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Deduction of tax from any sum paid by a real estate developer to a land owner under Section 115 of the Bangladesh Income Tax Act 2023.
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Deduction of tax from any sum paid by real estate developer to land owner under Section 115 | Bangladesh Income Tax Act -2023
As per section-115(ITA-2023),
Deduction of Tax on Payments Made by Real Estate Developers to Landowners
Any person engaged in the business of real estate or land development who makes any payment to a landowner in the form of signing money, subsistence money, house rent, or any other payment by whatever name called, for the purpose of developing the land under a power of attorney, agreement, or other written contract, shall deduct tax at the rate of 15% (fifteen percent) of the total amount paid. The tax shall be deducted at the time the payment is made.
You may learn more-
Charge of additional tax under Section 19 | Bangladesh Income Tax Act -2023
Computation of special income from rent under Section 39 | Bangladesh Income Tax Act -2023
Frequently Asked Question (FAQ):
FAQ 1
What is the deduction of tax from any sum paid by a real estate developer to a land owner under Section 115?
Answer:
Section 115 of the Bangladesh Income Tax Act 2023 requires a real estate
developer to deduct tax at source from any amount paid or credited to a land
owner under a land development or joint venture agreement, subject to the
provisions of the law.
FAQ 2
Who is responsible for deducting tax under Section 115 of the Bangladesh Income Tax Act 2023?
Answer:
The real estate developer is responsible for deducting the applicable tax
before making payment or crediting any amount to the land owner and must
deposit the deducted tax with the government within the prescribed time.
FAQ 3
When should tax be deducted under Section 115?
Answer:
Tax should be deducted at the time of payment or when the amount is credited to
the account of the land owner, whichever occurs first, in accordance with the
Bangladesh Income Tax Act 2023.
FAQ 4
Does Section 115 apply to joint venture agreements between developers and land owners?
Answer:
Yes. Section 115 generally applies to payments made by real estate developers
to land owners under land development or joint venture arrangements, subject to
the conditions and exceptions provided in the Bangladesh Income Tax Act 2023.