Government extends tax filing deadline by 15 days

In response to delays caused by the protests and clashes in July and August, the government has extended the deadline for individual taxpayers to file their income tax returns by 15 days.

The new deadline for filing returns for the 2024-25 fiscal year is now set for Feb 15, according to the National Board of Revenue, or NBR.

A senior official from the NBR’s Income Tax Department confirmed that the proposal for an extension had been sent to the finance advisor for approval, which is expected as early as Thursday.

“We have prepared and sent it for approval,” the official told bdnews24.com.

“The government is supportive of extending the deadline.”

The government had previously extended the income tax filing deadline by a month in two phases, pushing the cutoff to Jan 31 from the original Dec 31, 2024 deadline.

Under a separate order, the deadline for corporate tax filings has been extended by one month, moving it from Jan 15 to Feb 15. However, officials said no further extensions for companies are being considered at this time. Under the Income Tax Act, the standard deadline for individual taxpayers to file returns is Nov 30.

The NBR has the authority to extend the tax filing deadline by up to a month with a single decision.

However, in times of crisis, such as during a pandemic, the government itself can issue an extension through a formal order. In such cases, the board cannot act independently and must secure government approval before making the change. This year, officials have repeatedly extended the deadline in response to the disruptions caused by the protests in July and August.

As of Jan 23, a total of 3,398,937 income tax returns have been filed, with 1,169,752 submitted online. The filings have so far generated Tk 50.09 billion in tax revenue.

In the previous fiscal year, more than 4.3 million income tax returns were submitted, indicating that the current year’s filings remain behind last year’s pace.

This year, a special order from the NBR has made it mandatory for certain groups to file their income tax returns online. The requirement applies to all government employees based in Dhaka North, Dhaka South, Gazipur, and Narayanganj City Corporations, as well as officers and employees of all scheduled banks, mobile telecom service providers, and select multinational companies across the country.

Under current regulations, individuals are required to pay income tax if their annual earnings exceed Tk 3.5 lakh. Filing a tax return has also been made mandatory for various financial activities, including opening a bank account and using credit cards.

Once filed, the income tax on interest or profit from bank savings and dividends in the capital market is reduced to 10 percent, instead of the standard 15 percent.