How to fill up income Tax Return both online and offline 2024 ?

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Under the Income Tax Ordinance (ITO) of 1984, individuals in Bangladesh are mandated to fill up income tax return if their income exceeds the non-chargeable limit or the assessable income of another individual. This process requires submission using the designated form to the Deputy Commissioner (DC) of Taxes. Here’s a comprehensive guide on how to prepare and file income tax returns in Bangladesh.

Who Needs to Submit Income Tax Return in Bangladesh?

In Bangladesh, individuals whose income surpasses Tk 300,000 for men and Tk 350,000 for women are required to file income tax returns. These thresholds vary based on specific categories, with higher exemptions for senior citizens, physically challenged individuals, war-wounded gazette freedom fighters, third-gender taxpayers, and parents or legal guardians of physically challenged dependents. The Bangladesh National Budget Speech for 2024-25 was delivered by the Finance Minister on 1 June 2024. Some of the main tax measures of the budget concern individual taxation. Men and women whose income is more than Tk 300000 and Tk 350000 respectively have to pay income tax return in Bangladesh. These tax rates vary based on income levels, with higher rates applied to higher income brackets. The income tax-free limit would be increased for parents or legal guardians of physically challenged children or dependents by Tk. 50 thousand for each child/ dependent.

Time Period for fill up income Tax Return Submission

Tax returns in Bangladesh must be filed between July 1st and November 30th each fiscal year (FY). However, the National Board of Revenue (NBR) may extend the deadline for taxpayers’ convenience, as recently extended until January 31, 2024.

What is the Rate of Income Tax

Under the rules of the (NBR), once your income crosses a specific limit, you’re obliged to submit taxes on it. But there are exceptions for certain categories—they have higher thresholds before tax payments kick in. By default, if your yearly income goes beyond TK 350000, you need to file your income tax. Even if your income is below any of the set thresholds, it’s still necessary to file income tax. However, in such cases, you simply file it as a ‘zero return’ to avoid fines and penalties.
Total Income Rate of Tax(%) for FY 2024 – 2025
Up to first Tk. 3,50,000 0%
For next Tk. 1,00,000 5%
For next Tk. 4,00,000 10%
For next Tk. 5,00,000 15%
For next Tk. 5,00,000 20%
For the rest of the amount 25%
Furthermore, the minimum amount of income tax payable for those who live in DNCC, DSCC, and Chittagong City Corporation is Tk. 5,000, other city corporations are Tk. 4,000 and outside city corporations are Tk. 3,000.

What is the Time Period of Submission to fill up income tax return

The tax filing period is from July 1 to November 30 in Bangladesh for each FY, and you must file your returns during this time.

Tax Calculation

Income tax calculation in Bangladesh is based on a progressive tax system. As income increases, the corresponding tax rate rises. You can find some income tax calculators in Bangladesh online, predicting your tax liability.

Step-by-Step Guide: How to Fill up Income Tax Return in Bangladesh

Filing of income tax returns in Bangladesh can be done through both offline and online methods. Here’s a step-by-step guide for both approaches:

TIN Certificate

As a Bangladeshi citizen holding a 12-digit TIN certificate, annual income tax return filing is obligatory. Firstly get a TIN, and upon application, you’ll be allocated a specific zone or region. Citizens with TINs can conveniently file income tax e-returns online, allowing you to instantly download your tax certificates from home.

Step 1: Register on the E-Return System

To file an e-return in Bangladesh, visit NBR website and sign up/register on the e-return system entering your TIN and biometrically registered mobile number, and captcha. Click Verify, complete phone verification with the provided OTP, and set a password for future logins.

Step 2: Login to the System

visit NBR website, select ‘eReturn’ and input your TIN, password, and captcha to sign in. Once signed in, click on the ‘Return Submission’ option on the left from the dashboard.

Step 3: Provide Tax Assessment Information

In the initial section of the e-return form, there is ‘Tax Assessment Information’. Here,  you must provide income tax-related information like income year, heads of income, income source, and return scheme. If your earnings are tax-exempt, provide the relevant amount and your resident status.  Click the “Save and Continue” button to proceed to the next step.

Step 4: Enter Income Information

Here, you have to provide information regarding your income source, data on tax rebates, and fill in asset and liability details.

Step 5: Income Details

During this step, provide your multiple sources of income under ‘Heads of Income’ like, securities interest, salaries, house property income etc.  Additionally, if your sole income source is your salary, opt for ‘Salary’. Otherwise, select ‘Income from other sources’, along with specifying the sources from the dropdown menu. If you’ve income exempt from tax, input the amount in the designated box. This lays the foundation for accurate tax calculations. Fill the “Income Summary” accurately. Proceed by clicking ‘Save and continue.’

Step 6: Other Sources Income Details

In this step, you need to provide your income details from other sources, including foreign or tax-exempt income. Provide details like the income source, payment authority, latest income received date, and related expenses and amounts. The system will automatically compute your net income, displayed on the screen. Proceed by clicking ‘Save and continue’.

Step 7: Complete Additional Information

Specify your primary income source location from a dropdown menu, eligibility for rebates, and shareholder directorship status. Furthermore, mention if you’re a war-wounded gazette freedom fighter, seeking benefits as a parent or legal guardian of a person with a disability or if you have a disability.

Step 8: Submit Investment Details

Choose a category for your investments like, deposit premium service (DPS), life insurance premium, general provident fund, group insurance premium, approved stocks or shares, etc. For respective categories, select that option and input details like Bank’s name, account number, and deposit amount. This will reveal your total eligible investment for rebates. Proceed by clicking ‘Save and Continue.’

Step 9: Input Expenditure Information

In this step, provide your expenditure information. You’ll see various expenditure categories, enabling you to input amounts and include comments. If your total assets exceed Tk. 40 lakh, complete the IT10B form. Otherwise, if below Tk. 40 lakh, specify your total annual expenses without IT10B. Once you’ve filled in these details, the system will calculate the amount of tax you owe.

Step 10: Tax and Payment

In this section, declare any source tax and advance tax payments you have already paid. The system automatically deducts these from your total tax liability. If your income incurs no tax, the payable amount is zero, resulting in a ‘Zero Return.’ With this, your income tax return is almost completed.

Step 11: Review and Submit

Review all the processes, if it is okay then submit it. Income tax returns can be submitted both online and offline-
  • Offline or Paper Return
Print the income tax return form by selecting the offline (Paper) Return option. Submit the form directly to the relevant Income Tax Circle Office free of cost.
  • Online Income Tax Return
Opt for ‘Online Return’ for electronic submission. Review the form and select ‘No’ if you’ve any doubts about the information after reviewing. If all is accurate, proceed to submit by selecting ‘Yes’ in the Verification and Signature section. Once submitted, no changes are possible. Upon successful submission, a message confirms, “Congratulations! Your return submission was successful.” From here, download the Reference ID and Acknowledgment Receipt for your records. Your income tax return process is now complete. You can now file your return electronically or print a copy of the form and mail it straight to the income tax department.

Paper-Based Offline Tax Return

If you find e-returns challenging, you can proceed to the traditional method.
  • Obtain Necessary Forms
Collect the required tax return forms, either from your nearest income tax office at no cost or download them from the NBR website.
  • Complete the Forms
Fill out the return form, providing accurate information on income, expenditures, and investments.
  • Prepare Required Tax  Documents
Primarily, acquire copies of eTIN, NID, previous year’s return, and address details. For employees, salary certificates, bank statements, provident fund information, Recognized Provident Fund (RPF), TDS Chalan, assets-liabilities statement, and other relevant tax documents. Prepare investment, property, and tax-free income papers. Depending on your various income sources, submit papers as required.
  • Consultation if Needed
If you encounter complexities or doubts, seek guidance from professionals or legal advisors. Explore convenient options for filing your taxes in Bangladesh through a third-party tax management system like Recom Consulting Limited. These online tools can make the process smoother and more accessible for you.
  • Visit the Tax Circle Office
After form completion, submit the completed forms to the designated Tax Circle office based on your taxpayer category. The key difference is that the online process is more streamlined and allows you to submit the return directly through the e-Return system, while the offline method requires physically submitting the paper form. Both options are valid ways to file up  income tax return in Bangladesh.

FAQS:

Who is required to file a tax return in Bangladesh?
  • Individuals whose income exceeds the set thresholds (e.g., Tk 300,000 for men and Tk 350,000 for women) are required to file a tax return. Additional thresholds apply for senior citizens, physically challenged individuals, and others.
How is income tax calculated in Bangladesh?
  • Income tax in Bangladesh is calculated using a progressive tax system, where the tax rate increases as the income level rises. Various income brackets have specific tax rates ranging from 0% to 25%.
Can I fill up income  tax return online if I don’t have a TIN certificate?
  • No, you must obtain a 12-digit TIN certificate before you can file an online tax return. The TIN certificate is mandatory for all tax filings.
How can I make a tax payment in Bangladesh?
  • Tax payments can be made through designated banks, online payment systems, and at the tax office. The e-return system also allows for electronic payment methods.
How do I register for the e-return system in Bangladesh?
  • To register, visit the NBR website, enter your TIN and biometrically registered mobile number, complete phone verification with the OTP provided, and set a password for future logins.

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