mahfuzmee-eng/income-tax-bd huggingface dataset:
Part V: Computation Of Income
Chapter I: Total Income
Section 71 (Carry forward of depreciation allowance.)
clause 1: Any depreciation allowed under this Act which cannot be fully charged as an expense against the gross profit of any assessment year, it shall be added to the depreciation of the next assessment year.
clause 2: Any disallowance of depreciation allowance on account of failure to comply with any provision of this Act shall not be carried forward.
clause 3: Before charging the carried forward depreciation allowance the carried forward loss shall be set off.
clause 4: Allowed depreciation allowance may be carried forward until wholly set off. CHAPTER X METHOD OF ACCOUNTING
Part V: Computation Of Income
Chapter I: Total Income
Section 72 (Method of Accounting.)
clause 1: Subject to other provisions of this Act, the income of a person shall be computed in accordance with the method of accounting regularly employed.
clause 2: Where a person is of the opinion that any change in the method of accounting is required, such person may apply to the Deputy Commissioner of Taxes regarding the desired change and on receipt of such application the Deputy Commissioner of Taxes may approve the necessary changes to reflect the income of the assessee clearly. 1 The words, figures and brackets under sub-section
clause 2: of section 163 were inserted by section 30 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
clause 3: The Board may, by rules, prescribe the method of accounting and other verification standard for any business, or class of business, or any other source or sources of income.
clause 4: Without prejudice to the preceding provisions, a company shall maintain accounts and prepare financial reports in accordance with International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) and relevant laws in force in Bangladesh.
Part V: Computation Of Income
Chapter I: Total Income
Section 74 (Method of accounting for long-term contracts.)
clause 1: Where a person follows the accrual method of accounting for income computed and classified as Income from business, the income arising from long-term contracts in an income year shall be calculated according to the percentage method of completion.
clause 2: The percentage of completion of long-term contracts in an assessment year shall be determined by comparing the estimated total contract costs at the beginning of the contract with the total allocated costs to the contract prior to the end of that assessment year and the costs incurred.
clause 3: For the purposes of this section (a) long-term contract means a contract for production, installation, or construction, or the performance of services related to each contract, which is not completed within the 1[year] of commencement of work under the contract, but all contracts other than such contracts which will end within approximately 6 (six) months from the date of commencement of work under the contract; (b) percentage method of completion means the universally accepted accounting principles under which revenue and expenditure covered by long-term contracts are recognized at the stage of completion of the revised contract under sub-section
clause 2: .
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 75 (Incomplete or incorrect accounts, etc.)
clause 1: Nothing in this Chapter shall derogate from the power of the Income-tax Authority to disregard any return, statement or document furnished by a assessee, or the said claim in the course of audit or assessment proceedings, if it is not verifiable.
clause 2: Where no conventional method of accounting has been employed, or the Deputy Commissioner of Taxes is not satisfied as to the correctness or completeness of the accounts of the assessee, or the accounts of the assessee have not been prepared and maintained in accordance with the provisions of section 73, the assessee shall be assessed in such manner as the Deputy Commissioner of Taxes may think fit.1 The word year was substituted for the words assessment year by section 32 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 76 (Tax exemptions.)
clause 1: The Board may, by notification in the official Gazette, grant exemption from tax to any person or class of persons.
clause 2: Where an exemption from tax is granted to a person under the provisions of any other law than this Act or any other instrument having force of law, notwithstanding anything contained in the other Act or legal documents, such provision shall not be operative unless, by notification issued under sub- section
clause 1: , tax exemption is granted to such person.
clause 3: The Board may cancel any tax exemption by issuing a notification under this section.
clause 4: Retrospective tax exemption shall not be granted under this Act.
clause 5: Notwithstanding anything contained in Part 6 and other provisions of this Act, no person shall be exempted from tax under this Act in any tax year if he fails to comply with the following conditions, namely: (a) filing the return within the tax day; or (b) filing returns in compliance with the provisions of sections 166 and 171; or (c) filing a return in respect of activities like deduction or collection at source, deposit thereof and ensuring compliance with the provisions of Part 7; or 1[(d) receiving all receipts and incomes from any tax exempted source through bank transfer: Provided that this provision shall not apply to the following cases, namely: i. where the receipt is classifiable under the head income from agriculture and the total amount of receipt in any income year does not exceed Taka 1(one) crore; or 1 Clause (d) was inserted by section 33(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. ii. any asset acquired as gift under clause
clause 34: of Part 1 of the Sixth Schedule;]
clause 6: Any disallowance of expenditure under section 55, in calculating the income of a source or of a person that is exempted from tax or is subject to a reduced rate of tax, shall be treated as income for that source or of that person, as the case may be, and tax shall be payable on such income at the regular rate. 1[
clause 7: Notwithstanding anything contained in this Act, any person enjoying tax exemption may pay tax at regular rate by surrendering his exemption fully or partially.
clause 8: Any person shall not be entitled to further tax exemption in any other manner or for any other period for a source of income against which such person was granted tax exemption for a definite period by any Act and such person shall not be entitled to tax exemption in case of reconstitution by amalgamation, demerger and acquisition: Provided that the provision of this sub-section shall not be applicable to tax exemption where the existing period of tax exemption is extended by any provision of this Act or by any notification.]
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 77 (Exclusion from total income.)
clause 1: The income earned by any person mentioned in Part 1 of the Sixth Schedule shall not be included in computing the total income of that person in the said income year, but it shall be included in computing the source of funds for the said income year subject to the following conditions, namely: (a) exclusion from the total income should be properly shown in the relevant column of the return; and (b) details of the source and amount of income shall be submitted with the return.
clause 2: The sum donated by a person under Part 2 of the Sixth Schedule shall be excluded from the total income while computing his tax liability subject to the following conditions, namely: (a) such donation is reflected in the return or particulars or documents annexed with the return; 1Sub-sections
clause 7: and
clause 8: were inserted by section 33(b) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.(b) the total amount of donation under Part 2 of the Sixth Schedule shall not exceed 10% (ten percent) of the total income shown before deducting the donation; (c) details of the source and amount of income have been submitted with the return.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 80 (Averaging.)
clause 1: If the total income of a member of an association of persons or a partner in a firm includes share of income arising from such association of persons or firm, tax at the average rate shall not be payable on the said share of income.
clause 2: The average rate of tax shall be calculated according to the following formula, namely: T= A x (B/C) where- T= tax at average rate; A= tax computed on total income (including income from association of persons or firm), B= share of income received from association of persons or firm; C= total income including income received from association of persons or firm. CHAPTER III TAX HOLIDAY
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 81 (Income of approved tax holiday entity.)
clause 1: Subject to the provisions of this Act, the income included in the sources of 'Income from business' earned by an approved tax holiday entity shall be granted benefit of tax exemption fully or partially under Part 4 of the Sixth Schedule and this Chapter for the specified period subject to the prescribed limits, conditions and qualifications.
clause 2: Any benefit of income tax exemption availed under sub-section
clause 1: shall not be included in the total income of the assessee, but shall be shown in the relevant part of the return.
clause 3: An approved tax holiday entity shall be granted tax exemption under sub-section
clause 1: , subject to the following conditions, namely: (a) the entity is owned and operated by such person, who is (i) any statutory body established by or under law having its head office in Bangladesh;(ii) a company as defined in the Companies Act, 1994 (Act No. XVIII of 1994) having its registered office in Bangladesh and has a purchased or paid-up capital of not less than 20 (twenty) lakh Taka on the date of commencement of commercial production; (b) the entity has not been formed by way of separation or reorganization or re-incorporation from any such business already in existence; (c) any plant, machinery, equipment or any other important immovable property on an entity which is not previously used by any other entity in Bangladesh; (d) the entity (i) has obtained TIN; (ii) has maintained accounts in accordance with the provisions of this Act; (iii) has maintained accounts independently and separately. Explanation.For the purpose of this section, approved tax holiday entity means an entity which has income from business relating to any income year, and which (a) has been approved by the Board for partial or full tax exemption under this Chapter; (b) has been allowed for tax exemption or reduced tax rate in the concerned income year.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 82 (Approval of tax holiday entity by the Board.)
clause 1: A business entity shall submit an application, in the manner prescribed by the Board, 1[within the period not exceeding 6 (six) months] of commencement of its commercial operation for getting the benefit of tax holiday.
clause 2: The Board shall, by order in writing, give a decision on the application filed under sub-section
clause 1: within 60 (sixty) days from the date of receipt of the application.
clause 3: If the Board fails to give a decision within the period mentioned in sub- section
clause 2: , the application for obtaining tax holiday shall be deemed to be provisionally approved and, until the Board gives a decision in the matter, the business entity shall be treated as a tax holiday entity.
clause 4: The Board shall not cancel any application without giving the applicant a reasonable opportunity of being heard. 1 The words, figures and brackets within the period not exceeding 6 (six) months were substituted for the words within months by section 34 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
clause 5: If any applicant is aggrieved by the decision given by the Board under sub-section
clause 3: , the said applicant may appeal to the Board within 4 (four) months of the receipt of the decision and the Board may reconsider the previous order and issue such as it may deem fit.
clause 6: Without prejudice to the provisions of sub-section
clause 1: , the Board may approve and review approvals under this section or make rules on any matter as it thinks fit for the purpose of ensuring tax compliance of tax holiday entities.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 83 (Transactions with associated entity.)
clause 1: Where an approved tax holiday entity engages in a transaction with any of its associated entities and if the Deputy Commissioner of Taxes is satisfied that, (a) the transaction is not at an open market price; and (b) the income of any associated entity in any income year is less than the actual income as a result of such transaction, the extent to which the income of associate entity computed lesser shall be treated as income of the allowable tax holiday entity and shall be classified under "Income from other sources" for the said income year.
clause 2: For the purposes of this section, (a) an entity shall be deemed to be an associated enterprise of an approved tax holiday entity, if (i) any entity, directly or indirectly, or through one or more intermediaries, participates in the management or control or capital of any other entity; or (ii) the same person or persons, including spouses and descendants, participate in the management or control or capital of both entities, directly or indirectly, or through one or more intermediaries; or (iii) an entity, directly or indirectly, controls shares carrying more than 25% (twenty-five percent) of the voting power of another entity; or (iv) the same person or persons, including spouses or descendants, control shares carrying more than 25% (twenty-five percent) of the voting power in both entities; or (v) two entities are members of the same group; (b) open market price means the price agreed between two unrelated parties in the open market; (c) The term entity shall include any person.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 84 (Computation of income of approved tax holiday entity.)
clause 1: Income of approved tax holiday entities shall be computed separately from any other business.
clause 2: The income of the approved tax holiday entity shall be computed in the same manner as the income under the head 'Income from Business'.
clause 3: Only the normal depreciation allowance mentioned in Part 1 of the Third Schedule shall be applicable in computing the income from business of an approved tax holiday entity.
clause 4: The computed loss of an approved tax holiday entity for any income year shall not be set off against the profits of any other entity or source of the assessee, which is not an approved tax holiday entity.
clause 5: The benefit of tax holiday shall not be applicable to the income arising from the said entity as a result of disallowance under section 55 and such income shall be taxed at the regular rate.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 85 (Cancellation or disallowance of tax exemption.)
clause 1: Where it is found during the course of any proceeding taken under this Act that any approved tax holiday entity has failed to comply with any condition specified in this Chapter, the Deputy Commissioner of Taxes shall not grant benefit of tax holiday to the approved tax holiday entity and determine the tax payable for such year in the regular manner by regular tax rate.
clause 2: Any such approved tax holiday entity may, within 1 (one) year from the date of approval of the cancellation order, apply in writing to the Board against the cancellation of such benefit, and the Board may, upon receiving such application, pass such orders thereon as it may deem fit.
clause 3: Notwithstanding anything contained in this Chapter, the Board may, by notification in the official Gazette, in the public interest, cancel or suspend fully or partially any exemption allowed under this section. PART 7 PAYMENT OF TAX CHAPTER I DEDUCTION OF TAX FROM RESIDENTS
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 86 (Deduction of tax at source from income from employment.)
clause 1: A person responsible for payment of any employment under the head "Income from employment" to a payee shall, at the time of making such payment, deduct tax on the amount so payable at a rate representing the average or the rates applicable to the 1[estimated] total income of the payee under that head. 2 [***]
clause 3: Where any Government official has performed as Drawing and Disbursing Officer (DDO) or prepared or signed a bill for himself or for any other official subordinate to him to draw salary from the Government or any authority, he shall, at the time of making or signing such bill, deduct tax at the average rate of tax applicable to the estimated total income of such officials if such annual salary chargeable to tax exceeds the taxable limit for that income year.
clause 4: During any deduction under sub-sections
clause 1: and
clause 3: , the surplus or deficit shall be increased or decreased by an amount equal to the adjustment with any previous surplus or deficit.
clause 5: Where tax has already been paid at source under this section, including advance tax payable under this Act, and the tax applicable to the probable total income of an employee appears to be close to the amount of tax so payable, the Deputy Commissioner of Taxes shall, on the basis of the application and evidence furnished by the employee, may issue a certificate for the remainder of income year to the effect that no tax will be deducted from the said employee or tax will be deducted at a lower rate.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 89 (Deduction of tax from money paid to contractors, suppliers, etc.)
clause 2: was omitted by section 35(b) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 3 Section 88 was substituted by section 36 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.(a) entering into any contract other than a contract for providing or rendering a service referred to in any other section of Part 7; (b) supply of goods; (c) manufacture, processing or conversion; (d) printing, packaging or binding, in such case, the person responsible for the said payment shall, at the time of making such payment, deduct tax at such rate not exceeding 10% (ten percent) on the base value, as may be prescribed.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 91 (Deduction from amount paid for intangible property.)
clause 2: Where base amount does not exceed 25(twenty five) lakh Taka 10% (ten percent) Where base amount exceeds 25 (twenty five) lakh Taka 12% (twelve percent) .
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 93 (Deduction from payment to actors, actresses, producers, etc.)
clause 2: A person shall deduct tax at the rate of 10% (ten percent) on the amount payable or paid for acting in a film, play, advertisement or any television or radio program, at the time of payment or deposit to the account of any other person partially or fully.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 94 (Deduction or collection of tax at source from commission, discount, fee, etc.)
clause 1: Where any company or firm is 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 or services, the person responsible for payment shall, at the time of payment or allowing the amount, deduct or collect tax at the rate of 10% (ten percent) of the amount of payment or the amount allowed or the value of benefits allowed, as the case may be.
clause 2: Where any company or firm is 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, the person responsible for payment shall, at the time of payment, deduct tax at the rate of 1.5% ( one point five percent) of the payment.
clause 3: Any company or firm, 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 or firm 1[or any other person], shall collect tax from such distributor or such any other person at the rate of 5% (five) percent on the amount equal to B x C, where- B = the selling price of the company or firm to the distributor or the other person; C = 5% (five percent): Provided that a cigarette manufacturing company or firm shall collect tax at the time of sale of its goods to such distributor or to such other person at the rate of 3% (three percent) of the difference between the sale price to the distributor or the other person and the retail price fixed by such company or firm.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 95 (Collection of tax from travel agent.)
clause 1: Notwithstanding anything contained in any other provisions of this Act, any person responsible for making 1 The words or any other person were inserted by section 37 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.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 (0.3%) zero point three) of the total value of the tickets or any charge for carrying cargo by air at the time of payment to such resident.
clause 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
clause 1: , the person responsible for making such payment shall deduct an amount equal to A/B x C, where A= the amount of incentive bonus, performance bonus or any other benefits as mentioned in this sub-section, B= the amount of commission or discount or any other benefits as mentioned in sub-section
clause 1: , and C= the amount of source tax on commission or discount or any other benefits as mentioned in sub-section
clause 1: .
clause 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.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 97 (1[Deduction from payment on account of local letter of credit, etc].)
clause 1: Where a bank or 2[a finance company] extends any credit facility under a local letter of credit or any other financing agreement, not being a financing arrangement under sub-section
clause 2: , for purchasing any goods in Bangladesh by a person hereinafter referred to as Person A from any person, hereinafter referred to as Person B, for the purpose of trading, or of reselling after process or conversion, in that case the bank or 3[finance company] shall, at the time of paying or crediting to Person B, deduct tax at the rate of 3% (three percent) of the amount so paid or credited in relation to the purchase by Person A. 1 The heading Deduction from payment on account of local letter of credit, etc was substituted for the heading Deduction from the amount received as commission on account of local letter of credit by section 38(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 2 The words finance company were substituted for the word financial institution by section 14(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 3 The words finance company were substituted for the word financial institution by section 14(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
clause 2: Where a bank or 1[finance company] extends any credit facility to a distributor under a financing arrangement in which a person, hereinafter referred to as Person C, receives payments from such bank or the 2[finance company] against the invoice or sale of goods to its distributor, hereinafter referred to as Person D, in that case, the bank or [finance company] shall, at the time of paying or crediting payment to Person C, deduct tax at the rate of 1% (one percent) of the amount so paid or credited in relation to the goods invoiced to Person D. 3[
clause 3: Where a bank or finance company is engaged in opening or making of local letter of credit or any other financing agreement for the purchase or procurement of all kinds of fruits and computer or computer accessories, in that case such bank or finance company shall deduct tax at the rate of 2% (two percent) on the amount of payment or the amount of local letter of credit.] 4[
clause 4: Where a bank or finance company is engaged in opening or making of local letter of credit or any other financing agreement for the 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, bay leaf, jute, cotton and yarn, in that case such bank or finance company shall deduct tax at the rate of 1% (one percent) on the amount of payment or the amount of local letter of credit.] Explanation.For the purpose of this section, "distributor" means a person who performs the function of supply of finished goods produced by another person to the end customer directly or through any other intermediary.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 99 (Deduction of tax from any payment in excess of premium paid on life insurance policy.)
clause 3: was substituted by section 38(b) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 4 Sub-section
clause 4: was substituted by section 38(c) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 5 The words, mark, brackets and figures 20% (twenty percent) were substituted for the words, mark, brackets and figures 10% (ten percent) by section 39 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.maintained with any life insurance company, shall, at the time of payment of such excess amount to the policy holder, deduct in tax at the rate of 5% (five percent) on such sum: Provided that no deduction of tax shall be made in case of death of such policy holder.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 102 (Deduction of tax on savings deposits and fixed deposits, etc.1[(1) Notwithstanding anything contained in this Act or any other law for the time being in force in Bangladesh, any person engaged in the operation of banking, insurance, leasing, financing, postal banking, co-operative or mobile financial services, or any person responsible for paying any sum by way of interest or share of profit on deposit to a resident 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, tax on such sum at the rate mentioned in the following table and deposit it to the Government treasury, namely: Table Serial.)
clause 3: 1. In case of a trust, association of persons and company 20% (twenty percent) 2. In case of a primary educational institution, Institute of Chartered Accountants, Institute of Cost and Management Accountants or Institute of Chartered Secretaries 10% (ten percent) 3. In case of persons not mentioned in serial no. 1 and 2 10% (ten percent)] 1 Sub-section
clause 1: was substituted by section 40 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
clause 2: 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.
clause 3: For the purposes of this section, the proof of submission of return of legal guardian of a minor shall be considered as the proof of submission of return of the minor. 1[***]
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 104 (Deduction of tax from interest income of resident.)
clause 1: Where a specified person pays interest to any person other than a bank or 2[finance company] against a loan or the acceptance of a loan, he shall deduct tax at the rate of 10% (ten percent) on the interest paid at the time of payment of said interest.
clause 2: The Board may, on application of the assesse subject to verification, issue a certificate in writing to the effect that no deduction of tax shall be applicable on the amount due to the assessee under this section or that deduction of tax shall be applicable at a reduced rate.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 105 (Deduction of tax on profits of savings certificates.)
clause 1: Notwithstanding anything contained in any other provision of this Act or in any other law with respect to the exemption from tax on profits received on savings certificates purchased with the money of an approved superannuation fund or pension fund or gratuity fund or recognized provident fund or workers' interest participation fund, for payment of profits on savings certificates, a person responsible for payment of profit on savings certificates shall deduct tax at the rate of 10% (ten percent) on such payment.
clause 2: If the accumulated investment in a pensioner's savings instrument does not exceed Taka 5 (five) lakhs in an income year, no tax shall be deducted under this section from the profit earned on such investment.
clause 3: No tax shall be deducted from the interest or dividend arising from Wage Earners Development Bonds, US Dollar Premium Bonds, US Dollar Investment Bonds, Euro Premium Bonds, Euro Investment Bonds, Pound Sterling Investment Bonds or Pound Sterling Premium Bonds. 1 Section 103 was omitted by section 41 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 2 The words finance company were substituted for the word financial institution by section 14(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 108 (Deduction of tax from receipts in respect of international phone call.)
clause 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 1.5% (one point five percent) of the total amount representing the said receipt at the time of crediting it to the account of the International Gateway (IGW) Services operator.
clause 2: The International Gateway (IGW) Services operator, through which any sum related to international phone call is paid, or any sum credited to the account of Interconnection Exchange (ICX), Access Network Services (ANS), Bangladesh Telecommunication Regulatory Commission (BTRC) or any other person under an agreement with the Bangladesh Telecommunication Regulatory Commission (BTRC), shall deduct tax at the rate of 7.5% (seven point five percent) on the whole amount so paid or credited at the time of such payment or credit under the said agreement.
clause 3: 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 7.5% (seven point five percent) on the whole amount so paid or credited at the time of such payment or credit.
clause 4: Notwithstanding anything contained in sub-section
clause 1: ,
clause 2: or
clause 3: , 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.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 109 (Deduction of tax at source from rent.)
clause 1: Where any specified person rents (a) any house property; (b) hotel or guest house;(c) empty premises or plant or machinery; or (d) any water body other than a Government water body, the said person shall deduct tax at the rate of 5% (five percent) on the rent payable while paying the rent of the said property.
clause 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, the amount so in excess.
clause 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 provision of this Act, payment referred to in sub-section
clause 1: shall be made without any deduction until the certificate is cancelled.
clause 4: For the purposes of this section, rent means any payment, by whatever name may be called, under any lease, tenancy or any other agreement or arrangement for the use of any house property or hotel accommodation including any furniture, fittings and the land appurtenant thereto.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 114 (Collection of tax on account of purchase of power.)
clause 1: Notwithstanding anything contained in this Act, Bangladesh Power Development Board or any other person engaged in power distribution 2[or any specified person purchasing power from person engaged in captive power generation] shall, collect, deduct or pay tax at the rate of 6% (six) percent on the amount payable, at the time of payment, on account of purchase of power.
clause 2: Where a person is exempted from tax on the income from generating power in an income year, the Board may, on an application made by the assessee, issue a certificate in writing that the payment for that income year shall be made without any deduction or with deduction or collection, or with deduction or collection at a proportionately reduced rate.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 119 (Deduction or collection of tax from income of non-residents.)
clause 1: Notwithstanding anything contained in any other provision of this Chapter, subject to the provisions of sub-section
clause 2: , the specified person or any other person responsible for making any payment to a non-resident which is taxable to the non-resident under this Act, shall, at the time of such payment, unless he himself is liable to pay the tax as an agent, deduct or collect tax on the amount payable, not exceeding 30% (thirty per cent), as specified.
clause 2: Where the Board, being satisfied on the basis of the application received with the required documents for the purpose, within 30 (thirty) days of receipt of the application, may issue a certificate to the effect that a non-resident, due to tax treaty or any other reason, shall not pay any tax or shall pay tax at a reduced rate in Bangladesh, in which case the payment of tax referred to in sub-section
clause 1: shall be made without deduction of tax or at a reduced rate.
clause 3: Tax deducted under this section shall be deemed to be the minimum tax liability of the payee in respect of the income for which the deduction is made, and shall not be set off against a demand.
clause 4: Where capital gains arise in favour of a non-resident assessee from the transfer of any shares in a company, the person or the authority, as the case may be, responsible for effecting the transfer of shares shall not effectuate the transfer unless the tax payable on the said capital gains has been paid.
clause 5: If any tax collected under this section is deposited in the name of a resident person, the tax under this section shall be deemed to have not been collected.
clause 6: Deduction of tax at source under this section shall not be applicable on the following amounts remitted to a non-resident, namely: (a) arbitration fees; (b) money remitted for Hajj; (c) money for priority pass. CHAPTER III COLLECTION OF TAX AT SOURCE
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 123 (Collection of tax from export proceeds.)
clause 1: The Bank, through which export proceeds of goods of an exporter is received, shall deduct tax at the rate of 1% (one percent) of total export proceeds at the time of crediting the proceeds to the account of the exporter and deposit it in the Government treasury. 1 The words, figures, marks and brackets the Customs Act, 2023 (Act No. LVII of 2023) were substituted for the words, figures, marks and brackets the Customs Act, 1969 (Act No. IV of 1969) by section 24(c) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
clause 2: Where the Board, on an application made in this behalf, gives a certificate in writing that the income of the exporter is fully exempted from tax or taxable at a reduced rate under any provision of this Act, the Bank shall make credit to the account of an assessee without any deduction of tax or with deduction of tax at a reduced rate so specified in the certificate for the period specified in the certificate and deposit the same to the Government Treasury.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 124 (Deduction of tax from any income remitted from abroad in connection with any service, revenue sharing, etc.)
clause 1: amount received by freight forwarding agent (i) in case of commission only, tax shall be collected at the rate of 10% (ten percent) on the said commission; (ii) in case of gross bill or gross bill including commission, tax shall be collected at the rate of 2.5% (two point five percent) on the said bill;] 3[
clause 2: no deduction under this section shall be made against the following remittances from abroad, namely: 1The figures, marks, brackets and words 7.5% (seven point five percent) were substituted for the figures, marks, brackets and words 10% (ten percent) by section 44(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 2 Proviso
clause 1: was substituted by section 44(b) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 3 Proviso
clause 2: was substituted by section 44(c) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.(a) the amount excluded from total income by paragraph
clause 12: ,
clause 17: ,
clause 21: and
clause 33: of Part 1 of the Sixth Schedule; (b) any donation or grant received by any educational or research institution.]
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 125 (Collection of tax on transfer, etc. of property.1[(1) Any registering officer responsible for registering any document under the provisions of clause (b), (c) or (e) of sub-section (1) of section 17 of the Registration Act, 1908 (XVI of 1908) shall not register any document unless tax is paid by the transferor of the property at such rate as may be prescribed.] (2) In the case of collection of tax under this section, the rate of tax shall not exceed the higher of the following (a) Taka 20 (twenty) lakh per katha (1.65 decimal or one point six five decimal) in case of land; (b) Taka 1 (one) thousand per square foot in respect of any structure, building, flat, apartment or floor space; or (c) 10% (ten percent) on the value mentioned in the deed.)
clause 3: Nothing in this section shall apply to the following documents, namely: (a) sale by a bank or any 2[finance company] empowered to sell under mortgage; (b) mortgage of any property to any bank or any 3[finance company] against any loan; (c) transfer of property to or from a trust or special purpose vehicle established only for the purpose of issuing sukuk approved by the Government or Bangladesh Securities and Exchange Commission.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 126 (Collection of tax from developer or real estate developer.)
clause 1: Any person responsible for the registration of a document for the transfer of any land, structure, house, flat, apartment or floor space under the provisions of the Registration Act, 1908 (XVI of 1908) shall not register the document of the transfer unless tax is paid by the developer or the real estate developer at such rate as may be prescribed. 1 Sub-section
clause 1: was substituted by section 45 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 2 The words finance company were substituted for the word financial institution by section 14(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 3 The words finance company were substituted for the word financial institution by section 14(a) of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. 4 Section 126 was substituted by section 46 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
clause 2: In case of collection of tax under this section, the rates of tax shall not exceed (a) Taka 1600 (one thousand and six hundred) per square meter in case of structure, house, flat, apartment or floor space constructed or used for residential purpose; (b) Taka 6500 (six thousand and five hundred) per square meter in case of structure, house, flat, apartment or floor space not constructed or used for residential purpose; (c) 5% (five per cent) of the deed value in respect of land appurtenant to the structure, house, flat, apartment or floor space.
clause 3: For the purpose of this section, developer or real estate developer means developer or real estate developer as referred to in the Real Estate Development and Management Act, 2010 (Act No. XLVIII of 2010) and shall also include any person who develops land for himself or others, or constructs structure, house, flat, apartment or floor space on his own land or on the land of others by performing similar activities of developer or real estate developer; or owner of land or owner of structure, house, flat, apartment or floor space when he acts like a developer or a co-developer.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 130 (Collection of tax from brick manufacturers.)
clause 1: Any person responsible for granting or renewing a licence to manufacture bricks under the Brick Manufacturing and Kiln Establishment (Control) Act, 2013 (Act No. LIX of 2013) shall not grant or renew such licence unless the application for issuance or renewal of such permit is accompanied by (a) a tax payment certificate specifying the volume and nature of the brick field or method and nature of brick manufacturing, as the case may be; and (b) a-challan of advance tax payment at the rate mentioned in the following table: Table Serial No. Type of brick field Advance tax rate (in taka)
clause 3: 1. In case of seasonal brick field volume of which does not exceed 108000 (one lakh eight thousand) cubic feet 80000 (eighty thousand) 2. In case of seasonal brick field volume of which exceeds108000 (one lakh eight thousand) cubic feet but does not exceed 124000 (one lakh twenty four thousand) cubic feet 120000 (one lakh twenty thousand) 3. In case of seasonal brick field volume of which exceeds 124000 (one lakh twenty four thousand) cubic feet 160000 (one lakh sixty thousand) 4. In case of brick field not mentioned in serial no. 1, 2 and 3 220000 (two lakh twenty thousand).
clause 2: Where in a year a licence is granted or renewed for more than one year, advance tax shall be deposited at the rate mentioned in sub-section
clause 1: within 30th June in every subsequent year or years following the year in which such licence is granted or renewed.
clause 3: Where any brick manufacturer fails to pay advance tax in accordance with sub-section
clause 2: , the amount of advance tax payable in the subsequent year shall be determined in accordance with A+ B formula, where A = the amount of advance tax not paid in the previous year or years; and 1 Section 130 was substituted by section 48 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024. B = the amount of advance tax payable under sub-section
clause 1: in the year of payment.
clause 4: For the purposes of this section (a) volume means the measurement of length, breadth and height of the inner wall of the brick field; (b) brick field means a place or structure where bricks are manufactured; (c) seasonal brick field means a brick field where handmade bricks are manufactured and burned during the dry season.
Part 6: Exemption, Deduction And Tax Holiday
Chapter I: Exemption, Reduction And Deduction
Section 133 (Collection of tax on sale through public auction.)
clause 1: Any person making sale, by public auction through sealed tender, of any goods or property belonging to the specified owner shall, before delivering the possession of the goods or the property or allowing to exercise the rights, collect tax at the rate of 10% (ten percent) of the total sale price of such goods or property.
clause 2: The rate of collection shall be 1% (one percent) in case of sale of tea by public auction.
clause 3: Deduction of tax under this section shall not apply in the case of sale of land in the form of plots by public auction.
clause 4: For the purposes of this section, (a) sale of any goods or property includes lease of any goods or property, lease of jalmahal, sand quarry, sairatmahal, lease of rights of any kind, the right to award a lease in the name of any person with the right of collection of octroi duties or other applicable taxes, called by whatever name, but does not include the sale of any plot of land; (b) specified owner means any corporation or body including the Government or any other authority, unit, the activities or main activities of which are authorized by any Act, Ordinance, order or instrument having the force of law, or any other entity or company authorized or established under any law in force in Bangladesh.