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

 

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