What is the return?

Information on a taxpayer’s annual income, expenditure and assets with the Income Tax authorities. Return is the medium of presentation in the prescribed form. The return of a natural person taxpayer as per Income Tax Act shall contain statement of all income, statement of all assets and liabilities situated in Bangladesh and outside Bangladesh and, as the case may be, statement of all expenditure related to living.

Types of returns

Earlier there were two methods of filing returns for natural person taxpayers – General Method and Universal Self-Assessment Method. Currently there is a self-assessment procedure for filing returns for natural person taxpayers. There is no possibility to file returns in any other way.

Who will file the return?

Who will file the return can be identified in two categories, namely-

1. who have taxable income; And

2. Those who have to file return compulsorily.

Based on taxable income who has to file returns

1. If the income of a natural person taxpayer (individual) is more than 3,50,000 rupees per annum;

2. Female and taxpayer aged 65 years or above if income is more than Rs 4,00,000 per annum;

3. Third gender taxpayers and disabled normal taxpayers whose income is more than Rs 4,75,000 per annum;

4. If the income of gazetted war casualty freedom fighter taxpayer is more than 5,00,000 rupees per annum.

Those who have to file returns for financial activities and services:

1. If the total income of the taxpayer exceeds the tax-free limit;

2. In any of the three years preceding the year of income, the taxpayer’s tax is assessed or his income becomes taxable;

3. If a partner in the firm;

4. If the shareholder is a director or shareholder is an employee of the company;

5. If the public servant;

6. If a salaried employee in any executive management position in any trade or profession;

7. If the income is exempt or taxable at reduced rate;

8. Subject to non-taxable income, taking a loan of Tk 20 (twenty) lakhs;

9. To obtain and maintain import registration certificate or export registration certificate;

10. For obtaining and renewing trade licenses in city corporations or municipal areas;

11. On receipt of registration of Co-operative Societies;

12. to be registered surveyors of general insurance and to obtain and renew licences;

13. To register sale or lease or transfer or deed or deed of sale or lease or transfer of ten (ten) lakhs of land, building or apartment in city corporation, municipality and cantonment board area;

14. To obtain and maintain credit cards;

15. to obtain and maintain membership of any recognized professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or as a similar professional;

16. Nikah Registrar under Muslim Marriages and Divorces (Registration) Act 1974 (Act No. LII of 1974), Hindu Marriage Registrar under Hindu Marriage Registration Act 2012 (Act No. 40 of 2012) and Special Marriage Act 1872 (Act No. III of 1872) to obtain a license or, as the case may be, to maintain appointment as a Register;

17. To obtain and maintain membership of trade bodies or professional bodies;

18. Obtaining and renewing drug licenses, fire licenses, environmental clearances, BSTI licenses and clearances;

19. To obtain and maintain commercial and industrial gas connections in any area and to obtain and maintain residential gas connections in city corporation areas;

20. To obtain and maintain survey certificates of any type of vessels operated for hire including launches, steamers, fishing trawlers, cargo, coasters, cargo and dumb barges;

21. Obtaining and renewing a brick production permit from the Department of Environment or the office of the District Commissioner;

22. Enrollment of child or pet in English medium school located in City Corporation, District Headquarter or Municipality;

23. To obtain or maintain electricity connection in City Corporation or Cantonment Board areas;

24. to obtain and maintain agency or distributorship of the Company;

25. To obtain and maintain a firearms licence;

26. Open letters of credit for imports;

27. 5 (Five) lakh post office savings account opened;

28. To open and maintain fixed deposits of Tk 10 (ten) lakhs;

29. 5 (Five) lakhs in purchase of savings certificates;

30. To participate in municipal, upazila, zilla parishad, city corporation or national parliament elections;

31. to participate in shared economic activities by providing motor vehicles, space or space, accommodation or other resources;

32. In receipt of salaries and allowances of persons working in managerial or administrative or supervisory positions of production activities;

33. In case of receipt of commission, fee or any other amount through mobile banking or electronic money transfer and mobile phone account recharge;

34. In receipt of any payment by the resident from any company for advisory or consultancy services, catering services, event management services, manpower supply, security supply services;

35. In receipt of monthly payment above 16 (sixteen) thousand taka from the government through monthly payment order or MPO;

36. Registration or renewal of insurance company’s agency certificate;

37. During registration, change of ownership or renewal of fitness of motor vehicles other than two-wheel or three-wheel motor vehicles;

38. To release foreign grants in favor of NGOs registered with the Bureau of NGO Affairs or microcredit institutions licensed from the Microcredit Regulatory Authority;

39. to sell goods or services using digital platforms to consumers located in Bangladesh;

40. In respect of applying for membership of a club registered under the Companies Act, 1994 (Act No. 18 of 1994) and the Societies Registration Act, 1860 (Act No. XXI of 1860);

41. When submitting tender documents by the resident for the purpose of supply of goods, execution of contract or provision of services;

42. When accepting the supply of any goods or services by any company or firm;

43. While submitting bill of entry for import or export of goods;

44 Capital Development Authority (RAJUK), Chittagong Development Authority (CDA), Khulna Development Authority (KDA), Rajshahi Development Authority (RDA), Gazipur Development Authority, Cox’s Bazar Development Authority or, from time to time, similar authorities constituted by the Government or the City Corporation or When submitting the building construction design for approval to other concerned authorities of the municipality;

45. To register, license or register and maintain a vendor of stamp, court fee and cartridge paper or as a deed writer;

46. To open and maintain bank accounts of trusts, funds, foundations, NGOs, microcredit organizations, societies and cooperative societies;

47. of the house owner while renting or leasing the house in the city corporation area by a specified person;

48. of the supplier or service provider when receiving the supply of goods or services by a particular person.

File returns by tax day

A natural person taxpayer has to file the return by tax day. Tax must be paid as per Section 173 of the Income Tax Act in case of return filing by tax day.

Return is filed after tax day

Can returns be filed after tax day? yes will go In this case the tax has to be paid as per Section 174 of the Income Tax Act.

Return Filing Procedure

Individual taxpayers are required to file self-declared returns whenever they file on tax day or after tax day. There is no opportunity to file returns in normal mode.

Can self-declared returns be filed after tax day?

yes After tax day, natural person taxpayers will file their return in self-assessment mode. No other mode of return filing is allowed.

What is tax day?

Tax day is the last date for filing the return by the taxpayer. Filing the return by tax day does not incur any penalty or surcharge. 30th November every year is the tax day for natural person taxpayers as per Income Tax Act. For the tax year 2023-2024, 30 November 2023 is the tax day, i.e. the last date for filing returns without any penalty or additional payment. A natural person taxpayer shall file the return for the tax year 2023-2024 between 1 July 2023 and 30 November 2023.

Also, the following areas have different tax days, viz.

1.  the tax day for the tax year 2023-2024 for a natural person taxpayer who has never previously filed a return is 30 June 2024;
2. in the case of a natural person taxpayer residing abroad, the 90th (ninetieth) day from the date of his return to Bangladesh, if such person—
3.  stays outside Bangladesh on leave for higher education or on deputation or deputation for employment; or
4. resides outside Bangladesh in possession of a valid visa and permit for the purpose of earning money;
5. In case the tax day date is a public holiday, then the next working day of that day.

Where to file return

The return is to be filed as mentioned in the TIN certificate or according to the circle. If the taxpayer is abroad at the time of filing the return, the return can also be filed at the Bangladesh Embassy abroad. Taxpayers can also file returns online using this website https://etaxnbr.gov.bd .

However, return preparers must file taxpayer returns using this website https://etaxnbr.gov.bd .

What happens if the return is not filed?

In cases where submission of proof of return submission is made mandatory, non-submission of return will result in denial of services. For example, gas and electricity connection will not be available or the connection will be disconnected, there will be difficulty in receiving salaries and allowances, etc.

There is also a possibility of facing the following issues, such as-_

A. Payment of penalty imposed by the Commissioner of Excise under Section 266 of the Income Tax Act.

b. Payment of tax imposed unilaterally by the Commissioner of Excise.

The evidence with the return! Information documents must be submitted

Below is a list of proofs/details to be submitted in support of income from various sources along with the return (list is partial):

(a) Income from employment

(b) pay statement;

(a) bank statement or bank certificate if there is a bank account or if there is income in the bank interest sector;

(e) Evidence in favor of investment rebate claim, if any. For example, proof of premium payment if you have a life insurance policy.

(b) Income from rent

(b) copy of rent agreement or rent receipt in support of house rent, details of monthly house rent received and related bank account statement of house rent received;

(a) copies of receipts in support of payment of municipal tax, city corporation tax, land revenue;

(e) bank statements and certificates in support of the interest on the loan if the house has been purchased or constructed through a bank loan;

(iii) copy of receipt of insurance premium if house-property is insured;

(g) Documents in support of receipt and expenditure of rent in respect of other rents.

(c) Income from agriculture

(b) documents required in respect of barga or share;

(a) Where the taxpayer claims expenditure exceeding 60 per cent of the gross receipts, the necessary documents in support of such claim.

(d) Income from business

Income statement and balance sheet of business or profession and other proofs including bank statement.

(e) Capital Income

(b) copy of deed of sale/transfer of immovable property;

(a) photocopy of invoice if income tax is deposited at source;

(e) In case of profit from trading of shares of companies listed in the capital market, deed in this regard.

(f) Income from financial assets

(b) its photocopy if the securities are script and statement in support of the account if it is scriptless;

(a) Certificate from interest paying authority if there is interest income;

(e) Certificate/bank statement or institutional certificate from concerned bank authority in support of loan interest if bonds or debentures have been purchased with institutional mines.

(e) bank statement, copy or certificate of dividend warrant if income is in the form of cash dividend;

(f) Copy of the certificate taken at the time of encashment of the savings certificate or at the time of receipt of interest if there is interest income from the savings certificate;

(u) Bank statement/certificate if there is bank interest income;

(g) Other sources of income sector

Relevant documents in support of source of income.

(h) Income of partnership firm

Income statement and balance sheet of the firm.