The government has made income tax deduction at source mandatory for government officials and employees whose salaries exceed a certain threshold. The Office of the Controller General of Accounts (CGA) issued an official directive to this effect on Monday (November 10).
According to a circular from the CGA’s Accounts and Procedures Branch, under the Income Tax Act 2023, any male government employee with a monthly basic salary of Tk 26,785 or more, and any female employee with a monthly basic salary of Tk 30,357 or more, has income exceeding the tax-free limit. Therefore, income tax must be deducted at source while preparing their salary bills.
The directive further states that, in accordance with Treasury Rules SR 115, the responsibility for deducting income tax and other applicable charges from the salary bills lies with the respective disbursing officers.
Earlier, on November 7, NBR Chairman Md. Abdur Rahman Khan sent a letter to the Secretary of the Ministry of Defence, instructing the deduction of income tax at source from employees whose salaries exceed the taxable threshold.
In the letter, the NBR chief noted that despite having taxable income, a large number of officials and employees were not having income tax deducted from their monthly salaries. He emphasized that, under the Income Tax Act 2023, source-based tax deduction from the salaries of such employees is mandatory.
He also requested all concerned authorities to ensure that income tax is deducted at source before disbursing salaries and allowances, adjusting any advance taxes already paid from other sources.
