Now you are ready to file your tax return

Today Abdul Karim is happy because he is going to complete the tax return form and he will be ready to submit it to the tax circle.

In the fourth step, he discovered his net wealth to be Tk 53.30 lakh. Last year, the amount was Tk 50.20 lakh that he found from the previous year's tax return form. He writes it in serial 12 of the assets and liabilities statement.

The accretion of wealth is Tk 310,000 and he writes the amount in serial 13. Then he will provide his source of funds in serial 16.

He writes shown return income of Tk 810,000 and tax exempted amount of Tk 390,000 which he found out while completing the second step of the income tax return. So, the total amount received during the year was Tk 12 lakh.

Karim's wealth accretion was Tk 310,000 and the rest of the amount of Tk 890,000 was incurred family expenses.  His fund inflows and outflows are the same. There is no difference in serial 17.

It is wise to find out the increase in wealth first and then put the rest as personal and family expenditure. Karim follows this process because it is easy to balance the fund.

Taxpayers should keep a photocopy of the full set of their tax returns. The copy will help fill out the form next year. It will also help taxpayers if their tax file is selected for audit

The last page consists of instructions to fill up the form and the acknowledgement receipt of the income tax return.

First, he reads the instructions and the enclosures. He writes his name, the assessment year and the TIN and also put in the signature.

He writes Tk 810,000 as the total income shown in return and Tk 27,200 as tax paid which he got from serial 08 of the first page of the tax return form.

Now he will provide the gross wealth Tk 54.05 lakh and the net wealth Tk 53.30. He got both amounts from the fourth step.

So, all is done and he is ready to submit the tax return to the tax circle. But before that, he will deposit Tk 3,200 that shall be paid with return.

Karim's net tax payable amount was Tk 27,200 and Tk 24,000 was deducted by his company during transferring the salary to his bank account. So, the remaining Tk 3,200 has to be paid now.

He will go to the bank for challan and then he will make a photocopy of the full set of the tax return. This copy will not only help fill out the next year's tax return. It will also help him any time his tax file is selected for audit.

The tax office will receive the tax return and will give him the acknowledgment receipt with a seal of the tax office and the signature by the taxman.

This acknowledgement can be shown anywhere if required. According to tax law, there is no requirement to obtain the tax clearance certificate. So, he will not collect this certificate.

The author is lead consultant of Taxpert, an online tax training centre.