The following income shall be excluded from the computation of gross income, namely:-

(1) The income of any intergovernmental organization or any international organization or any of its employees exempted from income tax under any Act made by Parliament or any treaty signed by the Government

(2) Any income as under—

(a) Remuneration received from the Government concerned by virtue of their employment in such capacity by an Ambassador, High Commissioner, Envoy, Minister, Charge the Affairs, Commissioner, Councilor, Consul the Career, Secretary, Advisor or Attaché of a foreign State, High Commission Legation or Commission of a foreign State;

(b) a trade commissioner or other government representative of a foreign country stationed in Bangladesh who is not performing unpaid duties in that capacity receives such salary, if such officer of equivalent rank employed for such purpose in the country concerned enjoys similar exemption;

(c) income received as salary by a member of the office staff of an employee referred to in clauses (a) and (b), when such member is not a citizen of Bangladesh and is a citizen of the State representing him or is a citizen of any other foreign State and is a member of the said office staff; not engaged in any business or profession or employment in Bangladesh except for carrying out activities as a member, and similar exemptions apply to officials and employees of the Government of the People’s Republic of Bangladesh working in such representative state;

(3) grants received by Government or local authorities and any taxes, fees and duties;

(4) pension received by the taxpayer or due to the taxpayer from the Government Pension Fund;

(5) Income not more than taka 2 (two) crores and 50 (fifty) lakhs received by the taxpayer from the Government Gratuity Fund;

(6) any recognized provident fund, approved superannuation fund, pension fund and approved provident fund-

(a) any contribution received by the employee or employer; and

(b) the income distributed among the beneficiaries thereof which is chargeable to the said fund:

Provided that the amount received by the taxpayer as gratuity from any approved gratuity fund shall not exceed taka 02 (two) crores and 50 (fifty) lakhs;

(7) the Provident Fund Act, 1925 (Act No. 19 of 1925) applicable to any such Provident Fund arising or accruing or any income arising from the Provident Fund;

(8) any amount received under any scheme approved by the Government for the purpose on voluntary retirement by any employee of Government bodies, local authorities, or autonomous or semi-autonomous bodies and their controlled units or institutions;

(9) Any money received as interest or sum of money received as interest from Pensioners Savings Certificate, in which case the total accumulated earned value/actual value/ literal value/purchase price of the invested money of the said certificate at the end of the relevant income year is more than taka 5 (Five) lakh;

(10) Any income earned by the following entities recognized by the Bangladesh Securities and Exchange Commission, namely:

(a) Mutual Fund (Mutual Fund);

(b) Alternative Investment Fund;

(c) Real Estate Investment Trust;

(d) Exchange Traded Fund;

(11) Income derived from house-property under a trust or other legal obligation held wholly for charitable or religious purposes, except in the case of private institutions registered by the Bureau of NGO Affairs, is the said income-

(a) Used for charitable or religious purposes in Bangladesh in the relevant income year; or

(b) is not used for any charitable or religious purpose, but is accumulated or finally set aside for the fulfillment of such purpose in Bangladesh, and—

(i) inform the Deputy Commissioner of Taxes for what reason and for what period such income has been accumulated or set aside;

(ii) the term mentioned in sub-clause (a) does not exceed 10 (ten) years;

(iii) such accumulated or set-aside money is invested in Government securities or in any other securities approved by the Government for the purpose, or deposited in any Post Office Savings Bank, or deposited in any such Scheduled Bank of which 51% (fifty-one percent) or more of its shares are held by Govt.

(12) Voluntary contributions received by religious or charitable institutions which are used only for religious or charitable purposes:

Provided that nothing in section 17 or 18 shall exempted from the provisions of this Act that part of the gross income of a private religious trust which does not ensure public welfare;

(13) Any service charge arising out of the micro-credit activities of a non-governmental organization registered with the Bureau of NGO Affairs or the Microcredit Regulatory Authority if it-

(a) revolving only as microcredit;

(b) is not used to acquire any funds other than revolving microcredit; and

(c) is not used as capital in any business other than revolving microcredit;

Explanation— For the purposes of this clause, “service charge” means any financial charge, or interest or profit share, however called, paid or payable by the borrower for the amount lent under the microcredit activities of the private Sector;

(14) Reimbursement of expenses of an employee by an employer if the said expenditure is wholly and necessarily incurred in the performance of the duties of the employee; and it was most convenient for the employer to incur such expenditure through the said employee;

(15) the portion of income received by a taxpayer as a partner in a partnership firm as part of capital income on which tax has been paid by the said firm;

(16) the amount received by a taxpayer as a member of a Hindu undivided family, on which tax is paid by that family;

(17) any income earned abroad by a Bangladeshi natural person taxpayer which he brings into Bangladesh in accordance with existing laws relating to foreign remittances;

(18) any income received by a taxpayer from a Wage Earners Development Fund, US Dollar Premium Bond, US Dollar Investment Bond, Euro Premium Bond, Euro Investment Bond, Pound Sterling Investment Bond or Pound Sterling Premium Bond;

(19) the income of any natural person belonging to the minor tribes of the Rangamati, Bandarban and Khagrachari Hill Districts arising solely from economic activities carried on in the said Hill Districts;

(20) Any income of a natural person falling under the “Income from Agriculture” sector not exceeding taka 2 (two) lakhs, if the said person—

(a) is a farmer by occupation;

(b) has no income in the relevant income year other than the following income, namely;-

(i) income arising from the cultivation of land;

(ii) income not exceeding Tk 20 (twenty) thousand on account of interest or profit.

(21) Income of a resident person or a non-resident Bangladeshi person arising from any of the following businesses during the period from July 1, 2020 to June 30, 2024, namely:-

(a) software development;

(b) software or application customization;

(c) Nationwide Telecommunication Transmission Network (NTTN);

(d) digital animation development;

(e) website development;

(f) Website Services;

(g) web listings;

(h) IT process outsourcing;

(i) website hosting;

(j) digital graphics design;

(k) digital data entry and processing;

(l) digital data analytics;

(m) Graphic Information Services (GIS);

(n) IT support and software maintenance services;

(o) Software Test Lab Services;

(p) call center services;

(q) overseas medical transcription;

(r) search engine optimization services;

(s) document conversion, imaging and digital archiving;

(t) robotics process outsourcing;

(u) Cyber Security Services;

(v) cloud services;

(w) system integration;

(x) e-learning platforms;

(y) e-book publication;

(z) mobile application development services; and

(aa) IT Free Lancing;

(22) any income arising from export of handicrafts between July 1, 2020 and June 30, 2024;

(23) any amount paid as tax by the Government on behalf of a petroleum exploration company engaged in exploration for petroleum products in Bangladesh under a Production Sharing Contract (PSC) with the Government of Bangladesh;

(24) Income arising from small or medium industries involved in the production of any goods, which-

(a) If the industry is owned by women, the annual turnover does not exceed Tk. 70 (seventy) lakh;

(b) in other cases, the annual turnover does not exceed Tk. 50 (fifty) lakhs;

(25) Subject to the following conditions, any income arising from a zero coupon bonds by persons other than banks, insurance or any financial institution, namely:-

(a) the said zero coupon bond has been issued by any bank, insurance or financial institution with the prior approval of Bangladesh Bank or Bangladesh Securities and Exchange Commission;

(b) zero coupon bonds have been issued by any institution other than a bank, insurance or financial institution with the prior approval of Bangladesh Bank or the Bangladesh Securities and Exchange Commission;

(26) Any such income received by an educational institution which is not treated as “income from financial resources” and if the educational institution complies with the following conditions-

(a) belongs to the Government’s MPO (listed for monthly pay order);

(b) follows the curriculum approved by the Government;

(c) is managed by a Board of Directors constituted under the rules of the Government;

(27) One-third of the income calculated as “income from employment” or taka 4 (four) lakhs 50 (fifty) thousand whichever is less;

(28) any income other than interest or dividends received by any Government University or any professional institute (professional institute) established under any law and managed by any professional body of Chartered Accountants or Cost and Management Accountants or Chartered Secretaries;

(29) any money in the nature of honorarium or allowance received by any person from the Bangladesh Freedom Fighters Welfare Trust or any welfare allowance received from the Government;

(30) any award received by any person from the government;

(31) any income arising from the operation of an old age home;

(32) tax-paid dividend distributed in favor of a company, if the company distributing such dividend maintains a separate account for such tax-paid dividend;

(33) Business income earned by any ocean going ship being Bangladeshi flag carrier within 30 June 2030 is similar income if brought into Bangladesh following the provisions relating to foreign remittances.

1[ (34) Any income arising on account of pension under the Public Pension Scheme. ]