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Deduction of Tax from Any Payment in Excess of Premium Paid on Life Insurance Policy under Section 99 of the Bangladesh Income Tax Act 2023 |
Deduction of tax from any payment in excess of premium paid on life insurance policy under Section 99 | Bangladesh Income Tax Act -2023
As per section-99(ITA-2023),
Deduction of Tax from Payments Exceeding Premiums Paid on Life Insurance Policies
Any person responsible for making a payment to a resident of an amount exceeding the total premiums paid under a life insurance policy maintained with a life insurance company shall, at the time of making such payment to the policyholder, deduct tax at the rate of 5% (five percent) on the excess amount.
Provided that no tax shall be deducted where the payment is made as a result of the death of the policyholder.
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Frequently Asked Question (FAQ):
1. What is Section 99 of the Bangladesh Income Tax Act 2023?
Section 99 of the Bangladesh Income Tax Act 2023 provides the rules for deducting tax from any payment received under a life insurance policy that exceeds the total premium paid, subject to applicable legal provisions.
2. When is tax deducted from a life insurance policy payment?
Tax is deducted when the payment made under a life insurance policy exceeds the total amount of premiums paid by the policyholder, as specified under Section 99 of the Bangladesh Income Tax Act 2023.
3. Who is responsible for deducting tax under Section 99?
The insurer or the person making the payment is generally responsible for deducting the applicable tax before releasing any amount that exceeds the premium paid.
4. How is the taxable amount calculated under Section 99?
The taxable amount is generally calculated as the excess of the payment received over the total premiums paid under the life insurance policy, according to the provisions of Section 99.