3rd Schedule AvqKi AvBb, 2023 355

Z…Zxq Zdwmj THE THIRD SCHEDULE

AePq fvZv, wbt‡kl fvZv I A¨vgU©vB‡Rmb DEPRECIATION ALLOWANCE,
[aviv 42, 49 Ges 50 `ªóe¨] DEPLETION ALLOWANCE AND
AMORTIZATION
[See section 42, 49 and 50]
Ask 1 PART I
AePq fvZv cwiMYbv COMPUTATION OF DEPRECIATION
ALLOWANCE

1| K„wl‡Z e¨eüZ cwim¤ú‡`i AePq fvZv|-(1) 1. Depreciation allowance on assets used

†Kv‡bv Ki`vZv KZ©…K K…wli D‡Ï‡k¨ e¨eüZ Zvnvi for agricultural purposes.-(1) Depreciation
gvwjKvbvaxb †Kv‡bv g~jawb cwim¤ú`, c~Z© ev †fŠZ allowance in respect of any capital asset, works or
AeKvVv‡gv eve` AePq fvZv, Ae‡jvwcZ g~‡j¨i Dci physical infrastructure owned by an assessee used
wbgœewY©Z mviYx‡Z wba©vwiZ nv‡i cÖ`Ë nB‡e, h_v:- for agricultural purposes shall be paid on the
written down value at the rate prescribed in the
table below, namely:-

mviYx (Table)
AeP‡qi nvi
µwgK bs g~jawb cwim¤ú` (kZvsk)
Rate of
Sl. No. Capital assets
depreciation
(percent)
(1) (2) (3)
BU, KbwµU, B¯úvZ ev mgRvZxq DcKiY Øviv wbwg©Z BgviZ ev KvVv‡gv
1. A building or structure constructed of brick, concrete, steel or similar 5
materials
wUb, euvk, Lo ev mgRvZxq `ªe¨ Øviv wbwg©Z Nievwo
2. 10
Houses constructed of tin, bamboo, thatch or similar materials
3. ¯’vqx †eov (permanent fence) 10
4. bjK~c (tube well) 10
5. U¨v¼ (tank) 10
6. †m‡Pi Kyqv, P¨v‡bj, cvBc (Irrigation wells, channels, pipes) 10
KvV ev euv‡ki ˆZwi K„wl miÄvg (Agricultural implements made of wood or
7. 20
bamboo)
8. IRb gvcvi hš¿ (Weighing machine) 10
Uªv±i,‡Z‡ji BwÄb Ges nvjKv hš¿ (Tractors, Oil Engines and Light
9. 10
Machinery)
UªvK, †Wwjfvwi f¨vb Ges Ab¨vb¨ †gvUihvb
10. 10
Trucks, delivery vans and other motor vehicles
11. cvBevi cvw¤ús hš¿cvwZ (Piper pumping equipment) 20
356 INCOME TAX MANUAL 3rd Schedule
12. Ahvwš¿K f¨vb (Non-mechanical van) 15
13. ev®ú BwÄb (steam engine) 10
14. KviLvbvi hš¿cvwZ (Factory machinery) 15
GB mviYx‡Z DwjøwLZ nq bvB GBiƒc mvaviY hš¿cvwZ, nvwZqvi, cøv›U I Ab¨vb¨ cwim¤ú`
15. Such general machinery, tools, plant and other assets are not mentioned 10
in this table

(2) †hB‡¶‡Î †Kv‡bv Avqe‡l© GBiƒc †Kv‡bv g~jawb (2) Where in any income year any such
cwim¤ú`, c~Z© ev †fŠZ AeKvVv‡gv m¤ú~Y©fv‡e Ki`vZvi K„wli capital asset, plant or physical infrastructure is not
D‡Ï‡k¨ e¨eüZ nq bvB, †mB‡¶‡Î D³ Avqe‡l©i Rb¨ Dc- wholly used for agricultural purposes of the
Aby‡”Q` (1) Gi Aaxb Aby‡gvw`Z AePq fvZv D³ cwim¤ú` assessee, the depreciation allowance allowed
m¤ú~Y©fv‡e K„wli D‡Ï‡k¨ e¨eüZ nB‡j †h cwigvY AePq under sub-section (1) for that income year shall be
fvZv Aby‡gvw`Z nBZ Zvnvi hyw³m½Z AvbycvwZK nv‡i cÖ‡`q the amount of depreciation allowance allowed if
nB‡e| the said asset was wholly used for agricultural
purposes. It shall be payable at its fair proportional
rate.

2| e¨emvq e¨eüZ cwim¤ú‡`i Dci AePq fvZv|- 2. Depreciation allowance on assets used
(1) †Kv‡bv Ki`vZv KZ©…K e¨emvi D‡Ï‡k¨ e¨eüZ Ges Zvnvi in business.–(1) Depreciation allowance for the
gvwjKvbvaxb †Kv‡bv cwim¤ú‡`i Dci mswkøó Avqe‡l©i Rb¨ relevant income year on any asset used by an
AePq fvZv GB As‡k ewY©Z wfwË, nvi Ges mxgve×Zv, assessee for business purposes and owned by him
†hvM¨Zv I kZ©vewj mv‡c‡¶, cÖ`Ë nB‡e| shall be granted on the basis, rates and limitations,
qualifications and conditions set out in this part.
(2) Dc-Aby‡”Q` (1) G DwjøwLZ AePq fvZv nB‡e (2) The depreciation allowance referred to
Ki`vZv KZ©…K e¨emvi D‡Ï‡k¨ e¨eüZ Ges Zvnvi in sub-section (1) shall be the ordinary
gvwjKvbvaxb †Kv‡bv cwim¤ú‡`i Dci mswkøó Avqe‡l©i Rb¨ depreciation allowance and the initial depreciation
mvaviY AePq fvZv Ges cÖviw¤¢K AePq fvZv, Ges Dnv D³ allowance for the relevant income year on any
cwim¤ú‡`i Ae‡jvwcZ g~‡j¨i Dci GB As‡k ewY©Z wfwË, asset used by an assessee for business purposes
nvi, mxgve×Zv, †hvM¨Zv I kZ©vewj mv‡c‡¶ cÖ`Ë nB‡e| and owned by him, and shall be on the depreciated
value of the said asset at the basis, rate, subject to
limitations, qualifications and conditions.
(3) †hB‡¶‡Î †Kv‡bv Avqe‡l© GBiƒc cwim¤ú` (3) Where in any income year such asset is
m¤ú~Y©fv‡e Ki`vZvi e¨emvi D‡Ï‡k¨ e¨eüZ nq bvB, not wholly used for the purpose of the business of
†mB‡¶‡Î D³ Avqe‡l©i Rb¨ Dc-Aby‡”Q` (1) Gi Aaxb an assessee, the depreciation allowance allowed
Aby‡gvw`Z AePq fvZv D³ cwim¤ú` m¤ú~Y©fv‡e e¨emvi under sub-section (1) for that income year shall be
D‡Ï‡k¨ e¨eüZ nB‡j †hB cwigvY AePq fvZv Aby‡gvw`Z payable at a fair proportionate rate of the amount
nZ Zvnvi hyw³m½Z AvbycvwZK nv‡i cÖ‡`q nB‡e| of depreciation allowance which would be
admissible if the said asset been wholly used for
the purpose of the business.
(4) GB Aby‡”Q‡`i Aaxb †Kv‡bv cwim¤ú‡`i Dci (4) Depreciation allowance shall not be
AePq fvZv cÖ‡`q nB‡e bv, hw` bv Ki`vZvi wiUv‡b© D³ payable on any asset under this section, unless the
cwim¤ú` e¨emvi D‡Ï‡k¨ e¨eüZ nBevi `vwe cÖwZdwjZ nq| return of an assessee reflects a claim that the asset
is used for business purposes.
3rd Schedule AvqKi AvBb, 2023 357
(5) †hB‡¶‡Î cwim¤ú`wU m¤ú~Y©fv‡e e¨emvi (5) Where the asset is not fully used for
D‡Ï‡k¨ e¨eüZ nq bvB, †mB‡¶‡Î D³ cwim¤ú‡`i business purposes, in calculating the depreciated
Ae‡jvwcZ g~j¨ cwiMYbv Kwievi †¶‡Î, cwim¤ú`wU value of the said asset, the asset shall be deemed
m¤ú~Y©fv‡e e¨emvi D‡Ï‡k¨ e¨eüZ nBqvwQj g‡g© MY¨ nB‡e| to have been fully used for business purposes.
(6) †Kv‡bv cwim¤ú‡`i wecix‡Z Aby‡gvw`Z †gvU (6) The total deduction allowed against any
we‡qvRb D³ cwim¤ú‡`i µqg~‡j¨i AwaK nB‡e bv| asset shall not exceed the purchase price of the
said asset.
(7) †Kv‡bv wbw`©ó wjwRs †Kv¤úvwbi gvwjKvbvaxb Ges (7) Depreciation of assets owned by a
Aci †Kv‡bv e¨w³i wbKU wjR cÖ`Ë cwim¤ú‡`i AePq †Kej particular leasing company and leased to any other
D³ cwim¤ú` nB‡Z D™¢~Z wjR fvov eve` Av‡qi wecix‡Z person shall be deductible only against the lease
we‡qvRb‡hvM¨ nB‡e| rental income arising from such assets.
(8) GB Aby‡”Q‡`i Aaxb dvBbvÝ wjR cÖ`vbKvix (8) No allowance shall be payable under
(lessor) †Kv‡bv wbw`©ó †Kv¤úvwbi ev cÖwZôv‡bi AbyK~‡j this section in favor of the finance lessor to any
GBiƒc †Kv‡bv hš¿cvwZ, cøv›U, hvbevnb ev Avmevec‡Îi Dci specified company or establishment in respect of
†Kv‡bv fvZv cÖ‡`q nB‡e bv hvnv †Kv‡bv wjRMÖnxZv‡K any such machinery, plant, vehicle or furniture
dvBbvwÝqvj wjR wnmv‡e †`Iqv nBqv‡Q| which has been given to any lessee as a financial
lease.
(9) GB Aby‡”Q‡`i Aaxb †Kv‡bv fvZv Aby‡gvw`Z (9) No allowance shall be admissible under
nB‡e bv hw`-- this section if—
(A) wiUvb© `vwLj Kwievi mgq †evW© KZ©…K (i) fails to furnish particulars prescribed
wba©vwiZ weeiYvw` A_ev DcKi Kwgkbvi KZ©…K PvwnZ Ab¨vb¨ by the Board or other information and documents
Z_¨vw` I `wjjvw` `vwLj Kiv bv nq; Ges required by the Deputy Commissioner of Taxes
while filing the return; and
(Av) Abyiƒc cwim¤ú` we‡eP¨ Avqe‡l© e¨eüZ (ii) Similar assets are not used in the
bv nq| relevant income year.
(10) GB As‡ki D‡Ïk¨c~iYK‡í, 'wbw`©ó wjwRs (10) For the purposes of this section,
†Kv¤úvwb' A_© †Kv‡bv wjwRs †Kv¤úvwb, e¨vswKs †Kv¤úvwb ev ‘specified leasing company’ means a leasing
Ab¨ †Kv‡bv Avw_©K cÖwZôvb hvnv wjwRs e¨emvi mwnZ m¤ú…³| company, banking company or any other financial
institution engaged in the business of leasing.

3| †Kv‡bv cwim¤ú‡`i µqg~j¨ wba©viY|-(1) †Kv‡bv 3. Determination of the purchase price of

Ki`vZvi †Kv‡bv †gvUihv‡bi µqg~j¨ AbwaK 30 (wÎk) j¶ an asset.-(1) The purchase price of a motor
UvKv ewjqv we‡ePbv Kiv nB‡e hw` D³ AePq fvZv cÖ‡`q vehicle of an assessee shall be deemed to be not
†gvUihvb wk¶v cÖwZôv‡bi QvÎQvÎx, wk¶K ev Ki`vZvi more than taka 30 (thirty) lakh if the said
e¨emv cÖwZôv‡bi Kg©Pvix cwiKj wb‡qvwRZ evm ev wgwbevm depreciation allowance is payable for any
e¨ZxZ †Kv‡bv hvÎxevnx †gvUihvb nq| passenger motor vehicle other than a bus or
minibus used by students, teachers or employees
of the assesse’s business establishment.
(2) †Kv‡bv cwim¤ú‡`i µqg~j¨ cwiMYbvi †¶‡Î, (2) In computing the purchase price of an
Ki`vZv KZ©…K miKvi ev †Kv‡bv KZ©…c¶ ev †Kv‡bv e¨w³i asset, the value of any allowance, subsidy, rebate
wbKU nB‡Z M„nxZ †Kv‡bv gÄywi, fZ©ywK, †iqvZ ev Kwgkb or commission and assistance (other than interest-
Ges mnvqZv (my`mn ev my`gy³ FY e¨ZxZ) Gi g~j¨ ev` bearing or interest-free loans) received by an
hvB‡e| assessee from the Government or any authority or
person shall be excluded.
358 INCOME TAX MANUAL 3rd Schedule
(3) †hB‡¶‡Î Ki`vZv Dc-Aby‡”Q` (1) G (3) Where an assessee acquires any used
DwjøwLZ cwim¤ú` e¨ZxZ †Kv‡bv e¨eüZ cwim¤ú` AR©b assets other than those mentioned in sub-section
K‡ib, †mB‡¶‡Î D³ cwim¤ú‡`i AR©bg~j¨ Zvnvi b¨vh¨ (1), the acquisition value of the said asset shall not
evRvi g~‡j¨i AwaK nB‡e bv| exceed its fair market value.
(4) †hB‡¶‡Î †Kv‡bv cwim¤ú` AR©‡bi mwnZ (4) Where the acquisition of an asset
ˆe‡`wkK gy`ªvq M„nxZ FY ev ˆe‡`wkK gy`ªvi m¤ú…³Zv _v‡K, involves a foreign currency loan or foreign
†mB‡¶‡Î wbgœewY©Z mgš^q Kwievi ci †Kv‡bv cwim¤ú‡`i currency exposure, the acquisition value of an
AR©bg~j¨ cwiMYbv Kiv nB‡e, h_v:- asset shall be calculated after making the
following adjustments, namely:-
(K) wewbgq nvi cwieZ©bRwbZ ¶wZ A_ev (a) including losses due to exchange
wewbgq nvi †nwRs eve` e¨q †hvM Kwiqv; rate fluctuations or costs for exchange rate
hedging;
(L) wewbgq nvi cwieZ©bRwbZ jvf we‡qvM (b) excluding gains due to exchange
Kwiqv| rate fluctuations.

4| mvaviY AePq fvZvi nvi|-†Kv‡bv cwim¤ú‡`i 4. Rate of normal depreciation allowance.-

Ae‡jvwcZ g~‡j¨i Dci wbgœewY©Z mviYx‡Z DwjøwLZ nv‡i The allowance for normal depreciation shall be
mvaviY AePq fvZv cwiMYbv Kiv nB‡e, h_v:- computed on the depreciated value of an asset at
the rate specified in the table below, namely:-

mviYx (Table)
nvi (Ae‡jvwcZ
µwgK bs cwim¤ú‡`i †kÖwY g~‡j¨i %)
Sl. No. Class of assets Rate (% of
written
down value)
(1) (2) (3)
BgviZ (GB mviYx‡Z Ab¨ †Kv‡bvfv‡e wbw`©ó bv _vwK‡j)
1. 5
Building (unless otherwise specified in this table)
2. KviLvbv feb (factory building) 10
3. AvmevecÎ I wdwUsm (furniture and fittings) 10
4. Awd‡mi miÄvg (office equipment) 10
hš¿cvwZ, ¯’vcbv I miÄvg (GB mviYx‡Z Ab¨ †Kv‡bvfv‡e wbw`©ó bv _vwK‡j)
5. Machinery, plant and equipment (unless otherwise is not specified in this 10
table)
mgy`ªMvgx RvnvR (seagoing ship)
(K) b~Zb ((a) new) 5
(L) cyivZb µ‡qi mgq hvnvi eqm-((b) old at the time of purchase whose age is-)
6.
(A) AbwaK 10 ermi ((i) not more than 10 years) 10
(Av) [10 ermi ev Z‡ZvwaK][1] 10 ermi Gi AwaK[1] ((ii) [10 years or more][1]
20
more than 10 years[1])
___________________________________________________________ __
1
Omitted ‘10 years or more’ and substituted ‘more than 10 years’ by F.O. 2025;
3rd Schedule AvqKi AvBb, 2023 359
G·-‡i, B‡j±ª‡_ivwcDwUK I Dnvi LyPiv hš¿vskmn Ab¨vb¨ †gwWK¨vj hš¿cvwZ (X-ray,
7. 20
electrotherapeutic and other medical equipment including its spare parts)
e¨vUvwi PvwjZ G¨vcv‡iUvm I wiPv‡R©ej e¨vUvwi
8. 30
Battery operated appliances and rechargeable batteries
AwWI-wfRyqvj cY¨ Drcv`b I cÖ`k©‡bi Rb¨ e¨eüZ hš¿cvwZ
9. 20
Equipment used for production and display of audio-visual products
fvovq PvwjZ e¨ZxZ mKj cÖKvi †gvUihvb
10. 10
All types of motor vehicles except those driven on hire
11. fvovq PvwjZ mKj cÖKvi †gvUihvb (All types of motor vehicles on hire) 20
wcÖ›Uvi, gwbUi I Avbylw½K AvB‡Ugmn Kw¤úDUvi nvW©Iqvi
12. 25
Computer hardware including printers, monitors and ancillary items
13. cÖ‡dkbvj I †idv‡iÝ eB (Professional and reference books) 25
Gqviµvd&U, G¨v‡ivBwÄb I Gwiqvj d‡UvMÖvwdK hš¿cvwZ
14. 30
Aircraft, aeroengines and aerial photographic equipment
KuvP ev cøvmwUK cY¨ ev KbwµU cvBc ˆZwi‡Z e¨eüZ
15. 30
Used in making glass or plastic products or concrete pipes
LwbR‡Zj m¤úwK©Z (Related to mineral oil)
(K) gvwUi bx‡P ¯’vwcZ miÄvgvw` ((a) Equipment installed underground) 100
16. (L) enb‡hvM¨ eqjvi, Lbb hš¿, I‡qj‡nW U¨vsK I wiMmn gvwUi Dc‡i ¯’vwcZ Ab¨vb¨
miÄvgvw` ((b) other above ground equipment including portable 25
boilers, drilling rigs, wellhead tanks and rigs)
17. †mZy (the bridge) 2
18. iv¯Ív (road) 2
19. d¬vBIfvi (flyover) 2
20. †cf‡g›U ivbI‡q, U¨vw·I‡q (Pavement Runway, Taxiway) 2.5
21. G¨v‡cÖvb, Uvig¨vK (Apron, tarmac) 2.5
22. †evwW©s weªR (Boarding Bridge) 10
†hvMv‡hvM I AbymÜvb mnvqK Ges Ab¨vb¨ miÄvg (Communication and search aids
23. 5
and other tools)
GB mviYx‡Z DwjøwLZ nq bvB GBiƒc mKj †fŠZ cwim¤ú`
24. 10
All such dowry resources are not mentioned in this table

5| cÖviw¤¢K AePq fvZv|-(1) †hB‡¶‡Î †Kv‡bv feb 5. Initial Depreciation Allowance.-(1) Where
bewbwg©Z nBqv‡Q A_ev hš¿cvwZ ev ¯’vcbv Bnvi AšÍf©y³ †Kv‡bv any building has been newly constructed or any
cwim¤ú` cÖ_gev‡ii g‡Zv evsjv‡`‡k e¨envi Kiv nBqv‡Q, machinery or plant has been installed in
†mB‡¶‡Î GB Aby‡”Q‡` ewY©Z mxgv I kZ©vewj mv‡c‡¶, Dc- Bangladesh for the first time, initial depreciation
Aby‡”Q` (4) G DwjøwLZ nv‡i cÖviw¤¢K AePq fvZv Aby‡gvw`Z allowance shall be allowed at the rate specified in
nB‡e| sub-paragraph (4), subject to the limits and
conditions set out in this paragraph.
(2) wbgœewY©Z cwim¤ú‡`i †¶‡Î †Kv‡bv cÖviw¤¢K AePq (2) No early depreciation allowance shall be
fvZv Aby‡gvw`Z nB‡e bv, h_v:- allowed in respect of the following assets,
namely:-
(K) fvovq LvUv‡bv nq bvB GBiƒc †gvUihvb, Ges (a) such motor vehicle not hired, and
360 INCOME TAX MANUAL 3rd Schedule
(L) BZtc~‡e© evsjv‡`‡k e¨eüZ nBqv‡Q GBiƒc (b) any such machinery or installation
†h‡Kv‡bv hš¿cvwZ ev ¯’vcbv| previously used in Bangladesh.
(3) †Kv‡bv Ki`vZv KZ©…K †h Avqe‡l© Zvnvi e¨emv (3) Initial depreciation allowance shall be
ev †ckvi D‡Ï‡k¨ †Kv‡bv cwim¤ú` cÖ_g e¨eüZ nBqv‡Q allowed in respect of the income year in which any
A_ev †h Avqe‡l© cÖ_g evwYwR¨K Drcv`b ïiæ nBqv‡Q, GB 2 asset is first used by an assessee for the purpose
(`yB) Gi g‡a¨ hvnv c‡i N‡U, †mB Avqe‡l©i †¶‡Î cÖviw¤¢K of his trade or profession or in the income year in
AePq fvZv Aby‡gvw`Z nB‡e| which commercial production is first commenced,
whichever occurs later.
(4) mswkøó cwim¤ú‡`i µqg~‡j¨i Dci wbgœewY©Z (4) Initial depreciation allowance shall be
mviYx‡Z DwjøwLZ nv‡i cÖviw¤¢K AePq fvZv cwiMYbv Kiv calculated on the purchase price of the asset
nB‡e, h_v:- concerned at the rate specified in the table below,
namely:-

mviYx (Table)
cÖviw¤¢K
AeP‡qi nvi
µwgK bs cwim¤ú`
(Initial
Sl. No. Assets
depreciation
rate)
(1) (2) (3)
1. †h‡Kv‡bv ai‡bi BgviZ (Any type of building) 10%
fvovq PvwjZ bq GBiƒc[1] RvnvR ev †gvUihvb e¨ZxZ Òhš¿cvwZ ev ¯’vcbvÓ Gi AvIZvfz³
2. †h‡Kv‡bv cwim¤ú` (Any asset falling within the scope of “machinery or 25%
plant”, other than ships or motor vehicles not[1] driven on hire)

6| hš¿cvwZ ev ¯’vcbvi Dci Z¡ivwš^Z AePq fvZv|- 6. Accelerated depreciation allowance on

(1) †hB‡¶‡Î hš¿cvwZ ev ¯’vcbvi AvIZvfy³ †h‡Kv‡bv machinery or plant.-(1) Where machinery or
cwim¤ú` evsjv‡`‡k Aew¯’Z †Kv‡bv wkí ¯’vcbvq e¨eüZ nq, any asset covered by the plant is used in any
†mB‡¶‡Î GB Aby‡”Q‡` ewY©Z mxgv I kZ©vewj mv‡c‡¶, Dc- industrial undertaking set up in Bangladesh,
Aby‡”Q` (3) G DwjøwLZ nv‡i Z¡ivwš^Z AePq fvZv Aby‡gvw`Z accelerated depreciation allowance shall be
nB‡e| allowed at the rate specified in sub-paragraph (3),
subject to the limits and conditions set out in this
paragraph.
(2) wkí ¯’vcbvwUi evwYwR¨K Drcv`b ïiæi ermi (2) Accelerated depreciation allowance
nB‡Z 3 (wZb) ermi ch©šÍ Z¡ivwš^Z AePq fvZv Aby‡gvw`Z shall be allowed up to 3 (three) years from the year
nB‡e| of commencement of commercial production of
the industrial undertaking.
(3) mswkøó cwim¤ú‡`i µqg~‡j¨i Dci wbgœewY©Z (3) Accelerated depreciation shall be
mviYx‡Z DwjøwLZ nv‡i Z¡ivwš^Z AePq cwiMYbv Kiv nB‡e, calculated on the purchase price of the asset
h_v:- concerned at the rate specified in the table below,
namely:-
___________________________________________________________ __
1
Inserted ‘not’ by F.O. 2025;
3rd Schedule AvqKi AvBb, 2023 361
mviYx (Table)
Z¡ivwš^Z
µwgK bs evwYwR¨K Drcv`b ïiæi Avqel© AeP‡qi nvi
Sl. No. Income year of commencement of commercial production Accelerated
depreciation
rate
(1) (2) (3)
1. cÖ_g Avqel© (First income year) 50%
2. wØZxq Avqel© (Second income year) 30%
3. Z„Zxq Avqel© (Third income year) 20%

(4) wbgœewY©Z kZ©vewj, mxgv I †hvM¨Zv mv‡c‡¶, (4) Allowance of accelerated depreciation
Z¡ivwš^Z AePq fvZv Aby‡gvw`Z nB‡e, h_v:- shall be allowed subject to the following
conditions, limits and qualifications, namely:-
(K) mswkøó cwim¤ú` Dc-Aby‡”Q` (1) G DwjøwLZ (a) the relevant resource is owned by the
wkí ¯’vcbvi gvwjKvbvaxb Ges c~‡e© evsjv‡`‡k e¨eüZ nq industrial undertaking referred to in sub-paragraph
bvB; (1) and has not previously been used in
Bangladesh;
(L) wkí ¯’vcbvwUi gvwjKvbv I e¨e¯’vcbv- (b) Ownership and management of
industrial undertaking—
(A) AvcvZZ ejer †Kv‡bv AvBb Øviv ev (i) managed by any law for the time
AvB‡bi Aaxb cÖwZwôZ †Kv‡bv ewW K‡c©v‡iU KZ©…K cwiPvwjZ being in force or by a body corporate established
hvnvi cÖavb Kvh©vjq evsjv‡`‡k Aew¯’Z; ev under the law having its head office in
Bangladesh; or
(Av) †Kv¤úvbx AvBb, 1994 (1994 m‡bi 18 (ii) carried on by a company as
bs AvBb) G msÁvwqZ †Kv‡bv †Kv¤úvwb KZ©…K cwiPvwjZ hvnvi defined in the Companies Act, 1994 (Act No. 18
wbewÜZ Kvh©vjq evsjv‡`‡k Aew¯’Z Ges evwYwR¨K Drcv`b of 1994) having its registered office in Bangladesh
ïiæi Zvwi‡L hvnvi Aby‡gvw`Z I cwi‡kvwaZ g~jab Kgc‡¶ and having an authorized and paid-up capital of at
20 (wek) j¶ UvKv; least 20 (twenty) lakh taka on the date of
commencement of commercial production;
(M) wkí ¯’vcbvwU - (c) the industrial undertaking—
(A) wUAvBGb avix; (i) TIN holder;
(Av) GB AvB‡bi weavbvewj Abymv‡i wnmve (ii) maintain accounts in accordance
msi¶Y K‡i; with the provisions of this Act;
(B) ¯^Zš¿ I c„_Kfv‡e wnmve msi¶Y K‡i; (iii) keep separate and distinct
accounts;
(C) GB AvB‡bi weavbvewj Abymv‡i wiUvb© (iv) file returns in accordance with
`vwLj K‡i; the provisions of this Act;
(N) wbgœewY©Z c×wZ AbymiY K‡i, h_v:- (d) by following the procedure described
below, namely:-
362 INCOME TAX MANUAL 3rd Schedule
(A) †ev‡W©i wbKU, wewaeÜ dig I c×wZ‡Z, (i) Application for accelerated
evwYwR¨K Drcv`b ïiæi gv‡mi †kl w`b nB‡Z 6 (Qq) gv‡mi depreciation allowance shall be made to the Board,
g‡a¨ Z¡ivwš^Z AePq fvZvi Rb¨ Av‡e`b Kwi‡Z nB‡e; in the prescribed form and manner, within 6 (six)
months from the last day of the month of
commencement of commercial production;
(Av) Av‡e`bc‡Îi mwnZ GB g‡g© GKwU (ii) The application shall be
†NvlYv mshy³ Kwi‡Z nB‡e †h, wkí ¯’vcbvwU GB AvB‡bi accompanied by a declaration to the effect that the
†Kv‡bv avivi Aaxb Ki Ae¨vnwZ cvq bvB, Ges Ki Ae¨vnwZi industrial undertaking is not exempted from tax
Rb¨ †ev‡W©i wbKU †Kv‡bv Av‡e`b K‡i bvB Ges Kwi‡e bv| under any section of this Act, and has not and will
not make any application to the Board for
exemption from tax.
(5) †Kv‡bv Avqe‡l© †Kv‡bv cwim¤ú‡`i Z¡ivwš^Z (5) If accelerated depreciation allowance is
AePq fvZv Aby‡gvw`Z nB‡j D³ cwim¤ú‡`i AbyKy‡j GB allowed on any asset in any income year, no
AvB‡bi Aaxb †Kv‡bv mvaviY ev cÖviw¤¢K AePq fvZv normal or early depreciation allowance under this
Aby‡gvw`Z nB‡e bv| Act shall be allowed in respect of such asset.

7| cwim¤ú‡`i weµq ev n¯ÍvšÍi Ges Dnvi jvf ev 7. Provisions relating to sale or transfer of
¶wZ m¤úwK©Z e¨e¯’v|-†hB‡¶‡Î †Kv‡bv Avqe‡l© †Kv‡bv assets and profit or loss thereon.-Where in
Ki`vZv KZ©…K †Kv‡bv cwim¤ú` weµq ev n¯ÍvšÍi Kiv nq, any income year any asset is sold or transferred by
†mB‡¶‡Î D³ cwim¤ú‡`i wecix‡Z GB As‡ki Aaxb D³ an assessee, no depreciation allowance shall be
Avqe‡l© †Kv‡bv AePq fvZv Aby‡gvw`Z nB‡e bv| allowed under this part against such asset in that
income year.

8| e¨vL¨v|-GB As‡ki D‡Ïk¨ c~iYK‡í,- 8. Explanation-For the purposes of this Part,-

(1) Òcwim¤ú`Ó A_© †Kv‡bv e¨w³i gvwjKvbvaxb (1) “asset” means tangible immovable
¯úk©‡hvM¨ A¯’vei m¤úwË, ¯’vei m¤úwË (cwZZ f~wg e¨ZxZ), property, immovable property (other than waste
ev ¯’vei m¤úwˇZ KvVv‡gvMZ Dbœqb- land), or structural improvements on immovable
property owned by a person-
(K) hvnvi ¯^vfvweK e¨envi Dc‡hvMx Avqy 1 (GK) (a) whose normal useful life exceeds 1
erm‡ii AwaK ; (one) year;
(L) ¯^vfvweK e¨env‡ii d‡j hvnvi g~j¨ nªvm cvq (b) which is reduced in value or rendered
ev e¨envi Abyc‡hvMx nq; Ges unusable by normal use; and
(M) hvnvi Rb¨ GB AvB‡bi †Kv‡bv weav‡bi Aaxb (c) for which no allowance other than
AePq fvZv e¨ZxZ Ab¨ †Kv‡bv fvZv Aby‡gvw`Z b‡n; depreciation allowance is admissible under any
provision of this Act;
(2) ÒAvmevecÎÓ A‡_© wdwUsm AšÍf©y³ nB‡e; (2) “furniture” shall include fittings;
(3) Ò¯’vcbvÓ A‡_© e¨emvi D‡Ï‡k¨ e¨eüZ RvnvR, (3) “establishment” shall include vessels,
hvbevnb, eB, ˆeÁvwbK miÄvg, Ges mvwR©K¨vj hš¿cvwZ vehicles, books, scientific instruments, and
AšÍf©y³ nB‡e; surgical instruments used for business purposes;
(4) ÒRvnvRÓ A‡_© †Kv‡bv w÷gvi, †gvUi PvwjZ (4) “vessel” shall include any steamer,
Rjhvb, †mBj, UvM †evU, Kv‡M©vi Rb¨ B¯úvZ ev †jvnvi motor vessel, sail, tug boat, steel or iron barge for
cvUvZb, Kv‡Vi Kv‡M©v †evU, †gvUi j I w¯úW †evU AšÍf©y³ cargo, wooden cargo boat, motor launch and speed
nB‡e; boat;
3rd Schedule AvqKi AvBb, 2023 363
(5) ÒKvVv‡gvMZ DbœqbÓ (¯’vei m¤úwË m¤úwK©Z), (5) “structural development” (in relation
A‡_© †Kv‡bv BgviZ, iv¯Ív, WªvBfI‡q, Kvi cvK©, †ijI‡q to immovable property), means any building, road,
jvBb, cvBc jvBb, †mZy, Uv‡bj, Gqvi‡cvU© ivbI‡q, driveway, car park, railway line, pipe line, bridge,
K¨v‡bj, WK, Iqvd©, aviK cÖvPxi, †eov, we`¨yr jvBb, cvwb tunnel, airport runway, canal, dock, wharf,
ev cvwb wb®‹vkb cvBc, bvjv, j¨vÛ¯‹vwcs ev W¨vg AšÍf©y³ retaining wall, fence, power line; , shall include
nB‡e; water or drainage pipes, drains, landscaping or
dams;
(6) ÒAe‡jvwcZ g~j¨Ó A_©- (6) “unrealized value” means—
(K) †hB‡¶‡Î cwim¤ú`wU †Kv‡bv Avqe‡l© (a) in case the asset is acquired in any
AwR©Z nq, †mB‡¶‡Î D³ cwim¤ú` eve` Aby‡gvw`Z †Kv‡bv income year, the purchase price of the asset less
cÖviw¤¢K fvZv ev` w`qv m¤ú`wUi µqg~j¨; any initial allowance allowed in respect of the
asset;
(L) Ab¨vb¨ †¶‡Î, m¤ú`wUi µqg~j¨ nB‡Z (b) in other cases, the purchase price
c~e©eZ©x Avqel© ev el©mg~‡ni Ki wba©viYx‡Z D³ cwim¤ú‡`i of the asset less the sum of the depreciation
wecix‡Z Aby‡gvw`Z AePq fvZvmg~‡ni mgwói we‡qvMdj| allowances allowed against the asset in the tax
assessment for the preceding income year or years.

Ask 2 PART II
A¨vgU©vB‡Rkb cwiMYbv COMPUTATION OF AMORTIZATION

1| cwiMYbv|-GB As‡ki Aaxb A¨vgU©vB‡Rkb fvZv mij 1. Computations.-The amortization allowance

ˆiwLK c×wZ‡Z cwiMYbv Kwi‡Z nB‡e| under this Part shall be calculated on a straight line
basis.

2| jvB‡mÝ wd-Gi A¨vgU©vB‡Rkb|-(1)[1] †Kej 2. Amortization of license fees.-(1)[1] Where

miKvi Aby‡gvw`Z †Kv‡bv KZ©…c‡¶i wbKU nB‡Z `yB ev an assessee, being a resident company, paid any
Z‡ZvwaK ermi e¨emv cwiPvjbvi Rb¨ AbygwZ cÖvwßi D‡Ï‡k¨ sum for the purpose of obtaining a permission
†Kv‡bv wbevmx †Kv¤úvwb Ki`vZv, jvB‡mÝ wd wnmv‡e †Kv‡bv from any authority authorised by the government
A_© cwi‡kva Kwi‡j, Dnv Ki`vZvi D³ e¨emvi Avq nB‡Z applicable for two or more years to run a business,
jvB‡m‡Ýi †gqv‡`i †kl ermi ch©šÍ AvbycvwZK nv‡i LiP the assessee shall be allowed a deduction of an
Aby‡gvw`Z nB‡e| amount proportionate to such years and such
deduction shall continue till the last year of the
period for whcih the license was granted.

3|[1] cÖvK-cÖviw¤¢K e¨‡qi A¨vgU©vB‡Rkb|-cÖvK-cÖviw¤¢K 3.[1] Amortization of pre-commencement

e¨‡qi A¨vgU©vB‡Rk‡bi nvi 20% (wek kZvsk) nB‡e| cost.-The rate of amortization of pre-
commencement expenses shall be 20% (twenty
percent).

___________________________________________________________ __
1
Omitted ‘(1)’ and substituted ‘more than 10 years’ by F.O. 2025;
2
Re-numbered ‘Paragraphs 3, 4, 5, 6, 7’ by F.O. 2025;
364 INCOME TAX MANUAL 3rd Schedule
4| M‡elYv I Dbœqb e¨‡qi A¨vgU©vB‡Rkb|- M‡elYv I 4. Amortization of research and
Dbœqb e¨‡qi A¨vgU©vB‡Rk‡bi nvi 10% (`k kZvsk) nB‡e| development expenditure.-The rate of
amortization of research and development
expenditure shall be 10% (ten percent).

5| Kw¤úDUvi mdUIqvi I A¨vwcø‡Kk‡bi 5. Amortization of computer software

A¨vgU©vB‡Rkb|-e¨envi Dc‡hvMx Kw¤úDUvi mdUIqvi I and applications.-The rate of amortization of
A¨vwcø‡Kk‡bi A¨vgU©vB‡Rk‡bi nvi wbgœewY©Zfv‡e Aby‡gvw`Z usable computer software and applications shall be
nB‡e, h_v: allowed as follows, namely:
(K) evsjv‡`‡k ˆZqviK„Z †Kv‡bv mdUIqvi I (a) 20% (twenty percent) in respect of any
A¨vwcø‡Kk‡bi †¶‡Î 20% (wek kZvsk); software and applications developed in
Bangladesh;
(L) evsjv‡`‡ki evwn‡i †Kv‡bv mdUIqvi I (b) 10% (ten percent) in respect of any
A¨vwcø‡Kk‡bi †¶‡Î 10% (`k kZvsk)| software and applications outside Bangladesh.

6| Abby‡gvw`Z e¨‡qi A¨vgU©vB‡Rkb|-GB AvB‡bi 6. Amortization of unauthorized

Aaxb Ki wba©viYKv‡j Ki`vZv KZ©…K `vweK„Z †Kv‡bv e¨q expenditure.- If any expenditure claimed by an
g~jawb cÖK„wZi ewjqv Abby‡gvw`Z nB‡j Ki`vZvi D³ e¨q assessee during assessment of tax under this Act
cieZ©x Kiel©¸‡jv‡Z 10% (`k kZvsk) nv‡i A¨vgU©vB‡Rkb is disallowed as capital in nature, the said
fvZv wnmv‡e Aby‡gvw`Z nB‡e| expenditure of the assessee shall be allowed as
amortization allowance at the rate of 10% (ten
percent) in subsequent tax years.

7| e¨vL¨v|-(1) GB As‡ki D‡Ïk¨c~iYK‡í, - 7. Explanation.-(1) For the purposes of this

Part,-
(K) ÒcÖvK-cÖviw¤¢KÓ e¨q A_© evwYwR¨K Kvh©µg ïiæi (a) “pre-start-up” expenditure shall mean
erm‡ii c~e©eZ©x ermimg~‡n m¤ú~Y© I GKvšÍfv‡e e¨emv‡qi all such expenditure incurred wholly and
Rb¨ wbe©vnK„Z wKš‘ Z„Zxq Zdwm‡ji Ab¨vb¨ weavbvewji exclusively for the purpose of business during the
AvIZvq Aby‡gvw`Z b‡n GBiƒc mKj e¨q‡K eySvB‡e Ges years preceding the year of commencement of
e¨emv‡qi m¤¢ve¨Zv hvPvB, g‡Wj ev cÖ‡UvUvBc wbg©vY I commercial operations but not permitted under
cix¶vg~jK Drcv`‡bi e¨qmg~n Bnvi AšÍf©y³ nB‡e, Z‡e other provisions of the Third Schedule and shall
†Kv‡bvfv‡eB cÖK„Z e¨q A‡c¶v AwaK nB‡e bv Ges c~‡e© include expenditure on business feasibility study,
†Kv‡bvfv‡e Aby‡gvw`Z nB‡j cybtAby‡gvw`Z nB‡e bv; construction of models or prototypes and trial
production; but shall in no case exceed the actual
expenditure and shall not be re-authorized if
previously authorized;
(L) ÒM‡elYv I Dbœqb e¨qÓ A_© aviv 2 Gi `dv 33 (b) “research and development cost”
G msÁvwqZ M‡elYv I Dbœqb e¨q; Ges means research and development expenditure as
defined in clause 33 of section 2; and
(M) ÒjvB‡mÝ wdÓ A_© †Kv‡bv †mjyjvi †gvevBj †dvb (c) “license fee” means spectrum
Acv‡iUi KZ©…K cwi‡kvwaZ †¯ú±ªvg GmvBb‡g›U wd A_ev assignment fee paid by a cellular mobile phone
we‡klvwqZ †mev mieiv‡n wb‡qvwRZ †Kv‡bv †Kv¤úvwbi operator or any other license fee paid as an integral
Kg©Kv‡Ði Awe‡”Q`¨ Ask wnmv‡e cwi‡kvwaZ Ab¨ †h‡Kv‡bv part of the activities of a company engaged in
jvB‡mÝ wd| providing specialized services.