Individuals required to submit income tax return
The time for filling income tax returns falls in October-November. During this period, taxpayers holding Taxpayer Identification Numbers (TIN) remain occupied with collecting all necessary documents, completing forms and submitting returns.
In Bangladesh, the National Board of Revenue (NBR) determines which TIN holders are required to file returns. There are approximately 11.5 million (1 crore 15 lakh) TIN holders in the country. Among them, on average, around 4 million (40 lakh) submit returns to the NBR each year, disclosing their annual income and expenditure.
Who must file returns
Those required to file returns can be categorised into two groups:
1. Individuals with taxable income
2. Individuals who, irrespective of their income, must compulsorily file returns.
Mandatory returns based on income
Six categories of taxpayers are required to file returns based on taxable income. These are –
Any individual taxpayer with an annual income exceeding Tk 350,000.
Female taxpayers and taxpayers aged 65 years or above with an annual income exceeding Tk 400,000.
Third gender taxpayers and physically disabled individual taxpayers with an annual income exceeding Tk 475,000.
Gazette-listed wounded freedom fighters with an annual income exceeding Tk 500,000.
Parents or legal guardians of disabled persons are entitled to an additional tax-free income limit of Tk 50,000 for each child or dependant. However, if both parents are taxpayers, only one may avail of this benefit.
This obligation does not apply to non-resident taxpayers (excluding non-resident Bangladeshis).
Mandatory returns based on profession and activities
In addition, irrespective of income, the NBR has made the filing of returns compulsory for certain categories of taxpayers based on profession and activities. According to NBR regulations, 45 categories of TIN holders fall under this obligation. These include –
1. Taxpayers whose total income exceeds the tax-free limit.
2. Taxpayers who, in any of the previous three years, were assessed for tax or had taxable income.
3. Companies, company shareholder directors or shareholder employees.
4. Firms, partners of firms or associations of persons.
5. Salaried employees holding executive or managerial positions in any business.
6. Public employees (government officials and staff).
7. Non-residents with a permanent establishment in Bangladesh.
8. Taxpayers with tax-exempt income or income subject to reduced tax rates.
9. Any person required to be registered as a taxpayer under Section 261.
10. Individuals receiving loans exceeding Tk 2 million (20 lakh) without taxable income.
11. Applicants seeking to obtain or renew an Import Registration Certificate (IRC) or Export Registration Certificate (ERC).
12. Applicants renewing trade licences within city corporations or municipalities.
13. Applicants renewing licences as enlisted surveyors in general insurance.
14. Individuals registering the sale, lease, transfer, deed of agreement or power of attorney of land, buildings, or apartments within City Corporation, municipality, or cantonment board areas.
15. Physicians, dental surgeons, lawyers, chartered accountants, cost and management accountants, chartered secretaries, lawyers, tax lawyers, actuaries, engineers, architects, surveyors, or similar professionals renewing membership of any recognised professional body.
16. To obtain or renew a licence as a Nikah Registrar under the Muslim Marriages and Divorces (Registration) Act, as a Hindu Marriage Registrar under the Hindu Marriage Registration Act, or as a Registrar under the Special Marriage Act.
17. To obtain or maintain membership of a commercial organisation.
18. To renew a licence as a vendor of stamps, court fees and cartridge paper, or as a deed writer.
19. To obtain or renew a drug licence, fire licence, environmental clearance, BSTI licence, bonded warehouse licence, customs agent licence, freight forwarding licence, and buying house registration.
20. To obtain or maintain commercial and industrial gas connections in any area and to obtain residential gas connections in city corporation areas.
21. To obtain electricity connections in City Corporation or cantonment board areas.
22. To obtain or maintain a survey certificate for any type of hired water vessel including launches, steamers, cargo vessels, coasters and dumb barges.
23. To obtain or renew a permit for brick production from the Department of Environment or the Office of the Deputy Commissioner.
24. For admission of a child or dependant to an English medium school located in a city corporation, district headquarters or municipality.
25. To obtain or maintain a company agency or distributorship.
26. To obtain or maintain a firearms licence.
27. For opening a letter of credit for import purposes.
28. For opening or maintaining term deposits exceeding Tk 1 million (10 lakhs).
29. For purchasing savings certificates exceeding Tk 1 million (10 lakhs).
30. For participation in municipal, upazila, district council, city corporation or national parliamentary elections.
31. For receiving salary and allowances in positions involving management, administration, or supervision of production activities.
32. For taxpayers other than individual persons, in cases where commissions, fees, or any other income are received through mobile financial services, mobile banking, electronic fund transfers, or mobile phone account recharges.
33. For receiving any payment from a company by a resident in respect of advisory or consultancy services, catering services, event management services, manpower supply, or provision of security services.
34. For registering or renewing an agency certificate of an insurance company.
35. At the time of registration, transfer of ownership or fitness renewal of motor vehicles other than two-wheelers or three-wheelers.
36. For the release of foreign donations in favour of NGOs registered with the NGO Affairs Bureau or microfinance institutions licensed by the Microcredit Regulatory Authority.
37. For renewing a licence from the licensing authority in respect of e-commerce businesses conducted through digital platforms.
38. For obtaining or renewing membership of any club registered under the Companies Act or the Societies Registration Act.
39. At the time of submission of tender documents by a resident for the purpose of supplying goods, executing contracts or providing services.
40. At the time of submission of a bill of entry for the purpose of importing or exporting goods.
41. At the time of submission of building plans for approval to the Rajdhani Unnayan Kartripakkha (RAJUK), Chattogram Development Authority (CDA), Khulna Development Authority (KDA), Rajshahi Development Authority (RDA), Gazipur Development Authority, Cox’s Bazar Development Authority, or any similar authority established by the government, or to other relevant authorities of city corporations or municipalities.
42. By the house owner at the time of renting or leasing a house in a city corporation area to a specified individual.
43. By the supplier or service provider at the time of providing goods or services to a specified individual.
44. At the time of obtaining or renewing licences for hotels, restaurants, motels, community centres, convention halls, hospitals, clinics, or diagnostic centres.
45. By the service recipient at the time of renting or availing services from community centres, convention halls, or similar establishments located in city corporation areas for the purpose of organising social events, corporate programmes, workshops, seminars, symposium, training or similar events.