DHAKA TRIBUNE
Special
5
Thursday, September 5, 2013
BIGSTOCK.COM
Income tax season is on and all eligible taxpayers, existing or potential, are looking forward to submitting their income tax return for fiscal year 2012-13. This special arrangement of Dhaka Tribune is to facilitate our readers with information concerning Taxpayer Identification Number (TIN) registration, filling out the income tax return form, submitting the return form and other associated information. We hope our endeavour would help you manage your income tax more competently
What is TIN? TIN (Tax payers Identification Number) is a unique number issued by NBR (National Board of Revenue) Bangladesh. NBR is phasing out the paper based TIN registration process and they are registering all taxpayers for e-TIN.
e-TIN To ease registration, the government has introduced electronic Taxpayer Identification Number (e-TIN). You can now register for TIN as easily as you open an email account. To get an e-TIN, you have to go to NBR’s website: www.incometax.gov. bd. There you have to register as an user account before you can apply for TIN. To register, the site would ask you: username, password, security question and answer, mobile phone number, and email address. Once you submit this form you will get a text message with an activation code on your mobile phone. Put this
activation code in the appropriate box and your account will be activated. In the next step you will have to log in with your username and password that you have just created. Once you are logged in you will see a button called “TIN Application.” Click on this button and follow the instruction step by step. You will have to provide the following information for e-TIN registration: l l l l l l l
your problem. The existing TIN holders, too, would have to re-register by December 31, 2013 for the new 12-digit number, which would replace the current 10-digit number on January 1, 2014. This new TIN has to be used for tax returns for fiscal 2013-14 onward.
Profession Place of work National Identity Card number Father’s name Mother’s name Date of birth Present and permanent addresses
Once you are done with this, click on the submit button and you will be given your e-TIN certificate with a 12-digit number. You can take a print out of your e-TIN certificate if you want. In case you face any problem in filling out the form or if something goes wrong, you may email to info@incometax. gov.bd and you will get a solution of
e-TIN is absolutely free of cost and no fees, direct or indirect, prompt or deferred, needs to be paid by the TIN holder for TIN registration online
It is important to note that the online TIN registration or e-TIN is absolutely free of cost and no fees, direct or indirect, prompt or deferred, needs to be paid by the TIN holder for TIN registration online. l
Among direct taxes, income tax is one of the main sources of revenue. It is a progressive tax system. Income tax is imposed on the basis of ability to pay. “The more a taxpayer earns the more he should pay” is the basic principle of charging income tax. It aims at ensuring equity and social justice. The following individual/entity should submit their income tax return:
Who should submit Income Tax Return
• If total income of any individual other than female taxpayers, senior male taxpayers of 65 years and above and retarded taxpayers during the income year exceeds Tk2,00,000. • If total income of any female taxpayer, senior male taxpayer of 65 years and above during the income year exceeds Tk2,25,000. • If total income of any retarded taxpayer during the income year exceeds TK2,75,000. • If any person was assessed for
tax during any of the 3 years immediately preceding the income year. A person who lives in any city corporation/paurashava/divisional HQ/district HQ and owns a building of more than one storey and having plinth area exceeding 1,600 sq. feet/owns motor car/ owns membership of a club registered under VAT Law. • If any person subscribes a telephone • If any person runs a business or profession having trade license and operates a bank account.
All about rebates The amount of allowable investment is – actual investment or 20% of total income or Tk100,00,000 whichever is less. Tax rebate amounts to 10% of allowable investment. Types of investment qualified for the tax rebate are: • Life insurance premium up to 10% of the face value • Contribution to Provident Fund to which Provident Fund Act, 1925 applies • Self contribution and employer’s contribution to Recognized Provident Fund • Contribution to Super Annuation Fund • Contribution up to Tk60,000 to deposit pension scheme sponsored by any scheduled bank or a financial institution • Investment in approved debenture or debenture stock, stocks or shares • Contribution to Benevolent Fund and Group Insurance premium • Contribution to Zakat Fund
• Donation to charitable hospital approved by National Board of Revenue • Donation to philanthropic or educational institution approved by the Government • Donation to socioeconomic or cultural development institution established in Bangladesh by Aga Khan Development Network • Donation to ICDDRB • Donation to philanthropic institution – CRP, Savar, Dhaka • Donation up to five lac to (1) Shishu Swasthya Foundation Hospital Mirpur, Shishu Hospital, Jessore and Hospital for Sick Children, Sathkhira run by shishu
• • • • • •
swasthya Foundation, Dhaka. (2) Diganta Memorial cancer Hospital, Dhaka, (3) The ENT and Head-Neck cancer Foundation of Bangladesh, Dhaka and (4) Jatiya Prtibandhi Unnayan Foundation, Mirpur, Dhaka Donation to Asiatic society of Bangladesh Donation to Muktijudha Jadughar Donation to National level institution set up in memory of liberation war Donation to National level institution set up in memory of Father of the Nation Any investment by an individual in Bangladesh Government Treasury Bond Investment in purchase of one computer or one laptop by an individual assessee l
Are you eligible? Salary Interest on securities House property Agriculture
The next income tax fair is on September 16-22, 2013. The venue is Officer’s Club, Dhaka. The following services will be available in the upcoming income tax fair: – TIN Registration for new assessees
The income tax you need to pay is calculated on your annual taxable income. Your taxable income may comprise various sources. For the purpose of calculation of total taxable income, the sources of income can be classified into the following seven categories: l l l l
Income Tax Fair 2013
l Business or profession l Capital gains l Other sources
– Re-registration for existing assessees – Submission and acceptance of income tax return – e-Payment of income tax – Information service for everyone
For individuals other than female taxpayers, senior taxpayers of 65 years and above and retarded taxpayers, the following rate table will be used Tax Year
FY 2012-13
FY 2013-14
First
2,00,000
2,20,000
Rate Nil
Next
3,00,000
3,00,000
10%
Next
4,00,000
4,00,000
15%
Next
3,00,000
3,00,000
20%
Rest Amount
25%
For female taxpayers, senior taxpayers of age 65 years and above, the following rate table will be used Tax Year
FY 2012-13
FY 2013-14
Rate
First
2,25,000
2,50,000
Nil
Next
3,00,000
3,00,000
10%
Next
4,00,000
4,00,000
15%
Next
3,00,000
3,00,000
20%
Rest Amount
25%
Minimum tax for indivudal, tax free income limit for differently abled assessee and tax rate for non-resident Bangladeshi 2012-13
2013-14 City Corporation area Tk3,000
Minimum tax for assessee
Tk3,000
District headquarters and Pauroshava Tk2,000 Other areas Tk1,000
Differently abled limit
Tk2,75,000
Non-resident
Tk3,00,000
Checklist of documents You are required to provide supporting documents along with your file as proof of information. Here is the list: l Salary statement for salary income l Bank statement for interest l Certificate for interest on savings instruments l Rent agreement l Receipts of municipal tax and land revenue l Statement of house property loan interest l Insurance premium for house property income l Statement of professional income as per IT Rule-8 l Copy of assessment/income statement and balance sheet for partnership income l Documents of capital gain l Dividend warrant for dividend income l Statement of other income l Documents in support of investments in savings certificates, LIP, DPS. Zakat, stock/ share etc l Statement of income and expenditure l
25%
Penalty for default Nature of Default
Penalty applicable
Failure to file return of income in due time
(a) 10% of the tax imposed on last assessed income or Tk1,000 whichever is higher (b) for continuing default Tk50 per day (c) minimum penalty Tk1,000
Failure to furnish certificate, statement, accounts, information
(a) Tk500 (b) for continuing default, Tk250 per month
Failure to display TIN certificate
(a) Tk500 (b) for continuing default, Tk250 per month
Failure to pay minimum 80% of the admitted liability Not exceeding 25% of the unpaid tax Failure to pay advance tax
Not exceeding 25% of the unpaid tax
Failure to comply with statutory notices
An amount not exceeding the tax changeable on total income
Concealment of income or furnishing inaccurate particulars thereof or understatement of the sale value of immovable property.
10% of the tax avoided or multiple of 10% in case of a period of more than one year from the year in which the concealment was first assessable to tax
Consequences of using fake TIN
DCT can impose a penalty not exceeding Tk20,000 For continuous use of fake TIN deliberately – 3 years imprisonment, up to Tk50,000 fine or both
Deadline
The last date of submission of Tax Return file, unless the date is extended, is September 30. A taxpayer is also liable to pay advance tax if his total income for the latest income year, in respect of which he has been assessed by way of regular assessment, exceeds Tk4,00,000. l The amount of advance tax payable by an assessee in a financial year shall be the amount equal to the tax payable on his total income of the latest income year. l Advance tax shall be payable in four equal installments on September 15, December 15, March 15 and June 15 of the financial year. l According to Income Tax Ordinance, 1984, in case of failure to pay advance tax, he may be penalised for the amount left unpaid. For example, if an assessee’s advance tax comes to Tk10,000 and he has paid TK8,000, he may be fined upto TK2,000. l