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Deduction of Tax from Surveyors' Fees under Section 101 of the Bangladesh Income Tax Act 2023 |
Deduction of tax from surveyors' fees, etc., of general insurance companies under Section 101 | Bangladesh Income Tax Act -2023
As per section-101(ITA-2023),
Deduction of tax from surveyors' fees, etc., of general insurance companies.— A person responsible for making payment to a resident any sum by way of remuneration or fee for conducting a survey regarding settlement of an insurance claim shall, at the time of payment, deduct tax at the rate of 15% (fifteen percent) on the gross amount.
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 Section 101 of the Bangladesh Income Tax Act, 2023?
Section 101 requires general insurance companies to deduct tax at source from payments made to surveyors and certain related service providers, subject to the provisions of the Bangladesh Income Tax Act, 2023.
2. Who is responsible for deducting tax from surveyors' fees?
The general insurance company making the payment is responsible for deducting the applicable tax before paying surveyors or other eligible recipients under Section 101.
3. When is tax deducted from surveyors' fees?
Tax is deducted at the time the fee is paid or credited to the surveyor's account, whichever occurs first, in accordance with the Income Tax Act, 2023.
4. Why is tax deducted from surveyors' fees under Section 101?
The purpose is to ensure timely collection of income tax through withholding at the source and improve tax compliance among recipients of surveyors' fees.