Owners of houses are set to receive rents from tenants through banking channels from the upcoming fiscal year if their aggregate amount of rents exceeds Tk 25,000.
A dedicated bank account will have to be opened by the house owners where either tenants or the house owner will deposit the house rents every month, said a senior tax official.
The official said the measure has been incorporated in the proposed budget to ensure recorded transaction of house rents.
"A house owner receiving monthly house rents above Tk 25,000 will have a minimum annual income of Tk 3,00,000. The person would naturally then be a taxpayer as tax-free ceiling for an individual taxpayer is Tk 2,20,000," the official explained.
House owners will be held responsible for not receiving the said house rent through banking channel, not tenants, he added.
The official, however, said the implementation procedures for the measure are under process and those would be finalised within month.
The official said the National Board of Revenue (NBR) is studying the rules and procedures of house rent related measure that has been incorporated in the Finance Bill-2014.
House owners might have to pay penalty at a rate of 50 per cent of taxes payable on house property income or Tk 5,000, whichever is higher, from the upcoming fiscal year (FY) in case of not complying with the order on house rent transaction through banks.
The penalty provision has been incorporated in the proposed Finance Bill-2014.
"Where any person, having income from house property, has, without reasonable cause, failed to comply with the provisions of any order or rule made in pursuance of, or for the purposes of section 35(2), the Deputy Commissioner of Taxes, shall impose upon him a penalty of 50 per cent of taxes payable on house property income or Tk 5,000, whichever is higher," said the Finance Bill-2014.
Meanwhile, the measure has evoked mixed reaction among house owners, tenants and former tax officials.
Chowdhury M Sayedul Huq, a house owner in the city's Mogbazar area, said the system of house rent collection might give rise to disputes with tenants.
"The government will have to make it clear what would be done if the cheques issued by tenants are dishonoured. Also, if anyone has several tenants in small units, collection procedure of house rents through banking channels will be lengthy one," he added.
There are tenants with small income who don't have any bank accounts and also their house owners do not have the same, he added.
The issues need to be cleared before imposition of the rules, he said.
Former member of income tax policy Aminur Rahman welcomed the measure but found challenges in its implementation.
"There might be a trend on double transaction like companies' duel account maintenance. Actual house rent receipt might be hidden," he said.
Taxmen need effective machinery and data-base to find out concealment, he added.
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