Income tax return submission used to be a hassle in Bangladesh. As the government walks toward a digital Bangladesh, the process of submitting tax returns has become easier. Now you can submit your tax return files online. In addition to that, the traditional paper-based tax return submission process is also there. Let’s see the detailed process of filing tax returns in Bangladesh.
Essential Documents Needed for Tax Returns Submission
Read the tax return instruction for the most recent fiscal year from NBR. If you filed the return last year, keep its copy with you.
Manage some essential papers including your income statement/salary statement/profit and loss statement/ personal and family expenditure information.
Read: Tax return document not needed for loans up to Tk 20 lakh: NBR
Don’t forget to keep your investment information to get a tax rebate. If you are not aware of something, take help from experienced people.
Step By Step Guide to File Your Tax Return Online in Bangladesh
Bangladeshi citizens who have TIN certificates are compulsorily required to file income tax return every year. If you don’t file returns, you are subject to penalties and fines as per law. From this year you can file income tax e-return online from home (Fiscal Year 2021-22) and download the tax certificate instantly. The following part will enlighten you about submitting income tax returns online without going to the tax circle office.
Registering with the e-Return System
To submit an e-return online, you will have to register or sign up for the e-return system using your TIN and mobile number registered in your name. Follow the steps below to register in the e-return system. Visit https://etaxnbr.gov.bd/#/auth/
Enter your TIN number in the first box. Then enter the mobile number which is biometrically registered with your own national identity card (excluding the first zero). Then enter the captcha code correctly and finally click on the Verify button. Verify your phone using the provided OTP and set a password to log into the e-return system in the future.
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Step 1: Sign in to the e-Return System
Visit https://etaxnbr.gov.bd/#/auth/
Step 2: Tax Assessment Information
At the beginning of the e-return form, you will be given Tax Assessment Information or information related to income tax such as, year of income and Source information must be provided. You will also need to provide Heads of Income.
Then go to the next step by clicking the Save and Continue button.
Step 3: Income Information
In this step, you have to provide information about the source of your income, information about a tax rebate, asset liabilities, expenditure, etc.
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Step 4: Income Details
In this step select your various sources of income. If your only source of income is salary, select Salary. If you have income from sources other than salary, select Income from Other Sources and select the source from the dropdown option. Also, if you tax exempted income put the amount in the appropriate box.
Then you need to show your annual income and business expenses in “Income Summary”. Fill the Income Summary and click the “Save and Continue” button to go to the next step.
Step 5: Expenditure
In this step, the expenditure information should be given. If your total assets are Tk. 40 lakh or more, the expenditure information must be filled in the statement form. For this, the IT10B form must be filled. However, if your total assets are less than Tk. 40 lakh, you don’t need to fill IT10B. In this case, you have to mention the total amount of your annual family and personal expenses.
Read NBR announces tax exemption for donation to third genderStep 6: Tax and Payment
If you have paid any source tax and advance tax (Source Tax and Advance Tax) you can show them here. Source tax and advance tax will automatically be deducted from your total tax payable.
If no tax is payable on your income, the Payable Amount will be zero. Those whose return Payable Tax Amount is Zero or Zero, their return is called Zero Return.
At this stage your income tax return is completed. Now you can file your return online or take a print copy of the return form and submit it directly to the income tax circle.
Offline or Paper Return:
Take the print copy of the income tax return form by clicking the offline (Paper) Return. Then submit the form to your concerned Income Tax Circle Office. There is no fee to pay for this.
Read Focus on extending tax net to enhance Tax-GDP ratio: ICABOnline Return:
You can submit the return online by clicking the Online Return. After that, you can see a preview of the return form. At the bottom of the form, you have to give Yes in the Verification and Signature option to give your consent.
Your permission to file the return is finally sought here. Remember, after clicking on the Yes button, your return will be submitted. After that you can't make any changes. So if you have any doubts that there is any mistake in the information, you can check the form again by clicking the No button. If everything is correct, then click on the Yes button and submit the return.
Step 7: Download Acknowledgement Receipt
If the income tax return is successfully submitted, you will see a message, Congratulations! Your return submission was successful. Here you will see the option to download a Reference ID and Acknowledgment Receipt of the return submission.
Read Black money whitening got little response in FY 22: NBR dataFilling Paper-Based Tax Return
If you are not familiar with computers or if you think e-return is a bit complicated, you may use the old fashion way. You fill up the return form with a pen and submit it. Every year changes are made in this form from NBR. Taxpayers can collect any new or old return form from their nearest income tax office free of charge.
In addition to that, the required forms can also be downloaded from the NBR website. The applicable forms for the taxpayer must be duly filled by providing accurate and relevant information. If there is any doubt or confusion about any matter at this time, it is better to consult a lawyer.
After completing the forms go to your tax circle. Separate income tax circles are specified for filing returns based on the class of taxpayers. For example, all civilian government and pensioners located in Dhaka District whose names begin with letters A, B, and C, are required to submit returns to Dhaka Tax Circle-71 and Tax Zone-4.
Read 300,000 VAT collecting machines to be installed in Dhaka, Ctg by pvt firmNew taxpayers can file income tax returns by mentioning the 12-digit TIN number, name, place of employment or address of the business establishment under the tax zone. Besides, if necessary, they can know about the circle office from the nearest income tax office or tax advisory center.
Penalty for Late Submission of TAX Return
There is a provision for a penalty if a return is not filed on time. In this case, the Deputy Tax Commissioner may impose a one-time penalty of up to 10% of the tax payable in the latest tax assessment. However, the one-time penalty shall not be less than Tk.1,000/-. In addition to this, there is a provision to penalize those who fail to file the return on time and for each day of failure to file the income tax return at the rate of Tk. 50.
Final Words
We hope this step by step guide helps you to submit your income tax return successfully. You can easily register online for submitting tax return files. Besides these, citizens can submit tax returns physically to the income tax office. If the tax return files are submitted late, then you have to pay some fines. So, make sure you submit your tax return on time and avoid any penalties and complications.
Read Experts for more growth-friendly, simple, transparent tax system.