The National Board of Revenue (NBR) has issued a gazette notification on house rent payment, collection and tax, NBR sources said. The NBR issued the notification on July 1 following the declaration in the immediate passed budget that the house owner will have to pay tax if he or she belongs to the net income Tk 25,000 from rent of residence.The notification said a new section No-8 (A) has been added with the section No-8 of the Income Tax Ordinance-1984. The 8 (A) states, if any house owner gets Tk 25,000 as house rent with service charge and other costs, he or she will compulsorily pay tax. In case of defying, the owner will have to pay 50 per cent fine. The house owner, it said, will have to open account in the fixed bank to receive the rented money. The tenants will be able pay either by cheque or by money receipt with the dwelling owners, the notification added. The money paid by voucher will have to be deposited with the bank by the owners within one month. In case of failure the landlords will be fined. The NBR is going to finalise the house rent Act by making it modernised and flawless, and removing all the obscurities, said an officer of the NBR, adding, “NBR will fix the banks and rate of tax”. The official went on saying that the NBR has taken the move to collect the revenue from the house owners.When contacted Member of NBR Syed Aminul Karim said the decision of paying house rent through bank was mainly for the less revenue collection from the household sector. If the Act is enacted, the revenue collection from the sector will be multiplied than the previous fiscals, he said.Former NBR Chairman Abdul Mazid said the move to collect the house rent through bank is good. But a dissatisfied relation may create between the house owners and the tenants. The pressure of tax on the owners may ironically come to the tenants, he said.
