THE government introduced 10 per cent tax at source on the interest income for the twelve digit TIN holders and 15 per cent tax at source for non-TIN holders with effect from financial year 2013-14. It is painful for us since Banks and other financial institutions have drastically reduced interest rates on deposits in recent years. In most cases the rate of interest rate has come down to 4.0 per cent to 7.0 per cent which was above 10 per cent three years ago. When the rate of inflation which is around 6.0 per cent, is deducted from interest income, in real terms a depositor gets no income at all from fixed deposits. In such a situation, the government should withdraw tax at source on deposit incomes at least up to Tk 240,000 (income tax free income).
Md. Ashraf Hossain
8/A, Ramna, Dhaka-1000
[email protected]
