Tax
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.
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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.
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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
DSCC conducts drive at Gonoshasthaya Nagar Hospital for non-payment of holding taxes since 1998-99
A team of Dhaka South City Corporation (DSCC) has conducted a drive at Gonoshasthaya Nagar Hospital as it has not paid the holding tax since the fiscal year 1998-99.
Holding tax is nothing but property tax paid to the local civic body annually.
A team led by DSCC Property Officer and Executive Magistrate Muniruzzaman conducted the drive to seal the hospital on Wednesday as it did not pay the holding tax dues of 24 years despite repeated notices.
This hospital has not paid DSCC the holding tax dues of Tk2.4 crore for 24 years, the civic body said in a release.
"Despite many notices and reminders for over a year, the hospital authorities failed to respond," said Muniruzzaman.
Also read: Zafrullah, 4 others sued over ‘negligence in treatment’ at Gonoshasthaya Kendra
"However, during the drive, the hospital authorities paid Tk10 lakh initially and promised to pay the remaining dues after consultation with the mayor," he added.
Also read: Gonoshasthaya plasma centre opened
Income tax returns made mandatory to get 40 types of services
The government has made it mandatory to show proof of income tax returns to get 40 types of services, said the new income tax guidelines for the fiscal year 2022-23.
An income tax return is a means of presenting a taxpayer's annual income, expenditure and wealth information to the income tax authorities in a prescribed form.
According to the Income Tax Act, the income tax return has to be filed in the prescribed form of the National Board of Revenue (NBR).
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“If the annual income of an individual-taxpayer is more than Tk3 lakh, if the income of a person of the third gender, women and 65 years and above is more than Tk3.5 lakh, if the income of a gazetted war casualty freedom fighter taxpayer is more than Tk4.75 lakh and if the income of the disabled taxpayer is more than Tk4.5 lakh, it is mandatory to submit his return,” said in the guidelines.
Apart from this, there are many other reasons that make it mandatory for a person to file a return. It is not only necessary to submit returns from the current financial year, but to get various government services, proof of return submission is also required.
BGMEA wants to keep 0.5pc source tax for next 5 years
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to keep the source tax on export earnings unchanged for at least for next five years to help the sector overcome difficult moment.
BGMEA president Faruque Hassan made the appeal during a post-budget press conference at a city hotel on Monday.
BGMEA first vice president Syed Nazrul Islam, senior vice president S.M. Mannan (Kochi), vice president Md. Shahidullah Azim, vice president (finnace) Khandoker Rafiqul Islam and BGMEA directors were present.
The government has proposed increasing the source tax on export profits to 1 per cent from the existing 0.5 per cent in the next fiscal year 2022-2023.
Also read: Bangladesh to stay safe, sustainable apparel sourcing destination: BGMEA
“If the industry sustains, revenue and new employments will be generated,” said the BGMEA chief, noting that the export volume is expected to reach US$ 41 billion in the outgoing fiscal year 2021-2022.
Hassan said overall revenue can be boosted without increasing source tax on expert earnings by raising capacity of the industry.
He also said they want to achieve export target of US$ 45 billion in the next fiscal year.
Also read: BGMEA hopes for continued support of German govt to RMG industry
The BGMEA chief also demanded 10 per cent special incentive on non-cotton garments export in an effort to encourage more export through investment in non-cotton sector.
Bangladesh total RMG exports’ 74 per cent are made of cotton while the global share of total textile consumption is only 25 percent.
The apparel makers say demand for non-cotton products is on the rise due to rapid change in consumers’ lifestyle and increasing demand for sustainable and environment-friendly products.
The BGMEA chief said they had a demand to withdraw 10 per cent tax and they still think it is logical to keep the cash incentives out the tax net as it is not an income through business.
Hassan also demanded zero duty on import of solar panels to promote environment-friendly sustainable growth of the industry. The government has proposed 1 percent import duty on solar panels for the fiscal year 2022-2023.
“This is now an industry of US$ 41 billion with government’s policy support,” he said, hoping that the government will consider the recommendations to help the industry grow further.
On BM Container depot fire, the BGMEA president said most of the containers destroyed in the fire were loaded with garment products. “This (fire) caused more damage to our image than financial loss.”
Income Tax Wing of NBR racing to meet target in last 4 months of fiscal
The National Board of Revenue (NBR) has taken a tougher move to increase its collection from the Income Tax Wing by expanding its net and realising outstanding taxes, as in the first eight months of the current fiscal it collected just over 50 percent of its target for the fiscal.
The revenue collection target from the Income Tax Wing for the 2020-21 fiscal is Tk 103,945.10 crore. But, according to available data from the NBR, till February of this year the wing has been able to collect only Tk 52,854.37 crore. It means the rest, an almost equal amount of Tk 51,090.7 crore, has to be collected in just 4 months.
In February, the 8th month of the fiscal, the NBR collected Tk 6,446.87 crore, almost 10 percent more than the corresponding month in 2021, when it collected Tk 5882.03.
The collection in the first 8 months of the current fiscal, is 13.3 percent higher than what it was in the first 8 months of the last fiscal.
According to the NBR sources, the Board has directed the tax commissioners to bring all eligible persons and organisations under the tax net and to take initiatives to remove the phobia regarding hassle in tax payment.
It also asked to intensify the tax survey and activate the inactive TIN numbers as submitting income tax return has been made mandatory for every TIN holder from this fiscal.
The Income Tax Wing of the NBR has already given necessary directives to the field offices in these regards.
As a part of the internal survey, the field level officials are collecting possible taxpayers information from city corporations, Rajuk and similar organisations, and sub-registrar offices. This is popularly called ‘secondary data’. Secondary data refers to the information of the individuals that are already kept in any organisations.
READ: NBR to speed up this fiscal's VAT collection
The NBR has also started to collect information of the potential taxpayers at the upazila level through secondary data gathering, otherwise known as internal survey.
For example, a file of ‘X’ company mentions that it has 450 employees. The concerned official can ask for the names of the 450 employees and their TIN numbers.
With this little move the NBR can find out the eligible taxpayers’ names and bring them under the tax net, if they are not already.
“This is called an internal survey,” a senior NBR official explained to UNB.
In this connection, he said that at first the NBR is taking information of the trade licences that have been issued by the city corporations and municipalities.
Later, TIN will be issued in their names to bring them under tax net and collect revenue from them.
Besides, he mentioned that the NBR is taking information on foreigners from Bangladesh Investment Development Authority (BIDA), vehicle owners from the BRTA, and land buying and selling information from the sub-registry offices, power distribution offices and service oriented offices.
Information of the flat and house owners are also being taken from the National Housing Authority, the NBR official said.
All these efforts would help NBR identify the eligible taxpayers who are still staying out of the tax net.
"We hope that by this we will be able to net the affluent section of society who are evading tax," he added.
According to the NBR sources, the NBR officials generally collect information of the potential taxpayers by door-to-door survey. A senior official of the NBR said that field officials have been asked to conduct their survey maintaining health safety issues.
The total revenue target for the NBR for fiscal 2021-22 has been set at Tk 330,078 crore.
Of the total target the VAT wing will contribute the lion's share with Tk 127,745 crore.
The target for Income Tax and Tax on Profit has been set Tk 104, 952 crore. The Income Tax Wing will contribute Tk 103945.10 crore.
The revenue collection from import duty will be Tk 37, 807.18 crore, Tk 55,225.26 crore from from Supplementary Duty, Tk 55.45 crore from export duty, Tk 3685.69 crore from Excise Duty, Tk 1529.90 crore from travel tac while Tk 1050 crore from other taxes and duties.
NBR announces tax exemption for donation to third gender
The National Board of Revenue (NBR) has exempted tax in donations to the Bandhu Social Welfare Society, an organization working with people of the third gender.
NBR Chairman Abu Hena Md. Rahmatul Muneem signed an order that Bandhu Social Welfare Society will get a conditional tax free facility. And this opportunity will remain valid for the next 5 years.
The NBR's public relations officer Syed A Mumen confirmed it to UNB on Wednesday.
The NBR order states that no tax will be levied on income received from all kinds of donations and grants other than the bank interest income of the Bandhu Social Welfare Society income from developmental work for the heterosexual and heterosexual population.
However, the condition is that this income should be used for welfare of the people of third gender and the organization must abide by the provisions of that ordinance.
Besides, in the last budget also special tax exemption was announced for giving jobs to people of the third gender.
READ: NBR may miss revenue target Tk 3.30 trillion this year too
It states that if an organization employs 10 per cent of its total employees or more than 100 third gender persons, then 75 per cent of the salary paid to those employees or 5 per cent of the tax payable, whichever is less, will be given to the employer as tax deduction.
Earlier, in the budget of last fiscal year, tax benefits were also given to the people of the third gender. For the first time, a tax-exempt income limit is waived for third-gender taxpayers. Their tax-free income limit has been increased from Tk 3 lakh to Tk 3.5 lakh.
BB asks banks to cut tax on service value of non-resident nationals
Bangladesh Bank has directed the banks to deduct tax at a fixed rate from the income of a non-resident person or organization for outward remittance in exchange of service.
The central bank’s instruction was accompanied with a letter containing instructions of the National Board of Revenue (NBR) to cut tax for outward remittances.
The Foreign Exchange Policy Department of BB issued the circular on Wednesday and sent it to the authorized dealer banks engaged in foreign exchange transactions.
READ: BB asks banks to follow Covid guidelines till Feb 21
According to a letter of NBR to banks in case of sending invoice value to the non-resident, the remaining amount can be remitted by deducting tax on the said amount at the applicable rate.
In case of sending the full bill to the non-resident, tax has to be deducted and paid on the calculated bill considering the applicable tax.
The NBR letter stated that if a person sent invoice value of Tk100 for consultancy service to any non-resident individuals, banks would send Tk 80 but deducting tax of Tk 20.
In case of sending cash value of Tk 100 as consultancy service of any individual, then banks would cut Tk 25 as tax including sources income tax and send Tk 75 to the non-resident foreign citizens.
As per the instructions of the National Board of Revenue, tax has to be paid in the name of a non-resident.
READ: BB to release commemorative coin on 50th anniversary of Japan-Bangladesh diplomatic tie
If any irregularity is observed in the case of tax deduction and deposit at source, it can be recovered at any time. In this case additional amount will be recoverable at simple interest rate of 2 per cent per month on the defaulted amount.
Tax corporates at par with region to face challenges of LDC graduation: DCCI
Dhaka Chamber of Commerce & Industry (DCCI) emphasized a smooth LDC graduation process, with the improvement of the country’s competitiveness, rational elimination of non-tariff barriers, and formulating a national way forward with strategies for local and export market competitiveness.
The DCCI said it in a press conference on the contemporary economic situation and to share their plan of action for the year 2022 held on Sunday.
DCCI President Rizwan Rahman presented the keynote paper on the contemporary economy. DCCI Senior Vice President Arman Haque and Vice President Monowar Hossain were also present on the occasion.
Regarding corporate tax rate he said that DCCI still advocates for reducing Corporate Tax rate to 5 percent and 7.5 percent respectively in 2022-23 and 2023-24 and it should be at par with the regional average tax rate.
Also read: DCCI urges NBR to simplify tax policy for business growth
DCCI President said that this year the Chamber will prioritize the CMSME sector, including export diversification, blue economy, economic diplomacy, infrastructure, private investment & FDI, export diversification, skills development, digital engagement, taxation, and LDC graduation.
He said the world is still suffering from the Covid outbreak, therefore strengthening CMSME sector should get priority, especially get priority, especially in terms of easy access to finance. To cope with the growing demand for a future skilled workforce, he urged for investing more in research and development, re-Skilling, and upskilling.
Terming blue economy as an emerging sector for Bangladesh he said Bangladesh’s ocean economy stands for 3.1 percent of the country’s overall GDP. Shipbuilding, tourism, sustainable fishing, gas, and mineral explorations are largely unutilized.
He, however urged creating a national blue economy development and implementation roadmap. To have a strong position in the economic diplomacy he suggested to develop negotiation skills on international trade, WTO matters and relevant International laws for win-win FTAs and PTAs.
“Our major export destinations are Europe and America covering almost 67 percent of our total export whereas Africa and Middle East are untapped. But after the LDC graduation export will face a challenge and for that, we have to formulate an export diversification strategy engaging all stakeholders,” he added.
Also read: Bangladesh economy suffered due to Covid pandemic: DCCI Webinar
Tariff rationalization, reduction of non-tariff barriers in cross-border trade, and minimizing anti-export bias is also important in this regard, he said. In 2020-21 private investment came down to 21.25 percent of GDP, but in 2021 FDI was USD 2.51 billion.
In order to revive private investment and FDI, he suggested for rationalizing the corporate tax structure, equipping economic zones and readiness, a national roadmap. He also stressed for automation of overall taxation, VAT, audit, arrears management, investigation and inquiry, appeal, revenue account management, taxpayer account management, and revenue information management.
He said a predictable and compliant tax culture would increase tax net and foreign investment and underscored the importance of a simplified VAT refund process.
You can submit tax online; app launched
Taxpayers now can pay income tax returns as well as assess their assets through an online web application -- digiTax.
Desh Universal launched the web application to simplify the submission of income tax returns.
Md Alamgir Hossain, member (tax policy) of the National Board of Revenue (NBR), inaugurated digiTax at a ceremony held at the auditorium of Economic Reporters’ Forum (ERF) on Saturday.
Alamgir Hossain said a huge interest has developed now among people to pay income tax as the number of taxpayers is now growing day by day.
Read: NBR moves to speed up revenue collection
Alamgir said digiTax would help simplify further the stride towards digitizing tax-related services.
Apart from allowing the submission of returns online, he said, the NBR would observe Income Tax Month from November 1 for which an 'environment of fair’ is being created at tax zones so that the taxpayers can submit their returns with ease and comfort.
President of Institute of Chartered Accountants of Bangladesh (ICAB) Mahmudul Hasan Khusru, Dhaka Taxes Bar Association President AKM Azizur Rahman, Bangladesh Cricket Board (BCB) Director Khaled Mahmud Sujon, digiTax director Golam Shahriyer Ronju and ERF general secretary SM Rashidul Islam were, among others, present on the occasion.
Read: NBR faces uphill task in achieving VAT collection target
Highlighting the main features of digiTax, its team member Syeda Nusrat Haider said there are many taxpayers of different levels in the country who do not know how to calculate income tax properly.
“In order to resolve this problem, we’ve come up with a new system through which the users can prepare their returns with ease and comfort through giving inputs as per their requirements,” she said.