Published: 12:00 AM, 23 November 2016
The simple method of paying Income Tax
Income tax is one of the main sources of accumulation of revenue by the government. Tax paid by individual tax payer or by corporate entity on the basis of taxable income to the government exchequer at the end of an income year is income tax. However, one will be obliged to pay income tax only after exceeding the specified amount of his/her tax free total income each year.
On the contrary, income tax return means submission of return of income in the prescribed form to the Deputy Commissioner (DC) of Taxes by a person whose total income during the income year exceeds the maximum amount of non-chargeable income or the income of any other person in respect of which he is assessable to tax under the Income Tax Ordinance (ITO), 1984. However, there are some exceptions where a person is also liable to submit his/her return of income albeit s/he doesn't exceed the specified amount.
Any non-resident Bangladeshi may file his return of income along with bank draft equivalent to the tax liability to the nearest Bangladesh mission and the mission will issue a receipt of such return with official seal and send the return to the National Board of Revenue (NBR).
As per the stipulation stated in the Finance Act, 2016 if an ordinary man earned more than Tk250,000 during the income year 2015-16 then he has to file his income return along with the source(s) of income.
Nevertheless, the limit of maximum non taxable income will be Tk300, 000 for women and senior tax payers of 65 years and above age, Tk375, 000 for physically challenged personnel and Tk425,000 for gazette enlisted war wounded freedom fighters.
The tax rates for female, taxpayers of 65 years and above, differently able, retired and gazetted war-wounded freedom fighter are almost same after exceeding the maximum tax free threshold.
However, the minimum amount of income tax for the assessed who lives in Dhaka or Chittagong city corporation area is Tk 5000, Tk 4000 for other city corporations areas and Tk 3000 for other tax payers'.
Submission of income tax return Each income taxpayer is entitled to get income tax return form for free of cost from tax offices or from the website of NBR i.e www.nbr-bd.org. Basically, main income tax return form is constituted by three pages while first page is for basic information of the taxpayer, second page is for income and tax account and third page is for verification and signature. However, additional schedule will be added on basis of source of income of the taxpayer.
NBR launched online tax calculator on www.nbrtaxcalculatorbd.org to make it easy for the taxpayers to assess their taxes. In addition NBR introduces online tax submission portal to facilitate tax payers. Now anyone can submit his/her return by log in www.etaxnbr.gov.bd. However, to do this every taxpayer needs to get user ID and password for the first time from concerned tax office.
Besides, NBR also launches spot assessment for small entrepreneurs and other professionals. Apart from these, in recent few years NBR arranges income tax fair where taxpayers can get e-Taxpayer's Identification Number (TIN), assess his/her total amount income tax in that income year and can submit the return to the fair directly. The NBR will begin first-ever Income Tax Week this year to provide taxpayers with all tax related services including filing up of income tax return under a single shadow on November 24.
After assessing the amount of income tax every assess shall deposit the amount to the public exchequer through treasury chalan if the amount not exceeding Tk 10,00 or through pay order, bank draft or account payee cheque in case the amount exceeds more than Tk 10,000 or through online and submit duly signed and verified return form along with the necessary documents i.e. salary statement, bank statement, bond or debenture, income statement, balance sheet, house rent contract deed etc. to relevant tax circle.
However, if anyone claims tax rebate on investment then s/he must include the particulars in schedule 24D and attach it along with the tax return form. Nonetheless, the taxpayers needs to show any tax deducted at source during the income year or tax paid in advance to the income tax return.
Additionally, an individual must submit his/her personal, spouse's and dependents' gross wealth owned at the last day of the income year, liability and expenditure statement if s/he has total gross wealth of Tk more than 2000,000 or own a motor vehicle at the last day of the income year or own any house property or apartment or invest in any house property or apartment in any city corporation area.
Time limit to submit the return Every individual must submit his/her income tax return to the concerned Deputy Commissioner (DC) of Taxes from 1 July to 30 November, 2016. Otherwise s/he will be complied to pay 2% monthly delay interest even if s/he applied for time extension with the DC of Taxes.
However, company/NGO shall submit the income tax return, by the fifteenth day of July next following the income year or where the fifteenth day of July falls before the expiry of six months from the end of the income year, before the expiry of such six months and in all other cases, by the thirtieth day of September next following the income year.
Nevertheless, the last date for the submission of return may be extended by the DC of Taxes up to six months with the approval of the Inspecting Joint Commissioner. Beside this, the Government can also extend the time limit.
Punishment for infringing the rule
An assessee will be guilty of an offence punishable with imprisonment for a term which may extend to three years but shall not be less than three months or with fine or with both, if s/he makes a statement in any verification, return or any other document furnished under any provisions of the ITO, 1984 which is false or knowingly and willfully aids, abets, assists, incites or includes another person to make or deliver a false return, account, statement, certificate or declaration or himself knowingly and willfully makes or delivers such false return, account, statement, certificate or declaration on behalf of another person.
Furthermore, a taxpayer will be culpable of an offence punishable with imprisonment for a term which may extend to one year or with fine or with both, if s/he, without reasonable cause fails to furnish the return of income in due time. Beside this, the DC of Taxes will impose fine T10% from the last assessed amount but not less than Tk1000 and also impose fine Tk50 for each day late.
In addition, a person will be guilty of an offence punishable with imprisonment which may extend to five years but shall not be less than three months or with fine or with both, if he conceals the particulars or deliberately furnishes inaccurate particulars of his income. However, document submitted by the taxpayer is confidential and if a public servant or any person assisting or engaged by any person discloses any particulars/information in contravention of the provisions of this law is guilty of an offence punishable with imprisonment for a term which may extend to six months or with fine.
The existing systems of accumulation of income tax are still weak, complex, time consuming and yet to hassle free for the taxpayers. Additionally, there are some loopholes in our whole tax management and administration and some taxpayers take this chance to evade taxes.
More digitalization of tax management can reduce hassle of taxpayers. Due to these reasons as well as our culture and mentality, the government is being failed to achieve its target and enlarge the area of value added tax as well as small income group people. Consequently, all classes of people are forced to pay taxes in a different way and it creates impact on the price of our daily commodities. Hence every eligible tax payer should pay tax accordingly to build the nation.
The writer is an advocate at the Supreme Court of Bangladesh; an assistant professor of law at Dhaka international university, a legal researcher, law and justice analyst and rights activist
On the contrary, income tax return means submission of return of income in the prescribed form to the Deputy Commissioner (DC) of Taxes by a person whose total income during the income year exceeds the maximum amount of non-chargeable income or the income of any other person in respect of which he is assessable to tax under the Income Tax Ordinance (ITO), 1984. However, there are some exceptions where a person is also liable to submit his/her return of income albeit s/he doesn't exceed the specified amount.
Any non-resident Bangladeshi may file his return of income along with bank draft equivalent to the tax liability to the nearest Bangladesh mission and the mission will issue a receipt of such return with official seal and send the return to the National Board of Revenue (NBR).
As per the stipulation stated in the Finance Act, 2016 if an ordinary man earned more than Tk250,000 during the income year 2015-16 then he has to file his income return along with the source(s) of income.
Nevertheless, the limit of maximum non taxable income will be Tk300, 000 for women and senior tax payers of 65 years and above age, Tk375, 000 for physically challenged personnel and Tk425,000 for gazette enlisted war wounded freedom fighters.
The tax rates for female, taxpayers of 65 years and above, differently able, retired and gazetted war-wounded freedom fighter are almost same after exceeding the maximum tax free threshold.
However, the minimum amount of income tax for the assessed who lives in Dhaka or Chittagong city corporation area is Tk 5000, Tk 4000 for other city corporations areas and Tk 3000 for other tax payers'.
Submission of income tax return Each income taxpayer is entitled to get income tax return form for free of cost from tax offices or from the website of NBR i.e www.nbr-bd.org. Basically, main income tax return form is constituted by three pages while first page is for basic information of the taxpayer, second page is for income and tax account and third page is for verification and signature. However, additional schedule will be added on basis of source of income of the taxpayer.
NBR launched online tax calculator on www.nbrtaxcalculatorbd.org to make it easy for the taxpayers to assess their taxes. In addition NBR introduces online tax submission portal to facilitate tax payers. Now anyone can submit his/her return by log in www.etaxnbr.gov.bd. However, to do this every taxpayer needs to get user ID and password for the first time from concerned tax office.
Besides, NBR also launches spot assessment for small entrepreneurs and other professionals. Apart from these, in recent few years NBR arranges income tax fair where taxpayers can get e-Taxpayer's Identification Number (TIN), assess his/her total amount income tax in that income year and can submit the return to the fair directly. The NBR will begin first-ever Income Tax Week this year to provide taxpayers with all tax related services including filing up of income tax return under a single shadow on November 24.
After assessing the amount of income tax every assess shall deposit the amount to the public exchequer through treasury chalan if the amount not exceeding Tk 10,00 or through pay order, bank draft or account payee cheque in case the amount exceeds more than Tk 10,000 or through online and submit duly signed and verified return form along with the necessary documents i.e. salary statement, bank statement, bond or debenture, income statement, balance sheet, house rent contract deed etc. to relevant tax circle.
However, if anyone claims tax rebate on investment then s/he must include the particulars in schedule 24D and attach it along with the tax return form. Nonetheless, the taxpayers needs to show any tax deducted at source during the income year or tax paid in advance to the income tax return.
Additionally, an individual must submit his/her personal, spouse's and dependents' gross wealth owned at the last day of the income year, liability and expenditure statement if s/he has total gross wealth of Tk more than 2000,000 or own a motor vehicle at the last day of the income year or own any house property or apartment or invest in any house property or apartment in any city corporation area.
Time limit to submit the return Every individual must submit his/her income tax return to the concerned Deputy Commissioner (DC) of Taxes from 1 July to 30 November, 2016. Otherwise s/he will be complied to pay 2% monthly delay interest even if s/he applied for time extension with the DC of Taxes.
However, company/NGO shall submit the income tax return, by the fifteenth day of July next following the income year or where the fifteenth day of July falls before the expiry of six months from the end of the income year, before the expiry of such six months and in all other cases, by the thirtieth day of September next following the income year.
Nevertheless, the last date for the submission of return may be extended by the DC of Taxes up to six months with the approval of the Inspecting Joint Commissioner. Beside this, the Government can also extend the time limit.
Punishment for infringing the rule
An assessee will be guilty of an offence punishable with imprisonment for a term which may extend to three years but shall not be less than three months or with fine or with both, if s/he makes a statement in any verification, return or any other document furnished under any provisions of the ITO, 1984 which is false or knowingly and willfully aids, abets, assists, incites or includes another person to make or deliver a false return, account, statement, certificate or declaration or himself knowingly and willfully makes or delivers such false return, account, statement, certificate or declaration on behalf of another person.
Furthermore, a taxpayer will be culpable of an offence punishable with imprisonment for a term which may extend to one year or with fine or with both, if s/he, without reasonable cause fails to furnish the return of income in due time. Beside this, the DC of Taxes will impose fine T10% from the last assessed amount but not less than Tk1000 and also impose fine Tk50 for each day late.
In addition, a person will be guilty of an offence punishable with imprisonment which may extend to five years but shall not be less than three months or with fine or with both, if he conceals the particulars or deliberately furnishes inaccurate particulars of his income. However, document submitted by the taxpayer is confidential and if a public servant or any person assisting or engaged by any person discloses any particulars/information in contravention of the provisions of this law is guilty of an offence punishable with imprisonment for a term which may extend to six months or with fine.
The existing systems of accumulation of income tax are still weak, complex, time consuming and yet to hassle free for the taxpayers. Additionally, there are some loopholes in our whole tax management and administration and some taxpayers take this chance to evade taxes.
More digitalization of tax management can reduce hassle of taxpayers. Due to these reasons as well as our culture and mentality, the government is being failed to achieve its target and enlarge the area of value added tax as well as small income group people. Consequently, all classes of people are forced to pay taxes in a different way and it creates impact on the price of our daily commodities. Hence every eligible tax payer should pay tax accordingly to build the nation.
The writer is an advocate at the Supreme Court of Bangladesh; an assistant professor of law at Dhaka international university, a legal researcher, law and justice analyst and rights activist
