The National Board of Revenue (NBR) has finally given a legal backup mainly for the corporate taxpayers to make use of the electronic tax deducted at source (eTDS) system and remove online tax-deduction complexities.
The income tax wing of the board issued a gazette notification on Tuesday, specifying the areas of e-TDS for the corporate taxpayers.
Companies now have the authority to prepare and submit returns of withholding tax through an electronic system.
It defined the process of preparation and submission of TDS certificate, statement and return of withholding tax. Second Secretary of income tax wing Mohidul Islam said the e-TDS system would be simplified following the process.
He said the legal backup was necessary for the companies to deduct TDS from taxpayers under the electronic system. Companies will be able to set up Application Performance Interface (API) with the e-TDS system too, he added. The NBR issued the gazette following requests by the large taxpayers, especially multinational companies, to give a legal backup for the e-TDS.