House Rent Deposit In Bank Accounts
NBR exempts owners from maintaining tenants’ register
The National Board of Revenue further relaxed the rules for house rent collection through banks exempting house owners from maintaining a separate register containing particulars of tenants, according to a circular issued on Thursday.
House owners, however, may maintain such register containing tenants’ names, addresses, date of payment of house rents if his aggregate monthly income from house property exceeds Tk 25,000, it said.
In original rule, it was mandatory for house owners to maintain the register.
The circular also said that taxpayers having income from businesses and professions and rented out buildings, flats, apartments, office space, shops, factories for commercial and residential purposes, would have to pay the house rent through either cross-cheque or banking channel.
Otherwise, the expenditure as house rent will not be accepted as allowable business expenditure.
The revenue board also said that foreign nationals (non-resident) would have to pay income tax at the rate of 30 per cent from the current fiscal year as the government increased the highest slab of income tax rate.
According to the income tax law in the country, income tax on foreigners is charged at the highest rate. The highest tax rate was 25 per cent in previous years.
Non-resident Bangladeshis, however, will be charged at the regular rate which is applicable for resident taxpayers, it said.
The revenue board on Thursday issued a circular further amending the provision 8A of Income Tax Rules-1984 regarding maintenance of account in a bank by the owner of house property and clarifying some other issues related to income tax.
The circular also clarifies some other changes brought in the Income Tax Ordinace-1984 as part of the budgetary measures for the fiscal year 2014-2015.
Earlier on July 1, the NBR included the provision 8A in the income tax rules saying that the house owners having an aggregate monthly income above Tk 25,000 as house rent shall maintain a separate register and record regarding particulars of the tenants and the amount received as rent.
Considering the trouble in maintaining the register by the house owners, the revenue board took the decision, officials said.
According to the circular, a house owner whose monthly income from house property exceeds Tk 25,000 will have to deposit the rent in any bank account and submit bank statement to the NBR along with income tax returns.
Originally, the NBR made a mandatory provision for maintaining a separate bank account for depositing house rent.
-With New Age input
