16. Deduction of tax from payment to contractors, etc.-

1[16. Deduction of tax from payment to contractors, etc.-

The rate of deduction of income tax under section 52 shall be the following-

(a)  subject to clause (b), in case of a payment made under sub-section (1) of section 52, the deduction on payment shall be at the rate specified in the Table-1 below:-

                                                                 Table-1

Sl. No. Amount Rate of Deduction of tax
1. Where base amount does not exceed taka 15 lakh 2%
2. Where base amount exceeds taka 15 lakh but does not exceed taka 25 lakh 3%
3. Where base amount exceeds taka 25 lakh but does not exceed taka 1 crore 4%
4. Where base amount exceeds taka 1 crore but does not exceed taka 5 crore 5%
5. Where base amount exceeds taka 5 crore but does not exceed taka 10 crore 6%
6. Where base amount exceeds taka 10 crore

7%                            

 

(b) the rate of  deduction from the following classes of persons shall be at the rate specified in the Table-2 below:-

                                                                                 Table-2

Sl No

                                                             Amount Rate of deduction of tax
1

In case of oil supplied by oil marketing companies-
(a)Where the payment does not exceed taka 2 lakh

(b) Where the payment exceeds taka 2 lakh

Nil

0.60%

2

In case of oil supplied by dealer or agent (excluding petrol pump station) of oil marketing companies, on any amount

1%
3

In case of supply of oil by any company engaged in oil refinery, on any amount

3%

4

In case of company engaged in gas transmission, on any amount

3%

5

 

 

In case of company engaged in gas distribution, on any amount

 

3%

 

Provided that-

(a) 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 makintg the payment;

(b) Where the payee or the income of the payee,which is subject to tax at source under section 52, is exempted from tax or is subject to a reduced tax rate in an income year, the Board may on an application made by the payee in this behalf gives a certificate in writting that the payment referred to section 52 for that income year shall be made without any deduction or with deduction at a proportionately reduced rate, as the case may be..]

 

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1 Subs by এস,আর, ও নং ২৫৭-আইন/আয়কর/২০১৭,তাং ০১/০৮/২০১৭

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Md. Jahangir Alam

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