INCOME TAX PAYMENT

Publishes by The Daily Star on November 21, 2009 (Link Above)

This week your advocate is Barrister Omar Khan Joy of the Supreme Court of Bangladesh and Head of ‘The Legal Counsel’. His professional interests include commercial law, corporate law, family law, land law, constitutional law, banking law, arbitration and intellectual property laws. Our civil and criminal law experts from reputed law chambers will provide the legal summary advice.

Reader’s query
I joined a company few years back and have been thinking about paying my income tax. Could you please suggest where and how I can get help? I am afraid of lawyers, as my friends have warned me in case of income tax sometimes the lawyers can mislead you.

I don’t feel comfortable doing the whole process by myself cause I think it is really complicated. Please suggest.
Thanks
Sabrina, Gulshan-1

Response
Dear Sabrina,
Thanks for writing to Your Advocate. I am very glad to know that you are desirous to pay the income tax. Despite the fact that it is a legal obligation, it is a matter of great regret that many people of our country are still ignorant on this income tax payment obligation and many are just intentionally not paying the same. Since you are employed for few years now and have been earning salaries, you are strongly advised start payment of income tax without any further delay. So far as the lawyer’s involvement is concerned, I am not saying that your friend was wrong, but he was not right either. Lawyers are there to help you out with your legal issues and to protect, defend and support your legal rights. There are some very good income tax lawyers, who will certainly help you in paying your income tax and submit your return in the appropriate manner. However, if you are willing to do it by yourself, then you can collect the assessment form from the income tax office and can do the self-assessment of your taxable incomes and make the payment of tax accordingly. If you have never paid income tax before, then you will first have to have a TIN (Tax Identification Number) to pay the tax. You are advised to collect a certificate/reference letter from your employer stating, inter alia, your name, designation, monthly salary, joining date etc. This will be needed for opening the TIN. As per the law, your employer’s office is supposed to deduct income tax from your salary every month while paying the same to you. Some portion of your salary may be exempted from tax liability. Your employer’s office shall make the proper calculation while deducting the tax from your salary. In such a case they will make the payment of the tax deducted from your salary and will provide you with a ‘tax certificate’ by June-July each year certifying that the stated amount has been deducted from your salary and has been deposited to the government treasury stating the challan number. If this is so, then you are already paying tax on your income generated from your salary and you will just have to submit the return annually enclosing the said certificate provided by your office. If your office is not deducting the tax while paying you the salary as per law, then please request them to comply with the law and to deduct the tax. Meanwhile, you can do the self assessment of your taxable income. Please note that while doing the assessment, you will have to take into account not only your salary but also any and every other income that you generate in Bangladesh. I hope that the above explanation will help you to instruct and deal with an income tax lawyer and/or to pay the income tax by yourself.

For detailed query contact omar@legalcounselbd.com