- For Company
- Non Company
Relevant Sections & Rules [for withholding authorities] from Income Tax Ordinance, 1984.
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 co-operative bank or any bank run on Islamic principles or non-banking financial institution or any leasing company or housing finance company, as the case may be, shall deduct, at the time of credit of such interest or share of profit to the account of the payee or at the time of payment thereof, whichever is earlier, income tax on such sum at the rate of-
(a) ten percent where the person receiving such interest or share of profit furnishes his twelve-digit Taxpayer’s Identification Number (TIN) to the payer; or
(b) fifteen percent where the person receiving such interest or share of profit fails to furnish his 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.
(2) Nothing contained in this section shall apply-
(a) to interest or share of profit arising out of any deposit pension scheme sponsored by the Government or by a scheduled Bank with prior approval of the government; or
(b) to such payee or class of payees as the Board may, by a general or special order, specify, in this behalf.
13. Time limit for payment of tax deducted at source.—
All sums deducted in accordance with the provisions of Chapter VII of the Ordinance shall be paid to the credit of the government within two weeks from the end of the month of such deduction or collection by the person making the deduction or collection, as the case may be
Provided that the Deputy Commissioner of Taxes may, in a special case and with the approval of the Inspecting Additional Commissioner of Taxes or the Inspecting joint Commissioner of taxes, permit an employer to pay the tax deducted from any income chargeable under the head “Salaries” quarterly on September 15, December 15, March 15 and June 15.
17H. Deduction of tax on interest on saving deposits, fixed deposits and term deposits.—
(1) For the purposes of making deduction of tax under section 53F of the Ordinance, each branch of a scheduled bank including a co-operative bank shall deduct income tax on interest or share of profit on saving deposits or fixed deposits or term deposits at the time of credit or payment of the interest or the share of profit, whichever is earlier, and report the total amount of tax deducted to its head office.
(2) The head office of each such bank shall deposit the total amount of tax deducted by all its branches in the Bangladesh Bank, in lump sum under the head of account [company: 1-1141-0001-0101, other than company: 1-1141-0001-0111], giving particulars as “Deduction of income tax under section 53F of the Income Tax Ordinance, 1984.
(3) The head office of each bank shall furnish to the Director, Research and Statistics, National Board of Revenue, in each financial year beginning of the 1st July, 1990 a statement in the form given below showing the particulars of tax so deposited;
Total amount of interest/ share of profit credited/ paid in respect of saving/ term/ fixed deposits/
Amount of tax deposited
Challan No./Token No./ Treasury voucher No. and date of deposit.
117A. Power to verify deduction or collection of tax.-
Notwithstanding anything contained in this Ordinance or any other law for the time being in force, the Board or any other authority empowered by the Board in this behalf may enter the premises of a deducting or collecting authority to examine, monitor or verify books of accounts and relevant records in relation to-
(a) deduction or collection of tax by the concerned authority in accordance with the provisions of chapter VII of this Ordinance; and
(b) deposit of the tax so collected or deducted to the credit of the government as per rules.
113. Power to call for information.-
The Deputy Commissioner of Taxes, the Inspecting Joint Commissioner, the Commissioner, the Director General, Central Intelligence Cell, or any other officer authorised in this behalf by the Commissioner or the Board may, for the purposes of this Ordinance, by notice in writing, require-
(a) any firm, to furnish him with a statement of the names and addresses of the partners and their respective shares;
(b) any Hindu undivided family, to furnish him with a statement of the names and addresses of the manager and the members of the family;
(c) any person, whom he has reason to believe to be a trustee, guardian or agent to furnish him with a statement of the names and addresses of the persons for or of whom he is trustee, guardian or agent;
(d) any assessee to furnish him with a statement of the names and address of all persons to whom he has paid in any income year any rent, interest, commission, royalty or brokerage, or any annuity, not being an annuity classifiable under the head “Salaries”, amounting to more than three thousand taka, together with particulars of all such payment;
(e) any dealer, broker or agent, or any person concerned in the management of a Stock Exchange, to furnish a statement of the names and addresses of all persons to whom he or the Exchange has paid any sum in connection with the transfer of capital assets, or on whose behalf or from whom he or the Exchange has received any such sum, together with the particulars of all such payments and receipts; or
(f) any person, including a banking company, to furnish information in relation to such points or matters, or to furnish such statements or accounts giving such particulars, as may be specified in the notice:
Provided that no such notice on a banking company shall be issued by the Deputy Commissioner of Taxes or the Inspector, without the approval of the Commissioner.