Return submissions increase to 28.51 lakh

Income tax return submission by individual taxpayers across the country has increased by around 24 per cent year-on-year to 28.51 lakh in the incumbent fiscal year.

Until January 1 which was the last date for return filing for the tax year 2022-23, the National Board of Revenue (NBR) collected more than Tk 4,100 crore from return submission, up around 25 per cent compared to the corresponding period of the previous year.

However, about 2.5 lakh taxpayers applied to extend the deadline for the income tax return submission, said sources from the NBR.

The revenue administration expects that the number of return submissions will increase more in FY23 after the applicants also submit their returns, and due to budgetary amnesties for TIN holders who have never filed their tax returns.

A number of 22,99,625 individuals filed income tax returns in the last financial year and the NBR collected Tk 3,281 crore in FY22.

Earlier, responding to requests from various quarters, the revenue board extended the return filing deadline till Sunday considering the ongoing economic headwinds.

Talking to The Business Post, NBR Member (Tax Information Management & Services) Mohammad Jahid Hasan said, “The board sees a hefty growth this year due to the budgetary amnesties for TIN holders who have never filed tax returns and making return submission evidence mandatory to get some essential services.”

“A huge number of taxpayers have applied to extend the submission deadline. Hopefully, they will file their returns. Besides, new taxpayers can submit returns till June 30 this year. So, the number of return submissions may increase to around 40 lakh after FY23 ends,” he added.

According to the national budget for FY23, people who have tax identification numbers (TIN) but have not ever filed tax returns will be exempted from paying fines for the previous years if they file returns by this fiscal year. The government offered amnesty to encourage TIN-holders to submit tax returns. Earlier, such TIN-holders had to pay a minimum of Tk 5,000 in fine for not submitting the return.

Currently, annual income up to Tk 3 lakh is exempted from tax. According to the NBR, the existing tax-free income limit is Tk 3.50 lakh for women and senior citizens, Tk 4.50 lakh for physically challenged people and Tk 4.75 lakh for war-wounded freedom fighters.

Income tax return submission is mandatory for individuals earning more than the above-mentioned amounts. As per the existing income tax ordinance, a penalty of 10 per cent of the last tax payable, or Tk 5,000, is levied if a person fails to file the tax return or seeks time from the deputy commissioner of taxes.

Besides, taxpayers will have to pay a fine of Tk 50 per day for the delay. And even if the time is extended by a deputy commissioner, interest at the rate of 2 per cent per month shall be payable on the applicable income tax.

“The previous deadline was December 31. As the last two days of the outgoing year are weekly holidays, the deadline has been extended by a day,” said Shahin Akter, member (Tax Administration and HRM) of NBR on December 28.

Earlier on November 30, NBR extended the deadline by one month in response to requests from various quarters, NBR Chairman Abu Hena Md Rahmatul Muneem said at a seminar in Dhaka.

There are more than 82 lakh online tax identification number (e-TIN) holders in the country and around 26 lakh of them filed their tax returns in the fiscal year 2021-22.