The National Board of Revenue (NBR) has introduced a major change in the income tax return filing process.
From now on, taxpayers submitting their returns ahead of the deadline will receive a special tax discount, while those filing late will incur additional fees or penalties. NBR's goal is to incentivize taxpayers to submit their returns on time.
Under the new rules, filing returns during the first quarter of the fiscal year—specifically between July and September—entitles taxpayers to a rebate of 5% on their payable tax, or up to a maximum of Tk25,000, whichever is lower.
For instance, if someone has an income tax liability of Tk1 lakh, they will only need to pay Tk95,000.
Similarly, if someone owes Tk50,000 in taxes, they will get a Tk2,500 rebate, bringing their total payment to Tk47,500.
Currently, there are over 12.5 million Taxpayer Identification Number (TIN) holders in the country.
Last fiscal year, more than 4.5 million taxpayers submitted their income tax returns online.
Under the NBR’s new system, income tax returns can now be submitted year-round. However, whether a taxpayer receives a discount or incurs an extra fee depends on when the return is filed:
- July–September: A tax rebate of 5% on payable tax, up to a maximum of Tk25,000.
- October–December: Standard filing window with no discount or penalty. Taxpayers pay the exact calculated tax.
- January–March: An additional charge of 2% on payable tax or a minimum of Tk3,000, whichever is higher. However, the maximum penalty is capped at Tk3,000.
- April–June: An additional charge of 5% on payable tax or a minimum of Tk5,000, whichever is higher. The penalty for this period is capped at Tk5,000.
For example, if an individual’s income tax is Tk1,00,000 and they file between January and March, they will have to pay Tk102,000. If they submit between April and June, the payable amount increases to Tk105,000.
How to file returns online
Taxpayers can file their income tax returns online from the comfort of their homes.
To do so, they must log into the NBR e-Return portal and enter details regarding annual income, investments, expenses, assets, and liabilities step-by-step.
After verifying all information, the return can be submitted.
Once submitted, taxpayers can pay their due taxes using bank transfers, debit cards, credit cards, or Mobile Financial Services (MFS) such as bKash, Rocket, and Nagad.
Upon successful submission, taxpayers can instantly download their Acknowledgement Receipt and Income Tax Certificate.
The NBR expects that this dual approach—offering tax rebates for early submissions and levying penalties for delays—will encourage taxpayers to file on time, fostering a culture of voluntary tax compliance and boosting overall revenue collection.
