TDS rates with section references in income tax of

Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

Few major changes made by Finance Act 2019 in tax deduction or collection
like areas of TDS extended, rates changed and the full section replaced for
more clarification.

The big changes in TDS rate on the bill of contractors and suppliers under
section 52. The rates on the base value changed and decreases the slab of base
value and rates.

Previously, the rate was up to 7% which is now reduced to 5% if the base value
exceeds BDT 1 crore. And the minimum TDS rates is 2% up to BDT 25 lakh
which was previously BDT 15 lakh. In both ways, the businessmen will be
benefited.

TDS rate on interest on saving instruments under section 52D has been
increased to 10% from 5% and now the cost will increase for the people citizen
who are only depended on this secured high return instruments compare to
other investment facilities. This is the final settlement tax under section 82C
minimum tax and will not be refunded/adjusted who are below the tax
exemption threshold limit.
Payment for hotel accommodation is included under section 53A which was
previously only for the rent payment to house property owner. The rate remain
same at 5% irrespective of payment by the specified person. The replaced
section included two definitions “specified person” and “payment” which refer
to the section 52.

Same definitions included in the section 52P services from convention hall,
conference centre etc. and section 53J rental value of vacant lanf or plant or
machinery.

Last year dividend on corporate taxpayer has been exempted as there was
much talk about the multiple tax payment on dividend distribution by the
corporate taxpayers. And then it exempted to the resident companies from
taxed dividend. But this year non-resident companies will also get relief from
taxed dividend under section 54.

Trade license fee from city corporation or paurashava has been increased
significantly. This year the government has reduced company registration fee
from RJSC to develop the rank in ease of doing business. But whether the
increase of trade license will impact the world ranking?

Hope, you have understand all the changes are made through the Finance Act
2019 in TDS rates.

Now, let’s start for details TDS rates with section references.

Please rotate your smartphone screen for friendly view of the below table.
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel
SI Heads Ref Rate

Salaries Section 50 Average

1
Salaries (Government) Section 50 (1A) Average

Discount on the real value of

2 Section 50A Maximum
Bangladesh Bank Bills

3 Interest or profit on securities Section 51 5%

(a) Execution of contract, other

than a contract for providing or
rendering a service mentioned in
Section 52 & Rule
4 any other section of Chapter VII. Annexure 1
16
(b) Supply of goods;
(c)Manufacture, process or
conversion;
(d) Printing, packaging or binding

Royalties, franchise, fee for

issuing license, brand name,
patent, invention, formula,
process, method, design, pattern,
know-how, copyright, trademark,
5 Section52A Annexure 2
trade name, literary or musical or
artistic composition, survey,
study, forecast, estimate,
customer list or any other
intangibles

(1) Advisory or consultancy

service
(2) Professional service, Technical
6 Section 52AA Annexure 3
services fee, Technical assistance
fee.
(excluding professional services
by doctors)
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

(2) Professional service (by

Section 52AA Annexure 3
doctors)

3.
(i) Catering service;
(ii) Cleaning service;
(iii) Collection and recovery
service;
(iv) Private security service;
(v) Manpower supply service;
(vi) Creative media service;
(vii) Public relations service;
(viii) Event management service;
(ix) Training, workshop, etc.
organization and management
service;
(x) Courier service;

(xi) Packing and Shifting service;

(xii) any other service of similar
nature
(4) Media buying agency service
(5) Indenting commission Section 52AA Annexure 3
(6) Meeting fees, training fees or
honorarium
(8) Credit rating agency
(9) Motor garage or workshop
(10) Private container port or
dockyard service
(11) Shipping agency commission
(12) Stevedoring /berth operation
commission
(13) Transport service, carrying
service, vehicle rental service or
ride sharing services
(13A) Wheeling charge for
electricity transmission
(14) Any other service which is not
mentioned in Chapter VII, and is
not a service provided by any
bank, insurance or financial
institutions
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

(7) Mobile network operator,

technical support service provider
Section 52AA Annexure 3
or service delivery agents engaged
in mobile banking operations

7 C&F agency commission Section 52AAA 10%

Manufacturer of nonmechanical
8 Section 52B 10% of the value of banderols
cigarette (Bidi)

(a) 2% of the amount of such

compensation against the
immovableproperty situated
within a city corporation,
paurashava orcantonment
Compensation against acquisition
9 Section 52C board
of property
(b)1% of the amount of such
compensation against the
immovableproperty situated
outside thejurisdiction of a
city corporation, paurashava
orcantonment board

10%
(No withholding tax on
interest on pensioners
10 Interest on saving instruments Section 52D savings certificate if
cumulative investment in
suchcertificate at theend of
the income year does
notexceed tk. 5 lakh)

Payment to a beneficiary of
11 Section 52DD 5%
Workers’ Participation Fund

Tk.45,000/-for one section

12 Brick Manufacturer Section 52F brickfield,

Tk.70,000/-for one and half

 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

section brickfield,

Tk.90,000/-for two section

brick field,

Tk.1,50,000/-for automatic
brickfield

13 Commission of letter of credit Section 52I 5%

14 Travel agent Section 52JJ Annexure 4

Tk. 3,000/-for DhakaNorth

City
Corporation, Dhaka South
City Corporation &
Chittagong City Corporation;
Tk. 2,000 for any other city
Renewal of trade license by City
15 Section 52K corporation,
Corporation or Paurashava
Tk. 1,000 for any paurashava
of any district
headquarters;
Tk. 500 in any other
paurashava

Freight forward agency

16 Section 52M 15%
commission

17 Rental power Section 52N 6%

Foreign technician serving in

18 Section 52O 5%
diamond cutting

19 Section 52P 5%
Services from convention hall,
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

conference centre etc.

Any income in connection with

any service provided to any
foreign person by a resident
person;
20 Section 52Q 10%
No tax against remittance on sale
of software or services if it is
exempted under paragraph 33 of
part A of the sixth schedule.

(1)1.5%of totalrevenue
received byIGW services
operator.
(2) 7.5% of revenue paid or
International gateway service in
21 Section 52R credited toICX,ANS and
respect of phone call.
others

(2A) 7.5% on the whole

amount sopaid or credited at
the time of payment or credit

Payment in excess of premium

22 Section 52T 5%
paid on life insurance policy

3%
(If purchase of goods for the
purpose of trading or
reselling after process or
conversion)
1%
Payment on account of purchase
23 Section 52U
through local L/C (Payment against the invoice
or sale of goods to
distributor)

No tax shall be deducted

under this section from the
payment related to local
letter of credit (L/C) and any
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

other financing agreement in

respect of purchase or
procurement of rice, wheat,
potato, onion, garlic, peas,
chickpeas, lentils, ginger,
turmeric, dried chilies,
pulses, maize, coarse flour,
flour, salt, edible oil, sugar,
black pepper, cinnamon,
cardamom, clove, date,
cassia leaf, computer or
computer accessories, jute,
cotton, yarn and all kinds of
fruits

Payment of fees, revenue sharing

24 etc. by cellular mobile phone Section 52V 10%
operator

(a) 5% (general rate)

Section 53 & Rule (b) 2% on certain imported
25 Import
17A goods
(c)Tk.800 per ton in case of
import of certain items

House property or hotel

26 Section 53A 5% of the gross rent
accommodation

5% of total freightreceived or
receivable inor out of
Bangladesh
27 Shipping business of a resident Section 53AA
3% of total freight received or
receivable from services
rendered between two or
more foreign countries

Section 53B & Rule

28 Export of manpower 10%
17C
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

Export of knit wear and woven

1% of the total export
garments, terry towel, carton and
proceeds of all goods (other
29 accessories of Section 53BB
than jute goods)
garments industry, jute goods,
0.60%of the total export
frozen food, vegetables, leather
proceeds of jute goods
goods ,packed food

30 Member of Stock Exchanges Section 53BBB 0.05%

1% of the total export

Export of any goods except the
31 Section 53BBBB proceeds of all goods except
goods mentioned in section 53BB
the goods mentioned in
section-53BB

Goods or property sold by public Section 53C & Rule

32 5% of sale price
auction 17D

15% on the amount of service

33 Courier business of a non-resident Section 53CCC
charge

(a)10% on the payment in

case of purchase of film,
Payment to drama, any kind of television
34 Section 53D
actors,actresses,producers, etc or radio program
(b)10% on the payment to
actor/actress(If the total
paymentexceedTk.10,000)

35 Export cash subsidy Section 53DDD 10%

Section 53E(1) and

36 Commission, discount or fees Annexure 5
(2)

37 Commission, discount or fees Section 53E(3) Annexure 5

 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

Commission or remuneration paid

38 Section 53EE 10%
to agent of foreign buyer

10% if there is TIN;

15% if there is no TIN (not

applicable if the balance does
not exceed tk. 1 lakh at any
time in the year in case of
Interest or share of profit on saving deposit)
saving deposits and fixed deposits Section53F(1)
etc (not applicable on the
amount of interest or share
39 of profit arising out of any
deposit pension scheme
sponsored by
the Government or by a
schedule bank with prior
approval of the Government)

Interest or share of profit on any

saving deposits or fixed deposits
Section 53F(2) 5% (Annexure 6)
or any term deposit by or in the
name of a fund

See annexure 7 incase of

Building or apartment

In case of Land:
Real estate or land development (i)5% for Dhaka, Gazipur,
40 Section 53FF
business Narayanganj, Munshigang,
Manikganj, Narshindi
& Chittagong district;
(ii) 3% for any other
district

41 Insurance commission Section 53G 5%

42 Section 53GG 10%

Fees of survey or so for general
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

insurance company

43 Transfer of property Section 53H As mentioned in section 53H

Collection of Tax from lease of

44 Section 53HH 4%
property

Interest on deposit of post office

45 Section 53I 10%
Saving bank account

Rental value of vacant land or

46 Section 53J 5% of the rent
plant or machinery

Advertisement of newspaper or
magazine or private television
channel or private radio station or
any web site or any person on
47 Section 53K 4%
account of advertisement or
purchasing airtime of private
television channel or radio station
or such website.

Transfer of shares by the sponsor

48 shareholders of accompany listed Section 53M 5%
with stock exchange

Transfer of shares of any Stock

49 Section 53N 15% on gain
Exchange

Any sum paid by real estate

50 Section 53P 15%
developer to land owner

51 Dividends Section 54 Resident/nonresident

Bangladeshi
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

company —-
20%
Resident/nonresident
Bangladeshi
person other
than company
-If TIN, 10%
-If No TIN,
15%

52 Income from lottery Section 55 20%

Income of non-residents (Section

56):
(1) Advisory or consultancy
service
(2) Pre-shipment inspection
service
(3) Professional service, technical
services, technical know-how or
technical assistance
(4) Architecture, interior design or
landscape design, fashion design
or process design
(5) Certification, rating etc.
(6) Charge or rent for satellite,
53 airtime or frequency, rent for Section 56 Annexure 8
channel broadcast
(7) Legal service
(8) Management service including
event management
(9) Commission
(10) Royalty, license fee or
payments related to intangibles
(11) Interest
(12) Advertisement broadcasting
(13)Advertisement making or
Digital marketing
(14) Air transport or water
transport
(15) Contractor or sub-contractor
of manufacturing, process or
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

conversion, civil
work, construction, engineering or
works of similar nature
(16) Supplier
(17) Capital gain
(18) Insurance premium
(19)Rental of machinery,
equipment etc.
(20) Dividend
(21) Artist, singer or player
(22) Salary or remuneration
(23) Exploration or drilling in
petroleum operations
(24) Survey for coal, oil or gas
exploration
(24A) Fees, etc. of surveyors of
general insurance company
(25) Any service for making
connectivity between oil or gas
field and its export point
(26) Any payments against any
services not mentioned above

(27) Any other payments under

Section 56 30%
section 56

54 Advance tax for private motor car Section 68B Annexure9

Annexure 1: Rate of deduction under section 52

(a) subject to clause (b), in case of a payment made sub-section (1) of section
52, the deduction on payment shall be at the following rate:

SI Base value Rate

1 Up to BDT 25 lakh 2%

2 Above BDT 25 lakh but below BDT 50 lakh 3%

 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

3 Above BDT 50 lakh but below BDT 1 crore 4%

4 Above BDT 1 crore 5%

(b) the rate of deduction from the following classes of persons shall be at the
following rate:

In case of oil supplied by oil marketing companies- Nil

1 (a) Where the payment does not exceed taka 2 lakh
b) Where the payment exceeds taka 2 lakh 0.60%

In case of oil supplied by dealer or agent (excluding petrol

2 1%
pump station) of oil marketing companies, on any amount

In case of supply of oil by any company engaged in oil

3 3%
refinery, on any amount

In case of company engaged in gas transmission, on any

4 3%
amount

In case of company engaged in gas distribution, on any

5 3%
amount

Annexure 2: Rate of deduction under section 52A

Description of payment Rate

Where base amount does not exceed taka 25 lakh 10%

Where base amount exceeds taka 25 lakh 12%

Annexure 3: Rate of deduction from the payment of certain services

under section 52AA
SI Description of service and payment Rate
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

Where
base
Where base
amount
amount
does not
exceeds Tk.
exceed
25 lakh
Tk. 25
lakh

1 Advisory or consultancy service 10% 12%

Professional service, technical services fee, or technical

2 10% 12%
assistance fee

(i) Catering service;

(ii) Cleaning service;
(iii) Collection and recovery service;
(iv) Private security service;
(v) Manpower supply service;
(vi) Creative media service;
(vii) Public relations service; 10% 12%
3 (viii) Event management service;
(ix) Training, workshop, etc. organization and 1.5% 2%
management service;
(x) Courier service
(xi) Packing and shifting service

(xii) any other service of similar nature-

(a) on commission or fee
(b) on gross bill amount

Media buying agency service 10% 12%

4
(a) on commission or fee
0.5% 0.65%
(b) on gross bill amount

5 Indenting commission 6% 8%

6 Meeting fees, training fees or honorarium 10% 12%

 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

Mobile network operator, technical support service

7 provider or service delivery agents engaged in mobile 10% 12%
banking operations

8 Credit rating service 10% 12%

9 Motor garage or workshop 6% 8%

10 Private container port or dockyard service 6% 8%

11 Shipping agency commission 6% 8%

12 Stevedoring/berth operation commission 10% 12%

Transport service, carrying service, vehicle rental

13 3% 4%
service, ride sharing services

13A Wheeling charge for electricity transmission 4% 5%

Any other service which is not mentioned in Chapter

14 VII of this Ordinance and is not a service provided by 10% 12%
any bank, insurance or financial institutions

Annexure 4: Rate of deduction from income of non-residents under

section 52JJ
Any person responsible for making any payment to a resident any sum by way
of commission or discount or any other benefits, called by whatever name,
convertible into money for selling passenger tickets or air cargo carriage shall
deduct or collect advance tax at the rate of zero point three zero percent
(0.30%) of the total value of the tickets or any charge for carrying cargo by air
at the time of payment to such resident.

Where any incentive bonus, performance bonus or any other benefits, called
by whatever name, is to be paid in relation to such sale of tickets or bill for
carrying cargo by air in addition to the amount mentioned in sub-section (1),
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

person responsible for making such payment shall deduct an amount equal to
(A/B) x C, where:

“A” is the amount of incentive bonus, performance bonus or any other benefits
as mentioned in sub-section (2),

“B” is the amount of commission or discount or any other benefits as

mentioned in subsection (1), and

“C” is the amount of source tax on commission or discount or any other

benefits as mentioned in sub-section (1).

For the purpose of computation of value of tickets or charge, any payment

made in respect of any embarkation fees, travel tax, flight safety insurance,
security tax and airport tax shall not be included in such value or charge.

“payment” includes a transfer, a credit or an adjustment of payment.

Annexure 5: Rate of deduction from income of non-residents under

section 53E
(1) Any company making a payment or allowing an amount to a distributor,
called by whatever name, or to any other person by way of commission,
discount, fees, incentive or performance bonus or any other performance
related incentive or any other payment or benefit of the similar nature for
distribution or marketing of goods, shall deduct or collect tax at the time of
payment or allowing the amount at the rate of ten percent (10%) of the
amount of payment or the amount allowed or the value of benefits allowed, as
the case may be.

(2) Any company making a payment in relation to the promotion of the

company or its goods to any person engaged in the distribution or marketing
of the goods of the company shall, at the time of payment, deduct tax at the
rate of one point five percent (1.5%) of the payment.

(3) Any company, other than an oil marketing company, which sells goods to:
(a) any distributor, or
(b) any other person under a contract,
at a price lower than the retail price fixed by such company, shall collect tax
from such distributor or such any other person at the rate of five percent (5%)
on the amount equal to B x C,

where B = the selling price of the company to the distributor or the other
person;
C = 5%:
Provided that a cigarette manufacturer company shall collect tax at the time of
sale of its goods to such distributor or to such other person at the rate of three
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

percent (3%) of the difference between the sale price to the distributor or the
other person and the retail price fixed by such company.

(4) In this section:

(a) “payment” includes a transfer, credit or an adjustment of payment;
(b) “contract” includes an agreement or arrangement, whether written or not.
Annexure 6: Rate of deduction from income of non-residents under
section 53F (2)
TDS @ 5% is applicable on profit or share of profit.

The responsible person who will paid or credit, earlier one, profit or share of
profit on savings deposit, fixed deposit or term deposit by Fund or Name in
any schedule bank, cooperative bank, bank operated under IslamiShariah,
non-banking finance institute, leasing company or house finance company
shall deduct the tax at the above rate.

Fund means approved superannuation fund, pension fund, gratuity fund,

recognized provident fund or workers’ participation fund which is created and
operated by law has a legal identity and can operate separate bank account
under law.

The above rate will be applicable from July 01, 2016.

However, the fund which was exempted from source tax shall enjoy the facility
upto June 30, 2016.

Annexure 7: Rate of deduction from income of non-residents under

section 53FF
1.a) in case of building or apartment constructed for residential purposes:

Area

i) Gulshan Model Town, Banani, Baridhara, Matijheel C/A and Dilkusha C/A of Dhaka

ii) Dhanmondi R/A, DOHS, Mohakhali, Lalmatia Housing Society, Uttara Model Town,
Bashundhara R/A, Dhaka Cantonment Area, Karwanbazar C/A of Dhaka and Panchlaish R/A,
Khulshi R/A, Agrabad and Nasirabad of Chittagong
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

iii) Dhaka North City Corporation, Dhaka South City Corporation and Chittagong City Corporation
other than areas mentioned in (i) and (ii)

iv) Other City Corporations than Dhaka North City Corporation, Dhaka South City Corporation and

Per square
Area
metre (BDT)

i) Gulshan Model Town, Banani, Baridhara, Matijheel C/A and Dilkusha

6,500
C/A of Dhaka

ii) Dhanmondi R/A, DOHS, Mohakhali, Lalmatia Housing Society, Uttara

Model Town, Bashundhara R/A, Dhaka Cantonment Area, Karwanbazar
5,000
C/A of Dhaka and Panchlaish R/A, Khulshi R/A, Agrabad and Nasirabad of
Chittagong

iii) Dhaka North City Corporation, Dhaka South City Corporation and
3,500
Chittagong City Corporation other than areas mentioned in (i) and (ii)

iv) Other City Corporations than Dhaka North City Corporation, Dhaka
2,500
South City Corporation and Chittagong City Corporation

v) in areas other than areas mentioned in the above (i), (ii), (iii) & (iv) 1,200

Chittagong City Corporation

v) in areas other than areas mentioned in the above (i), (ii), (iii) & (iv)

Source tax for residential apartment consisting below 70 sqm including

common space will be 20% lower and below 60 sqm including common space
will be 40% lower.

1.b) in case of building or apartment or any space constructed not for the
residential purposes:
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

Annexure 8: Rate of deduction from income of non-residents under

section 56
SI Description of services or payments Rate

1 Advisory or consultancy service 20%

2 Pre-shipment inspection service 20%

Professional service, technical services, technical know-how or technical

3 20%
assistance

Architecture, interior design or landscape design, fashion design or

4 20%
process design

5 Certification, rating etc. 20%

Charge or rent for satellite, airtime or frequency, rent for channel

6 20%
broadcast

7 Legal service 20%

8 Management service including event management 20%

9 Commission 20%

10 Royalty, license fee or payments related to intangibles 20%

11 Interest 20%

12 Advertisement broadcasting 20%

 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

13 Advertisement making or Digital marketing 15%

14 Air transport or water transport 7.5%

Contractor or sub-contractor of manufacturing, process or conversion,

15 7.5%
civil work, construction, engineering or works of similar nature

16 Supplier 7.5%

17 Capital gain 15%

18 Insurance premium 10%

19 Rental of machinery, equipment etc. 15%

Dividend- 20%
20
(a) company–
30%
(b) any other person, not being a company–

21 Artist, singer or player 30%

22 Salary or remuneration 30%

23 Exploration or drilling in petroleum operations 5.25%

24 Survey for coal, oil or gas exploration 5.25%

24A Fees, etc. of surveyors of general insurance company 20%

 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

Any service for making connectivity between oil or gas field and its
25 5.25%
export point

26 Any payments against any services not mentioned above 20%

27 Any other payments 30%

Annexure 9: Rate of advance tax under section 68B

SI Types of car and engine capacity BDT

1 Upto 1500cc motor car or jeep 15,000

2 More than 1500cc to 2000cc motor car or jeep 30,000

3 More than2000cc to 2500cc motor car or jeep 50,000

4 More than2500cc to 3000cc motor car or jeep 75,000

5 More than3000cc to 3500cc motor car or jeep 100,000

6 Above 3500cc motor car or jeep 125,000

7 For each microbus 20,000

In case of more than one car or jeep solely or jointly owned by any person then
the advance tax will be 50% higher for each next car or jeep.

The advance tax shall be paid at the time of registration or before expired date
of fitness renewal.

The responsible authority who will issue the registration or fitness renewal
certificate should confirm that the advance tax has been paid for respective
motor car, jeep or microbus.
 TDS rates with section references in income tax of
Bangladesh for financial year 2019-20 by Jasim Uddin Rasel

Where the fitness renewal is not required in each year then the advance tax
shall be paid before the expired date of financial year. And the payment receipt
of advance tax shall be submitted at the time of next renewal date.

The tax paid as advance shall be adjusted as credit but non refundable or will
not adjusted in next income year.

If regular tax is less than advance tax then the advance tax shall be treated as
minimum tax.