The National Board of Revenue has raised the limit on income tax payment through treasury challan to Tk 50,000 from Tk 10,000 to improve instant cash flow to the government exchequer.
The decision was taken following a finance ministry committee recommendation for facilitating quick deposit of tax money to the state coffer as tax payment through other modes like pay order, demand draft and account payee cheque cause delay.
Income tax wing of the revenue board on December 4 issued a pre-notification containing the proposed amendment to the Income Tax Rules-1984 in this connection.
The tax authority in the notification sought suggestion or objection, if any, on the proposed amendment within 15 days.
The amendment would be considered final if there is no suggestion or objection within the given time, according to the notification.
Now, taxpayers will be able to pay up to Tk 50,000 in tax through treasury challan, a prescribed form used in depositing any government tax and fee, once the amendment becomes final.
According to the income tax rules, taxpayers now can pay taxes through pay order, demand draft and account payee cheque of scheduled banks along with treasury challan.
But there is a limit on tax payment through treasury
challan at Tk 10,000.
Taxpayers can also pay tax in any amounts through electronic payment system and there is also no limit on tax payment through pay order, demand draft or cheque.
Officials said that the finance ministry committee found that the taxes paid through pay order or bank cheque were finally deposited to the government exchequer late after completing all the procedures.
Tax officials convert all pay orders and cheques into treasury challan before depositing those to the exchequer.
Sometimes, tax officials deposit the taxes even several months after paying by taxpayers though there are instructions of the NBR for depositing the taxes within 24 hours of receiving pay orders and cheques from taxpayers.
The government does not receive its revenue immediately after taxpayers make the payment due to procedural delays.
On the other hand, the taxes paid through treasury challan instantly reach to the exchequer, helping the government to meet its regular expenses, they said.
Delay in getting its revenue on time affects the interest expenditure of the government, they added.
The government in 2003 introduced the provision of paying income tax through pay order and account payee cheque to ease tax payment procedure and prevent forgery after the NBR had detected many false treasury challan.
The finance ministry committee headed by NBR member (income tax) Abdur Razzak also assessed the possibility of making treasury challan mandatory for tax payment, scrapping other modes of payment.
The committee, however, said that the government should not take such decision before full implementation of e-payment and real time cheque encashment system.
Cash and Debt Management Committee of the finance ministry had earlier proposed making treasury challan mandatory for tax payment scrapping other methods.
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