Who Needs to File an Income Tax Return in Bangladesh? (Section 264 Rules)

In Bangladesh, filing an income tax return is not solely determined by taxable income. Under Section 166 and Section 264 of the Income Tax Act 2023, anyone holding an e-TIN or utilizing any of the 43+ statutory services must mandatorily submit an annual tax return, regardless of whether their net tax payable is zero.

Key Rule: Having income below the taxable threshold does NOT exempt you from filing if you fall under any of the mandatory registration or service triggers in Section 264.

Mandatory Filing Triggers Under Section 166

You are legally required to submit an annual return if you meet any of the following statutory criteria:

• Your total income exceeds the annual tax-free threshold (BDT 350,000 for general individuals; higher for women, senior citizens, and persons with disabilities).

• You were assessed for tax in any of the preceding three income years.

• You are a shareholder director or employee in a limited company.

• You are a partner in a registered partnership firm.

• You own a motor car or commercial transport vehicle.

• You hold a valid trade license in any City Corporation or Municipality.

• You are registered with a professional body as a lawyer, doctor, chartered accountant, or engineer.

The 43+ Services Requiring Return Submission Proof (PSR)

Section 264 mandates that financial institutions, government agencies, and utilities must verify your Proof of Submission of Return (PSR) before providing services:

Penalties for Non-Compliance

Failing to submit your return when legally required results in penalty assessments under Section 266, delay interest under Section 174 (2% per month), and automatic suspension or rejection of essential banking and licensing services.