Taxpayer’s identification number holders without having taxable income in three years in a row will not have to submit income tax returns from the next fiscal year, officials said.
They said that the Finance Bill-2014 relaxed some conditions of the Income Tax Ordinance-1984 related to the mandatory submission of income tax returns by everybody having taxpayer’s identification number.
According to the proposal, people having a minimum two-storey building with at least 1,600 square feet of plinth area and subscribers of telephone will also be exempted from filing tax returns from the next year, if the proposal is passed in the parliament later this month.
The finance bill also proposed to exempt the candidates in Union Parishad election from mandatory submission of income tax returns, officials said.
The finance bill also proposed to make mandatory for candidates in any election in Upazilla, Paurasabha, city corporations and national parliament to receive taxpayer’s identification number.
Currently, submission of income tax return by the candidates is mandatory but there are no provisions in the law for receiving TINs by them.
Earlier, taking the advantage of the legal loopholes, many candidates did not submit returns before elections, officials said.
According to the existing provision of the income tax ordinance, everyone have to submit income tax returns always, once he or she receives a TIN for any purpose specified in the ordinance.
Taxmen can impose penalty on TIN holders in case of failure in filing returns.
‘The provision of mandatory return submission for every TIN holder and imposition of penalty in case of failure created a fear among people from registering with the NBR as a taxpayer,’ an NBR official said.
People need to receive TIN certificates for getting different kinds of services and licences from different government and private organisations including Bangladesh Road Transport Authority, banks, city corporations, gas and electricity connection providing companies, city development agencies and land registration offices, he said.
But many of them do not have taxable income for many years but are forced to file returns creating hassle for them, he added.
‘Potential taxpayers remain away from taking TINs and filing returns observing or hearing hassles of TIN holders as the existing rule provides a notion that TIN holders will always face sufferings by the taxmen irrespective of having taxable income or not,’ he said.
Considering the issues, the NBR decided to relax the rule in this connection, he said.
Now, people having taxable income in the financial year or taxed for any year of the three previous years and people in some other categories specified in the article 75 of the ordinance
will have to submit income tax return, officials said.
Through another proposal, the NBR decided to make TIN mandatory for purchasing of land, building or an apartment situated in any Paurasabha of a district headquarters with deed value of more than Tk 1 lakh.
-With New Age input
