(1) Where any amount of tax is payable as a result of any order or proceeding under this Act, the Deputy Commissioner of Taxes shall, issue a demand notice in the prescribed form upon the said taxpayer specifying the amount and time limit for payment (including any other person responsible for payment of tax) with a copy of the assessment order of the amount of tax payable.*

(2) Where a certain amount of tax is refundable in pursuance of any order or proceeding under this Act, the Deputy Commissioner of Taxes shall, in the notice referred to in sub-section (1), inform the taxpayer of the amount refundable and the manner in which such refund shall be made, except as provided in section 225, such refund is adjusted against tax due.

(3) The Deputy Commissioner of Taxes shall not adjust any refund without giving the taxpayer an opportunity of being heard.

(4) If a taxpayer on whom a demand notice has been issued under subsection (1) applies to the Deputy Commissioner of Taxes before the expiry of the period for payment specified in the notice, the Deputy Commissioner of Taxes may extend the period for payment as the Deputy Commissioner of Taxes considers necessary having regard to the circumstances of the case, where applicable, may allow payment in installments subject to payment of late interest.

(5) The taxpayer shall be deemed to be tax defaulter if the amount payable is not paid within the period specified in the notice of demand issued under sub-section (1) or, as the case may be, within the extended period under sub-section (4).

(6) If the taxpayer files an appeal under this Act against the assessment order imposed or against the amount of tax specified, the Deputy Commissioner of Taxes shall not treat the taxpayer as a defaulting taxpayer until the appeal is disposed of.

(7) If the taxpayer is allowed to pay money in installments under subsection (4), if the taxpayer fails to pay any of the installments within the specified period, he shall be treated as a defaulting taxpayer for the amount unpaid on that day and for the other installment or installments; and which he has failed to pay shall be deemed to have been paid on the day fixed for payment of the said installment and all remaining installments.

(8) If a taxpayer is taxed on income earned from outside Bangladesh and any prohibition or restriction is imposed on the remittance of money from that country to Bangladesh, such amount of income may be brought into Bangladesh by reason of the imposition of such prohibition or restriction the Deputy Commissioner of Taxes shall not treat the concerned taxpayer as a defaulting taxpayer for the amount of income until the said prohibition or restriction is removed.

(9) For the purpose of this section, the income of a taxpayer shall be deemed to have been brought into Bangladesh only when the said income has been or could have been used for the purpose of any actual expenditure of the taxpayer outside Bangladesh or has been brought into Bangladesh in the form of capital or otherwise.