Tax Note
[Link] is income tax return?
An Income Tax Return is a formal statement that a person or company files every year
showing:
How much income they earned
From which sources the income came
What expenses and allowances are claimed
How much tax is payable or refundable
Other information required by law (assets, liabilities, tax deducted at source, etc.)
[Link] filed the return?
A return must be filed by:
Person with taxable income above the threshold
Anyone with a TIN (unless exempt)
Company, firm, NGO, cooperative society
Persons with a certain asset value, holding taxable assets, owning cars, having credit
cards, etc.
Purpose of Income Tax Return
To declare income legally
To pay correct tax
To remain compliant with NBR
Required for bank loans, visas, business license renewal, tender participation, e
[Link] is required to file Income Tax Return based on
Taxable Income?
A person must file a tax return if their taxable income exceeds the basic exemption limit in
an income year.
Exemption limits for Individuals (FY 2023-24 / Income year 2023-24):
Male taxpayer: ৳ 3,50,000
Female/Retired/Disabled freedom fighter: higher limits apply
Who must file a return mandatorily (even if income is
below taxable limit)?
Under the Income Tax Act, 2023, the following persons must file a return mandatorily
regardless of income:
(a) Anyone with a valid TIN
If you have a Taxpayer Identification Number (TIN), filing a return is compulsory unless the
law specifically exempts you.
(b) Anyone who owns a car
Car or jeep (private motor vehicle)
(c) Anyone who has a credit card (any bank)
(d) Anyone owning property in city corporation areas
If they own building/flat/land in city corporation, cantonment, or municipal areas.
(e) Member of a professional body
Doctors, engineers, lawyers, accountants, architects, etc.
(f) Anyone who participates in government tenders
(g) Anyone who travels abroad (except for Hajj or Umrah)
(h) Company directors and shareholders
(i) Anyone with a bank loan above a certain amount
If a person has taken a loan of 5 lakh or more from a bank or financial institution.
(j) Anyone with a utility bill above threshold
Electricity bill ৳2,00,000 or more per year (combined)
(k) Anyone with assets above a certain level
Consequences of Not Filing a Tax Return
(Bangladesh Income Tax Act, 2023)
1. Penalty for Failure to File (Section 164)
You may have to pay a penalty, usually calculated as:
৳5,000 to ৳20,000 (depending on the taxpayer category)
Additional penalty for each day of delay in some cases.
2. Interest on Unpaid Tax (Section 163)
If any tax was due but unpaid:
Interest is charged from the due date until the return is filed.
3. You May Receive a “Show-Cause Notice” from NBR
NBR can issue a notice asking why you did not file.
Failure to respond can lead to:
Penalty
Forced assessment
## 4. Best-Judgment Assessment by NBR
(Section 174)
If you don’t file a return, the tax authority can:
Estimate your income using their own judgment
Impose tax based on that estimate
Add penalty and interest
This amount may be higher than actual income because it is a punitive assessment.
## 6. Restrictions in Daily Financial and
Personal Activities
Without a filed return you cannot:
Open certain bank accounts
Obtain trade license renewal
Buy or register a car or flat
Travel abroad (for some categories)
Become or continue as a company director
5. ✅ Methods of Tax Assessment
(Bangladesh Income Tax Act, 2023)
Tax assessment means determining a taxpayer’s income and tax liability. The major methods are:
1. Self-Assessment (Section 82)
The taxpayer calculates income and tax by themselves.
File return voluntarily.
NBR accepts the return without detailed scrutiny, unless selected for audit.
Most common method.
2. Universal Self-Assessment (USA)
A simplified form of self-assessment designed to encourage taxpayers.
If the return meets certain conditions, it is automatically accepted.
No questioning unless selected for audit on risk basis.
3. Spot Assessment
Quick assessment done on the spot, usually for new taxpayers or small businesses.
Tax officer assesses income instantly based on available information.
4. Best-Judgment Assessment (Section 174)
Applied when a taxpayer fails to file return, files incorrect/incomplete return, or ignores
NBR’s notice.
Tax authority estimates income based on available evidence.
. [Link]-Assessment / Amended Assessment (Section 179)
If NBR finds new information, concealed income, or mistakes, it can reopen and
reassess the taxpayer.
Additional tax, penalty, and interest may apply.
6. Settlement of Disputes / Agreed Assessment
Taxpayer and tax authority negotiate and settle disputed tax amounts.
Done through appeal or alternative dispute resolution (ADR).
Types of Tax Returns (Bangladesh Income
Tax Act, 2023)
A tax return is a statement declaring income, expenses, tax liability, and other particulars. The
main types are:
1. Individual Income Tax Return
Filed by:
Salaried individuals
Professionals
Business individuals
Any person with taxable income or mandatory filing requirement
2. Corporate Income Tax Return
Filed by:
Companies (private, public, multinational)
Declares business income, financial statements, deductions, etc.
3. Return of Withholding Tax (TDS Return)
Filed by:
Persons responsible for deducting tax at source
Includes employer’s salary TDS, contractor payments, bank interest TDS, etc.
4. Return for Firms & Partnership Entities
Filed by partnership firms (though partners also file individual returns).
5. Revised Return
If a taxpayer finds mistakes, they may file a revised return within the allowed time.
6. Return for Loss Carry-Forward
Businesses showing losses must file a return on time to carry forward losses to future
years.
7. Return in Response to Notice (Section 146)
Filed when NBR issues a legal notice requiring a taxpayer to submit a return.
⭐ Short Answer (Exam Format)
Types of tax returns include: individual return, corporate return, partnership/firms return,
withholding tax (TDS) return, revised return, and return filed in response to a statutory notice.