NBR
Tax return submission deadline extended to January 1, 2023
The National Board of Revenue (NBR) has extended the tax return submission deadline to 1 January considering the weekly holidays on December 30 and 31.
The NBR issued a notification extending the deadline on Wednesday.
Earlier, the revenue board extended the return submission deadline until December31 ,2022 due to poor response from individual taxpayers.
Read: NBR extends income tax returns submission date to Dec 31
NBR extends income tax returns submission date to Dec 31
The National Board of Revenue (NBR) has extended the income tax returns submission date to December 31, considering application of trade bodies.
NBR Chairman Abu Hena Md. Rahmatul Muneem today officially announced the time extension while speaking at a seminar, on the occasion of National Income Tax Day 2022, held at the conference hall of Revenue Bhaban in Dhaka’s Segunbagicha.
READ: Tax lawyers seek 2 months more for filing income tax returns
Mohammad Muslim Chowdhury, Comptroller and Auditor General of Bangladesh, was present at the function as the chief guest.
The NBR chairman said that around 22 lakh income tax returns were submitted till November 29.
Many new taxpayers are willingly submitting returns this year and a good number of taxpayers sought time extension. Considering these, the time has been extended, he said.
READ: NBR counting losses for rampant tax evasion
He also said, submitting income tax returns is being simplified so that people can complete the process in a hassle-free environment.
Anyone with taxable income must submit returns, the NBR chairman said.
Read More: How to file your Tax Returns in Bangladesh
NBR collects Tk 90901.99cr revenue in 4 months, against target of Tk 97306.86cr
Bangladesh's National Board of Revenue (NBR) has collected Tk 90901.99 crore in the July-October period of the current fiscal year (2022-23), against the target of Tk 97306.86 crore.
According to NBR’s latest data, revenue collection has grown by 14.17 percent on average so far in October, compared to last fiscal year (FY 22).
In the fiscal year 2021-2022, the revenue collected in July-October was Tk 79622.66 crore.
Read more: Payra Port has so far earned revenues worth over Tk 600cr: PM Hasina
Though the revenue collection target saw a shortfall of Tk 6404.87 crore, the overall revenue collected in the July-October period is encouraging for the revenue board, said an NBR member today.
He said that the negative impact of the global economy has also hit Bangladesh. Despite various crises, NBR’s revenue collection has been satisfactory so far, the official said.
In the current fiscal year of Bangladesh (July 2022 - June 2023), NBR’s revenue collection target has been set at Tk 3.70 lakh crore.
Read more: Revenue collection down by 13% in Q1, reaching target a challenge
NBR works to impose additional duty on 330 goods
The National Board of Revenue (NBR) is working to impose additional duty on 330 products which are not essential goods, said commerce secretary Tapan Kanti Gosh.
He said no essential goods were imported in the country spending foreign exchange, Bangladesh Trade and Tariff Commission and NBR are assessing how much duty can be increased to discourage imports.
Read more: NBR supports Made in Bangladesh brand: Chairman
The commerce secretary told reporters around $1 billion can be saved by controlling those goods.
The government of Bangladesh had increased the duty on 135 products last May to discourage imports.
But even then the trade deficit has not reduced much. As a result, the Ministry of Commerce requested the Bangladesh Trade and Tariff Commission to verify that the duty can be increased on any other products, sources said.
Read more: NBR counting losses for rampant tax evasion
Following that request, the commission prepared a list of 330 products and sent it to the Ministry of Commerce.
Later the ministry sent it to the National Board of Revenue (NBR).
Read more: 20% year-on-year growth: NBR collected record Tk 8,733cr VAT in Aug
Mainly luxuries and less important national products dominate the list.
NBR counting losses for rampant tax evasion
Despite taking VAT registration, around 22 percent of companies are not submitting their VAT returns.
A large number of individuals are also remaining out of the tax network despite having taxable income.
A total of 26 lakh people or 52.41 percent of the taxpayers did not submit their income tax returns in the last fiscal year. Of the 50 lakh Taxpayers Identification Number (TIN) holders, some 24 lakh submitted their income tax returns during last fiscal year.
As a result, the National Board of Revenue is missing a large amount of revenue.
Though the companies are taking VAT for products or services from customers they are not submitting money to the government exchequer.
The visiting IMF officials have advised the NBR to increase revenue collection in different forms.
Economists and sector insiders have repeatedly suggested reforming the country’s revenue sector in a way that the tax ratio in the GDP would grow as per the volume of the economy.
Read more: 20% year-on-year growth: NBR collected record Tk 8,733cr VAT in Aug
In south Asia Bangladesh is the lowest tax-GDP ratio. A 2016 World Bank report said that the South Asian tax GDP ratio is 19.1 percent in Nepal, 16 percent in Bhutan, 12 percent in India, 9.9 percent in Afghanistan, 9.1 percent in the Maldive while in Bangladesh it is 8.8 percent. In 2017 Bangladesh's position in tax GDP ratio slid to 7.6.
While official data portrays the burgeoning growth of Bangladesh's economy, tax collection shows an almost opposite trend.
The tax collection as a percentage of GDP has been stuck at around 7.6 percent in 2017, the lowest in South Asia and one of the lowest in the world.
This prompts economists to question the disconnect since revenue receipts should increase in line with the expansion of the economy.
Dr Muhammad Abdul Mazid, former NBR chairman, told UNB that large companies might be avoiding VAT through different ways that the NBR cannot detect owing to a lack of capacity.
He suggested enhancing the capacity of revenue officials, along with ensuring good governance in the revenue sector so that people encourage paying taxes in a hassle-free environment.
Dr Ahsan H Mansur, executive director at Policy Research Institute (PRI), said businesses could not fully make a turnaround from the pandemic-induced losses in FY2022 because of an economic slowdown to some extent, which led to lower growth in VAT collection from large companies.
Commenting on the poor collection from the banking sector, he said banks are now going through a bad patch with a slump in profitability.
Mansur also suggested reforming the total VAT and tax sector to grow the revenue collection from domestic sources, in line with global standards, he said.
Read more: Tax return document not needed for loans up to Tk 20 lakh: NBR
"This shows a big mismatch," said Selim Raihan, executive director of the South Asian Network on Economic Modeling.
"It shows that there is no relation between GDP growth and revenue collection although the tax-to-GDP ratio increases in other countries because of the growth of the economy. In the case of Bangladesh, it is a puzzle,” he added.
According to NBR, there are 3.72 lakh companies that have taken VAT registration. Although among them 2.90 companies or 78.21 percent file VAT returns regularly.
However, still, around 22 percent of companies do not submit VAT returns, according to official sources at the VAT Division of the NBR.
A senior official of the NBR's VAT Division told UNB that 3.72 lakh businesses have registered VAT till August this year. Among them, 2.43 lakh or 83.66 percent have filed returns in online platform.
As per the VAT Act, companies which have annual turnover below Tk50 lakh do not need VAT registration.
Filing of tax returns: November declared as service month
The National Board of Revenue (NBR) has announced November as the tax service month in a bid to facilitate the submission of tax returns for the year 2022-23.
Each of the income tax zones will provide services to taxpayers from November 1 to 30.
NBR Chairman Abu Hena Md Rahmatul Muneem made the announcement at a media briefing at the NBR office in Segunbagicha on Tuesday (November 01, 2022).
Read more: How to file your Tax Returns in Bangladesh
He said thirty-one tax zones with a total of 649 tax circles will receive income tax returns of their respective taxpayers until November 30 in a festive environment as part of the tax service month.
The website of each tax zone will contain various income tax-related forms, circulars, return filing guidelines, video tutorials, and other necessary information to help the taxpayers.
Under the management of Tax Zone-4, Dhaka, by setting up return acceptance booths and help desks at Bangladesh Secretariat and Officers Club Dhaka from November 1-14. The tax information will provide the same for five days on November 20-24 at the Planning Commission.
Read more: Tax return document not needed for loans up to Tk 20 lakh: NBR
For the Armed Forces, the tax zone would facilitate tax return submission and tax information services at Sena Malancha of Dhaka Cantonment on November 9-10.
An online income tax return filing system is also effective. Taxpayers can register in the system, can prepare returns, and submit. Taxpayers can file returns online by taking advice about e-return through hotline number 09612717171, said NBR.
New taxpayers can register, and existing taxpayers can re-register subject to providing the necessary information at the registration booth.
Read More: NBR counting losses for rampant tax evasion
Implementation of the e-TDS system is ongoing in all taxing jurisdictional authorities at the source. Taxpayers will be given Income Tax Returns, TIN applications, and Challan forms.
Taxpayers in Bangladesh can pay income tax online through e-payment.
In the last fiscal year, only 27 percent of taxpayers filed their yearly tax returns within the deadline of 30 November, which was extended by another month by the NBR.
Read More: Dhaka North residents can get 10% rebate on holding tax, arrears
According to NBR data, it received Tk2456 crore income tax from tax returns of 18.55 lakh individuals, which is over 6 percent year-on-year rise from last year's 17.48 lakh.
e-TIN: Online registration process in Bangladesh
As part of the digitalization plan in Bangladesh, the traditional TIN certificate was updated and converted into e-TIN Certificate in 2013. The term ‘TIN certificate’ is familiar to almost everyone, including regular taxpayers in Bangladesh. Citizens of Bangladesh need TIN certificates and TIN numbers to start businesses, get tax rebates and more. Let’s take a look at how to register for an e-TIN certificate online in Bangladesh.
Who can get a TIN certificate in Bangladesh?
As per National Board of Revenue rules, if you earn around BDT 16,000 per month, you must have TIN. Apart from this, unemployed persons, including homemakers, can get TIN if needed. If you have something that requires a TIN, such as car ownership or membership in an organization, you must have a TIN certificate even if you have no taxable income.
However, men do not have to pay tax if their income does not exceed BDT 2,50,000 per year. For women of all ages and all citizens above 65 years of age that income limit is BDT 3,50,000. Citizens with disabilities do not have to pay tax if their income does not exceed BDT 4,25,000 per year. If your income is below the tax limit, you have to submit a zero return showing TIN.
Read Smart NID Card in Bangladesh: Online Application Process, Documents Needed, Fees
Benefits or uses of the e-TIN certificate
The first benefit of having a TIN is that you will be registered as a taxpayer. Then pay taxes up to your income limit, with which the government will run the country. Long ago, when things like income tax or value-added tax did not exist, the government used to collect tax from the land. But now, due to the diversity of people’s income, the government has to collect money to run the country through income tax.
By collecting an e-TIN number, you will be a proud taxpayer. If you have a TIN registration number, the bank will deduct a 10% tax from your savings. If not, then 15% will be deducted. Suppose you get a gift or prize money from somewhere, which is given to you through the bank, even, in that case, TIN holders will get a 10% tax deduction, and for those who do not have TIN, 15% will be deducted.
Although an e-TIN certificate is not required to open a bank account, if you take a bank loan, TIN is needed. The government provides different benefits and incentives to different professionals or small entrepreneurs at different times, none of which are available without TIN.
Read Bangladesh Smart National ID Card Correction Process
How to get an e-TIN certificate online in Bangladesh?
To get a TIN certificate, first go to this link: https://www.incometax.gov.bd/Registration/ and provide all the necessary information in the boxes. You will need to provide a user id, password, security question, answer, mobile number, and email address. After that, provide a captcha and click on verify button. NBR will send an SMS with a code to the given mobile number.
Now you have to type the code on the e-TIN activation page and click on the Activate button. Then on the next page, click on TIN registration/re-registration. A new page will appear. Here you have to provide all the important information and proceed by clicking the next button.
In the Taxpayer Type section, select Individual/Expatriate/Company – whichever is applicable. Those who didn’t have a teen certificate earlier will select new registration, and for those who had, there will be a re-registration option.
Read How to Get E-Passport in Bangladesh: Things you need to know
Then enter the old TIN number and proceed to the next page. Now enter all the information about the taxpayer’s income, such as occupation, source of income, and place, and go to the next page.
After that, all the personal details like name, address, national identity card number, VAT registration number (if any), etc., need to provide correctly and confirmed. The e-TIN will be ready in no time.
All the information, including photos, will automatically be verified using the national identity card number. The prepared TIN certificate can be printed immediately. Or it can be saved as a PDF, which can be printed later. So, you just got your TIN certificate. You don’t need to pay any penny to complete the whole process.
Read E-Passport for Children in Bangladesh: Application process and necessary documents
How to recover an e-TIN ID?
If your TIN certificate is lost, you can recover it online using your user ID and password. Since we log in to the portal once in a while, it is normal that you may have forgotten your ID and password too. Don’t worry; you can recover those too.
To recover your user ID or password, go to https://www.incometax.gov.bd/TIN Home and click on Forgot Password. Next, select Forgot My User Name and Forgot My Password. On the next page, you will need to provide the mobile number you used to register the TIN certificate. After that, you will be asked the security question you used during the registration. If your answer is correct, you will get a 4-digit code on your mobile via SMS. Put the code and verify your mobile number.
In the next step, enter the 4-digit code received on the mobile and re-enter your mobile number and submit. You will see the user ID of your TIN account as soon as you submit it.
To recover the password, click on Forgot Password menu again and select the Forgot My Password option and click on the Next button. Enter the User ID found in the previous step and put the Verification Letters, and click Next.
You will receive 4-digit verification to your mobile via SMS. Enter the verification code and click Recover My Account. Next, you will see a page to change the password. Enter a new password here with at least 4 Letters/Numbers.
In many cases, some people do the TIN registration through someone else. Because of this, they might have registered TIN with their mobile number. In this case, you can contact that person and take his help. Moreover, you can call the helpline of NBR and inform them about your problem and know the username of the e-TIN website. NBR Helpline: 09611-777111 or 333.
Read Birth Registration in Bangladesh: Application Process, essential papers
If this is also not possible, contact the tax office with a photocopy of your TIN number, if known, and one copy of your National Identity Card.
Final Words
Whether you are an employee, businessman, or professional, a TIN certificate is a must for you. However, many people are yet to get familiar with obtaining a TIN certificate online and think it is a complicated process.
Getting a TIN certificate is a very simple task. No need to go to any office for this. You can just go to the NBR website and fill in the necessary information, such as your mobile number and national identity card, and you can get the e-TIN number at home. So far, this article provides detailed guidelines for getting an e-TIN certificate online in Bangladesh. Hope it helps!
Read Changing/ Correcting Information in SSC and HSC Certificate
20% year-on-year growth: NBR collected record Tk 8,733cr VAT in Aug
National Board of Revenue (NBR) collected Tk 8,733 crore of revenue from value added tax (VAT) in August – showing a 20 percent year-on-year growth.
NBR’s collected VAT revenue in August is Tk 519 crore more than the target.
In this regard, NBR member (VAT) Moinul Khan said that government expenditure has decreased due to cost-cutting measures. Still, due to various initiatives and efforts, more VAT has been collected.
Read: Tax return document not needed for loans up to Tk 20 lakh: NBR
Generally, more VAT is collected from government purchases than from the private sector. This time there is an exception, he said.
In the first two months of the current financial year, collection of income tax, VAT, and customs amounts to Tk 40,270 crore, which is Tk 3,319 crore less than the target. In the current financial year, the total revenue target is Tk 3.70 lakh crore.
Read: Black money whitening got little response in FY 22: NBR data
According to NBR sources, in the first two months, Tk 10,373 crore have been collected in the income tax sector and Tk 14,863 crore in the customs sector.
In July-August, VAT from 30 small sectors amounted to Tk 4,869 crore. On the other hand, Tk 10,165 crore VAT has been collected from the private sector – retail and wholesale, rod-cement, hotels, and restaurants.
How to file your Tax Returns in Bangladesh
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/sign-up register in the e-return system.
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.
Read You can submit tax online; app launched
Step 1: Sign in to the e-Return System
Visit https://etaxnbr.gov.bd/#/auth/sign-in and put your TIN number, Password and Captcha then click on sign in. Or you can visit to https://etaxnbr.gov.bd/#/landing-page and click on the second option eReturn on the left. This will also take you to the Sign in page. After signing in the portal, you will get a dashboard and click on the “Return Submission” option from the left side.
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.
Read: Income tax return mandatory to buy aboveTk 5 lakh saving certificates
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 gender
Step 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: ICAB
Online 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 data
Filling 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 firm
New 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.
Tax return document not needed for loans up to Tk 20 lakh: NBR
The National Board of Revenue (NBR) has omitted the requirement of tax return documents for bank loans up to Tk 20 lakh.
The revenue board issued a notification in this regard today with immediate effect, which will be continued till June 30, 2023.
The budget for the fiscal year 2022-23 made it mandatory to show tax return documents to get services under 38 categories. Of them, tax return documents were made mandatory for bank loans of over Tk 5 lakh.
Read: NBR dreams to cross revenue Tk3.0 lakh crore in FY 22
As per the revised directive, NBR has relaxed conditions, after requests from business organizations, as small entrepreneurs were facing difficulties in showing tax-related documents.
Bangladesh Bank has increased the ceiling of loan disbursement to cottage, micro, small and medium entrepreneurs (CMSMEs). But loan distribution at the rural level became slow due to mandatory tax return documents for loans.
Considering the situation, the revenue board omitted requirement of showing tax return document for loan of up to Tk 20 lakh if the borrower has no taxable income.
Read: Income Tax Wing of NBR racing to meet target in last 4 months of fiscal