Tax-free ceiling for individual taxpayers has been proposed to be raised at Tk 0.25 million (2,50,000) from the upcoming fiscal year (FY), 2015-16, following increased cost of living and inflation.
The tax-free ceiling for individual taxpayers remains unchanged at Tk 2,20,000 since 2012. It remains unchanged until 2014 despite 7.0 per cent inflation and higher cost of living. The government has increased the tax-free ceiling through the Finance Bill.
The proposed budget for FY 2015-16 also raised the amount of minimum tax for all individual taxpayers to Tk 4,000.
Currently, taxpayers in the city corporation areas pay Tk 3,000 as minimum tax. It is Tk 2,000 for taxpayers in the district towns and municipalities, and Tk 1,000 for other areas.
Tax-free ceiling for women and senior citizens has been raised to Tk 3,00,000 from Tk 2,75,000 in the proposed budget.
Tax-free threshold for physically-challenged taxpayers has been fixed at Tk 3,75,000, while for injured freedom-fighters at Tk 4,25,000, according to the Finance Bill 2015.
Tax-free ceiling for wealth tax or surcharge has been raised slightly to Tk 22.5 million in the proposed budget, while other slabs remain unchanged.
Minimum amount of surcharge has also been set at Tk 3,000 for the well-off people.
The proposed budget also removed parity of income tax measures, making tax treatment equal for the government, semi-government, autonomous and private sector officials.
From the upcoming FY, the government officials have to pay tax on income of their festival allowances and bonus along with basic salary.
Pensioners will get some relief, as payment of tax at source on profit-gain of pensioners saving certificates would be treated as finally paid tax on their income, according to the proposed Finance Bill.
A tax-free ceiling of Tk 1,20,000 or 10 per cent for medical allowances has been set for treatment purpose of the taxpayers, the budget proposal said.
Also, tax-free threshold for house rent allowances has also been proposed at Tk 25,000 or 50 per cent, whichever is lower, of basic salary of the taxpayers.
Some 5.0 per cent or minimum Tk 60,000, whichever is higher of annual allocation, provided by the employers, would be treated as presumptive income of the taxpayers, the budget proposed.
A tax-free ceiling of Tk 25 million has also been set for gratuity income. Workers participation fund would be tax-free, while executives have to pay tax on the income above Tk 120,000.
A new provision of 'scrutiny assessment' of universal self-assessment tax has been proposed in the Finance Bill 2015.
Penalty has been proposed at 2.0 per cent on failure of submission of statements of international transaction. Some 25 authorities concerned will be penalized Tk 50,000 in case of failure of TIN verification.
doulot_akter@yahoo.com
