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Deduction of Tax from Interest Income of Resident under Section 104 of the Bangladesh Income Tax Act 2023 |
Deduction of tax from interest income of resident under Section 104 | Bangladesh Income Tax Act -2023
As per section-104(ITA-2023),
Deduction of Tax from Interest Income of Residents
(1) Where a specified person pays interest to any person, other than a bank or a finance company, in respect of a loan received or accepted, the payer shall deduct tax at the rate of 10% (ten percent) from the interest at the time the interest is paid.
(2) Upon an application by the assesses and after due verification, the Board may issue a written certificate stating that:
(a) no tax is required to be deducted from the amount payable to the assesses under this section; or
(b) tax shall be deducted at a reduced rate as specified in the certificate.
You may learn more-
Complete Section List of Income Tax ACT-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 Section 104 of the Bangladesh Income Tax Act 2023?
Answer:
Section 104 of the Bangladesh Income Tax Act 2023 requires tax to be deducted
at source from interest income paid to a resident, subject to the conditions,
exemptions, and prescribed tax rates under the Act.
2. Who is required to deduct tax under Section 104?
Answer:
Banks, financial institutions, and other entities responsible for paying
interest income to a resident are generally required to deduct tax at source
before making the payment, as specified under Section 104.
3. What types of interest income are covered under Section 104?
Answer:
Section 104 generally applies to interest earned by a resident from deposits,
savings instruments, financial institutions, and other taxable interest
payments covered by the Bangladesh Income Tax Act 2023.
4. Is tax deducted under Section 104 considered a final tax?
Answer:
Whether the tax deducted under Section 104 is treated as a final tax or
adjustable depends on the applicable provisions of the Bangladesh Income Tax
Act 2023 and the taxpayer's specific circumstances.