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Easy way of Income Tax Returns Filing

A to Z Guideline for Personal Income Tax Return Filing for the Assessment Year 2024-2025.

General Requirements for Income Tax Return (ITR) Submission:

      • Personal Information: Name, address, and National ID Number (NID), Tax Identification Number (TIN) and Date of birth.

      • Income Details: all sources of income (salary, business income, freelance work, interest income, etc.).

      • Deductions and Credits: Documents supporting deductions (like mortgage interest, loan interest, medical expenses)

      • Bank Details: Bank account information.

      • Tax Payments: Records of any estimated tax payments made during the year.

      • Purchase or Sale Document of the FY: If the taxpayer buys or sells any assets in the said financial year.

      • Previous Year’s Tax Return: Reference for consistency and accuracy.

In Bangladesh, the individual income tax return is typically submitted using the Income Tax Return Form provided by the National Board of Revenue (NBR). The specific form can vary based on your income type and sources. Here’s a general overview of the process and the types of forms you might encounter:

Types of Forms: Accordingly Income Tax Act. 2023, Two forms are available for submitting personal Income Tax Returns:

      1. Form IT- GHA-2023 (One Page Return Form): Applicable for individual persons having taxable income below Tk. 5,00,000 and total assets below Tk. 40,00,000.
      2. Form IT- 11 GA-2023 :  Applicable for : 
      • All Public Servants.
      • If the amount of Total Asset at home and abroad exceeds Taka 40,00,000
      • The amount of Total Asset does not exceed Tk. 40,00,000 but owns a Motor Car in any time or Invested in any House Popery or Apartment within the City Corporation area or Owns Assets outside Bangladesh or being a Shareholder Director of a Company.
      • Every Non-Bangladeshi and Non-Resident Bangladesh Natural Person shall submit the statement only in respect of Assets Located in Bangladesh.

Schedule 1: 

      1. This part is applicable for employees receiving salary under the government pay scale.
      2. This part is applicable for employees other than employees receiving salary under the government pay scale.

Schedule 2:

Particulars of Income from Rent: If the taxpayer has any rental income then details of rental income should be mentioned in this section.

Schedule 3:

Particulars of Income from Agriculture: If the taxpayer has any agricultural income then detailed income and expenditure account of the said agricultural income should be mentioned in this section.

Schedule-4:

Particulars of Income from Business: If the taxpayer is a businessman, the name of the business establishment, the type of business, the amount of annual sales and the details of the expenses against the sales or income should be entered in this section.

Schedule-5:

Particulars of Investment Tax Credit: The details of the investments made by the taxpayer as per National Board of Revenue guidelines for the purpose of income tax rebate should be mentioned here.

Key Sections of the Form:

      1. Personal Information: Name, address, TIN (Tax Identification Number), and date of birth.
      2. Income Details: Salary income, business income, property income, capital gains, and other sources.
      3. Deductions:Any eligible deductions (e.g., investments in specified savings instruments, donations).
      4. Tax Computation: Calculation of taxable income and tax liability based on applicable slabs.
      5. Verification: Signature and date for verification of the information provided.

Submission Process:

      1. Filling Out the Form: Ensure all sections are completed accurately.
      2. Supporting Documents: Attach necessary documents, such as proof of income, investment details, and any other relevant information.
      3. Filing: Submit the completed form online through the NBR’s e-filing portal or in person at the local tax office.
      4. Deadline: Be aware of the filing deadlines to avoid penalties.

In Bangladesh, after submitting your income tax return, you will receive a proof of submission which is important for record-keeping and for any future reference with the tax authorities. Here are the common forms of proof you might receive:

Acknowledgment Receipt:

      1. After you submit your income tax return, you should receive an acknowledgment receipt from the tax office. This document confirms that your return has been submitted.
      2. If you file online, this acknowledgment is usually generated automatically and can be downloaded from the NBR e-filing portal.

Importance of Proof of Submission:

      • Record Keeping: It is essential to keep these documents for future reference.
      • Tax Audits: In case of any audit or inquiry by the tax authorities, you will need to provide proof of your submission.
      • Loan Applications: Some financial institutions may require proof of tax return submission as part of their loan application process.

In Bangladesh, the personal income tax rates are structured in a progressive manner, meaning that different portions of income are taxed at different rates. The rates can change annually, so it’s essential to check the latest finance act for the most current figures. Here’s a general overview According to the Finance Act, 2024, if any person earned more than Tk 350,000 during the income year 2023-2024, then he must file his income return along with the source(s) of income:

Personal Income Tax Rates (for Individuals):

Up to Income BDT 3,50,000: 0%
5% on the next Income BDT.100,000
10% on the next Income BDT.400,000
15% on the next Income BDT.500,000
20% on the next Income BDT.500,000
Tax will be applicable @ 25% on the rest income.

FOR FEMALE TAXPAYERS AND TAXPAYERS AGED 65 YEARS OR ABOVE:

Up to Income BDT 4,00,000: 0%
5% on the next Income BDT.100,000
10% on the next Income BDT.400,000
15% on the next Income BDT.500,000
20% on the next Income BDT.500,000
Tax will be applicable @ 25% on the rest income.

FOR TAXPAYERS OF THIRD GENDER OR TAXPAYERS WITH DISABILITY:

Up to BDT 4,75,000: 0%
5% on the next Income BDT.100,000
10% on the next Income BDT.400,000
15% on the next Income BDT.500,000
20% on the next Income BDT.500,000
Tax will be applicable @ 25% on the rest income.

FOR GAZETTED WAR CASUALTY FREEDOM FIGHTER TAXPAYERS:

Up to BDT 500,000: 0%
5% on the next Income BDT.100,000
10% on the next Income BDT.400,000
15% on the next Income BDT.500,000
20% on the next Income BDT.500,000
Tax will be applicable @ 25% on the rest income.

NECESSARY DOCUMENTS FOR PERSONAL INCOME TAX RETURN FILING (CHECKLIST) :
      1. Salary Certificate
      2. TIN Certificate
      3. National ID
      4. Bank Statement (1st July to 30 June)
      5. Investment: Documents related to investments that provide tax deductions, such as savings certificates, provident fund, and life insurance policies.
      6. Land Purchase Deed (if any)
      7. Car AIT (if any)
      8. TDS Challan
      9. Bank Loan Sanction Letter (if any)
      10. Copy of your previous tax return copy, if applicable.
      11. Expense Proofs: Bills and receipts for deductible expenses, including medical bills and educational expenses.
      12. Copies of your previous tax returns, if applicable.

By following these steps and ensuring you have all the necessary documents, you can efficiently submit your personal income tax return in Bangladesh and remain compliant with the tax laws.

Feel Free to contact us for your personal Income Tax Return Preparation and Submission.
Mobile: +8801713 560065
Email. mohsin@vataxbd.com

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