15% source tax for depositors without e-TIN
The e-TIN holders will pay 10 percent
Depositors have to pay 15 percent source tax on their interest income of savings if they do not have the twelve-digit taxpayer's identification number or e-TIN.
The e-TIN holders will pay the tax at 10 percent.
Bankers said depositors having the traditional 13-digit tax identification number must collect new e-TINs from the National Board of Revenue to avail the tax deduction facility.
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Source tax on the interest income of foreign currency deposits will be the same, they said.
The Bangladesh Bank on Thursday issued a circular asking banks to follow the instruction of deduction of source tax on various types of deposits and saving schemes.
The National Board of Revenue had earlier provided taxpayers with a 13-digit tax identification number.
In 2015, it started issuing a 12-digit tax identification number, replacing the previous one.
In fiscal year 2012-13, the government imposed 15 percent source tax on interest income of depositors without tax identification numbers while 10 percent for those having the numbers.
In a recent instruction, banks have been asked to deduct five percent source tax on interest income of all types of tax-exempted deposits such as pension, gratuity and provident fund.
Banks have to submit 10 percent source tax to the government exchequer on the paid amount of interest of the short-time interbank deposit which is called call money.
