Deadline for submitting tax returns extended by another month
Tuesday, 30 October 2007
FE Report
The National Board of Revenue (NBR) Monday extended the time for submission of tax return again by another month.
The NBR has for the second time extended the period -- this time up to November 30 from earlier deadline October 31. The first such deadline was set for September 30.
"The board has extended the time considering the post-flood impact on economy, government holidays and unsatisfactory trend of return submission," NBR chairman Mohammad Abdul Majid said.
The NBR has received requests from different quarters, including individuals and trade bodies, for further extension of time.
The NBR chief expressed his optimism that all taxpayers would now take the opportunity, which, he said, would not get any further extension.
The NBR will take action against the tax evaders as per existing income tax law after expiry of the extended time, he said.
"The board has extended the tax return submission time to facilitate those tax payers who are yet to file their tax returns," he said.
Responding to a question on his observation about the trend of tax return filing for the current fiscal, he said: "We are not satisfied over the trend although taxpayers' response gets better at the last moment."
"We are hopeful about getting satisfactory response from the taxpayers during the extended time," he said.
After consulting with the finance adviser, who is now in New York, the board has taken the decision on Monday morning.
The taxpayers have sought more time to submit their returns under the newly introduced 'universal self-assessment' method, which will require some documents, the NBR chief said.
Some taxpayers had been busy declaring their undisclosed income under the NBR offered opportunity, Majid said.
He underscored the need for ensuring 'client friendly environment' in tax offices to encourage the taxpayers.
The NBR usually issued clarifications to resolve confusions on tax payment among the taxpayers, he said referring to Sunday's clarification on saving instruments.
Until October 25, the NBR received tax worth Tk 4.58 billion from 226993 taxpayers.
In the last fiscal, the NBR received tax worth Tk 2.52 billion from 535,994 TIN holders.
Although the number of tax returns submitted, so far, by the assessees during the current fiscal is significantly lower than that of the corresponding period last fiscal, the amount of income tax received until now is higher compared to that of the previous level, the source said.
Compared to the situation during the previous fiscal, the NBR has received so far additional income tax worth Tk 2.06 billion despite lower return submission.
According to a NBR data, submission of return declined by 57.65 per cent while earning from tax increased by 81.92 per cent.
On October 28, NBR high-ups sat in a review meeting, chaired by Tax policy member Ali Ahmed.
There were only 14 working days in October due to government holidays for Eid and Puja festivals.
The meeting discussed the reason behind extension of time.
In the meeting, the NBR authorities focused on some issues like poor response of tax payers in the flood affected areas, number of government holidays for Eid, Puja and other occasions in October.
Some advisers and lawyers were busy with their clients who availed the opportunity to legalise undisclosed income, that expired September 30, the meeting was told.
The board also identified that response of taxpayers declined by 28.62 per cent so far during the current fiscal compared to that of the corresponding period of fiscal 2006-07.
The NBR eyes tax return from over 2.0 million TIN holders (Taxpayer Identification Number).
In case of failure to file tax return in due time, the penalty rate is Tk 1000 at a time and Tk 50 per day.
The National Board of Revenue (NBR) Monday extended the time for submission of tax return again by another month.
The NBR has for the second time extended the period -- this time up to November 30 from earlier deadline October 31. The first such deadline was set for September 30.
"The board has extended the time considering the post-flood impact on economy, government holidays and unsatisfactory trend of return submission," NBR chairman Mohammad Abdul Majid said.
The NBR has received requests from different quarters, including individuals and trade bodies, for further extension of time.
The NBR chief expressed his optimism that all taxpayers would now take the opportunity, which, he said, would not get any further extension.
The NBR will take action against the tax evaders as per existing income tax law after expiry of the extended time, he said.
"The board has extended the tax return submission time to facilitate those tax payers who are yet to file their tax returns," he said.
Responding to a question on his observation about the trend of tax return filing for the current fiscal, he said: "We are not satisfied over the trend although taxpayers' response gets better at the last moment."
"We are hopeful about getting satisfactory response from the taxpayers during the extended time," he said.
After consulting with the finance adviser, who is now in New York, the board has taken the decision on Monday morning.
The taxpayers have sought more time to submit their returns under the newly introduced 'universal self-assessment' method, which will require some documents, the NBR chief said.
Some taxpayers had been busy declaring their undisclosed income under the NBR offered opportunity, Majid said.
He underscored the need for ensuring 'client friendly environment' in tax offices to encourage the taxpayers.
The NBR usually issued clarifications to resolve confusions on tax payment among the taxpayers, he said referring to Sunday's clarification on saving instruments.
Until October 25, the NBR received tax worth Tk 4.58 billion from 226993 taxpayers.
In the last fiscal, the NBR received tax worth Tk 2.52 billion from 535,994 TIN holders.
Although the number of tax returns submitted, so far, by the assessees during the current fiscal is significantly lower than that of the corresponding period last fiscal, the amount of income tax received until now is higher compared to that of the previous level, the source said.
Compared to the situation during the previous fiscal, the NBR has received so far additional income tax worth Tk 2.06 billion despite lower return submission.
According to a NBR data, submission of return declined by 57.65 per cent while earning from tax increased by 81.92 per cent.
On October 28, NBR high-ups sat in a review meeting, chaired by Tax policy member Ali Ahmed.
There were only 14 working days in October due to government holidays for Eid and Puja festivals.
The meeting discussed the reason behind extension of time.
In the meeting, the NBR authorities focused on some issues like poor response of tax payers in the flood affected areas, number of government holidays for Eid, Puja and other occasions in October.
Some advisers and lawyers were busy with their clients who availed the opportunity to legalise undisclosed income, that expired September 30, the meeting was told.
The board also identified that response of taxpayers declined by 28.62 per cent so far during the current fiscal compared to that of the corresponding period of fiscal 2006-07.
The NBR eyes tax return from over 2.0 million TIN holders (Taxpayer Identification Number).
In case of failure to file tax return in due time, the penalty rate is Tk 1000 at a time and Tk 50 per day.