NBR relaxes tax filing requirements

The National Board of Revenue (NBR) on Sunday relaxed the mandatory tax filing requirements for loans and credit cards.

As per the relaxed policy, the borrower will get loans up to Tk 20 lakh and students will enjoy credit card transactions up to the limit of Tk 2 lakh without submitting return filling proof in banks.

Earlier, the proof of income tax return was required to submit to the banks to get Tk 5 lakh or anymore amount of loans.

“Subject to non-taxable income the obligation to submit proof of income tax return to the scheduled banks in case of taking out loans up to Tk 20 lakh and credit card transactions up to the limit of Tk 2 lakh in the student category has been relaxed,” according to an official notification issued by NBR.

The directive will be in effect until June 30 of the following year.

The directive came out for small and medium entrepreneurs having no taxable income and in need of borrowing to uplift business, officials said.

According to the Finance Act, 2022, a person is required to furnish a proof of submission of return while applying for a loan over Tk 5 lakh from a bank or a financial institution; becoming a director or a sponsor shareholder of a company; obtaining or continuing an import registration certificate or export registration certificate; obtaining or renewal of a trade license in the area of a city corporation or paurasava.

Proof of income tax return is also mandatory for obtaining registration of co-operative society; obtaining or renewal of license or enlistment as a surveyor of general insurance; obtaining registration, by a resident, of the deed of transfer, obtaining or maintaining a credit card; obtaining or continuing the connection of electricity in a city corporation or cantonment board and a sort of important cases in daily life are required to submit proof copy of return submission.