Tax return submission deadline extended to Feb 28

National Board of Revenue (NBR) has extended the deadline for individual taxpayers to submit their income tax returns by another month, setting the new deadline at February 28, as return submissions remain below expectations.

The decision was announced through a notification issued on Thursday (January 29), marking the third extension of the deadline.

As February 28 falls on a Saturday, taxpayers will be able to submit their returns without penalty until the next working day, March 1, in accordance with the law.

The notification said taxpayers who are unable to file their returns online due to registration-related issues in the e-return system may submit paper returns by February 15. 

This will require prior approval from the concerned Additional or Combined Tax Commissioner, following an application with specific justification submitted to the relevant Excise Commissioner.

Under the Income Tax Act, November was the original deadline for individual taxpayers to submit returns for the 2024–25 income year. Although NBR initially extended the deadline by one month and later by another month, it has opted for a further extension due to the shortfall in expected submissions.

According to existing provisions, failure to submit returns within the stipulated time may result in interest at a rate of 4 percent per month on the outstanding tax liability, along with a penalty equal to 50 percent of the previous year’s tax or a minimum fine of Tk1,000. Late filers may also lose eligibility for investment rebates or exemptions and face difficulties in accessing various services.

However, taxpayers who file their returns within the extended deadline will not be subject to any interest, penalties or restrictions on lawful tax rebates.

NBR data show that around 45 lakh tax returns were submitted last year. This year, just over 37 lakh returns; both online and offline, have been submitted so far.

Meanwhile, NBR Chairman Abdur Rahman Khan said at a press conference on January 25 that 47 lakh individuals have already registered online to submit their tax returns.

SH