48. (1) Notwithstanding that regular assessment in respect of any income is to be made later in any assessment year, and without prejudice to the charge and recovery of tax under this Ordinance after such assessment, the tax on income shall be payable by deduction or collection at source, or by way of advance payment, in accordance with the provisions of this Chapter. (2) Any sum deducted or collected, or paid by way of advance payment, in accordance with the provisions of this Chapter, shall, for the purpose of computing the income of an assessee, be deemed to be the income received, and be treated as payment of tax in due time, by the assessee.

49. (1) Tax payable under this Ordinance shall be deducted or collected at source in respect of the following income, namely:-

(a) income classifiable under the head “Salaries”;

¹[(aa) income from discount on the real value of Bangladesh Bank bills;]

(b) income classifiable under the head “Interest on securities”;

²[* * *]

(c) income derived on account of supply of goods, execution of contracts or services rendered;

³[(d) income derived by the importers on account of import of goods;]

(e) income derived on account of indenting commission;

(f) income derived on account of winnings from lottery or crossword puzzles, as referred to in section 19(13); ⁴[* * *]

(g) any income chargeable under this Ordinance which is paid or payable to a non-resident ⁵[;

(h) Income classifiable under the head “Income from house property”;

(i) income derived on account of export of manpower;

⁶[(ii) income derived on account of travel agency commission or incentive bonus;]

(j) income derived on account of purchase by public auction;

(k) income derived on account of acting in films;

⁷[* * *] ⁸[* * *]

(m) income derived on account of shipping agency commission ⁹[; ¹⁰[* * *]

¹¹[(n) income derived from commission, discount or fees payable to distributors for distribution or marketing of manufactured goods] ¹²[;

(o) income derived on account of interest on saving deposits, fixed deposits or term deposits and share of profit on term deposits;

¹³[(oo). income dierived on account of payment from workers’ participation fund.]

(p) income derived on account of insurance commission;

(q) income classifiable under the head “Capital gains”;]

¹⁴[(r) income derived on account of fees for professional or technical services;

(s) income derived on account of manufacture of cigarettes manually without any mechanical aid whatsoever;

(t) income derived from compensation against acquisition of property;

¹⁵[* * *]

¹⁶[* * *]

(w) income derived on account of running of brick field;

(x) income derived on account of services rendered by the doctors;

¹⁷[* * *]

(z) income derived on account of commission of letter of credit;]

¹⁸[(za) income derived on account of survey by a surveyor of general insurance company;

¹⁹[* * *]

(zc) income derived on account of commission, remuneration or charges as a foreign buyer's agent ²⁰[;

(zd) income from dividends ²¹[;

(ze) income derived on account of rendering certain services ²²[;

²³[(zf) income derived on account of shipping business carried on both inside and outside Bangladesh by a resident assessee.]

(zg) income derived on account of business of real estate and land developer;

(zh) income derived by an exporter on account of export of ²⁴[any commodity];

(zi) income derived by a member of a stock exchange on account of transaction of shares, debentures, mutual funds, bonds or securities ²⁵[;

(zj) income derived on account of courier business of a non-resident;

²⁶[***]

²⁷[(zkk) income derived on account of export cash subsidy;]

²⁸[***]

²⁹[(zm) on account of ³⁰[***] renewal of trade licence;

³¹[***]

(zo) income derived on account of freight forward agency commission ³²[;

(zp) income derived on account of rental power;

(zq) income derived on account of interest of Post Office Savings Bank Account;

(zr) income derived on account of rental value of vacant land or plant or machinery;

(zs) income derived on account of advertisement ³³[;

(zt) income derived by foreign technician serving in a diamond cutting industry³⁴[;

³⁵[***]

(zv) income derived from transfer of securities or mutual fund units by sponsor shareholders of a company etc ³⁶[;

(zw) deduction of tax for services from convention hall, conference centre, room or, as the case may be, hall etc.;

(zx) deduction of tax from residents for any income in connection

with any service provided to any foreign person ³⁷[;

(zy) income derived on account of international gateway service in respect of phone call³⁸[;

(zz) collection of tax from manufacturer of soft drink ³⁹[;

(zza) income derived from insurance policy;

(zzb) deduction of tax from local letter of credit (L/C);

(zzc) income derived from any fees, revenue sharing, etc. from cellular mobile phone operator;

(zzd) income from transfer of share of any stock exchange;

(zze) income from transfer of share of company listed in any stock exchange;

(zzf) income derived from lease of property ⁴⁰[;

(zzff) deduction of tax from any sum paid by real estate developer to land owner ⁴¹[;

(zzg) income derived from the operation of inland ships;

(zzh) income derived from the operation of commercial vehicles.]

(2) Tax to be deducted at source under sub-section (1) in respect of any income shall be deducted in accordance with the provisions of this Chapter by the person responsible for making payment which constitutes the income of the payee.

(3) For the purpose of this Chapter, “person responsible for making payment”, with its grammatical variations and cognate expressions, means-

(a) in the case of payments constituting income classifiable under head “Salaries”, ⁴²[***] the employer himself or, if the employer is a local authority, company or institution, such authority, company or institution, including the principal officer thereof;

(b) in the case of payments constituting income classifiable under the head “Interest on securities”, not being payment made by or on behalf of the Government, the authority, company or other institution issuing the security or the principal officer thereof; and

(c) in the case of payment of any other sum which constitutes an income of the payee chargeable to tax under this Ordinance, the payer himself, or if the payer is a company or other institution, such company or institution including the principal officer thereof.

50. (1) The person responsible for making any payment which constitutes income of the payee classifiable under the head “Salaries” shall, at the time of making such payment, deduct tax on the amount so payable at a rate representing the average of the rates applicable to the estimated total income of the payee under that head.⁴³[(1A) Notwithstanding the provision of sub section (1), where any Government official is acting as Drawing and Disbursing Officer (DDO) or making or signing a bill for himself or for any other official subordinate to him to draw salary from the Government or any authority, as the case may be, he shall, at the time of making or signing such bill, deduct tax at a rate representing the average of the rates applicable to the estimated total income of such officials if such annual salary chargeable to tax exceeds the taxable limit for that income year.; এবং(1B) For the purposes of sub-section (1A), respective Government Accounts Office shall issue a tax deduction certificate in prescribed form within the thirty first day of July following the financial year. ] (2) At the time of making any deduction under ⁴⁴[sub-sections (1) and (1A) ], the amount to be deducted may be increased or decreased for the purpose of adjusting any excess or deficiency arising out of any previous deductions or failure to make deductions.⁴⁵[(2A) The payment under ⁴⁶[sub-section (1) and (1A)] shall be made by such person with or without deduction of tax in accordance with a certificate, issued by the Deputy Commissioner of Taxes after being satisfied on an application made by the payee in this behalf, where such certificate specifies that-(a) no tax shall be deducted from the payee in a case where the tax payable on the total income of the payee has already been deducted or collected from such payee under this Ordinance for the rest of the income year; or(b) tax shall be deducted at a lesser rate for the rest of the income year in a case where the payee may, after adjusting the tax already deducted or collected from such payee under this Ordinance, be liable to pay a lesser sum of tax than the tax chargeable on his total income.] (3) For the purposes of deduction under ⁴⁷[sub-section (1) and (1A)] in respect of salary payable in a foreign currency, the value in taka of such salary shall be calculated at such rate as the Board may prescribe.

⁴⁸[50A. Any person responsible for paying any amount on account of discount on the real value of Bangladesh Bank bills shall, at the time of making such payment, deduct tax at the maximum rate on the amount so payable or the rate applicable to such amount, whichever is greater ⁴⁹[: Provided that no tax shall be deducted under this section where the said bill is purchased by an approved superannuation fund or pension fund or gratuity fund or a recognised provident fund, or a workers' profit participation fund.]]

⁵⁰[50B. Any person responsible for making any payment as remuneration to a Member of Parliament shall, at the time of making such payment, deduct tax on the amount so payable at a rate representing the average of the rates applicable to the estimated total remuneration of the payee for that income year.]

⁵¹[51.  Any person responsible for issuing a security of the Government, or security approved by the Government or Bangladesh Securities and Exchange Commission, income of which is classifiable under the head “interest on securities”, shall collect income-tax at the rate of five percent (5%) on discount, interest or profit on securities at the time of making payment or credit, whichever is earlier.]

51A. [Deduction at source from interest on fixed deposits- Omitted by section 2 of the Income tax (Amendment) Ordinance, 1985 (Ordinance No. XXXVI of 1985).]

⁵²[52. (1) Where any payment is to be made by a specified person to a resident on account of-

(a) execution of a contract, other than a contract for providing or

rendering a service mentioned in any other section of Chapter VII;

(b) supply of goods;

(c) manufacture, process or conversion;

(d) printing, packaging or binding;

the person responsible for making the payment shall, at the time of making such payment, deduct tax at such rate, not exceeding ten percent (10%) of the base amount, as may be prescribed:

⁵³[Provided that–

⁵⁴[(a) the rate of tax shall be fifty percent (50%) higher if the payee fails to submit proof of submission of return at the time of making the payment;]

⁵⁵[***]

 

⁵⁶[(bb) the rate of tax shall be fifty percent (50%) higher if the payee does not receive payment by bank transfer;]

(c) where any imported goods on which tax has been paid at source under section 53 is supplied, tax at source on the said supply shall be B-A, where-

A= the amount of tax paid under section 53,

B= the amount of tax applicable under this section if no tax were paid under section 53.]

 

⁵⁷[(d) where any goods on which tax has been paid at source under section 53E is supplied, tax at source on the said supply shall be B-A, where-

A = the amount of tax paid under section 53E,

          B = the amount of tax applicable under this section if no tax were paid under section 53E⁵⁸[:

 

⁵⁹[Provided that in case of the goods supplied by any distributor or any other person under a contract as referred in sub-section (3) of section 53E, the term “B” as mentioned in paragraph (d) shall be computed as follows:

 

 B={the selling price of the company to the distributor or the other person as referred in section 53E (3)} x 7% x 5%.]

 

(2) In this section-

(a) the specified person means-

(i) the Government, or any authority, corporation or body of the Government, including its units, the activities of which are authorised by any Act, Ordinance, Order or instrument having the force of law in Bangladesh;

(ii) a project, programme or activity where the Government has any financial or operational involvement;

(iii) a joint venture or a consortium;

(iv) a company as defined in clause (20) of section 2 of this Ordinance;

(v) a co-operative bank;

(vi) a co-operative society;

(vii) a financial institution;

(viii) a Non-Government Organisation registered with the NGO Affairs Bureau ⁶⁰[or a Micro Credit Organisation having licence with Micro Credit Regulatory Authority];

(ix) a school, a college, an institute or a university;

(x) a hospital, a clinic or a diagnostic centre;

(xi) a trust or a fund;

(xii) a firm;

 

⁶¹[(xiia) an association of persons;]

(xiii) a public-private partnership;

(xiv) a foreign contractor, a foreign enterprise or an association or a body established outside Bangladesh; ⁶²[***]

⁶³[(xv) any e-commerce platform, not being any other specified persons, called by whatever name having annual turnover exceeding Taka one crore; ⁶⁴[***]

⁶⁵[(xvi) hotel, resort, community center and transport agency having annual turnover exceeding Taka one crore;]

 

⁶⁶[(xvii) an artificial juridical person;]

(b) “contract” includes a sub-contract, any subsequent contract, an agreement or an arrangement, whether written or not;

(c) “base amount” means the higher of the -

(i) contract value; or

(ii) bill or invoice amount; or

(iii) payment;

(d) “payment” includes a transfer, a credit or an adjustment of payment ⁶⁷[or an order or instruction of making payment].]

52A. (1) Where any payment is to be made by a specified person to a resident on account of royalties, franchise, or the fee for using license, brand name, patent, invention, formula, process, method, design, pattern, knowhow, copyright, trademark, trade name, literary or musical or artistic composition, survey, study, forecast, estimate, customer list or any other intangibles, the person responsible for making the payment shall, at the time of making payment, deduct income tax at the rate specified below-

Description of payment	Rate of deduction of tax
(a) Where base amount does not exceed taka 25 lakh	10%
(b) Where base amount exceeds taka 25 lakh	12%:

Provided that the rate of tax shall be fifty percent (50%) higher if the payee does not have a twelve-digit Taxpayer’s Identification Number at the time of making the payment.

(2) In this section-

(a) “specified person” shall have the same meaning as in clause (a) of sub section (2) of section 52;

(b) “contract” includes a sub-contract, any subsequent contract, an agreement or an arrangement, whether written or not;

(c) “base amount” means the higher of the -

(i) contract value; or

(ii) bill or invoice amount; or

(iii) payment;

(d) “payment” includes a transfer, a credit or an adjustment of payment ⁶⁸[or an order or instruction of making payment].

52AA. ⁶⁹[(1) Where any payment is to be made by a specified person to a resident on account of a service as mentioned in this section, the person responsible for making the payment shall, at the time of making such payment, deduct income tax at the rate specified in the Table below:-

 

Table

 

Provided that-

 

(a)     if the amount for services mentioned in SL No. 3 and 4 of the Table shows both commission or fee and gross bill amount tax shall be the higher amount between (i) and (ii) where-

 

1. tax calculated on commission or fee applying the relevant rate in the table; and

 

(ii)   B x C x D, where-

 

B = Gross bill amount.

 

C = 10% of Sl. 3 and 2.5% for Sl. 4, and

 

D = rate of tax applicable on commission or fee;

 

(b)    the rate of tax shall be fifty percent (50%) higher if the payee fails to submit proof of submission of return at the time of making the payment;

 

(c)    the rate of tax shall be fifty percent (50%) higher if the payee does not receive payment by bank transfer;

 

(d)        where the Board, on an application made in this behalf, gives certificate in writing that the person rendering such service is otherwise exempted from tax under any provision of this Ordinance, the payment referred to in this section shall be made without any deduction or with deduction at a lesser rate for that income year.] 

 

 

(2) In this section-

 

(a) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52;

 

(b) “contract” includes a sub-contract, any subsequent contract, an agreement or an arrangement, whether written or not;

 

(c) “base amount” means the higher of the-

 

(i) contract value; or

(ii) bill or invoice amount ; or

(iii) payment;

 

(d) “payment” includes a transfer, a credit or an adjustment of payment ⁷⁰[or an order or instruction of making payment];

 

(e) “professional services” means-

 

(i) services rendered by a doctor;

(ii) services rendered by a person carrying on any profession or any other services applying professional

knowledge.]

 

 

⁷¹[52AAA. The Commissioner of Customs shall make collection on account of commission receivable by clearing and forwarding agents licensed under Customs Act, 1969 at the rate of ⁷²[ten percent] on such commission at the time of clearance of goods imported or exported.]

52B. ⁷³[Any person responsible for selling banderols to any manufacturer of cigarettes shall, at the time of selling banderols, collect tax from such manufacturers on account of the manufacture of cigarette at the rate of ten percent (10%) of the value of the banderols.Explanation.- For the purposes of this section, “manufacture of cigarettes” means manufacture of cigarettes manually without any mechanical aid whatsoever.]

⁷⁴[52C.- Any person, responsible for paying any amount of compensation against acquisition by the Government of any immovable property shall, at the time of paying such compensation deduct advance tax at the rate of,-

(a) ⁷⁵[six] per cent of the amount of such compensation where the immovable property is situated in any city corporation, paurashava or cantonment board;

(b) ⁷⁶[three] per cent of the amount of such compensation where the immovable property is situated outside any city corporation, paurashava or cantonment board.]

⁷⁷[⁷⁸[52D. Notwithstanding anything contained in any other provision of this Ordinance or any other law being in force in respect of exemption from tax on interest of savings instrument purchased by an approved superannuation fund or pension fund or gratuity fund or a recognized provident fund or a workers’ profit participation fund, any person responsible for making any payment by way of interest on any savings instruments shall, at the time of such payment, deduct income tax at the rate of ⁷⁹[ten per cent (10%)] on such interest:

Provided that no tax shall be deducted under this section where the cumulative investment at the end of the income year in the pensioners' savings certificate does not exceed five lakh taka:

Provided further that no tax shall be deducted from interest or profit arising from Wage earners development bond, US dollar premium bond, US dollar investment bond, Euro premium bond, Euro investment bond, Pound sterling investment bond or Pound sterling premium bond.

⁸⁰[52DD. (1)Notwithstanding anything contained in any other provision of this Ordinance or any other law being in force in respect of exemption from tax on payments from workers’ participation fund, any person responsible for making any payment from such fund to a beneficiary shall, at the time of payment, deduct tax at the rate of 5% (five percent) on whole payment.

(2) No tax under sub-section (1) shall be deducted from the payment of worker’s participation fund where the following conditions are met-

(i )the beneficiary does not have taxable income; and

(ii) amount of fund does not exceed Taka 25,000.

52E. ⁸¹[ Collection of tax on account of bonus- Omitted by section 53 of অর্থ আইন, ২০০১ (২০০১ সনের ৩০ নং আইন).]

⁸²[52F.  Any person responsible for issuing or renewal of permission for the manufacture of  bricks shall not issue or renew such permission unless the application for issuance or renewal of such permission is accompanied by a tax clearance certificate of the preceding assessment year along with the receipt of the tax verified by the Deputy Commissioner of Taxes at the following rates:

(a) taka forty five thousand for one section brick field;

(b) taka seventy thousand for one and half section brick field; 

(c) taka ninety thousand for two section brick field; 

(d) taka one lakh and fifty thousand for brick field producing bricks through automatic machine.

 

Explanation.¾For the purpose of this section, the word "section" shall have the same meaning as defined in মৌসুমী ইটভাটা মূল্য সংযোজন কর বিধিমালা, ২০০৪.]

52G. [Deduction from fees for services rendered by doctors.- Omitted by section 25 of অর্থ আইন, ২০০৪ (২০০৪ সনের ১৬ নং আইন)

52H. [Collection of tax from persons engaged in the real estate business.- Omitted by section 64 of অর্থ আইন, ২০০০ (২০০০ সনের ১৫ নং আইন)

52I. Any person responsible for opening letter of credit for the purpose of import of goods for himself or for any other person shall, at the time of collecting commission with respect to letter of credit, deduct income tax at the rate of five per cent on the amount of such commission.]

52J. Collection of tax from travel agent- [Omitted by section 54 of অর্থ আইন, ২০০১ (২০০১ সনের ৩০ নং আইন).]

⁸³[52JJ. Collection of tax from travel agent.- (1) Notwithstanding anything contained in any other provisionsof this Ordinance, any person responsible for making any payment to a resident any sum by way of commission or discount or any other benefits, called by whatever name, convertible into money for selling passenger tickets or air cargo carriage shall deduct or collect advance tax at the rate of zero point three zero percent (0.30%) of the total value of the tickets or any charge for carrying cargo by air at the time of payment to such resident.(2) Where any incentive bonus, performance bonus or any other benefits, called by whatever name, is to be paid in relation to such sale of tickets or bill for carrying cargo by air in addition to the amount mentioned in sub-section (1), person responsible for making such payment shall deduct an amount equal to (A/B) x C, where-“A” is the amount of incentive bonus, performance bonus or any other benefits as mentioned in subsection (2),“B” is the amount of commission or discount or any other benefits as mentioned in sub-section (1), and“C” is the amount of source tax on commission or discount or any other benefits as mentioned in subsection (1).(3) For the purpose of computation of value of tickets or charge, any payment made in respect of any embarkation fees, travel tax, flight safety insurance, security tax and airport tax shall not be included in such value or charge.Explanation.-In this section, “payment” includes a transfer, a credit or an adjustment of payment.]

⁸⁴[52K. Any person responsible for renewal of trade licence shall collect tax at the time of such renewal of each trade license at the rate of –

(a) taka ⁸⁵[three thousand] in ⁸⁶[Dhaka South City Corporation, Dhaka North City Corporation] or Chittagong City Corporation;

(b) taka ⁸⁷[two thousand] ⁸⁸[in any other city corporation];

(c) taka ⁸⁹[one thousand] in any paurashava at any district headquarter;

(d) taka ⁹⁰[five hundred] in any other paurashava.]

⁹¹[* * *]

⁹²[52M. Any person responsible for making any payment by way of freight forward agency commission, at the time of making such payment ⁹³[or credit of such payment to the account of the payee], shall deduct tax at the rate of ⁹⁴[fifteen percent] of the said amount.]

⁹⁵[52N.  (1)Notwithstanding anything contained in this Ordinance, Bangladesh Power Development Board or any other person engaged in power distribution, at the time of payment to any person on account of purchase of power, shall collect, deduct or pay tax on the said payment at the rate of six percent.

(2) Where a person is exempted from tax or is subject to a reduced tax rate in an income year, the Board may, on an application made in this behalf, give a certificate in writing that the payment for that income year shall be made without any deduction or with deduction at a proportionately reduced rate, as the case may be.]

⁹⁶[52O. The person responsible for making any payment-which constitutes income chargeable under the head “Salaries” received by or due to any person who is neither a citizen of Bangladesh nor was resident in Bangladesh in any of the four years immediately preceding the year in which he arrived in Bangladesh, as remuneration for services rendered by him for a period not exceeding three years from the date of his arrival in Bangladesh, during such period, as a technician employed in diamond cutting industries under a contract of service, shall deduct tax at the rate of five percent of such salaries at the time of making payment or giving credit which ever is earlier:Provided that the provisions of this clause shall not be applicable to foreign technicians appointed after June 30 2010.]

⁹⁷[52P.  (1) Where any payment is to be made by a specified person to any other person on account of renting or using space of convention hall, conference centre, room or, as the case may be, hall, hotel, community centre or any restaurant, shall deduct tax at the rate of five per cent from the whole amount of the payment for the services thereof at the time of making such payment to the payee:

Provided that no deduction shall be made when such amount is paid directly to the Government.

           (2) In this section¾

(a) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52;

                      (b) “payment” shall have the same meaning as in clause (d) of sub-section (2) of section 52.]

52Q. ⁹⁸[Any person, responsible for paying or crediting to the account of a person any sum remitted from abroad by way of a fee, service charges, commission or remuneration, called by whatever name, or by way of revenue sharing of any name and nature, for—

 

(a) providing any service rendered in  Bangladesh; or

(b) rendering any service or performing any task by a resident person in favour of a foreign person; or

(c) allowing the use of any online platform for advertisement or any other purposes,

shall deduct tax at the rate of ten percent at the time of making payment of the sum or crediting the sum to the account of the payee:

⁹⁹[Provided that the rate of deduction under this section shall be 7.5% (seven point five percent) where the remittance has been received as consideration for contracts on manufacturing, process or conversion, civil work, construction, engineering or works of similar nature:

Provided further that no deduction under this section shall be made against the remittance from abroad which is-

(i) the proceeds of sales of software or services of a resident if the income from such sales or services is exempted from tax under paragraph 33 of Part A of the Sixth Schedule, or

(ii) excluded from total income by paragraph 48 ¹⁰⁰[and 61] of Part A of the Sixth Schedule.]

¹⁰¹[52R. (1)The bank, through which any sum on account of International Gateway (IGW) Services in respect of international phone call is received, shall deduct tax at the rate of ¹⁰²[one point five percent (1.5%)] of the total amount representing the said receipt at the time of crediting it to the account of the International Gateway (IGW) Services operator.

(2) The International Gateway (IGW) Services operator, by which any sum related to international phone call is paid or credited to the account of Interconnection Exchange (ICX), Access Network Services (ANS) ¹⁰³[,Bangladesh Telecommunication Regulatory Commission (BTRC)] or any other person under an agreement with the Bangladesh Telecommunication Regulatory Commission (BTRC), shall deduct tax at the rate of ¹⁰⁴[seven point five percent (7.5%)] on the whole amount so paid or credited at the time of such payment or credit under the said agreement.

¹⁰⁵[(2A) Where any amount is paid or credited in respect of outgoing international calls, the provider of Interconnection Exchange (ICX) services or Access Network Services (ANS) shall deduct tax at the rate of seven point five percent (7.5%) on the whole amount so paid or credited at the time of such payment or credit]

(3) Notwithstanding anything contained in ¹⁰⁶[sub-sections (1), (2) or (2A)], where the Board gives a certificate in writing on an application made by a person that income of the person is exempted from tax or will be liable to tax at a rate of tax less than the rate specified in this section, the person responsible for such payment shall make the payment-

(a) without deduction of tax; or

(b) after deducting tax at a rate specified in the certificate.]

¹⁰⁸[***]

¹⁰⁹[52T. Any person responsible for paying to a resident, any sum in excess of premium paid for any life insurance policy maintained with any life insurance company, shall deduct, at the time of payment of such excess amount to the policy holder, income tax at the rate of five per cent on such sum:Provided that no deduction of tax shall be made in case of death of such policy holder.

¹¹⁰[52U. (1) The bank or any other financial institution extending any credit facility under a local letter of credit or any other financing agreement, not being a financing arrangement under sub-section (2), for purchasing any goods in Bangladesh by a person (hereinafter referred to as “Person A”) from any person (hereinafter referred to as “Person B”) for the purpose of trading, or of reselling after process or conversion shall deduct, at the time of paying or crediting to Person B, tax at the rate of three percent (3%) of the amount so paid or credited in relation to the purchase by Person A.

(2) The bank or any other financial institution extending any credit facility to a distributor under a financing arrangement in which a person (hereinafter referred to as “Person C”) receives payments from such bank or the financial institution against the invoice or sale of goods to its distributor (hereinafter referred to as “Person D”) shall deduct, at the time of paying or crediting payment to Person C, tax at the rate of one percent (1%) of the amount so paid or credited in relation to the goods invoiced to Person D.

(3) ¹¹¹[The tax shall be deducted at the rate of two percent (2%)] in the cases of local letter of credit or any other financing agreement opened or made for the purchase or procurement of rice, wheat, potato, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chillies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, date, cassia leaf, computer or computer accessories, jute, cotton, yarn and all kinds of fruits.

¹¹²[***]

 

Explanation.- For the purpose of this section, "distributor" means a person who performs the function of supply of finished goods produced by another person to the end customer directly or through any other intermediary.]

The Principal Officer of a cellular mobile phone operator company responsible for making any payment, on account of any revenue sharing or any license fees or any other fees or charges, called by whatever name, to the regulatory authority, shall deduct tax at the rate of ten percent of such payment at the time of credit to the payee or at the time of payment thereof, whichever is earlier.]

53. ¹¹³[The Commissioner of Customs or the officer authorized in this behalf shall collect advance income tax at such rate, not exceeding 20% (twenty percent) on the value of imported goods, as may be prescribed.]

¹¹⁴[¹¹⁵[53A.  (1) Where any specified person is a tenant in respect of a house property or hotel accommodation, the tenant shall deduct tax from the rent of such house property or hotel accommodation at the rate of five per cent at the time of payment of such rent.

Explanation.- For the purpose of this section, "rent" means any payment, by whatever name called, under any lease, tenancy or any other agreement or arrangement for the use of any house property or hotel accommodation including any furniture, fittings and the land appurtenant thereto.

(2) Where, after the assessment made for the relevant year, it is found that no tax was payable by the owner of the house property or the amount of tax deducted is in excess of the amount payable, the amount deducted shall be refunded,-

(a) if no tax was payable, in full; or

(b) if the amount deducted is in excess of the amount payable, to the extent of the excess deduction to the owner of the house property.

   (3) Where the Deputy Commissioner of Taxes, on an application made in this behalf, gives a    certificate in the prescribed form to an owner of house property that, to the best of his belief,     the owner is not likely to have any assessable income during the year or the income is otherwise     exempted from payment of income tax under any provision of this Ordinance, payment referred     to in sub-section (1) shall be made without any deduction until the certificate is cancelled.

    (4) In this section-

(a) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52;

                       (b) “payment” shall have the same meaning as in clause (d) of sub-section (2) of section 52.]]

53AA. Commissioner of Customs or any other authority, duly authorised in this behalf, shall not grant port clearance to a ship owned or chartered by a resident assessee unless ¹¹⁶[a certificate is received in prescribed manner from Deputy Commissioner of Taxes concerned and] tax at the rate of ¹¹⁷[five percent] of total freight received or receivable in or out of Bangladesh has been paid for carriage of passengers, livestock, mail or goods, shipped at any port of Bangladesh. ¹¹⁸[:Provided that tax shall be collected at the rate of three per cent of total freight received or receivable from services rendered between two or more foreign countries.]

53B. ¹¹⁹[The Director General, Bureau of Manpower, Employment and Training shall not-

(i) grant clearance for export of manpower by recruiting agencies unless challan of advance tax for Taka amounting to 10% (ten percent) of service charge or fees received by recruiting agents on account of export of manpower attached with the application made in this behalf; and

(ii) issue or renew license under section 9 of বৈদেশিক কর্মসংস্থান ও অভিবাসী আইন, ২০১৩ (২০১৩ সনের ৪৮ নং আইন) unless a challan of advance tax for Taka 50,000 is submitted along with the application made for license or renew of license.]

¹²⁰[53BB. Deduction of tax from export proceeds of goods.- (1)The Bank, through which export proceeds of goods of an exporter is received, shall deduct tax at the rate of 1% (one percent) of total export proceeds at the time of crediting the proceeds to the account of the exporter.

(2) Where the Board, on an application made in this behalf, gives a certificate in writing that the income of the exporter is partly or fully exempted from tax under any provision of the Ordinance, the Bank shall make credit to the account of an assesse without any deduction of tax or deduction of tax at a rate lesser than the rate specified in this section for the period mentioned in that certificate.]

53BBB. ¹²¹[The Chief Executive Officer of a stock exchange shall collect tax at the rate of “zero point zero five percent (0.05%)”on the value of shares and mutual funds transacted by a member of a stock exchange and at the rate of ten percent (10%) on the commission received or receivable by a member of a stock exchange for the transaction of securities other than shares and mutual funds at the time of making payment for such transactions.]

¹²²[***]

53C. Any person making sale, by ¹²³[public auction through sealed tender or otherwise], of any goods or property belonging to the Government or any authority, corporation or body, including its units, the activities or the principal activities of which are authorised by any Act, Ordinance, order or instrument having the force of law in Bangladesh or any company ¹²⁴[***] as defined in ¹²⁵[¹²⁶[***] কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮নং আইন)] or any banking company, or any insurance company or any co-operative bank established by or under any law for the time being in force shall collect, before delivering the possession of the goods or the property ¹²⁷[or allowing to exercise the rights], as advance tax on the income from the sale price of such goods or property from the auction purchaser ¹²⁸[at the rate of 10% (ten percent) of the sale price:].

 

¹²⁹[Provided that the rate of deduction shall be 1% (one percent) in case of sale of tea by public auction.]

Explanation.-For the purposes of this section, sale of any goods or property includes the awarding of any lease to any person, including a lease of the right to collect octroi duties, tolls, fees or other levies, by whatever name called, but does not include sale of a plot of land.

¹³⁰[***]

¹³¹[ 53CCC. Any person being a company registered under the Companies Act, 1913 (VII of 1913) or কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন) working as local agent of a non-resident courier company shall deduct or collect tax in advance at the rate of fifteen percent (15%) on the amount of service charge accrued from the shipment of goods, documents, parcels or any other things outside Bangladesh]

¹³²[53D. (1) A person responsible for making any part or full payment for purchasing a film, drama or television or radio programme shall deduct tax at the rate of ten percent of the amount paid or payable at the time of making payment or credit of such payment to the account of the payee.(2) A person responsible for making any part or full payment to another person for performing in a film, drama, advertisement or any television or radio programme shall deduct tax at the rate of ten percent of the amount paid or payable at the time of making payment or credit of such payment to the account of the payee¹³³[: Provided that no tax shall be deducted under this section if the total payment does not exceed ten thousand taka.]]

¹³⁴[* * *]

¹³⁵[53DDD. Any person responsible for paying any amount on account of export cash subsidy to an exporter for promotion of export shall, at the time of payment or credit of such amount, deduct or collect tax in advance at the rate of ¹³⁶[¹³⁷[ten] per cent] on the amount so payable.]

¹³⁸[53E. (1) Any company making a payment or allowing an amount to a distributor, called by whatever name, or to any other person by way of commission, discount, fees, incentive or performance bonus or any other performance related incentive or any other payment or benefit of the similar nature for distribution or marketing of goods, shall deduct or collect tax at the time of payment or allowing the amount at the rate of ten percent (10%) of the amount of payment or the amount allowed or the value of benefits allowed, as the case may be.

(2) Any company making a payment in relation to the promotion of the company or its goods to any person engaged in the distribution or marketing of the goods of the company shall, at the time of payment, deduct tax at the rate of one point five percent (1.5%) of the payment.

(3) Any company, other than an oil marketing company, which sells goods to-

(a) any distributor, or

(b) any other person under a contract,

at a price lower than the retail price fixed by such company, shall collect tax from such distributor or such any other person at the rate of five percent (5%) on the amount equal to B x C, where-

B = the selling price of the company to the distributor or the other person;

C = 5%:

Provided that a cigarette manufacturer company shall collect tax at the time of sale of its goods to such distributor or to such other person at the rate of three percent (3%) of the difference between the sale price to the distributor or the other person and the retail price fixed by such company.

(4) In this section-

(a) “payment” includes a transfer, credit or an adjustment of payment ¹³⁹[or an order or instruction of making payment];

(b) “contract” includes an agreement or arrangement, whether written or not¹⁴⁰[;

 

(c) “company” includes a firm.]

¹⁴¹[53EE. Where, in accordance with the terms of the letter of credit or under any other instruction, a bank, through which an exporter receives payment for export of goods, pays any amount out of the export proceeds to the credit of any person being an agent or a representative of the foreign buyer, as commission, charges or remuneration by whatever name it may be called, the bank shall deduct or collect tax in advance at the rate of ¹⁴²[ten per cent (10%)] on the commission, charges or remuneration so paid at the time of such payment.

¹⁴³[53F.  (1)Notwithstanding anything contained in this Ordinance or any other law for the time being in force in respect of exemption of tax, any person responsible for paying to a resident any sum by way of interest or share of profit on any saving deposits or fixed deposits or any term deposit maintained with any bank including a co-operative bank or any bank run on Islamic principles or non-banking financial institution or any leasing company or housing finance company, as the case may be, shall deduct, at the time of credit of such interest or share of profit to the account of the payee or at the time of payment thereof, whichever is earlier, income tax on such sum at the rate provided in the following table-

Table

Sl. No.	Types of the payee	Rate
1.	Where the payee is a company	20%
2.	Where the payee is a person other than a company	10%
3.	Where the payee is a public university, or an educational institution whose teachers are enlisted for Monthly Pay Order (MPO), following the curriculum approved by the Government and whose governing body is also formed as per Government rules or regulations, or any professional institute established under any law and run by professional body of Chartered Accountants, Cost and Management Accountants or Chartered Secretaries	10%
4.	Where the payee is recognized provident fund, approved gratuity fund, approved superannuation fund or pension fund	5%

 

(2) Where the payee being a person required to submit return under section 75 fails to furnish proof of submission of return, the rate of deduction shall be 50% higher.

(3) For the purpose of sub-section (2), the proof of submission of return of parent shall be considered as the proof of submission of return of a minor.

(4)  Nothing contained in this section shall apply-

(a)  to interest or share of profit arising out of any deposit pension scheme sponsored by the Government or by a Bank with prior approval of the Government; or

(b)  to such payee or class of payees as the Board may, by a general or special order, specify that income of such payee or class of payee is otherwise exempted from tax.]

¹⁴⁴[53FF. Any person responsible for registering any document for transfer of any land or building or apartment, under the provision of Registration Act 1908 (XVI of 1908), shall not register the document unless tax is paid at the following rate by the transferrer who is engaged in real estate or land development business,- ¹⁴⁵[(a) in case of building or apartment¹⁴⁶[,constructed for residential purposes,] situated-¹⁴⁷[(i) at Gulshan Model Town, Banani, Baridhara, Motijeel Commercial Area and Dilkusha Commercial Area of Dhaka, taka ¹⁴⁸[one thousand and six hundred] per square metre;(ii) at Dhanmondi Residential Area, Defense Officers Housing Society (DOHS), Mahakhali, Lalmatia Housing Society, Uttara Model Town, Bashundhara Residential Area, Dhaka Cantonment Area, Karwan Bazar Commercial Area of Dhaka and Panchlaish Residential Area, Khulshi Resindential Area, Agrabad and Nasirabad of Chittagong, taka ¹⁴⁹[one thousand and five hundred] per square metre; ¹⁵⁰[(iii) in areas other than the areas mentioned in sub-clauses (i) and (ii)-A. if the area is within Dhaka South City Corporation, Dhaka North City Corporation and Chittagong City Corporation, taka one thousand per square metre;B. if the area is within any other city corporation, taka seven hundred per square metre;C. any other area, taka three hundred per square metre:Provided that the rate of source tax under clause (a) in respect of a residential apartment shall be twenty percent (20%) lower if the size of the apartment, including common space, is not more than seventy square metre, and forty percent (40%) lower if the size of the apartment, including common space, is not more than sixty square metre.] ¹⁵¹[(aa) in case of building or apartment or any space thereof, constructed not for the residential purposes, situated- (i) in areas mentioned under sub-clause (i) of clause (a), taka ¹⁵²[six thousand and five hundred] per square metre;(ii) in areas mentioned under sub-clause (ii) of clause (a), taka ¹⁵³[five thousand] per square metre;¹⁵⁴[(iii) in areas other than the areas mentioned in sub-clauses (i) and (ii)-A. if the area is within Dhaka South City Corporation, Dhaka North City Corporation and Chittagong City Corporation, taka three thousand and five hundred per square metre;B. if the area is within any other city corporation, taka two thousand and five hundred per square metre;C. any other area, taka one thousand and two hundred per square metre.] ¹⁵⁵[(b) in case of land to which the document relates and on which stamp duty is chargeable under the Stamp Act, 1899 (Act No. II of 1899) at the rate of-(i) five percent for Dhaka, Gazipur, Narayanganj, Munshiganj,Manikganj, Narsingdi and Chittagong districts; (ii) three percent for any other district.]

53G. Any person responsible for paying to a resident any sum by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income tax on such sum at the rate of ¹⁵⁶[five percent] ¹⁵⁷[. ***]

53GG. A person responsible for paying to a resident any sum by way of remuneration or fees for conducting any survey regarding settlement of claim of an insurance shall, at the time of payment, deduct income-tax on such sum at the rate ¹⁵⁸[¹⁵⁹[ten] per cent]

¹⁶⁰[***]

¹⁶¹[53H. (1) Any registering officer responsible for registering any document of a person under the provisions of clause (b), (c) or (e) of sub-section (1) of section 17 of the Registration Act, 1908 (XVI of 1908) shall not register any document unless tax is paid at such rate as may be prescribed in relation to the property to which the document relates and on which stamp-duty is chargeable under Stamp Act, 1899 (II of 1899) by the person whose right, title or interest is sought to be transferred, assigned, limited or extinguished thereby, at the time of registration of such document:

Provided that the rate of tax shall not exceed taka ten lakh and eighty thousand per katha (1.65 decimal) for land, taka six hundred per square meter for any structure, building, flat, apartment or floor space on the land, if any, or four per cent of the deed value, whichever is higher.

(2) Nothing in this section shall apply to a document relating to:

(a) sale by a bank or any financial institution as a mortgagee empowered to sell;

(b) mortgage of any property to any bank or any financial institution of against any loan¹⁶²[;

 

(c) transfer of property to a trust or special purpose vehicle established only for the purpose of issuing sukuk approved by government or Securities Exchange Commission and vice versa.]

¹⁶³[***]

¹⁶⁴[53HH.  Any registering officer responsible for registering, under the Registration Act, 1908 (XVI of 1908), any document in relation to any lease of immovable property for not less than ten years shall not register such document unless tax is paid at a rate of four per cent by the lessor on the lease amount of such property.]

¹⁶⁵[53I.Any person responsible for paying any amount on account of interest of Post Office Savings Bank Account shall deduct, at the time of credit to the account of the payee or at the time of payment thereof, whichever is earlier, tax on such amount at the rate of ten percent: ¹⁶⁶[ * * * ] Provided ¹⁶⁷[***] that nothing contained in this section shall apply to such payee or class of payees as the Board may, by a general or special order, specify in this behalf.]

¹⁶⁹[53J.  (1) Where any payment is to be made by a specified person to a resident on account of renting ¹⁷⁰[water body not being government property] or using any vacant land or plant or machinery, shall deduct tax at the rate of five per cent from the whole amount of the payment at the time of making such payment to the payee.

 (2) In this section-

(a) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52;

                       (b)  “payment” shall have the same meaning as in clause (d) of sub-section (2) of section 52.]

¹⁷³[53K.The Government or any authority, corporation or body, including its units, the activities or the principal activities of which are authorised by any Act, Ordinance, Order or any other Instrument having the force of law in Bangladesh or any company as defined in clause (20) of section (2) or any banking company or any insurance company or any co-operative bank established by or under any law for the time being in force or any non-government organization registered with NGO Affairs Bureau or any university or medical college or dental college or engineering college responsible for making any payment to newspaper or magazine or private television channel ¹⁷⁴[or ¹⁷⁵[private radio station or any web site ¹⁷⁶[or any person on account of advertisement or] of purchasing airtime of private television channel or radio station or such web site], shall deduct tax in advance at the time of such payment at the rate of ¹⁷⁷[four per cent (4%)].]

¹⁷⁸[¹⁷⁹[***]

53M.The Securities and Exchange Commission or Stock Exchange, as the case may be, at the time of transfer or declaration of transfer or according consent to transfer of securities or mutual fund units of a sponsor shareholder or director or placement holder of a company or sponsor or placement holder of a mutual fund listed with a Stock Exchange shall collect tax at the rate of five per cent on the difference between transfer value and cost of acquisition of the securities or mutual fund units.

Explanation.- For the purpose of this section-

(1) 'transfer’ includes transfer under a gift, bequest, will or an irrevocable trust;

(2) 'transfer value’ of a security or a mutual fund unit shall be deemed to be the closing price of securities or mutual fund units prevailing on the day of consent accorded by the Securities and Exchange Commission or the Stock Exchange, as the case may be, or where such securities or mutual fund units were not traded on the day such consent was accorded, the closing price of the day when such securities or mutual fund units were last traded.]

¹⁸⁰[ 53N. (1) The Principal Officer of a stock exchange shall deduct tax at the rate of fifteen per cent on any profits and gains arising from the transfer of share of a shareholder of stock exchange established under ‘‘এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩, (২০১৩ সনের ১৫ নং আইন)’’ [Exchanges Demutualisation Act, 2013 (Act No. 15 of 2013)] at the time of transfer or declaration of transfer or according consent to transfer of such share, whichever is earlier.(2) For the purpose of the computation of profits and gains of share under sub-section (1), the cost of acquisition of such share shall be the cost of acquisition incurred before ‘‘এক্সচেঞ্জেস ডিমিউচ্যুয়ালাইজেশন আইন, ২০১৩, (২০১৩ সনের ১৫ নং আইন)’’ [Exchanges Demutualisation Act, 2013 (Act No. 15 of 2013)] came into force.

¹⁸¹[***]

¹⁸²[53P. Deduction of tax from any sum paid by real estate developer to land owner.-Where any person engaged in real estate or land development business pays any sum to the land owner on account of signing money, subsistence money, house rent or in any other form called by whatever name for the purpose of development of the land of such owner in accordance with any power of attorney or any agreement or any written contract, such person shall deduct tax at the rate of fifteen per cent (15%) on the sum so paid at the time of such payment.]

¹⁸³[53Q. (1)The personresponsible for the registration and fitness renewal of motor vehicles shall not register or allow fitness renewal unless, a challan of advance tax at the rate given in the following table is attached with the application:   

 

 

Table

 

 

 

Serial No.	Description of the vehicle	Rate (in taka)
1.	Bus having seats exceeding 52	16,000/-
2.	Bus having seats not exceeding 52	11,500/-
3.	Air conditioned Bus	37,500/-
4.	Double decker Bus	16,000/-
5.	Air conditioned (AC) Minibus/Coaster	16,000/-
6.	Non-AC Minibus/Coaster	6,500/-
7.	Prime mover	24,000/-
8.	Truck, Lorry or Tank Lorry having payload capacity exceeding five tons	16,000/-
9.	Truck, Lorry or Tank Lorry having payload capacity exceeding one and half tons but not exceeding five tons	9,500/-
10.	Truck, Lorry or Tank Lorry having payload capacity not exceeding one and half tons	4,000/-
11.	Pickup van, human hauler, maxi or auto rickshaw	4,000/-
12.	Air conditioned Taxicab	11,500/-
13.	Non-AC Taxicab	4,000/- .

 

(2) In case of registration or fitness renewal of a vehicle for more than one year, advance tax under sub-section (1) shall be collected on or before 30th June in every subsequent year or years following the year in which registration or fitness renewal of the vehicle has been done.

(3) Where any person fails to pay advance tax in accordance with sub-section (2), the amount of advance tax payable shall be calculated in accordance with A+ B formula, where-

A = the amount of advance tax not paid in the previous year or years; and

B = the amount of advance tax payable under sub-section (2) for the year in which an asseesee is making the payment.

(4) Advance tax under sub-section (2) shall not be collected if the vehicle is owned by-

(i) the government and the local government;

(ii) a project, programme or activity under the government and the local government;

(iii) a foreign diplomat, a diplomatic mission in Bangladesh, United Nations and its offices;

(iv) a development partner of Bangladesh and its affiliated office or offices;

(v) an educational institution under the Monthly Payment Order of the Government;

(vi) a public university;

(ix) an institution that has obtained a certificate from the Board that advance tax shall not be collected from it.

¹⁸⁴[53R.  (1)The person responsible for granting a certificate of survey or renewing a certificate of survey under the Inland Shipping Ordinance, 1976 (Ordinance No. LXXII of 1976) shall not grant or renew such certificate of survey unless a challan of advance tax computed at the rate given in the following table is attached with the application:

Table

Serial No.	Description of Vessel	Rate
(1)	(2)	(3)
1.	Inland ships engaged in carrying passengers in inland water	Taka 125 per passenger (carrying capacity of an inland ship shall be the capacity of daytime plying in smooth waters)
2.	Cargo, Container (multipurpose) and Coaster engaged in carrying goods in inland water	Taka 170 per gross tonnage
3.	Dump barge engaged in carrying goods in inland water	Taka 125 per gross tonnage.

 

(2) In case of granting a certificate of survey or renewing a certificate of survey for more than one year, advance tax under sub-section (1) shall be collected on or before 30th June in every subsequent year or years following the year in which grant of or renewal of such certificate has been done.

(3) Where any person fails to pay advance tax in accordance with sub-section (2), the amount of advance tax payable shall be calculated in accordance with A+ B formula, where-

A = the amount of advance tax not paid in the previous year or years; and

B = the amount of advance tax payable under sub-section (2) for the year in which an asseesee is making the payment.

(4) For the purpose of this section ‘inland ship’ and ‘inland water’ shall have the same meaning as defined in the Inland Shipping Ordinance, 1976 (Ordinance No. LXXII of 1976).]

¹⁸⁵[54. Deduction of tax from dividends.- The principal officer of a company registered in Bangladesh, or of any other company, shall, at the time of paying any dividend to a shareholder, deduct tax on the amount of such dividend, in the case of a resident or a non-resident Bangladeshi,-

(a) if the shareholder is a company, at the rate applicable to a company ;

(b) if the shareholder is a person other than a company, at the rate of ten per cent (10%) where the person receiving such dividend furnishes his twelve-digit Taxpayer's Identification Number (TIN) to the payer or fifteen per cent (15%) where the person receiving such dividend fails to furnish his twelve-digit Taxpayer's Identification Number (TIN) to the payer¹⁸⁶[:

Provided that the provision of this section shall not be applicable to any distribution of taxed dividend to a company ¹⁸⁷[***] if such taxed dividend enjoys tax exemption under the provisions of the paragraph 60 of Part A of the Sixth Schedule.]]

55. The person responsible for paying any amount on account of winnings referred to in section 19(13) shall, at the time of making such payment, deduct tax ¹⁸⁸[payable on the amount at the rate of twenty per cent]. Explanation.-For the purpose of this section, the expression “any amount” means the value of any goods or assets where the payment on account of such winnings is made not in the form of cash but in the from of goods or other assets.

56. ¹⁸⁹[(1) Subject to the provisions of sub-section (2), the specified person or any other person responsible for making payment to a non-resident of any amount which constitutes the income of such non-resident chargeable to tax under this Ordinance shall, unless such person is himself liable to pay tax thereon as agent, at the time of making such payment, deduct tax on the amount so payable at the rate, specified below:

SL. No	Description of services or payments	Rate of deduction of tax
1	Advisory or consultancy service	20%
2	Pre-shipment inspection service	20%
3	Professional service, technical services, technical know-how or technical assistance	20%
4	Architecture, interior design or landscape design, fashion design or process design	20%
5	Certification rating etc.	20%
6	Charge or rent for satellite, airtime or frequency, rent for channel broadcast	20%
7	Legal service	20%
8	Management service including event management	20%   10%
9	Commission	20%
10	Royalty, license fee or payments related to intangibles	20%
11	Interest	20%
12	Advertisement broadcasting	20%
13	Advertisement making 190[or Digital marketing]	15%
14	Air transport or water transport 191[ not being the carrying services mentioned in sections 102 or 103A]	7.5%
15	Contractor or sub-contractor of manufacturing, process or conversion, civil work, construction, engineering or works of similar nature.	7.5%
16	Supplier	7.5%
17	Capital gain	15%
18	Insurance premium	10%
19	Rental of machinery, equipment etc.	15%
20	192[Dividend— (a) company, fund and trust   (b) any other person not being a company, fund and trust	20%   20%
21	Artist, singer or player	30%
22	Salary or remuneration	30%
23	23 Exploration or drilling in petroleum operations	5.25%
193[24	Survey for coal, oil or gas exploration	5.25%
24A	Fees, etc. of surveyors of general insurance company	20%
25	Any service for making connectivity   between oil or gas field and its export point	5.25%
26	Any payments against any services not mentioned above	20%
194[27	Bandwith payment	10%
28	Any other payments	20%]

 

 

 

¹⁹⁵[Provided that when any capital gain arises from the transfer of any share of a company, the person or the authority, as the case may be, responsible for effecting the transfer of shares shall not give any effect in respect of such transfer if tax on such capital gain has not been paid. ]

¹⁹⁶[(2) Where, in respect of any payment under this section, the Board, on an application made in this behalf, is satisfied that due to tax treaty or any other reason the non-resident is not be liable to pay any tax in Bangladesh, or is liable to pay tax at a reduced rate in Bangladesh, the Board may issue a certificate ¹⁹⁷[within thirty days from the date of receipt of such application accompanied by all the documents as required by the Board] to the effect that the payment referred to in sub-section (1) shall be made without any deduction or, in applicable cases, with a deduction at the reduced rate as mentioned in the certificate.

(2A) Tax deducted under this section shall be deemed to be the minimum tax liability of the payee in respect of the income for which the deduction is made, and shall not be subject of refund or set off or an adjustment against a demand.]

 

¹⁹⁸[(3) For the purpose of this section—

(i) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of section 52 of this Ordinance; and

(ii) “payment” includes a transfer, a credit, an adjustment of payment or an order or instruction of making payment. ]

¹⁹⁹[57. (1)Where a person-

(a) fails to deduct or collect tax at source as required by or under the provisions of this Chapter; or

(b) deducts or collects tax at a lesser rate or in lesser amount; or

(c) after deducting or collecting tax under this Chapter, fails to pay the same to the credit of the Government, or pays to the credit of the Government an amount lower than the collected or deducted amount; or

(d) fails to comply with any other provision of this Chapter;

such person shall be deemed to be an asseesee in default, and without prejudice to any other consequences to which such person may be liable, shall be liable to pay–

(i) the amount of tax that has not been deducted or collected; or

(ii) the amount which was required to be deducted or collected under this Chapter as reduced by the amount that has been actually deducted or collected; or

(iii) the amount that, after being collected and deducted, has not been paid to the credit of the Government; or

(iv) a penalty not exceeding Taka ten lakhs for being non-compliant in respect of cases other than the cases mentioned above.

(2) In addition to the amount as mentioned in sub-section (1), the person shall also be liable to pay an additional amount at the rate of two percent (2%) per month on the amount other than the penalty as mentioned in clauses (i), (ii) and (iii) of sub-section (1), as the case or cases may be, calculated for the period-

(i) in the case of failure to deduct or collect, or of the deduction or collection at lower rate or amount, from the due date of the deduction or collection to the date of the payment of the amount, as mentioned in sub-clauses or (ii) of clause (c) of sub-section (1), as the case may be, to the credit of the Government;

(ii) in the case of failure to deposit the amount deducted or collected, from the date of deduction or collection to the date of payment of the amount, as mentioned in sub-clause (iii) of clause (c) of sub-section (1), to the credit of the Government.

(3) The period for which the additional amount under subsection (2) is calculated shall not exceed twenty-four months.

(4) The Deputy Commissioner of Taxes shall take necessary action for the realisation of the amount and penalty as mentioned in sub-section (1) and the additional amount as mentioned in sub-section (2) from the person referred to in sub-section (1) after giving the person a reasonable opportunity of being heard.

(5) Where the person responsible for deducting or collecting tax under this chapter is the Government, or any authority, corporation or body of the Government- including its units or a project or programme or activity where government has any financial or operational involvement-

(i) the individuals responsible for approving or allowing the payment; or

(ii) the individuals who is responsible for allowing, approving or granting any clearance, registration, license, permits, etc.

shall be jointly and severally liable to pay taxes, penalty or additional amount under this section.

(6) Where the person responsible for deducting or collecting tax under this chapter is a person other than the Government, or any authority, corporation or body of the Government- including its units or a project or programme or activity where government has any financial or operational involvement-

(i) the organization itself; and

(ii) the individuals responsible for approving or allowing the payment

shall be jointly and severally liable to pay taxes, penalty or additional amount under this section.

(7) No realisation of the amount mentioned in sub-section (1) shall be made if it is established that such amount has meanwhile been paid by the person from whom the deduction or collection was due.]

²⁰⁰[57A. (1) Where a person issues a certificate of deduction or collection of tax at source without actual deduction or collection or payment to the credit of the Government, without prejudice to any other consequences to which he may be liable, the person shall be personally liable to pay the amount not being deducted, collected or paid to the credit of the Government.(2) The Deputy Commissioner of Taxes shall take necessary action for the collection of amount mentioned in sub-section (1) from the person so personally liable after giving the person a reasonable opportunity of being heard.]

²⁰¹[58. (1) Every person who has deducted or collected any tax under this Chapter shall furnish, to the person from whom such deduction or collection has been made, a certificate of tax deduction or collection specifying therein-(a) the name and the Taxpayer’s Identification Number, if any, of the person from whom tax has been deducted or collected;(b) the amount of deduction or collection of taxes;(c) section or sections under which tax has been deducted or collected;(d) the particulars of the payment of deducted or collected amount to the credit of the Government; and(e) such other particulars as may be prescribed.(2) The Board may, by notification in the official Gazette, -(a) specify ²⁰²[the cases in which] the certificate of tax deduction or collection shall be generated or furnished electronically or in any other machine readable or computer readable media;(b) specify the manner in which such electronic, machine readable or computer readable certificate shall be generated or furnished.
²⁰³[ (3) Every person who has deducted or collected any tax under this Chapter shall furnish a statement to such income tax authority and in such manner as may be prescribed.]]

59. All sums deducted or collected as tax under the provisions of this Chapter shall be paid within the prescribed time by the person making the deduction or collection to the credit of the Government or as the Board may direct.

60. Save as provided in this Ordinance, no person shall charge, withhold, deduct or collect any sum, directly or indirectly, as tax and, where any sum is so charged, withheld, deducted or collected, it shall be paid in the manner provided in section 59.

61. The power to levy tax by deduction or collection under this Chapter shall be without prejudice to any other mode of recovery.

62. Any deduction or collection of tax made and paid to the account of the Government in accordance with the provisions of this Chapter shall be treated as a payment of tax on behalf of the person from whose income the deduction or collection was made, or of the owner of the security or of the shareholder, as the case may be, and credit shall be given to him therefore on the production of the certificate furnished ²⁰⁴[, along with the proof of payment of such tax to the account of the Government,] under section 58 in the assessment, if any, made for the following year under this Ordinance: Provided that, if such person or such owner obtains, in accordance with the provisions of this Ordinance, a refund of any portion of the tax so deducted, no credit shall be given for the amount of such refund: Provided further that where such person or owner is a person whose income is included under the provisions of sections 43(4) or (5) or section 104 or 105 or 106 in the total income of another person, such other person shall be deemed to be the person or owner on whose behalf payment has been made and to whom credit shall be given in the assessment for the following year. ²⁰⁵[* * *]

²⁰⁶[***]

63. The tax under this Ordinance shall be payable by the assessee direct-(a) in any case where tax has not been deducted or collected as required by, and in accordance with, the provisions of this Chapter;(b) in any case where the amount deducted or collected is found, after regular assessment, to be less than the tax due from the assessee, to the extent of deficiency; and(c) in the case of income in respect of which no provision has been made for deduction or collection of tax under the provisions of this Chapter.

64. (1) Except as provided in sub-section (2), tax shall be payable by an assessee during each financial year by way of advance payment of tax, hereinafter referred to as “advance tax”, in accordance with the provisions hereafter made in this Chapter if the total income of the assessee for the latest income year in respect of which he has been assessed by way of regular assessment or has been provisionally assessed under this Ordinance or the Income-tax Act, 1922 (XI of 1922), exceeds ²⁰⁷[²⁰⁸[six] lakh taka].

(2) Nothing in sub-section (1) shall apply to any income classifiable under the heads “Agricultural income” and “Capital gains” ²⁰⁹[excluding gain from transfer of share of a company listed with a stock exchange].

65. (1) The ²¹⁰[The minimum amount of advance tax] payable by an assessee in a financial year shall be the amount equal to the tax payable on his total income of the latest income year as assessed on regular basis or provisionally, as the case may be, as reduced by the amount of tax required to be deducted or collected at source in accordance with the preceding provisions of this Chapter. (2) The tax payable under sub-section (1) shall be calculated at the rates in force in respect of the financial year referred to therein.

66. Advance tax shall be payable in four equal instalments on the fifteenth day of September, December, March and June of the financial year for which the tax is payable ²¹¹[: Provided that, if before the fifteenth day of May of the year, an assessment of the assessee is completed in respect of an income year, later than that on the basis of which the tax was computed under section 65, the assessee shall pay in one instalment on the specified date or in equal instalments on the specified dates, if more than one falling after the date of the said assessment, the tax computed on the revised basis as reduced by the amount, if any, paid in accordance with the original computation.]

67. (1) Where, an assessee who is required to pay advance tax under section 64 estimates, at any time before the last instalment is due, that the tax payable by him for the relevant assessment year is likely to be less than the amount of tax as computed under section 65, he may, after giving to the Deputy Commissioner of Taxes an estimate of the tax payable by him, pay such estimated amount of advance tax, as reduced by the amount, if any, already paid, in equal instalments on the due dates of payment under section 66. (2) The assessee may furnish a revised estimate of such amount at any time before any of such instalments become payable and may thereby adjust any excess or deficiency, by reference to the amount already paid by him under this section, in any subsequent instalment or instalments payable in such financial year.

68. Any person who has not previously been assessed by way of regular assessment under this Ordinance or the Income-tax Act, 1922 (XI of 1922), shall before the fifteenth day of June in each financial year, if his total income, subject to section 64(2), of the period which would be the income year for the immediately following assessment year is likely to exceed ²¹²[²¹³[six] lakh taka], send to the Deputy Commissioner of Taxes an estimate of his total income and advance tax payable by him calculated in the manner laid down in section 65 and shall pay such amount on such dates specified in section 66 as have not expired by instalments which may be revised according to section 67(2).

²¹⁴[68A. (1) A manufacturer of cigarette shall pay advance tax at the rate of three percent (3%) on net sale price in every month.(2) The advance tax paid under sub-section (1) shall be adjustable against the quarterly installments of advance tax payable under section 66.Explanation.-In this section, “net sale” shall be A- B, where, A is the gross sale and B is the value added tax and the supplementary duty, if any, on such gross sale.

68B. (1) Every person owning a private motor car shall be deemed to have an income by which the motor car is maintained and shall pay advance income tax to be collected at the rate and in the manner as mentioned in sub-section (2).

(2) Subject to the provision of sub-section (3), the authority responsible for the registration and fitness renewal of motor car shall collect, on or before the date of registration or fitness renewal of the motor car, advance tax at the following rate-

²¹⁵[Table

Serial No.	Type and engine capacity of motor car	Amount of tax (in taka)
1	A car or a jeep, not exceeding 1500cc or 75kw	25,000/-
2	A car or a jeep, exceeding 1500cc or 75kw but not exceeding 2000cc or 100 kw	50,000/-
3	A car or a jeep, exceeding 2000cc or 100 kw but not exceeding 2500cc or 125 kw	75,000/-
4	A car or a jeep, exceeding 2500cc or 125 kw but not exceeding 3000cc or 150 kw	1,25,000/-
5	A car or a jeep, exceeding 3000cc or 150 kw but not exceeding 3500cc or 175 kw	1,50,000/-
6	A car or a jeep, exceeding 3500cc or 175 kw	2,00,000/-
7	A microbus	30,000/-

 

 

 

 

 

 

Provided that the rate of tax shall be fifty percent (50%) higher for each additional motor car if the owner has two or more motor cars in his name or in joint names with other person or persons.

 

²¹⁶[(2A) In case of registration or fitness renewal of motor car for more than one year, advance tax under sub-section (2) shall be collected on or before 30th June in every subsequent year or years following the year in which registration or fitness renewal of motor car has been done.

(2B) Where any person fails to pay advance tax in accordance with sub-section (2A), the amount of advance tax payable shall be calculated following A+B formula, where-

A = the amount of advance tax not paid in the previous year or years; and

B = the amount of advance tax payable under sub-section (2) for the year in which an assessee is making the payment.]

 

(3) Advance tax under sub-section (2) shall not be collected if the motor car is owned by-

(i) the government and the local government;

(ii) a project, programme or activity under the government and the local government;

(iii) a foreign diplomat, a diplomatic mission in Bangladesh, United Nations and its offices;

(iv) a development partner of Bangladesh and its affiliated office or offices;

(v) an educational institution under the Monthly Payment Order of the Government;

(vi) a public university;

(vii) any entity that is not a person as defined under clause (46) of section (2) of this Ordinance;

(viii) a gazetted war-wounded freedom fighter; or

(ix) an institution that has obtained a certificate from the Board that advance tax shall not be collected from it.

(4) Where a person pays advance tax under sub-section (2), and the income from regular sources of the person results in a tax liability less than the said advance tax, the income of such person shall be deemed to be the amount that results a tax liability equal to the said advance tax.

(5) The advance tax paid under sub-section (2) shall not be refundable.

(6) In this section-

²¹⁷[a) “motor car” includes a jeep or a microbus but does not include a motor vehicle mentioned in section 53Q and a motor cycle.]

(b) income from regular sources means income from any source other than the sources mentioned in sub-section (2) of section 82C.]

69. Where, an assessee who is required to pay advance tax fails, to pay any instalment of such tax, as originally computed or as the case may be, estimated, on the due date, he shall be deemed to be an assessee in default in respect of such instalment.

70. Where, in respect of an assessee who is required to pay advance tax, it is found in the course of regular assessment that advance tax has not been paid in accordance with the provisions of this Chapter, there shall be added, without prejudice to the consequences of the assessee being in default under section 69, to the tax as determined on the basis of such assessment, simple interest thereon calculated at the rate and for the period specified in section 73.

71. Any sum, other than a penalty or interest, paid by or recovered from an assessee as advance tax, shall be treated as a payment of tax in respect of the income of the period which would be the income year for an assessment for the year next following the year in which it was payable and shall be given credit for in the assessment of tax payable by the assessee.

72. (1) The Government shall pay simple interest at ²¹⁸[ten per cent] per annum on the amount by which the aggregate sum of advance tax paid during a financial year exceeds the amount of tax payable by him as determined on regular assessment. (2) The period for which interest under sub-section (1) shall be payable shall be the period from the ²¹⁹[first day of July of the year of assessment] to the date of regular assessment in respect of the income of that year or a period of two years from the said ²²⁰[first day of July], whichever is shorter.

²²¹[73. (1) Where in any financial year advance tax paid by an assessee together with the tax deducted or collected at source, if any, under this Chapter is less than seventy-five percent (75%) of the amount of tax payable by him as determined on regular assessment, the assessee shall pay, in addition to the balance of tax payable by him, simple interest at the rate of ten percent (10%) per annum on the amount by which the tax so paid, deducted and collected falls short of the seventy five percent (75%) of the assessed tax:Provided that the rate of interest shall be fifty percent (50%) higher if the return is not filed on or before the Tax Day.(2) The period for which the interest under sub-section (1) is payable shall be the period from the first day of July next following the financial year in which the advance tax was applicable to the date of regular assessment in respect of the income of that year or a period of two years from the said first day of July, whichever is shorter.(3) Notwithstanding anything contained in sub-sections (1) and (2), where-(a) tax is paid under section 74; or(b) provisional assessment has been made under section 81 but regular assessment has not been made, the simple interest shall be calculated in accordance with the following provisions-(i) up to the date or dates on which tax under section 74 or as provisionally assessed, was paid;(ii) thereafter, such simple interest shall be calculated on the amount by which the tax so paid falls short of the said seventy five percent (75%) of the assessed tax.(4) Where as a result of appeal, revision or reference the amount on which interest was payable under sub-section (1) has been reduced, the amount of interest payable shall be reduced accordingly and the excess interest paid, if any, shall be refunded together with the amount of tax that is refundable.Explanation.-For the removal of doubts, it is hereby declared that in this section, “regular assessment” includes ²²²[the acceptance of revised return or the assessment made as a result of the audit under section 82BB(7)].

73A. (1) Where an assessee is required to file a return of income for an assessment year under section 75 and fails to file the same before the expiry of the Tax Day, the assessee shall, without prejudice to any other consequences to which he may be liable to, pay a delay interest at the rate of two percent (2%) per month on the difference between the tax assessed on total income for the assessment year and the tax paid in advance for the assessment year including the tax deducted or collected at source;Explanation.-In this section, the expression “tax assessed on total income” as mentioned in ²²³[***] sub-section (1) means-²²⁴[(i) where the return is subject to assessment under section 82BB, if tax under any other sub-section of section 82BB is higher than the tax under sub-section (1) of that section, the higher tax;](ii) where the return is not subject to assessment under section 82BB, tax on total income as assessed by the Deputy Commissioner of Taxes.(2) The delay interest under sub-section (1) shall be calculated for a period from the first day immediately following the Tax Day to-(a) where the return is filed, the date of filing the return;(b) where the return is not filed, the date of regular assessment: Provided that the period for calculating delay interest under this section shall not exceed one year: Provided further that the delay interest under this section shall not be payable by an assessee for whom the proviso of sub-section (5) of section 75 applies.]

74. ²²⁵[ (1) Every person who is required to file a return under section 75, 77, 78, 89(2), 91(3) or 93(1) shall, on or before the date on which he files the return, pay the amount of tax payable by him on the basis of such return or as per provision of ²²⁶[sub-section (4) of section 82C], which ever is higher, as reduced by the amount of any tax deducted from his income or paid by him in accordance with the provisions of this Chapter.] (2) Any amount paid under sub-section (1) shall be deemed to have been paid towards the sum as may be determined to be payable by him after regular assessment. (3) A person who, without reasonable cause, fails to pay the tax as required by sub-section (1) shall be deemed to be an assessee in default.