounts


on a regular basis and submits return o f its income
as per provisions o f section 75 o f this Ordinance.

The Board shall give its decision on an application made


under clause (d) o f sub-section (3) within forty five days
from the date o f receipt o f the application by the Board,
failing which the facility shall be deemed to have been
approved by the Board for the purposes o f this section:
Provided that the Board shall not reject any
application made under this section unless the applicant
is given a reasonable opportunity of being heard.

(5)

The Board may, on an application o f any person


aggrieved by any decision or order passed under subsection (4), i f the application is made w i t h i n four months
o f the receipt o f such decision or order, review the
previous decision, order or orders and pass such order in
relation thereto as it thinks f i t .

(6)

The income, profits and gains o f the facility to which


this section applies shall be computed in the same
manner as is applicable to income chargeable under the
head "Income from business or profession":
Provided that in respect of depreciation, only the
allowances for normal depreciation
specified
in
paragraph 3 of the Third Schedule shall he allowed.

(7)

The income, profits and gains o f the facility to which this


section applies shall be computed separately from other
income, profits and gains o f the assessee, i f any, and where
the assessee sustains a loss from such facility it shall be
carried forward and set o f f against the profits and gains o f
the said facility for the next year and where it cannot be
wholly set o f f the amount o f the loss not so set o f f shall be

/. T. Manual, Part-I

137

Sec. 46C

carried forward for the following year and so on, but no


loss shall be carried forward beyond the period specified by
the Board in the order issued under sub-section (4) or (5).
(8)

Unless otherwise specified by the Government, nothing


contained in this section shall be so construed as to exempt
the following from tax chargeable under this section:
(a)
any dividend paid, credited or distributed or
deemed to have been paid, credited or distributed
by a company to its share-holders out o f the profits
and gains;
(b)

any income o f the said facility classillable as


"Capital gains" chargeable under the provisions of
section 3 1 ;

(c)

any income o f the said facility resulting from


disallowance made under section 30.

(9)

Where any exemption is allowed under this section and


in the course o f making assessment, the Deputy
Commissioner o f Taxes is satisfied that any one or more
o f the conditions specified in this section are not
fulfilled, the exemption shall stand withdrawn for the
relevant assessment year and the Deputy Commissioner
o f Taxes shall determine the tax payable for such year.

(10)

A n y such facility approved under this section may, not)


later than one year from the date o f approval, apply in
w r i t i n g to the Board for the cancellation o f such
approval, and the Board may pass such order or orders
thereon as it may deem fit.

(11)

Notwithstanding anything contained in this section, the


Board may, in the public interest, cancel or suspend full}
or partially any exemption allowed under this section.

(12)

The Board may make rules regulating the procedure fo


the grant o f approval under sub-section (4), review unde
sub-section (5), furnish information regarding paymer
o f other taxes by the said facility, and take such othe
measures connected therewith or incidental to th
operation o f this section as it may deem fit.J

/. T. Manual, Part-I

47.

138

Sec. 47

Exemption of income of co-operative societies.


(1)

The tax shall not be payable by a co-operative society


'[including a co-operative society carrying on the
business o f banking] in respect of
(a)
so much o f its income as is derived by it as a result
o f such o f its dealings with its members as involve
sale o f goods, the lending o f money or the lease o f
buildings and land which is for the personal use o f
such members, or where such member is a firm or
an association o f persons, for the personal use o f
the partners or members thereof;
(b)

the entire income from business carried on by it, i f


it is engaged in the f o l l o w i n g :
(i)
agricultural or rural credit;
(ii)

cottage industry;

(iii)

marketing o f agricultural
members;

(iv)

purchase o f agricultural implements, seeds,


livestock or other articles intended for
agriculture for the purpose o f supplying
them to its members; or

(v)

such processing, not being the performance o f


any manufacturing operation with the aid o f
power, o f the agricultural produce o f its
members as is ordinarily employed by a
cultivator to render marketable the agricultural
produce raised by him;

produce

o f its

(c)

any income from interest and dividends derived


from its investments w i t h any other co-operative
society; and

(d)

any income derived from the letting o f godowns or


warehouses for the purpose o f storage, processing
or facilitating the marketing o f commodities
belonging or meant for sale to its members.

/. T. Manual, Part-I

139

Sec. 47

Explanation.For
the purpose o f this section,
(a)
"cottage industry" means an enterprise, not being
owned by a j o i n t stock company which fulfils the
following conditions, namely:
(i)
it is basically an enterprise in which the
owner is the investor, a full-time worker and
the actual entrepreneur;

(b)

(2)

(ii)

the capital invested in plant, machinery and


equipment does not exceed '[three lakh taka]
at any time during the income year;

(iii)

the number o f workers, including the owner


and the members o f his family, shall not on
any one twenty-four hour day during the
income year, exceed ^[fifteen]; and

(iv)

the owner o f the enterprise or any member


o f his family does not own any other
industrial or commercial enterprise either in
his own name or in the name o f any other
person; and

"member o f his family", in relation to the owner o f


an enterprise, means the parents, spouse and
children dependent on the owner and employed in
the enterprise, whether working full-time or parttime, or whether for or without any wages,
remuneration or compensation in any form.

N o t h i n g contained in sub-section (1) shall apply to a cooperative society carrying on such business o f insurance
as is carried on by a mutual insurance association in
respect o f its profits and gains to which paragraph 8 o f
the Fourth Schedule applies.