The National Board of Revenue (NBR) on Wednesday launched an electronic tax deducted at source (e-TDS) system to enable filing of tax at source electronically.
Controller and Auditor General (CAG) Mohammad Muslim Chowdhury inaugurated the system during an inaugural function held at NBR Bhaban in Segun Bagicha. The Finance Ministry’s senior secretary Abdur Rouf Talukder also attended the function, presided over by NBR chairman Abu Hena Md. Rahmatul Muneem. NBR members, senior tax officials and members of the technical team who developed the system were also present at the inaugural function.
The section-34 of the Income Tax Act provides the right for deduction of source tax and section-19 provides for the collection of such source tax, NBR sources said.
Manual monitoring of tax deduction and collection at source under the section-53 is time-consuming. For withholding tax at each source, the tax deduction authority has to submit a total of 26 reports including 2 half-yearly returns and 24 monthly statements.
In addition, tax deduction at source as per the prescribed rate, with proper code and timely source tax deduction, is a big challenge for the revenue board, NBR officials said.
After the implementation of this newly introduced automation system, the main source of revenue, the income tax administration will play a very helpful role in strengthening financial discipline in tax management, the officials said.
Now the system will maintain all the matter automatically to reduce tax evasion to a minimum level, which will also help boost revenue collection.
In this system, a source tax deducting authority can log in and complete all its activities and pay instant tax through this invoice system. As a result, the income tax authorities will be able to easily conduct monitoring activities.
The work on the e-TDS system began in May 2020. The test run of e-TDS system and e-TDS lab begun in December last year. The e-TDS system was tailed as a pilot program in large taxpayer units of revenue board in tax zones 1, 2 and 6.