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Income Tax Ordinance, Bangladesh (Applicable Taxes)

Income Tax Ordinance, Section 49(1)(a) read with section 50 (Applicable Taxes)

The salary paid to employees is subject to income tax deduction at source under section 49(1)(a) read with section 50 of the Income Tax Ordinance, at a rate representing the average of the rates applicable to the estimated total income of the worker under the category of salary. As per section 2(58) the term ‘salary’ includes:

  • any pay or wages;
  • any annuity, pension or gratuity;
  • any fees, commissions, allowances, perquisites or profits in lieu of, or in addition to, salary or wages;
  • any advance of salary; and
  • any leave encashment (ie, pay against certain untaken leave).

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