For Your information
Why is TIN required?
Md. Raisul Islam Sourav
TIN (Taxpayer's Identification Number) is an illustrious term in Tax phenomena. As stated in the provision of the law (S. 184B of the Income Tax Ordinance, 1984) “Every assessee or any person who applies for tax payer's identification number will, on payment of tax, be given a tax payer's identification number in such manner as may be prescribed”.
Regrettably, most of us do not know the actual utility of TIN. TIN is not only a mere number, but also has some sensible implementations and values. Nevertheless, we cannot oppose the significance of TIN for orderly arrangement of taxpayer's in our total Tax scheme. In our country, a number of people feel panic to get TIN; since they think that if they have a TIN, a burden of paying tax would inflict over them. Person having no obligation to pay taxes chargeable under the present law is free from the lumber of paying taxes even if he has a TIN certificate.
TIN is a ten-digit figure provided by the concern tax office; first three of which indicate the location of the assessee, middle three digit specify the status of the assessee and last four digit signifies the unique number exclusively for that assessee; like: 187-101-7543.
Collecting procedure: To get a TIN certificate first of all, one should know the determined circle office specified for that person on the basis of his residence. Then apply to the Deputy Commissioner of Taxes in the prescribed form which is prescribed in accordance with S. 64B of the Income Tax Rule, 1984 with TK. 1000 as advance tax which may be deducted from further assessment. The prescribed form can be collected from www.nbr-bd.org free of cost. Within 24 hours from submitting the application to the concerned authority or any other person authorized by the Board in this behalf, a TIN may be allocated in the name of the claimant.
Importance: TIN has an extra worth for the reason of its requirement in some arena of our daily affairs. Without presenting TIN certificate at that particular place(s), one cannot do his desired job. To furnish that task fruitfully it is mandatory to show TIN certificate at that place which is stipulated in S. 184A of the Tax Ordinance. The place(s) at which a person is required to produce the TIN certificate are:
(a) opening a letter of credit for the purpose of import or submitting an application for the purpose of obtaining an import registration certificate.
(b) renewal of trade license in the area of a city corporation or of a paurashava of a divisional headquarters or of a district headquarters.
(c) submitting tender documents for the purpose of supply of goods, execution of a contract or for rendering services.
(d) submitting an application for membership of a club registered under the Companies Act, 1994.
(e) issuance or renewal of license or enlistment of a surveyor of general insurance.
(f) registration for purchase of land, building or an apartment situated within any city corporation, deed value of which exceeds one lakh taka. However, this is not applicable in case of registration for purchase of land, building or an apartment situated within any city corporation, by a non resident Bangladeshi.
(g) registration, change of ownership or renewal of fitness of a car, jeep or a microbus as defined by the Motor Vehicles Ordinance, 1983.
(h) sanction of loan exceeding five lakh taka to a person by a commercial bank or a leasing company.
(i) issue of credit card.
(j) issue of practicing license to a doctor, a chartered accountant, a cost and management accountant, a lawyer or an income tax practitioner.
(k) giving ISD connection to any kind of telephone.
(l) registration of a company under the Companies Act, 1994 in respect of sponsor director.
(m) submission of application for a license as a Nikah Registrar under the Muslim Marriages and Divorces (Registration) Act, 1974 (LII of 1974).
(n) applying for or renewal of membership of any trade body.
(o) submitting a plan for construction of building for the purpose of obtaining approval from Rajdhani Unnyan Kartipakkha (RAJUK), Chittagong Development Authority (CDA), Khulna Development Authority (KDA) and Rajshahi Development Authority (RDA);
(p) issuance of drug license.
Proposals: The grounds can be updated by modifying the Ordinance. Because some of the grounds have lost its efficacy and a number of new grounds can be inserted into the law to make TIN more meaningful and inevitable. For example, the requirement of TIN certificate to open a B.O. account in share market can seriously be thought of.
Registration, change of ownership or renewal of a license of weapon/ship may also be added to the list. Establishing an industry will be a finest ground for presenting TIN certificate.
TIN certificate is the symbol of consciousness of a nation. Because only cognizant citizen holds a TIN certificate not for the reason of producing that certificate at the required place(s), rather to contribute the nation by paying advance tax as a fee for TIN certificate. Payment of tax at due time is our solemn duty. If each and every capable inhabitant of our beloved motherland does this task properly, then the opulence of our country will run swiftly. We should come out from the blaming games and try to contribute to the national economy by ourselves.
The writer is a student of law of Northern University Bangladesh (NUB).
