DEEMED INCOME- SECTION 19

Total 28 subsections related to 4 heads of income:

1. Income from House Property – 1 sub-section: (22) 3. Income from Business of Profession – 7 sub-sections: (6), (14) – (16), (18), (20) & (23)
2. Agricultural Income – 2 sub-sections: (17) & (19) 4. Income from other Sources – 18 sub-sections: (1)–(5), (7)–(13), (21), (21A), (21B), (24), (26), (27)
Section Items of deemed Grounds of considering as deemed income Year during which Head of income Extent of the
income added to total under which deemed income to
income added be added with
total income

19(1) Unexplained cash Offering no explanation about the nature and source of the Same income year Income from Entire amount
credit in the books credited amount, or the explanation offered is not for which the cash other sources
of accounts satisfactory in the opinion of the Deputy Commissioner of credit is done in the
Taxes (DCT). books of accounts.
19(2) Unrecorded Amount expended in the investment or acquisition of the Same income year -do- Excess of the
investment or valuable articles exceeds the amount recorded in this behalf for which the books amount expended
acquisition of in the books of accounts and no explanation is offered about of accounts are over the amount
bullion, jewellery the excess amount or the explanation offered is not maintained
recorded
or other valuable satisfactory in DCT’s opinion
articles
19(3) Unexplained Offering no explanation about the nature and source of the Same income year Income from Entire amount of
expenditure money for the expenditure, or the explanation offered is not in which the other sources expenditure
satisfactory in DCT’s opinion. expenditure is
incurred
19(4) Unrecorded Investments are not recorded in the books of accounts, if Same financial year -do- The value of
investments any, for any source of income and no explanations is offered immediately investments
about the nature and source of fund for the investments, or preceding the
the explanation offered in not satisfactory in DCT’s opinion. assessment year for
which the
investments are
made
19(5) Unrecorded The assessee is found to be the owner of the money, bullion, Same financial year -do- The money or the
ownership of jewellery or other valuable articles which is not recorded in immediately value of the
money, bullion, the books of accounts, if any, maintained for any source of preceding the bullion, jewellery
jewellery or other income and he offers no explanation about the nature and assessment year for
or other valuable
valuable articles source of fund for acquiring the assets or the explanation which the ownership
offered is not satisfactory in DCT’s opinion. of the assets in

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Section Items of deemed Grounds of considering as deemed income Year during which Head of income Extent of the
income added to total under which deemed income to
income added be added with
total income

found. articles.

19(6) Income derived The business or profession has been or was discontinued at Same income year Income from Entire amount
from discontinued any time before the commencement, or during the course of during which the business or
business or any income year and any income from such business or income is derived profession
profession profession would have been chargeable to tax if it had been
received in the income year in which it accrued or arose.
19(7) Dividend declared Dividend has been declared or distributed by a company The income year in Income from Entire amount
or distributed which the dividend other sources
is received
19(8) Difference The asset has been purchased from any company and the Year of purchase -do- Difference between
between the DCT has reason to believe that the price paid is less than the the price paid and
underpaid fair market value thereof the fair market
purchase price
value.
and the fair
market value of
any assets (other
than stock-in-
trade or stocks &
shares)
19(9) Salami or premia The salami or premia are received or receivable by virtue of Usually the income -do- Entire amount in
receipts by virtue lease as a lump sum amount year of receipt, but the receiving
of any lease at the option of the income year or
assessee, the amount
proportional yearly
may be allocated for
assessment purpose amount in other
proportionately to case
the years covered by
the entire lease
period, but not
exceeding 5 years
Section Items of deemed Grounds of considering as deemed income Year during which Head of income Extent of the
income added to total under which deemed income to
income added be added with
total income

Goodwill money The amount is received by way of goodwill money or receipt Income year during Income from Entire amount
19(10) or receipt as in the nature of compensation or damages for cancellation or which the amount is other sources
compensation or termination of contracts or licenses by the Government or received
damages any person.
19(11) Benefit or The benefit or advantage, whether convertible into money or Income year during Income from Money of the
advantage for not, is derived or account of cancellation of indebtedness which the benefit is other sources benefit or
cancellation of [not applicable for bank loan/interest waiver]. derived advantage
indebtedness
19(12) Managing agency The managing agency commission including compensation Income year during -do- Entire amount
commission is received for termination of agencies or any modification which the
of the terms and conditions relating thereto. commission is
received
19(13) Accidental The income is received by way of winnings from lotteries, Income year during -do- Entire amount
income crossword puzzles, card games and other games of any sort which the income is
or from gambling or betting in any form or of any nature received
whatsoever.
19(14) Income from Profits and gains are derived from insurance business carried Income year during Income from Entire amount to be
insurance on by the mutual insurance association and computed which the profits business or the income of the
business carried according to provisions of paragraph 8 of the fourth schedule and gains are profession mutual insurance
on by a mutual to the Income Tax ordinance(ITO) received
association
insurance
association
19(15) (a) Receipt back Any amount of deduction was allowed in the part for any Income year during Income from Amount of receipt
of loss, bad debt loss, bad debt or expenditure and subsequently received back which the receipt is business or
or expenditure in cash or in any other manner happened profession
(other than bank
interest)
(aa) Bank interest Interest payable to any commercial bank, or the Bangladesh Income year -do- Amount repining
or share of profit Shilpa Bank or the Bangladesh Shilpa Rin Sangstha, or share immediately unpaid.
remaining unpaid of profit payable to a bank run or Islamic Principles, though following the expiry
for 3 years not paid actually, was allowed as deduction because of of 3 years after the

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Section Items of deemed Grounds of considering as deemed income Year during which Head of income Extent of the
income added to total under which deemed income to
income added be added with
total income

mercantile system of accounts, but unpaid within 2 years concerned year of

after the expiry of the concerned year of deduction deduction
(b)Benefit Benefit has been derived regarding any trading liability for Income year during -do- The value of the
received regarding which deduction was allowed in the part and it has not been which the benefit is benefit
unpaid trading already treated as income derived
liability
(c) Trading A deduction was allowed in the part for a trading liability, Income year Income from Amount remaining
liability or portion but it has not been paid partly or fully within 3 years of the immediately business or unpaid
thereof remaining expiration of the concerned year of deduction. following the expiry profession
unpaid for 3 years of those 3 years

19(16) Profit from sale of The building, machinery or plant used for business or Income year during Income from Excess of sale
business building, profession is disposed of and the sale proceeds thereof which the asset is business or proceeds over the
machinery or exceeds the written down value (WDV) disposed of profession written down value
plant
(up to the
difference between
original cost &
WDV)

19(17) Profit from sale of The machinery or plant exclusively used for agricultural -do- Agricultural -do-
agricultural purpose is disposed of and the sale proceeds thereof exceeds income
machinery or the WDV
plant.
19(18) Insurance, salvage The insurance, salvage or compensation moneys are received Income year during Income from Excess of the
or compensation in respect of building, machinery or plant used for business which the money are business or moneys over the
moneys regarding or profession which is discarded, demolished or destroyed received profession WDV (up to the
business building, and the amount of such money exceeds the WDV of the
difference between
machinery or asset
Section Items of deemed Grounds of considering as deemed income Year during which Head of income Extent of the
income added to total under which deemed income to
income added be added with
total income

plant the original cost

and WDV less the
scrap value

19(19) Insurance salvage The insurance, salvage, or compensation moneys are -do- Agricultural -do-
or compensation received regarding machinery or plant used exclusively for income
moneys regarding agricultural purpose which is discarded, demolished or
agricultural destroyed and the amount of such moneys exceeds the WDV
machinery or of the asset
plant

19(20) Sale proceeds of The asset represents expenditure of a capital nature on Income year during Income from Sale proceeds [up
any asset scientific research related to business [as per the meaning of which the asset is business or to the capital
representing section 29(1) (xx)] and is sold disposed of profession expenditure on
capital
scientific research
expenditure on
scientific research in Bangladesh
related to business related to business
allowed as
deduction as per
section 29(1) (xx)

19(21) Loan from any Any sum or aggregate of sums exceeding Tk.1 lakh is Income year Income from The sum or part
person other than claimed or shown to have been received as loan from any immediately other sources there of remaining
a banking person, other than a banking company or a financial following the expiry unpaid
company or a institution, otherwise than by a crossed cheque drawn on a of 3 years after the
financial bank, and the loan is not paid back in full within 3 years end of concerned
institution from the end of the income year is which it is claimed or year of taking loan
remaining unpaid shown to have been received.
for 3 years
19(21A) Loan or gift Where any sum is claimed to have been received by an The income year in Income from The loan or gift

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Section Items of deemed Grounds of considering as deemed income Year during which Head of income Extent of the
income added to total under which deemed income to
income added be added with
total income

received from assessee as loan or gift during any income year from a which the loan or other sources
initial capital person who has transferred the sum within the period of gift is received
shown by other limitation stipulated in the rule made under the ITO, from
person in his the initial capital of his business or profession shown in his
return under self- return filed under section 83A (i.e., under self-assessment
assessment scheme) [Note: Sec. 83A omitted by FO 2008; thus ineffective
scheme during the from AY 2008-09].
period of
limitation
19(21B) Initial capital • Applicable to any assessee having income from The income year of Income from Amount transferred
transferred within business of profession transfer other sources
the period of • Violation of the bar at section 82BB to transfer
restriction partly or fully initial capital formed under
(FA2011) universal self assessment scheme within 5 years of
its formation.
19(22) Receipt from An owner of a house property receives any amount from The income year in Income from Entire amount in
tenant not tenant which is not adjustable against rent which the amount is house property the receiving
adjustable against received, or at the income year or
rent (Security option of the
proportional yearly
money) assessee, the amount
may be allocated for amount in other
assessment purpose case
in equal proportion
for 5 income years
19(23) Prescribed portion An exporter of garments transfers to pay person, the export Income year during Income from Prescribed portion
of export value of quota or any part thereof allotted to him by the Government which the export business or of the export value
garments quota is transferred profession of the garments
exportable against
exportable against
the export quota
transferred to the transferred
other person quota (this is 3% of
 Section Items of deemed Grounds of considering as deemed income Year during which Head of income Extent of the
income added to total under which deemed income to
income added be added with
total income

export value u/r 30A)

19(24) Increase in paid- • The amount is not received by crossed cheque or The income year of Income from Entire amount
up capital by bank transfer equity receipt other sources
issuing shares • This will be treated as the income of the company.
received by an
assessee being a
private limited
company or
public limited
company not
listed with a stock
exchange
19(26) Loan taken by a • The loan is not received by crossed cheque or bank The income year of Income from Entire amount
company transfer taking loan other sources
otherwise than by • This will be treated as the income of the borrowing
a crossed cheque company.
or bank transfer
(FA2011)
19(27) Purchase or hire • Applicable for company only The income year of Income from 50% of the amount
of motor car • If the company purchases directly or at hire purchase or hire other sources that exceeds 10%
where the value purchase system any car or jeep value of which of paid up capital
exceeds 10% of exceeds 10% of its paid up capital then 50% of the
the paid-up capital amount that exceeds 10% of paid up capital
(FA2011)
Deemed income subsequently to be allowed as deductions on payment or refund:
i) Proviso to section 19(15) (c) :
Trading liability or portion thereof remaining unpaid for 3 years is deemed to be income with the expiry of these 3 years but if it is paid in a subsequent
year, the amount paid shall be deducted in computing income of the year of payment.
ii) Proviso to section 19(21):
Personal loan previously considered as deemed income for non-payment within 2 years from the end of the year of taking loan, if paid in a subsequent
income year, the amount paid is to be allowed as deduction in the year of payment.

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iii) Proviso to section 19(22):
Unadjustable security money received by a house-owner from tenant if refunded partly or fully in a subsequent year, the amount refunded to be allowed as
deduction in the year of refund.