NBR relaxes provision of return submission for taking loans, credit cards19 September 2022
Staff Reporter :
The National Board of Revenue (NBR) has relaxed provision of submitting proof of documents of income tax return for taking loans and credit cards from banks.
According to a circular issued on Sunday, the revenue board said that the proof of documents of income tax return submission will not be mandatory for taking loans up to Tk 20 lakh from banks, if the loan taker has not taxable income.
"The obligation to submit proof of income tax return submission to scheduled banks in case of taking loans up to Tk20 lakh and for credit card transactions up to Tk2 lakhs, in the student category, has hereby withdrawn subject to tax-free income," the notification said.
NBR took the decision as the Bangladesh Bank has increased the ceiling of loan disbursement to the cottage, micro, small and medium entrepreneurs. But loan distribution at the rural level became slow due to mandatory return documents submission for loans, officials said.
The finance minister, in the National Budget for FY2022-23, made submission of proof of tax return mandatory for borrowing over Tk5 lakh, for acquiring credit cards and avail various public and private services. The move aimed to in an effort to increase the number of tax returns and hence augment tax receipts. Earlier, an entrepreneur could take a loan by only submitting an Electronic Taxpayer's Identification Number (e-TIN) and relevant documents.
The tax authority relaxed the rule amid demands from different quarters after it made income tax return submission mandatory for people to get over 38 types of government services, including loans and trade licences.
The measure will remain effective till on June, 2023.