Individual Personal income tax

9.16.1 Introduction
In general, Bangladesh residents are taxed on their worldwide income. Non-
residents are taxed on income earned in Bangladesh irrespective of where the
payment is made.
There is no provision for married couples to file joint returns. Returns are to be
filed by 30 November for the income year ending 30 June.
Individuals may file returns under the universal self-assessment scheme but the
assessing officers have the discretion to scrutinize the returns.
Where the total income exceeds Tk 600,000 during the income year for any
individual, he is required to pay advance tax as either 100% of the last assessed tax
or 75% of the current estimated income tax and pay the outstanding tax (if any) at
the time of filing the return. Tax on an employee’s salary is required to be
withheld on a monthly basis by the employer.
9.16.2 Resident
An individual is treated as a resident of Bangladesh if that person stays in
Bangladesh for 182 days or more in any income year; or 90 days or more in an
income year if that person has previously resided in Bangladesh for a period of
more than 365 days during the four preceding years. The residence is determined
in Bangladesh purely on the period of presence in Bangladesh irrespective of
residency in other countries. Short-term visitors and dependents of foreign
nationals not earning any income in Bangladesh are not taxed in Bangladesh
and are not required to file tax returns.

Individual Personal income tax

9.16.3 Universal self-assessment (Section 82BB)
The Universal self-assessment has been restructured. The responsibilities of
the tax authority has been specified. Where an assessee files a return of income
mentioning twelve- digit Taxpayer's Identification Number (TIN) in
compliance with the conditions and within the time specified and pays tax on
the basis of the tax return, the tax authority will issue an acknowledgment of
receipts of the return and such acknowledgment shall be deemed to be an order
of assessment of the Deputy Commissioner of Taxes.
Upon receipt of an income tax return, the DCT shall compute the total income
after necessary adjustments of any arithmetical accuracy and incorrect claim.
He shall determine tax liability taking into account of tax refundable claimed
including any tax deducted at source, any tax collected at source and any

advance tax paid.
After processing the submitted tax return, the DCT shall send a notice to the
assessee communicating the difference in computation of income, tax, refund, or other related particulars with the opportunity to justify his position in writing
and to file an amended return specifying the time limit in the notice. If the assessor
files an amended return properly, the DCT shall send a letter of acceptance
within 90 days. In case the assessee does not respond to the notice, the DCT
shall send a demand notice within 9 months specifying total income and tax
payable or refundable.
After filing the return, if the assessee finds any unintentional mistake resulting
in less tax liability having been paid or computed, he may file an amended return
with a written statement mentioning the reason and paying tax in accordance
with the amended return. Interest at the rate of 2% will be applicable for the
tax that was paid or computed less. However, an amended tax return cannot be
filed after the expiry of 180 days from the date of the filing of the original return
or after the original return has been selected for audit.
A return of income filed under universal self-assessment shall not be selected
for audit where such return except the return of income of a financial
institution shows at least 15% higher income than the income assessed or
shown in the return of the immediately preceding assessment year and such return:

Personal income tax

 is accompanied by corroborative evidence in support of any income
exempted from tax;
 is accompanied by a copy of the bank statement or account statement, as the
the case may be, in support of any sum or aggregate of sums of the loan exceeding
Tk 500,000;
 does not show receipt of gift during the year;
 does not show any income chargeable to tax at a rate reduced under Section
44; or
 does not show or result in any refund.
No question regarding the source of investment shall be raised if a new
assessee shows income at least 20% of the capital invested in a business or
profession and shows the income that exceeds the tax exemption threshold.
However, the initial capital investment or any fraction thereof shall not be
transferred within five years from the end of the income year.
The time limitation for disposal of universal self-assessment cases is two years
from the end of the assessment year in which the income was first assessable.