(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