Follow today’s article till the end to know holding tax, holding tax number, and holding tax payment rules. I hope from today’s article, you can quickly learn everything you need to know about holding tax. To know this, read the discussion carefully till the end.
What is Holding Tax?
Before knowing about holding tax payment rules, first, we will know what holding tax is. Because if you don’t have a good understanding of holding tax, you cannot understand holding tax. That is why we need to know about holding tax first.
Usually, the homes we stay in or rent; may be under a city corporation, a municipality, or a union council. These houses have to pay annual taxes as per government law. All these taxes are calculated depending on the size and area of the village or town.
If the house is in an urban area, then the holding tax is high, and if it is not in an urban area like a union parishad, the amount of holding tax is not very high.
It is scarce. So the tax paid depending on the size, surroundings, and area of the house, or if a house is rented out or if a place is already lying vacant is the holding tax.
Now it is said that we will need the holding number to pay the holding tax. Where can we get this holding number?
Generally, holding numbers are issued by the municipality or city corporation for houses in urban areas. This number is given to each house serially according to address and area.
On the other hand, the houses under the jurisdiction of the village or union council are given a number plate by the union council, which is given to all the houses. This is the holding number.
What Can You Do if You do Not Have a Holding Number
Any house must have a holding number, whether urban or rural. But in some cases, there is no holding number. For example, someone buying new land and constructing a house or a house under construction usually does not have a holding number.
In that case, the person has to apply for a holding number under a city corporation, municipality, or union council.
The cost is reduced if you apply for the holding number in the houses under the Union Parishad. But it costs a little more to get a holding number for houses in municipalities, city corporations, or urban areas.
Generally, when applying for a holding number in any house under a municipality or city corporation, the candidate has to pay a fee of 10,000 TK, and he is given a holding number within 90 days.
Application for A Holding Number
If a house does not have a holding number, it has to apply for a holding number under the municipality or city corporation if it is in the city area. And if it is in the village, he must apply under the Union Parishad. Several documents will be required to apply. They are-
- The application should be made on white paper.
- The application form should accompany a house ownership deed, land mutation, land rent receipt, DCR, and Namjari deposit proposal. If it is a Rajuk plot, then the Rajuk office name will be required.
After collecting all these documents, please fill out an application form and send it to the local tax officer along with the fee.
We already know that to get a new holding number, a fee of around 10,000 TK has to be paid, and this money has to be paid to him through a treasury challan under the local tax office.
Holding Tax Calculation In Bangladesh
This is a critical point. You must pay a holding tax if you have a home in a rural or urban area. But let’s find out how much tax you will pay for your house or how to calculate it.
Holding taxes generally depend on the environment and locality. If it is in an urban area, the holding tax amount is higher, and if it is in a rural area, it is lower.
Holding tax is generally levied at the rate of 12%. Of this, 7% is holding tax, 2% is clean, and 3% is the electricity bill. You must pay a 3% tax for government light services in urban areas.
Let us now know precisely how tax is calculated for urban areas. It will be easier for you to understand if it can be explained with an example.
Suppose you have a flat or house of 800 square feet next to the main road in Dhaka city. For this 800 sq ft house, you have to pay tax at Rs 6.50 per sq ft per month. Then your total tax for 800 square feet will be (800×6.50) = 5200 TK
If you are calculating the annual holding tax, then you need to multiply this total by 10. Usually, 10 months of tax is levied instead of 12 months of annual tax due to various reasons, and two months of tax is waived.
Because the owner of the house is renovating the house at different times and he has to spend different times in the house for different reasons. That is why the government does not collect his two months’ tax. So if you multiply 5200 TK per month by 10 of 12 months, the total (5200×10) = 52000 taka.
One thing to remember here is that you don’t have to pay taxes monthly and yearly. It has to be paid every three months. Therefore, if you divide this annual amount by 4, you will get the calculation of three months’ tax. Then 52000/4 = 13000 TK every three months you have to pay.
So you can calculate the holding tax by substituting the number of the actual area of your house in the above space by calculating the area of your house in feet.
Another benefit of holding tax is that you don’t have to pay 40% tax on it if you live in your own flat or house.
While charging the holding tax, if you feel that the tax has been overcharged, you will get a waiver of up to 15% of the tax if you appeal to the Board of Review.
After calculating the total amount of the above tax, you can go to your nearest local tax office and fill out a specific form by providing your holding number and paying your tax.
This is today’s discussion. I hope you have learned all the holding tax details from today’s discussion.
If you have any other queries regarding holding tax, you can let us know through the comment box below. We will try our best to help you. Follow our website for more information related to tax. Thank you.