Interest income up to Tk 0.15m from savings tools to be made tax-free

FE Team | Published: October 07, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The council of advisers approved Saturday a proposal to amend the Income Tax Ordinance 1984, providing for an increase in the tax-exempt ceiling of the interest income from national savings instruments.
Under the amendment, the ceiling of income tax deduction at the rate of 10 per cent at source from interests or profit of savings certificates has been enhanced to Tk 1,50,000 from the previous level of Tk 25,000, an official handout said.
As a result, individuals earning interest income up to Tk 1,50,000 from investment in saving instruments would not have to pay tax.
However, persons having income over Tk 1,50,000 from other sources would have to pay tax at normal rate through submitting returns, the handout mentioned.
Earlier, the government had imposed 10 per cent tax at source on interest income from the government savings instruments, which came into effect from July 1, 2007.
The imposition of such tax had resulted in a significant fall in the investment in savings certificates, sources said.
Chaired by the Chief Adviser Fakhruddin Ahmed, the weekly meeting of the interim cabinet also gave its approval to the Grameen Bank Ordinance 1983, allowing the bank to extend its operations throughout the country instead of the rural areas.
Under the amendment, the government's share in the Grameen Bank has also been reduced to 15 per cent from 25 percent, said the handout.
The number of government-nominated members in the board of directors of the Grameen Bank has also been reduced to two from three.
Moreover, the chairman of the Grameen Bank will be appointed by its board of directors, not the government.
The council of advisers also approved the Acid Control (Amendment) Ordinance 2007, to include the Law Secretary, the Social Welfare Secretary and the Inspector General (IG) of Police in the Council as members.
The amended Ordinance will also allow the Acid Control Council to co-opt new members.
The meeting, however, reviewed the progress regarding the conversion of the Telegraph and (T&T) Board into a public limited company (PLC) and directed the concerned Ministry to complete the necessary formalities to this effect shortly.