Source tax on interest from savings certificates capped at 5% up to Tk5 lakh: NBR
The clarification came amid complaints from investors that, in some cases, up to 10% source tax was being deducted.
Representational image. Photo: Collected
The maximum rate of source tax on interest earned from national savings certificates will be 5% for investments of up to Tk5 lakh, the National Board of Revenue (NBR) said today (3 February).
The clarification came amid complaints from investors that, in some cases, up to 10% source tax was being deducted on interest from savings certificates for investments within the Tk5 lakh limit.
The issue sparked widespread discussion among investors, prompting the NBR to issue a clarification today to clear up the confusion and confirm that the applicable source tax rate in such cases should not exceed 5%.
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