A guide to tax return submission

The people should play a responsible role in paying taxes. The government raises revenue through taxation and other means for meeting the national expenditure. There are two types of taxes-direct taxes and indirect taxes. Of the direct taxes, income tax is the main source of the government's revenue income. Income tax is imposed on the basis of ability to pay. The basic principle of charging income tax is: 'The more a taxpayer earns the more he should pay'.
INDIVIDUALS MUST SUBMIT INCOME TAX RETURN: It is mandatory for an individual holding a Taxpayer's Identification Number (TIN) to submit the income tax return every year. If the total income of any individual (other than female, senior male citizens aged 65 years, retarded, and war wounded freedom fighters) exceeds Tk 220,000, they are eligible to submit income tax return. Following persons are also eligible for submitting tax return:
- Any person who owns motor car/membership of a club registered under VAT Law.
- Any person running a business or profession having a trade licence and a bank account.
- Any professional registered as a doctor, lawyer, income-tax practitioner, chartered accountant, Cost and Management Accountant, engineer, architect or surveyor etc.
SOURCES OF INCOME: First to identify the total income and charge tax thereon, sources of income can be classified as follows:
1. Income from salaries
2. Interest on securities
3. Income from house property
4. Income from agriculture
5. Income from business or profession
6. Capital gains
7. Income from other sources.
TIME TO SUBMIT TAX RETURN: An individual taxpayer must submit their tax return on or before September 30 each year unless the government extends the date.
CONSEQUENCES OF NON-SUBMISSION OF RETURN: Imposition of penalty amounting to 10 per cent of tax on the last-assessed income and the amount will be minimum Tk. 1,000. In the event of continuation of the default there will be further penalty of Tk 50 every day for the delay.
CONSEQUENCES OF USING FAKE TIN: The authorities can impose a penalty not exceeding Tk 20,000 for use of a fake TIN. For continuous use of a fake TIN deliberately the penalty is 3 years' imprisonment or fine up to Tk 50,000 or both.
RATE OF INDIVIDUALS' INCOME TAX FOR 2014-2015: For individuals other than females, senior citizens aged 65 years and older, retarded and gazetted war-wounded freedom fighters, the income tax rates will be as follows:
Tax rebate for investment: The government has allowed a facility for individuals for motivating them to go for savings and investments. The allowable investment is

the actual investment or 30 per cent of the total income or Tk 15,000,000, whichever is lower. Fifteen per cent rebate is allowed on the investment.
ALLOWABLE INVESTMENT FOR TAX REBATE:
1. Life insurance premium up to 10 per cent of the face value
2. Contribution up to Tk 60,000 to deposit pension scheme (DPS), sponsored by any scheduled bank or a financial institution
3. Investment in approved debenture or debenture stock, stocks or shares
4. Any investment by an individual in Bangladesh Government Treasury Bond
5. Investment in purchase of one computer or one laptop by an individual assessee
6. Contribution to Provident Fund to which Provident Fund Act, 1925 applies. Self-contribution and employer's contribution to Recognized Provident Fund
7. Contribution to Supper Annuation Fund
8. Contribution to Benevolent Fund and Group Insurance premium
9. Contribution to Zakat Fund
10. Donation to charitable hospital and educational institution as approved by the National Board of Revenue, donation to any national level institution set up in memory of the Liberation War or in memory of the Father of the Nation.
ASSESSMENT PROCEDURES: When the Income Tax Return is submitted under a normal scheme, the assessment is made after giving an opportunity of hearing. The acknowledgement slip of return is considered as an assessment order in the case of returns submitted under universal self-assessment scheme. It may be subject to audit.
APPEAL AGAINST THE ORDER OF DCT: A taxpayer can file an appeal against the DCT's order to the commissioner (Appeals)/Additional or Joint Commissioner of Taxes (Appeals) and to the Taxes Appellate Tribunal against an appeal order.
ONLINE TAX CALCULATOR OF NBR: It is well-known that calculation of income tax is a complex matter for a non-professional man. The National Board of Revenue (NBR) has developed software for automated income tax calculation which is available on the NBR website.
SIMPLE TAX CALCULATION: A simple tax calculation for the salaried person is as below -
MINIMUM TAX: Any individual living in city corporation areas has to pay a minimum tax of Tk 3,000, individual living in district headquarters has to pay Tk 2,000,

and an individual living in any other area has to pay Tk 1,000.
SURCHARGE ON WEALTH: A surcharge will be imposed on the wealth at an increasing rate whenever the net wealth exceeds Tk 20 million (2 crore). The surcharge is applicable to the total tax payable amount. The rate of surcharge is as below:
Individual taxpayers have to fill up forms on income tax return. They may use this guideline to get a clear idea about this, though income tax rules are very

complicated. Taxpayers have to fill up the statement in the assets and liabilities form IT-10BBB correctly. He needs to add new assets and liabilities for the year to the previous year's balance.

press.media@bg.com.bd