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Interest on securities

22. The following income of an assessee shall be classified and computed under the head Interest on

securities, namely:-

(a) interest receivable by the assessee on any security of the Government or any security approved by

Government] ; and

(b) interest receivable by him on debentures or other securities of money issued by or on behalf of a

local authority or a company.

Deductions from interest on securities

23. (1) In computing the income under the head Interest on securities, the following allowances and

deduction shall be made, namely:-

(a) any sum deducted from interest by way of commission or charges by a bank realising the interest

on behalf of the assessee;

(b) any interest payable on money borrowed for the purpose of investment in the securities by the

assessee:

Provided that no allowance or deduction on account of any interest or commission paid under clause

(a) or (b), as the case may be, in respect of, or allocable to the securities of Government which have

been issued with the condition that interest thereon shall not be liable to tax, shall be made in

computing the income under section 22.

(2) Notwithstanding anything contained in sub-section (1), no deduction shall be allowed under this

section in respect of any interest payable outside Bangladesh on which tax has not been paid or

deducted in accordance with the provisions of Chapter VII.