Mistakes in Income Tax Returns That Can Lead to Trouble

Bangla Press Desk: Taxpayers may face significant difficulties if they provide incorrect information, conceal details regarding their income or assets, or fail to file their income tax returns by the stipulated deadline. Such actions can lead to additional taxes, financial penalties, and the risk of an audit. Consequently, experts advise taxpayers to thoroughly verify all information concerning their income, expenditures, assets, and investments before filing their returns.
According to the budget proposal for the 2026-27 fiscal year, a tiered system has been introduced for filing income tax returns across different quarters of the fiscal year. Under this proposal, taxpayers who file their returns between July and September will be eligible for a tax reduction—either 5% of the total tax payable or 25,000 BDT, whichever is lower.
No incentives are provided for returns filed between October and December. For returns filed between January and March, taxpayers will be required to pay an additional amount—either 2% of the tax payable or 3,000 BDT, whichever is higher. For returns filed between April and June, an additional amount—either 5% of the tax payable or 5,000 BDT, whichever is higher—will be charged. These provisions will come into effect once enacted into law.
Meanwhile, the proposed tax structure for the new fiscal year includes a realignment of tax rates. It suggests eliminating the 5% tax bracket that previously applied to the first 100,000 BDT of taxable income above the tax-free threshold. For subsequent levels of taxable income, the proposal introduces tax rates of 10%, 15%, 20%, 25%, and 30%.
Many taxpayers, lacking a sufficient understanding of income tax laws, rely on computer centers or photocopy shops to prepare their returns. This often leads to errors in the reporting of income, assets, or investments. Concealing income—such as earnings from house rent, business activities, or other sources—failing to provide an accurate account of assets, or claiming tax exemptions without supporting documentation are considered serious errors.
If there are discrepancies between the information provided in a tax return and the supporting documentation, a taxpayer may face scrutiny or an audit by the tax authorities. Should the provision of incorrect information be established, the taxpayer could face additional taxes, financial penalties, or even legal action, depending on the circumstances. Therefore, before filing a tax return, it is essential to verify your income calculations, details of assets, investment documents, and information regarding tax payments. Seeking assistance from an experienced tax consultant—if necessary—and filing your return on time can help you avoid unwanted complications. Source: Teacher Portal (Shikkhok Batayon)
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