The New Nation - Internet Edition

UNB, Dhaka

The investors of savings certificates, who had to pay advance income tax (AIT) at source for lack of clear guideline, will get their money back.

National Board of Revenue (NBR) chairman Mohammed Abdul Majid made it clear after a meeting at Bangladesh Bank on Sunday. As for the investors who are regular taxpayers, AIT deducted at source against their savings certificate benefit would be adjusted at the end of the fiscal year with their yearly tax assessment, he said. For the non-taxpayers, he added, a sort of money-back mechanism would be devised, but it would take time due to procedural complexities in withdrawing money from the national exchequer. "I hope, the confusion will now go," Majid said.

A senior NBR official further clarified that this group of non-taxpayer investors would have to open a tax identification number (TIN) and have to apply to the deputy commissioner of taxes to get back the money paid as AIT.

NBR would make necessary arrangements to simplify the money- back procedure, he said.

NBR chairman Abdul Majid chaired the meeting of senior Bangladesh Bank officials, NBR officials and chief executive officers of commercial banks to dispel the confusion created over payment of AIT on income from savings certificates.

The budget for fiscal 2007-08 imposed 10 percent income tax at source on income over Tk 25,000 from investment in savings certificates.

Later, the government raised the exemption limit to Tk 150,000. In the meantime, the commercial banks deducted the AIT considering the earlier limit of Tk 25,000 and few of the banks even deducted AIT without considering the exemption limit.

Association of Bankers Bangladesh (ABB) president M Aminuzzaman, who was present at the meeting, said the meeting was very successful in removing confusions among the banks over the AIT. "The investors have nothing to fear from now."

He said the bankers also requested Bangladesh Bank and NBR not to seek account information of their clients directly from the banks. They suggested seeking account information from the taxpayers first and then ask the banks for such information of selective unwilling taxpayers.

The NBR chairman assured the bankers of considering the suggestion, Aminuzzaman said.