Why salaried taxpayers should prepare for tax filing now

The new tax year 2026-27 began yesterday. Yet many taxpayers wait until the November deadline approaches before preparing their income tax returns. This creates unnecessary pressure as they rush to collect documents, verify income and expenses, confirm tax payments and complete returns accurately. With proper planning, much of this work can be done at the beginning of the tax year. Early preparation reduces stress and may also bring financial benefits.

Tax administration is moving towards digital services, and online filing has made the process easier. At the same time, the Finance Act 2026 has introduced the filing period into four quarters. The message is clear: taxpayers who file early may receive a benefit, while those who delay could face a penalty.

Tap Here to Add The Daily Star As A Trusted Source

Under the proposed system, taxpayers filing between July and September will receive a rebate equal to 5 percent of the tax payable or Tk 25,000, whichever is lower. Those filing between October and December will receive neither a rebate nor a penalty. Returns submitted between January and March will attract a penalty of 2 percent of the tax payable or at least Tk 3,000, whichever is higher. Returns filed between April and June will face a penalty of 5 percent of the tax payable or at least Tk 5,000, whichever is higher.

The policy aims to encourage early filing, reduce pressure on the tax authority and spread the workload across the year. At present, many returns are submitted close to the deadline, creating administrative congestion and technical problems. A quarterly system could make tax administration more efficient.

However, rebates and penalties alone will not create a culture of early filing. The online system must be reliable, secure and easy to use. Taxpayers also need clear guidance and effective support. If tax rules remain complex, many ordinary taxpayers will still struggle. For salaried employees, the best approach is to prepare in advance.

A salary certificate should be collected from the employer, showing salary, allowances, bonuses, taxable benefits and tax deducted at source. Those earning income from bank deposits, savings certificates, Treasury bonds or other investments should also keep the relevant statements and tax records.

Documents supporting rebate-eligible investments, including life insurance, DPS, mutual funds, approved provident funds, shares and savings certificates, should be stored carefully, as claims require proof.

Taxpayers should also maintain realistic records of household expenses, including housing, education, medical costs, transport and other regular spending. Monthly records are more reliable than estimates prepared at year-end and help avoid inconsistencies between income, expenditure and assets.

Bank statements covering the full income year should be reviewed for all accounts. Large deposits, transfers and withdrawals should be supported by documents where necessary. Asset and liability records, including property, vehicles, investments, loans and bank balances, should also be updated regularly rather than left until the filing deadline.

Proof of tax deducted at source should be collected from employers, banks or other institutions. Without it, taxpayers may struggle to claim credit and could even risk paying tax twice on the same income. Taxpayers should also ensure their TIN, mobile number, email address and e-return account details remain accurate and accessible.

Many people still see tax filing as an annual obligation. In reality, it reflects financial transparency and responsible citizenship. As Bangladesh moves towards a more technology-driven, compliance-focused tax system, early preparation will become increasingly valuable. Taxpayers who maintain organised records throughout the year will benefit from available incentives while avoiding unnecessary stress, errors and uncertainty. Successful tax compliance begins long before the filing deadline.

The writer is a financial sector analyst. He can be reached at faysal.aqc@gmail.com