(1) Subject to the provisions of this Act, where, under an agreement executed under section 244, an adjustment benefit is allowed against the tax levied in Bangladesh on any income, the tax chargeable shall, subject to the provisions of the said agreement, be reduced by an amount equal to such adjustment benefit.

(2) An adjustment under sub-section (1) against the said income tax shall not be admissible if the taxpayer where income is changeable to tax in any income year is not a resident during the period on the basis of which such income is assessed.

(3) In respect of any income, the amount of adjustment admissible on account of payment of foreign tax against tax in Bangladesh shall not exceed the amount assessed at the average rate of tax prescribed on double taxable income.