Govt issues order raising tax exemption limit on savings tools income
Thursday, 1 November 2007
FE Report
The government Tuesday issued an order raising the tax exemption ceiling of income accruing from interests institutional savings tools to Tk 150,000 from existing Tk 25,000 per annum.
The banks will deduct 10 per cent tax at source against income from saving instruments in excess of Tk 150,000 per annum.
The income exceeding Tk 150,000 and accruing from such interest earnings for which tax will be deducted at source, will be added with the income from other sources while calculating the total income tax payable for final settlement, sources said.
The tax-free annual income up to Tk 150,000 will not be applicable for those who has an annual income from interest in excess of Tk 150,000 per annum and simultaneously from other sources as well, the sources added.
With the revised ordinance coming into effect from July 1,2007, the National Board of Revenue (NBR) will either adjust or refund the tax already deducted since the date when the earlier order was issued on July 1, 2007.
President Iajuddin Ahmed promulgated the ordinance on Monday (October 29) before his departure for the United States.
The ministry of law, justice and parliamentary affairs issued the ordinance titled 'Income tax (amendment) ordinance'- 2007.
The government has issued the gazette notification amending Ordinance No-XXXVI of 1984, section 52D.
The gazette notification said: "Provided that no tax shall be deducted under this section if the total amount of interest does not exceed one lakh and fifty thousand taka during the income year and notwithstanding anything contained in section 82C, any tax so deducted shall not be treated as final discharge of tax liability under this Ordinance."
Under the Finance Bill 2007, the government had earlier imposed 10 per cent tax for deduction at source from interest income exceeding Tk 25,000 per annum.
Meanwhile, the Bangladesh Bank (BB) arranged for a discussion meeting on November 4 about implementation of the new ordinance.
The BB governor, the NBR chairman and high-ups of all commercial banks and national savings directorate will attend the meeting at the central bank premises.
The government Tuesday issued an order raising the tax exemption ceiling of income accruing from interests institutional savings tools to Tk 150,000 from existing Tk 25,000 per annum.
The banks will deduct 10 per cent tax at source against income from saving instruments in excess of Tk 150,000 per annum.
The income exceeding Tk 150,000 and accruing from such interest earnings for which tax will be deducted at source, will be added with the income from other sources while calculating the total income tax payable for final settlement, sources said.
The tax-free annual income up to Tk 150,000 will not be applicable for those who has an annual income from interest in excess of Tk 150,000 per annum and simultaneously from other sources as well, the sources added.
With the revised ordinance coming into effect from July 1,2007, the National Board of Revenue (NBR) will either adjust or refund the tax already deducted since the date when the earlier order was issued on July 1, 2007.
President Iajuddin Ahmed promulgated the ordinance on Monday (October 29) before his departure for the United States.
The ministry of law, justice and parliamentary affairs issued the ordinance titled 'Income tax (amendment) ordinance'- 2007.
The government has issued the gazette notification amending Ordinance No-XXXVI of 1984, section 52D.
The gazette notification said: "Provided that no tax shall be deducted under this section if the total amount of interest does not exceed one lakh and fifty thousand taka during the income year and notwithstanding anything contained in section 82C, any tax so deducted shall not be treated as final discharge of tax liability under this Ordinance."
Under the Finance Bill 2007, the government had earlier imposed 10 per cent tax for deduction at source from interest income exceeding Tk 25,000 per annum.
Meanwhile, the Bangladesh Bank (BB) arranged for a discussion meeting on November 4 about implementation of the new ordinance.
The BB governor, the NBR chairman and high-ups of all commercial banks and national savings directorate will attend the meeting at the central bank premises.