The last date for tax return submission for 2023 is 31st January 2024.
The penalty for tax submission in Bangladesh is that a person must pay 10% of the previous year’s assessed income. Also, 50 taka for each day of delay. You will have to pay taxes if your yearly income exceeds 300,000 taka. Either now or at the end of the fiscal year, you have to pay tax. So why delay?
In this article, you will get some tips and tricks for tax return submission.
What is tax return?
A tax return is a process of completing a document to calculate the amount of taxes to be paid in a year.
The calculation methods include calculating entity or the amount of income. The tax return calculation is for any individual and submitted to the government.
Here are the things required for tax return calculation: wages, interest, dividends, capital gains, or other profits. It also includes some of the reportable expenditures.
For Bangladesh, the tax submission deadline is 31st January.
Read More: Tax Calculation In HR & Payroll Software
Things to keep in mind for tax return in Bangladesh
To submit a tax return, some key things you will need to keep in mind such as how to fill up an income tax return form in Bangladesh and what documents are essential for the income tax return, etc.
Here are some of the essential things you must analyze-
Decide upon tax Preparer
Nowadays, you can prepare tax return files with the software. Also, there is the option of tax calculation experts, which can be expensive. The easiest and most convenient method is choosing software.
Schedule an Appointment
In case of experts, you will need to schedule an appointment with the tax lawyer. After that, you need to discuss about various things. Finally, the tax calculation procedure starts. This is time-consuming and, at the same time, expensive.
Gather Your Documents
To submit your tax return, you must have some papers ready. Some of them are Salary Certificates, Bank statements, Utility bills, etc.
You can check our blog written on Documents Required for tax submission.
Round Up Your Receipts
Then next thing to remember is that the receipts and the documents are ready to show when necessary. The medical expenses, the house rent documents, and other receipts should be ready.
List Your Personal Information: Personal information means your assets list. Jewelry, flats, lands, or any kind of reportable asset.
Plan Ahead for Any Refund
Sometimes, planning in advance will boost your work and personal life. You will have several options for refunds. You can apply for refunds toward next year’s taxes. You can choose to get the amount of refund for yourself. Donating refunds can also be a good option.
Find a Copy of Last Year’s Return
The last year’s return can be necessary for a tax calculator. The government will look at your file and match the information you provided with the previous year’s.
Check for any updates
The taxation policy can change every year. So it is wise to keep yourself up to date with the procedure and documents.
7 Tips & Tricks for tax Submission in Bangladesh
These tips will help you to submit taxes effectively, efficiently, and precisely.
Start Early to Avoid Delays
Delaying tax submissions has a potential risk of missing the deadline. It is wise to start as early as possible because the tax calculations might take a bit of time. You need to prepare the documents. The audit report needs to be ready. It will need to be verified as well.
So start the process as soon as possible. This will make things much easier to manage.
File an Accurate Return
While auditing tax files, inaccuracy is very common. Every time any fault is found in audit reports, the whole balance sheet gets adjustments.
NBR will investigate your file in case of any fake or inaccurate tax file submission. NBR might raid your place in the worst cases.
It is absolutely crucial to have an exact and accurate tax file. This will help you to avoid any kind of difficulties for you.
Plan for an Extension if You Need
A person needs an extension in tax submission when he fails to gather all the necessary information to create a tax file. For Bangladesh, the tax extension is up to 31ts December. Everything must be ready to submit before the extended deadline.
The penalty counts after crossing the deadline.
It would be a wise decision to make everything right before the extension. And if you need the extension, you must have a solid plan to submit the tax file.
Don’t Miss Out on a Charity Deduction
Some donations have tax rebates. Donations to charitable hospitals approved by NBR. Donation to philanthropic or educational institutions approved by the Government. Donation to ICDDRB and a lot more donations have tax rebates.
If you donate to some of the government-approved charities, the amount of taxes can drop massively.
In order to get tax rebates, these institutions are worth checking.
Consider Additional Deductions
Here are some notable deductions:
Interest on securities: 5%
Fees for Doctors: 10%
Catering service: 10%
Credit rating agency: 10%
Interest on saving instruments: 5%
These can decrease the amount of taxes by a significant amount. You will get these deductions if you include this information in the tax files.
It would be an excellent decision to include the tax rebates while tax submission.
Report Profit on Investments
- Capital gain received from capital assets
- Gains by a company or firm
- From the transfer of stocks or Shares
These are the allowable profits from the investments. If you have earned any profits from this, you should show it on the tax file.
Showing this profit, you will get tax rebates. The tax rebate amount is 15% of allowable investments.
The rules and regulations of taxation can change every year. This changes due to the change in the economy.
If you are willing to submit the tax files, you must stay up to date with the rules and regulations. Keep updated on the documents that the NBR asks for. Being up to date with the information will help you to avoid mistakes and make the process easy.
To Sum Up
Tax calculation is a complex process. It is wise to have the calculation for the experts.
Tax submission is crucial as it is monitored by the government every year. And those who do not submit taxes face serve consequences.
You can submit your tax with the help of a tax lawyer. However, it is very efficient and easy to submit taxes with the dedicated software.