1. Conditions for approval of superannuation or pension fund.—

A Superannuation Fund or Pension Fund shall receive approval and the approval shall remain in force, subject to the fulfilment of the following conditions, namely:—

(a) the fund shall be a fund established under an irrevocable trust in connection with a trade or undertaking carried on in Bangladesh;

(b) the sole purpose of the fund shall be for providing annual financial annuities for any one among the appointed employees in the trade or industry on their retirement at or after the specified age or on becoming incapacitated to work prior to such retirement, or for the widows, children or dependents, if any, on death of the said employee;

(c) the employer in the trade or undertaking shall be a contributor to the fund;

(d) all annuities, pensions and other benefits granted from the fund shall be payable only in Bangladesh;

(e) the fund shall fulfil such other conditions as may be prescribed by the Board:

Provided that the Commissioner of Taxes, hereinafter referred to as the Commissioner in this part, may, if he thinks fit to attach such other conditions to the approval, subject to the fulfilment of above conditions, approve the fund or any part thereof on the following subjects, namely-

(i) Notwithstanding any rules of the fund, in case of returning contributions paid to the fund to bear the certain incidental expenses;

(ii) though the main purpose of the fund is to provide financial annuities at a time as aforesaid, if it is not the sole purpose of this fund in some cases, or

(iii) though the trade or undertaking, in connection with which the fund is established, is carried on only partly in Bangladesh.

2. Procedure for approval.—

(1) An application for approval of a Superannuation fund or Pension Fund shall be made by any trustee of the respective fund to the Commissioner under whom its tax is assessed as an assessee in a prescribed manner.

(2) If any alteration in the rules, constitution, objects or conditions of the fund is made at any time after the date of the application for approval, the applicant shall immediately communicate to the Commissioner of such alteration.

(3) The Commissioner shall consider the application, related records and documents in his possession and he may require such further information to be supplied as he thinks proper for consideration.

(4) While considering the application, the Commissioner may, if necessary, direct the applicant to appear before him.

(5) The Commissioner shall, give his decision on the application by written order, within 180 (one hundred and eighty) days from the date of receipt of the application, and for any failure to do so, such funds shall be deemed to have been approved.

(6) If the application is approved, the approved order shall be included the following, namely:-

(a) conditions and qualifications of approval;

(b) effective date of approval; and

(c) expiry date of approval.

(7) If the approval is given for a certain period, the trustee shall apply for the extension before the expiration of the said period.

3. Withdrawal of approval.—

(1) If the Commissioner is satisfied that the conditions mentioned in paragraphs 2 and 3 have been violated or not fulfilled by the concerned Superannuation Fund or Pension Fund, the Commissioner may withdraw the said approval at any time.

(2) Where the effective date of withdrawal is not specified, it shall take effect from the date on which the order of withdrawal has been issued.

(3) The Commissioner shall not withdraw the approval without giving the applicant a reasonable opportunity of being heard.

(4) Where the approval is withdrawn under sub-paragraph (1), the Commissioner shall notify the Trustee of the Fund in writing stating the following:

(a) reasons for such withdrawal; and

(b) effective date of withdrawal.

(5) Where approval is given for a specified period, it shall automatically terminate on the expiry of such period, if further approval is sought again the trustee shall apply freshly under paragraph 2.

4. Provisions relating to income and subscriptions to the fund.—

(1) Subject to other provisions of this Act, income derived from investments or deposits of an approved Superannuation Fund or Pension Fund and any capital gains arising from the transfer of capital assets of such fund shall be exempted from payment of tax.

(2) Any sum, subject to the limit mentioned in this Act, paid by an employer as contribution towards an approved Superannuation Fund or Pension Fund shall be deducted in computing his income, profits and gains for the purpose of assessment.

5. Liabilities of trustees on cessation of approval of fund.—

If the approval of a superannuation fund, for any reason, ceased fully or partly, the trustees of the fund shall nevertheless remain liable to account for tax on any sum paid-

(a) on account of returned contributions (including interest on contributions, if any);

(b) on amount paid in return or in lieu of annuities; and

(c) on amount paid for fund or part of fund before cessation the fund.

6. Particulars to be furnished in respect of superannuation fund or pension fund.—

The Deputy Commissioner of Taxes may, by notice, direct the trustee of any approved Superannuation Fund or Pension Fund or contributing employer of any Superannuation Fund or Pension fund to furnish the following particulars, namely:—

(a) a return with the following information—

(i) the name and place of residence of every person in receipt of an annuity from the fund;

(ii) the amount of the annuity payable to each annuitant;

(iii) particulars of every contribution (including interest on contribution, if any) returned to the employer or to employees; and

(iv) particulars of sums paid in commutation or in lieu of annuities; and

(b) accounts of the fund to the last date prior to such notice to which such accounts have been made up, together with such other information and particulars as the Board may require.

7. Explanation. —

For the purposes of this part,—

(a) the expressions ‘employer’, ‘employee’, ‘contribution’ and ‘salary’ of Superannuation Fund or Pension Fund shall have the same meaning as in relation to provident fund; and

(b) ‘Annual General Contribution’ means an annual contribution of fixed amount or earnings of members of fund, amount of contribution or number of members a fixed annual contribution etc., quantified on a certain basis.