Finance ordinance, 2008 which has been given effect to from 1-7-2008, provides that any person responsible for paying any amount on account of interest of post office savings Bank A/C shall deduct tax at 10% on such amount as excludes Tk 1,50,000/- during the year. Now the post office has been realising tax for the financial year 2007-08 at 10% of the interest whatever its amount is, at each withdrawal on deposits made before 1-7-2008 in postal FD/savings A/C. The post office is of the opinion that the benefit of tax relief up to the income of Tk 1,50,000/- shall be allowed only in respect of deposits made on 1-7-2008 and afterwards. In a court order, the Shanchay Patra holders are allowed interest up to 1,50,000/- a year without deduction of tax at source in respect of all Shanchay Patras, no question about those being purchased before 1-7-2008.
Furthermore, during 2008-09, the tax-free ceiling has been raised to Tk 1,65,000/- for general taxpayers and Tk 1,80,000/- for women and persons above 70 (vide Fixation ordinance, 2008, Fixation supplementary ordinance, 2008, Finance ordinance 2008). The modified limits to tax-free profit of Shanchay Patras and Postal Savings Bank A/C for the current financial year have not been mentioned.
The authorities concerned should look into the matter.