In a significant development on Wednesday, August 23rd, 2023, the National Board of Revenue (NBR) introduced a pivotal change in taxation policy that holds far-reaching implications for taxpayers. The NBR’s latest declaration stipulates a transformative approach to handling income generated from three distinct sources, all of which are now categorized under a final settlement of tax. This groundbreaking update effectively eliminates the possibility of any subsequent tax demands on income originating from these sources.
The three defined sources of income covered by this new taxation paradigm are as follows:
- Interest from Fixed Deposits and Savings Deposits: The income earned from various forms of fixed deposits and savings deposits, as outlined in section 166(2) of the Income Tax Act of 2023, has been reclassified. Such earnings will now be treated as conclusive tax settlements, absolving taxpayers from any future tax obligations related to income derived from these sources.
- Government Approved Savings Deposits: Another significant inclusion in this tax reform pertains to the interest earned from government-approved savings deposits, exclusively available to regular taxpayers. The NBR’s recognition of these deposits as final tax settlements ushers in a new era of simplicity and clarity in tax procedures for these individuals.
- Cash Dividends from Export of Items: Notably, the cash dividends obtained from the export of items originating in Bangladesh have also been encompassed within this visionary tax framework. This change is expected to positively impact exporters and contribute to the growth of the nation’s trade sector.
For further details and specifics about these alterations, the complete statutory regulatory order (SRO) can be accessed here. This SRO provides comprehensive insights into the new provisions, ensuring that taxpayers are well-informed about their rights and responsibilities under this revised taxation regime.
As part of our commitment to providing valuable information and support to individuals navigating the intricacies of taxation, we offer an extensive range of services tailored to address diverse financial needs. We understand the importance of staying updated with such dynamic shifts in taxation policy, and our dedicated team is here to assist you in comprehending and adapting to these changes.
In conclusion, the NBR’s announcement on August 23rd, 2023, marks a watershed moment in the landscape of taxation. By establishing a final settlement of tax for income derived from specific sources, the NBR has taken a monumental step towards simplifying and streamlining the taxation process, fostering greater transparency, and offering taxpayers a sense of certainty and clarity.
Actual SRO can be found here .
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