Income Tax Return

A Complete Guide to Submitting Your Income Tax Return in Bangladesh

Filing an Income Tax Return (ITR) is a necessary duty for individuals and organizations in Bangladesh who are eligible.

It is not only a legal requirement but also a way to support the growth of the country. However, the process may seem difficult because of a lack of clear information. This guide aims to simplify the process by providing a clear and detailed step-by-step explanation of everything you need to know about submitting your income tax return in Bangladesh.

What is an Income Tax Return?

An Income Tax Return is a form used to report your yearly income, expenses, assets, and liabilities to the National Board of Revenue (NBR).

It is a detailed statement that helps tax authorities evaluate your tax obligation for a given assessment year. Filing your return on time and accurately ensures you comply with the country's tax regulations and helps you avoid any legal consequences.

Who Needs to File an Income Tax Return?

According to the Income Tax Ordinance, 1984, you are required to file an Income Tax Return if you meet any of the following criteria:

- You have a taxable income: If your total income during an income year exceeds the taxable limit (currently BDT 350,000 for male taxpayers, BDT 400,000 for females and senior citizens over 65, and higher for other groups), you must file a return.

- You have a Taxpayer's Identification Number (TIN): If you have a 12-digit TIN, you are generally required to file a return, even if you have no taxable income.

- You own a motor vehicle: If you own a car, jeep, or microbus.

- You are a club member: If you are a member of a club registered under the Value Added Tax Act, 1991.

- You run a business: If you operate a business or profession with a trade license.

- You are a professional: If you are registered with a professional body, such as a doctor, lawyer, or engineer.

- You are a company director: If you are a director or a shareholder of a company.

- You participated in a government or autonomous body tender: If you have taken part in a tender floated by the government, semi-government, or autonomous body.

Documents You Need to File Your Return

To ensure a smooth submission, you should gather the following documents:

- Salary Certificate: A document from your employer showing your salary, allowances, and tax deducted at source (TDS).

- Bank Statements: Statements for all your bank accounts for the relevant income year.

- Proof of Investments: Documents supporting eligible investments that qualify for tax benefits, such as Sanchaypatra, life insurance, and provident fund contributions.

- Asset and Liability Statement: A detailed list of your assets (e.g., property, cars) and liabilities (e.g., loans).

- TDS Certificates: Proof of tax deducted at source from your income.

- Rent Receipts: If you have rental income, keep the receipts.

- Business Documents: If you are a business owner, you will need your trade license, financial statements, and other relevant business documents.

How to File Your Income Tax Return: A Step-by-Step Process

You can file your income tax return either manually or online.

1. Manual Filing:

- Get the Form: Obtain the appropriate ITR form from the NBR website or your nearest tax office.

- Fill the Form: Carefully complete all required details, including your personal information, income details, and tax calculations.

- Attach Documents: Include all necessary supporting documents.

- Submit the Return: Deliver the completed form and documents to your assigned tax office.

- Receive Acknowledgment: You will be given an acknowledgment receipt upon submission, which you should keep for your records.

     2. Online Filing (e-Return): 

The NBR has introduced an online system to make the filing process easier.

- Register on the Portal: Visit the NBR e-Return website and register using your TIN.

- Fill the Online Form: Log in to your account and complete the digital ITR form with the required information.

- Upload Documents: You do not need to upload documents in this method.

- Submit and Pay: Review your return, submit it, and pay any tax due through online payment options.

- Get a Digital Receipt: You will receive a digital acknowledgment receipt once your submission is successful.

Understanding Tax Rebates and Exemptions

The government provides tax rebates on specific investments and donations to promote savings and social contributions.

You can claim a tax reduction on investments in:

- Sanchaypatra (Savings Certificates)

- Life Insurance Premiums

- Provident Funds

- Shares and Mutual Funds

- Donations to approved charitable organizations

Claiming these rebates can greatly reduce your overall tax amount.

Deadlines and Penalties:

The deadline for submitting your income tax return is typically November 30th of the year following the income year, which runs from July 1st to June 30th. Not filing on time may lead to penalties, including fines and additional interest on unpaid taxes.

Conclusion: The Importance of Being a Compliant Taxpayer Filing your Income Tax Return is a fundamental civic duty that fuels national progress. By being a compliant taxpayer, you contribute to the development of infrastructure, healthcare, education, and other essential public services. While the process may seem complex at first, understanding the requirements and following the steps outlined in this guide can make it a manageable and straightforward task. Always ensure you file your return accurately and on time to avoid any legal complications and to proudly play your part in building a better Bangladesh.