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After the government publishes a reliable translated text in English through an official gazette, we will incorporate the Authentic English Text here.

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29.Deductions from income from business or profession:

(1) In computing the income under the head "Income from business or profession", the following allowances and deductions shall be allowed, namely:-

(xi) where any building, machinery , plant or any other fixed asset not being imported software which, after having been used by the assessee for the purpose of his business, has been discarded, demolished or destroyed in any income year or any such asset has been sold, transferred by way of exchange or compulsorily acquired by a legally competent authority or exported outside Bangladesh in any income year, an obsolescence allowance to the extent and computed in the manner specified in paragraph 10 of the Third Schedule;

(viii) in respect of depreciation of building, machinery, plant or furniture, being the property of the assessee or bridge or road or fly over owned by a physical infrastructure undertaking and used for the purposes of business or profession, the allowances as admissible under the Third Schedule;

(viiia) in respect of amortization of license fees as admissible under the Third Schedule;

(xix) any expenditure, not being in the nature of capital expenditure, laid out or expended on research and developmen in Bangladesh related to the business carried on by the assessee; 

(xx) any expenditure of a capital nature laid out or expended on research and development in Bangladesh related to the business carried on by the assessee:

Provided that where a deduction is allowed for any income year under this clause in respect of expenditure represented wholly or partly by any asset, no deduction shall be allowed under clause (viii) or (ix) for the same income year in respect of that asset;

(xix) any expenditure, not being in the nature of capital expenditure, laid out or expended on research and development in Bangladesh related to the business carried on by the assessee;

(xx) any expenditure of a capital nature laid out or expended on research and development in Bangladesh related to the business carried on by the assessee:

Provided that where a deduction is allowed for any income year under this clause in respect of expenditure represented wholly or partly by any asset, no deduction shall be allowed under clause (viii) or (ix) for the same income year in respect of that asset;

(xxi) any sum paid to a scientific research institute, association or other body having as its object the undertaking of scientific research, or to a University, College, Technical School or other Institution for the purpose of scientific research or technical training related to the class of business carried on by the assessee, if such Institute, association or body, or such University, College, Technical School or Institution is, for the time being, approved by the Board for the purpose of this clause.

Explanation.- In this clause

(a) "scientific research" means any activities in the field of natural or applied science for the extension of knowledge; 

(b) references to expenditure incurred on scientific research do not include any expenditure incurred in the acquisition of rights in, or arising out of, scientific research, but save as aforesaid, include all expenditure incurred for the prosecution of, or the provision of facilities for the prosecution of, scientific research;

(c) reference to scientific research related to a business or class of business includes-

(i) any scientific research which may lend to or facilitate an extension of that business or, as the case may be, all businesses of that class; 

(ii) any scientific research of a medical nature which has a special relation to the welfare of workers employed in that business or, as the case may be, business of that class;

(xii) in the case of any animal which has been used by the assessee for the purpose of business or profession otherwise than as stock-in-trade, has died or become permanently useless for such purpose, an amount equivalent to the difference between the original cost of the animal to the assessee and the sum, if any, realised by sale or other disposition of the carcass, as the case may be, of the animal;

(ix) in the case of a ship, being a passenger vessel plying ordinarily on inland waters, or a fishing trawler, which is entitled to a special depreciation allowance under paragraph 8 of the Third Schedule, an investment allowance of an amount equivalent to twenty per cent of the original cost to the assessee for the year in which the ship or the trawler is first put to use for public utility;

(2) Where any premises, building, machinery, plant or furniture is not wholly used for the purposes of business or profession, any allowance or deduction admissible under this section shall be restricted to the fair proportional part of the amount which would be allowable if such premises, building, machinery, plant or furniture was wholly so used.

Explanation.- For the purposes of this section, the expression "plant" includes ships, vehicles, books, scientific apparatus and surgical and other instruments or equipments used for the purpose of business or profession.

19.Un-explained investments, etc., deemed to be income:

(20) Where an asset representing expenditure of a capital nature on scientific research within the meaning of section 29 (1) (xx) is disposed of during any income year, so much of the sale proceeds as does not exceed the amount of the expenditure allowed under the said clause shall be deemed to be the income of the assessee for that income year classifiable under the head “Income from business or profession”.

Explanation 1.- For the purposes of this sub-section and sub-sections (16) and (17), “sale proceeds” shall have the same meaning as in the Third Schedule.

Explanation 2.- For the purposes of this sub-section and sub-sections (16) and (18), the business or profession in which the building, machinery, plant or assets, as the case may be, was used before its disposal, shall be deemed to be carried on by the assessee during the income year in which such disposal takes place.