law firm in Bangladesh, Dr. Gazi and Associates

Withdraw the provision of tax deduction at source from certain saving certificates by Dr.Gazi Sirazul Islam

That very recently on 26th January 2022, a news was published in national Daily news paper related to Tax which has been recently passed by the Cabinet meeting. In that Cabinet Meeting few agendas were discussed and the following issues are required to be discussed so that they become more citizens friendly.

 In the proposed law certain issues are raised where certain issues are brought into consideration where some are reasonable and some are not. That decision about non deduction of TDS (Tax deduction at source) on sanchoypatra has been proposed where it has been stated that when an individual invests against purchasing sanchoypatra worth of Tk.5,00,000/- (five lacs) will not be deducted TDS. It Has been also mentioned that he who will earn interest on sanchoypatra that Tk.5,00,000/- (five lacs) will be Tax exempted and they are classified as middle class investors. Among the investors a large number of people are government employees who choose this instrument for their safety and security for their rest of the life time. Among those people who are investing in buying sanchoypatra are freedom fighter and aged people who need to depend on the interest income. It is to be further stated that the said amount is not old enough to run their rest of the life. As such, the government should give a second thought regarding the limit of investment and to enhance as it suit and reasonable.
 Furthermore, it is practiced since long that the exporters are given subsidy by the government to encourage the exporters to make more strengthen our national economy and no TDS was applicable on the subsidy. Nonetheless, in the proposed law it is incorporated that TDS will be deducted 5 percent (five percent) from the given amount of subsidy. A country like Bangladesh needs to make its financial condition more strengthen. It is also admitted that, our country earns a major part of income by exports i.e. foreign remittance. In order to uphold it (the economic growth) we need to encourage exporters by implementing new effective methods.

In connection to the above, it is to admire that the government has proposed to reduce the burden to the Tax Payees in providing supporting documents from 29 types of papers to 12. When a Tax Payee submits his/her Tax Return, he needs to submit every document in support of his income and expenses round the income year. However, if someone fails even by mistake to adduce any relevant papers in support of the same, the Tax authorities carry out desk audit, orthodox, Audit etc and due to the amendment of the said new law, the discretion of the Deputy Commissioner of Taxes are brought under little limitation with a view to make the assessment procedure more easier. This will enable every Tax Payee to avoid lot of hassle to complete the assessment and this is one of the most appreciable policies and citizen friendly steps of the ruling government.

In the above mentioned law a new provision has been incorporated which states that if anyone goes out of country i.e. crosses the territory (border) then she/he needs to submit Tax return without any fail, if he/she does not even has the taxable income. In the given law, it is said that whoever goes abroad he/she needs to mention it in his Tax return during the year regarding the visit in abroad excepting treatment and /or religious purposes. This is also an initiative to bring them in the net of income Tax. It was also mandatory previously since foreign tour involves (incur) expenses. It may be said that though this issue was not expressly inserted in the law but it is an implied understanding since it involves financial involvement. In order to make the taxation system more easier and citizen friendly, the law makers are to consider every issues softly and the Tax authorities should be more lenient to the assesses so that citizens of our country feel proud as a Tax payee.

Gazi Sirazul Islam is an advocate

The Main Source of this Article:

ekta cover lagbe

Recent Posts
Popular Posts

Book A free Consultation

Call us +8801787-696522 or fill out the form below to receive a free and confidential initial consultation.

Click To Contact
Dr. Gazi & Associates
Get the best lawyer for any kind of solution for you.