Tax Deduction at Source (TDS) in Bangladesh for FY 2024-25: Comprehensive Guide by TRW Law Firm
Tax Deducted at Source (TDS) is a cornerstone of the tax administration framework in Bangladesh. It is a withholding tax mechanism whereby tax is deducted from income at the time of payment and remitted to the government. With the enactment of the Income Tax Act 2023 and the promulgation of the Withholding Tax Rules 2024 (Utse Kor Bidhimala 2024), the TDS regime has undergone significant reforms. This article, curated by TRW Law Firm, provides a comprehensive overview of the TDS Rates Chart FY 2024-25, with relevant section references, annexures, and key updates.
Understanding TDS: Legal Framework
- Statutory Base: Income Tax Act 2023
- Supplementary Rules: Withholding Tax Rules 2024
- Governing Authority: National Board of Revenue (NBR)
- Compliance Mandate: Mandatory for all withholding entities (government, non-government organizations, companies, and financial institutions)
Key Highlights of Changes in FY 2024-25
𞟩 Enactment of new Income Tax Act, replacing older references 𞟩 Simplified structure of Annexures across goods, services, intangibles, and non-residents 𞟩 Revised rates on local L/C, digital services, and freight agents 𞟩 Increased scrutiny and penalties for non-compliance
Full TDS Rates Chart FY 2024-25 with Section References
The following chart consolidates the updated TDS rates, relevant sections from the Income Tax Act 2023, and annexure references as per the Withholding Tax Rules 2024.
| SI | Heads | Ref | Rate |
| 01 | Salaries | Section 86 | Average |
| Salaries (Government) | Section 86 (3) | Average | |
| 02 | Payment to Participation Fund, Welfare Fund and Workers’ Welfare Foundation 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 against 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 all kinds of fruits and computer or computer accessories. 1% (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, cassia leaf, jute, cotton and yarn. |
| 12 | Payment by cellular mobile phone operator | Section 98 | 20% |
| 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% – Trust, Association of Person (AoP), Company 10% – Primary Educational Institute, Chartered Accountants or Cost and Management Accountants or Chartered Secretaies Institute 10% – Any other person except as above |
| 17 | Interest income on resident | Section 104 | 10% |
| 18 | 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) |
| 19 | Interest on securities | Section 106 | 5% |
| 20 | Discount on the real value of Bangladesh Bank Bills | Section 107 | Maximum |
| 21 | 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 |
| 22 | Rental income | Section 109 | 5% |
| 23 | Services from convention hall, conference centre etc. | Section 110 | 5% |
| 24 | 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 |
| 25 | Export cash subsidy | Section 112 | 10% |
| 26 | Purchase of power | Section 114 | 6% |
| 27 | Any sum paid by real estate developer to land owner | Section 115 | 15% |
| 28 | Commission or remuneration paid to agent of foreign buyer | Section 116 | 10% |
| 29 | Dividends | Section 117 | Company – applicable rate for such company Resident/nonresident Bangladeshi person other than company -If TIN, 10% -If No TIN, 15% |
| 30 | Income from lottery | Section 118 | 20% |
| 31 | Income of non-residents | Section 119 | Annexure 4 |
| 32 | Import | Section 120 | Appendix 5 |
| 33 | Recruiting agents | Section 121 | 10% BDT 50,000 as advance tax for license or renew of license |
| 34 | C & F Agent | Section 122 | 10% |
| 35 | Deduction of tax from export proceeds | Section 123 | 1% of the total export proceeds |
| 36 | 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 | 7.5% 10% in case of commission received by Freight Forward Agent but 2.5% in case of gross bill including commission. |
| 37 | Transfer of property | Section 125 | Appendix 6 |
| 38 | Collection of tax from developer or real estate developer | Section 126 | i) in case of building, house, flat, apartment or floor space constcructed or used for residential pupose – BDT 1,600 per square metre ii) in case of building, house, flat, apartment or floor space constcructed or used not for residential pupose – BDT 6,500 per square metre iii) in case of land with building, house, flat, apartment or floor space – 5% of deed value provided that the tax shall not exceed the above rates. |
| 39 | Collection of Tax from lease of property | Section 128 | 4% |
| 40 | Manufacturer of nonmechanical cigarette (Bidi) | Section 129 | 10% of the value of banderols |
| 41 | Brick Manufacturer | Section 130 | Tk.80,000/- not exceeding 108,000 square feet sized brickfield, Tk.120,000/-108,000 – 124,000 square feet sized brickfield, Tk.160,000/-exceeding 124,000 square feet sized brickfield, Tk. 220,000/- brickfield not mentioned as above |
| 42 | 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 |
| 43 | 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 |
| 44 | Sale by public auction | Section 133 | 10% of sale price |
| 45 | Share transfer | Section 134 | 15% on gain |
| 46 | Transfer of securities | Section 135 | 10% on difference between transfer price and acquired price |
| 47 | Transfer of shares of any Stock Exchange | Section 136 | 15% on gain |
| 48 | 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 |
| 49 | Collection of tax from motorvehicles plying commercially | 138 | Annexure 5 |
| 50 | 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 |
TDS on Salaries and Compensation
Section 86:
- Salaries: Average rate based on employee’s taxable income
- Government Salaries: Section 86(3), taxed at the same average rate
Section 88:
- Payments to Participation Fund, Welfare Fund, Workers’ Welfare Foundation Fund: 10%
Section 93:
- Actors, Producers, Media Personnel:
- 10% on purchase of TV/film content
- 10% on payments to artists
Section 111:
- Compensation for property acquisition:
- 6% for urban areas
- 3% for rural areas
TDS on Contracts, Goods & Services
Section 89: Execution of Contract (Annexure 1)
- General Supply: 5%
- Specific Goods: 0.5% to 3% (e.g., edible oils, MS billets, recycled lead)
- Construction/Manufacture: 7%
Section 90: Services (Annexure 2)
- Professional/Consulting Services: 10%
- Creative Media, PR, Event Management: 10% or 2% based on gross or fee
- Freight Forwarding (Commission): 10%; Gross Bill incl. Commission: 2.5%
Section 91: Intangible Assets (Annexure 3)
- Up to Tk 25 lakh: 10%
- Over Tk 25 lakh: 12%
TDS on Non-Residents (Section 119)
Refer to Annexure 4:
- Advisory/Consultancy/Legal/Technical: 20%
- Royalty, Certification, Satellite Rent: 20%
- Advertisement (Making): 15%
- Air/Water Transport (not exempt): 7.5%
- Artist/Player/Entertainer: 30%
- Dividends: 20% (companies); 30% (individuals)
TDS on Financial Transactions
- Section 96: Letter of Credit Commissions – 5%
- Section 97: Local L/C Payments:
- Trading goods: 3%
- Distributor payments: 1%
- Specific agro goods: 1%
- Section 102-106: Bank Interest, Securities, Savings:
- Trusts/Companies: 20%
- Individuals/Institutes: 10%
- Savings Instruments (below Tk 5L): 0%
TDS on Rental, Real Estate & Utilities
- Section 109: Rental Income – 5%
- Section 115: Payments from real estate developer to landowner – 15%
- Section 126: Collection from developers (sq.m based)
- Section 128: Tax on lease – 4%
- Section 130: Brick Manufacturer (Fixed rate depending on area)
TDS on Digital & Communication Services
- Section 98: Mobile Operator Payments – 20%
- Section 108: International Gateway Operators:
- 1.5% of total revenue
- 7.5% on payments to ICX/ANS/BTRC
- Section 90(15): Internet Service – 10%
- Section 90(7): Mobile Banking Agents – 12%
TDS on Business Entities
- Section 112: Export Subsidy – 10%
- Section 123: Export Proceeds – 1%
- Section 100-101: Insurance Commission & Survey Fees – 5%–15%
- Section 117: Dividends:
- With TIN: 10%
- Without TIN: 15%
TDS on Property Transfers
- Section 125: Property Transfer Tax (See Appendix 6)
- Section 134-136: Share Transfers:
- General Transfers: 10%–15%
- Stock Exchange Transfers: 15%
- Stock Exchange Member Transactions: 0.05%
Transport Sector: TDS Compliance
Section 138 & 139 (Annexure 5)
- Buses, Trucks, Tank Lorries, Taxis, Inland Ships – Fixed amount depending on type and size
Simplified Summary Table
| Category | Section | TDS Rate |
|---|---|---|
| Salaries | 86 | Average |
| Contract Execution | 89 | Annexure 1 (0.5% – 7%) |
| Services | 90 | Annexure 2 (2% – 12%) |
| Intangible Assets | 91 | 10% – 12% |
| Advertisement (Media) | 92 | 5% |
| Local L/C Payments | 97 | 1% – 3% |
| Mobile Operators | 98 | 20% |
| Export Subsidy | 112 | 10% |
| Rental Income | 109 | 5% |
| Dividends (w/ TIN) | 117 | 10% |
| Dividends (no TIN) | 117 | 15% |
| Interest Income | 102-106 | 10% – 20% |
| Transfer of Shares | 134-136 | 10% – 15% |
| Motor Vehicles (Commercial) | 138 | Fixed rate (Tk 4,000 – 37,500) |
Why Compliance Matters
Failure to deduct and deposit TDS accurately and timely can lead to:
- Imposition of fines under the Income Tax Act 2023
- Disallowance of expenses
- Interest and penalty
- Legal consequences under tax evasion provisions
How TRW Law Firm Can Help
TRW Law Firm provides industry-leading tax advisory, compliance management, and litigation services. Our specialized tax consultants and chartered accountants:
- Analyze client payment obligations for accurate TDS deduction
- Provide cross-border tax compliance for non-resident payments
- Handle audits, queries, and disputes from the NBR
- Implement enterprise-wide TDS compliance systems for corporations
| SI | Description | Rate |
| 1 | In case of an industrial undertaking engaged in the production of MS Billets and locally procured MS Scrap | 0.5% |
| 2 | In case of oil supplied by oil marketing companies engaged in marketing of petroleum oil and lubricant | 0.60% |
| 3 | In case of oil supplied by dealer or agent (excluding petrol pump station) of oil marketing companies, on any amount | 1% |
| 4 | In case of supply of paddy, rice, wheat, potato, fish, meat, 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 | 1% |
| 5 | In case of supply of all types of fruites | 2% |
| 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 supply of oil by any company engaged in oil refinery, on any amount | 2% |
| 8 | In case of company engaged in distribution gas, on any amount | 2% |
| 9 | In case of company engaged in gas transmission, on any amount | 3% |
| 10 | In case of supply of Extra High Voltage Power Cable 33KV to 500KV by local manufacturers having own Vertical Continuous Vulcanization line | 3% |
| 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 recycled lead | 3% |
| 13 | In case of supply of industrial raw materials to a manufacturer | 3% |
| 14 | Goods supplied in any other cases not mentioned above from serial 1 to 12 and in all other cases per section 89 | 5% |
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 agency; (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 or agent of mobile banking operation | 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- On commission or fee On gross bill amount | 10% 5% |
| 13 | (i) Transport service, vehicle rental service, carrying service and repair & 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, dirtibutor, agency or channel partner, by any names deliverying services engaged in mobile financial services | 10% |
| 17 | Commission of freight forward agent | 10% |
| 18 | Gross bill including commission or gross bill except commission of freight forward agent | 2.5% |
| 19 | Any other service which is not mentioned in above from serial 1 to 18. | 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 except areas mentioned per section 259 and 260 | 7.5% |
| 15 | Manufacturing, process or conversion, construction, engineering or any similar works by contractor, sub-contractor and sub-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 |
Final Thoughts
The TDS framework in Bangladesh is detailed, nuanced, and critical for maintaining fiscal discipline in organizations. With the Income Tax Act 2023 and Withholding Tax Rules 2024 in effect, the accuracy of deductions, section-wise application, and real-time compliance is more important than ever. TRW Law Firm remains your most trusted partner for navigating these complexities.
Contact TRW Law Firm
Phone: +8801708000660, +8801847220062, +8801708080817
Email: info@trfirm.com, info@trwbd.com, info@tahmidur.com
Offices:
- Dhaka: House 410, Road 29, Mohakhali DOHS
- Dubai: Rolex Building, L-12 Sheikh Zayed Road
For a detailed PDF version of the TDS Rates Chart FY 2024-25, visit tahmidurrahman.com.