Dhaka Stock Exchange (DSE) has regretted a revenue board's request regarding updating information on 12-digit TIN (Taxpayer's Identification Number) of BO (beneficiary owner's) account holders to avoid investors' misinterpretation, officials said. Â
The premier bourse 'verbally' regretted the request of National Board of Revenue (NBR) after getting a letter from the revenue board.
A top official of the premier bourse said the NBR sent the letter to the premier bourse for issuing a circular so that their TREC (trading right entitlement certificate) holders update their clients' TIN information.  Â
"TIN has not been made mandatory for BO holders of the capital market. So, a misinterpretation will be created among investors if we issue a circular to update the information of TIN," said the DSE official.
In the subsection (1) of section 54 of Income Tax Ordinance, 1984, the government brought an amendment stating that 15 per cent tax source will be deducted from cash dividends of BO holders, other than companies, if they fail to submit TIN certificate.
And 10 per cent tax at source will be deducted from cash dividends received by BO holders if they submit TIN certificate.
"Some difficulties are being faced while deducting tax at source from the cash dividends received by BO holders as many of them are yet to update their TIN information," the NBR letter said.
Under such circumstance, the DSE has been requested to take necessary initiative so that BO holders having TIN update such information immediately, the NBR letter said.
The DSE official said government's revenue mainly comes from daily turnover of the capital market.
"So, the main of source of revenue earnings may be hampered if any misinterpretation is created among investors following our circular regarding updating of TIN information. That's why we verbally regretted the NBR's request," the DSE official said. Â
Insiders said meanwhile a rumour is created in the capital market that the TIN has been made mandatory for the investors of capital market.
"Some persons have made phone calls to me to be informed whether the TIN has been made mandatory for investors. TIN is not mandatory. Someone will have to pay 15 per cent tax at source instead of 10 per cent if he has no TIN," said Syed Sajid Husain, the managing director of Chittagong Stock Exchange (CSE).
The port city bourse managing director said they have not yet received any letter from the revenue board to update the information of TIN.  Â
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