Tax Return Penalty Calculator for Bangladesh
Works out the penalty for filing a tax return late by comparing the fixed fine with the monthly charge on the tax due and taking the larger one.
Recent
Formula
How the calculation works
Enter the tax you still owe for the year, which is the amount the monthly charge is calculated on rather than your total income.
Enter the percentage per month your tax authority applies and the number of whole months you are late.
The tool works out the monthly charge and the fixed fine, then returns the larger of the two, flagging when the fixed fine is the one that applies.
Common mistakes
- Calculating the charge on your gross income instead of the tax still due, which makes the penalty look far larger than it is.
- Forgetting that some penalties also carry interest, since the monthly charge and the interest on unpaid tax can both apply together.
When to use it
- Use it as soon as you know you will miss the return date, so you can set aside the penalty before the notice arrives.
- Use it to decide whether to file now or wait, since every extra month usually adds to the charge on the unpaid tax.
Worked example
With tax due of 20000 Taka, a 2 percent monthly charge and 5 months late, the monthly penalty is 2000 Taka, which is less than a 3000 Taka fixed fine, so the penalty is 3000 Taka.
Common questions
Is the penalty calculated on income or on tax?
It is calculated on the tax that remains unpaid, so if you have already paid part of the tax the base is smaller and the penalty is lower.
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