Who is required to file income tax returns?

The submission of income tax returns has been made mandatory, primarily for two categories of individuals.

Firstly, individuals whose annual income, calculated from July to June, exceeds a certain threshold are required to file an income tax return.

Even if a person’s income does not meet the taxable threshold, they may still need to file a return to access specific services. In such cases, they must submit a zero or nil return, indicating no taxable income, and therefore, no tax payment required.

Here is a breakdown of the scenarios where filing tax returns are mandatory.

Income thresholds for mandatory tax filing:

1. For individual taxpayers, if their annual income exceeds Tk 350,000.
2. For female taxpayers and those aged 65 years or above, if their annual income exceeds Tk 400,000.
3. For third-gender taxpayers and individuals with disabilities, if their annual income exceeds Tk 475,000.
4. For gazetted war-wounded freedom fighters, if their annual income exceeds Tk 500,000.

Mandatory tax filings for access to certain services:

1. If the taxpayer’s total income exceeds the tax-free threshold.
2. If the taxpayer had taxable income or paid taxes in any of the previous three years.
3. If the taxpayer is a partner in a firm.
4. If the taxpayer is a shareholder director or a shareholder employee in a company.
5. If the taxpayer is a public employee.
6. If the taxpayer holds an executive or managerial position in any business or profession.
7. If the taxpayer has tax-exempt or reduced-rate taxable income.
8. If the taxpayer applies for a loan exceeding Tk 2 million, even if they have no taxable income.
9. To obtain or renew an import or export registration certificate.
10. To obtain or renew a trade licence in city corporation or municipal areas.
11. To register a cooperative society.
12. To become or renew registration as a listed surveyor in general insurance.
13. To sell, lease, transfer, or register any property, building, or apartment worth over Tk 10 million in city corporation, municipal, or cantonment board areas.
14. To obtain or maintain a credit card.
15. To obtain or maintain membership in a professional organisation for doctors, dentists, lawyers, chartered accountants, cost and management accountants, engineers, architects, surveyors, or similar professionals.
16. To obtain or renew a licence as a Nikah registrar under the Muslim Marriages and Divorces (Registration) Act, 1974, a Hindu marriage registrar under the Hindu Marriage Registration Act, 2012, or a registrar under the Special Marriage Act, 1872.
17. To obtain or maintain membership in a trade body or professional organisation.
18. To obtain or renew a drug licence, fire licence, environmental clearance, BSTI licence, or certificate.
19. To obtain or maintain a commercial or industrial gas connection, and for a residential gas connection in city corporation areas.
20. To obtain or renew a survey certificate for any rented vessel, including launches, steamers, fishing trawlers, cargo ships, coasters, and dumb barges.
21. To obtain or renew brick production permits from the Department of Environment or the deputy commissioner’s office.
22. To enrol a child or dependent in an English medium school located in city corporation, district seats, or municipal areas.
23. To obtain or maintain an electrical connection in city corporation or cantonment board areas.
24. To obtain or maintain agency or distributorship for a company.
25. To obtain or renew a firearms licence.
26. To open a letter of credit for imports.
27. To open a postal savings account exceeding Tk 500,000.
28. To open or maintain a fixed deposit account exceeding Tk 1 million.
29. To purchase savings certificates worth over Tk 500,000.
30. To participate in municipal, Upazila, district council, city corporation, or national elections.
31. To participate in shared economic activities by providing vehicles, space, accommodation, or other assets.
32. To receive salary or benefits for individuals in managerial, administrative, or supervisory roles overseeing production activities.
33. For commissions, fees, or other payments received through mobile banking or electronic transfers, including mobile phone recharge commissions.
34. For any payments received by residents from companies for advisory, consultancy, catering, event management, manpower supply, or security services.
35. For any monthly payment exceeding Tk 16,000 under the Monthly Payment Order (MPO) scheme from the government.
36. To obtain or renew an agency certificate from an insurance company.
37. For the registration, ownership transfer, or fitness renewal of motor vehicles, except for two-wheelers or three-wheelers.
38. To disburse foreign grant funds for NGOs registered with the Bureau of NGO Affairs or licensed microcredit institutions under the Microcredit Regulatory Authority.
39. For selling goods or services to consumers in Bangladesh using digital platforms.
40. To apply for membership in a club registered under the Companies Act, 1994, or the Societies Registration Act, 1860.
41. To submit tender documents for supplying goods, executing contracts, or providing services.
42. When receiving goods or services from any company or firm.
43. To submit a bill of entry for the import or export of goods.
44. To submit building plans for approval to development authorities like RAJUK, CDA, KDA, RDA, Gazipur Development Authority, Cox’s Bazar Development Authority, or other relevant city corporations or municipal authorities.
45. For the registration, licensing, or listing as a vendor of stamps, court fees, and cartridge paper, or as a deed writer.
46. To open and maintain a bank account for trusts, funds, foundations, NGOs, microcredit organisations, societies, and cooperative societies.
47. For property owners when renting or leasing a house in city corporation areas to a specific individual.
48. For suppliers or service providers when providing goods or services to specific individuals.
49. To obtain or renew licences for hotels, restaurants, motels, hospitals, clinics, and diagnostic centres.
50. For accessing services at community centres, convention halls, or similar venues in city corporation areas.
51. For any individual eligible for registration as a taxpayer under Section 261.