Rule on bank account maintenance issued

The National Board of Revenue (NBR) Tuesday issued a rule on maintenance of mandatory bank accounts by house owners having an aggregate monthly income above Tk 25,000 as house rent.
The rule, effective for both commercial and residential buildings, came in force from Tuesday in a bid to ensure transaction of house rents through banking channel.
According to the rule, house owners will have to maintain separate registers to record the particulars of the tenants and the sums received or all the receivables.
A separate bank account will have to be opened by the house owner, where either the house owner or the tenant will deposit the house rents every month.
The rule mentioned: "…such person shall operate a separate bank account in any scheduled bank for the purpose of depositing rent of the house property or its unit and deposit such rent or any advance received or receivable from such house property or its unit in such bank account."
According to an official estimate, a house owner receiving monthly house rents above Tk 25,000 would have a minimum annual income of Tk 3,00,000.
The person would naturally be a taxpayer as the tax-free income ceiling for an individual is Tk 2,20,000.
Officials said house owners, not tenants, will be held responsible for not receiving the house rent through banking channel.
House owners will have to pay penalty at a rate of 50 per cent of taxes payable on house property income or Tk 5,000, whichever is higher, in case of not complying with the order on house rent transaction through banks. The penalty provision has been incorporated in the Finance Act 2014.
"Where any person, having income from house property, has, without reasonable cause, failed to comply with the provisions of any order or rule made in pursuance of, or for the purposes of section 35(2), the Deputy Commissioner of Taxes, shall impose upon him a penalty of 50 per cent of taxes payable on house property income or Tk 5,000, whichever is higher," said the Finance Act 2014.
In another rule, issued Tuesday, NBR imposed tax on medical expenses of an individual employee, if it exceeds 10 per cent of the basic salary or Tk 60,000 in a year.
"Where any amount is received or receivable by the employee by way of hospitalisation, medical expenses or medical allowance, the amount, if any, so receivable or received exceeds ten per cent of the basic salary or Tk 60,000 annually, whichever is less, shall be included in his income," the rule mentioned.