Four categories of people relieved

Four categories of people have been relieved of mandatory submission of tax returns if they don't have taxable income by relaxing the rules to avert unnecessary hassles.

The National Board of Revenue (NBR) has relaxed the rules and its income-tax wing excluded these categories of people from the compulsion of submitting tax returns if their annual incomes do not exceed the tax-free threshold of Tk 220,000 for individual taxpayers.

From the current financial year, people who have Taxpayer's Identification Number (TIN), a land telephone number, a multistoried building above 1600 square feet or are candidates for Union Parishad (UP) election will be exempted from submission of tax returns if they have income below the taxable limit.

These four categories of taxpayers are not bound to submit tax returns if they did not have taxable income in the last three consecutive years.

The income tax department has amended the income tax ordinance in the current FY 2014-15 to make the matter simple. The NBR has clarified the amended rules by issuing a circular recently.

A senior NBR official said many of the common people, including senior citizens and housewives, had been compelled to submit tax returns until the previous year despite not having taxable income.

"There is no justification of forcing people to visit tax offices and submit nil returns if they do not have taxable incomes," he said.

Under the existing income tax ordinance of 1984, obtaining TIN is mandatory for availing 18 services from public and private sectors, including car registration and fitness renewal, trade licence, opening letter of credit (L/C) and so.

Until FY 2013-14, a TIN-holder had to submit annual tax returns for three consecutive years despite not having taxable income. Later, the taxpayer can apply to his respective Deputy Commissioner of Taxes (DCTs) for closing his tax files.

The procedure has created an unnecessary burden of nil tax returns on the taxmen and hassle to the taxpayers.

From July, 1, 2014, the said categories of TIN-holders would be exempted from submission of tax returns.

However, the NBR circular made submission of TIN certificates mandatory for candidates in Upazila (district town), Pourashava, City Corporation and Jatiya Sangsad elections.