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How to fill up income tax return form in Bangladesh


Published : 26 Sep 2021 04:10 PM | Updated : 02 Oct 2021 11:35 PM

A person whose total income during the income year exceeds the maximum amount of non-chargeable income or the income of any other person in respect of which he is assessable to tax under the Income Tax Ordinance (ITO), 1984, must file an income tax return in the prescribed form with the Deputy Commissioner (DC) of Taxes.

Non-resident Bangladeshis, however, may file their income tax returns with a bank draft for their tax liability to the closest Bangladeshi mission, which will issue a receipt with a seal and forwarded it to the National Board of Revenue (NBR).

Under the Finance Act, 2014, if any person earned more than Tk 220,000 during the tax year, that individual must file a tax return including the source(s) of income. Although the maximum non-taxable income limit for women and senior taxpayers over 65 years of age will be Tk 275,000, for physically challenged and physically retarded individuals Tk 350,000, and for gazette-enlisted war-wounded freedom fighters Tk 400,000. Nevertheless, if any person earning less than the maximum tax rate, he/she also needs to file an income tax return, if:

  • Resides in city corporation or paurashava or divisional headquarters (HQ) or district HQ and owns motor cars, including SUV/micro-bus, or holds membership of a club registered under the VAT law;

  • Runs any business or profession having a trade license and operates a bank account;

  • Has registered with a recognized professional body as a doctor, dentist, lawyer, income-tax practitioner, chartered accountant, cost and management accountant, engineer, architect, surveyor, or any other similar profession;

  • Member of a chamber of commerce and industry or a trade association;

  • Is a candidate for an office of any paurashava, city corporation, or a member of Parliament;

  • Assessed to tax for any of the three years immediately preceding the income year;

  • Participates in a tender floated by the government, semi-government or autonomous body, or local authorities. In addition, any registered company/non-government organization (NGO) shall file a return of its income or the income of any other person for whom the company/NGO is assessable to the authorities.

The tax rates during the assessment year for an individual taxpayer other than female, a taxpayer of 65 years and above, differently able person, retarded employee and gazetted war-wounded freedom fighter are as follows:

 

Total Income
Rate of Tax
 For first Tk 220,000
0%
For next Tk 300,000
10%
  For next Tk 400,000
15%
For next Tk 500,000  
20%
For next Tk 3000,000
25%
  For the rest of the amount
30%

After exceeding the maximum tax-free threshold, the tax rates are the same for female taxpayers, older taxpayers, differently-abled, retarded, and gazetted war-wounded freedom fighters. Nevertheless, the minimum amount of income tax payable by a taxpayer who lives in a city corporation area is Tk 3000, Tk 2000 for district headquarters' residents, and Tk 1000 for others.

Submission of income tax return

Each income taxpayer is entitled to getting an income tax return form for free of cost from tax offices or the website of NBR i.e www.nbr-bd.org. In addition, NBR has launched an online tax calculator on www.nbrtaxcalculatorbd.org to make it easy for the assessees to assess their taxes. Also, NBR introduces spot assessment for small entrepreneurs, doctors, and lawyers. Whoever invests Tk 1000,000 as initial capital shall pay Tk 4000 and those doctors and lawyers who practiced their profession 5-10 years shall pay Tk 2000-4000 as income tax. Upon assessment of income tax, the assessee must pay it to the government exchequer through a pay order, treasury challan, or online via www.nbrepayment.gov.bd and submit a duly signed and authenticated declaration and verified return form along with the necessary documents to the relevant tax circle.

Read More: Taxpayers still need to pay Interest

Time limit to submit the return

The income tax return must be filed by the fifteenth day of July following the income year, or, if the fifteenth day of July falls before the end of the six months, before the end of that period, and in all other situations, by the thirtieth day of September following the income year. The DC of Taxes, with the approval of the Inspecting Joint Commissioner, can extend the deadline for filing the return for up to six months. Apart from that, the government has the authority to extend the deadline.

Punishment for infringement of the rules

If an assessee makes a false statement in any verification, return, or other document furnished under any provisions of the ITO, 1984, or knowingly and willfully aids, abets, assists, incites, or includes another person, the assessee will be guilty of an offense punishable by imprisonment for a term not less than three months, fine, or both.

Furthermore, an assessee will be found guilty of a crime that is punishable by law without reasonable cause fails to furnish the return of income in due time.

 Aside from that, the DC of Taxes will impose a fee of 10% of the last assessed amount, but not less than Tk 1000, as well as a fine of Tk 50 every day late.

Furthermore, if a person hides or intentionally furnishes erroneous details of his income, he will be guilty of an infraction punishable by imprisonment for up to five years but not less than three months, a fine, or both. 

However, any public worker or individual helping or employed by any person who discloses any particulars/information in violation of the provisions of this legislation is guilty of an offense punishable by up to six months in prison or a fine.

Existing income tax collection procedures are ineffective, complex, time-consuming, and inconvenient for taxpayers. In this sense, the entire tax administration system should be well-structured to prevent tax evasion.

Source: Income Tax Ordinance (ITO), 1984 & Finance Act, 2014,