Tax waiver on small dividend

In the financial year 2013-14, the government announced income tax waiver on share dividend earned by a person up to Tk 20,000 to give incentive to small share investors and to support share market as it is one of the way entrepreneurs can collect required capital for their ventures.
The small shareholders of public limited companies (PLCs) are not getting the benefit owing to the procedural complexities of the National Board of Revenue (NBR). For instance, suppose a small shareholder has 4,621 share of a bank which is a public limited company.
The bank approved 15 per cent cash dividend (that is Tk 1.50 for each Tk 10 share) for its shareholders for year the 2014 in the annual general meeting (AGM) held on  March 29, 2015.  The calculated dividend would be Tk 6,931.50. As the shareholder is a small investor, he has no Tax Identification Number.
Bank has deducted 15pc tax at source, that is Tk 1,039.72 and gave him a dividend warrant for Tk 5,891.78. The shareholder concern purchased the 4,621 shares (including previous years' bonus shares) investing Tk 153,160.20 during last couple of years. Indeed the small shareholder earned Tk 5,891.78 in a year against investment of Tk 153,160.20. Is it worth? Not at all.
In this scenario, to encourage small shareholders NBR may make a provision that if a shareholder of a plc earns cash dividend up to Tk 20,000 no Tax at Source will be deducted but if the cash dividend is more than Tk 20,000 10 per cent Tax at Source will be deducted when the shareholder has TIN otherwise 15 per cent tax will be deducted.

 mah120cb@yahoo.com