Income Tax Return

RETURN AND STATEMENT

Return of income - Section 75

Subject to the provisions of sub-section (2), every person shall file or cause to be filed, with the Deputy Commissioner of Taxes, a return of income of the income year –

(a) if the total income of the person during the income year exceeds the maximum amount that is not chargeable to tax under this Ordinance; or

(b) if such person was assessed to tax for any one of the thre years immediately preceding that income year; or

(c) if the person is -

• a company; or
• a non-government organization registered with NGO Affairs Bureau; or
• a co-operative society; or
• a firm; or
• an association of persons; or 1
• a shareholder director or a shareholder employee <j a company; or
• a partner of a firm; or
• an employee of the government or an authority, corporation, body or units of the government or formed by any law, order or instrument being in force, if the employee, at any time in the income year, draws a basic salary of taka sixteen thousand or more; or

(d) if the person, not being an institution established solely for charitable purpose or a fund, has an income during the income year which is subject to tax exemption or lower tax rate under section 44;or

(e) if the person, at any time during the relevant income year fulfills any of the following conditions, namely:-

• owns a motor car; or
• owns a membership of a club registered under
• runs any business or profession having trade license from a city corporation, a paurashava or a union parishad; or
• has registered with a recognized professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or any other similar profession; or
• has registered with the Board as an income tax practitioner; or
• has a membership of a chamber of commerce and industries or a trade association or body; or
• runs for an office of any paurashava, city corporation, or a Member of Parliament;
• participates in a tender floated by the government, semi-government, autonomous body or a local authority; or
• serves in the board of directors of a company or a group of companies:

Provided that any non-resident Bangladeshi may file his return of income along with bank draft equivalent to the tax liability, if any, on the basis of such return, to his nearest Bangladesh mission and the mission will issue a receipt of such return with official seal and send the return to the Board.

(2) A return of income shall not be mandatory for-

• an educational institution receiving government benefits under Monthly Payment Order (MPO); or
• a public university; or
• a fund; or
• any class of persons which the Board, by order J official gazette, exempt from filing the return.

(3) Subject to the provision of sub-section (4), the return under sufci section (1) shall be-

1. furnished in the prescribed form setting forth therein sue particulars and information, and accompanied by such schedule! statements, accounts, annexures or documents as may be prescribed;
2. signed and verified-

1. in the case of an individual, by the individual himself where the individual is absent from Bangladesh, by th individual concerned or by some person duly authorized by him in this behalf; and wheu th individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;
2. in the case of a Hindu undivided family, by the Karta and, where the Karta is absent from Bangladesh or is mentally incapacitated from attending to his affairs, by any other adult member of such family;
3. in the case of a company or a local authority, by tb principal officer thereof;
4. in the case of a firm, by any partner thereof, not beiif a minor;
5. in the case of any other association, by any member J the association or the principal officer thereof; ]
6. in the case of any other person, by that person or bj any person competent to act on his behalf;

(c) accompanied by-

1. in the case of individual, statements of assets, % liabilities and life style as required under section 80;
2. in the case of a company, an audited statement of accounts and a computation sheet explaining the difference between the profit or loss shown in the statement of accounts and the income shown in the return.

(4) The Board may, by notification in the official Gazette, -

1. specify that any return required to be filed under this section shall be filed electronically or in any other machine readable or computer readable media;
2. specify the form and tthe manner in which such electronic, machine readable or computer readable returns shall be filed.

(5) Every return under this section shall be filed, unless the date is extended under sub-section (6), on or before the Tax Day:

Provided that an individual being Government official engaged in higher education on deputation or employed under lien outside Bangladesh shall file return or returns for the period of such deputation or lien, at a time, within three months from the date of his return to Bangladesh.

(6) The last date for the submission of a return for a person may be extended by the Deputy Commissioner of Taxes upon the application by the person in the prescribed form:

Provided that the Deputy Commissioner of Taxes may extend the date up to two months from the date so specified and he may further extend the date up to two months with the approval of the Inspecting Joint Commissioner.

75A. Return of withholding tax.-

(1) Every person, being a company or a co-operative society or a non-government organization registered with NGO Affairs Bureau, shall file or cause to be filed, with the Deputy Commissioner of Taxes under whose jurisdiction he is an assessee, a return of tax deducted or collected under the provisions of Chapter VII of this Ordinance.

2. The return under-sub-section (1) shall be- 4

1. furnished in the prescribed form setting forth therein sud particulars and information, and accompanied by such schedules statements, accounts, annexures or documents as may b* prescribed; ?
2. signed and verified in the manner as specified in clause (c) a sub-section (3) of section .75;
3. filed half-yearly by the following dates-

1. First return: by Thirty-first January of the year in which the deduction or collection was made;
2. Second return: by Thirty-first July of the next year following the year in which the deduction or collection was made.

Provided that the last date for the submission of a return specified in this sub-section may be extended by the Deputy Commissioner of Taxes up to fifteen days from the date specified.

3. The Board may, by notification in the official Gazette

1. specify that any return required to be filed under this section shall be filed electronically or in any other machine readable or computer readable media;

2. specify, the form and the manner in which such electron machine readable or computer readable returns shall be filed.

75AA. Audit of the return of withholding tax.-

(1) The Deputy Commissioner of Taxes, with the approval of the Board, shall select a number of returns of withholding tax filed under section 75A for audit

(2) The Deputy Commissioner of Taxes shall conduct the audit of the selected return in respect of the following matters-

1. whether the tax has been deducted or collected at the rate, in the amount and in the manner as provided in Chapter VII of this Ordinance and the rules made thereunder;
2. whether the tax collected or deducted has been paid to the credit of the Government, or has been paid in accordance with the manner and within the time as prescribed;
3. whether the certificate of tax deduction or collection has been furnished in accordance with the provisions of this Ordinance.

(3) Where an audit under sub-section (2) results in findings that the provisions of this Ordinance in respect of the matters mentioned in clauses (a), (b) or (c) of sub-section (2) have not complied with the Deputy Commissioner of Taxes conducting the audit and may take necessary actions under this Ordinance including the actions under sections 57, 57A and 124.

(4) No return shall be selected for audit after the expiry of four years from the end of the year in which the return was filed."

Notice for filing return - Section 77

(1) The Deputy Commissioner of Taxes may, at any time after expiry of the date specified in section 75, by a notice in writing, require-

(a) any person, other than a company, to file a return of his total income as provided in that section if the opinion of the Deputy Commissioner of Taxes the total income of such person during the income year, of such amount as to render liable to tax;

(b) any company to file a return of its total income, if it is not filed.

(2) The return under sub-section (1) shall be filed within such period, not being less than twenty-one days as may be specified in the notice or within such extended period as the Deputy Commissioner of Taxes may allow.

Filing of revised return - Section 78

Any person who has not filed a return as required by section 75 or 77 or who, having filed return, discovers any omission or incorrect statement therein, may, without prejudice to any liability which he may have incurred on this account, file a return or a revised return, as the case may be, at any time before the assessment is made.

Production of accounts and documents - Section 79

The Deputy Commissioner of Taxes may, by notice in writing, require an assessee who has filed a return under section 75, or to whom a notice has been issued under section 77, to produce or cause to be produced such accounts, statements and documents on such date as may be specified in the notice, such accounts, statements and documents including those relating to any period, not being earlier than three years prior to the income year, as he may consider necessary for the purpose of making an assessment under this Ordinance.

Statements of assets, liabilities and life style - Section 80

Every person, being an individual assessee, shall furnish statements in the forms and manners as prescribed in respect of the total assets, liabilities and expenses of the person or the spouse, minor children and dependents of the person as on the last date of the income year if the person-

(a) has, in the last date of the income year, a gross wealth exceeding taka twenty lakh; or

(b) owns a motor car; or

(c) has made an investment in a house property or an apartment in the city corporation area:

Provided any person, being an individual assessee, who is not required to submit the statement mentioned in this sub-section may voluntarily submit such statement.

(2) Every person, being an individual assessee, shall furnish statements in the forms and manners as prescribed a statement of expenses relating to the life style of such expenses:

Provided that an individual not being a shareholder director of a company having income from salary or from business or profession may option not to submit such statement, if his total income does not exceed three lakh taka in the income year.

2. Where any statement as mentioned in sub-section (1) is non-submitted by a person being an individual, the Deputy Commissioner of Taxes may require, by notice in writing, to submit the same by person within the time as mentioned in the notice."

Advance Income Tax (ITO,1984)

PAYMENT OF TAX BEFORE ASSESSMENT (ACI ENF IC GDP)

Advance payment of tax - Section 64

(1) Except as provided in sub-section (2), tax shall be payable by an assessee during each financial year by way of advance payment of tax, if the total income of the assessee for the latest income year in respect of which he has been assessed by way of regular assessment, or has been provisionally assessed under this Ordinance, or the Income-tax Act, 1922 (XI of 1922), exceeds four lakh taka.

(2) Nothing in sub-section (1) shall apply to any income classifiable under the heads "Agricultural income" and "Capital gains" excluding gain from transfer of share of a company listed with a stock exchange.

Computation of advance tax - Section 65

(1) The amount of advance tax payable by an assessee in a financial year shall be the amount equal to the tax payable on his total income of the latest income year as assessed on regular basis or provisionally, as the case may be, as reduced by the amount of tax required to be deducted or collected at source.

(2) The tax payable under sub-section (1) shall be calculated at the rates in force in respect of the financial year referred to therein.

Installments of advance tax - Section 66

Advance tax shall be payable in four equal installments on the fifteenth day of September, December, March and June of the financial year for which the tax is payable.

Estimate of advance tax - Section 67

(1) Where, an assessee who is required to pay advance tax under section 64 estimates, at any time before the last installment is due, that the tax payable by him for the relevant assessment year is likely to be less than the amount of tax as computed under section 65, he may, after giving to the Deputy Commissioner of Taxes an estimate of the tax payable by him, pay such estimated amount of advance tax, as reduced by the amount, if any, already paid, in equal installments on the due dates of payment under section 66.

(2) The assessee may furnish a revised estimate of such amount at any time before any of such installments become payable and may thereby adjust any excess or deficiency, by reference to the amount already paid by him under this section, in any subsequent installment or installments payable in such financial year.

Advance payment of tax by new assesses - Section 68

Any person who has not previously been assessed by way of regular assessment under this Ordinance or the Income-tax Act, 1922 (XI of 1922), shall before the fifteenth day of June in each financial year, if his total income, subject to section 64 (2), of the period which would be the income year for the immediately following assessment year is likely to exceed four lakh taka, send to the Deputy Commissioner of Taxes an estimate of his total income and advance tax payable by him calculated in the manner laid down in section 65 and shall pay such amount on such dates specified in section 66 as have not expired by installments which may be revised according to section 67(2).

Advance tax on certain income – Section 68A

(1) A manufacturer of cigarette shall pay advance tax at the rate of three percent (3%) on net sale price in every month.

(2) The advance tax paid under sub-section (1) shall be adjustable against the quarterly installments of advance tax payable under section 66.

Explanation.- In this section, “net sale” shall be A- B, where, A is the gross sale and B is the value added tax and the supplementary duty, if any, on such gross sale.

Advance tax for the owners of private motor car –Section 68B

(1) Every person owning a private motor car shall be deemed to have an income by which the motor car is maintained and shall pay advance income tax to be collected at the rate and in the manner as mentioned in sub-section (2).

(2) Subject to the provision of sub-section (3), the authority responsible for the registration and fitness renewal of motor car shall collect, on or before the date of registration or fitness renewal of the motor car, advance tax at the following rate- 

Sl. #	Type and engine capacity of motor car	Amount of tax (in taka)
1	A car or a Jeep, not exceeding 1500cc	15,000/-
2	A car or a Jeep, exceeding 1500cc but not exceeding 2000cc	30,000/-
3	A car or a Jeep, exceeding 2000cc but not exceeding 2500cc	50,000/-
4	A car or a Jeep, exceeding 2500cc but not exceeding 3000cc	75,000/-
5	A car or a Jeep, exceeding 3000cc but not exceeding 3500cc	1,00,000/-
6	A car or a Jeep, exceeding 3500cc	1,25,000/-
7	A microbus	20,000/-

Provided that the rate of tax shall be fifty percent (50%) higher for each additional motor car if the owner has two or more motor cars in his name or in joint names with other person or persons.

Failure to pay installments of advance tax - Section 69

Where, an assessee who is required to pay advance tax fails to pay any installment of such tax, as originally computed or, as the case may be, estimated, on the due date, he shall be deemed to be an assessee in default in respect of such installment.

Levy of interest for failure to pay advance tax - Section 70

Where, in respect of an assessee who is required to pay advance tax, it is found in the course of regular assessment that advance tax has not been paid in accordance with the provisions of this Chapter, there shall be added, without prejudice to the consequences of the assessee being in default under section 69, to the tax as determined on the basis of such assessment, simple interest thereon calculated at the rate and for the period specified in section 73.

Credit of advance tax - Section 71

Any sum, other than a penalty or interest, paid by or recovered from an assessee as advance tax, shall be treated as a payment of tax in respect of the income of the period which would be the income year for an assessment for the year next following the year in which it was payable and shall be given credit for in the assessment of tax payable by the assessee.

Interest payable by Government on excess payment of advance tax - Section 72

(1) The Government shall pay simple interest at ten per cent per annum on the amount by which the aggregate sum of advance tax paid during a financial year exceeds the amount of tax payable by him as determined on regular assessment.

(2) The period for which interest under sub-section (1) shall be payable shall be the period from the first day of July of the year of assessment to the date of regular assessment in respect of the income of that year or a period of two years from the said first day of July, whichever is shorter.

Interest payable by the assessee on deficiency in payment of advance tax - Section 73

1. Where, in any financial year, an assessee has paid advance tax on the basis of his own estimate and the advance tax so paid together with the tax deducted at source, if any, is less than seventy-five per cent. of the amount of tax payable by him as determined on regular assessment, the assessee shall pay, in addition to the balance of tax payable by him, simple interest at ten percent per annum on the amount by which the tax so paid and deducted falls short of the seventy-five per cent of the assessed tax.

Provided that the rate of interest shall be fifty percent (50%) higher if the return is not filed on or before the Tax Day.

(2) The period for which interest under sub-section (1) shall be payable shall be the period from the first day of July of the year in which the advance tax was paid to the date of regular assessment in respect of the income of that year or a period of two years from the said first day of July, whichever is shorter.

(3) Where, as a result of appeal, revision or reference, the amount on which interest was payable under sub-section (1) has been reduced, the amount of interest payable shall be reduced accordingly and the excess interest paid, if any, shall be refunded together with the amount of tax that is refundable.

Delay Interest for not filing return on or before the Tax Day- Section 73A.

(1) Where an assessee is required to file a return of income for an assessment year under section 75 and fails to file the same before the expiry of the Tax Day, the assessee shall, without prejudice to any other consequences to which he may be liable to, pay a delay interest at the rate of two percent (2%) per month on the difference between the tax assessed on total income for the assessment year and the tax paid in advance for the assessment year including the tax deducted or collected at source;

Explanation.-In this section, the expression “tax assessed on total income” as mentioned in clause (a) of sub-section (1) means-

(i) where the return is subject to assessment under section 82BB, tax on total income under sub-section (1) or sub-section (2) or sub-section (3), whichever is higher.

(ii) where the return is not subject to assessment under section 82BB, tax on total income as assessed by the Deputy Commissioner of Taxes.

(2) The delay interest under sub-section (1) shall be calculated for a period from the first day immediately following the Tax Day to-

(a) where the return is filed, the date of filing the return;

(b) where the return is not filed, the date of regular assessment

74. Payment of tax on the basis of return.—

(1) Every person who is required to file a return under sections 75, 77, 78, 89(2), 91(3) or 93(1) shall, on or before the date on which he files the return, pay the amount of the tax payable by him on the basis of such return as reduced by the amount of any tax deducted from his income or paid by him in accordance with the provisions of this Chapter.

(2) Any amount paid under sub-section (1) shall be deemed to have been paid towards the sum as may be determined to be payable by him after regular assessment.

(3) A person who, without reasonable cause, fails to pay the tax as required by sub-section (1) shall be deemed to be an assessee in default.