A new concept called 'tax day' is likely to be introduced in the upcoming fiscal year (FY) to end the traditional practice of the revenue board on extension of deadline for submission of individual tax return.
Officials said the revenue board has made a move for amendment of the income tax law, incorporating a provision under which there will be a cut-off day called 'tax day' as the last date for submission of tax returns by individual taxpayers.
From Fiscal Year 2016-17, the existing provision for extension of time for tax return submission by individuals might be scrapped by incorporating a new provision into the law.
 Under the existing income tax ordinance, individual taxpayers can submit tax returns from July 1 to September 30 of every tax year. However, the National Board of Revenue (NBR) extends the deadline every year twice or thrice following requests from cross-sections of people. The taxpayers have also become habituated to the extension of the deadline for tax- return submission.
To bring a discipline in this sector, the board for the first time has taken a move to incorporate a legal provision under which there will be a legal bar on extension of timeframe for tax return from the next fiscal.
Sources said there might be a disincentive, in monetary form, for individual taxpayers who will submit tax returns after the tax day deadline.
The new system will encourage individual taxpayers to submit tax returns in a festive mood by a specific day, they said.
Finance Minister AMA Muhith is likely to announce the introduction of 'tax day' in his budget speech in parliament on June 02.
Individuals will be able to submit time petition on case-to-case basis, explaining their specific problem, for additional time for return submission. However, they might have to pay a penal tax for delay in submitting returns.
Appreciating the move, tax officials said it is an additional hassle for the taxmen to extend the time for tax returns several times though there is a specific deadline in the law.
"Anticipating further extension of deadline many taxpayers wait until the last minute to submit their tax returns. For this reason, the taxmen have to face a huge rush of taxpayers on a single day," said one field-level tax official.
He pointed out that under the existing income tax law (section 75), the NBR is not empowered to extend the deadline.
"Only Deputy Commissioner of taxes and range officer can extend time on case-to--case basis up to six months. Until now, the NBR has violated the law by extending time in a blanket manner," he said. Â
doulot_akter@yahoo.com
‘Tax day’ from next FY likely
Doulot Akter Mala | Published: May 19, 2016 00:00:00 | Updated: February 01, 2018 00:00:00
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