Proof of income tax return filing is now required for loans of more than 20 lakh taka and term deposits above 10 lakh taka. By including this clause, the government has mandated income tax returns for 24 banking and financial services.

Bangladesh Bank issued a circular in this regard on Sunday (August 3).

According to the circular, customers will now need to provide the bank with proof of submitting their income tax return for the applicable fiscal year before they may receive certain financial services. It stipulates that a copy of the income tax return must be filed obligatorily if an individual has a term deposit of more than 10 lakh taka, wishes to open one, or wishes to obtain a loan of 20 lakh taka. In a same vein, investments in savings certificates totaling more than 10 lakh taka must also include returns.

The Ministry of Law, Justice, and Parliamentary Affairs previously published a gazette in the form of a notification, adding these measures to broaden the tax base. According to the gazette,

The primary objective of this project, according to the government, is to expand the reach of tax collection, guarantee revenue collecting transparency, and create accountability in the financial sector. In addition, it has been suggested that, in light of the international “Double Taxation Avoidance Agreement,” local rules should be brought into compliance with international norms.