Tax return submission deadline extended by one more month

The National Board of Revenue (NBR) has extended the deadline for individual taxpayers to submit their tax returns by another month, upto 28 February, as tax return submissions were lower than expected.

A notification in this regard was issued today (29 January). This marks the third extension.

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

According to the Income Tax Act, November was the original deadline for submitting tax returns for the 2024–25 income year by individual taxpayers. Although the NBR initially extended the deadline by one month and later by another month, the deadline is being extended again due to the shortfall in expected return submissions.

Under existing provisions, failure to submit returns within the stipulated time may result in interest at the rate of 4% per month on the tax liability, along with a penalty equivalent to 50% of the previous year’s tax or a minimum of Tk1,000. In addition, taxpayers may lose eligibility for investment rebates or exemptions and may face difficulties in obtaining various services.

However, if the NBR extends the deadline, taxpayers who submit their returns within the extended period will not face any interest, penalties, or obstacles in availing lawful tax rebates.

According to NBR data, around 45 lakh tax returns were submitted last year. This year, the number of returns submitted so far—both online and offline—stands at just over 37 lakh.

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