Bangladesh: Income Tax Return for Individuals: Overview and Requirements

A tax return is a formal way for a taxpayer to report their annual income, expenses, and assets to tax authorities. In Bangladesh, the return must be filed in a prescribed form as specified by the National Board of Revenue (NBR). This document includes statements about all types of income and assets both within and outside Bangladesh, and details of living expenses.

Who Must File a Tax Return?

Individuals required to file tax returns can be classified into two categories:

1. Those with taxable income

2. Those who are required to file returns compulsorily

Based on Taxable Income

1. Individuals earning more than BDT 3,50,000 annually.

2. Female taxpayers or those aged 65 and above, earning more than BDT 4,00,000.

3. Third-gender and disabled individuals earning over BDT 4,75,000.

4. Gazetted war-wounded freedom fighters with income exceeding BDT 5,00,000.

Compulsory Filers

Individuals are also required to file tax returns in the following cases:

1. When their total income exceeds the tax-free threshold.

2. If their income was taxable in any of the last three years.

3. Partners of any firm.

4. Directors or shareholders of a company.

5. Public servants.

6. Employees holding executive or managerial positions.

7. Individuals with income subject to reduced or exempted tax rates.

8. Those receiving loans of over BDT 20 lakh.

9. Individuals with various registrations (e.g., import/export, trade licenses, etc.).

A comprehensive list of 51 specific scenarios where filing a tax return is compulsory includes obtaining and renewing professional memberships, licenses, and utilities such as gas, electricity, and internet connections.

Where to Obtain and File Return Forms

Return forms can be collected from any income tax office or downloaded from the NBR's website (nbr.gov.bd). Taxpayers may also submit photocopies of the return form.

Tax Return Filing Deadline

For individual taxpayers, the tax return must be filed by 30 November every year, which is considered "Tax Day." However, certain categories of taxpayers, such as those residing abroad, may have different deadlines.

Filing Returns After Tax Day

It is possible to file returns after Tax Day, but additional taxes may apply under Section 174 of the Income Tax Act. Returns can be filed in self-assessment mode only after the deadline.

Consequences of Not Filing Returns

Failure to file returns can lead to a variety of penalties and limitations, including denial of essential services like gas and electricity connections, difficulties in receiving salaries, and possible penalties imposed by tax authorities. Additionally, unilateral tax assessments may be imposed by the Commissioner of Excise.

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Reference/ Citation‍

Income Tax Paripatra 2024-2025