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Tomorrow is the last day for individual taxpayers to file their income tax returns. However, the National Revenue Board (NBR) is relaxing the conditions for filing returns in response to a request from various merchants and income tax professionals to increase their organization’s time to prevent coronavirus infection.
According to the responsible sources, November 30 is the last day to file returns according to the Income Tax Ordinance. But this time the situation is completely different because of Corona. Many taxpayers do not want to go to the circle office for fear of infection. Additionally, several trade and professional organizations have requested an increase in the time of the return deposit. In view of this, some concessions are being considered in case of return deposit.
First, increase your deposit return time. Second, waiver of late return deposit penalty. Initially, there is a plan to waive the fine until December. The decision could be made on Sunday.
In this regard, Alamgir Hossain, member of the Income Tax Policy, said that the application of traders and professional organizations will be discussed with the president of NBR on Sunday. Then action will be taken according to the decision.
However, income tax lawyers and employers say it will be good for no one if you waive the penalties without extending the time. Because the taxpayer or his representative has to go to the circle office to request an extension. If you have to go to the circle office, you can also send the statement. The important thing to consider in this case is the prevention of corona infection.
Sufi Mohammad Al Mamun, secretary general of the Dhaka Tax Lawyers Association, told Jugantar that where the government is determined to reduce coronary infections, NBR puts taxpayers at risk. All countries in the world, especially India, Nepal and Thailand, are relaxing the time of return deposit. But the NBR is not doing that despite the opportunity.
He said the penalty waiver was not the right decision in the current situation. Taxpayers want to file late returns even if they are fined. But taxpayers have to go to the circle office to request an extension of time. In addition, if the time is not extended, taxpayers will not be able to file their returns in the universal self-assessment system. If the time is extended, along with the return deposit, the tax collection will also increase.
Dhaka House Speaker Shams Mahmud said the situation was different this year than other years in terms of return deposits. The Prime Minister is instructing everyone to wear masks and hygiene rules to combat the second wave of coronavirus. In this case, the time for filing the return should be postponed considering the humanitarian aspect.
Penalties for late filing of the return: If the return is filed after November 30, the taxpayer must pay three types of penalties. Article 124 of the Income Tax Ordinance states: “If the taxpayer does not file the return within the stipulated time without any reason, and does not seek approval of the same, a fine of 10 percent or Rs.
At the same time, as long as it is late, you will have to pay an additional fee at the rate of Rs 50 per day. In addition, according to Article 63 of the Ordinance on Income Tax, 50 percent simple interest and Article 63 (a), the taxpayer has to pay 2 percent back interest per month on the prescribed tax. But you can send the return without requesting it in time. However, for this, the taxpayer will have to pay a penalty for back interest as well as for violation of the law.
The calculation of the date of the fine began on December 1. If you request a time extension, you will not have to pay a penalty under section 124, but you will have to pay simple interest and back interest under sections 63 and 63A.
How to request a time extension: Professionals must present the salary statement, bank statement and supporting documents of the investment along with the declaration. If there is a bond or obligation, a photocopy, if there is interest income, a certificate from the corresponding authority is required. In the case of income in the real estate sector, housing rental contract, bank statement and certificate in support of loan interest if the house is bought or built by means of a bank loan and a copy of the premium in case of real estate insurance.
Apart from this, if there is investment in the stock market, the certificate related to the transaction, the certificate of interest in the savings certificate and the certificate of interest income from the bank must be presented.
Those who have to file returns: Every citizen who has 12 TINs and has an annual income (from July 1, 2019 to June 30, 2020) of more than Rs 3 lakh must file an income tax return.
Additionally, businesses, business shareholders, car owners, and business licensees are required to file disclosures. Members of business associations, people’s representatives have to pay refunds even if they participate in elections or tenders. However, even if there are three types of TIN, it is not necessary to file the return. They are certain foreigners without income, person who takes TIN for the sale of land and person who takes TIN for credit card.
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