Rule 16
Deduction of tax from payment to contractors, etc.
- The rate of deduction of income tax under section 52 shall be the following
- subject to clause (b), in case of a payment made under sub- section (1) of section 52, the deduction on payment shall be at the rate specified in the Table-1 below:
- The rate of deduction of income tax under section 52 shall be the following
| Sl. No. | description | Rate of deduction of tax |
| 1. | Where base amount does not exceed taka 50 lakh | 3% |
| 2. | Where base amount exceeds 50 lakh but does not exceed taka 2 crore | 5% |
| 3. | Where base amount exceeds taka 2 crore | 7% |
- the rate of deduction from the following classes of persons shall be at the rate specified in the Table-2 below:
| Sl. No. | Amount | Rate of deduction of tax |
| 1. | In case of oil supplied by oil marketing companies engaged in marketing of petroleum oil and lubricant | 0.6% |
| 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 an industrial undertaking engaged in producing cement, iron or iron products, ferro alloy products except MS Billets | 2% |
| 7. | In case of an industrial undertaking engaged in the production of MS Billets | 0.5% |
| 8. | In case of locally procured MS Scrap | 0.5% |
| 9. | 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, | 2% |
| jute, cotton, yarn and all kinds of fruits | ||
| 10. | 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% |
| 11. | In case of supply of trading goods to a trader | 5% |
| 12. | In case of supply of industrial raw materials to a manufacturer | 4% |
- The rate of tax under sub-rule (1) shall be fifty percent (50%) higher if the payee fails to submit proof of submission of return at the time of making the payment.
- The rate of tax under sub-rule (1) shall be fifty percent (50%) higher if the payee does not receive payment by bank transfer.
- Where the payee or the income of the payee, which is subject to tax at source under section 52, is exempted from tax or is subject to a reduced tax rate in an income year, the Board may, on an application made by the payee in this behalf, give a certificate in writing that the payment referred to section 52 for that income year shall be made without any deduction or with deduction at a proportionately reduced rate, as the case may be.