Mandatory tax return submission for loans, credit cards relaxed by NBR

If there is no taxable income, it is not mandatory to submit income tax return proof for taking all types of loans and credit card transactions.

In this context, the National Board of Revenue (NBR) has withdrawn the obligation to submit proof of income tax return submission to Scheduled Banks in case of taking loans up to Tk 20 lakh and credit card transactions in student category.

The information has been revealed through a special order signed by NBR Second Secretary (Tax Act-1) Md Mohidul Islam Chowdhury on Sunday (September 18).

The finance minister, in the Nationa Budget for FY2022-23, made submission of proof of tax return mandatory for borrowing over Tk5 lakh, for acquiring credit cards and avail various public and private services.

The move aimed to in an effort to increase the number of tax returns and hence augment tax receipts.

Earlier, an entrepreneur could take a loan by only submitting an Electronic Taxpayer's Identification Number (e-TIN) and relevant documents.