Because of the Covid-19 pandemic, like all other sectors, the income tax sector has also found some unique ways. This article is about the procedure of filing the tax return in 2020 in Bangladesh.
Introduction
The benefits of economic growth and the sustainable development of Bangladesh belong to all citizens. To ensure and increase income equality and prevent wealth inequality among citizens, the income tax department is working on it. It is the responsibility of all the citizens to pay taxes regularly. In the tax year 2020-21, Bangladesh’s government has formulated a new tax return policy. In 2020, due to the Covid-19 pandemic; there have been some changes in the method of filing the tax return, and this thing is discussed in detail below:
New Tax Return Policy
The Bangladesh government has formulated a new tax return policy in 2020-21 tax years. According to this new policy, in 2020, a new amount has been fixed for the tax returns. An individual has to file a tax return if his yearly income is more than 3,00,000 taka, for women and the people above 65 years if the amount is more than 3,50,000 taka and for the freedom fighters is more than 4,75,000 taka.
Each category of taxpayers has a fixed income tax circle for filing returns. They have to file their tax returns into the fixed process. If necessary, the taxpayers can get information about filing income tax returns from the nearest income tax office or tax counseling center. The taxpayers can file this tax return of their own or can take help from any income tax lawyer.
Filing Tax Returns Via Online
At present, in Bangladesh, filing income tax returns by 30th November after the end of the income year is in force. The government of Bangladesh is encouraging people to pay their taxes regularly. To give people comfort and ease, the Bangladesh government has introduced filing tax returns via online in 2016. From 2016 to 2019, the number of online taxpayers was at an increasing rate.
In 2020, due to Covid-19, keeping the taxpayers’ safety on the priority, the Bangladesh government is emphasizing the online filing of tax returns. For this in 2020-21 tax years, taka 2000 remission will be given to those who will file their tax returns online. Recently, the online tax return service has started in Dhaka Area-6 and within 1 year NBR will try to launch it all over the country.
Alternative Of Income Tax Fair
Covid-19 has brought bad news for all the taxpayers waiting for the tax fair to take advantage of filing income tax returns. In 2020, there will be no income tax fair in Bangladesh to avoid mass gathering. Tax fairs have become popular among the taxpayers in the last ten years as all services are available in one place. They feel comfortable paying taxes at the fair. Every year one-fourth of the taxpayers who file tax return go to the tax fair.
As an alternative to the tax fair this year, something new will be organized for the taxpayers. In November 2020, instead of an income tax fair, arrangements will be made in the field tax offices to get fair-like facilities. The NBR is trying their heart and soul to give fair-like services in all tax offices to the taxpayers.
Final Words
To maintain Bangladesh’s national development, the entire citizen needs to pay income taxes regularly. Every year the rate of the taxpayers is increasing in our country. In 2020, on account of the Covid-19 pandemic, some people think that the number of taxpayers will decrease as most people have to face losses in their earnings. However, there is no scope to escape income taxes. So, it will be better to file the tax return on time.
FAQ
- What is the income tax rate in Bangladesh in 2020, and where can I pay for it?
Answer: In the tax year 2020-21, the individual income tax rate is 0% to 30% in Bangladesh. This year the last date of tax return is 30th November. Because of the Covid-19 pandemic, to avoid social gathering and to maintain social distance, there will be no income tax fair in 2020. To file tax returns, the taxpayers have to go to the local tax offices.