Income Tax Return Procedure in Bangladesh 2024:

Income tax is payable on income or dividends of individuals or entities as per the Income Tax Act of 2023. It includes income tax, additional tax, additional profit tax, penalties, interest, or recoverable amounts according to the Ordinance. Essentially, it’s compulsory money given to the government for state expenditure benefiting all its citizens.

 

Income Tax Return:

An income tax return is a summary of annual income presented to tax authorities, structured as specified by Income Tax Rules. As per the Income Tax Act of 2023, it must be filed using the prescribed form issued by the National Board of Revenue.

Where to File Income Tax Return:

Income-tax scales are specified for filing returns across all taxpayer categories. Civilian Government Officers/Employees and Pensioner Officers/Employees whose names have commenced must submit returns in the specified circle within their region. Existing taxpayers will file in their current circle, while new taxpayers can use their 12-digit E-TIN to file in the prescribed circle, based on their name, place of employment, or business address. Taxpayers can seek assistance at the nearest income tax office or advisory center for filing returns, or attend annual income tax fairs held nationwide. Additionally, returns can be filed at Bangladeshi embassies abroad. Online filing of single-page returns is now available.

 

To Whom Have to File Income Tax Returns

As per the law, Bangladeshi citizens are liable to pay income tax if their annual earnings exceed Tk 350,000, excluding house rent, medical, and travel allowances. Additionally, tax is applicable if the basic salary exceeds 16 thousand rupees. For specific groups: women and taxpayers aged 65 years and above, income over Tk 4 lac triggers taxation; whereas gazetted war-wounded freedom fighters, third-gender individuals, and disabled taxpayers need income exceeding Tk 4 lac 50 thousand to incur taxation.

Is Income Tax Return Mandatory?

Under the Income Tax Act of 2023, submitting the income tax return by November 30th is compulsory for those with a Tax Identification Number (TIN). Failure to comply carries penalties. However, filing returns doesn’t imply tax payment; if income isn’t taxable, filing suffices without the need to pay tax.

Why Income Tax Return (ITR) Filing is Important On Time:

Filing your Income Tax Return (ITR) punctually holds significance for various reasons as a taxpayer. Missing the deadline set by the Income Tax Department could lead to interest charges and penalties. The penalty amount is contingent on the duration of the delay in filing returns. Timely filing mitigates this financial burden. Furthermore, timely filing is crucial for those eligible for an income tax refund, ensuring swift processing and receipt of refunds.

Why Income Tax Return is Important?

Income tax serves as a pivotal direct tax contributing to government revenue. When an individual’s income surpasses a specific threshold, they’re liable to pay taxes based on progressive rates. The primary goal of income tax returns is to fund government expenditure, facilitating internal development. Hence, income tax returns play a vital role in generating revenue crucial for the overall development of the country.

Time of Filing Tax Return:

The income tax return filing period is from July to November. Generally, annual income tax returns can be filed without penalty during these five months of each financial year. Individual taxpayers can file income tax returns till November 30. Income tax returns can also be filed at Income Tax Mela. At the time of filing the return, the taxpayer can also file the return at the Bangladeshi embassy located abroad.

What Happens If The Income Tax Return is Not Filed On Time?

In the event of late filing, the Deputy Tax Commissioner can impose a one-time penalty, amounting to maximum of 10% of the latest tax assessment or a minimum of Taka 1,000. Additionally, there’s a provision for imposing a separate penalty of Taka [amount not specified.

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What is Income Tax Return Acknowledgement?

A receipt that is received after filing income tax return from the concern authority is called Income Tax Return Acknowledgement. Now Income Tax Return Acknowledgement can get both from online and offline.

 

When Income Tax Return is Mandatory?

According to the Income Tax Act, 2023 self assessment of income tax return has been made mandatory, i.e. henceforth the taxpayer has to assess his own income and pay the applicable income tax.

Cost of Preparing & Filing Income Tax Return by Lawyer:

The cost  of  preparing & filing Income Tax Return by lawyer is not fixed, but not too much. It depends on the size of file, lawyers expertization and clerical cost.

 

Is Income Tax Return Yearly?

Yes. Income tax return is yearly. Within 5 months of beginning of each financial year income tax return should be submitted.

 

Can Income Tax Return be Revised After Processed?

If any omission or incorrect statement is noticed in the return after the filing of the “ordinary return” under section 166 or 212 the Income Tax Act, 2023 an amended return shall be filed without reduction of any tax. In cases where the assessment has not been completed, the amended return shall be filed at least 6 (six) months before the last date of making the assessment order for the relevant tax year or before the date of first hearing fixed, whichever is earlier.

 

Can Income Tax Return Be Filed Without Paying Tax?

Yes. Income tax return can be filed without paying tax. If one has TIN but hasn’t taxable income he can be filed zero return that means return without paying tax.

 

How to file income tax return online?

Apart from online submission of the income tax return, one can also obtain certificates and copies of the income tax return from home. Additionally, an application for an extension of time to file the return can be made. To submit the income tax return online, first, visit the etaxnbr.gov.bd link or the official website of the National Board of Revenue (https://nbr.gov.bd/). Then, select the e-return option and register using your phone number. A six-character OTP code will be sent to verify the number. After entering the code, create a strong password for the account. An e-return account will be generated upon registration. Sign in after completing the registration process. Individuals with no taxable income or ‘Zero Tax’ can swiftly file their return by providing the necessary information. Those with taxable income need to pay tax. Details regarding tax amounts, rebates, and the required deposit can be obtained from the website. Ensure to download and save the ‘Receipt’ slip after completion.

 

How to Create TIN?

To register for income tax online, start by creating an account on the income tax website. Once the account is set up, log in and proceed to apply for and receive the TIN certificate. Begin by visiting https://www.incometax.gov.bd. Select the ‘Registrar’ button from the Income Tax website menu. Fill in the required personal information in the registrar form. Click the ‘Registrar’ button to proceed. An instant code will be sent to your provided phone number; enter this code in the dialog box on the screen. Upon clicking ‘Registrar,’ you’ll see the message ‘Welcome to Taxpayer Identification Number Registration/Re-registration’ along with the TIN application form. You can instantly download the Income Tax Certificate by applying for the TIN Certificate while logged in.

 

Can Income Iax Return Date Extended?

Yes. The National Board of Revenue, Bangladesh can extend the date of Income Tax Return voluntary for all tax payers or on application of any individual tax payer.

 

Advantages of Filing Income Tax Return:

Failure to deposit income tax on time may lead to various problems including fines. Filing of income tax return is mandatory to get 38 services including land registration, utility connection, credit card. Those who have TIN number must file income tax return. But if the annual income is not taxable then no tax is payable.

 

Documents Required For Income Tax Registration or TIN:

Income tax can be registered online only if you have national identity card, phone number or RJSC number in case of organization.

 

Can Income Tax Return be Filed Manually?

Yes. Income tax return can be filed manually.

 

Income Tax Refund:

An income tax refund is a payment payable to a taxpayer. These taxpayers have paid more tax than their final assessed liability in a financial year. This situation arises when the taxpayer has paid mandatory advance tax or tax has been deducted from their income. After the income tax return filed by the tax authority is fully verified, the excess tax is refunded to the taxpayer under Income Tax Law.

 

Where to Download Income Tax Return Form?

Income tax Return Form can be downloaded free of charge from the National Board of Revenue web page: www.nbr.gov.bd. It can also be collected from the Income Tax Office free of charge. Photocopy of return form is also acceptable.