The government would propose in the budget for next fiscal year introducing payment of house rent though banking channel to prevent tax evasion.
The budget for 2014-15 would have provisions for tenants to pay their house rents through cheques if it exceeds Tk25,000 per month, officials said.
With the new system, the banks would be asked to deduct tax at source on income from house rent before making payment to house owners.
Both the house owners and tenants will be brought under the tax net as the payments will be made through banking channels and the NBR would be able to collect from the banks the relevant information about income.
A large number of house owners evades taxes as they do not give formal money receipts to the tenants while collecting rents, through which, they manage to conceal the actual amounts they collected and thus evade tax.
According to National Board of Revenue, a total of 1.62 lakh tax evading house owners were indentified through a survey in some selected areas. They concealed income from house rents while submitting income tax returns.
The board has brought less than half of them under tax net by opening their income tax files and collecting the taxes from them.
NBR officials said house owners do not declare even half of their income from property rent in income tax returns.