Small bank account holders who maintain their accounts’ balance up to Tk 100,000 will not be charged additional 5 per cent withholding tax on their interest earnings even if they do not have tax identification number (TIN).

A proposal to increase tax at source on bank interests to 15 per cent for those without TIN from the 10 per cent was made in the budget for the current fiscal 2012-13 (FY13). But the proposal was later amended in the final budget with lifting the additional tax for the small account holders.

“We have conveyed the amendment to the banks immediately after the parliament passed the budget so banks do not charge additional tax on small account holders,” a National Board of Revenue (NBR) official told the news agency.

Many banks, however, are sending SMS to their clients irrespective of their account balance advising them submit their TIN certificates to avoid the additional 5 per cent tax at source.

The NBR official said the account holders, who do not have a deposit of over Tk 100,000, need not to be worried about the SMS as they would not be charged theadditional tax.  He said the account holders, however, would be charged 10 per cent tax at sources as of previous years.

The Daily Independent/Bangladesh/ 12th July 2012