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Income tax return filing surges

Published : 03 Feb 2024 10:45 PM | Updated : 04 Feb 2024 09:02 AM

In the 2022-2023 fiscal year, there has been a notable surge in the number of income tax return filings, marking a significant increase of 21 per cent compared to the previous year. 

According to data released by the National Board of Revenue (NBR), a total of 6,3340 lakh income tax returns were filed, reflecting a positive trend in tax compliance.

The uptick in filings has also led to a substantial boost in tax collection, with Taka 5901.65 crores collected against the returns submitted. This trend indicates a rise in revenue generation from the income tax sector, underscoring the effectiveness of NBR's efforts in bolstering tax compliance and revenue collection.

Despite this progress, challenges remain as a considerable portion of Tax Identification Number (TIN) holders have yet to file their income tax returns. Shockingly, NBR estimates reveal that 63.26 per cent of TIN holders, totalling 63 lakhs 6 thousand 919 individuals, have not complied with tax filing obligations even after the extended period.

The statistics further highlight that only 37 per cent of TIN holders have filed returns, indicating a significant gap in tax compliance. This underscores the need for enhanced awareness and enforcement measures to encourage more taxpayers to fulfil their obligations.

In response to the low compliance rate, NBR extended the filing period for income tax returns by two months until January 31, under special consi deration. However, despite these efforts, the target of 4 million taxpayers among TIN holders was not achieved, indicating a need for more targeted strategies to boost compliance.

NBR Member (Tax Administration and Human Resource Management), Syed Mohammad Abu Dawood, emphasized the positive trend in return filing over the past years and the corresponding increase in revenue collection. He attributed this success to NBR's strategic initiatives aimed at enhancing revenue generation and tax compliance.

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