Finance Bill 2010-Bangladesh

PROPOSED CHANGES IN INCOME TAX LAW
BY
FINANCE BILL-2010
SHORT POINTS FOR DISCUSSION

1. By amending 32(7), exemption of capital Gain from sale of shares of companies listed in
Stock Exchange is withdrawn without any exception.

But exemption of Capital Gain from Sale of Govt. Securities Continues [So 32 (7)] as
before.

This exemption as per 8udget Speech must be specifically incorporated in the Act in order
to avoid dispute because exemption will not be allowed unless there is Specific provision
for same.
Sponsor share holder or Director of companies listed in the stock exchange required to take
prior consent of Securities & Exchange commission for transfer of their shares and it is
now provided that the securities & Exchange comm ission shall collect tax @5% on excess
of transfer price over face value, i.e, capital Gain on Sale of Shares form Sponsor
Shareholder or Director at the time of giving consent to said transfer of share and that the
taxes so collected shall be final discharge of tax liability. This provision will not apply to
the shareholders other than sponsor shareholder or Director as they do not require to take
consent of SEC for transfer of shares.
3. Share premium has been made subject to collection of Tax @3% of premium by Securities
& Exchange Commission and the Tax so collected shall be final discharge of tax liability
(S. 531. & 82C).
4. Withdrawal of benefit of declaration of undisclosed Income (Special Tax Treatment) in the
following cases:
S. 19
S. 19/\/\
Invcstmcnt in ncw industry
Invcstmcnt in Balancing, ModcrnisaLions, rcnovation, cxtcnsion, dc of
Industry.
Investment in stocks & Shares
Investment in I-louse property
S.19/\/\/\
S. 19B13BB
5. /\s per newly inserted section 19C, sources of fund will not be questioned of any sum
invested in the purchase of Bond Issued by Infra structure Finance fund on Payment of Tax
@1 0% before filing of Return.
6. Benefit of depreciation will be allowed on bridge or road or fly over owned by physical
Infrastructure undertaking.
7. Tax free Limit of Excess perquisite is increased from Tk. 2 lacs to Tic 2,50,000 as per S.
30 (e).
Energy Saving Bulb
Solar Energy Pancl,
Barrier Contraceptive
Or Rubber latex
9. New condition of Tax holiday is to obtain a clearance certificate from Directorate of
Environment.
From 7.5% to 15% Commission to a Stevedoring Agency or making
payment to a private Security Service Agency
\
From 0.25% to ]% Collection of Tax from Member of Stock Exchange
Brick Field:
From TIc] 0,000 to Tic 30,000 for one Section Brick Field.
From TIc 12,000 Tic 45,000 for one & hal l' Section Brick Field and for
two Section Brick Field Tk. 60,000 for three Section Brick Field.
From 4% t 7.5% Commission or remuneration paid to Agent of Foreign
byeI'.
13. President of Tribunal [(So ] 1(4)]
Existing Provision: From one of the Members of Tribunals.
Proposed : From a member of the Board or holds Current charge of a member of the
Board.
14. Equity received by a Private Limited Company or Public Company NOT listed with a
Stock Exchange at the time of increase in paid up capital by issuing shares shall be treated
as Income from other sources of issuing company if said equity is not received by crossed
change of Bank transfer:
Existing Provision is to make similar treatment in the case of all equity but it is now
proposed as above which means this new provision will not apply to Equity other than
equity other than raising capital reS. 19 (24)1
New withholding Tax @1% on compensation against acquIsItIon of property by Govt.
where immoveable propert-y is situated outside any city corporation, Paurashava or
Cantonment Board.
Existing provision to collect Tax @2% on compensation for requisition of immoveable
property situated within the jurisdiction of city corporation, Paurashava or Cantonment
Board (S. 52C) will conti nus.
~~
Withdrawal of~r~a~ exemption from deduction of Tax at source from Interest on savings
eerti fieates. Tlili exem ption was 1,ither to appl icable to :
a) Total Interest not exceeding Tic 1,50,000 in any income year.
b) Interest on saving eerti ficates purchased before 01.01.2004.
[I st & 2nd provision to S. 520]
The existing exemption will, however, continue in respect of interest on saving certificates
purchased by an approved superannuation Fund or Pension Fund or Gratuity Fund or
recogni/.cd Provident Fund or a Workers Profit Participation. Fund.
17. Increase in the amount of Tax to be collected at the time of registration of building or
apartment from the transferer who is engaged in real estate or Land Development
Business.
(i) Tic 20,000 per square metre in the eases of Building or apartment situated at
Gulshan Model Town, Banani, Baridhara, DOHS, Dhanmondi RIA, Lalmatia Housing
Society, Uttara Model Town, Bashundhara RIA, Dhaka Cantonment Area, Dilkushak
CIA, Karwan Bazar CIA of Dhaka, Khulsi RIA, Panehlaish RIA and Agrabad of
Chittagong.
18. Withdrawal of exemption from deduction of Tax on Interest on deposit of post office
saving account. This exemption was applicable where total amount of interest does not
exceed Tk. 1,50,000 during the year (S 531)
This provision will now be applicable where total Income as per latest assessment exceeds
Tic 4 lacs as against prcscnt limit ofTk. 3 lacs.
As per amendmcnt made in S.64, advance Payment of Tax will also be applicable to
capital Gain from sale of shares of companies listed in Stock Exchange.
20. Advance paymcnt of Tax by new assessee as pcr S. 68.
21. Interest on short paymcnt of~Advance Tax U/S 73 is to be now calculated from the 1st day
of April instcad of existing 1st day of July.
22. The cxtension oftimc for filing Income Tax return U/S 82BB (Univcrsed Self Assessmcnt)
has now become availablc ..
At present, no such extcnsion is available. The consequential amendment is also made is
S.82BB(2). .
23. Pcnalty NOT excceding Tk. 20,000 for using Fake TIN. (New S. 124A)
24. Punishment for using Fake TIN in addition to penalty noted above (New S. l65A)
25. TIN Certificate will now be required in the following cases U/S 184 (A) (q) (r) (s) :
(a) Application for commercial electrical & gas connection in a city corporation,
paurashava on cantonmcnt Board.
(b) Rcgistration, change of ownership or renewal of Fitness of a bus, Truck, Prime over,
lorry, etc plying for hire.
26. Withdrawal of Exemption of Interest or profit form pensioners' sav1l1g certificate
(6th Sched ule, Part A, Paragraph 41)
27. Withdrawal of Tax exemption to production ofpelleted poultry feed and the bcnefit of Tax
exemption to Income from Fisheries will not be applicable ifit is owned by a company.

Football history in Brazil

Brazil is well known for its Carnival, its Beautiful Women and Football.

Whereas the first two of these items are bedded in early historical and cultural roots the third is much more recent dating back to the end of the last century.

It is a tale of true sportsmanship and ideals of adventure and of course good fortune ... and starts with an expatriate named Miller who worked on the railway construction project in Sao Paulo together with some 3000 other immigrant families from the British Isles in the last decades of the 19th century. At that time the population of Sao Paulo City was 300,000. This was the golden age of industrial development. Today Sao Paulo is the third largest in the world with over 10 million inhabitants.

Back to Mr. Miller who decided to send his young boy Charlie to England for a good all-round education. Charlie aged 10 soon after duly arrived at a school in Southampton called Bannisters in 1884. This was the beginning of a soccer apprenticeship by Brazil’s first player. Charles was a natural who quickly picked up the arts of this popular college game in England.

The football association was being formed at the time. Eton, Rugby, Charterhouse and other colleges all had developed their own rules to the game. Indeed Rugby refused to drop the ball handling and went on to devise their own separate game.

The game was also played in different styles about the country. In the south where the ground was hard and dry a dribbling game developed in which a quicker football was played with less passes. This was contrary to the passing game more popular up north where it was practised on muddy fields at a slower pace.

Young Miller therefore became skilled at the dribble, swerve, feign, use of rapid speed as well as in taking freekicks and heading. As an accomplished winger and striker he held school honours that were to gain him entry first into the Southampton Club team and then into the County team of Hampshire.

In 1892 a couple of years before his return to Brazil, Charlie was invited to play a game for the Corinthian Football Club a team formed of players invited from public schools and universities. This Club played football using the Greek Olimpian spirits of true sportmanship in the purest form. If a penalty was conceded by the team the goal keeper would not try to defend it. They were a team of ambassadors to the game that toured around the world and remain up until today where they play still under the Corinthian Casuals name, as amateurs.

On his return Charles brought some football equipment and a rules book with him. He then went on to develop the new rules of the game amongst the comunity in Sao Paulo.
In 1888 six years before his return the first sorts club (picture right) was founded in the City. SPAC, Sao Paulo Athletic Club. (Today SPAC Club is the location for the meetings of the Round Table No. 1 Sao Paulo on each third Tuesday night).
So it was then that the first clubs were formed in Sao Paulo. At the turn of the century. SPAC won the first three years championships. Miller’s skils were far and above his colleagues at this stage. He was infact given the honour of contributing his name to a move involving a deft flick of the ball with the heel "Chaleira" which today is still a marvel to see as practised by the skillful ball players of the local and national teams. Indeed the skills of such players as Rivelino, Socrates and the greatest of them all Pele, owe no small debt to the exploits of this poneer in Sao Paulo of modern day football and particularly the skilful dribbling game.

This story has many other historical curiosities amongst which one was the bond that Charles Miller kept with English football throughout his life. Teams from Southampton and Corinthians Club came over to Brazil and played against SPAC and other teams in Sao Paulo. One on occasion in 1910 a new local team was about to be formed after a tour of the Corintians team to Brazil and Charles was asked to suggest a name for the team. He replied why not call yourselves after Corintians and so it was that one of the most popular clubs in Brazil got its name. A team that today is Brazilian Champion (2005) and boasts great names amongst its past and present players.

A final anecdote to relate concerns the year 1988 when SPAC Club celebrated its centenary and the English Corintians Team came across again to play them at Morumbi Stadium. The end of the tour was a classic against the local professional Corintians paulista team with Socrates and Rivelino amongst its players. This game was played at Paecambu Stadium in Sao Paulo and true to Corinthian principles of good clean football the score was 1 to 0 in favor of the locals when as agreed Socrates changed shirts to play alongside the English amateurs. This did not affect the score unfortunately although a largely packed stadium was cheering on for a drawn result.

So there it is now told " with acknowledgement to others who have researched the story from the SPAC Club in Sao Paulo " and now relayed via the Round Table network to all who browse the web.

Let it not be forgotten that the game was invented to be played at the highest of ideals and such deft ball skills were duly brought to Brazil where they were to be uniquely grafted into purest golden treasures to be seen and held in wonder by all later generations until this day.