Income Tax Act 2023
Section 102 - Deduction of Tax on Savings Deposits and Fixed Deposits, etc
(as updated till Finance Act 2024)
1[(1) Notwithstanding anything contained in this Act or any other law for the time being in force in Bangladesh, any person engaged in the operation of banking, insurance, leasing, financing, postal banking, co-operative or mobile financial services, or any person responsible for paying any sum by way of interest or share of profit on deposit to a resident shall deduct, at the time of credit of such interest or share of profit to the account of the payee or at the time of payment thereof, whichever is earlier, tax on such sum at the rate mentioned in the following table and deposit it to the Government treasury, namely:—
Table
| Serial No. | Types of the payee | Rate |
| (1) | (2) | (3) |
| 1. | In case of a trust, association of persons and company | 20% (twenty percent) |
| 2. | In case of a primary educational institution, Institute of Chartered Accountants, Institute of Cost and Management Accountants or Institute of Chartered Secretaries | 10% (ten percent) |
| 3. | In case of persons not mentioned in serial no. 1 and 2 | 10% (ten percent) |
(2) Nothing contained in this section shall apply—
(a) to interest or share of profit arising out of any deposit pension scheme sponsored by the Government or by a Scheduled Bank with prior approval of the Government; or
(b) to such payee or class of payees as the Board may, by a general or special order, specify that income of such payee or class of payee is otherwise exempted from tax.
(3) For the purposes of this section, the proof of submission of return of legal guardian of a minor shall be considered as the proof of submission of return of the minor.
1 Sub-section (1) was substituted by section 40 of the Finance Act, 2024 (Act No. V of 2024) with effect from 1st July 2024.
Disclaimer: This is the authentic English text of the Income Tax Act 2023, as published under SRO No. 404-Law/2025 dated 08 October 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.