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);

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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;

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.

[(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

 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

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