Notwithstanding anything contained in this Chapter, the following deductions shall not be allowable in computing income from business in the following cases, namely:-  

(a) any expenditure or payment in respect of which the provisions of Part-7 have not been duly complied with;

(b) interest, salary, commission or gratuity paid by any firm or association of individual to any partner of the firm or any member of the association; 

(c) payment of any commission or discount by a company to a   shareholder director;

(d) any amount in excess of Tk. 10 (ten) lakhs paid to an employee in respect of perquisites as defined in the explanation to section 32: 

Provided that nothing in this section shall apply to the payment of wages to employees by Government, notification in the official Gazette, for implementation by the recommendations of the Wage Board constituted on the basis of Government decisions;  

(e) an excess of 10% (ten percent) of the net business profit shown in the financial statements in respect of the aggregate of expenses for royalties, license fees, technical service fees, technical assistance know-how fees or any other fees of a similar nature incurred for the use of intangible property; 

(f) an excess of 10% (ten percent) of the net trading profit shown in the financial statements in respect of head office or intragroup expenditure, by whatever name, incurred by any such company not registered in Bangladesh; 

(g) an additional figure of 0.5% (zero point five percent) of the business turnover shown in the financial statements in respect of expenses related to foreign travel for business purposes: 

Provided that this limit shall not apply if the taxpayer travels abroad for rendering any service to the Government:  Provided further that the limit provided in this clause shall not apply if evidence is produced in support of the additional figure calculated under this clause and the commercial reasonableness thereof is proved; 

(h) amounts in addition to the sums specified below as entertainment expenses—

(i) 4% (four percent) of the first Tk. 10 (ten) lakhs of the assessed business income excluding entertainment expenses; and

(ii) 2% (two percent) of the first Tk. 10 (ten) lakhs of business income assessed excluding deduction of entertainment expenses;

(i) amounts in addition to the amount specified below in distribution of free samples—  

(a) In case of pharmaceutical industry—

(1) at the rate of2% (two percent) of business turnover up to Tk. 5 (five) crores; 

(2) business turnover exceeding tk. 5 (five) crore, but not exceeding Tk. 10 (ten) crore in such cases at the rate of 1% (one percent);

(3) in case of business turnover exceeding Tk. 10 (ten) crores at the rate of 0.5% (zero point five percent) in such cases;

(b) In the case of food, cosmetic and perfume industries—

(1) at the rate of 1% (one percent) of the business turnover up to Tk. 5 (five) crore;

(2) business turnover exceeding Tk. 5 (five) crore, but not exceeding Tk. 10 (ten) crore in such cases at the rate of 0.5% (zero point five percent);

(3) at the rate of 0.25% (zero point two five percent)   in such cases where the business turnover exceeds Tk. 10 (ten) crores;

(c) In respect of other industries—

(1) at the rate of 0.5% (zero point five percent) of business turnover up to Tk 5 (five) crores;

(2) business turnover exceeding Tk. 5 (five) crore but not exceeding Tk- 10 (ten) crore in such cases at the rate of 0.25% (zero point two five percent);

(3) business turnover exceeding Tk. 10 (ten) crores at   the rate of 0.1% (zero point one percent) in such cases;

(j) an amount exceeding 0.5% (zero point five percent) of business turnover in respect of promotional expenditure other than advertising;  

(k) if any such amount treated as income from the employment of the employee is paid through any other medium than through banking;

(l) if any payment which is deemed to be income from rent is paid through any other medium than through banking;

(m) if the payment of any amount in respect of raw material has been paid through any other means rather than through banking more than Tk. 5 (five) lakhs;

(n) in the case of all expenses other than clauses (k), (l) and (d), the additional sum of Tk. 50 (fifty) thousand not paid through banking but if the said paid amount is paid through any other means;

(o) any amount paid to any such person liable to furnish proof of filing of return under clauses 25, 26, 28, 29, 36, 37, 42 and 43 of sub-section (3) of section 264, if at the time of payment such person; fails to submit evidence of filing return;

(p) any expenditure of a capital nature or any personal expenditure of the taxpayer;

(q) any liability not expressly assessed;

(r) all such expenses not connected with business activities;

(s) deduction of any depreciation allowance and interest claimed in respect of right of use of an asset in accordance with International Financial Reporting Standard: 

Provided that in this case the rent, development and   maintenance expenses payable for the land or premises used for business purposes shall be sanctioned; 

(t) impairment loss;

(u) money paid to any fund not authorized by the Board; 

(v) all unproven expenses for non-compliance with the provisions of accounting in the prescribed manner. 

Explanation.—For the purposes of this section,— 

(a) “Net Business Profits” means the business profits directly carried on by an entity, but does not include profits derived from any subsidiary, associate or joint venture; 

(b) “Promotional Expenses” means business expenses claimed against the provision of goods, money or other benefits to any person for the purpose of business, but shall not include advertising expenses.