​Income Tax: NBR provides all taxpayers what they need to know

As the deadline for submission of income tax returns approaches, the National Board of Revenue (NBR) has come out with details in the public domain.

Senior Correspondentbdnews24.com
Published : 19 Sept 2016, 06:59 AM
Updated : 19 Sept 2016, 11:46 AM

November 30 is the last day when the income-tax returns for the 2016-17 financial year will have to be filed. The day will be observed as 'Tax Day'.

The NBR has made it clear that the deadline will not be extended this year, unlike in the past.

It has also laid down clearly the guidelines for those for whom it is mandatory to file income tax returns.

* Those whose annual income is above the exemption limit will have to file income tax returns

* Anyone who earns more than Tk 16,000 a month will have to acquire Tax Identification Number (TIN) and file income tax returns

* Anyone whose income in the last three years falls within the tax bracket will have to file the returns for those three years now

* Anyone with a bank account and a trade license for doing business or engage in a profession will have to file income-tax returns

* All individuals or organisations bidding for tenders of government, semi-government or autonomous bodies will have to file income tax returns

* All NGOs listed with the NGO Affairs Bureau will have to file returns on their annual income and expenditure

* All doctors, dentists, engineers, surveyors, lawyers, chartered and cost accountants, tax lawyers and those engaged in similar professions will have to file income tax returns

* All members of chambers of commerce or other trade associations have to file income tax returns

* Anyone owning a car or if he/she is member of an elite club covered by CPI regulation in a city, divisional or district town will have to file income tax returns

* All those who have contested parliament, city corporation or municipality elections will have to file income tax returns

The NBR has said that those failing to file tax returns by Nov 30, will have to pay monthly interests at the rate of 2 percent alongside paying the tax at source and income tax.

# Individuals with an annual income of over Tk 250,000 have to pay taxes.

# For female taxpayers and senior citizens aged over 65 years, the threshold is Tk 300,000.

# The ceiling for people with disabilities is Tk 375,000 and for freedom fighters Tk 425,000.

# For gazetted freedom fighters, the threshold is Tk 415,000 and for parents and legal guardians of intellectually disabled children it is Tk 440,000.

# Individuals with an annual income exceeding the tax-free income limit will have to file returns at different rates. The rate is 10 percent for the first Tk 400,000 above the limit and 15 percent for Tk 500,000. Returns must be filed at 20 percent for Tk 600,000 above the limit and at 25 percent for Tk 3 million exceeding the tax-free income limit.

# If someone’s total income is more than Tk 475 million he/she will have to pay tax at 30 percent for the exceeding money.

# Minimum payable tax for residents of Dhaka and Chittagong City Corporations is Tk 5000. For other city corporations it is Tk 4000 and Tk 3000 for the remaining areas.

The FY 2016-17 budget has set a revenue collection target of Tk 2.43 trillion.

Out of it, the government estimates that Tk 2.03 trillion will come in taxes through the NBR while Tk 719.40 billion will come from income tax.

The FY 2015-16 budget had set a revenue collection target of Tk 1.7637 trillion. It was reduced to Tk 1.5 trillion in the correction later. Tk 155.19 were collected end of the year, according to the statistics of NBR.