TDS Rates Chart FY 2023-24 in Bangladesh per Income Tax Act 2023

Do you know the updated TDS rates chart FY 2023-24 in Bangladesh with section references as per Income Tax Act 2023?

The people who are working in the accounts and finance department, responsible for making the payments, require to know the TDS rates to deduct or collect tax at source during making the payment to comply with the Income Tax Act 2023.

In this article, I have compiled full TDS rates FY 2023-24 in Bangladesh including section references for you according to Income Tax Act 2023 and Withholding Tax Rules 2023. At the end of the TDS rates chart, you will also find the related annexures which are based on Withholding Tax Rules 2023.

You will be happy to know that I have published a book “Utse Kor Korton 2023” in Bangla and “Tax Deduction 2023” in English according to Income Tax Act 2023 and Withholding Tax Rules 2023. You can buy any book you prefer to read in Bangla or English because the content of the books are the same. Both the books are bestselling in Rokomari.

You will also be happy to know that I have also published VAT rates chart FY2023-24, SD rates chart FY2023-24 and VAT exempted goods and services FY2023-24 in this blog. But the most important issue is that when you will make the payment, you have to know how the tax shall be calculated in different situations. Sometimes, you may face difficulties in complex tax issues.

Anyway, there are few changes in the TDS rates FY 2023-24 due to enactment of the new Income Tax Act 2023 and Withholding Tax Rules 2023 (Utse Kor Bidhimala 2023). After incorporating all the changes, full TDS rates chart FY 2023-24 with section references are presented below in table.

Now, let’s start with TDS rates FY 2023-24 in Bangladesh.

Please rotate your smartphone screen for a friendly view of the below table. You may also download free PDF copy of this full TDS rates chart FY 2023-24.

SI	Heads	Ref	Rate
01	Salaries	Section 86	Average
	Salaries (Government)	Section 86 (3)	Average
02	Payment to Workers’ Participation Fund	Section 88	10%
03	(a) Execution of contract, other than a contract for providing or rendering a service mentioned in under sections of Part 7 of the Act. (b) Supply of goods; (c)Manufacture, process or conversion; (d) Printing, packaging or binding	Section 89	Annexure 1
04	Deduction from payment of services	Section 90	Annexure 2
05	Payment for intangibles assets	Section 91	Annexure 3
06	Advertisement in media	Section 92	5%
07	Payment to actors, actresses, producers, etc.	Section 93	(a)10% on the payment in case of purchase of film, drama, any kind of television or radio program   (b)10% on the payment to actor/actress
08	Commission, discount or fees	Section 94	See lesson 2.6
09	Travel agent	Section 95	See lesson 3.1
10	Commission of letter of credit	Section 96	5%
11	Payment on commission of local L/C	Section 97	3% (If purchase of goods for the purpose of trading or reselling after process or conversion)   1% (Payment against the invoice or sale of goods to distributor) 2% (If the payment related to local letter of credit (L/C) and any 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
12	Payment by cellular mobile phone operator	Section 98	10%
13	Payment in excess of premium paid on life insurance policy	Section 99	5%
14	Insurance commission	Section 100	5%
15	Fees of survey for general insurance company	Section 101	15%
16	Intrest on savings account and fixed deposit	Section 102	20% – Company   10% – Any other person except company   10% – Public Univesity, Educational institute enlisted for MPO, Chartered Accountants or Cost and Management Accountants or Chartered Secretaies Institute   5% – Approved Provident Fund, approved Gratuity Fund, Approved Superannuation Fund and Approved Pension Fund
17	Interest on deposit of post office Saving bank account	Section 103	10%
18	Interest income on resident	Section 104	10%
19	Interest on saving instruments	Section 105	10% (No withholding tax on interest on pensioners savings certificate if cumulative investment in such certificate at the end of the income year does not exceed tk. 5 lakh)
20	Interest on securities	Section 106	5%
21	Discount on the real value of Bangladesh Bank Bills	Section 107	Maximum
22	International gateway service in respect of phone call.	Section 108	(1) 1.5% of total revenue received by IGW services operator. (2) 7.5% of revenue paid or credited to ICX, ANS, BTRC and others (3) 7.5% on the whole amount so paid or credited at the time of payment or credit
23	Rental income	Section 109	5%
24	Services from convention hall, conference centre etc.	Section 110	5%
25	Compensation against acquisition of property	Section 111	(a) 6% of the amount of such compensation against the immovable property situated within a city corporation, paurashava or cantonment board   (b) 3% of the amount of such compensation against the immovable property situated outside the jurisdiction of a city corporation, paurashava or cantonment board
26	Export cash subsidy	Section 112	10%
27	Freight forward agency commission	Section 113	15%
28	Purchase of power	Section 114	6%
29	Any sum paid by real estate developer to land owner	Section 115	15%
30	Commission or remuneration paid to agent of foreign buyer	Section 116	10%
31	Dividends	Section 117	Company – applicable rate for such company Resident/nonresident Bangladeshi person other than company -If TIN, 10% -If No TIN, 15%
32	Income from lottery	Section 118	20%
33	Income of non-residents	Section 119	Annexure 4
34	Import	Section 120	See Rule 7 of the Withholding Tax Rules 2023
35	Recruiting agents	Section 121	10% BDT 50,000 as advance tax for license or renew of license
36	C & F Agent	Section 122	10%
37	Deduction of tax from export proceeds	Section 123	1% of the total export proceeds
38	Any income in connection with any service provided to any foreign person by a resident person;   No tax against sale of software or services if it is exempted under paragraph 21 of part 1 of the sixth schedule, or excluded from total income by paragraph 17 and 33 of Part 1 of the Sixth Schedule.	Section 124	10% But 7.5% in case of contracts on manufacturing, process or conversion, civil work, construction, engineering or works of similar nature.
39	Transfer of property	Section 125	See SRO 224, dated 17.07.2023
40	Real estate or land development business	Section 126	See SRO 224, dated 17.07.2023
41	Collection of Tax from lease of property	Section 128	4%
42	Manufacturer of nonmechanical cigarette (Bidi)	Section 129	10% of the value of banderols
43	Brick Manufacturer	Section 130	Tk.45,000/-for one section brickfield, Tk.70,000/-for one and half section brickfield, Tk.90,000/-for two section brick field, Tk.1,50,000/-for automatic brickfield
44	Renewal of trade license by City Corporation or Paurashava	Section 131	Tk. 3,000/-for Dhaka North City Corporation, Dhaka South City Corporation & Chittagong City Corporation; Tk. 2,000 for any other city corporation,   Tk. 1,000 for any paurashava of any district headquarters; Tk. 500 in any other paurashava
45	Shipping business of a resident	Section 132	5% of total freight received or receivable in or out of Bangladesh 3% of total freight received or receivable from services rendered between two or more foreign countries
46	Sale by public auction	Section 133	10% of sale price
47	Share transfer	Section 134	15% on gain
48	Transfer of securities	Section 135	5%
49	Transfer of shares of any Stock Exchange	Section 136	15% on gain
50	Member of Stock Exchanges	Section 137	i) 0.05% on the value of shares, debentures and mutual funds transacted   No tax in case of transfer of any listed sukuk and bond
51	Collection of tax from motorvehicles plying commercially	138	Annexure 5
52	Inland ships engaged in carrying passengers in inland water	139	Taka 125 per passenger (carrying capacity of an inland ship shall be the capacity of daytime plying in smooth waters)
	Cargo, container (multipurpose) and coaster engaged in carrying goods in inland water	139	Taka 170 per gross tonnage
	Dump barge engaged in carrying goods in inland water	139	Taka 125 per gross tonnage

Annexure 1: Rate of deduction under section 89

(a) subject to clause (b), in case of a payment made under section 89, the deduction on payment shall be at the following rate:

SI	Base value	Rate
1	Up to BDT 50 lakh	3%
2	Above BDT 50 lakh but below BDT 2 crore	5%
3	Above BDT 2 crore	7%

Provided that the rate of deduction for supply of tobacco leaves in any form and tobacco products including cigarettes, bidi, zarda, gul shall be 10% (ten percent)

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

SI	Description	Rate
1	In case of oil supplied by oil marketing companies engaged in marketing of petroleum oil and lubricant	0.60%
2	In case of oil supplied by dealer or agent (excluding petrol pump station) of oil marketing companies, on any amount	1%
3	In case of supply of oil by any company engaged in oil refinery, on any amount	3%
4	In case of company engaged in gas transmission, on any amount	3%
5	In case of company engaged in gas distribution, on any amount	3%
6	In case of supply of Extra High Voltage Power Cable 33KV to 500KV by local manufacturers having own Vertical Continuous Vulcanization line	3%
7	In case of an industrial undertaking engaged in producing cement, iron or iron products, ferro alloy products except MS Billets	2%
8	In case of an industrial undertaking engaged in the production of MS Billets	0.5%
9	In case of locally procured MS Scrap	0.5%
10	In case of supply of rice, wheat, potato, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chillies, pulses, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, date, cassia leaf, jute, cotton, yarn and all kinds of fruits	2%
11	In case of supply of books to a person other than the Government, or any authority, corporation or body of the Government, including all of its attached and sub-ordinate offices	3%
12	In case of supply of trading goods to a trader	5%
13	In case of supply of industrial raw materials to a manufacturer	4%

Annexure 2: Rate of deduction from the payment of services under section 90

SI	Description of service and payment	Rate
1	Advisory or consultancy service	10%
2	(i) Professional service; (ii) technical services fee; (iii) technical know-how or technical assistance fee	10%
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.; (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	10% 2%
4	Media buying agency service (a) on commission or fee (b) on gross bill amount	10% 0.65%
5	Indenting commission	8%
6	Meeting fees, training fees or honorarium	10%
7	Mobile network operator, technical support service provider	12%
8	Credit rating service	10%
9	Motor garage or workshop	8%
10	Private container port or dockyard service	8%
11	Shipping agency commission	8%
12	Stevedoring/berth operation commission/terminal operator/ship handling operator- On commission or feeOn gross bill amount	10% 5%
13	(i) Transport service, vehicle rental servicecarrying service, and repair and maintenance service; (ii) Any other service under any sharing economy platform including ride sharing service, coworking space providing service and accommodation providing service;	5%
14	Wheeling charge for electricity transmission	3%
15	Internet service	10%
16	Agent, distributors, agency or channel partners, whatever named called, of mobile financial services provider	10%
17	Any other service which is not mentioned in above and is not a service provided by any bank, insurance, mobile financial services or financial institutions	10%

Annexure 3: Rate of deduction under section 91

Description of payment	Rate
Where base amount does not exceed taka 25 lakh	10%
Where base amount exceeds taka 25 lakh	12%

Annexure 4: Rate of deduction from income of non-residents under section 119

SI	Description of services or payments	Rate
1	Advisory or consultancy service	20%
2	Pre-shipment inspection service	20%
3	Professional service, technical services, technical know-how or technical assistance	20%
4	Architecture, interior design or landscape design, fashion design or process design	20%
5	Certification, rating etc.	20%
6	Charge or rent for satellite, airtime or frequency, rent for channel broadcast	20%
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%
13	Advertisement making or Digital marketing	15%
14	Air transport or water transport	7.5%
15	Contractor or sub-contractor	7.5%
16	Supplier	7.5%
17	Capital gain	15%
18	Insurance premium	10%
19	Rental of machinery, equipment etc.	15%
20	Dividend- (a) company, fund and trust (b) any other person not being a company, fund and trust	20% 30%
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	20%
25	Fees, etc. of surveyors of general insurance company	5.25%
26	Any service for making connectivity between oil or gas field and its export point	5.25%
27	Bandwith payment	10%
28	Courier services	15%
29	Any other payments	20%

Annexure 5: Collection of tax from motorvehicles plying commercially under section 138

SI	Description of the vehicle	Rate (Tk)
1	Bus having seats exceeding 52	16,000
2	Bus having seats not exceeding 52	11,500
3	Air-conditioned bus	37,500
4	Double decker bus	16,000
5	Air-conditioned (AC) minibus/coaster	16,000
6	Non-AC minibus/coaster	6,500
7	Prime mover	24,000
8	Truck, lorry or tank lorry having payload capacity exceeding five tons	16,000
9	Truck, lorry or tank lorry having payload capacity exceeding one and half tons but not exceeding five tons	9,500
10	Truck, lorry or tank lorry having payload capacity not exceeding one and half tons	4,000
11	Pickup van, human hauler, maxi or auto rickshaw	4,000
12	Air-conditioned taxicab	11,500
13	Non-AC taxicab	4,000