The first thing a person filing tax returns needs to know is if his or her margin of income falls within a certain tax bracket
At the end of every fiscal year, one has to pay his or her income tax and a number of taxpayers in Bangladesh are doing the job pretty successfully.
But there are are also many grappling with filing their tax returns owing to having little or no idea about the process.
Things appear to be rather tough, especially for those paying taxes for the first time.
People under income tax coverage
The first thing a person filing tax returns needs to knowis if his or her margin of income falls within a certain tax bracket.
According to the current income tax act, there are seven categories of incomes that are taxable in Bangladesh.
Some of the taxable incomes are: salary from a job, money from business, house rent, money from selling a property, different kinds of interest against bank deposits and profits from agriculture, etc.
Income tax ceilings
If you are a man and your annual income is not more thanTk250,000, you do not have to pay income tax. But if the income exceeds that limit, you enter the tax net.
In the case of a woman, taxes are mandatory if her income is more than Tk300, 000 a year.
Except for the entry level amount, a man s subject to a 10% tax against the first Tk400, 000 and the same tax rate is applicable for female taxpayers as well.
Tax rates rise in proportion to the income generated by taxpayers.
How to pay taxes
First of all, a taxpayer should go through the website of the National Board of Revenue, to gather information about the overall process and necessary details in this regard.
After that, the taxpayer needs to obtain a Taxpayer’s Identification Number (TIN) by opening an account on the NBR website.
Registering for the TIN, the taxpayer will need to put in his or her national identification number, name, and other necessary information. A TIN number works as an income tax-related identity card.
Income tax zone
The very first letter of the name of a taxpayer, his or her office or business address will determine which tax zone that person will be under.
Now calculate your annual income and check if it is taxable. If the income falls within a specific tax bracket, you have to figure out how much tax you will be paying.
The tax can be paid through a bank or you can do so by a pay order to a deputy tax commissioner working under any tax zone.
What is an income tax return?
An income tax return is something that has to be submitted by individuals by November 30 every year. And by that time, one has to update the information about one’s income, property, and income tax through a form. The main reason for doing so is that the information submitted for a fiscal year can differ from that of one year ago.
After availing a TIN, a taxpayer has to update the government about his or her present status. There are also punitive measures for dodging taxes.Tax waiver
Some groups of taxpayers enjoy tax holidays. For instance, if you own savings certificates, invest in the stock market, and have a life insurance, your income tax will be waived at a certain amount.
To this end, income tax lawyers suggest having savings tools since these are most risk-free and can be found at the National Savings Bureau, post offices, and banks.
Where to complain
If you have an allegation regarding the services or other issues involving taxation, you can file a written appeal detailing the problems to the commissioner of taxes.
Upon receiving the complaint, the commissioner will organise a hearing on it, leading to its solution.
If not, the taxpayer can approach a tribunal with his or her problems. In case of a further failure to substantiate the complaint, the person still has the option to move to the High Court as a last resort defense.
And last, a taxpayer should know that whatever service he or she receives is not for free. A taxpayer is actually getting the services by paying money.