10/09/2025
According to the Income Tax Act 2023, there is no such thing as a âZero Tax Return.â Taxpayers who intentionally conceal income or asset information in their tax returns are being served notices by the Tax Office. A sample of such a notice is attached below.
Discussion:
As per the Income Tax Act 2023, both the first tax return (First Tax Return) and all subsequent tax returns of an individual taxpayer are extremely important. Every year, when filing an income tax return, certain matters must be taken into account.
If, after proper calculation as per the law, tax is applicable, then the taxpayer must pay tax to the government. On the other hand, if no tax is payable after all calculations, then no payment is required.
However, while filing income tax returns, if any of the following matters apply to a taxpayer, they must be disclosed accurately. Concealment or negligence in showing these details is not acceptable. Apart from these, there may be many other details depending on the individual taxpayer, but all relevant information must be shown.
1. Land/Property: If the taxpayer owns any land (agricultural or non-agricultural), house, flat, etc., it must be declared in the tax return. (Some people may argue that showing land/flat will result in paying more tax, so it is better not to show it â this is wrong advice. You must disclose such property in your return.)
(For example, recently, the Tax Office issued a notice to a person after obtaining electricity meter details from the Power Office, as they had failed to declare their flat in the return. This proves that such information cannot be intentionally hidden.)
2. Motor Vehicles: If the taxpayer owns a motor vehicle, it must be disclosed. Details such as purchase price (including registration cost), type of vehicle, and registration number must be mentioned.
3. Bank Accounts: Any bank account (savings or fixed deposit) in the taxpayerâs name must be declared. (All bank accounts must be shown, not just some.) Note: Bank accounts should not be used for transactions on behalf of others. If such transactions are made, proper evidence should be preserved.
4. Bank Loans: If any property has been built or any investment has been made through a bank loan, the loan must be disclosed. Many taxpayers fail to declare land in their return but later take a loan to build on that land. This creates inconsistencies and proves that not declaring the land was a mistake. Hence, providing all accurate details in the first return is crucial.
5. Shares/Debentures/Bonds/Securities/Unit Certificates.
6. Savings Certificates/Deposit Pension Schemes (DPS).
7. Loans Given to Others: If the taxpayer has lent money, the name and NID (National ID) of the borrower must be mentioned.
8. Provident Fund or Other Funds (if any).
9. Jewelry, Furniture, and Electronic Goods: These should be declared with proper quantity/value.
10. Other Assets: For example, if the taxpayer owns livestock such as cows or buffaloes, these must also be disclosed under âOther Assets.â
In summary:
While filing income tax returns, no income, expenditure, liability, or asset information should be concealed. Concealment may cause financial harm to you or your business in the future. Therefore, it is strongly advised to file your Income Tax and VAT Returns properly, and if necessary, consult with a qualified tax advisor.
Thank you.
Chowdhury Md. Ibn Foysol Rigan
MBA, CA-CC, LL. B
Income Tax Practitioner
01625-602513(WhatsApp)
