Tax return proof must to get 6 more services

All organisations, including trusts, funds, foundations, non-governmental organisations (NGOs), microcredit organisations, and societies and cooperatives, will likely be required to show proof of tax return submission in the upcoming financial year while opening and maintaining bank accounts.

Individuals will also be required to show this proof while registering land, building, and apartment lease and also registering the sale, transfer, or lease of land worth more than Tk 10 lakh in all municipalities, according to finance ministry officials involved in FY24 budget formulation.

Besides, house owners in city corporation areas will also have to submit their income tax return proof while renting or leasing the house.

The government also plans to bring suppliers or service providers under this provision during the supply of goods or services as well as vendors or deed writers of stamps, court fees, and cartridge papers while obtaining registration or renewing licence, sources say.

Currently, the income tax return filing proof has been made mandatory for taxpayer identification number (TIN) holders to obtain 38 services, including opening and maintaining bank accounts as well as utilities.

Mandatory return submission has helped increase the number of submissions, curb tax evasion, and widen the tax net, said finance ministry officials. Due to this, seven lakh more returns were submitted compared to FY22.

As per the government’s plan in the next budget, a person will have to deposit Tk 2,000 in tax to the state exchequer if he or she claims an income lower than the tax-free income limit, said ministry officials.

The tax-free income ceiling for individuals may be increased to Tk 3.5 lakh in the next fiscal year, beginning in July, from the existing Tk 3 lakh, sources say.

According to the Finance Act 2022, a person shall be required to furnish proof of submission of tax return in the cases of applying for a loan exceeding Tk 5 lakh from a bank or a financial institution, becoming a director or a sponsor shareholder of a company, obtaining or maintaining an import or export registration certificate, and obtaining or renewing a trade licence in city corporation or municipality areas.

It is also mandatory for obtaining the registration of a co-operative society, obtaining or renewing the general insurance licence or getting listed as a surveyor, obtaining registration of a deed of transfer, obtaining or maintaining a credit card, obtaining or maintaining electricity connection in a city corporation or cantonment board area, and some other important areas in daily life.