FOR YOUR INFORMATION

-PHOTOGRAPH & CONCEPT BY NABIL AHSAN

DID you know that following the amendments made to Rule 8A of the Income Tax Ordinance 1983, any landlord earning more than Tk. 25 thousand from premises rented out to one or more tenant(s) is required to deposit the house rent so earned,  to a bank account ? Note that it is not necessary to deposit the house rent to a 'separate' bank account, the landlord may use his existing account to deposit the rent. In the event the landlord fails to deposit the collected house rent in bank account, the amendment further provides for a fine of 50% on the income tax payable on house rent income or Taka. 5000 (whichever is greater). The liability of collected house rent to bank is on the landlord and the tenant is not required to deposit rent though bank account. However, if the premises is being used for business or professional purpose, then the tenant must make payment of rent though bank, otherwise, the house rent will not be considered as expenditure for business/profession, rather it will be considered as income on which income tax will be payable.

For further information please check: http://www.nbr-bd.org/IncomeTax/circular_paripatra_House-Property-Income.pdf

Nabil Ahsan is Barrister-at-Law.