Individual Income Tax Return in Bangladesh
What is an Individual Income Tax Return?
An individual income tax return is the submission of annual income information in the prescribed form to the Deputy Commissioner of Taxes (DCT) in the individual taxpayer’s designated circle of the National Board of Revenue (NBR)
Who is Required to File an Income Tax Return?
Certain individuals must obtain a Tax Identification Number (TIN) and file their tax returns under the following conditions
- Income Exceeding Exempt Limit If total income for the year surpasses the non-chargeable maximum limit set by the Income Tax Ordinance, 1984
- Previous Assessments If assessed for tax in any of the last three years
- Location Criteria Individuals residing within specific city corporation limits, a paurashava, divisional headquarters, or district headquarters, and meeting any of these conditions
- Own a motor vehicle
- Are members of a registered club under the VAT Act, 1991
- Government employees with a basic salary exceeding Tk 16,000 at any point during the year
- Operate a business or profession with a trade license and a bank account
- Registered with a recognized professional body (e.g., chartered accountants, doctors, engineers)
- Partners in a partnership business or shareholders/directors of a company
- Candidates for local office or Members of Parliament
- Participants in tenders issued by government or semi-government bodies
- Registered NGOs with the NGO Affairs Bureau
Deadline for Submission
Individuals must file their tax returns by November 30, accompanied by all relevant supporting documents There are two filing procedures: Universal Self-Assessment and Normal Procedure To use the Universal Self-Assessment, individuals need a 12-digit TIN
Filing Forms
IT-11 GA General return form, detailing assets and liabilities (requires Form 10BB and supporting documents)
IT-11 UMA For salaried individuals with salary-only income, along with a salary certificate, TIN, and TDS documents
IT-11 CHA For business or professional individuals with income not exceeding Tk 300,000
Schedule 24D To claim investment rebates, accompanied by relevant documents
Penalties for Non-Compliance
Individuals may face penalties for failing to file returns on time, including
A fine of 10% of the last assessed amount (minimum Tk 1,000)
Additional fines of Tk 50 for each day of delay
A penalty of Tk 5,000 for those not previously assessed
An interest charge of 2% on the current assessed income if the return is not filed by November 30, even with a time extension request
NOTES
Filing an individual income tax return is a legal obligation in Bangladesh Every individual whose income exceeds the taxable limit or who meets specific criteria must file by November 30 to avoid penalties and contribute to national development