Who is required to file income tax returns

Is TIN required to pay income tax? Those who have recently received or will receive a TIN; are most hesitant about filing income tax returns. In this post we will discuss; Who has to pay income tax or tax return and who doesn’t? Many people think that having a TIN is required to file an income tax return, But in reality, it is not like that. The scope of income tax is constantly increasing. At present, TIN is required for purchases of above 60 lakh rupees, above two lakh rupees, and for opening post office savings accounts. TIN is mandatory in 37 such cases. Now with TIN, you have to file an income tax return whether you have taxable income or not. Know who does and who does not have to file an income tax return, with two or three exceptions. 

Taxable income

  • If the income of an individual taxpayer is more than 300,000 BDT per year
  • Female Taxpayers of the third gender and Male Taxpayer aged 65 years and above if income is more than 350,000 BDT per year
  • If the income of gazetted war casualty freedom fighter taxpayer is more than 475,000 BDT per year
  • If the income of the disabled taxpayer is more than 4,50,000 BDT per year.

Who is required to file income tax returns?

  • Who has received 12 digit TIN.
  • If the total income of the taxpayer in the income year exceeds the tax-free limit
  • Taxpayer’s return is assessed for any of the three years preceding the year of income
  • A shareholder is a director or a shareholder is an employee of a company
  • Become a partner in a firm 
  • Being an employee of the Government or any authority, corporation, entity or unit of the Government or any authority, corporation, entity or unit constituted by any existing law, order, or document and drawing a basic salary exceeding Tk 16,000 at any time during the income year
  • Be a salaried employee in an executive or managerial position (by whatever name called) in a business or profession
  • The income tax of the taxpayer is taxable at an exempt or reduced rate in the income year
  • Owning a motor vehicle (motor vehicle also means jeep or microbes)
  • Membership of a club registered under the Value-Added Tax Act
  • Conducting any business or profession by obtaining a trade license from a city corporation, municipality, or union council
  • Registration with a recognized professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect, surveyor, or similar professional.

  • Having registration with the National Board of Revenue as Income Tax Practitioner
  • Membership of any chamber of commerce or industry or trade association or organization
  • To be a candidate for any post in a municipality, city corporation or as a Member of Parliament
  • Participation in any tender of any Government, Semi-Government, Autonomous Organization, or Local Government.
  • Being on the Board of Directors of any company or any group of companies
  • Participating in any shared economic activity by way of motor vehicle, premises, accommodation, or any other asset
  • Owner of licensed arms
  • If the total investment in the purchase of savings paper exceeds two lakh rupees
  • To open a postal savings account of more than two lakh BDT and
  • On registration of cooperative societies.

Those who do not have to file Tax returns 

  • Non-residents who do not have a fixed base in Bangladesh.
  • Received 12-digit TIN for sale of land, but no taxable income.
  • Accepted 12-digit TIN for credit card acceptance, but no taxable income. 

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