Tax returns submission must for pvt sector execs

Staff Correspondent | Published: 01:25, Jun 03,2017 | Updated: 01:27, Jun 03,2017

 
 

Finance minister AMA Muhith has proposed to make submission of income tax returns mandatory for executives and managers employed in a business or profession in the private sector from the next fiscal year 2017-18.
Muhith on Thursday placed the Finance Bill-2017 in parliament incorporating a provision in this regard.
Officials of the National Board of Revenue said that the government took the decision to bring more people having taxable income under tax net and increase the amount of pay-roll tax.
In the budget for the last fiscal year, obtaining electronic taxpayers identification number was made mandatory for the groups.
They said that employees holding executive or management positions would have to submit tax returns irrespective of their income, they said.
Most of the employees in the groups are expected to have taxable income as there are assumptions that their salary is higher compared to other employees, they added.
Currently, tax-free annual income ceiling for individual taxpayers is Tk 2.50 lakh.
A high official of the NBR said that salary of an executive or a manger in no way would be lower than the tax-free threshold.
The decision will also increase pay-roll tax, he said.
Currently, there is a total 29 lakh e-TIN holders in the country but only around 16 lakh submitted their income tax returns in the current fiscal year of 2016-2017.
Officials said many of the private sector executives did not submit tax returns despite having taxable income.
Many of them also paid tax at source of different services but they were not under the tax net due to non-submission of returns, they said.

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