Zero Return vs. Real Return: Risks and Remedies for Taxpayers in Bangladesh

Zero Return vs. Real Return: Risks and Remedies for Taxpayers in Bangladesh

In Bangladesh, the practice of submitting income tax returns is gradually becoming a common part of financial life. The National Board of Revenue (NBR) has made it mandatory for a wide range of individuals and businesses. While this is a positive development, an unhealthy trend has emerged—many taxpayers are filing “Zero Returns” even when they have taxable income or assets. This shortcut may look harmless, but in reality, it often leads to notices, penalties, and even legal complications.

This blog explores the difference between zero return and real return, the risks involved, and the remedies taxpayers in Bangladesh can adopt.

What Is a Zero Return?

A Zero Return is when a taxpayer files their income tax return but shows no income, no assets, and no tax liability. In many cases, this is done:

Out of ignorance about tax rules.

To avoid paying taxes temporarily.

Based on advice from unprofessional consultants or service providers.

In Bangladesh, some computer shops or local service providers prepare these returns for a very low fee, encouraging taxpayers to file without proper reporting.

What Is a Real Return?

A Real Return reflects your actual financial situation. It includes:

Income from salary, business, or profession.

Profit from banks, savings instruments, or investments.

Property, vehicles, and other assets.

Liabilities, expenses, and adjustments.

Filing a real return ensures compliance with NBR and safeguards your financial credibility.

Risks of Filing a Zero Return in Bangladesh

Tax Demand Notices – NBR has access to information from banks, land registries, BRTA (vehicles), and savings certificates. If your assets don’t match your declared return, you may receive a notice.

Penalties and Surcharges – Concealing income can lead to financial penalties, interest, and even additional tax burdens.

Legal Troubles – In severe cases, intentional tax evasion may lead to prosecution.

Credit and Loan Issues – Banks often verify tax returns before approving loans. A zero return weakens your financial credibility.

Loss of Future Benefits – Tax compliance records are now linked to various facilities like tender submissions, trade licenses, and even travel approvals.

Remedies and Best Practices for Taxpayers

✅ Be Transparent – Always declare your actual income, assets, and liabilities.

✅ Consult Professionals – Seek advice from certified tax consultants or chartered accountants rather than unskilled agents.

✅ Maintain Records – Keep documents like bank statements, savings bond certificates, and property deeds organized.

✅ Use the eReturn Portal – The NBR eReturn system makes it easier to declare income and assets correctly.

✅ Plan Tax Payments – Instead of avoiding taxes, use tax rebates, allowable investments, and deductions to reduce your burden legally.

Why Real Return Protects You

Filing a real return is not just a legal requirement but also a form of financial security. It:

Builds your credibility with banks and institutions.

Protects you from unexpected notices and harassment

Helps you contribute to national development responsibly.

In today’s Bangladesh, filing a Zero Return is a risky shortcut that no longer works. With the government’s integrated databases, hidden income and assets are easily traceable. The smart and safe approach is to file a Real Return—honestly declaring your financial information, reducing risks, and ensuring long-term financial security.

👉 Remember: A return is not just a formality—it’s your financial identity in the eyes of the state.