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16. Deduction of tax from payment to contractors, etc.-
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16. Deduction of tax from payment to contractors, etc.-
1[The rate of deduction of income tax under section 52 shall be the following-
[(a)subject to clause(c), in case of a payment made against the execution of a contract as mentioned in clause (a) of sub-section (1) of section 52, the deduction on payment shall be at the following rate-
| Sl. No. | Amount | Rate of Deduction of tax |
| 1. | Where base amount does not exceed taka 2 lakh | Nil |
| 2. | Where base amount exceeds taka 2 lakh but does not exceed taka 5 lakh | 1% |
| 3. | Where base amount exceeds taka 5 lakh but does not exceed taka 10 lakh | 2% |
| 4. | Where base amount exceeds taka 10 lakh but does not exceed taka 25 lakh | 3% |
| 5. | Where base amount exceeds taka 25 lakh but does not exceed taka 1 crore | 4% |
| 6. | Where base amount exceeds taka 1 crore but does not exceed taka 5 crore | 5% |
| 7. | Where base amount exceeds taka 5 crore but does not exceed taka 10 crore | 6% |
| 8. | Where base amount exceeds taka 10 crore |
7% |
(b) Subject to clause (c), in case of a payment for
(i) supply of goods; or
(ii) manufacture, process or conversinon; or
(iii) printing, packaging or binding;
the deduction on payment shall be at the following rate-
| Sl. No. | Amount | Rate of Deduction of tax |
| 1. | where base amount does not exceed taka 20 lakh | 3% |
| 2. | Where base amount exceeds taka 20 lakh but does not exceed taka 1 crore | 4% |
| 3. | Where base amount exceeds taka 1 crore | 5%; |
(c) the rate of deduction from the following classes of persons shall be-
|
Sl No |
Amount of payments | Rate of deduction of tax at the time of making payments. |
| 1 |
In case of oil supplied by oil marketing companies- (b) Where the payment exceeds taka 2 lakh |
Nil 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% |
Provided that the rate of tax shall be fifty percent (50%) higher if the payee does not have a twelve-digit Taxpayer’s Identification Number at the time of makintg the payment:
Provided further that where the Board, on an application made in this behalf, gives a certificate in writing that the person to whom the deduction is to be made under this rule is otherwise exempted from tax or subject to a reduced rate of tax in any income year under any provision of this Ordinance, the payment referred to in this rule shall be made without any deduction or with deduction at a lesser rate, as the case may be, for that income year.]
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1 Subs by F. A. 2016
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