Roughly speaking, income tax return is a mandatory and formal document submitted annually to tax authorities. It contains income, expenditure, assets, liabilities, amount of tax payment and other tax related details of an assessee. Return is to be submitted at concerned income tax circles as scheduled by NBR for different types, groups and classes of assessees. Return has been mentioned many places of Income Tax Act, 2023 but no definition of return has been provided in section 2 (definition).
Income tax return form is prescribed by government (National Board of Revenue) and printed at government press, filled in manually or subsequently computer-composed by taxpayers. It is known as manual return or paper return. After filling in it is submitted at concerned circles by the assessee himself or through his/her authorised representative. To make submission of return easier NBR decided to introduce electronic system for filing return.
In 2011, NBR undertook Strengthening Governance Management Project to initiate an automated system for tax department. Under this project the Bangladesh Integrated Tax (BITax) system was introduced. Through an international tender a Vietnamese firm FTP Information Systems was entrusted with the task of developing this system and software costing Tk. 51 crore.
As part of that work software for filing online returns and a taxpayer database were also prepared.
This software was launched in 2016. In November 2016, the then Finance Minister Abul Maal Abdul Muhith inaugurated that online system by submitting his return but taxpayers were not much interested to submit return online. The project was completed in 2019 but the Vietnamese company did not hand over the work and left Bangladesh. As a result, opportunity to file online return remained closed for three years after 2019.
However, this software remained somehow active for three years (2016-2019). In 2017-18 fiscal year, about 5,000 taxpayers filed returns online. 5,848 and 7,207 taxpayers availed this opportunity in fiscal years 2018-19 and 2019-20 which were less than 1% of total returns filed. As the 3-year contract with that Vietnamese company expired, opportunity to submit online return came to a close in financial year 2020-21. Public money was spent but taxpayers did not receive any services. Project of Tk. 51 crore turned almost futile. When the software was developed, tax officials were not included in it. At the initiative of NBR, e-return portal has been developed by Synesis IT which is now functioning.
In 2024-25 financial year, NBR made online return submission mandatory for (a) government officials having their tax files in Dhaka (both), Narayanganj and Gazipur City Corporations, (b) officials/employees of all scheduled banks, (c) officials/employees of all mobile phone service providing companies and (d) officials/employees of some multi-national companies. In current 2025-26 financial year, online return submission has been made mandatory for all taxpayers except (a) 65+ taxpayers, (b) physically disabled taxpayers (subject to production of certificate), (c) Bangladeshi taxpayers residing abroad and (d) legal representatives of deceased taxpayers. However, these classes of taxpayers can also submit online return if they think fit.
During current financial year, around 34 lakhs returns in total have been submitted upto January, 2026 (The Prothom Alo English, 29-01-2026). Out of these around 31,88,000 are online returns (almost 45 lakhs registered on e-return platform upto 30 December, 2025). In comparison to total number of TIN holders (reportedly 1.2 crores) this number is not at all encouraging not only in number but also in terms of tax payment. In a seminar, recently former financial advisor has said that 70% taxpayers have shown zero income in their online returns (Banik Barta 10-02-2026). As the head of finance ministry has said it there is no reason to ignore it. He called it a major anomaly in tax system and an urgent signal for reform.
This trend raises questions about effectiveness of digital system. Despite the introduction of digital return submission system, a huge number of taxpayers are reporting zero income which is a warning sign for tax collection system. These persons are voluntarily filing zero returns which is believed to have a negative impact on tax system and transparency. This large amount of zero return filing is certainly a tax evasion trend, a major challenge in tax collection and identification of genuine taxable persons.
In a press release issued on 10th August, 2025, National Board of Revenue (NBR) notified that being influenced by false publicity in social media some taxpayers are providing inaccurate information regarding income, expenditure, assets and liabilities in their returns. There is no provision of zero return in Income Tax Act, 2023. A taxpayer has to show his/her actual income, expenditure, assets and liabilities in return. Showing zero in any one or all the fields is totally unlawful and a criminal offence. There is provision of imprisonment upto five years for providing inaccurate information. This press release was very much necessary but reality shows that it has turned almost ineffective. By mistake or due to misconception or deliberately 70% (i.e. 22,31,600) of total e-return filers have shown zero income. Whatever be the reason, government has not received a single penny from these 22,31,600 assessees. A taxpayer having below taxable income (normally Tk. 3,50,000/- or 4,00,000/-) can submit zero return but necessary catchments in e-return form are to be filled in. At present, PSR (proof of submission of return) is required for availing 39 services form government or other statutory authorities. Many people submit zero return simply for an acknowledgement slip to avail those services.
As notified by NBR, attaching supporting evidence is not necessary for submitting online return. There is no scope to verify online returns instantly. Experts think that these advantages have been widely abused for submitting zero return. Any online system is based on machine. But if man behind the machine is not good, the system must fall flat and that has happened.
The writer is a former Commissioner of Taxes
