Move to ease burden on small taxpayers: No statement for people below Tk 4.0m assets

Move to ease burden on small taxpayers

No statement for people below Tk 4.0m assets

Doulot Akter Mala | June 16, 2020  Financial Express

Individual taxpayers with gross assets lower than Tk 4.0 million will not be required to submit wealth statement in tax returns.

The Finance Bill-2020, placed in parliament on June 11, has incorporated the provision to simplify return filing.

In the past, such a ceiling for gross asset was Tk 2.5 million, which has been increased to Tk 4.0 million in the budget for upcoming fiscal year.

Also, individual taxpayers having less than Tk 0.4 million annual income will no longer need to submit of statement of expenses. They will be able to file tax returns with two pieces of information in a one-page new return form.

The annual income threshold for individual taxpayers is now Tk 0.3 million.

The statement is known as the declaration of assets, liabilities and lifestyle, which individual taxpayers need to submit with the tax returns.

Taxpayers, who have income from salary, business or profession, will get relief from the documentary burden.

However, taxpayers having a motor car or investment in a property or an apartment in city corporation areas must submit the statement irrespective of the amount of their wealth.

A senior official said the income tax wing has eased the provision for small taxpayers considering the disruptions unleashed by the coronavirus pandemic.

A set of tax benefits have been offered to the marginal taxpayers, but there will be no significant revenue losses as the government will focus on the well-off section, he added.

The National Board of Revenue or NBR has increased taxes for personal car users while keeping the surcharge for the rich people unchanged, he added.

Officials said the marginal taxpayers have filed their income tax returns up to FY2020 using a two-page return form.

They said taxpayers having gross assets worth above Tk 4. million have to submit wealth and lifestyle statement with their tax returns while taxpayers having income more than Tk 0.4 million must submit expenditure statement.

In the statement of assets, liabilities and lifestyles, a taxpayer have to provide detailed information about his or her spouse, minor children and dependents’ all immovable and movable properties, including land, apartment, business capital, cash in hand, securities, bank deposits, savings, gold, motorcar, furniture, electronic goods and other valuables, and liabilities.

A statement of expenses is also required with the tax returns of individual taxpayers.

The number of tax returns showed a slow growth during the last few years despite an increase in number of tax identification number or TIN holders.

Currently, 2.2 million individuals submit tax returns out of 4.6 million TIN holders.

In the proposed budget, the government has incorporated a new provision making it mandatory for all TIN holders to submit their tax returns, except for minor credit card holders and land sellers.