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Deduction of tax from honorarium of Members of Parliament under Section 87 of the Bangladesh Income Tax Act, 2023. |
Deduction of tax from honorarium of Members of Parliament under Section 87 | Bangladesh Income Tax Act -2023
As per section-87(ITA-2023),
Deduction of Tax from Honorarium Paid to Members of Parliament
Any person responsible for paying an honorarium to a Member of Parliament shall, at the time of payment, deduct income tax from the amount payable. The tax shall be deducted at the average rate applicable to the estimated total honorarium income of the recipient for the relevant income year.
You may learn more-
Duties and functions, and jurisdiction of income-tax authorities under Section 08
Special agricultural income under Section 41 | Bangladesh Income Tax Act -2023
Frequently Asked Question (FAQ):
1. What is the tax deduction rate on the honorarium of Members of Parliament under Section 87?
Under Section 87 of the Bangladesh Income Tax Act, 2023, tax must be deducted at source from the honorarium paid to Members of Parliament at the prescribed rate applicable under the law at the time of payment.
2. Who is responsible for deducting tax from Members of Parliament honorarium?
The authority responsible for making the honorarium payment is required to deduct tax at source before disbursing the amount to the Member of Parliament in accordance with Section 87.
3. When should tax be deducted from the honorarium of Members of Parliament?
Tax must be deducted at the time of payment or credit of the honorarium, whichever occurs earlier, as prescribed by the Bangladesh Income Tax Act, 2023.
4. Is tax deducted from Members of Parliament honorarium considered final tax?
Whether the deducted tax is treated as final tax depends on the applicable provisions of the Bangladesh Income Tax Act, 2023 and the taxpayer's overall tax obligations and return filing requirements.