The National Board of Revenue (NBR) has relaxed the obligation to file returns for taking loans and credit card transactions up to certain limits. As a result, from now on, no income tax return filing certificate is required for borrowing up to Taka 20 lakh and credit card transactions up to Taka 2 lakh.
This instruction has been issued on Sunday (September 18) in a special order signed by Md. Mahidul Islam Chowdhury, Second Secretary of NBR.
It has been stated that under the powers provided in subsection 4 of the Income Tax Ordinance 1984, the obligation of submission of proof of income tax return to the scheduled banks has been relaxed subject to non-taxable income, taking loans up to the limit of Taka 20 lakh and credit card transactions up to the limit of Taka 2 lakh in the student category.
It also mentioned that this directive will remain in force till June 30 next year.
Earlier, besides showing the TIN (Tax Identification Number) certificate to take loans and credit cards, the bank had to show proof of regular returns submission. If the bank gives a credit card to someone without that certificate, there was a provision of a maximum penalty of up to 10 lakh taka.
To be noted that, there are more than 75 lakh TIN holders in the country. But annual returns are submitted by around 25 lakhs TIN holders. About half a million TIN holders do not file their returns. It is mandatory for them to submit returns to take loans of more than five lakh Taka from credit cards and banks. But in other fiscal years, credit cards were available only on presentation of Tax Identification Number or TIN certificate. However, the government has imposed the obligation to show proof of whether regular returns are being submitted against the TIN in the budget of the current financial year. And if the credit card is issued without proof of return deposit, a fine of up to 10 lakhs is also provided to the concerned bank. Apart from credit card, you have to show proof of return submission to the bank to get 37 other services.