Income Tax Under Self-Assessment System
NBR not to audit if taxpayers show 20pc higher income
The National Board of Revenue will not audit an income tax return submitted under the universal self assessment system if the taxpayer shows 20 per cent higher income than the previous year, officials said. On the other hand, the revenue board will impose penalty on the house owners at the rate of 50 per cent of taxes payable on income derived from house property or Tk 5,000, whichever is higher, for not transacting the house rent through bank, they said.
The revenue board incorporated two separate provisions in the Finance Bill-2014 in this regard.
According to the finance bill, a taxpayer with 20 per cent higher income than previous year will have to provide some documents,
including evidences in support of income exempted from tax, along with the return to be exempted from audit.
Officials said that the provision was included to build up mutual trust and confidence between taxpayers and tax administration.
For all other income taxpayers, the NBR will also not select the return of a taxpayer for audit more than once in three years unless there is any complaint of irregularities to avoid repeated audit of the person.
Same procedure will be applied to the selection for audit in VAT returns Officials said that house owners would have to maintain their accounts in the prescribed manner in which they would have to deposit their income from house property in a separate bank account.
House rent, which the house owners get either in cash or cheque should be deposited in the bank account, they said.
Tenants will also be able to deposit the money directly to the accounts.
‘The responsibility of depositing house rent to the account will go to the house owners and if they do not so, the NBR will impose the penalty of 50 per cent of taxes payable on income derived from the house or Tk 5,000, whichever is higher,’ a high official said.
-With New Age input
