Banks, FIs asked to update clients\\\' accounts with 12-digit TIN

Bangladesh Bank (BB) has asked all banks and financial institutions (FIs) to update clients' accounts with 12 digit TIN (tax identification number), reports UNB.

As per a directive of the central bank, the account holders have to submit their 12 digit TIN to the banks and financial institutions to update their accounts. Otherwise, 15 per cent will be deducted as tax at source on the interest or profits instead of 10 per cent tax on the date of the payment.

This was stated in a BB circular issued on Tuesday.

The central bank referred to an NBR notice dated October 26, 2014, which said that as per amended provision of the Finance Bill 2014, banks and financial institutions will deduct 10 per cent as 'tax at source' on the day it pays interest or profits to its client if the client has 12-digit TIN.

But, if the client does not have 12-digit TIN, bank or financial institution will deduct 15 per cent as tax at source.