Income Tax Ordinance

Chapter VII

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48. Deduction at source and advance payment of tax.-

CHAPTER VII
PAYMENT OF TAX BEFORE ASSESSMENT

48.  Deduction at source and advance payment of tax.-

(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. Income subject to deduction at source.-

49. Income subject to deduction at source.-

(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[(bb) income derived from fixed deposits in banks]

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

3[(d) income derived by the importers and exporters on account of import and export 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);

.....................................................................

 
1 Ins. by F.A. 2001
2 Ins. by F.O. 1985 subsequently omitted by Ordinance No. XXXVI of 1985, dated 20/07/1985 w. e. f 01/07/1985
3 Subs. by F.A. 2012

 

 

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

1[(h) income classifiable under the head "Income from house property" ;

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

2[(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 ;

3[(l) income derived on account of travel agency commission; and]

(m) income derived on account of shipping agency commission; 4[and];]

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

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

7[(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";]

8[(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;

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1 Clause (h), (i), (j), (k), (l) and (m) ins. by F.A. 1988
2 Ins. by F.A. 2014
3 Omitted by F.A. 1993
4 Omitted by F.A. 1999

5 Clause (n) ins. by F.A. 1989 with the word "and" added after clause (m), and subs. by F.A. 2001
6 Clause (o), (p) and (q) ins. by F.A. 1991. of which clause (o) & (p) made applicable from the asstt. year 1990-91
7 Added F. A. 2016

8 Clause (r), (s), (t), (u), (v), (w), (x), (y) and (z) ins. by F.A. 1999

 

 

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

(u) income derived on account of interest on savings instruments;

1[(v) income derived on account of bonus or bonus shares issued by acompany registered under the Companies Act,1913 (VII of 1913) or কোম্পানী আইন,1994 (1994সনের ১৮ নং আইন);

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

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

2[(y) income derived on account of real estate business;and]

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

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

4[(zb) income derived on account of tcommission received by travel agency from airline;and]

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

5[(zd) income from dividends.]

6[(ze) income derived on account of rendering certain services ;7[;

8[(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;

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1 Omitted by F.A. 2001
2 Omitted by F.A. 2000

3 Ins. clause (za), (zb) and (zc) by F.A. 2000
4 Omitted by F.A. 2001
5 Ins. by F.A. 2001
6 Ins. by F.A. 2002
7 Ins. by F.A. 2005
8 Subs. by. F.A. 2009

 

 

(zh) income derived by an exporter on account of export of any commodity

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

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

2[(zk) income derived on account of export cash subsidy;]

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

4[(zl) on account of  use of credit card by a credit card holder]]

5(zm) on account of  6[issuance or]  renewal of trade licence;

7[(zn) income derived on account of trustee fees;]

(zo) income derived on account of freight forward agency commission;8[;

(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; 9[

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1 Ins. by F.A. 2006
2 Omitted by F.A. 2009
3 Ins. by F.A. 2012
4 Omitted by F.AO 2007
5 Ins. by F.O 2007
6 Omitted by F.O 2008
7 Omitted by F.A. 2010

8 Subs. "semi-colon" for "full-stop" and ins. new clauses (zp), (zq), (zr) and (zs) by F.O 2008
9 Ins. by F.A. 2009

 

 

(zt) income derived by foreign technician serving in a diamondcutting industry 1[;

 2[(zu) on account of issue of share at a premium;]

[(zv) income derived from transfer of securities or mutual fund units by sponsor shareholders of a company etc.3[

[(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.4[

[(zy) income derived on account of international gateway service in respect of phone call 5[:

[(zz) collection of tax from manufacturer of soft drink] 6[;
(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 7[;

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

(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.

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1 Subs. "semi-colon" for "full-stop" and ins. new clauses (zu), and (zv) by F.A. 2010
2 Omitted by F.A. 2013
3 Subs. "semi-colon" for "full-stop" and ins. new clauses (zw), and (zx) by F.A. 2011
4 Subs. "semi-colon" for "full-stop" and ins. new clauses (zy) by F.A. 2012
5 Subs. for "collection of tax from manufacturer of soft drink" by F.A. 2013
6 Ins.by F.A.2014

7 subs.for and ins.clause(zzg) by F.A. 2015

 

 

(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 the head "Salaries,"1[ not being payment made by the Government]  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..

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1Omitted by F.A. 2011

50. Deduction at source from salaries.-

50. Deduction at source from salaries.-

(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.

1[(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 7 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.;

(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 2[sub-section (1) and (A)], 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.

3[(2A) The payment under 4[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 dedcuted 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 5[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.

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1 Ins. new sub section (1A) and (1B) by F.A. 2015

2 Subs. for "sub section (1)" by F.A. 2015

3 Ins. by F. A, 2013

4 Subs. for "sub section (1)" by F.A. 2015

5 Subs. for "sub section (1)" by F.A. 2015

 

50A. Deduction at source from discount of the real value of Bangladesh Bank bills.-

1[50A. Deduction at source from discount of the real value of Bangladesh Bank bills.-

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.

2[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 recognized providend fund,or a workers" profit participation fund]

 


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1 Ins. by F.A. 1997

2 Ins. Proviso by F.A. 2004

 

50B. Deduction of tax from payment of remuneration to Members of Parliament.-

1[50B. Deduction of tax from payment of remuneration to Members of Parliament.-

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.]

 

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1 Ins. new section 50B by F.A. 2011

51. Deduction at source from interest on securities.-

151. Deduction at source from interest on securities.-

 

(1) Any person responsible for issuing a security of the government or a security approved by the Government, income of which is classifiable under the head “Interest on securities”, shall collect, unless the Government otherwise directs, income tax at the rate of five percent (5%) upfront on interest or discount receivable on maturity on such security.

(2) If the security mentioned in sub-section(1) is a security based on Islamic principles, income tax shall be deducted or collected at the rate of five percent (5%) on profit or discount at the time of payment or credit, whichever is earlier.

(3) Income tax shall not be collected or deducted at source if the security mentioned in sub-section (1) is a Treasury bond or Treasury bill issued by the Government.

 

 

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Subs F. A. 2016

51A. Deduction at source from interest on fixed deposits,-

[51A. Deduction at source from interest on fixed deposits,-
Any person responsible for paying any sum by way of interest on any fixed deposit maintained with any scheduled bank including a co-operative bank or by way of share of profit on term deposit maintained with any bank run on Islamic principles, as the case may be,shall deduct, at the time of credit of such interest or share or profit to the account of the recipient, being resident,or at the time of the payment thereof, whichever is earlier,income tax at the following rates namely:-

(i) where the amount of deposit does not
exceed taka 40,000

Nil

(ii) Where the amount of deposit exceedsTaka 40,000

10 per cent,of the sum of interest or share of profit,as the case may be,on the whole of such deposit:

Provided that nothing contained in this section shall apply to such recipient or class of recipients as the Boars may,by a general or specila order,specify in this behalf.] by I.T.(amend) Ord. 1985 (sec-2) Sec. 51A ins by F.O. 1985 and subsequently deleted

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1 Ins, sec. 51A by F. O. 1985 and subsecuently ommited by I, T. (amend.) Ord. 1985 (sec-2)

52. Deduction from payment to contractors, etc.-

152. Deduction from payment to contractors, etc.-

(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:

2[Provided that–

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

                           (b) tax shall not be deducted in respect of clause (b) of sub-section (1) in respect of the purchase of direct materials that constitute cost of sales or cost of goods                                    sold of a trading company or a manufacturing company, as the case may be;

                           (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.” |

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

(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 authorized 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 Organization registered with the NGO Affairs Bureau;

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

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

(xi) a trust or a fund;

(xii) a firm;

(xiii) a public-private partnership;

(xiv) a foreign contractor, a foreign enterprise or an association or a body established outside Bangladesh; and

(xv) any artificial juridical person not mentioned above;

(xiii) a public-private partnership;

(xiv) a foreign contractor, a foreign enterprise or an association or a body established outside Bangladesh; and

(xv) any artificial juridical person not mentioned above;

(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;

And shall also be inclusive of মূল্য সংযোজন কর (value added tax);

(d) “payment” includes a transfer, a credit or an adjustment of payment.

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 1 Subs. by F.A. 2016

 2Subs. by F.A. 2017

52A. Deduction at source from fees for professional or technical services.-

152A. Deduction at source from fees for professional or technical services.-

 

 

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

(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, know-how, 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-

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;
And shall also be inclusive of মূল্য সংযোজন কর (value added tax);

(d) “payment” includes a transfer, a credit or an adjustment of payment.

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1Subs. by F.A. 2016

 

52AA. Deduction from the payment of certain services.-

1[52AA. Deduction from the payment of certain services.-

 

[(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

 

 

SL. No

 

Description of service and payment

Rate of deduction of tax

Where base amount does not exceed Tk. 25 lakh

Where base amount exceeds Tk. 25 lakh

1

Advisory or consultancy service

10%

12%

2

Professional service , technical services fee, or technical assistance fee

10%

12%

3

(i)    Catering service;

(ii)   Cleaning service;

(iii)  Collection and recovery

service;

(iv)  Private security service;

(v)    Manpower supply service;

(vi)  Creative media service;

(vii)  Public relations service;

(viii)  Event management service;

(ix)     Training, workshop, etc.

organization and

management service;

(x)       any other service of similar

nature-

(a) on commission or fee

(b) on gross bill amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10%                                            1.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12%                                            2%

4

Media buying agency service

a) on commission or fee

(b) on gross bill amount

 

10%  

0.5%                                                                                     

 

12%

0.65%                                                                                       

5

Indenting commission

 

6%                                           

8%                                            

6

Meeting fees, training fees or honorarium.

 

10%                                           

12%                                           

7

Mobile network operator, technical support service provider or service delivery agents engaged in mobile banking operations

 

10%                                           

12%                                           

8

Credit rating service

10%                                           

12%                                           

9

Motor garage or workshop

6%

8%

10

Private container  port or dockyard service

6%

8%

11

Shipping agency commission

6%

8%

12

Stevedoring/berth operation commission

10%

12%

13

Transport service, carrying service, vehicle rental service

3%

4%

14

 Any other service which is not mentioned in Chapter VII of this Ordinance and is not a service provided by any bank, insurance or financial institutions

10%

12%




Provided that 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
  2.  B x C x D, where

B = Gross bill amount

C = 10% for Sl. 3 and 3.5% for Sl. 4, and

D = rate of tax applicable on commission or fee:

Provided further 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:

 

 Provided further that 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 thatincome year.

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1 Subs. by F. A. 2017
 

52 AAA. Collection of tax from clearing and forwarding agents:-

1[52AAA.  Collection  of  tax  from  clearing  and  forwarding  agents.-   

 

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  2[ten percent] on such commission at the time of clearance of goods imported or exported].

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1 Ins. by F.A. 2004
2 Subs. for "seven and half per cent" by F.A. 2010

52B. Collection of tax from Cigarette manufacturers .-

1[52B. Collection of tax from Cigarette manufacturers .-

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.]

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1 Sub by F.A. 2016

 

52C. Deduction at source from compensation against acquisition of property.-

1[52C. Deduction at source from compensation against acquisition of property.-

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) two per cent of the amount of such compensation where the immovable property is situated in any city corporation, paurashava or cantonment board;

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

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1 Subs by F. A. 2010

52DD. Deduction at source from payment to a beneficicary of workers’ participation fund.-

1[52DD. Deduction at source from payment to a beneficicary of workers’ participation fund.-

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 such payment, deduct income tax at the rate of five percent (5%) on such payment.]

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1 Subs by F. A. 2016

52D. Deduction at source from interest on saving instruments.-

1[52D. Deduction at source from interest on saving instruments.- 

 

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 working any payment by way of interest on any savings instruments shall, at the time of such payment, deduct income tax at the rate of five percent (5%) 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 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, pound sterling investment bond or Pound sterling premium bond.]

 

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1 Subs by F. A. 2016

 

 

 

 

 

52E. Collection of tax on account of bonus.-

1[52E. Collection of tax on account of bonus.-

The principal officer of any company registered under the companies Act,1913(VII of 1913) or কোম্পানী আইন ,1994( (১৯৯৪ সনের ১৮নং আইন) shall, at the time of isuing any bonus to its shareholders,collect Income- tax at the rate of ten percent on the amount of the bonus]

...................................................................

1Omitted by F.A. 2001

 

 

52F. Collection of tax from brick manufacturers.-

1[52F. Collection of tax from brick manufacturers.-

Any person responsible for issuing any permission or renewal of permission for the manufacture of bricks shall, at the time of issuing such permission or renewal of permission, collect tax from such manufacturer at the time of issuance of such permission or renewal at the following rates:

2[(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.]Subs F. A. 2014

Explanation:- For the purpose of this section, the word “section” shall have the same meaning as defined in কোম্পানী আইন, ১৯৯৪ (১৯৯৪ সনের ১৮ নং আইন), 2004.

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1 Ins. by F.A. 2005
2 Subs. by F.A. 2014

52G. Deduction from fees for services rendered by doctors.-

1[52G.Deduction from fees for services rendered by doctors.-

The principal officer of any company registered under the companies Act,1993 ( VII of 1913) or  কোম্পানী আইন 1994 (১৯৯৪ (১৯৯৪ সনের ১৮নং আইন) or the chief executive of any non-government organisation registered with the Bureau of Non-government organisation or the chief executive of any trust registered under the Trusts Act,1882 (II of 1882) running any general or specialised hospital or any diagnostic centre shall be responsible for making any payment to any doctor which may be payable to him on account of fees for services rendered by him to a patient in such hospital or dignostic centre and shall, at the time of making such payment,deduct income tax at the rate of [five] percent.on the amount so payable.]

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1Omitted by F.A. 2004

 

52H. Deduction of tax from persons engaged in the real este business.-

1[52H. Deduction of tax from persons engaged in the real este business.-

(1) Any authority responsible for approving any plan submitted by any person engaged in thr real estate business for the purpose of construction of any residential or commercial building shall, at the time of giving such approval, collect income tax from the person submitting such plan at the following rates;-

(a) where the proposed building is situated within the limits of Dhaka city corporation,three percent,of the estimated cost of construction of such building or the aggregate of taka one houdred and fifty per square metre,whichever is higher;

(b) where the proposed building is situated within the limits of any city corporation or of a pourasava of a divisional headquarters or district headquarters,one percent of the cost of construction of such building or the aggregate of taka thirty percent metre,whichever is higher;

(2) The amount of tax referred to in sub-section (1) shall be treated as apayment of tax in respect of the income of the period which would be the income year in which the building referred to in the said sub-section is completed.]

.................................................................

1Omitted by F.A. 2000

 

52I. Deduction from the commission of letter of credit.-

52I. Deduction  from  the  commission  of  letter  of  credit.-

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.

52 j. Collection of tax from travel agent.-

1[52 j. Collection of tax from travel agent.-

A person responsible for paying to a resident any sum by way of commission or discount for selling tickets of an airline or for carrying cargo shall deduct or collcet advance tax at the time of paying such commission or allowing discount, at such rate and in such manner,as may be prescribed.]

..........................................................

1 Ins. by F.A. 2000 subsequently omitted by F.A. 2001

 

52JJ. Collection of tax from travel agent.-

1[52JJ. Collection of tax from travel agent.-

(1) Notwithstanding anything contained in any other Provisions of 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 sub-section (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 sub-section (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.]

.................................................................................................................

1 Subs. by F. A. 2016

52K. Collection of tax by City Corporation or Pourashava at the time of renewal of trade licence.-

1[ 2[52K. Collection of tax by City Corporation or Paurashava at the time of renewal  of  trade  license.-

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 five hundred in 3[Dhaka South City Corporation, Dhaka North City Corporation] or Chittagong City Corporation;
(b)  taka three hundred 4[in any city corporation]
(c) taka three hundred in any paurashava at any district headquarter;
(d) taka one hundred in any other paurashava.]

.....................................................................

1 Ins. section 52K, 52L and 52M by F.O 2007
2 Subs. by F.O. 2008 again subs. by F.A. 2012

3 Subs. by F.O. 2017

 subs. by F.A. 2017

 

 

 
 

52L. Collection of tax on account of trustee fees.-

1[52L. Collection of tax on account of trustee fees.-

Any person responsible for making any payment by way of trustee fees, at the time of making such payment , shall deduct tax at the rate of ten per cent of the said amount.]

...........................................................

1Omitted by F.A. 2010

 

52M. Collection of tax from freight forward agency commission.-

52M. Collection of tax from freight forward agency commission.- 

Any person responsible  for  making  any  payment  by  way  of  freight  forward  agency commission, at the time of making such payment 1[or credit of such payment to the account of the payee], shall deduct tax at the rate of  2[fifteen percent] of the said amount.

............................................................................

1 Ins. by F.A. 2011
2 Subs. for "seven and half per cent" by F.A. 2010
 

52N. Collection of tax on account of rental power. -

1[52N.  Collection  of  tax  on  account  of  rental  power.  - 

Notwithstanding anything contained in this Ordinance, Bangladesh Power Development Board , at the time of payment to any rental power company  on account of purchase of rental power from that company, shall collect , deduct or pay tax on the said payment 2[,for a term not exceeding three years from the date of its operation in Bangladesh] at the rate of  3[six per cent] 4[which shall be treated as final discharge of tax liability of the rental power company regarding the sale of such rental power.]

........................................................................................................

1 Ins. by Income Tax(Amendment) Act, 2009 (Act No. 11 of 2009). Dated: 24/02/2009
2 Omitted by F.A. 2011
3 Subs for “four per cent” by F.A.2014
4 Omitted by F.A. 2012

 

52O. Collection of tax from a foreign technician serving in a diamond cutting industry.-

1[52O.  Collection  of  tax  from  a  foreign  technician  serving  in  a  diamond cutting  industry.- 

 

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.]

 

..........................................................

1 Ins. by F.A. 2009

 

52P. Deduction of tax for services from convention hall, conference centre, etc.-

1[52P. Deduction of tax for services from convention hall, conference centre, etc.- 

 

Any  person,  being  a  corporation,  body  or  authority  established  by  or under  any  law  including  any  company  or  enterprise  owned,  controlled  or managed by it, or a company registered under   কোম্পানী আইন, 1994  (1994 সনের ১৮ নং আইন),  any Non-government Organization registered with N.G.O Affairs Bureau or any university or medical college or dental college or engineering college  which  makes  any  payment  to  any  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 percent from the whole amount paid for the services thereof at the time of  making  such  payment  or  at  the  time  of  credit  of  such  payment  to  the account of the payee:


Provided that no deduction shall be made by a company when such amount is paid directly to the government.

......................................................

1Ins. new sections 52P & 52Q by F.A. 2011

 

 

52Q. Deduction of tax from resident for any income in connection with any service provided to any foreign person.-

52Q. Deduction of tax from resident for any income in connection with any service  provided  to  any  foreign  person.- 

Any  person,  responsible  for paying or crediting to the account of a resident any sum remitted from abroad by  way  of  service  charges  or  consulting  fees  or  commissions  or remunerations  or  any  other  fees  called  by  whatever  name  for  any  service rendered or any work done by a resident person in favour of a foreign person, shall deduct tax at the rate of ten percent of the amount so paid at the time of making such payment or credit of such payment to the account of the payee.]

..........................................................................

52R. Deduction of tax from receipts in respect of international phone call. –

1[52R. Deduction of tax from receipts in respect of international phone call. –

(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 2[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 the any sum related to international phone call is paid or credited to the account of Interconnection Exchange (ICX), Access Network Services (ANS) or any other person under an agreement with the Bangladesh Telecommunication Regulatory Commission (BTRC), shall deduct tax at the rate of 3[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.

              4[(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  5 [ sub-section (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.]

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1 Ins. by F. A. 2012

2 Subs by F.A. 2016

3 Subs by F.A. 2016

Subs by F.A. 2017

5 Subs by F.A. 2017

 

52S. Collection of tax from manufacturer of soft drink

1[52S. Collection of tax from manufacturer of soft drink 2[, etc.]-

  1. The Security Printing Corporation (Bangladesh) Limited, or any other person responsible for delivery of banderols or stamps, shall collect, at the time of delivery of such banderols or stamps to any manufacturer of soft drinks 3[or mineral or bottled water], tax at the rate of 4[four per cent (4%)] Subs F. A. 2015 of the value of such 5[or mineral or bottled water]Added F. A. 2014 as determined for the purpose of the value added Tax (VAT).]

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1 Ins. new section 52S by F. A. 2013

2 Ins by F. A. 2014

3 Ins by F. A. 2014

4 Subs. for "three percent" by F. A. 2015

5 Ins by F. A. 2014

 

52T. Deduction of tax from any payment in excess of premium paid on life insurance policy

1[52T. Deduction of tax from any payment in excess of premium paid on life insurance policy.-

  1. 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:
  2. Provided that no deduction of tax shall be made in case of death of such policy holder.

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1 Ins new section 52 T, 52U and 52V by F.A. 2014

52U. Deduction from payment on account of local letter of credit.

52U. Deduction from payment on account of local letter of credit.-

  1. The bank or financial institution, through which any local letter of credit or any financing agreement, called by whatever name, is made between two or more persons within the country for purchasing or procuring of any goods and proceeds of such goods are paid, shall deduct tax at the rate of three per cent, on the total proceeds exceeding five lakh taka, at the time of paying or crediting such proceeds to the account of the person or persons providing such goods:
  2. Provided that no tax shall be deducted under this section from the payment related to local letter of credit (L/C) and any other financing agreement in respect of 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 1[, computer or computer accessories, jute, cotton, yarn] Added F. A. 2015 and all kinds of fruits.

--------------------------------------------------------------------------------------------

1 Ins by F. A. 2015

 

52V. Deduction from payment by cellular mobile phone operator

52V. Deduction from payment by cellular mobile phone operator.-

  1. 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 per cent of such payment at the time of credit to the payee or at the time of payment thereof, whichever is earlier.]Added F. A. 2014

 

53. Collection of tax from importers and exporters.-

53.  Collection  of  tax  from  importers.- 1[and exporters.-

2[(1)  The   3[Commissioner  of Customs] shall make collection of tax payable by the importers on account of import of goods  4[and the bank through which the exporters receive payment shall make collection of tax payable by the exporters on account of export of goods.].]


(2)  The  Board  shall,  for  the  purpose  of  collection  of  tax  under  sub-section (1),-

(a)  specify  the  importers  5[and exporters ]  from  whom  collections  are  to  be made; and
(b) prescribe the method and rate of calculation of the amount to be collected and the manner of collection.


(3)  Any  amount  collected  under  sub-section  (1)  shall  be  deemed  to  be  an advance payment of tax by the importer  6[or exporter]  concerned, and shall be given credit for, in the assessment of his tax.

..................................................................................................

1 Omitted by F.A. 2012
2 Subs. by F.A. 1992
3 Subs. for "Collector of Customs" by F.A. 2001
4 Omitted by F.A. 2012
5 Omitted by F.A. 2012
6 Omitted by F.A. 2012

53A. Deduction at source from house property

1[53A. Deduction at source from house property.-

2[(1) Where the Government of 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 as defined in clause (20) of section 2, or any banking company or any co-operative bank established by or under any law for the time being in force or any non-governmental organisation run or supported by any foreign 3[donation or assistance or any university or medical college or dental college or engineering college 4[or any college or school] 5[or hospital or clinic or diagnostic centre] is a tenant in respect of a house property, the tenant shall deduct from the house rent paid or payable as advance tax 6[at the rate of five percent]

7[Explanation.- For the purpose of this section, “house rent” means any payment, by whatever name called, under any lease, tenancy or any other agreement or arrangement for the use of any building 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 provisions of this Ordinance, payment referred to in sub-section (1) shall be made without any deduction until the certificate is cancelled.

------------------------------------------------------------------

1 Ins by F. A. 1988

2 Subs by F. A. 1992

3 Subs. for "donation or assistance by F. A 2004"

4 Ins. by F. A. 2012

5 Ins by F. A. 2014

6 Subs. for "such amount as may be prescribed" by F. A. 2012

7 Subs by F. A. 1999

53AA. Collection of tax from shipping business of a resident.-

1[53AA. Collection of tax from shiping business of a resident.-

Commissioner of customs or any other authority, duly authorised in this behalf, shall not grant port clearence to a ship owened or charterd by a resident assessee unless 2[a certificate is received in prescrived manner from Deputy Commissioner of Taxes concerned and] tax at the rate of 3[five percent] of total freight receved or receivable in or out of Bangladesh has been paid of carriage of passanger, livestock, mail or goods , shiped at any port of Bangladesh 4[:
 

provided that tax shall be collected at the rate of three percent of total freight receved or receivable from services rendered between two or more foreign countries.]

...................................................................

1 Ins. Sec. 53AA by F.A. 2005
2 Ins by F. A. 2015
3 Subs. for "four percent" by F.O. 2007
4 Ins. by F.A. 2009

 

 

 

53B. Deduction of tax from income derived on account of export of manpower.-

1[53B.  Deduction  of  tax  from  income  derived  on  account  of  export  of manpower.-  The Director General, Bureau of Manpower, Employment and Training shall, before giving clearance for export of any manpower, collect from the exporter concerned as advance tax on income on account of such export   2[at  such  percentage]  of  the  service  charge  or  fees  mentioned  in Ordinance, 1982 (XXIX of 1982), as may be prescribed.

...........................................................................................

1 Ins. Sec. 53B, 53C and 53D by F.A. 1988
2 Subs. for "at such rate, not exceeding seven and a half per cent" by F.A. 1993

53BB. Collection of tax from export of certain items.-

**[1[2[53BB.  Collection  of tax  from export  of  certain items.- 

The  bank,  throughwhich export proceeds of an exporter of knit wear and woven garments, terry towel,  carton  and  accessories  of  garments  industry  jute  goods,  frozen  food, vegetables, leather goods, packed food is received, shall deduct tax at the rateof  3[one percent (1%)]  of the total export proceeds at the time of crediting the proceeds to the account of the exporter:


Provided that 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,  credit  to  the account  of  the  assessee  shall  be  made  without  any  deduction  of  tax  or deduction of tax at a rate less than the rate specified in this section for the period mentioned in that certificate.

....................................................

** The rate under section 53BB has been reduced from "(0.80%)" to "(60%)" by SRO No. 224-L/2015. Dated: 02/07/2015 }

1 Ins. Sec. 53BB and 53BBB by F.A. 2005
2 Subs. Sec 53BB by F.A. 2009
3 Subs. for "zero point six one percent (1%)" by F.A. 2016

* The rate "zero point eight zero percent (o.10%)" has been reduced to "zero point zero five percent (0.05%)" by SRO No. 334-L/IT/2011 Dated: 27/10/2011      

 

53BBB. Collection of tax from Member of Stock Exchanges.-

53BBB.  Collection  of  tax  from  Member  of  Stock  Exchanges.- 

The  Chief Executive Officer of a stock exchange shall collect tax at the rate of    *[zero point One zero percent (0.10%)] on the value of shares, debentures, mutual funds 1[,bonds] or securities transacted by a member of a stock exchange at the time of payment for such transaction.]

........................................................................

* The rate "zero point one zero percent (0.10%)" has been reduced to "zero point zero five
percent 0 .050%)" by Gm.Avi.I bs 334-আইন/আয়কর/২০১১, তারিখঃ27/10/2011
1 Omitted by F.A. 2013

 

53BBBB. Collection of tax from export of any goods except certain items

***[1[53BBBB. Collection of tax from export of any goods except certain items.-

The bank, through which export proceeds of an exporter of any goods  except knit  wear,  woven  garments,  terry  towel,  carton  and accessories  of  garments industry, jute goods, frozen food, vegetables, leather goods and packed food is received,  shall  deduct  tax  at  the  rate  of   2[one percent (1%)]  of the  total export proceeds at the time of crediting the proceeds to the account of the exporter, which shall be deemed to be an advance payment of tax by the exporter and shall be given credit for the assessment of his tax:


Provided that 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,  credit  to  the account  of  the  assessee  shall  be  made  without  any  deduction  of  tax  or deduction of tax at a rate less than the rate specified in this section for the period mentioned in that certificate.]

....................................................................

 
*** The rate under section 53BBBB has been reduced from "(0.80%)" to "(0.60%)" by SRO No. 224-L/2015 Dated: 02/07/2015

1 Ins by F. O. 2007 and subs. by F. A. 2009
2 Subs. for "zero point five zero percent (0.50%)" by F.A. 2011 subsequently subs. for "one percent (0.70%)" by F. A. 2016

 

 

 

53C. Collection of tax on sale price of goods or property sold by public auction.-

53C.  Collection  of  tax  on  sale  price  of  goods  or  property  sold  by  public auction.-

Any person making sale, by  1[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

2[other than a private limited company,]  as defined in 3[4the Companies Act, 1913 (VII of 1913) or1or any banking company,  কোম্পানী আইন, 1994 (1994 সনের ১৮  নং  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, as advance tax on the income from the sale price of such goods or property from the auction purchaser  at  such  rate,  not  exceeding  seven  and  a  half  per  cent.  of the  sale price, as may be prescribed.


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, fees or other levies, by whatever name called, but does not include sale of a plot of land.

...........................................................

1Subs. for "public auction" by F.A. 1996

2 Omitted by F.A. 2011
3 Subs. for "the companies Act. 1913 (VII of 1913)" by F.A. 1995
4 Omitted by F.A. 2011

 

 

 

53CCC. Deduction or collection of tax at source from courier business of a non-resident.-

1[53CCC. Deduction or collection of tax at source from courier business of a non-resident.-

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 a 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.]

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1 Added by F.A. 2016

 

53CC. Deduction or collection of tax at source from courier business of a non-resident.-

1[53CC. Deduction or collection of tax at source from courier business of a non-resident.-   

Any person being a company registered under the Companies Act, 1913(VII of 1913) or  কোম্পানী আইন, 1994 (1994 সনের ১৮ নং আইন)  working as local agent of a nonresident courier company shall deduct or collect tax in advance  at  the  rate  of  2[fifteen  percent]  on  the  amount  of  service  charge accrued from the shipment of goods, documents, parcels or any other things outside Bangladesh.]

..............................................................................

1 Ins. by F.A. 2006 and subsequently omitted by F. A. 3015
2 Subs. for "seven and half percent" by F.A. 2010

 

53D. Deduction from payment to actors and actresses.-

1[53D.  Deduction  from  payment  to  actors,  actresses,  producers,  etc.-

(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 payee 2[:


Provided that no tax shall be deducted under this section if the total payment does not exceed ten thousand taka.]]

..................................................................................................

1 Subs. by F.A. 2011
2 Subs. "colon" for "full-stop" and ins. new proviso by F.A. 2012

53DD. Deduction of tax at source from export cash subsidy

1[53DD. Deduction of tax at source from export cash subsidy.-
Any person responsible for paying any amount on account of export cash subsidy to an exporter for promotion of export shall deduct or collect tax in advance at the rate of five per cent on the amount so payable.] Deleted F.A. 2009

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1Ins. by F.A. 2006 and omitted by F.A. 2009

53DDD. Deduction of tax at source from export cash subsidy

1[53DDD. Deduction of tax at source from export cash subsidy.-

  1. 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 2[three percent]Subs F. A. 2014 on the amount so payable.]

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1 Ins new section 53DDD by F. A. 2012

2 subs for "five percent" by F. A 2014

53E. Deduction Or Collection At Source From Commission, Discount Of Fees.


1[53E. Deduction or collection at source from commission,discount, fees, etc.- (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-

 

  1. “payment” includes a transfer, credit or an adjustment of payment;

 

  1. “contract” includes an agreement or arrangement, whether

written or not.” |

..........................................................................................................

Ins. by F. A. 2017

 

53E. Deduction Or Collection At Source From 1[Commission, Discount Of Fees].

2[(1)  Any  person  being  a  corporation,  body  or  authority  established  by  or under  any  law  including  any  company  or  enterprise  owned,  controlled  or managed  by  it,  or  a  company  registered  under 3[4[the Companies Act, 1913 (VII of 1913) or]]  কোম্পানী  আইন,  1994 (1994 সনের ১৮  নং  আইন)  which makes any payment to any distributor or to any other  persons  by  way  of  commission,  or  fees 5[or  allows  any  discount] 6[or dealer's promotional charges or fees or commission or any other payement called by whatever name] for distribution or marketing of goods  7[Manufactured by it], shall deduct or collect at the time of credit  of  such  commission,  or  fees  or  at the  time  of  payment  thereof, whichever is earlier,  8[or at the time of allowing discount] as advance tax an amount  at  the  rate   9[10[ten  percent].  of  commission,  or  fees  payable  or discount allowed]


11[(2) Any company, other than an oil marketing company, whick 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= 12%

Explanation.- >For the purpose of this section, “contract” includes an agreement or an arrangement, whether written or not.]

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1 Subs. for "by way of commission or fees" by F.A. 2001

2 Existing law of section 53E is numbered as a sub-section (1) & ins new sub section (2) by F.A 2013
3 Subs. for "the Companies Act. 1913 (VII of 1913)" by F.A. 1995
4 Omitted by F.A. 2011
5 Subs. for "by way of commission or fees" by F.A. 2001

6 Ins. by F. A. 2015
7 Omitted by F.A. 2011
8 Subs. for whichever is earlier" by F.A. 2001
9 Subs. for "five per cent of commission or fees payable" by F.A. 2001
10 Subs. for "seven and half percent" by F.A. 2011
11 Subs by F. A. 2016

 

53EE. Deduction of tax from commission or remuneration paid to agent of foreign buyer.-

1[53EE. Deduction of tax from commission or remuneration paid to agent of foreign buyer.-

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  2[ten percent (10%)] on the commission, charges or remuneration so paid at the time of such payment.]

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1 Ins by F.A. 2000
2 Subs. for "four percent" by F.A. 2010 and again subs. for "seven and half percent" by F. A. 2015

53F. Deduction at source from interest on saving deposits and fixed deposits, etc.-

1[53F.  Deduction  at  source  from  interest  on  saving  deposits  and  fixed deposits, etc.- 

(1) 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  Scheduled  bank  including  a  cooperative  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 of-


(a)  ten  percent  where  the  person  receiving  such  interest  or  share  of profit  furnishes  his  2[twelve-digit  Taxpayer's  Identification  Number] (TIN) to the payer; or
(b) fifteen percent where the person receiving such interest or share of profit  fails  to  furnish  his 3[twelve-digit  Taxpayer's  Identification Number] (TIN) to the payer:

4["(c) ten per cent (10%) where the person receiving such interest or share of profit 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.";

Provided that the rate of deduction of tax shall be ten percent in case of saving deposit of which balance does not exceed taka one lakh at any time in the year.

5[(2) Notwithstanding anything contained in this Ordinance or any other law for the time being in force in respect of exemption of tax from any fund, any person responsible for paying any sum by way of interest or share of profit on any saving deposits or fixed deposits or any term deposit maintained with any Scheduled 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, by or in the name of a fund shall deduct, at the time of credit of such interest or share of profit to the account of the fund or at the time of payment thereof, whichever occurs earlier, income tax at the rate of five percent(5%) on such sum.]

(3)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 scheduled 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.]

 

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1 Sec. 53F ins. by F.A. 1990 and subs. by F.A. 2012
2 Subs. for "Taxpayer is Identification Number" by F.A.2014

3 Subs. for "Taxpayer is Identification Number" by F.A.2014

4 Ins. new clause (c) by F. A. 2015
5 Subs. by F.A.2016