With the deadline for submitting income tax returns set to expire on 31 March, around 62.5 per cent of Taxpayer Identification Number (TIN) holders have yet to file their returns.
Such a large number of non-submissions has prompted the National Board of Revenue (NBR) to adopt stricter enforcement measures.
According to NBR data, more than 1.20 crore individuals currently hold TINs, but only about 45 lakh have submitted their returns so far. Of these, approximately 41.5 lakh filed online, while around 3.5 lakh used offline methods. This leaves over 75 lakh TIN holders — a significant majority — still outside the tax net in terms of return submission.
In a bid to curb tax evasion and improve compliance, the NBR is set to issue notices to non-filers at their registered addresses. If recipients fail to respond within the stipulated time, tax officials may proceed with unilateral assessments and send tax demands accordingly, NBR officials said.
The revenue authority has already instructed field-level offices to intensify enforcement. The move comes after four extensions failed to bring return submissions to a satisfactory level.
NBR Member (Tax Policy) Muttasim Billah Faruqui said they have no option but to act against the non-submission. “We have legal provisions to act against non-submission and non-compliance. We can even proceed with unilateral assessments and impose tax demands. We are moving in that direction,” he told TIMES of Bangladesh.
Field officials, however, pointed out that a lack of manpower and logistical support could hinder large-scale enforcement against such a vast number of non-filers. They added that a typical tax circle may have around 20,000 TIN holders, of whom only about 8,000 submit returns. Taking action against the remaining 12,000 with just 10 to 12 officials is a daunting task.
Faruqui also acknowledged the capacity constraints, saying enforcement would be carried out gradually and that government support would be essential to strengthen manpower and resources.
Meanwhile, the NBR is working to refine its database, as a portion of non-filers includes deceased individuals or those without taxable income. Officials said efforts are underway to identify and remove such cases from the TIN holders list.
An NBR official, requesting anonymity, said many individuals obtained TINs due to various compliance requirements despite having no taxable income, while others remain listed despite being deceased — contributing to the inflated number of non-filers.
Field officials have already begun issuing notices, and responses received are being reviewed. Unsatisfactory replies may lead to further action. Unless the deadline is extended again, taxpayers who fail to submit returns by March 31 will face penalties under existing tax laws.
The revenue authority is considering a year-round return submission system divided into three categories, said a top official. Under the proposal, early filers would receive incentives, on-time filers would pay the regular rate, and late filers would face graded penalties.
This year, online filing was made mandatory for almost all individual taxpayers, whereas previously it applied only to specific groups.
