File Income Tax Return in Bangadesh 2023 – An income tax return refers to the formal declaration of one’s earnings using the prescribed format, which must be submitted to the National Board of Revenue (NBR) within the stipulated time. This obligation applies to individuals whose income surpasses the threshold for tax-free income or who have to submit income tax returns under the provision of the Income Tax Act 2023 even if he doesn’t have any income. Individual taxpayers are required to pay income tax, if any, on their total taxable income and also have to file their annual tax returns on or before 30th November, a date marked in Bangladesh as Tax Day.
So, when Tax Day is approaching, we often find ourselves asking the question – Am I required to file an income tax return? Today, we are going to address this question.
Provision to file income tax return under Income Tax Act 2023
As per Section 166 of the Income Tax Act 2023, following person shall file a return of income of the income year –
(a) If the income exceeds tax-free limit
Under the provisions of the Finance Act 2023, applicable to individuals who intend to submit their income tax returns by or before November 30th, 2023, the tax-free threshold for male taxpayers stands at Tk. 350,000. For female taxpayers and senior citizens aged 65 or older, the threshold is Tk. 400,000. Third-gender and physically challenged taxpayers have a higher threshold of Tk. 475,000, while for the Gazetted war-wounded freedom fighters, the limit is Tk. 500,000. Additionally, in the case of parents of a physically challenged individual, the threshold can be increased by Tk. 50,000, with either the father or mother being eligible for this adjustment.
Here is the summary of above –
(b) If Assessed in last three years
If any individual was subjected to tax assessment for any one of the three years immediately preceding June 30, 2023, they are obligated to file their income tax returns. It’s possible that such a person may not have any income or may have an income lower than the tax-free threshold for the year ending June 30, 2023, but they are still required to submit their return of income. Therefore, this section is not related to tax-free income levels.
(c) If such person fulfills following conditions -
- Shareholder director or shareholder employee;
- Partner of a Firm;
- An employee holding a management or executive position in a business;
- A public servant
Above mentioned person is required to file his income tax returns irrespective of having taxable income.
(d) Required to show Proof of Submission of Return (PSR)
According to Section 264 of the Income Tax Act 2023, individuals engaged in 43 specific services are obligated to submit their income tax returns, regardless of whether they have any income.
Among these 43 services, one example is the use of credit cards. For instance, let’s consider the case of Md. Sujon Hasan, a student pursuing an MBA at Dhaka University. Although he has not yet begun his career, he is providing tuition to cover his educational expenses and uses a credit card of Brac Bank. Is he required to file his income tax return? Yes, he is. As per section 264(3)(3)(8), he must file his return even if his income falls below the tax-free threshold.
To know the details on Section 264 and PSR, please click on the below link:
Services for which Proof of submission of return(PSR) is required under Income Tax Act (ITA) 2023
Conclusion - File Income Tax Return
As mentioned above, those are the requirements to file income tax return in Bangladesh for the assessment year 2023-2024. You can let us know your query in the comment section if you have any questions or have any confusion whether you are required to file income tax return.
File Income Tax Return - Source/ Reference:
- Section 166 – Submission of Return;
- Section 264 – Obligation to file proof of Submission of Return (PSR)
- National Board of Revenue (NBR)
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