NBR to intensify efforts over house rent payment thru’ banks
Economic Reporter :
The National Board of Revenue (NBR) has decided to expedite its activities to compel house owners for receiving their rents through the banking channel as per the government rule in this regard.
“We’ve taken various steps, including holding meetings and seminars, aiming to remove fear from the minds of house owners about the matter,” an NBR senior official told The New Nation.
He said it is now compulsory for house owners to submit the information of house rents (copies related to house rent) and other details while submitting their individual income tax return.
“If the NBR finds anything irreverent in these papers, the house owner concerned will have to pay fine,” he said.
The government made it mandatory to collect house rents if it goes above Tk 25,000 through the banking channels, aiming to bring both the landlords and the tenants under the tax net.
According to the rule, anyone having the ownership of any property used for commercial or residential purposes will have to collect his or her monthly rent through a bank account in any scheduled bank if it crosses Tk 25,000.
According to the rule, the NBR will penalise house owners at the rate of 50 percent of tax payable on incomes derived from the house property or Tk 5,000, whichever is higher, for not transacting it through banks, according to the Finance Bill 2014.
The NBR official said the house owners and tenants will have to submit unfailingly their house rent information and the bank account slips while submitting their income tax returns.
According to the NBR official, the government can collect thousands of crores of taka as tax from over 150,000 building owners in the country’s nine city corporations.
“We’ve given enough time to the house owners and tenants for acclimatisation… now it’s time to implement the rule properly,” the NBR official said.
He said the system will surely be enforced as it will be good for all — both the owners and the tenants.
About the time that has already elapsed in enforcing the rule, the NBR official said it was very natural to take time across the world in implementing a new law or a rule.
“But, in our country it takes a bit more time as our people always have a phobia about any new system or law. That’s why the Board has given them (house owners and tenants) some space to realise the fact and get over the fear.”
He also mentioned that the NBR will have to plug the loopholes to achieve the revenue collection target for the current fiscal, as revenue target for the current fiscal is Tk 2,03,212 crore which is 35.4 percent higher than the revised target of the 2015-16 fiscal.
Vat will be the biggest contributor with Tk 72,764 crore. An amount of Tk 71,940 crore will come from income tax and tax on profit, while supplementary duty will contribute Tk 30,075 crore, excise duty Tk 4,449 crore, export duty Tk 44 crore and other taxes and duties Tk 1,428 crore.
The National Board of Revenue (NBR) has decided to expedite its activities to compel house owners for receiving their rents through the banking channel as per the government rule in this regard.
“We’ve taken various steps, including holding meetings and seminars, aiming to remove fear from the minds of house owners about the matter,” an NBR senior official told The New Nation.
He said it is now compulsory for house owners to submit the information of house rents (copies related to house rent) and other details while submitting their individual income tax return.
“If the NBR finds anything irreverent in these papers, the house owner concerned will have to pay fine,” he said.
The government made it mandatory to collect house rents if it goes above Tk 25,000 through the banking channels, aiming to bring both the landlords and the tenants under the tax net.
According to the rule, anyone having the ownership of any property used for commercial or residential purposes will have to collect his or her monthly rent through a bank account in any scheduled bank if it crosses Tk 25,000.
According to the rule, the NBR will penalise house owners at the rate of 50 percent of tax payable on incomes derived from the house property or Tk 5,000, whichever is higher, for not transacting it through banks, according to the Finance Bill 2014.
The NBR official said the house owners and tenants will have to submit unfailingly their house rent information and the bank account slips while submitting their income tax returns.
According to the NBR official, the government can collect thousands of crores of taka as tax from over 150,000 building owners in the country’s nine city corporations.
“We’ve given enough time to the house owners and tenants for acclimatisation… now it’s time to implement the rule properly,” the NBR official said.
He said the system will surely be enforced as it will be good for all — both the owners and the tenants.
About the time that has already elapsed in enforcing the rule, the NBR official said it was very natural to take time across the world in implementing a new law or a rule.
“But, in our country it takes a bit more time as our people always have a phobia about any new system or law. That’s why the Board has given them (house owners and tenants) some space to realise the fact and get over the fear.”
He also mentioned that the NBR will have to plug the loopholes to achieve the revenue collection target for the current fiscal, as revenue target for the current fiscal is Tk 2,03,212 crore which is 35.4 percent higher than the revised target of the 2015-16 fiscal.
Vat will be the biggest contributor with Tk 72,764 crore. An amount of Tk 71,940 crore will come from income tax and tax on profit, while supplementary duty will contribute Tk 30,075 crore, excise duty Tk 4,449 crore, export duty Tk 44 crore and other taxes and duties Tk 1,428 crore.
