Tax return papers not necessary for loans upto Tk20lakh: NBR

The National Board of Revenue (NBR) has relaxed the requirement of tax return documents for bank loans up to Tk 20 lakh.

The NBR issued a notification in this regard on Sunday with immediate effect, which will be continued till June 30, 2023.

The budget for the fiscal year 2022-23 made it mandatory to submit tax return documents to get services under 38 categories. Of them, tax return documents were made mandatory for bank loans of over Tk 5 lakh.

As per the revised directive, NBR has relaxed conditions, after requests from business organizations, as small entrepreneurs were facing difficulties in showing tax-related documents.

Bangladesh Bank has increased the ceiling of loan disbursement to cottage, micro, small and medium entrepreneurs (CMSMEs). 

But loan distribution at the rural level became slow due to mandatory tax return documents for loans.