THE INCOME TAX ORDINANCE, 1984, PART 7

CHAPTER VII

PAYMENT OF TAX BEFORE ASSESSMENT

Deduction at source and advance payment of tax.- (1) Notwithstanding that regular assessment in respect of any income is to be made later in any assessment year, and without prejudice to the charge and recovery of tax under this Ordinance after such assessment, the tax on income shall be payable by deduction or collection at source, or by way of advance payment, in accordance with the provisions of this Chapter.

(2) any sum deducted or collected, or paid by way of advance payment, in accordance with the provisions of this Chapter, shall, for the purpose of computing the income of an assessee, be deemed to be the income received, and be treated as payment of tax in due time, by the assessee.

Income subject to deduction at source.- (1) Tax payable under this Ordinance shall be deducted or collected at source in respect of the following income, namely :-

income classifiable under the head “Salaries”;

¹[(aa) income from discount on the real value of Bangladesh Bank bills;

income classifiable under the head “Interest on securities”; ²[(bb)***]
income derived on account of supply of goods, execution of

contracts or services rendered ;

³[(d) 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);

by F.A. 2001

Ins. by F.O. 1985 subsequently omitted by Ordinance No. XXXVI of1985, dated 20/07/1985 w. e. f01/07/1985 ³ Subs. by F.A. 2012

any income chargeable under this Ordinance which is paid or payable to a non-resident;

¹[(h) income classifiable under the head “Income from house property” ;

income derived on account of export of manpower ;

²[(ii) income derived on account of travel agency commission or incentive bonus;]

(j) income derived on account of purchase by public auction ;

(k) income derived on account of acting in films ;

³[(l)***]

(m) income derived on account of shipping agency commission ⁴[***].] ⁵[(n) income derived from commission, discount or fees payable to distributors for distribution or marketing of manufactured goods;]

⁶[(o) income derived on account of interest on saving deposits, fixed deposits or term deposits and share of profit on term deposits;

(p) income derived on account of insurance commission ;

(q) income classifiable under the head “Capital gains”;]

⁷[(r) income derived on account of fees for professional or technical services;

(s) income derived on account of manufacture of cigarettes manually without any mechanical aid whatsoever;

¹ Clause (h), (i), (j), (k), (l) and (m) ins. by F.A. 1988 ²Ins. by F.A. 2014

Omitted by F.A. 1993 ⁴Omitted by F.A. 1999

Clause (n) ins. by F.A. 1989 with the word “and” added after clause (m), and subs. by F.A. 2001
Clause (o), (p) and (q) ins. by F.A. 1991. of which clause (o) & (p) made applicable from the asstt. year 1990-91

Clause (r), (s), (t), (u), (v), (w), (x), (y) and (z) ins. by F.A. 1999

(t) income derived from compensation against acquisition of property;

(u) income derived on account of interest on savings instruments; ¹[(v)***]

(w) income derived on account of running of brick field;

income derived on account of services rendered by the doctors;

²[(y)***]

(z) income derived on account of commission of letter of credit;]

³[(za) income derived on account of survey by a surveyor of general insurance company

⁴[(zb)***]

(zc) income derived on account of commission, remuneration or charges as a foreign buyer’s agent;]

⁵[(zd) income from dividends;

⁶[(ze) income derived on account of rendering certain services ⁷[;

⁸[(zf) income derived on account of shipping business carried on both inside and outside Bangladesh by a resident assessee];

(zg) income derived on account of business of real estate and land developer; ^[1]^{[2] [3] [4] [5] [6] [7] [8]}

(zh) income derived by an exporter on account of export of ¹[any commodity;

(zi) income derived by a member of a stock exchange on account of transaction of shares, debentures, mutual funds, bonds or securities;]

¹[(zj) income derived on account of courier business of a nonresident;]

²[(zk***)]

³[(zkk) income derived on account of export cash subsidy;]

⁴[(zl)***]

⁵[(zm) on account of ⁶[***]renewal of trade licence;

⁷[(zn)***]

(zo) income derived on account of freight forward agency commission ⁸[;

(zp) income derived on account of rental power;

(zq) income derived on account of interest of Post Office Savings Bank Account;

(zr) income derived on account of rental value of vacant land or plant or machinery;

(zs) income derived on account of advertisement ^[9]^{[10] [11] [12] [13] [14] [15] [16] [17]}[;

(zt) income derived by foreign technician serving in a diamond cutting industry ¹[;

² [(zu) ***]

(zv) income derived from transfer of securities or mutual fund units by sponsor shareholders of a company etc ³[;

(zw) deduction of tax for services from convention hall, conference centre, room or, as the case may be, hall etc.;

(zx) deduction of tax from residents for any income in connection with any service provided to any foreign person ⁴[;

(zy) income derived on account of international gateway service in respect of phone call;]

⁵[(zz) collection of tax from manufacturer of soft drink] ⁶[;

(zza) income derived from insurance policy;

(zzb) deduction of tax from local letter of credit (L/C);

(zzc) income derived from any fees, revenue sharing, etc. from cellular mobile phone operator;

(zzd) income from transfer of share of any stock exchange;

(zze) income from transfer of share of company listed in any stock exchange;

(zzf) income derived from lease of property.]

Tax to be deducted at source under sub-section (1) in respect of any income shall be deducted in accordance with the provisions of this Chapter by the person responsible for making payment which constitutes the income of the payee.

Subs. “semi-colon” for “full-stop” and ins. new clauses (zu), and (zv) by F.A. 2010 Omitted by F.A. 2013

Subs. “semi-colon” for “full-stop” and ins. new clauses (zw), and (zx) by F.A. 2011 Subs. “semi-colon” for “full-stop” and ins. new clauses (zy) by F.A. 2012 Subs. for “collection of tax from manufacturer of soft drink” by F.A. 2013 Ins.by F.A.2014

For the purpose of this Chapter, “person responsible for making payment”, with its grammatical variations and cognate expressions, means-
in the case of payments constituting income classifiable under the head “Salaries,” ^[18][***] the employer himself or, if the employer is a local authority, company or institution, such authority, company or institution, including the principal officer thereof;
in the case of payments constituting income classifiable under the head “Interest on securities,” not being payment made by or on behalf of the Government, the authority, company or other institution issuing the security or the principal officer thereof ; and
in the case of payment of any other sum which constitutes an income of the payee chargeable to tax under this Ordinance, the payer himself, or if the payer is a company or other institution, such company or institution including the principal officer thereof.

Deduction at source from salaries.- (1) The person responsible for making any payment which constitutes income of the payee classifiable under the head “Salaries” shall, at the time of making such payment, deduct tax on the amount so payable at a rate representing the average of the rates applicable to the estimated total income of the payee under that head.

(2) At the time of making any deduction under sub-section (1), the amount to be deducted may be increased or decreased for the purpose of adjusting any excess or deficiency arising out of any previous deductions or failure to make deductions.

¹[(2A) The payment under sub-section (1) shall be made by such person with or without deduction of tax in accordance with a certificate, issued by the Deputy Commissioner of Taxes after being satisfied on an application made by the payee in this behalf, where such certificate specifies that-

no tax shall be deducted from the payee in a case where the tax payable on the total income of the payee has already been dedcuted or collected from such payee under this Ordinance for the rest of the income year; or
tax shall be deducted at a lesser rate for the rest of the income year in a case where the payee may, after adjusting the tax already deducted or collected from such payee under this Ordinance, be liable to pay a lesser sum of tax than the tax chargeable on his total income.]

(3) For the purposes of deduction under sub-section (1) in respect of salary payable in a foreign currency, the value in taka of such salary shall be calculated at such rate as the Board may prescribe.

²[50A. Deduction at source from discount of the real value of Bangladesh Bank bills.- Any person responsible for paying any amount on account of discount on the real value of Bangladesh Bank bills shall, at the time of making such payment, deduct tax at the maximum rate on the amount so payable or the rate applicable to such amount, whichever is greater. ^[19]^[20]

¹ [Provided that no tax shall be deducted under this section where the said bill is purchased by an approved superannuation fund or pension fund or gratuity fund or a recognized providend fund, or a workers’ profit participation fund]

²[50B. Deduction of tax from payment of remuneration to Members of Parliament.- Any person responsible for making any payment as remuneration to a Member of Parliament shall, at the time of making such payment, deduct tax on the amount so payable at a rate representing the average of the rates applicable to the estimated total remuneration of the payee for that income year.]

Deduction at source from interest on securities.- ³[(1) In the case of the security of the Government, or security approved by the Government, unless the Government otherwise directs, the person responsible for issuing any security, income of which is classifiable under the head “Interest on securities”, shall collect income tax at the rate of ⁴[ five percent (5%)] upfront on interest or discount, receivable on maturity, from the purchaser of the securities] ⁵[.]

⁶[***Proviso]

⁷[(2)***]

⁸[(3)*** ]

⁹[(51A)***] ^[^21]^{[22] [23] [24] [25] [26] [27] [28] [29]}

Deduction from payment to contractors, etc.- (1) Where any payment is to be made, whether in full or in part, or by way of advance, on account of indenting commission ¹[***]or shipping agency commission or supply of goods or ²[execution of contract or sub-contract] ³[***]⁴[***] to any such person or class of persons as may be prescribed, the person responsible for making the payment shall, at the time of making such payment deduct tax on the amount so payable at such rate as may be prescribed.

Any amount deducted under sub-section (1) shall be deemed to be an advance payment of tax by the payee and shall be given credit for in the assessment of his tax.

⁵[52A. Deduction at source from fees for professional or technical services.-

The principal officer of any company registered under ⁶[***] wMbl ABb, 1998 (1998 mbi 18 bs ABb) or the chief executive of any non-government organization registered with the NGO Affairs Bureau or the chief executive of any trust registered under the Trusts Act,1882 (II of 1882) running any general or specialized hospital or any diagnostic centre shall be responsible for making any payment to any doctor which may be payable to him on account of fees for services rendered by him to a patient in such hospital or diagnostic centre and shall, at the time of making such payment ⁷[or credit of such payment to the account of the payee], deduct income tax at the rate of ⁸[ten per cent] on the amount so payable.
The government or any other authority, corporation or body, including its units, the activities of which are authorised by any Act, Ordinance, Order or instrument having the force of law in Bangladesh, or any company as defined in clause (20) of section 2 or any banking company or any insurance company or any co-operative bank or any non-government organisation registered with NGO Affairs Bureau, responsible for making any payment on account of royalty or technical know how fee shall deduct or collect, at the time of credit of such royalty or fee to the account of the payee or at the time of payment there of in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, as advance payment of tax at the rate of ten per cent of such royalty or fee. ^[30]^{[31] [32] [33] [34] [35] [36] [37]}
The government or any other authority corporation or body, including its units, the activities of which are authorized by any Act, Ordinance, Order or instrument having the force of law in Bangladesh, or any company as defined in clause (20) of section 2 or any banking company or any insurance company or any co-operative bank or any non-government organisation registered with NGO Affairs Bureau, responsible for making any payment on account of fees for professional or technical services shall deduct or collect, at the time of credit of such fees to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, as advance payment of tax at the rate of-

¹[(a) ten per cent of such fees where the person receiving such fees furnishes his ^[38]^[39][twelve-digit Taxpayer’s Identification Number] (TIN) to the payer; or

fifteen per cent of such fees where the person receiving such fees fails to furnish his ^[40]^[41][twelve-digit Taxpayer’s Identification Number] (TIN) to the payer]:

Provided that where the Board, on an application made in this behalf, gives a certificate in writing that the person rendering professional or technical services is not likely to have any assessable income during the year or the income is otherwise exempted from tax under any provision of this Ordinance, payment referred to in this section shall be made without any deduction until the certificate is cancelled.

Explanation: – For the purposes of this section –

“professional services” means services rendered by a person in the course of carrying on legal, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising ⁴[or actuarial service] ^[42][or any other services applying professional knowledge] but does not include services rendered by doctors;
“fees for technical services” shall have the same meaning as in clause (31) of section 2 but does not include royalty, technical know -how fee.

*[52AA. Deduction from the payment of certain services.- The government or any other authority, corporation or body, including its units, the activities of which are authorised by any Act, Ordinance, Order or instrument having the force of law in Bangladesh or any company as defined in clause (20) of section 2 of this Ordinance or any banking company or any insurance company or any co-operative bank or any non-government organisation registered with the NGO Affairs Bureau, responsible for paying any commission to a ^[43][***]stevedoring agency or making any payment to a private security service agency ^[44][or making any payment to any person for rendering any service other than the services specified in this Chapter], shall deduct income tax at the rate of ^[45][ten percent] on the amount so payable at the time of such payment ^[46]^{[47] [48]}[or credit of such payment to the account of the payee]:]

⁶[Provided that where the Board, on an application made in this behalf, gives a certificate in writing that the person rendering such services is not likely to have any assessable income during the year or the income 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.]

⁷[52AAA. Collection of tax from clearing and forwarding agents.- The

Commissioner of Customs shall make collection on account of commission receivable by clearing and forwarding agents licensed under Customs Act, 1969 at the rate of ^[49]^[50][ten percent] on such commission at the time of clearance of goods imported or exported].

⁹[52B. Collection of tax from Cigarette manufacturers .- Any person responsible for selling banderols to any manufacturer of cigarettes shall, at the time of selling banderols, collect tax from such manufacturer on account of the manufacture of cigarettes at the rate of ^[51][ten per cent] of the value of the banderols.

Explanation- For the purposes of this section, “manufacture of cigarettes” means manufacture of cigarettes manually without any mechanical aid whatsoever.

¹[52C. Deduction at source from compensation against acquisition of property.- Any person, responsible for paying any amount of compensation against acquisition by the Government of any immovable property shall, at the time of paying such compensation deduct advance tax at the rate of,-

two per cent of the amount of such compensation where the immovable property is situated in any city corporation, paurashava or cantonment board;
one per cent of the amount of such compensation where the immovable property is situated outside any city corporation, paurashava or cantonment board.]

²[52D. Deduction at source from interest on saving instruments.- Any person responsible for making any payment by way of interest on any savings instruments shall, at the time of such payment, deduct income tax at the rate of ³[five percent] on such interest:

⁴[(Proviso)***]

⁵[(Proviso)***]

⁶[Provided ⁷[***]that no tax shall be deducted under this section where the savings instrument is purchased by an approved superannuation fund or pension fund or gratuity fund or a recognized ⁸[ provident fund, or a workers ” profit participation fund] ⁹[:

Provided further that no tax shall be deducted under this section where the cumulative investment at the end of the income year in the pensioners’ savings certificate or wage earners development bond does not exceed five lakh taka.]

^w[(Proviso) ***] ^[52]^{[53] [54] [55] [56] [57] [58] [59] [60] [61]}

[(52E).***]

²[52F. Collection of tax from brick manufacturers.- Any person responsible for issuing any permission or renewal of permission for the manufacture of bricks shall, at the time of issuing such permission or renewal of permission, collect tax from such manufacturer at the time of issuance of such permission or renewal at the following rates:

[ (a) taka forty five thousand for one section brick field;

taka seventy thousand for one and half section brick field;
taka ninety thousand for two section brick field;
taka one lakh and fifty thousand for brick field producing bricks through automatic machine.]

Explanation:- For the purpose of this section, the word “section” shall have the same meaning as defined in wlmgt BUfUt gj mswtRb Ki fefagM, 2008.]

⁴[(52G).***]

⁵[(52H).***]

52I. Deduction from the commission of letter of credit.- Any person responsible for opening letter of credit for the purpose of import of goods for himself or for any other person shall, at the time of collecting commission with respect to letter of credit, deduct income tax at the rate of five per cent. on the amount of such commission.

⁶[(52J.)***]

Omitted by F.A. 2001
by F.A. 2005
by F.A. 2014
Omitted by F.A. 2004
Omitted by F.A. 2000
by F.A. 2000 subsequently omitted by F.A. 2001

*[52JJ. Collection of tax from travel agent.- Any person responsible for paying to a resident, any sum by way of commission or discount or incentive bonus or any other benefits convertible into money, called by whatever name, for selling tickets of an airline, or for carrying cargo by air, shall deduct or collect advance tax at the rate of three per cent at the time of paying such commission or incentive bonus or any other benefits or allowing discount.]

²[ ^[62]^{[63] [64] [65] [66] [67] [68] [69] [70] [71]}[52K. Collection of tax by City Corporation or Paurashava at the time of renewal of trade license.- Any person responsible for renewal of trade licence shall collect tax at the time of such renewal of each trade license at the rate of –

taka five hundred in Dhaka City Corporation or Chittagong City Corporation;
taka three hundred in any city corporation, other than Dhaka and Chittagong city corporation;
taka three hundred in any paurashava at any district headquarter;
taka one hundred in any other paurashava.]

⁴[(52L.)***]

52M. Collection of tax from freight forward agency commission.- Any person responsible for making any payment by way of freight forward agency commission, at the time of making such payment ⁵[or credit of such payment to the account of the payee], shall deduct tax at the rate of ⁶[fifteen percent] of the said amount.

⁷[52N. Collection of tax on account of rental power. – Notwithstanding anything contained in this Ordinance, Bangladesh Power Development Board , at the time of payment to any rental power company on account of purchase of rental power from that company, shall collect , deduct or pay tax on the said payment ⁸[***] at the rate of ⁹[six per cent] ¹⁰[***].

¹[52O. Collection of tax from a foreign technician serving in a diamond cutting industry.- The person responsible for making any payment-which constitutes income chargeable under the head ”Salaries” received by or due to any person who is neither a citizen of Bangladesh nor was resident in Bangladesh in any of the four years immediately preceding the year in which he arrived in Bangladesh, as remuneration for services rendered by him for a period not exceeding three years from the date of his arrival in Bangladesh, during such period, as a technician employed in diamond cutting industries under a contract of service, shall deduct tax at the rate of five percent of such salaries at the time of making payment or giving credit which ever is earlier:

provided that the provisions of this clause shall not be applicable to foreign technicians appointed after June 30.2010.]

²[52P. Deduction of tax for services from convention hall, conference centre, etc.- Any person, being a corporation, body or authority established by or under any law including any company or enterprise owned, controlled or managed by it, or a company registered under WTAlbl AlBb, 1998 (1998 mbi 18 bs AlBb), any Non-government Organization registered with N.G.O Affairs Bureau or any university or medical college or dental college or engineering college which makes any payment to any person on account of renting or using space of convention hall, conference centre, room or, as the case may be, hall, hotel, community centre or any restaurant, shall deduct tax at the rate of five percent from the whole amount paid for the services thereof at the time of making such payment or at the time of credit of such payment to the account of the payee:

Provided that no deduction shall be made by a company when such amount is paid directly to the government.

¹ Ins. by F.A. 2009

Ins. new sections 52P & 52Q by F.A. 2011

52Q. Deduction of tax from resident for any income in connection with any service provided to any foreign person.- Any person, responsible for paying or crediting to the account of a resident any sum remitted from abroad by way of service charges or consulting fees or commissions or remunerations or any other fees called by whatever name for any service rendered or any work done by a resident person in favour of a foreign person, shall deduct tax at the rate of ten percent of the amount so paid at the time of making such payment or credit of such payment to the account of the payee.]

¹[52R. Deduction of tax from receipts in respect of international phone call. –

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 one 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.
The International Gateway(IGW) Services operator, by which any sum related to international phone call is paid or credited to the account of Interconnection Exchange (ICX), Access Network Services (ANS) or any other person under an agreement with the Bangladesh Telecommunication Regulatory Commission (BTRC), shall deduct tax at the rate of five percent on the whole amount so paid or credited at the time of such payment or credit under the said agreement.
Notwithstanding anything contained in sub-section (1) or (2), 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-
without deduction of tax; or
after deducting tax at a rate specified in the certificate.]

²[52S. Collection of tax from manufacturer of soft drink ^[72][, etc].- The Security Printing Corporation (Bangladesh) Limited, or any other person responsible for delivery of banderols or stamps, shall collect, at the time of delivery of such banderols or stamps to any manufacturer of soft drinks ⁴[or mineral or bottled water], tax at the rate of three per cent of the value of such soft drinks ⁴[or mineral or bottled water] as determined for the purpose of the Value Added Tax (VAT).]

*[52T. Deduction of tax from any payment in excess of premium paid on life insurance policy.- Any person responsible for paying to a resident, any sum in excess of premium paid for any life insurance policy maintained with any life insurance company, shall deduct, at the time of payment of such excess amount to the policy holder, income tax at the rate of five per cent on such sum:

Provided that no deduction of tax shall be made in case of death of such policy holder.

52U. Deduction from payment on account of local letter of credit.- The bank or financial institution, through which any local letter of credit or any financing agreement, called by whatever name, is made between two or more persons within the country for purchasing or procuring of any goods and proceeds of such goods are paid, shall deduct tax at the rate of three per cent, on the total proceeds exceeding five lakh taka, at the time of paying or crediting such proceeds to the account of the person or persons providing such goods:

Provided that no tax shall be deducted under this section from the payment related to local letter of credit (L/C) and any other financing agreement in respect of 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, date, cassia leaf and all kinds offruits.

52V. Deduction from payment by cellular mobile phone operator.- The

Principal Officer of a cellular mobile phone operator company responsible for making any payment, on account of any revenue sharing or any license fees or any other fees or charges, called by whatever name, to the regulatory authority, shall deduct tax at the rate of ten percent of such payment at the time of credit to the payee or at the time of payment thereof, whichever is earlier.]

new sections 52T, 52U & 52V by F.A. 2014

Collection of tax from importers.- ¹[***] ²[(1) The ³[Commissioner of Customs] shall make collection of tax payable by the importers on account of import of goods ⁴[***].]

The Board shall, for the purpose of collection of tax under sub-section
specify the importers ⁵[***] from whom collections are to be made; and
prescribe the method and rate of calculation of the amount to be collected and the manner of collection.
Any amount collected under sub-section (1) shall be deemed to be an advance payment of tax by the importer ⁶[***] concerned, and shall be given credit for, in the assessment of his tax.

⁷[53A. Deduction at source from house property.- ⁸[(1) Where, the Government or any authority, corporation or body, including its units, the activities or the principal activities of which are authorised by any Act, Ordinance, order or instrument having the force of law in Bangladesh or any company as defined in clause (20) of section 2, or any banking company or any co-operative bank established by or under any law for the time being in force or any nongovernmental organisation run or supported by any foreign ⁹[donation or assistance or any university or medical college or dental college or engineering college] ¹⁰[or any college or school ^[^73]^[74][or hospital or clinic or diagnostic centre] is a tenant in respect of a house property, the tenant shall deduct from the house rent paid or payable as advance tax ¹²[at the rate of five percent].]

[Explanation.- For the purpose of this section, “house rent” means any payment, by whatever name called, under any lease, tenancy or any other agreement or arrangement for the use of any building including any furniture, fittings and the land appurtenant thereto.]
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,-
if no tax was payable, in full, or
if the amount deducted is in excess of the amount payable, to the extent of the excess deduction to the owner of the house property.
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 provisions of this Ordinance, payment referred to in sub-section (1) shall be made without any deduction until the certificate is cancelled.

²[53AA. Collection of tax from shipping business of a resident.-

Commissioner of Customs or any other authority, duly authorised in this behalf, shall not grant port clearance to a ship owned or chartered by a resident assessee unless tax at the rate of ^[75]^{[76] [77]}[five per cent] of total freight received or receivable in or out of Bangladesh has been paid for carriage of passengers, livestock, mail or goods, shipped at any port of Bangladesh ^[78][:

Provided that tax shall be collected at the rate of three per cent of total freight received or receivable from services rendered between two or more foreign countries.]

¹[53B. Deduction of tax from income derived on account of export of manpower.- The Director General, Bureau of Manpower, Employment and Training shall, before giving clearance for export of any manpower, collect from the exporter concerned as advance tax on income on account of such export ^[79]^{[80] [81]}[at such percentage] of the service charge or fees mentioned in clause (n) and clause (r), respectively, of section 19(2) of the Emigration Ordinance, 1982 (XXIX of 1982), as may be prescribed.

³[^[82][53BB. Collection of tax from export of certain items.- The bank, through which export proceeds of an exporter of knit wear and woven garments, terry towel, carton and accessories of garments industry jute goods, frozen food, vegetables, leather goods, packed food is received, shall deduct tax at the rate of ^[83][zero point eight zero percent (0.80%)] of the total export proceeds at the time of crediting the proceeds to the account of the exporter:

Provided that where the Board, on an application made in this behalf, gives a certificate in writing that the income of the exporter is partly or fully exempted from tax under any provision of the Ordinance, credit to the account of the assessee shall be made without any deduction of tax or deduction of tax at a rate less than the rate specified in this section for the period mentioned in that certificate.

53BBB. Collection of tax from Member of Stock Exchanges.- The Chief Executive Officer of a stock exchange shall collect tax at the rate of *[zero point zero five percent (0.05%)] on the value of shares, debentures, mutual funds ^[84]^[85][***] or securities transacted by a member of a stock exchange at the time of payment for such transaction.]

²[53BBBB. Collection of tax from export of any goods except certain items.-

The bank, through which export proceeds of an exporter of any goods except knit wear, woven garments, terry towel, carton and accessories of garments industry, jute goods, frozen food, vegetables, leather goods and packed food is received, shall deduct tax at the rate of ^[86][zero point eight zero percent (0.80%)] of the total export proceeds at the time of crediting the proceeds to the account of the exporter, which shall be deemed to be an advance payment of tax by the exporter and shall be given credit for the assessment of his tax:

53C. Collection of tax on sale price of goods or property sold by public auction.- Any person making sale, by ^[87][public auction through sealed tender or otherwise,] of any goods or property belonging to the Government or any authority, corporation or body, including its units, the activities or the principal activities of which are authorised by any Act, Ordinance, order or instrument having the force of law in Bangladesh or any company

¹[***] as defined in ²[³[***] wf^tbl ABb, 1998 (1998 mbi 18 bs ABb), or any banking company, or any insurance company or any co-operative bank established by or under any law for the time being in force shall collect, before delivering the possession of the goods or the property, as advance tax on the income from the sale price of such goods or property from the auction purchaser at such rate, not exceeding seven and a half per cent. of the sale price, as may be prescribed.

Explanation.- For the purposes of this section, sale of any goods or property includes the awarding of any lease to any person, including a lease of the right to collect octroi duties, fees or other levies, by whatever name called, but does not include sale of a plot of land.

⁴[53CC. Deduction or collection of tax at source from courier business of a non-resident.- Any person being a company registered under the Companies Act, 1913(VII of 1913) or Wt^ttbl ABb, 1998 (1998 mbi 18 bs ABb) working as local agent of a nonresident courier company shall deduct or collect tax in advance at the rate of ⁵[fifteen percent] on the amount of service charge accrued from the shipment of goods, documents, parcels or any other things outside Bangladesh.]

⁶[53D. Deduction from payment to actors, actresses, producers, etc.- (1) A

person responsible for making any part or full payment for purchasing a film, drama or television or radio programme shall deduct tax at the rate of ten percent of the amount paid or payable at the time of making payment or credit of such payment to the account of the payee.

A person responsible for making any part or full payment to another person for performing in a film, drama, advertisement or any television or radio programme shall deduct tax at the rate of ten percent of the amount paid or payable at the time of making payment or credit of such payment to the account of the payee ⁷[:

Provided that no tax shall be deducted under this section if the total payment does not exceed ten thousand taka.]] ^[88]^{[89] [90] [91] [92] [93] [94]}

¹[(53DD.)***]

²[53DDD. Deduction of tax at source from export cash subsidy.- Any person responsible for paying any amount on account of export cash subsidy to an exporter for promotion of export shall, at the time of payment or credit of such amount, deduct or collect tax in advance at the rate of ³[three per cent] on the amount so payable.]

53E. Deduction or collection at source from ⁴[commission, discount or fees].-

⁵[(1) Any person being a corporation, body or authority established by or under any law including any company or enterprise owned, controlled or managed by it, or a company registered under ^6[7[***] wtAtb AtBb, 1998 (1998 mtbi 18 bs ABb) which makes any payment to any distributor or to any other persons by way of commission, or fees ⁸[or allows any discount] for distribution or marketing of goods ⁹[***], shall deduct or collect at the time of credit of such commission, or fees or at the time of payment thereof, whichever is earlier, ¹⁰[or at the time of allowing discount] as advance tax an amount at the rate ¹¹[¹²[ten percent]. of commission, or fees payable or discount allowed]

¹³[Any company, as defined in clause (20) of section 2 of this Ordinance other than oil marketing company, which sells goods to any distributor or to any other persons under a written contract at a price lower than the retail price fixed by such company, shall collect at the time of sale of such goods to such distributor or other persons at the rate of ¹⁴[three per cent] of the difference between the sale price to the distributor or other persons and the retail price fixed by such company.]

¹[53EE. Deduction of tax from commission or remuneration paid to agent of foreign buyer.- Where, in accordance with the terms of the letter of credit or under any other instruction, a bank, through which an exporter receives payment for export of goods, pays any amount out of the export proceeds to the credit of any person being an agent or a representative of the foreign buyer, as commission, charges or remuneration by whatever name it may be called, the bank shall deduct or collect tax in advance at the rate of ²[seven and a half percent] on the commission, charges or remuneration so paid at the time of such payment.]

³[53F. Deduction at source from interest on saving deposits and fixed deposits, etc.- (1) Any person responsible for paying to a resident any sum by way of interest or share of profit on any saving deposits or fixed deposits or any term deposit maintained with any Scheduled bank including a cooperative bank or any bank run on Islamic principles or non-banking financial institution or any leasing company or housing finance company, as the case may be, shall deduct, at the time of credit of such interest or share of profit to the account of the payee or at the time of payment thereof, whichever is earlier, income tax on such sum at the rate of-

ten percent where the person receiving such interest or share of profit furnishes his ⁴[twelve-digit Taxpayer’s Identification Number] (TIN) to the payer; or
fifteen percent where the person receiving such interest or share of profit fails to furnish his ⁵[twelve-digit Taxpayer’s Identification Number] (TIN) to the payer:

Provided that the rate of deduction of tax shall be ten percent in case of saving deposit of which balance does not exceed taka one lakh at any time in the year. ^[95]^{[96] [97] [98] [99]}

Nothing contained in this section shall apply-
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
to such payee or class of payees as the Board may, by a general or special order, specify in this behalf.]

¹[53FF. Collection of tax from persons engaged in real estate or land development business.- Any person responsible for registering any document for transfer of any land or building or apartment, under the provision of Registration Act 1908 (XVI of 1908), shall not register the document unless tax is paid at the following rate by the transferer who is engaged in real estate or land development business,-

²[(a) in case of building or apartment ³[, constructed for residential purposes,] situated-

⁴[(i) at Gulshan Model Town, Banani, Baridhara, Motijeel Commercial Area and Dilkusha Commercial Area of Dhaka, taka ⁵[one thousand and six hundred] per square metre;

at Dhanmondi Residential Area, Defense Officers Housing Society (DOHS), Mahakhali, Lalmatia Housing Society, Uttara Model Town, Bashundhara Residential Area, Dhaka Cantonment Area, Karwan Bazar Commercial Area of Dhaka and Panchlaish Residential Area, Khulshi Resindential Area, Agrabad and Nasirabad of Chittagong, taka ⁶[one thousand and five hundred] per square metre;
in areas other than areas mentioned in sub-clauses (i) and (ii), taka ⁷[six hundred] per square metre;]
by F.A. 2005
by F.A. 2010
by F.A. 2011

Subs. for “sub-clause (i) and (ii)” by F.A. 2011

omitted “two thousand” by F.A. 2013 and Ins. “one thousand and six hundred” by F.A. 2013 Subs. for “one thousand and eight hundred” by F.A. 2013.

Subs. for “eight hundred” by F.A. 2013

¹ [(aa) in case of building or apartment or any space thereof, constructed not for the residential purposes, situated-

in areas mentioned under sub-clause (i) of clause
, taka ²[six thousand and five hundred] per square metre;
in areas mentioned under sub-clause (ii) of clause
, taka ³[five thousand] per square metre;
in areas mentioned under sub-clause (iii) of clause
, taka ⁴[one thousand and six hundred] per square metre;]

⁵[(b) in case of land to which the document relates and on which stamp duty is chargeable under the Stamp Act, 1899 (Act No. II of 1899) at the rate of-

five percent for Dhaka, Gazipur, Narayanganj, Munshiganj, Manikganj, Narsingdi and Chittagong districts;
three percent for any other district.]

53G. Deduction at source from insurance commission.- Any person responsible for paying to a resident any sum by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business including business relating to the continuance, renewal or revival of policies of insurance, shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income tax on such sum at the rate of ⁶[five percent].

⁷ [(Proviso)***]

by F.A. 2011

Subs. for “six thousand” by F.A. 2013

Subs. for “six thousand ” by F.A. 2013.

for “two thousand” by F.A. 2013
by F.A. 2009 and re-subs. by F.A. 2012 ⁶Subs. for “three per cent” by F.A. 2010

Omitted (proviso)by F.A 2008

¹[53GG. Deduction at source from fees, etc. of surveyors of general insurance company.- A person responsible for paying to a resident any sum by way of remuneration or fees for conducting any survey regarding settlement of claim of an insurance shall, at the time of payment, deduct income-tax on such sum at the rate of ²[fifteen percent.]]

³[(53GGG.)***]

⁴[53H. Collection of tax on transfer, etc. of property.- (1) Any registering officer responsible for registering any document of a person 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 at such rate as may be prescribed in relation to the property to which the document relates and on which stamp-duty is chargeable under Stamp Act, 1899 (II of 1899) by the person whose right, title or interest is sought to be transferred, assigned, limited or extinguished thereby, at the time of registration of such document:

Provided that the rate of tax shall not exceed taka ten lakh and eighty thousand per katha (1.65 decimal) for land, taka six hundred per square meter for any structure, building, flat, apartment or floor space on the land, if any, or four per cent of the deed value, whichever is higher.

Nothing in this section shall apply to a document relating to:
sale by a bank or any financial institution as a mortgagee empowered to sell;
mortgage of any property to any bank or any financial institution

against any loan;

Explanation.-For the purpose of this sub-section, “financial institution” shall mean the Bangladesh House Building Finance Corporation or the Bangladesh Development Bank Ltd.]

^Iⁿ^s by F.A. 2000

Subs for seven and halfper cent by F.A 2010

Ins by F. A. 2006 and subsequently omitted by F. O 2007

by F.A. 2014

I.T. Manual, Part-1

¹[53HH. Collection of tax from lease of property.- Any registering officer responsible for registering under the Registration Act, 1908 (XVI of 1908) any document in relation to any lease of immovable property for not less than ten years from any authority formed or established under any law shall not register such document unless tax is paid at a rate of four per cent by the lessor on the lease amount of such property.

Explanation.- For the purpose of this section, “any authority” shall mean Rajdhani Unnayan Kartripakkha (RAJUK), Chittagong Development Authority (CDA), Rajshahi Development Authority (RDA), Khulna Development Authority (KDA) or National Housing Authority].

[53I. Deduction at source from interest on deposit of Post Office Savings Bank Account.- Any person responsible for paying any amount on account of interest of Post Office Savings Bank Account shall deduct, at the time of credit to the account of the payee or at the time of payment thereof, whichever is earlier, tax on such amount at the rate of ten percent: ^[100]^[101]

¹ [(Proviso)***]

Provided ²[***]that nothing contained in this section shall apply to such payee or class of payees as the Board may, by a general or special order, specify in this behalf.

53J. Deduction at source from rental value of vacant land or plant or machinery.- The Government or any authority, corporation or body, including its units, the activities or the principal activities of which are authorised by any Act, Ordinance, Order or Instrument having the force of law in Bangladesh or any company as defined in clause (20) of section (2) or any banking company or any insurance company or any co-operative bank established by or under any law for the time being in force or any nongovernment organization registered with NGO Affairs Bureau or any university or medical college or dental college or engineering college responsible for making any payment on account of rental value of vacant land or plant and/or machinery, shall deduct tax in advance at the time of such payment ³[or credit of such payment to the account of the payee] at the rate ⁴[of five percent].

53K. Deduction of tax from advertising bill of newspaper or magazine or private television channel ⁵[or private radio station ^[102] [103] [104] [105] [106] [107][, etc.]- The

Government or any authority, corporation or body, including its units, the activities or the principal activities of which are authorized by any Act, Ordinance, Order or any other Instrument having the force of law in Bangladesh or any company as defined in clause (20) of section (2) or any banking company or any insurance company or any co-operative bank established by or under any law for the time being in force or any nongovernment organization registered with NGO Affairs Bureau or any university or medical college or dental college or engineering college responsible for making any payment to newspaper or magazine or private television channel or ^[108][private radio station or any web site on account of advertisement of purchasing airtime of private television channel or radio station or such web site] shall deduct tax in advance at the time of such payment at the rate of three percent.

¹[(53L)***]

²[53M. Collection of tax from transfer of securities or mutual fund units by sponsor shareholders of a company etc.- The Securities & Exchange Commission or Stock Exchange, as the case may be, at the time of transfer or declaration of transfer or according consent to transfer of securities or mutual fund units of a sponsor shareholder or director or placement holder of a company or sponsor or placement holder of a mutual fund listed with a stock Exchange shall collect tax at the rate of five percent on the difference between transfer value and cost of acquisition of the securities or mutual fund units.

Explanation.—For the purpose of this section-

‘transfer’ includes transfer under a gift, bequest, will or an irrevocable trust;
‘transfer value’ of a security or a mutual fund units shall be deemed to be the closing price of securities or mutual fund units prevailing on the day consent accorded by the Securities and Exchange Commission or the Stock Exchange, as the case may be, or where such securities or mutual fund units were not traded on the day such consent was accorded, the closing price of the day when such securities or mutual fund units were last traded.]

¹ Ins. new sections 53L by F.A. 2010 and omitted by F.A. 2013 Ins. new sections 53M by F.A. 2010

I.T. Manual, Part-1[Sec.53N, 53O

*[53N. Collection of tax from transfer of share of shareholder of Stock Exchanges.- (1) The Principal Officer of a stock exchange shall deduct tax at the rate of fifteen per cent on any profits and gains arising from the transfer of share of a shareholder of stock exchange established under Exchanges

Demutualisation Act, 2013 (Act No. 15 of 2013)] at the time of transfer or declaration of transfer or according consent to transfer of such share, whichever is earlier.

For the purpose of the computation of profits and gains of share under sub-section (1), the cost of acquisition of such share shall be the cost of acquisition incurred before ^oi« (^oio is Ai

^5^)” [Exchanges Demutualisation Act, 2013 (Act No. 15 of 2013)] came into force.

53O. Deduction of tax from gains of securities traded in the Stock Exchanges.-

The Principal Officer of a company holding Trading Right Entitlement Certificate (TREC) under ^oi«, (^oi« is

^^)” of any stock exchange dealing in shares or securities listed with such stock exchange or a bank or merchant bank or financial institution maintaining account of any investor of shares or securities shall deduct tax at the rate of ten percent of the realised gains derived by any company, as defined in clause (20) of section 2 of this Ordinance, or firm before closing of a financial year.

For the purpose of calculation of the realised gain of a share or security under sub-section (1), proportionate average cost of such share or security including all commissions, fees or interest of any loan or advance paid or charged in relation to the transfer of share or security shall be deducted from the sale value of such shares or securities.] ^[109]

*[54. Deduction of tax from dividends.- (1) The principal officer of a company registered in Bangladesh, or of any other company, shall, subject to the provisions of sub-section (2), at the time of paying any dividend to a shareholder, deduct tax on the amount of such dividend, in the case of-

^[110]^[111][a non-resident other than non-resident Bangladeshi],-
if the shareholder is a company, at the rate applicable to a company ;
if the shareholder is a person other than a company, at the maximum rate ;
^[112][a resident or a non-resident Bangladeshi],-
if the shareholder is a company, at the rate applicable to a company ;
if the shareholder is a person other than a company, ^[113]^{[114] [115]}[at the rate of ten per cent where the person receiving such dividend furnishes his twelve-digit Taxpayer’s Identification Number (TIN) to the payer or fifteen per cent where the person receiving such dividend fails to furnish his twelvedigit Taxpayer’s Identification Number (TIN) to the payer.]

⁵[(2) Where, the Deputy Commissioner of Taxes, on an application made in this behalf, issues a certificate to a non-resident share holder, not being a company, is liable to tax at the rate less than the maximum rate, the payment of the dividend to the non resident share holder shall be made without any deduction of tax or at a rate less than the maximum rate specified in subsection (1), as the case may be.]

⁶ [(Proviso)***]

Deduction from income from lottery, etc.- The person responsible for paying any amount on account of winnings referred to in section 19(13) shall, at the time of making such payment, deduct tax ^[116]^[117] [payable on the amount at the rate of twenty per cent.]

Explanation.- For the purposes of this section, the expression “any amount” means the value of any goods or assets where the payment on account of such winnings is made not in the form of cash but in the form of goods or other assets.

Deduction from income of non-residents.- (1) Subject to the provisions of sub-section (2), any person responsible for making payment to a non-resident of any amount which constitutes 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 –

where the payee is a company, at the rate applicable to a company

²[(b) where the payee is a person other than a company and not being a non-resident Bangladeshi, at the maximum rate;

where the payee is a non-resident Bangladeshi, at the rate applicable for a resident.]
Where, ^[^118][the National Board of Revenue], on an application made in this behalf, gives a certificate that, to the best of ^[119][its belief], the non-resident will not be liable to pay any tax under this Ordinance, or will be liable to pay tax at a rate less than the maximum rate, payment referred to in sub-section (1) shall be made without any deduction, or, as the case may be, with deduction at the lesser rate specified in the certificate.

Consequences of failure to deduct, etc.- (1) Where a person required by or

under the provisions of this Chapter to deduct, collect or pay to the credit of the Government tax, and, in the cases mentioned in section 54, the principal officer and the company of which he is the principal officer, fails to so deduct, collect or pay, or having deducted or collected, fails to pay the tax in accordance with the provisions of this Chapter, he or it shall-

without prejudice to any other consequences to which he or it may be liable, be deemed to be an assessee in default in respect of the tax ; and
in addition to such tax, pay an amount at the rate of two percent per month of such tax for the period commencing on the date following the expiry of the time within which it is to be paid under section 59 and ending on the date of the actual payment of the tax.

¹[(2) Where the Deputy Commissioner of Taxes in the course of any proceedings under this Ordinance finds any person, required by or under the provisions of this chapter to deduct, collect or pay to the credit of the Government tax, has failed to deduct, collect or pay the tax in accordance with the provisions of this chapter, shall, notwithstanding the provisions of section 137, take necessary action for realisation of such tax alongwith the additional amount payable under clause (b) of sub-section (1) from the person deemed to be an assessee in default under clause (a) of that sub-section.]

Certificate of deduction, etc., of tax.- Every person who deducts or collects tax as required by the provisions of this Chapter shall, at the time of making any payment in relation to which tax has been deducted or collected, furnish to the person to or from whom such payment or collection has been made, a certificate to the effect that the tax has been deducted or collected specifying therein-

the amount deducted or collected ;
the rate at which deduction or collection has been made ; and
such other particulars as may be prescribed.

Payment to Government of tax deducted.- All sums deducted or collected

as tax under the provisions of this Chapter shall be paid within the prescribed time by the person making the deduction or collection to the credit of the Government or as the Board may direct.

Unauthorized deduction prohibited.- Save as provided in this Ordinance, no

person shall charge, withhold, deduct or collect any sum, directly or indirectly, as tax, and, where any sum is so charged, withheld, deducted or collected, it shall be paid in the manner provided in section 59.

Power to levy tax without prejudice to other mode of recovery.- The

power to levy tax by deduction or collection under this Chapter shall be without prejudice to any other mode of recovery.

Credit of tax deducted or collected at source.- Any deduction or collection of tax made and paid to the account of the Government in accordance with the provisions of this Chapter shall be treated as a payment of tax on behalf of the person from whose income the deduction or collection was made, or of the owner of the security or of the shareholder, as the case may be, and credit shall be given to him therefor on the production of the certificate furnished under section 58 in the assessment, if any, made for the following year under this Ordinance:

Provided that, if such person or such owner obtains, in accordance with the provisions of this Ordinance, a refund of any portion of the tax so deducted, no credit shall be given for the amount of such refund:

Provided further that where such person or owner is a person whose income is included under the provisions of section 43 (4) or (5) or section 104 or 105 or 106 in the total income of another person, such other person shall be deemed to be the person or owner on whose behalf payment has been made and to whom credit shall be given in the assessment for the following year.

f(Proviso)***]

¹[(62A.)***]

Payment of tax where no deduction is made.- The tax under this Ordinance shall be payable by the assessee direct –

in any case where tax has not been deducted or collected as required by, and in accordance with, the provisions of this Chapter ;
in any case where the amount deducted or collected is found, after regular assessment, to be less than the tax due from the assessee, to the extent of deficiency ; and
in the case of income in respect of which no provision has been made for deduction or collection of tax under the provisions of this Chapter.

Advance payment of tax.- ²[(1) Except as provided in sub-section (2), tax shall be payable by an assessee during each financial year by way of advance payment of tax, hereinafter referred to as “advance tax”, in accordance with the provisions hereafter made in this Chapter if the total income of the assessee for the latest income year in respect of which he has been assessed by way of regular assessment, or has been provisionally assessed under this Ordinance, or the Income-tax Act, 1922 (XI of 1922), ³[exceeds ⁴{four lakh taka}];]

Nothing in sub-section (1) shall apply to any income classifiable under the heads “Agricultural income” and “Capital gains” ⁵[excluding gain from transfer of share of a company listed with a stock exchange].

Computation of advance tax.- (1) The amount of advance tax payable by an assessee in a financial year shall be the amount equal to the tax payable on his total income of the latest income year as assessed on regular basis or provisionally, as the case may be, as reduced by the amount of tax required to be deducted or collected at source in accordance with the preceding provisions of this Chapter.

by F.A. 2009 subsequently omitted by F.A. 2011
by F.A. 1993

Subs. for “three lakh taka” by F.A. 2010

Subs. for “two lakh taka” by F.O. 2007 ⁵ Ins. by F.A. 2010

The tax payable under sub-section (1) shall be calculated at the rates in force in respect of the financial year referred to therein.

Instalments of advance tax.- Advance tax shall be payable in four equal installments on the fifteenth day of September, December, March and June of the financial year for which the tax is payable:

¹[.Provided that, if before the fifteenth day of May of the year, an assessment of the assessee is completed in respect of an income year, later than that on the basis of which the tax was computed under section 65, the assessee shall pay in one instalment on the specified date or in equal instalments on the specified dates, if more than one falling after the date of the said assessment, the tax computed on the revised basis as reduced by the amount, if any, paid in accordance with the original computation].

Estimate of advance tax.- (1) Where, an assessee who is required to pay advance tax under section 64 estimates, at any time before the last instalment is due, that the tax payable by him for the relevant assessment year is likely to be less than the amount of tax as computed under section 65, he may, after giving to the Deputy Commissioner of Taxes an estimate of the tax payable by him, pay such estimated amount of advance tax, as reduced by the amount, if any, already paid, in equal instalments on the due dates of payment under section 66.

The assessee may furnish a revised estimate of such amount at any time before any of such instalments become payable and may thereby adjust any excess or deficiency, by reference to the amount already paid by him under this section, in any subsequent instalment or instalments payable in such financial year.

Advance payment of tax by new assessees.- Any person who has not previously been assessed by way of regular assessment under this Ordinance or the Income-tax Act, 1922 (XI of 1922), shall before the fifteenth day of June in each financial year, if his total income, subject to section 64 (2), of the period which would be the income yearn for the immediately following assessment year is likely to exceed ^[120][four lakh taka], send to the Deputy Commissioner of Taxes an estimate of his total income and advance tax payable by him calculated in the manner laid down in section 65 and shall pay such amount on such dates specified in section 66 as have not expired by instalments which may be revised according to section 67(2).

Failure to pay instalments of advance tax.- Where, an assessee who is required to pay advance tax fails to pay any instalment of such tax, as originally computed or, as the case may be, estimated, on the due date, he shall be deemed to be an assessee in default in respect of such instalment.
Levy of interest for failure to pay advance tax.- Where, in respect of an assessee who is required to pay advance tax, it is found in the course of regular assessment that advance tax has not been paid in accordance with the provisions of this Chapter, there shall be added, without prejudice to the consequences of the assessee being in default under section 69, to the tax as determined on the basis of such assessment, simple interest thereon calculated at the rate and for the period specified in section 73.
Credit of advance tax.- Any sum, other than a penalty or interest, paid by or recovered from an assessee as advance tax, shall be treated as a payment of tax in respect of the income of the period which would be the income year for an assessment for the year next following the year in which it was payable and shall be given credit for in the assessment of tax payable by the assessee.
Interest payable by Government on excess payment of advance tax.- (1)

The Government shall pay simple interest at ^[121][ten per cent.] per annum on the amount by which the aggregate sum of advance tax paid during a financial year exceeds the amount of tax payable by him as determined on regular assessment.

The period for which interest under sub-section (1) shall be payable shall be the period from the ^[122] [first day of July of the year of assessment] to the date of regular assessment in respect of the income of that year or a period of two years from the said first day of July, whichever is shorter.

Interest payable by the assessee on deficiency in payment of advance tax.-

Where, in any financial year, an assessee has paid advance tax on the basis of his own estimate and the advance tax so paid together with the tax deducted at source, if any, under this Chapter is less than seventy-five per cent. of the amount of tax payable by him as determined on regular assessment, the assessee shall pay, in addition to the balance of tax payable by him, simple interest at ten per cent. per annum on the amount by which the tax so paid and deducted falls short of the ^[123][seventy-five per cent. of the assessed tax].
The period for which interest under sub-section (1) shall be payable shall be the period from the ^[124] [first day of April] of the year in which the advance tax was paid to the date of regular assessment in respect of the income of that year or a period of two years from the said ^[125][first day of April], whichever is shorter.
Notwithstanding anything contained in sub-sections (1) and (2), where-
tax is paid under section 74, or
provisional assessment has been made under section 81 but regular assessment has not been made,

the simple interest shall be calculated in accordance with the following provisions-

up to the date on which tax under-section 74 or as provisionally assessed, was paid ;
thereafter, such simple interest shall be calculated on the amount by which the tax as so paid falls short of ^[126][the said seventy five percent of the assessed tax].

I.T. Manual, Part-1 [Sec.73, 74

Where, as a result of appeal, revision or reference, the amount on which interest was payable under sub-section (1) has been reduced, the amount of interest payable shall be reduced accordingly and the excess interest paid, if any, shall be refunded together with the amount of tax that is refundable.

Payment of tax on the basis of return.- *[(1) Every person who is required to file a return under section 75, 77, 78, 89(2), 91(3) or 93(1) shall, on or before the date on which he files the return, pay the amount of tax payable by him on the basis of such return or as per provision of section 16CCC, which ever is higher, as reduced by the amount of any tax deducted from his income or paid by him in accordance with the provisions of this Chapter.]

Any amount paid under sub-section (1) shall be deemed to have been paid towards the sum as may be determined to be payable by him after regular assessment.
A person who, without reasonable cause, fails to pay the tax as required by sub-section (1) shall be deemed to be an assessee in default. ^[127]

CHAPTER VIII

^[1] Omitted by F.A. 2001

^[2] Omitted by F.A. 2000

[3] Ins. clause (za), (zb) and (zc) by F.A. 2000

Omitted by F.A. 2001

^[5] Ins. by F.A. 2001

^[6] Ins. by F.A. 2002

^[7] Ins. by F.A. 2005

^[8] Subs. by. F.A. 2009

^[9] Ins. by F.A. 2006

Omitted by F.A. 2009

^[11] Ins. by F.A. 2012

^[12] Omitted by F.AO 2007

^[13] Ins. by F.O 2007

^[14] Omitted by F.O 2008

[15]

Omitted by F.A. 2010

^[16] Subs. “semi-colon” for “full-stop” and ins. new clauses (zp), (zq), (zr) and (zs) by F.O 2008

^[17] Ins. by F.A. 2009

^[18] Omitted by F.A. 2011

^[19]Ins. by F.A. 2013

^[20] Ins. byF.A. 1997

^[21]Ins. Proviso by F.A. 2004

[22]Ins. new section 50B by F.A. 2011

[23]Subs. by F.A. 2004 re-subs. by F.A. 2005

[24] Subs for Ten percent (10%) by F.A. 2014

^[25] Subs. full-stop for colon by F.A. 2014

^[26] Omitted by F.A. 2014

^[27]Omitted by F.A. 2005

^[28]Omitted by F.A. 2014

^[29]Ins. sec.51A by F.O. 1985 and subsequently omitted by I.T..(amend.) Ord. 1985(sec-2)

^[30] Omitted by F.A. 1993

[31] Subs. for “execution of contract” by F.O. 2007

[32] Omitted by F.A.2014

[33] Omitted by F.A. 1998

^[34] Subs. by F.A. 2002 and again subs. by F.A. 2004

^[35] Omitted by F.A. 2011

^[36]Ins. by F.A. 2011

^[37]Subs. for “five percent” by F.O. 2007

^[38] Ins. by F.A. 2013

^[39] Subs. by F.A. 2014

^[40]Subs. by F.A. 2014

^[41]Ins. by F.A. 2014

^[42] Ins. by F.A. 2011

by F.A. 2002 Omitted by F.A. 2004

^[44] ns. by F.A. 2011

[45] Subs. for “seven and half per cent” by F.A. 2010

^[46] Ins. by F.A. 2011

^[47] Ins. Proviso. by F.A. 2013

^[48] Ins. by F.A. 2004

^[49] Subs. for “seven and half per cent” by F.A. 2010

^[50] Sec 52B & 52C ins. by F.A. 1998

^[51] Subs. for “five per cent” by F.A. 2000 again subs for “three per cent” by F.A. 2005 again subs. for “four per cent” by F.O. 2007again subs. for “ten per cent” by F.A.2013

^[52] Subs. by F.A 2010

^[53] Sec. 52D, 52E, 52F, 52G, 52H, and 52I ins. by F.A. 1999

[54] Subs. for “ten percent” by F.A. 2011

_[55]Omitted proviso by F.A. 2002

^[56] Omitted by F.A. 2010

^[57] Ins. by F.A. 2002

Omitted by F.A. 2010

^[59] Subs. for “Providend fund” by F.A. 2003

^[60] Ins by F.A.2014

^[61]Omittedproviso by F.A. 2011

^[62]Ins by F.A.2014

Ins. section 52K, 52L and 52Mby F.O 2007

[64] Subs. by F.O. 2008 again subs. by F.A. 2012

Omitted by F.A. 2010

^[66] Ins. by F.A. 2011

^[67] Subs. for “seven and half per cent” by F.A. 2010

Ins. by Income Tax(Amendment) Act, 2009 (Act No. 11 of2009). Dated: 24/02/2009

^[69]Omitted by F.A. 2011

^[70]Subs for “four per cent” by F.A.2014

^[71] Omitted by F.A. 2012

Ins. new section 52R, by F.A. 2012 Ins. new section 52S by F.A. 2013 Ins. by F.A. 2014 Ins. by F.A. 2014

^[73] Omitted by F.A. 2012

by F.A. 1992

Subs. for “Collector of Customs” by F.A. 2001

Omitted by F.A. 2012

Omitted by F.A. 2012
Omitted by F.A. 2012
by F.A. 1988
by F.A. 1992

Subs. for “donation or assistance” by F.A. 2004

by F.A. 2012

^[74] Ins. by F.A. 2014

Subs. for “such amount as may be prescribed” by F.A. 2012

^[75] Ins. by F.A. 1999

^[76] Ins. Sec. 53AA by F.A. 2005

[77] Subs. for “fourpercent” by F.O. 2007

^[78] Ins. by F.A. 2009

^[79] Ins. Sec. 53B, 53C and 53D by F.A. 1988

[80]Subs. for “at such rate, not exceeding seven and a half per cent” by F.A. 1993

[81] Ins. Sec. 53BB and 53BBB by F.A. 2005

^[82] Subs. Sec 53BB by F.A. 2009

^[83] Subs. for “zero point six zero percent (0.60%)” by F.A. 2011subsequently subs. for “zero point

eight zero percent (o.80%)” by F.A. 2012

The rate “zero point one zero percent (0.10%)” has been reduced to “zero point zero five percent 0 .050%)” by Gm.Wti.l bs 338-aB/AIWKW/2o11, ztf&Lg 27/1o/2o11

^[85] Omitted by F.A. 2013

[86] Subs. for “zero point five zero percent” (0.50%)” by F.A. 2011 subsequently subs. for “zero point seven percent (0.70%)” by F.A. 2012

Subs. for “public auction ” by F.A. 1996

^[88] Omitted by F.A. 2011

^[89] Subs. for “the companies Act. 1913 (VII of 1913)” by F.A. 1995

[90]Omitted by F.A. 2011

^[91] Ins. by F.A. 2006

^[92] Subs. for “seven and half percent” by F.A. 2010

^[93] Subs. by F.A. 2011

[94] Subs. “colon” for “full-stop” and ins. new proviso by F.A. 2012

¹ Ins. by F.A. 2006 and omitted by F.A. 2009 Ins. new section 53DDD by F.A. 2012

Subs for “five per cent” by F.A.2014

Subs. for “commission or fees” by F.A. 2001

Existing law of section 53E is numbered as a sub-section (1) & ins new sub section (2) by F.A 2013
for “the Companies Act. 1913 (VII of 1913)” by F.A. 1995
Omitted by F.A. 2011

Subs. for “by way of commission or fees” by F.A. 2001

Omitted by F.A. 2011

¹⁰Subs. for whichever is earlier” by F.A. 2001 Subs. for “five per cent of commission or fees payable” by F.A. 2001

Subs. for “seven and half percent” by F.A. 2011

for Sec.53E sub-sec.(2) by F.A. 2013
Subs for ‘‘five per cent” by F.A.2014

^[95] Ins by F.A. 2000

Subs. for “fourpercent” by F.A. 2010

[97]Sec. 53F ins. by F.A. 1990 and subs. by F.A. 2012

^[98] Subs. byF.A.2014

^[99] Subs. by F.A.2014

[100]Ins. new section by F.A. 2014,

[101]Ins new section by F. O. 2008

^[102] Omitted by F.A. 2010

Omitted by F.A. 2010

^[104]Ins. by F.A. 2011

[105]Subs. for “prescribed by the Board” by F.A. 2012

^[106]Ins. by F.A. 2012

^[107] Ins. by F.A. 2014

^[108] Subs. by F.A. 2014

^[109] Ins. new sections 53N and 53O by F.A. 2014

^[110]Ins. by F.A. 1991

Subs. for “a non-resident” by F.O. 2008

[112] Subs. for “a resident” by F.O. 2008

^[113]Subs by F.A.2014

^[114]Subs. by F.A. 2005

^[115]Subs. by F.A. 2003 subsequently omitted by F.A. 2005

^[116]Subs. for the words “payable on the amount at the rates specified in paragraph 3(b) of the Second Schedule” by F.A. 1994

[117]Subs. clause (b) and ins. clause (c) by F.O. 2008

[118]Subs. for “the Deputy Commissioner of Taxes” by F.A. 2001

^[119]Subs. for “his belief” by F.A. 2001

^[120]Subs for “Three lakh taka” by F.A. 2010

Subs. for “twelve per cent” by F.A. 1994

^[122Subs. for “first day ofJuly of the year in which the advance tax was paid” by F.A. 1998

[123] Subs. for the words “assessed tax” by F.A. 1992

^[124] Subs. for “first day of July” by F.A. 2010

^[125]Subs for “first day ofJuly” by F.A. 2010

^[126]Subs. for “the said assessed tax” by F.A. 2011

^[127] Subs. by F. A. 2014

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