 |
|
Deduction of tax on profits of savings certificates under Section 105 of Bangladesh Income Tax Act 2023. |
Deduction of tax on profits of savings certificates under Section 105 | Bangladesh Income Tax Act -2023
As per section-105(ITA-2023),
Deduction of Tax on Profits from Savings Certificates
(1) Notwithstanding anything contained elsewhere in this Act or in any other law providing exemption from tax on profits received from savings certificates purchased with the funds of an approved superannuation fund, pension fund, gratuity fund, recognized provident fund, or workers' profit participation fund, the person responsible for paying profits on savings certificates shall deduct tax at the rate of 10% (ten percent) from such payment.
(2) No tax shall be deducted under this section from the profit earned on a pensioner's savings instrument if the total accumulated investment in such instrument does not exceed Tk. 5,00,000 (Taka five lakh) during the relevant income year.
(3) No tax shall be deducted from the interest or dividend arising from the following instruments:
- Wage Earners Development Bonds;
- US Dollar Premium Bonds;
- US Dollar Investment Bonds;
- Euro Premium Bonds;
- Euro Investment Bonds;
- Pound Sterling Investment Bonds; and
- Pound Sterling Premium Bonds
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):
FAQ 1: What is the deduction of tax on profits of savings certificates under Section 105?
Answer:
Under Section 105 of the Bangladesh Income Tax Act 2023, tax is deducted at
source from profits earned on savings certificates according to the prescribed
rules. The deducted tax is treated as advance tax against the taxpayer’s final
income tax liability.
FAQ 2: Who is responsible for deducting tax on savings certificates profit in Bangladesh?
Answer:
The authority or person responsible for paying the profit from savings
certificates must deduct the applicable tax at source before making the payment
to the certificate holder, as required under Section 105 of the Bangladesh
Income Tax Act 2023.
FAQ 3: What is the tax rate on savings certificates profit in Bangladesh?
Answer:
The tax rate on profits of savings certificates depends on the applicable
provisions, taxpayer category, and government rules under the Bangladesh Income
Tax Act 2023. Taxpayers should check the latest tax rates issued by the
National Board of Revenue (NBR).
FAQ 4: Is tax deducted from savings certificates profit adjustable in income tax returns?
Answer:
Yes, tax deducted from savings certificates profit is generally adjustable
against the taxpayer’s total income tax liability when filing an income tax
return, subject to applicable tax rules and documentation requirements.