NBR SPOT ASSESSMENT
Upazila businesses, professionals to get Tk 2,000 tax cut
The National Board of Revenue has lowered income tax for businesses and professionals in upazilas under the spot assessment system by Tk 2,000 in the current fiscal year to encourage them to be registered as taxpayers and pay tax, officials of the NBR said.
The officials said the revenue board had also lowered the ceiling of initial capital for businesses in upazilas to be assessed under the mechanism to Tk 6 lakh from Tk 8 lakh.
Businesses in upazilas will have to pay Tk 1,000 instead of Tk 3,000 under the spot assessment, they said.
Under the spot assessment system income tax officials visit different places with one-page tax returns and simplified TIN application forms to bring businesses and professionals under the tax net.
In this fiscal year the revenue board has also raised the maximum amount of income tax to Tk 10,000 and the ceiling of initial capital to Tk 15 lakh for businesses in any areas of the country under the spot assessment.
The revenue board has already amended Income Tax Rules-1984 raising the maximum tax rate and ceiling of capital for businesses in any areas of the country.
Under the amendment, the tax administration has increased the slabs of tax rate and initial capital for businesses and slabs of tax rate and years of profession for professionals to four from two.
In the just concluded fiscal year 2012-2013, the minimum income tax was Tk 3,000 for the businesses with minimum initial capital up to Tk 8 lakh while it was Tk 5,000 for the businesses with capital above Tk 8 lakh.
In case of professionals like physicians and lawyers, the rate was Tk 3,000 for those having up to 5 years of career and Tk 5,000 for those having up to 10 years of career.
As per the existing rules, small businesses and professionals, enjoying the reduced tax rates under spot assessment, can pay the same amount of tax under the system for the next two years.
The NBR, however, may change the rules in the current fiscal year through a notification that may be issued by the end of this month or early in September, NBR officials said.
According to the new rules, businesses at municipality in the district headquarters and other areas with initial capital up to Tk 7 lakh will have to pay Tk 2,000 in income tax under the spot assessment system.
Businesses in any areas of the country with capital up to Tk 8 lakh will have to pay Tk 3,000 in income tax, with capital up to Tk 10 lakh will have to pay Tk 5,000 and with capital up to Tk 15 lakh will have to pay Tk 10,000.
Physicians, lawyers, chartered accountants and other professionals in upazilas whose professional career has not exceeded three years will have to pay only Tk 1,000 instead of Tk 3,000.
Professionals at municipality in district headquarters and other areas with up to four years of career will have pay Tk 2,000 in income tax, professionals in any areas of the country whose professional career has not exceeded five years will have to pay Tk 3,000 and whose career has not exceeded 10 years Tk 5,000.
-With New Age input
