(1) Where any agreement entered into with the Government is in force in accordance with the provisions of section 244 of this Act, any particular class of income accruing to a person resident in any of the contracting countries shall be exempt from tax in Bangladesh and in accordance with the provisions of this Act, tax shall be deductible from the said income, in which case the provisions of this section shall apply.

(2) Where a person, (referred to in this section as a Bangladeshi assesse) pays any such class of income to a person entitled to enjoy the income of the specified country (referred to in this section as a non-resident), such person shall, subject to notice directed by or under the Board to the non-resident, pay any such income to the non-resident. may be paid without deduction and on the date on which such notice is issued, to the Bangladeshi payee, any amount of income, without any deduction under the provisions of this section, from the source specified in the notice to the non-resident person specified in the notice, or the probable income for any such year, of which the above contract remains in force, to be paid.

(3) Any notice given under sub-section (2) shall be deemed to be invalid if in any case, whether or not such description is made, it is invalidated by an order made by the Board or by a cancellation notice issued thereunder; and if any such event occurs to the knowledge of the Bangladeshi assessee or any notice of cancellation is given to him, then income of making any payment by the Bangladeshi assessee to the non-resident, tax shall be deducted in accordance with the provisions of this Act after such event has become known to the Bangladeshi assessee or, as the case may be, after the Bangladeshi assessee has received the notice.