Business

Advertisement

 

NBR unveils 1-page tax returns form for marginal taxpayers

Staff Correspondent | Published: 22:48, Jul 02,2020

 
 

The National Board of Revenue unveiled a one-page income tax returns form for marginal taxpayers to simplify the tax payment process and encourage people to file tax returns.

The newly introduced tax returns form will be applicable for individual taxpayers with taxable income and gross wealth not exceeding Tk 4 lakh and Tk 40 lakh respectively.

The new form incorporated in the Income Tax Rules-1984 came into effect from July 1, according to a Gazette notice of the NBR.

An assessee who owns a motor car or has an investment in house property, or an apartment in any city corporation area will not be eligible for using the one-page tax returns form, it said.

Through the same notice, the revenue board also reduced the advance income tax (AIT) on the supply of essential foods, fruits, jute and cotton yarn to 2 per cent.

Until June 30, the tax rate was 2 per cent and 5 per cent depending on the value of the goods.

The products include rice, wheat, potato, onion, garlic, peas, chickpeas, lentils, ginger, turmeric, dried chili, pulse, maize, coarse flour, flour, salt, edible oil, sugar, black pepper, cinnamon, cardamom, clove, date, cassia leaf, jute, cotton yarn and all kinds of fruits.

Income tax officials said that the NBR introduced the form as part of simplification of the tax return filing process so that the marginal taxpayers could file tax returns smoothly.

Taxpayers with taxable incomes up to the specified limit will even not need to take help from tax lawyers or others in filing the returns which discourage many people from filing returns, they said.

Finance minister AHM Mustafa Kamal in his budget speech announced the introduction of the returns form to facilitate return submission by the marginal taxpayers.

He hoped that the taxpayers would feel proud to be partners in the development of the country by paying taxes and easily submitting tax returns using the simplified return form.

According to the new form, an individual will have to furnish the data of his or her total taxable income, gross wealth, amount of tax, name of bank and challan number, source of income, among other general information including name, present and permanent addresses, taxpayers identification number (TIN), assessment year and name and circle of tax zone.

The taxpayer will have to declare that he or she is eligible for the return form and does not own a motor car or have investments in house property or apartments in a city corporation area.

The officials said that with the introduction of the return form, submission of assets and lifestyle statement with the income tax returns became optional for individual taxpayers with gross assets worth below Tk 40 lakh.

A provision making submission of assets and lifestyle statement optional has also been incorporated in the Income Tax Ordinance-1984 through the Finance Act-2020, they said.

Until the last fiscal year of 2019-2020, taxpayers who owned gross assets worth Tk 25 lakh were exempted from filing the statement, known as the statement of assets, liabilities and lifestyle, with the returns.

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

 

Advertisement

images