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

(2) An adjustment under sub-section (1) shall not be admissible against the said income tax if the assessee whose income is chargeable to tax in any assessment year is not a resident during the period on which such income is assessed.

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