Income Tax Act-2023 & Income Tax Ordinance 1984 Significant Difference

Change in provisions of Tax Deduction at Source "TDS"

Prepared by Fintax Bangladesh Advisory Services
ITA 2023 Minimum ITO 1984 ITO 1984
Particulars OTA 2023 Rate Comments
Section Tax Compared Rate
Deduction of tax at source from income from employment [
Sec 86 only inclusion: TDS on payment from accumulated balance of Average Rate No Sec 50 Average Rate Almost Same
approved provident fund as per 2nd schedule, part-3,para-6
Deduction of tax from remuneration to members of
Sec 87 Average Rate No Sec 50B Average Rate No Changes
parliament
Conditions for
Sec 88 Deduction from payment to workers' participation fund 10% Yes Sec 52DD 5% non- deduction
deleted
Rule 16 of the
Not Exceeding Provision and
Sec 89 Deduction from payment to contractor, suppliers etc. Yes Sec 52 ITO-1984 is
10% conditions deleted
applicable

Not exceeding Service-wise

Sec 90 Deduction from the payment services Yes Sec 52AA Table Deleted
20% Table

10% & 12% 10% & 12%

Sec 91 Deduction from payment for Intangible assets (Base value 25 Yes Sec 52A (Base value No Changes
lac or more 25 lac or more
Conditions for
Sec 92 Deduction of tax from advertising bill of media broadcasting 5% Yes Sec 53K 4% non- deduction
deleted
Conditions for
Sec 93 Deduction from payment to actors, actresses, producers, etc. 10% No Sec 53D 10% non- deduction
deleted
No Changes, Firm
Deduction or collection at source from commission, discount, has been included
Sec 94 10%, 5%,3% Yes Sec 53E 10%, 5%,3%
fees etc. as deduction
authority
Sec 95 Collection of tax from travel agent 0.3% Yes Sec 52JJ 0.3% No Change
Sec 96 Deduction from the commission of letter or credit 5% No Sec 52I 5% No Change
Sec 97 Deduction from payment on account of local letter of credit 3%, 2%, 1% No Sec 52U 3%, 2%, 1% No Change
Deduction of tax from payments by cellular mobile phone
Sec 98 10% No Sec 52V 10% No Change
operators
Deduction of tax from any payment in excess of premium pain
Sec 99 5% No Sec 52T 5% No Change
on life insurance policy
Sec 100 Deduction from insurance commission 5% Yes Sec 52G 5% No Change
Deduction at source from fees, etc. of surveys of general
Sec 101 15% Yes Sec 52GG 10% Changes
insurance company
Deduction from interest on saving deposit and fixed deposit
Sec 102 20%,10%,5% Yes Sec 52F 20%,10%,5% No Change
etc.
Deduction at source from interest on deposit post office
Sec 103 10% No Sec 53I 10% No Change
savings bank account
Sec 104 Deduction from interest income of resident 10% No N/A N/A New Section
Sec 105 Deduction from interest of saving instruments 10% Yes Sec 52D 10% No Change
Sec 106 Deduction at source from interest on securities 5% Yes Sec 51 5% No Change
Deduction at source from discount on the real value of Maximum Proviso for non-
Sec 107 Maximum Rate No Sec 50A
Bangladesh Bank bills Rate deduction deleted
Deduction of tax from receipts in respect of international
Sec 108 1.5% , 7.5% Yes Sec 52R 1.5% , 7.5% No Change
phone cell
Sec 53A &
Sec 109 Deduction of tax at source from rent 5% No 5% No Change
53J
Deduction of tax for rendering , services from convention hall, Proviso for non-
Sec 110 5% Yes Sec 52P 5%
conference centre etc. deduction deleted
Deduction at source from compensation against acquisition of
Sec 111 6%, 3% Yes Sec 52C 6%, 3% No Change
property
Sec 112 Deduction of tax at source from export cash subsidy 10% Yes Sec 53DD 10% No Change
Deduction of tax at source from freight forward agency
Sec 113 15% Yes Sec 52M 15% No Change
commission
Sec 114 Deduction of tax against purchase of power 6% Yes Sec 52N 6% No Change
Deduction of tax from income received from real estate
Sec 115 15% Yes Sec 53P 15% No Change
developer to land owner
Deduction of tax from commission or remuneration paid to
Sec 116 10% Yes Sec 53EE 10% No Change
agent of foreign buyer
 Applicable
Applicable rate
Sec 117 Deduction of tax from dividends Yes Sec 54 rate 10% / No Change
10% / 15%
15%
Online game has
Sec 118 Deduction from income from lottery etc. 20% Yes Sec 55 20%
been included
TDS must be in
Not Exceeding Service-wise
Sec 119 Deduction or collection of tax from income of non-residents No Sec 56 name of non-
30% Table
Resident
Not
Not Exceeding
Sec 120 Collection of tax from importer Yes Sec 53 Exceeding No Change
20%
20%
Sec 121 Collection of tax from export manpower 10% Yes Sec 53B 10% No Change
1%, reduce, 1%, reduce,
Sec 123 Collection of tax from export income Yes Sec 53BB No Change
exemption exemption
Deduction of tax from any income remitted from aboard in
Sec 124 10%, 7.5% Yes Sec 53Q 10%, 7.5% No Change
connection with any service, revenue, sharing etc.

Tk. 20 lac per

katha (1.65
decimal) for
land , Tk. 1000/-
per sqm for
Sec 125 Collection of tax on transfer etc. of property any structure , Yes Sec 53H Table wise Changes in Rate
building, flat,
apartment or
floor space,
10% of the
deed value

Not exceed
higher of the
following: Tk.
1600/-Sqm for
using resident),
Sec 126 Collection of tax from real estate or land developer Yes Sec 53F Table wise Changes in Rate
Tk. 6500/- for
using
commercial
sqm, 5% of the
deed value

Collection of tax from commission on govt. stamp, court fees

Sec 127 4% Yes N/A N/A New Section
and cartridge paper
Sec 128 Collection of tax from lease of property 4% Yes Sec 53H 4% No Change
Sec 129 Collection of tax from cigarette manufacturers 10% Yes Sec 52B 10% No Change
one Section-
45K, one and
Sec 130 Collection of tax from brick manufacturers half-70K,two No Sec 52F Table wise No Change
section-
90k,auto-150K
City-3K, other City-3K, other
city- city-
Collection of tax at the time of issuance or renewal of trade 2K,Municipal 2K,Municipal
Sec 131 No Sec 52K No Change
license (city)-1K, (city)-1K,
Municipal Municipal
(other)-500/- (other)-500/-
Sec 132 Collection of tax from shipping business of a resident 5%, 3% Yes Sec 53AA 5%, 3% No Change
Sec 133 Collection of tax on sales by public auction 10% , 1% (tea) Yes Sec 53C 10% No Change
15% on face
Collection of tax from transfer of share of private limited
Sec 134 value or fair Yes N/A N/A New Section
company
value
Sec 135 Collection of tax from transfer of securities 5% Yes Sec 53M 5% No Change
Collection of tax from transfer of share of shareholder of stock
Sec 136 15% Yes Sec 53N 15% No Change
exchanges
0.05% on
Sec 137 Collection of tax from member of stock exchanges transaction Yes Sec 53BBB 0.05%,10% New condition
value
rate as per
Sec 138 Collection of tax from motor vehicles plying commercially rate as per table Yes Sec 53BBQ No Change
table
rate as per
Sec 139 Collection of tax from operations of marine vessels rate as per table Yes Sec 53R No Change
table