How to Submit Tax Returns in Bangladesh

How to Submit Tax Returns in Bangladesh?

Paying taxes is one of the biggest duties that every Bangladeshi citizen has to follow once they are of age and have an income. It’s like voting when you are over 18 years of age. This duty, in fact, falls under the Income Tax Ordinance (ITO) of 1984.

To ensure that you are able to submit tax returns in Bangladesh properly while following the law, Legal Advice BD will show you the process. We will share all the latest information about submitting tax returns and the process in detail.

Who Needs To Submit Tax Returns in Bangladesh?

Before we get into how to submit tax returns in Bangladesh you need to know if you are someone who needs to do so. Anyone, man or woman, whose income is more than Tk 3,00,000 and Tk 3,50,000 needs to pay taxes. 

Here is a simple table that shows who doesn’t need to submit tax returns more clearly:

Tax-Exempted Income CategoriesFor FY 2022 – 2023Planned FY 2023-2024
Male taxpayerBDT 300,000BDT 350,000
Women and Senior citizens 65+ yearsBDT 350,000BDT 400,000
Physically Challenged persons*BDT 450,000BDT 475,000
War-wounded gazette freedom fighterBDT 475,000BDT 500,000
Third gender taxpayersBDT 350,000BDT 475,000

* Parents and guardians of physically challenged children or dependents will have their income tax limit increased by BDT 50,000 for every child or dependent.

When To Submit Tax Returns in Bangladesh?

Generally, you will need to submit tax returns in Bangladesh between July 1 and November 30 of every fiscal year. However, the National Board of Revenue or NBR can extend the deadline. For FY 2023-24 the deadline was extended to January 31, 2024.

What Is The Rate of Income Tax in Bangladesh?

As stated by the NBR, you must submit tax returns in Bangladesh once your income meets a certain limit. There are, of course, particular exceptions to the rule. These exceptions have a higher limit before they must submit tax returns. 

The default limit in Bangladesh is an excess of income beyond BDT 3,00,000. Those with an income less than BDT 3,00,000 then still need to submit tax returns, but they can be filed under ‘zero return’ to avoid fines and penalties.

The amount of tax return you need to submit will be a certain percentage of your income. Here is a table that shows the percentage you need to pay:

Total IncomeFY 2022 – 2023 Tax Rates (%)
Up to first Tk. 3,00,0000%
For next Tk. 1,00,0005%
For next Tk. 3,00,00010%
For next Tk. 4,00,00015%
For next Tk. 5,00,00020%
For the rest of the amount25%

Required Documents To Submit Tax Returns in Bangladesh

Required Documents To Submit Tax Returns in Bangladesh

Before we start the process of submitting tax returns in Bangladesh, you need to know which documents you will need. Here is the basic list you should collect:

  • eTIN
  • NID copy
  • Home address
  • Property details(if any)
  • Tax-free income certificates(if any)
  • Previous years return
  • Investment details(if any)

If you are employed, then you also need the following:

  • Salary certificates
  • Bank statements

You might require additional documents, but you should consult with your income tax lawyer for assistance.

How To Submit Tax Returns In Bangladesh?

It’s time to go over how to submit tax returns in Bangladesh. The process can be done in two ways; offline or online. Right now, we will be going over the online process as it’s hassle-free. 

Step 1: Register on the E-Return System

To submit tax returns, you will need to visit the National Board of Revenue (NBR) website and create an account using the e-return system. While you register, you will also need to input your Tax Identification Number (TIN), biometrically registered mobile number, and captcha.

To verify that you have registered properly, you need to enter the OTP provided and set a password for future logins.

Step 2: Login to the System

With the registration complete you should log in to the e-return system with your TIN, password, and captcha. After you have logged in you should go over to the ‘Return Submission’ option on the dashboard.

Step 3: Provide Tax Assessment Information

Once there, you will need to fill in the required tax assessment information, including income year, income source, heads of income, and return scheme. For those who are exempt from submitting tax returns in Bangladesh they need to provide the relevant amount and your resident status. 

Click “Save and Continue” to proceed.

Step 4: Enter Income Information

For those that must pay their taxes they need to give details about your income sources, tax rebates, and asset and liability information.

Step 5: Income Details

Next up, tax payers need to list their income sources under ‘Heads of Income’, such as salaries, securities interest, or house property income. 

Be specific if your sole income source is your salary or if you have income from other sources. 

Step 6: Other Sources Income Details

Those with other income sources must give details of income from other sources, including foreign or tax-exempt income. 

Add the relevant information such as income source, payment authority, and related expenses.

Step 7: Complete Additional Information

With your income information added you need to submit your primary income source location, eligibility for rebates, and any special circumstances like being a war-wounded gazette freedom fighter or having a disability.

Step 8: Submit Investment Details

After that you need to input information like deposit premium service (DPS) or life insurance premium. This information will help to determine your total eligible investment for rebates.

Step 9: Input Expenditure Information

Now you need to give all the details of your expenditures. 

If your total assets go beyond BDT 40 lakh, complete the IT10B form; otherwise, specify your total annual expenses without it.

Step 10: Tax and Payment

State and add any source tax and advance tax payments already made, which will be deducted from your total tax liability.

Step 11: Review and Submit

You have reached the end of your tax return application. Now all you need to do is review all the information provided and submit your tax return. 

At this stage you can choose to submit it online or offline:

  • Offline or Paper Return: Print the form and submit it to the relevant Income Tax Circle Office.
  • Online Income Tax Return: Submit electronically through the e-return system. Once submitted, no changes are possible.

If you are successful with your submission, you’ll get a confirmation message along with a Reference ID and Acknowledgment Receipt for your records.

Further Reading: Breaking Down the New Income Tax Slab in Bangladesh (2023-24)

Conclusion

So that’s how you submit tax returns in Bangladesh, or at least you can do it online. As Bangladeshi citizens, it’s our duty to pay taxes as this boosts our economy. Therefore, every single one of us should learn the process of filing tax returns. 

With the advancement and integration of technology and the internet the process of submitting tax returns is easier and more straightforward. But if you do encounter any issues you should contact Legal Advice BD income tax lawyers. We are available at all times to help you overcome any issues you might have.

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