DMD Circular No. 01: Source Tax Deduction from the Interest of National Savings Schemes (Sanchaypatra)

Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh

Data Management Department (Prize Bond, Sanchaypatra and Sanchaybond Branch)

Circular No.-DMD-01/2017 Date: 27/04/2017 AD Director/General Manager Bangladesh Bank Motijheel, Dhaka/Chittagong/Khulna/Rajshahi/Bogura/Sylhet/Barisal/Rangpur/Mymensingh/Sadarghat, Dhaka.

Dear Sir,

With reference to "Source Tax Deduction from the Interest of National Savings Schemes (Sanchaypatra)".

2. Attention is drawn to your Circular Letter No.-DMD-01/2016 dated 07/09/2016 AD of this department.

3. In accordance with the clarification regarding the Income Tax Act, 2016, the decision of the National Board of Revenue in its Circular No.-01(Income Tax)/2016-2017 dated 18/08/2016 and their letter No. 08.01.0000.030.07.006.2014/329 dated 08/03/2017, you are advised to continue deducting source tax at the rate of 5% from the interest received upon cashing Savings Instruments (Sanchaypatra) such as National Savings Certificates, Savings Certificates, Savings Bonds, Prize Bonds, or other savings instruments issued by the Government on or after July 1, 2016.

4. All other decisions/instructions of Circular Letter No.-DMD-01/2016, dated 07/09/2016 AD, shall remain unchanged.

5. It is requested to inform the scheduled banks under your jurisdiction regarding the aforementioned instructions.

Yours faithfully,

(A.F.M. Shahinul Islam) General Manager (In-charge) Phone: 9530209