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Frequently Asked Questions for Income Tax in Bangladesh

Publcihed by Admin 9 months ago

1. What is income tax in Bangladesh?


Income tax is a direct tax levied by the government on the income earned by individuals, companies, and other entities in Bangladesh. It is governed by the Income Tax Ordinance, of 1984.


2. Who is liable to pay income tax in Bangladesh?  


Any individual, company, or organization that earns income in Bangladesh or has a taxable presence in the country is liable to pay income tax. The tax liability depends on the income earned and the applicable tax rates.

 

3. What is the income tax year in Bangladesh?


The income tax year in Bangladesh runs from July 1st to June 30th. It is commonly referred to as the "financial year."


4. What are the different types of income tax returns in Bangladesh?


In Bangladesh, there are various types of income tax returns, including:

Individual Income Tax Return (IT-10): For individual taxpayers.

Company Income Tax Return (IT-11GA): For registered companies.

Partnership Firm Income Tax Return (IT-11GHA): For partnership firms.

Individual Asset and Liability Statement (IT-10BB): For individuals with specified assets and liabilities.

Statement of Deduction of Income Tax at Source (IT-16): For withholding tax deductions by employers.


5. How is income tax calculated in Bangladesh?


The income tax calculation in Bangladesh follows a progressive tax rate structure. Different tax

slabs apply to different income levels, with higher rates for higher income brackets. The applicable

tax rates and slabs may change from year to year based on

government policies.


6. What are the important dates for filing income tax returns in Bangladesh?


The income tax return filing deadline for individual taxpayers is usually November 30th following

the end of the tax year. For companies and other entities, the deadline is January 15. However, it's important to check the specific deadlines announced by the National Board of Revenue (NBR) for each tax year.

 

7. What documents are required for filing an income tax return?


 The documents required for filing an income tax return in Bangladesh may include:

National Identification Number (NID)

Tax Identification Number (TIN)

Salary statements, wage books, or income certificates

Bank statements and interest certificates

Business income and expense records (for self-employed individuals and businesses)

Investment and asset details

Deduction and exemption documents (such as life insurance premiums, charitable donations, etc.)


8. What are the penalties for late filing or non-filing of income tax returns?


If an individual or entity fails to file an income tax return within the specified deadline, they may be subject to penalties and interest charges. The penalties can vary based on the length of the delay and the amount of tax owed.


9. How can I pay income tax in Bangladesh?


Income tax can be paid through various methods, including online payment systems, designated bank branches, and mobile financial services. The National Board of Revenue (NBR) provides detailed instructions on different payment methods.


10. Where can I get help or more information regarding income tax in Bangladesh?


For detailed information and assistance regarding income tax in Bangladesh, you can contact the National Board of Revenue (NBR) or visit their website. Additionally, seeking advice from professional tax consultants or chartered accountants can also be beneficial.