 |
| Confirmation and Verification of Deduction or Collection of Tax at Source under Section 147 of the Income Tax Act, 2023 (Bangladesh): A Practical Guide for Taxpayers, Businesses, and Withholding Authorities. |
Confirmation and verification of deduction or collection of tax at source under Section 147 (ITA-2023)
Press Release
Under the directives of the National Board of Revenue (NBR), special teams of tax officials have been conducting nationwide tax enforcement and verification activities. Therefore, taxpayers and other stakeholders are requested to be aware of the powers and responsibilities of tax officials under Section 147 of the Income Tax Act, 2023. The following matters are highlighted for special attention.
Under Section 147 of the Income Tax Act, 2023, tax officials may take the following actions:
- Enter and inspect the premises of any business or economic establishment, including places where business activities are conducted;
- Examine and verify books of accounts, registers, bank statements, receipts, and other records relating to the institution's financial transactions;
- Inspect computer systems, cloud servers, digital records, or information stored in electronic devices and, where necessary, access such information through passwords or electronic devices;
- For the purpose of verifying tax-related information, examine books of accounts, registers, electronic records, and devices, and seize them if necessary;
- Make copies of any document, information, or records and use identification marks or official seals on such copies.
Please note that obstructing or interfering with the lawful duties of tax officials is an offence, and Section 147(2) of the Income Tax Act, 2023 provides for penalties in such cases.
All taxpayers are requested to cooperate with tax officials by complying with the relevant legal provisions and by making available accurate information and supporting financial documents.
If you have any questions, concerns, or suggestions regarding the implementation of Section 147, please contact the Section 147 Coordination Committee of the National Board of Revenue via email at:
assistance147nbr@gmail.com
Frequently Asked Questioned FAQs
1. What is Section 147 of the Income Tax Act 2023 in Bangladesh?
Section 147 of the Income Tax Act, 2023 authorizes designated income tax officials to confirm and verify whether tax has been properly deducted or collected at source. The provision allows inspection of records, accounts, electronic data, and other relevant documents to ensure compliance with Bangladesh's withholding tax rules.
2. Who can conduct verification under Section 147?
Verification may be conducted only by an authority specifically authorized in writing by the Commissioner of Taxes, the Director General (Inspection), or the Director General of the Central Intelligence Cell (CIC). These officials have legal authority to inspect documents and electronic records related to withholding tax compliance.
3. What records can income tax authorities inspect under Section 147?
Income tax authorities may inspect business premises, books of accounts, vouchers, bank statements, electronic records, computer systems, cloud data, and other documents necessary to verify whether tax has been correctly deducted or collected at source.
4. What happens if a person obstructs verification under Section 147?
A person who refuses to cooperate or creates obstacles during a lawful verification process may face legal consequences under the Income Tax Act, 2023. Taxpayers and withholding entities are therefore expected to provide reasonable access to the required records and information.