Tax Return Document Not Needed for Loans Up To Tk 20 Lakh: NBR

The National Board of Revenue (NBR) has omitted the requirement of tax return documents for bank loans up to Tk 20 lakh.

The revenue board issued a notification in this regard today with immediate effect, which will be continued till June 30, 2023.

The budget for the fiscal year 2022-23 made it mandatory to show tax return documents to get services under 38 categories. Of them, tax return documents were made mandatory for bank loans of over Tk 5 lakh.

As per the revised directive, NBR has relaxed conditions, after requests from business organizations, as small entrepreneurs were facing difficulties in showing tax-related documents.

Bangladesh Bank has increased the ceiling of loan disbursement to cottage, micro, small and medium entrepreneurs (CMSMEs). But loan distribution at the rural level became slow due to mandatory tax return documents for loans.

Considering the situation, the revenue board omitted requirement of showing tax return document for loan of up to Tk 20 lakh if the borrower has no taxable income.