NBR preparing form for banks on savings tool declaration
Monday, 20 August 2007
FE Report
The National Board of Revenue (NBR) is preparing a uniform form for the banks to facilitate declaration by the depositors about their savings certificates.
This was disclosed by NBR's Tax Policy Member Ali Ahmed at a meeting with the bankers, held at the central bank Sunday.
Among others, Bangladesh Bank Executive Director Yasin Ali and General Manager of the Forex Reserve and Treasury Management Department Belayet Hossain also attended the meeting.
The NBR has already sent a draft of the form to the National Savings Directorate in this connection, the meeting sources said.
The declaration forms will be preserved by the banks concerned and, if necessary, copies of them will have to be provided to other banks to avoid any tax evasion.
Sources, however, said the banks will not be responsible for any false declaration by the savings certificate holders.
During the meeting, the NBR official explained different issues relating to calculation of tax on annual interest income exceeding Tk 25,000 from savings instruments.
The government has levied 10 per cent tax, deductible at source, on annual interest income exceeding Tk 25,000 from savings instruments.
The tax measure came into effect from July 1 last, as per an NBR order issued earlier.
Under the new tax measure, the investors having earned an interest income of less than Tk 25,000 annually will have to make a declaration to the sellers of the savings instruments that they have not purchased such instruments from any other institutions and that the total interest income from the same will not exceed Tk 25,000 annually.
However, the total interest income from such savings instruments will be subjected to tax deduction at a rate of 10 per cent, if the investors or taxpayers concerned express their inability to make such declaration.
Currently, three government approved savings instruments are on sale. The instruments are: 5-year Bangladesh Sanchaya Patra, 3-year Savings Certificate (interest paid on quarterly-basis) and 5-year Pensioners Sanchaya Patra (interest paid on quarterly-basis) bearing interest rates of 12 per cent, 11.50 per cent and 12.50 per cent respectively.
The National Board of Revenue (NBR) is preparing a uniform form for the banks to facilitate declaration by the depositors about their savings certificates.
This was disclosed by NBR's Tax Policy Member Ali Ahmed at a meeting with the bankers, held at the central bank Sunday.
Among others, Bangladesh Bank Executive Director Yasin Ali and General Manager of the Forex Reserve and Treasury Management Department Belayet Hossain also attended the meeting.
The NBR has already sent a draft of the form to the National Savings Directorate in this connection, the meeting sources said.
The declaration forms will be preserved by the banks concerned and, if necessary, copies of them will have to be provided to other banks to avoid any tax evasion.
Sources, however, said the banks will not be responsible for any false declaration by the savings certificate holders.
During the meeting, the NBR official explained different issues relating to calculation of tax on annual interest income exceeding Tk 25,000 from savings instruments.
The government has levied 10 per cent tax, deductible at source, on annual interest income exceeding Tk 25,000 from savings instruments.
The tax measure came into effect from July 1 last, as per an NBR order issued earlier.
Under the new tax measure, the investors having earned an interest income of less than Tk 25,000 annually will have to make a declaration to the sellers of the savings instruments that they have not purchased such instruments from any other institutions and that the total interest income from the same will not exceed Tk 25,000 annually.
However, the total interest income from such savings instruments will be subjected to tax deduction at a rate of 10 per cent, if the investors or taxpayers concerned express their inability to make such declaration.
Currently, three government approved savings instruments are on sale. The instruments are: 5-year Bangladesh Sanchaya Patra, 3-year Savings Certificate (interest paid on quarterly-basis) and 5-year Pensioners Sanchaya Patra (interest paid on quarterly-basis) bearing interest rates of 12 per cent, 11.50 per cent and 12.50 per cent respectively.