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Deduction at Source under Section 88 – Bangladesh Income Tax Act 2023 Explained |
Deduction at source from money paid to Participatory Fund, Welfare Fund and Workers Welfare Foundation Fund under Section 88 | Bangladesh Income Tax Act -2023
As per section-88(ITA-2023),
Deduction of Tax at Source from Payments to Participatory Fund, Welfare Fund, and Workers Welfare Foundation Fund
Notwithstanding anything contained in any other law for the time being in force in Bangladesh, any person responsible for making payments to the Participatory Fund, Welfare Fund, or Workers Welfare Foundation Fund under section 234 of the Labor Act, 2006, shall deduct tax at source at the rate of 10% (ten percent) at the time of payment or credit, whichever occurs earlier.
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Frequently Asked Question (FAQ):
1. What is Section 88 of the Bangladesh Income Tax Act 2023?
Section 88 deals with deduction at source from payments made to Participatory Fund, Welfare Fund, and Workers Welfare Foundation Fund.
2. Who is responsible for deducting tax under Section 88?
The payer or responsible organization must deduct tax at source before making payments to eligible funds under Section 88.
3. What funds are covered under Section 88 TDS rules?
Section 88 covers Participatory Fund, Welfare Fund, and Workers Welfare Foundation Fund in Bangladesh.
4. Why is tax deducted at source under Section 88?
Tax is deducted at source to ensure compliance, transparency, and proper collection of government revenue from fund-related payments.