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বাংলা
Dhaka Tribune

So you want to file your taxes

A step-by-step guide to simplify the nitty-gritty of filing taxes

Update : 06 May 2024, 08:55 AM

Tax filing and return are necessary for the tax-payers under the Income Tax Act, but many fear the process of doing it. Filing a tax return manually means multiple visits to the NBR office and going from one desk to another and wasting the whole day for a 20-minute job. The complexity of tax return and submission in-person can play a significant role in tax evasion. 

Here comes e-Return to the rescue! e-Return is the online process of filing one’s taxes using online software approved by the relevant tax authority of the respective country. In Bangladesh the website of NBR provides a multitude of e services like e-TIN, e-tax service, e-filing etc, which have provided some convenience of taxation. Individual assessees can file the tax return while comfortably sitting at home on the computer or merely through mobile phone. All one needs is required documents and personal data like NID, TIN, address, banking statements, previous year’s return, investment details, property details, tax free income certificates etc.   

Who are the tax-payers? 

As per NBR, men having annual income more than Tk3 lakhs, and women and senior citizens over the age of 65 having annual income more than Tk4 lakhs, are supposed to file tax returns from July 1 to November 30. For war-wounded gazette freedom fighters the tax-free income threshold is Tk5 lakhs.

Having a 12-digit TIN number requires one to submit an annual tax return for every salaried citizen and even below the income threshold there is provision for filing zero return. The documents to keep on hand for preparing a tax return file are e-TIN, NID copy, address details, previous year’s return, salary certificates, bank statements, investment details, property details, tax free income certificate.

With a few clicks, tax file returns can be made at home without any hassle of going to the NBR office and lawyers

The step-by-step guide to prepare tax file return online is as follows:

  1. Login/register on e-Return at NBR website: If the tax-payer already prepared his/her tax return online, he/she just has to login to the website inputting the password, TIN, and captcha, and click on the return submission option at the left of the dashboard. But if it’s anyone’s first time they have to register through TIN number and biometrically registered phone number and captcha. The OTP being sent needs to be input before clicking on verify.

  2. Tax assessment information: In this section information regarding income year, assessment year, return scheme mode, heads of income, and other sources of income are to be provided and the save and continue button is pressed to proceed further. If the earnings are tax-exempt, provide the relevant amount and resident status. 

  3. Additional information: The location of the working place to be given, ie the city corporation under which the office falls is to be provided. Along with it, the options if one is a parent of a special child or disabled person or war wounded gazette freedom fighter is also available. If one is eligible for investment rebates and a shareholder director of a company, then yes/no option is to be selected.

  4. IT10B requirement: If the total assets are valued at Tk40 lakhs or more, then one is required to fill out the IT10B form. If one’s assets fall below this threshold then no need to complete this form and assets and liabilities sections to be filled as per rules.

  5. Income details: This page requires to declare revenue streams, such as salaries, income from house rent, interest on securities, capital gains, businesses and agricultural income and any other additional sources one may have. Once done, click “save and continue” to move on.

  6. Investment rebate: This section looks for investment, if any, like savings certificate, deposit premium service (DPS), general provident fund, group insurance premium etc, and calculates the allowable investment for rebate. For this bank account details are to be provided and the save and continue button to be clicked.

  7. Expenditure: Total expenses incurred compared to the total income will be reviewed in this section. Multiple categories of expenses like food, education, accommodation, transport etc. will be covered as required.

  8. Tax and payment: Advance tax and any source tax (TDS) if paid will be adjusted automatically in this section. If income incurs no tax, the payable amount is zero, resulting in a “Zero Return.”

  9. Return view: The return form prepared so far through the information given can be reviewed through this option. If everything seems accurate, click on the yes button under the verification and signature section.

  10. Acknowledgement receipt: Upon successful submission, a message confirms, “Congratulations! Your return submission was successful. From here, we can download the reference ID and acknowledgment receipt for our records.

 

The income tax return process is now complete. One can now file a return electronically or print a copy of the form and mail it straight to the income tax department.

Since the income tax act has been modified recently, simplification as well as complexities have been added to it. To understand those details and prepare tax file returns is not an easy job for a tax paying citizen. For that reason, e-Return can be a safer option. With a few clicks, tax file returns can be made at home without any hassle of going to the NBR office and lawyers. Through the e-Return, a burden will be off the shoulder and compliance with tax rules and regulations can also be ensured.

Syeda Nishat Maliha is in the Faculty of Business Studies, Dept of Accounting and Information Systems, Bangladesh University of Professionals.

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