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Deduction from Payment in Respect of Services under Section 90 of the Bangladesh Income Tax Act 2023—A complete guide to Tax Deducted at Source (TDS), applicable rates, compliance requirements, and legal obligations for taxpayers. |
Deduction from payment in respect of services under Section 90 | Bangladesh Income Tax Act -2023
As per section-90(ITA_2023),
Deduction of Tax from Payments for Services
Where a specified person makes a payment of a specified amount to a resident for the provision of any service, the person responsible for making the payment shall deduct tax at the applicable rate, not exceeding 20% (twenty percent), at the time the payment is made.
You may learn more-
Complete Section List of Income TaxACT-2023(ITA) in Bangladesh
Exercise of the power of the Tribunal under Section 14 | Bangladesh Income Tax Act -2023
Frequently Asked Question (FAQ):
1. What is deduction from payment in respect of services under Section 90?
Section 90 of the Bangladesh Income Tax Act 2023 requires specified persons to deduct tax at source (TDS) when making payments for certain services. The deducted tax must be deposited with the government according to the applicable legal provisions.
2. Who is responsible for deducting tax under Section 90?
Government offices, companies, firms, organizations, and other specified taxpayers making payments for eligible services are generally responsible for deducting tax under Section 90 before making the payment.
3. What services are covered under Section 90 of the Income Tax Act 2023?
Section 90 applies to various professional, technical, consultancy, management, contractual, and other specified services as prescribed under the Bangladesh Income Tax Act 2023 and related tax rules.
4. What happens if tax is not deducted under Section 90?
Failure to deduct or deposit tax under Section 90 may result in penalties, interest, disallowance of expenses, or other legal consequences under the Bangladesh Income Tax Act 2023.