Tax Deducted at Source (TDS)/Collected at Source and other

regular requirements of Income Tax required to be

complied by a company/Branch office/Liaison
office/Bank/Non-Banking Financial Institutions/Insurance
companies/NGOs etc. (where applicable)
In light of Finance Act, 2019

Compiled By: Masum Gazi

Senior-Assistant Manager
ACNABIN Chartered Accountants
LinkedIn: Masum Gazi
Contact: +880193-5131132

A. Tax Deducted at Source (TDS)/Collected at source:

1. Deduction/collection of Tax from different sources of Income:

➢ According to section 48 of the ITO 1984, tax shall be deducted at source from sources of
income mentioned in section 49.
➢ According to section 49 “Tax payable under this Ordinance shall be deducted or
collected at source in respect of the following income, namely: - (Rate of deduction is
attached herewith in schedule-1)

✓ income classifiable under the head “Salaries”;

✓ income from discount on the real value of Bangladesh Bank bills;
✓ income derived on account of supply of goods, execution of contracts or services
rendered;
✓ income derived by the importers on account of import of goods;
✓ income derived on account of indenting commission;
✓ income derived on account of winnings from lottery or crossword puzzles, as
referred to in section 19 (13);
✓ any income chargeable under this Ordinance which is paid or payable to a non-
resident;
✓ income classifiable under the head “Income from house property;
✓ income derived on account of export of manpower;
✓ income derived on account of purchase by public auction;
✓ income derived on account of acting in films;
✓ income derived on account of shipping agency commission;
✓ income derived from commission, discount or fees payable to distributors for
distribution or marketing of manufactured goods;
✓ income derived on account of interest on saving deposits, fixed deposits or term
deposits and share of profit on term deposits;
✓ income derived on account of payment from workers’ participation fund;

1|Page
Compiled By: Masum Gazi
 ✓ income derived on account of insurance commission;
✓ income classifiable under the head “Capital gains”;
✓ income derived on account of fees for professional or technical services;
✓ income derived on account of manufacture of cigarettes manually without any
mechanical aid whatsoever;
✓ income derived from compensation against acquisition of property;
✓ income derived on account of interest on savings instruments;
✓ income derived on account of running of brick field;
✓ income derived on account of services rendered by the doctors;
✓ income derived on account of commission of letter of credit;
✓ income derived on account of survey by a surveyor of general insurance company;
✓ income derived on account of commission, remuneration or charges as a foreign
buyer’s agent;
✓ income from dividends.
✓ income derived on account of rendering certain services;
✓ income derived on account of shipping business carried on both inside and outside
Bangladesh by a resident assessee.
✓ income derived on account of business of real estate and land developer;
✓ income derived by an exporter on account of export of any commodity;
✓ income derived by a member of a stock exchange on account of transaction of shares,
debentures, mutual funds, bonds or securities;
✓ income derived on account of courier business of a non-resident;
✓ income derived on account of export cash subsidy;
✓ on account of renewal of trade license;
✓ income derived on account of freight forward agency commission;
✓ income derived on account of rental power;
✓ income derived on account of interest of Post Office Savings Bank Account;
✓ income derived on account of rental value of vacant land or plant or machinery;
✓ income derived on account of advertisement;
✓ income derived by foreign technician serving in a diamond cutting industry;
✓ income derived from transfer of securities or mutual fund units by sponsor
shareholders of a company etc.;
✓ deduction of tax from residents for any income in connection with any service
provided to any foreign person;
✓ income derived on account of international gateway service in respect of phone call;
✓ collection of tax from manufacturer of soft drink;
✓ income derived from insurance policy;
✓ deduction of tax from local letter of credit (L/C);
✓ income derived from any fees, revenue sharing, etc. from cellular mobile phone
operator;
✓ income from transfer of share of any stock exchange;
✓ income from transfer of share of company listed in any stock exchange;
✓ income derived from lease of property;
✓ deduction of tax from any sum paid by real estate developer to land owner.
✓
2. Why tax is required to be deducted/collected at source?

2|Page
Compiled By: Masum Gazi
 If tax is not deducted at source-

✓ Expense shall not be admissible in respect of which tax thereon has not been deducted
in accordance with provision of Chapter VII. [section 30]

✓ Notwithstanding anything contained in section 82C or any loss or profit computed

under the head “Income from business or profession”, the amount of disallowances
made under section 30 shall be treated separately as “Income from business or
profession” and the tax shall be payable thereon at the regular rate. [Section-30B]

✓ For acquiring any asset or constitutes any asset and tax has not been deducted
therefrom in accordance with Chapter VII, such payment shall be deemed to be the
income of the person responsible for making the payment under this Ordinance and
classifiable under the head “Income from other source” in the income year in which the
payment was made. [ section-19 (32)]

✓ Where any person fails to deduct or collect tax at source as required, deduct or collect
lesser rate or amount or after deducting or collecting fails to pay the same to the credit
of the government such person shall be deemed to be an assessee in default. [Section-57
(1)]

✓ The company shall be liable to pay interest @ 2% per month on the amount that was
required to deduct including the said amount, calculated for the period from the due
date of the deduction or collection to the date of the payment of the amount to the
Government Treasury. [Section 57 (2)]

✓ Where an assessee is in default or is deemed to be in default in making payment of tax,

the Deputy Commissioner of Taxes may direct that, in addition to the amount of tax in
arrears, a sum not exceeding that amount shall be recovered from the assessee by way
of penalty. [Section 137]

3. How deducted/collected tax shall be deposited?

The person responsible for making deduction or collection of tax under Chapter VII of the
Ordinance shall pay the amount of tax so deducted or collected to the credit of the Government-

• remitting it through an income tax challan into the Bangladesh Bank or the Sonali
Bank;

• transferring the amount electronically in the manner as specified by the Board.

4. Which code shall be used to deposit the deducted/collected amount to Government

Treasury?

Tax deducted by any company defined in section 2 (20) of the Income Tax Ordinance 1984, Co-
Operative Society, NGO shall be deposited to the entity’s own tax assessment Zone by using the
deposit code against its Taxes Zone name in TR Challan-6. List of treasury deposit code and TR
Challan format is attached herewith in Annexure-C & D.

5. When deducted/ collected tax shall be deposited to Government Treasury?

3|Page
Compiled By: Masum Gazi
 Income tax deducted/collected at source at the time of making payment to servicer
renderer/supplier has to be deposited in the following manner:

Sl. Time of deduction or Date of payment to the credit of the

collection Government

1. in case of deduction or collection within two weeks from the end of the
made in any month from July to month in which the deduction or
May of a year collection was made

2. in case of deduction or collection within seven days from the date in

made in any day from the first to which the deduction or collection was
the twentieth day of June of a made
year

3. in case of deduction or collection The next following day in which the

made in any other dates of the deduction or collection was made
month of June of a year

4. in case of deduction or collection on the same day on which the deduction

in the last two working days of or collection was made
the month of June of a year

B. Other regular requirements:

1. Monthly statement of Tax deduction/collection at source under rule 18 and 21:

➢ Every person who has deducted or collected any tax shall furnish a statement to such
income tax authority and in such manner as prescribed in corresponding rule 18 and 21
of the Income Tax Rules, 1984.

➢ A monthly statement, in the proforma as prescribed, of the tax deducted and collected
by the entity has to be submitted to the concerned Deputy Commissioner of Taxes of the
entity by 20th day of the following month.

2. Requirements for payment of Advance Income Tax:

➢ Advance tax is payable in four equal installments on the 15th day of September,
December, March and June of the financial year and an amount computed in the manner
as stated in section 65 of the Ordinance.

➢ If any assessee estimates that the tax payable by him is likely to be less than the
amount of tax as computed under section 65, he may, after giving the DCT an estimate
of the tax payable, pay such estimated amount of advance tax.

➢ If as per the estimation, no advance tax is payable for the said quarter, the assesse need
to inform concerned income tax authority accordingly with proper information.

3. Consequences for failure to pay Advance Income Tax:

4|Page
Compiled By: Masum Gazi
 ➢ Interest shall be paid under section 73 if the tax so paid (advance tax) falls short from
75% of assessed tax, at the rate of 10% on such shortfall.

➢ Failure to advance tax may involve penalty under section 125 as well depending on will
of the concerned Deputy Commissioner of Taxes which is sum not exceeding the amount
by which the tax actually paid by him falls short of the amount that should have been
paid.

4. Return of Withholding Tax under section 75A:

➢ 1st half-yearly return of withholding tax for the period from 01 July to 31 December is
required to be submitted within 31 January of next following and 2nd half yearly return
of withholding tax for the period from 01 January to 30 June is required to be submitted
within 31 July next following.

➢ However, upon requesting to the concerned Deputy Commissioner of Taxes in proper

manner, the last date of submission may be extended up to fifteen days.

➢ Failure to submit the withholding income tax returns may involve penalty under section
124 of the Income Tax Ordinance 1984 which is amounting to 10% of tax imposed on
last assessed income or five thousand taka, whichever is higher.

5. Filing of Annual Salary information:

➢ Statements of salary is required to be submitted to the concerned income tax authority

under section 108 of the Income Tax Ordinance, 1984 in the format as prescribed within
31 August each year.

➢ Failure to comply may attract penalty under section 124 of the Income Tax Ordinance,
1984 which is amounting to 10% of tax imposed on last assessed income or five
thousand taka, whichever is higher.

6. Filing of information of employee’s income tax return submission:

➢ Information regarding filing of return of employees in compliance with section 108A of

the Income Tax Ordinance, 1984 in a prescribed form is to be submitted to the
concerned income tax authority by 30th day of April of each year.

➢ As per section 30 of ITO, 1984, any payment made by way of salary to an employee for
whom the statement under section 108A was not provided shall be disallowed.

➢ Failure to comply may attract penalty under section 124 of the Income Tax Ordinance,
1984 which is amounting to 10% of tax imposed on last assessed income or five
thousand taka, whichever is higher.

7. Statement of dividend:

➢ Statements of dividend is required to be submitted to the concerned income tax

authority under section 110 of the Income Tax Ordinance, 1984 in the format as
prescribed within 31 August each year.

➢ Failure to comply may attract penalty under section 124 of the Income Tax Ordinance,
1984 amounting to five thousand taka, and in the case of a continuing default, a further

5|Page
Compiled By: Masum Gazi
 penalty of one thousand taka for every month or fraction thereof during which the
default continues.

8. Filing of statement of International Transaction:

➢ As per provision of Section 107EE of the Income Tax Ordinance, 1984, every person who
has entered into an international transaction shall furnish, along with the return of
income, a statement of international transactions in the form and manner as may be
prescribed. This return shall be submitted along with the income tax return.

➢ Where any person fails to comply with the provision of section 107EE of this Ordinance,
the Deputy Commissioner of Taxes may impose upon such person a penalty not
exceeding two per cent (2%) of the value of each international transaction entered into
by such person.

9. Report from an accountant to be furnished for Transfer pricing

➢ As per provision of Section 107F of the Income Tax Ordinance, 1984, every person who
has entered into international transactions accumulated value of which exceeds three
crore, and if the DCT requires to filing report, it is mandatory to file report from a
Chartered Accountant or a Cost Management Accountant.

➢ Where any person fails to furnish a report as required by section 107F of this Ordinance,
the Deputy Commissioner of Taxes may impose upon such person a penalty of a sum not
exceeding three lakh taka.

10. Filing of Income Tax Return:

➢ "As per provision of Section 75 of Income Tax Ordinance, 1984, person mentioned in
there are required to file Income Tax Return for every income year within the Tax Day.

➢ Vide section 75(5) of the Income Tax Ordinance, 1984 every income tax return has to be
submitted on or before Tax Day as specified in sub-section 62A of section 2.

➢ In the case of a company, the fifteenth day of the seventh month following the end of the
income year or 15th September following the end of the income year where the said
fifteenth day falls before 15th September.

➢ However, the DCT may allow an extension of four months (two months by himself and
another two-month period with the approval of Inspecting Joint Commissioner) vide
section 75(6) of the ITO-1984.

6|Page
Compiled By: Masum Gazi

Sources of income subject to deduction or collection of tax at source
Changes in light of the Finance Act, 2019 in comparison with the Finance Act, 2018
Sl. # Head of withholding with section
Salaries [section-50(1)]
1
Salaries (Government) [section 50 (1A)]
Discount of the real value of Bangladesh
2 fund or pension fund or gratuity fund or
Bank Bill (Section-50A)
Payment of remuneration to Member of
2(b)
Parliament (section-50B)
Interest or profit on securities (section-
3 bond or Treasury bill issued by the
51)
(a) execution of a contract, other than a
contract for providing or rendering a
service mentioned in any other section of
Chapter VII;
(b) supply of goods;
(c) manufacture, process or conversion;
(d) printing, packaging or binding;
(section-52, rule-16) 82C
Compiled By: Masum Gazi
Withholding authority
Person responsible for making
payment of salary.
DDO or who making / signing a bill
for Govt Employee.
Any person responsible for making Higher of maximum rate or the rate
such payment.
Person responsible for making
payment.
Any person responsible for issuing upfront basis, in other cases @ 5% of
any security approved by govt.
Specified person as mentioned in
section 52
Withholding rate/rates of taxes
In light of F.A. 2019
At the average rate applicable to the
estimated total income under the
salary head.
At the average rate applicable to the
estimated total income under the
salary head.
applicable to such amount
Average of the rates applicable to the Average of the rates applicable to the
estimated total remuneration of the
payee.
In case of islamic principles @ 5% on
profit at the time of payment or credit
whichever is earlier.
Where base amount does not exceed
taka 15 lakh-----------2%
Where base amount exceeds taka 15
lakh but does not exceed taka 50 lakh-- exceeds taka 15 lakh but does not
-------------------------3%
Where base amount exceeds taka 50
lakh but does not exceed taka 1 crore-- exceeds taka 25 lakh but does not
-----------------4%
Where base amount exceeds taka 1
crore------------------5%
7
Schedule-1
Remarks
In light of F.A. 2018
At the average rate applicable to the
estimated total income under the
salary head.
At the average rate applicable to the
estimated total income under the
salary head.
Deduction shall not be applicable, if it is
purchased by an approved superationannuation
Higher of maximum rate or the rate
applicable to such amount
recognized providend fund or worker's profit
perticipation fund
estimated total remuneration of the
payee.
In case of islamic principles @ 5% on
This provision shall not apply to the Treasury
upfront basis, in other cases @ 5% of
profit at the time of payment or
Government.
credit whichever is earlier.
Where base amount----------does not Provided that –
exceed taka 15 lakh-------2% (c) Where any imported goods on which tax has
been paid at source u/s 53 is supplied, tax at
source on the said supply shall be B-A, where-
A= The amount of tax paid u/s 53;
exceed taka 25 lakh--------------3% B= The amount of tax applicable under this
section if no tax were paid u/s 53
exceed taka 1 crore----------4% d) where any goods on which tax has been paid
at source under section 53E is supplied, tax at
exceeds taka 1 crore but does not source on the said supply shall be B-A, where-
exceed taka 5 crore------------5%
exceeds taka 5 crore but does not A = the amount of tax paid under section 53E,
exceed taka 10 crore--6% B = the amount of tax applicable under this
section if no tax were paid under section 53E.
exceeds taka 10 crore---7%

Sl. # Head of withholding with section
4 (b) Where the payment exceeds taka 2 (b) Where the payment exceeds taka
The rate of deduction from the classes of
person shall be
Royalties, franchise, or the fee for using
license, brand name, patent, invention,
formula, process, method, design,
pattern, know-how, copyright,
5 higher if the payee does not have a twelve-digit
trademark, trade name, literary or
musical or artistic composition, survey,
study, forecast, estimate, customer list or
any other intangibles [section-52A] 82C
Deduction from the payment of certain
services.- (section-
6 Annexure-A
52AA) Advisory or consultancy services
are 82C items
C&F Agency
7 Commissioner of Customs.
Commission (Section 52AAA) 82C
Compiled By: Masum Gazi
Withholding rate/rates of taxes
Withholding authority
In light of F.A. 2019
In case of oil supplied by oil
marketing companies-
(a) Where the payment does not
exceed taka 2 lakh-------------- Nil
lakh--0.60%
In case of oil supplied by dealer or
agent (excluding petrol pump
station) of oil marketing companies,
on any amount-------1%
In case of supply of oil by any
company engaged in oil refinery, on
Specified person as mentioned in any amount- 3%
section 52
In case of company engaged in
gas transmission, on any amount--3%
In case of company engaged in
gas distribution, on any amount-------- gas distribution, on any amount-------
3%
In case of an industrial undertaking
engaged in producing cement, iron or
iron products except MS Billets----------
------3%
In case of an industrial undertaking
engaged in the production of MS
Billets--------------0.05%
where base amount does not exceed
taka 25 lakh-------------------------10%
Any person responsible for
making such payment Where base amount exceed taka 25
lakh--------------12%
Specified person as mentioned in
section 52
10% on commission amount
8
Schedule-1
Remarks
In light of F.A. 2018
In case of oil supplied by oil
marketing companies-
(a) Where the payment does not
exceed taka 2 lakh-------------- Nil
2 lakh--0.60%
In case of oil supplied by dealer or
agent (excluding petrol pump
station) of oil marketing companies,
on any amount-------1%
In case of supply of oil by any
company engaged in oil refinery, on
any amount- 3%
In case of company engaged in
gas transmission, on any amount------
-- 3%
In case of company engaged in
- 3%
where base amount does not exceed
taka 25 lakh----------10%
the rate of tax shall be fifty percent (50%)
Where base amount exceed taka 25
Taxpayer’s Identification Number.
lakh--------------12%
Annexure-A
10% on commission amount

Sl. # Head of withholding with section
Manufacturer of non mechanical
8 banderols to any manufacturer of 10% of the value of banderols
Cigarettes (bidi)(section-52B)-82C
Compensation against acquisition of
9
property (Section-52C) 82C
Interest on saving instruments (section-
10
52D)-82C
Deduction at source from payment to a
11 beneficiary of workers’ participation
fund.- (section-52DD)
Collection of tax from Brick
12
manufacturers (section-52F)
Commission of letter of credit (section
13 52I)
Collection of tax from travel Agent.-
14
(Section-52JJ)-82C
Compiled By: Masum Gazi
Withholding authority
Any person responsible for selling
cigarettes.
Any person responsible for
payment of such compensation.
Any person responsible for making
such payment.
Any person responsible for making
such payment.
Any person responsible at the of
permission or renewal
Any person responsible for
opening letter of credit.
Any person responsible for paying
on behalf of airlines as commission
or discount or incentive bonus or
any other benefits for selling
tickets or caring cargo to a resident
Withholding rate/rates of taxes
In light of F.A. 2019
(a) 2% at City Corporation Area,
Paurashava or Cantonment board;
(b) 1% at outside City Corporation
Area, Paurashava or Cantonment
board;
10%
5%
a. Tk. 45,000 for 1 section of brick
field
b. Tk. 70,000 for 1.5 section
c. Tk. 90,000 for 2 section
d. Tk. 150,000 for automatic machine
of brick field
5% on commission
See section 52JJ
9
Schedule-1
Remarks
In light of F.A. 2018
10% of the value of banderols
(a) 2% at City Corporation Area,
Paurashava or Cantonment board;
(b) 1% at outside City Corporation
Area, Paurashava or Cantonment
board;
5%
5%
a. Tk. 45,000 for 1 section of brick
field
b. Tk. 70,000 for 1.5 section
c. Tk. 90,000 for 2 section
d. Tk. 150,000 for automatic machine
of brick field
5% on commission
See section 52JJ

Sl. # Head of withholding with section
Collection of tax by City Corporation or
15 Paurashava at the time of renewal of
trade license.- (Sec.-52K)
Freight forward agency commission
16
(section-52M)
Collection of tax on account of rental
17
power.(Sec 52N)-82C
Foreign technician serving in diamond
18
cutting industries (section-52O) 82C
Services from convention hall, conference Specified person mentioned in
19
centre etc. (section-52P)
Any income in connection with any
20 service provided to any foreign person
(section-52Q)
International gateway service in respect
21
of Phone call (section-52R) -82C
Deduction of tax from any payment in
22 excess of premium paid on life insurance Insurance company
policy(section-52T)
Deduction from payment on account of
23
local L/C (section-52U)
Compiled By: Masum Gazi
Withholding rate/rates of taxes
Withholding authority
In light of F.A. 2019
(a) Tk. 3000 in Dhaka North & South
City Corporation or Chittagong City
Corporation;
(b) Tk. 2000 in any city corporation,
Any person responsible for
other than Dhaka and Chittagong city
renewal of trade license
corporation;
(c) Tk. 1000 in any paurashava at any
district headquarter;
(d)Tk. 500 in any other paurashava.
Any person responsible for making
15%
such payment.
BPDB 6%
Employer 5%
5%
section 52 (2)
Bank/financial institution 10%
See section 52R See section 52R
5% on excess amount of premium
3% at the time of extending any credit
facility for the purpose of trading, or
of reselling after process or
conversion
Bank/ Financial institution
1% At the time of extending any credit
facility to a distributor under a
financing arrangement against the
invoice or sale of goods.
10
Schedule-1
Remarks
In light of F.A. 2018
(a) Tk. 500 in Dhaka North & South
City Corporation or Chittagong City
Corporation;
(b) Tk. 300 in any city corporation,
other than Dhaka and Chittagong city
corporation;
(c) Tk. 300 in any paurashava at any
district headquarter;
(d)Tk. 100 in any other paurashava.
15%
6%
5%
No deduction shall be made by a company when
5% such amount is paid directly to the
government.
No deduction on remittance from abroad for
10% sales of software & services of a resident
under paragraph 33 of Part - A of 6th Schedule.
See section 52R
Provided that no deduction of tax shall be made
5% on excess amount of premium
in case of death of such policy holder.
3% at the time of extending any
credit facility for the purpose of
trading, or of reselling after process
or conversion
Nothing in this section shall limit the
1% At the time of extending any applicability of section 52: payment to
credit facility to a distributor under a contractor.
financing arrangement against the
invoice or sale of goods.
 Schedule-1

Withholding rate/rates of taxes

Sl. # Head of withholding with section
Deduction from payment by cellular
24
mobile phone operator (section-52V)
Withholding authority Remarks
In light of F.A. 2019 In light of F.A. 2018
On account of any revenue sharing or any
Principal Officer of cellular mobile 10% at the time of credit or payment 10% at the time of credit or payment
license fees or any other fees or charges to the
phone operator company whichever is earlier. whichever is earlier.
regulatory.

(a) 5% (general rate) (a) 5% (general rate)

(b) 2% on certain imported goods (c) (b) 2% on certain imported goods
25 Import (section-53)-82C The Commissioner of Customs Please see Rule 17 for product list
Tk. 800 per ton in case of import of (c) Tk. 800 per ton in case of import
certain items of certain items

Explanation.- For the purpose of this section, "

rent" means any payment, by whatever name
called, under any lease, tenancy or any other
Specified person under section 52
26 House property (section-53A, rule-17B) 5% on gross rent 5% on gross rent agreement or arrangement for the use of any
(2)
house property or hotel accomodation including
any furniture, fittings and the land appurtenant
thereto.
5% of total freight received or 5% of total freight received or
receivable in or out of Bangladesh. receivable in or out of Bangladesh.
Commissioner of Customs or any Tax will not deduct having a certificate is
Shipping business of a resident (section- 3% of total freight received or 3% of total freight received or
27 other authority duly authorized. received in prescribed manner from Deputy
53AA) 82C receivable from services rendered receivable from services rendered
Commissioner of Taxes concerned
between two or more foreign between two or more foreign
countries. countries.
Export of manpower (section-53B, rule- The Director General, Employment
28 10% 10%
17C) 82C & Training.
As per SRO. No. 265/AIN/Income Tax/2018
TDS has been @ 0.60% on export proceeds
(other than Jute products). This SRO was active
till to 30 June 2019. Subsequently, TDS rate
1% of the total export proceeds of all
Export of knit-wear & woven garments, 0.60% has been replaced as 0.25% by SRO No.
1% of the total export proceeds of all goods (other than Jute Goods)
terry towel, jute goods, frozen food, 02/2019. Further, NBR has not issued any SRO
29 Bank goods
vegetables, leather goods, packed food in this regard.
Jute goods 0.60%of the total export proceeds of
(section-53BB) 82C
Jute goods
For Jute products, TDS had been 0.60% till to 30
June 2019 by S.R.O. No. 207/Law/Income
Tax/2016. Further, NBR has not issued any SRO
in this regard.

Member of stock exchanges (section- The Chief Executive Officer of stock

30 0.10% 0.10% .
53BBB) 82C exchange.

As per SRO. No. 265/AIN/Income Tax/2018

Export of any goods except knit-wear & TDS has been @ 0.60% on export proceeds
woven garments, terry towel, jute goods, 1% of the total export proceeds of all 1% of the total export proceeds of all (other than Jute products). This SRO was active
31 frozen food, vegetables, leather goods, Bank goods except goods mentioned in goods except goods mentioned in till to 30 June 2019. Subsequently, TDS rate
packed food (section-53BBBB)- section 52BB section 52BB 0.60% has been replaced as 0.25% by SRO No.
82C 02/2019. Further, NBR has not issued any SRO
in this regard.

Compiled By: Masum Gazi

11

Sl. # Head of withholding with section
Goods or property sold by public auction
32
(section-53C, rule-17D)-82C
Deduction or collection of tax at source
33 from courier business of a non- resident
(Sec. 53CCC.)-82C
Payment to purchase film, drama, radio-
34 (a) TV programed actors- actresses (section-
53D)
Payment to actors, actress, singers,
34 (b) directors of film, drama, advertise and
any other programme (section-53D)
Deduction of tax at source from export
35
cash subsidy. (section-53DDD)-82C
Commission, discount or fee [section-53E
36 (a)
(1) & (2)]-82C
Commission, discount or fee [section-53E Any company other than oil
36 (b)
(3)]-82C
Commission or remuneration paid to
37 agent of foreign buyer (section-53EE) -
82C
Interest on saving deposits & fixed
38 (a)
deposits [section-53F(1) -82C ]
Compiled By: Masum Gazi
Withholding rate/rates of taxes
Withholding authority
In light of F.A. 2019
Any person making 5% of sale price
Any person being a company
working as local agent of a non- 15% on the amount of service charge 15% on the amount of service charge
resident courier company.
Person responsible to purchase
10%
film, drama, radio-TV programme
The person producing the film 10%
Bank 10%
(1) 10% on Commission, discount,
Any person being a corporation, fees, incentive, performance bonus
body including a company making (2) 1.5% on payment against
such payment. promotion, distribution or marketing
of goods of a company
(3) 5%=selling price to Distributor
(b) Sales to distributor at a price
lower than the retail price shall collect
tax from such distributor at the rate of
five percent (5%) on the amount
marketing company
equal to B x C
where B= the selling price of the
company to the distributor or the
other person; C = 5%:]
Bank 10%
a. 10% if furnishes e-TIN or balance
does not exceed Tk. 100,000 at any
time in a year.
Any person responsible for making
such payment. b. 15% if fail to furnishes e- TIN.
c. 10% for some other specified
person
12
Schedule-1
Remarks
In light of F.A. 2018
5% of sale price
10%
No tax deducted if total payment does not
10%
exceed tk. 10,000.
3%
(1) 10% on Commission, discount,
fees, incentive, performance bonus
(2) 1.5% on payment against
promotion, distribution or
marketing of goods of a company
(3) 5%=selling price to Distributor
(b) Sales to distributor at a price
lower than the retail price shall
collect tax from such distributor at
the rate of five percent (5%) on the
amount equal to B x C
where B= the selling price of the
company to the distributor or the
other person; C = 5%:]
10%
a. 10% if furnishes e-TIN or balance
does not exceed Tk. 100,000 at any
This shall not apply on the amount of interest
time in a year.
of share of profit arising out of any deposit
pension scheme sponsored by the government
b. 15% if fail to furnishes e- TIN.
or by a schedule bank with prior approval of
the Government.
c. 10% for some other specified
person
 Schedule-1

Withholding rate/rates of taxes

Sl. # Head of withholding with section Withholding authority Remarks
In light of F.A. 2019 In light of F.A. 2018

Interest on saving deposits & fixed

Any person responsible for making
38 (b) deposits or any term deposit by or in the 5% 5%
such payment.
name of Fund (section-53F(2)-82C

Any person responsible for

Real state or land development business
registering any document for
39 (section-53FF) -82C See section 53FF See section 53FF
transfer or any land or any
building or apartment.

Deduction at source from insurance

40 Insurance company 5% 5%
commission.- (Sec-53G)-82C

Deduction at source from fees, etc. of

41 surveyors of general insurance company.- Insurance company 15% 15%
(Sec-53GG)-82C
Any person responsible for
Transfer of property
42 registering any document of a See section 53H See section 53H
(section- 53H) 82C
person.(Registering Office)
Any Registering Officer
responsibel for registering any
document in relation to any lease
granted by Rajuk, CDA, RDA, KDA,
Collection of tax from lease of property
43 and NHA or any person being an 4% 4%
for at least 10 years (section 53HH)
individual, a firm, an association of
persons, a Hindu undivided family,
a company or any artificial
juridical person.

Compiled By: Masum Gazi

13

Sl. # Head of withholding with section
Interest on deposit of post office & saving
44 bank account
(section-53I)
Rental value of vacant land or plant or
45 machinery (section-53J,rule-
17BB)
Advertisement bill of newspaper or
magazine or private television channel,
46 private radio station, or any web site or
any person on of advertisement etc
(section-53K)
Collection of tax from transfer of shares
or mutual fund units by the sponsor
47 shareholders of a company listed on
stock exchange (section-53M) 82C
Collection of tax from transfer of share
48 of shareholder of stock exchange (53N)-
82C
Deduction of tax from any sum paid by
Any person engaged in real estate
49 real estate developer to land owner.-[U/S
or land development business
53P] 82C
50 Dividends (Section 54)
51 Income from lottery (Section 55) 82C
52 Income of non-residents (Section 56)
Compiled By: Masum Gazi
Withholding authority
Any person responsible for making
such payment.
Specified person under section 52
(2)
The Government or any authority,
corporation or body including its
units, the activities or any NGO,
any university or medical college,
dental college, engineering college
responsible for making such
payment.
Securities & Exchange Commission
Principal Officer
The principal officer of the
company
Any person responsible for making
such payment
Specified person as mentioned in
section 52 (2)
Schedule-1
Withholding rate/rates of taxes
Remarks
In light of F.A. 2019 In light of F.A. 2018
10% 10%
5% of the rent 5% of the rent
4% 4%
5% 5%
15% on any gain 15% on any gain
Any sum to the land owner on account of
signing money, subsistence money, house rent
or in any other form called by whatever name
15% 15% for the purpose of development of the land of
such owner in accordance with any power of
attorney or any agreement or any written
contract,
Resident/ non-rsident Bangladeshi Resident/ non-rsident Bangladeshi
company--------20% company--------20%
Provision of this section shall not apply if such
dividend is distributed to a company and if such
Resident/ non resident Bangladeshi Resident/ non resident Bangladeshi
dividend enjoy tax exemption under the
person other than company person other than company
provision of paragraph 60 of Part A of the Sixth
Schedule.
Having 12 digits TIN------------10% Having 12 digits TIN------------10%
Without 12 digits TIN---------15% Without 12 digits TIN---------15%
20% 20%
Annexure-B Annexure-B
14
Annexure-A

Deduction from the payment of certain services [Section 52AA]

(1) Where any payment is to be made by a specified person to a resident on account of a service
as mentioned in this section, the person responsible for making the payment shall, at the time
of making such payment, deduct income tax at the rate specified in the Table below: -

Sl. Description of service and payment Rate of deduction of tax

No
Where base Where base
amount does amount
not exceed exceeds Tk.
Tk. 25 lakh 25 lakh

1 Advisory or consultancy service 10% 12%

Professional service, technical services fee, or technical

2 10% 12%
assistance fee

i. Catering service;
ii. Cleaning Service;
iii. Collection and recovery service;
iv. Private security service;
v. Manpower supply service;
vi. Creative media service;

3 vii. Public relations service;

viii. Event management service;
ix. Training, workshop, etc. organization and
management service;
x. Courier service
xi. Packing and shifting service
10% 12%
xii. Any other service of similar nature
1.5% 2%

Media buying agency service

10% 12%
4 (a) on commission 0.5% 0.65%
(b) on gross amount

5 Indenting commission 6% 8%

6 Meeting fees, training fees or honorarium 10% 12%

Mobile network operator, technical support service

7 provider or service delivery agents engaged in mobile 10% 12%
banking operations

8 Credit rating agency 10% 12%

15 | P a g e
Compiled by: Masum Gazi
 9 Motor garage or workshop 6% 8%

10 Private container port or dockyard service 6% 8%

11 Shipping agency commission 6% 8%

12 Stevedoring/berth operation commission 10% 12%

13 Transport service, car rental or ride sharing service 3% 4%

13A Wheeling charge for electricity transmission 4% 5%

Any other service which is not mentioned in Chapter VII

14 of this Ordinance and is not a service provided by any 10% 12%
bank, insurance or financial institutions

Provided that if the amount for services mentioned in SL No. 3 and 4 of the Table shows
both commission or fee and gross bill amount tax shall be the higher amount between (i)
and (ii) where-
(i) tax calculated on commission or fee applying the relevant rate in the table; and
(ii) B x C x D, where-
B = Gross bill amount
C = 10% for Sl. 3 and 2.5% for Sl. 4, and
D = rate of tax applicable on commission or fee:
Provided further that 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 making the
payment:
Provided further that where the Board, on an application made in this behalf, gives
certificate in writing that the person rendering such service is otherwise exempted from tax
under any provision of this Ordinance, the payment referred to in this section shall be made
without any deduction or with deduction at a lesser rate for that income year.
(2) In this section-
(a)“specified person” shall have the same meaning as in clause (a) of sub-section (2) of
section 52;
(b)“contract” includes a sub-contract, any subsequent contract, an agreement or an
arrangement, whether written or not;
(c)“base amount” means the higher of the-
(i) contract value; or
(ii) bill or invoice amount ; or
(iii) payment;
(d) “payment” includes a transfer, a credit or an adjustment of payment;
(e) “professional services” means-
(i) services rendered by a doctor;

16 | P a g e
Compiled by: Masum Gazi
 (ii) services rendered by a person carrying on any profession or any other services
applying professional knowledge.

Annexure-B
Deduction from income of non-residents [ Section 56]

(1) Subject to the provisions of sub-section (2), the specified person or any other person
responsible for making payment to a non-resident of any amount which constitutes the income of
such non-resident chargeable to tax under this Ordinance shall, unless such person is himself liable
to pay tax thereon as agent, at the time of making such payment, deduct tax on the amount so
payable at the rate, specified below:

Rate of deduction
SL. No Description of services or payments
of tax

1 Advisory or consultancy service 20%

2 Pre-shipment inspection service 20%

Professional service, technical services, technical know-how or

3 20%
technical assistance

Architecture, interior design or landscape design, fashion design or

4 20%
process design

5 Certification, rating etc. 20%

Charge or rent for satellite, airtime or frequency, rent for channel

6 20%
broadcast

7 Legal service 20%

8 Management service including even management 20%

9 Commission 20%

10 Royalty, license fee or payments related to intangibles 20%

11 Interest 20%

12 Advertisement broadcasting 20%

13 Advertisement making or Digital marketing 15%

Air transport or water transport not being the carrying services

14 7.5%
mentioned in sections 102 or 103A

Contractor or sub-contractor of manufacturing, process or

15 7.5%
conversion

16 Supplier 7.5%

17 | P a g e
Compiled by: Masum Gazi
 17 Capital gain 15%

18 Insurance premium 10%

19 Rental of machinery, equipment etc. 15%

Dividend-
20 (a) company—- 20%
(b) any other person, not being a company— 30%

21 Artist, singer or player 30%

22 Salary or remuneration 30%

23 Exploration or drilling in petroleum operations 5.25%

24 Survey for coal, oil or gas exploration 5.25%

24A Fees, etc. of surveyors of general insurance company 20%

Any service for making connectivity between oil or gas field and its
25 5.25%
export point

26 Any payments against any services not mentioned above 20%

27 Any other payments 30%

Provided that when any capital gain arises from the transfer of any share of a company, the
person or the authority, as the case may be, responsible for effecting the transfer of shares shall
not give any effect in respect of such transfer if tax on such capital gain has not been paid.

“(2) where, in respect of any payment under this section, the Board, on an application made in
this behalf, is satisfied that due to tax treaty or any other reason the non-resident is not be liable
to pay any tax in Bangladesh, or is liable to pay tax at a reduced rate in Bangladesh, the Board
may issue a certificate within thirty days from the date of receipt of such application accompanied
by all the documents as required by the Board to the effect that the payment referred to in sub-
section (1) shall be made without any deduction or, in applicable cases, with a deduction at the
reduced rate as mentioned in the certificate.’

(2A) 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 subject of refund or
set off or an adjustment against a demand.] Ins by F.A. 2018
(3) In this section,-
(i) “specified person” shall have the same meaning as in clause (a) of sub-section (2) of
section 52 of this Ordinance;

(ii) “payment” includes a transfer, a credit or an adjustment of payment.

Annexure-C
18 | P a g e
Compiled by: Masum Gazi
 Annexure-C Tax Payment Code
Income tax-other than
Name of the Zone Income tax-Companies
Company

Taxes Zone-1, Dhaka 1-1141-0001-0101 1-1141-0001-0111

Taxes Zone-2, Dhaka 1-1141-0005-0101 1-1141-0005-0111

Taxes Zone-3, Dhaka 1-1141-0010-0101 1-1141-0010-0111

Taxes Zone-4, Dhaka 1-1141-0015-0101 1-1141-0015-0111

Taxes Zone-5, Dhaka 1-1141-0020-0101 1-1141-0020-0111

Taxes Zone-6, Dhaka 1-1141-0025-0101 1-1141-0025-0111

Taxes Zone-7, Dhaka 1-1141-0030-0101 1-1141-0030-0111

Taxes Zone-8, Dhaka 1-1141-0035-0101 1-1141-0035-0111

Taxes Zone-9, Dhaka 1-1141-0080-0101 1-1141-0080-0111

Taxes Zone-10, Dhaka 1-1141-0085-0101 1-1141-0085-0111

Taxes Zone-11, Dhaka 1-1141-0090-0101 1-1141-0090-0111

Taxes Zone-12, Dhaka 1-1141-0095-0101 1-1141-0095-0111

Taxes Zone-13, Dhaka 1-1141-0100-0101 1-1141-0100-0111

Taxes Zone-14, Dhaka 1-1141-0105-0101 1-1141-0105-0111

Taxes Zone-15, Dhaka 1-1141-0110-0101 1-1141-0110-0111

Taxes Zone-1, Chattogram 1-1141-0040-0101 1-1141-0040-0111

Taxes Zone-2, Chattogram 1-1141-0045-0101 1-1141-0045-0111

Taxes Zone-3, Chattogram 1-1141-0050-0101 1-1141-0050-0111

Taxes Zone-4, Chattogram 1-1141-0135-0101 1-1141-0135-0111

Taxes Zone-Khulna 1-1141-0055-0101 1-1141-0055-0111

Taxes Zone-Rajshahi 1-1141-0060-0101 1-1141-0060-0111

Taxes Zone-Rangpur 1-1141-0065-0101 1-1141-0065-0111

Taxes Zone-Sylhet 1-1141-0070-0101 1-1141-0070-0111

Taxes Zone-Barishal 1-1141-0075-0101 1-1141-0075-0111

Taxes Zone-Gazipur 1-1141-0120-0101 1-1141-0120-0111

Taxes Zone-Narayanganj 1-1141-0115-0101 1-1141-0115-0111

Taxes Zone-Bogura 1-1141-0140-0101 1-1141-0140-0111

Taxes Zone-Cumilla 1-1141-0130-0101 1-1141-0130-0111

Taxes Zone-Mymensingh 1-1141-0125-0101 1-1141-0125-0111

Large Taxpayer Unit 1-1145-0010-0101 1-1145-0010-0111

Central Survey Zone 1-1145-0005-0101 1-1145-0005-0111

19 | P a g e
Compiled by: Masum Gazi
 Annexure-D

The Deputy Commissioner of Taxes 1g (g~j) Kwc 2q Kwc 3q Kwc

Taxes Circle-
Taxes Zone - 15
Dhaka
wU Avi dig bs 6 ( Gm, Avi 37 `ªóe¨)
√ Pvjvb bs ------------------- ZvwiL : 01-08-19
evsjv‡`k e¨vsK/†mvbvjx e¨vs‡Ki ............................... †Rjvi .............................. kvLvq UvKv Rgv †`Iqvi Pvjvb
†KvW bs 1 1 1 4 1 0 1 1 0 0 1 1 1

Rgv cÖ`vbKvix KZ„©K c~iY Kwi‡Z nB‡e

UvKvi AsK wefv‡Mi bvg Ges Pvjv‡bi
‡h e¨w³i/cÖwZôv‡bi c¶ nB‡Z UvKv c„ôvsKbKvix Kg©KZ©vi bvg,
hvnvi gvidZ cÖ`Ë nBj Zvnvi bvg I wK eve` Rgv †`Iqv nBj Zvnvi gy`ªv I †bv‡Ui weeiY/WªvdU, †c-
cÖ`Ë nBj Zvnvi bvg, c`ex I c`ex I `ßi|*
wVKvbv| weeiY AW©vi I †P‡Ki weeiY|
wVKvbv|
UvKv cqmv

Mr. ABC Mr. Kamal Hossain Tax Deducted at Source - 00

under section 53A against Cash
Company Name
Office rent

42 Gulshan Avenue, Gulshan-1,

Dhaka-1212.

‡gvU UvKv - -
UvKv (K_vq) Taka six thousand six hundred and sixty only
UvKv cvIqv †Mj
g¨v‡bRvi
ZvwiLt- 01-08-19 evsjv‡`k e¨vsK/†mvbvjx e¨vsK

†bvU t 1| mswk­ó `߇ii mwnZ †hvMv‡hvM Kwiqv mwVK †KvW b¤^i Rvwbqv jB‡eb|
2| * †h mKj †¶‡Î Kg©KZ©v KZ©„K c„ôvsKb cª‡qvRb, †m mKj ‡¶‡Î cÖ‡hvR¨ nB‡e|
evtmtgy t- 2002/03-10007GdÑ1,00,00,000 Kwc, 2002|

20
Direction:
• Green color represents provision changes by the
Finance Act, 2019

If you have any query relating to tax or have required tax related
services you can communicate with me by e-mail at
masumgazi613@gmail.com or by mobile at +8801935-131132.

Thank You

21