As per Section 264 of the Income Tax Act, 2023, it is mandatory to submit proof of submission of return (PSR) in availing various services, at the time of purchases of goods, and in other fields.
Similar to the previous law, the new Income Tax Act maintains the provision of mandatory presentation, verification, or retention of Proof of Submission of Return (PSR) for accessing specific services. Moreover, this requirement has been expanded. Previously, PSR was required in 38 cases, but it has now been increased to 43.
Moreover, it is important to note that in all cases where representation, verification or retention of proof of submission of return is mandatory but if the responsible person fails to fulfill this obligation in this case such responsible person may be liable to an additional penalty of up to Tk. 1,000,000 imposed by the Deputy Commissioner of Taxes.
What will be considered as PSR?
According to Section 264(2) of the Income Tax Act, 2023, Proof of Submission of Return (PSR) will be considered any one of the following documents:
(a) Acknowledgment or return;
(b) A system-generated certificate containing the taxpayer’s name, Tax Identification Number (TIN), and the relevant assessment year.
(c) A certificate issued by the Deputy Commissioner of Taxes (DCT) that furnishes pertinent details such as the taxpayer’s name, TIN, and the applicable assessment year.
Person responsible to check PSR
A question may come PSR obligation lies with whom? As per Section 264(2) of the Income Tax Act, 2023, the persons mentioned in the below table are responsible to check, verify, collect, retain or preserve the proof of submission of income tax returns:
| Serial number | Areas where PSR required to be submitted | Responsible person | When to submit PSR? |
| 1 | Loan exceeding Tk. 20 lakh subject to no taxable income; | 1. Bangladesh Bank; 2. All banks and financial institutions | At the time of application for the loan |
| 2 | Becoming a director or a sponsor shareholder of a company; | 1. RJSC 2. Concerned company | At the time of inclusion as a Director |
| 3 | Obtaining or continuing an import registration certificate or export registration certificate; | Directorate of Import and Export Control | 1. At the time of issuance and renewal of certificates 2. The PSR of the latest tax year should be taken at a certain time every year |
| 4 | Obtaining or renewal of a trade license in the area of a city corporation or paurashava; | 1. City Corporation 2. Municipality | At the time of During the issuance and renewal of trade licenses |
| 5 | Obtaining registration of co-operative society; | Department of Cooperatives | At the time of registration |
| 6 | Obtaining or renewal of license or enlistment as a surveyor of general insurance; | Insurance Development and Regulatory Authority | 1. At the time of enlistment; 2. At the time of license receipt and registration |
| 7 | Obtaining registration, by a resident, of the deed of transfer, baynanama or power of attorney or selling of a land, building or an apartment situated within a city corporation or a paurashava of a district headquarter or cantonment board, where the deed value exceeds Tk. 10 lakh; | Officer responsible for the registration | At the time of registration |
| 8 | Obtaining or maintaining a credit card; | Bank | 1. On receipt of credit card 2. The PSR of the latest tax year should be taken at a certain time every year |
| 9 | Obtaining or continuing the membership of the professional body as a doctor, dentist, lawyer, chartered accountant, cost and management accountant, engineer, architect or surveyor or any other similar profession; | 1. Bangladesh Medical and Dental Council 2. ICAB, Bangladesh 3. ICMAB, Bangladesh 4. The Institution of Engineers 5. Bangladesh Bar Council 6. Other professional organization | 1. At the time of application to receive the certificate 2. The PSR of the latest tax year should be taken at a certain time every year |
| 10 | Obtaining and retaining a license as a Nikah Registrar under the Muslim Marriages and Divorces (Registration) Act. 1974 (LII of 1974); | Directorate of Registration | 1. At the time of application to receive the license 2. The PSR of the latest tax year should be taken at a certain time every year |
| 11 | Obtaining or continuing the membership of any trade or professional body; | All concerned trade bodies or professional organizations | 1. At the time of application to receive the membership 2. The PSR of the latest tax year should be taken at a certain time every year |
| 12 | Obtaining or renewal of a drug license, a fire license, environment clearance certificate, BSTI licenses and clearance; | Directorate General of Drug Administration, Department of Fire Service and Civil Defence, Department of Environment, BSTI | At the time of receiving and renewal of license |
| 13 | Obtaining or continuing commercial and industrial connection of gas in any area and Obtaining or continuing residential connection of gas in city corporation area; | All concerned gas distribution companies | 1. At the time of application to receive the connection 2. The PSR of the latest tax year should be taken at a certain time every year to continue the connection |
| 14 | Obtaining or continuing a survey certificate of any water vessel including launch, steamer, fishing trawler, cargo, coaster and dumb barge etc., plying for hire; | Department of Shipping | 1. At the time of application to receive survey certificate 2. The PSR of the latest tax year should be taken at a certain time every year to continue the certificate |
| 15 | Obtaining the permission or the renewal of permission for the manufacture of bricks by Deputy Commissioner’s office in a district or Directorate of Environment, as the case may be; | 1. Office of the District Commissioner 2. Department of Environment | At the time of getting permission and renewing licenses for brick manufacturing |
| 16 | Obtaining the admission of a child or a dependent in an English medium school providing education under international curriculum or english version of national curriculum, situated in any city corporation, district headquarter or paurashava; | All English medium schools | At the time of admission of child or dependent in school |
| 17 | Obtaining or continuing the connection of electricity in a city corporation or cantonment board; | All electricity supply organization | 1. At the time of application to receive the connection 2. The PSR of the latest tax year should be taken at a certain time every year to continue the connection |
| 18 | Obtaining or continuing the agency or the distributorship of a company; | All companies providing agency or distributorship | 1. At the time of providing agencies or distributorships 2. The PSR of the latest tax year should be taken at a certain time every year to continue agency or distributorship |
| 19 | Obtaining or continuing a license for arms; | Office of the District Commissioner | 1. At the time of receiving the license 2. The PSR of the latest tax year should be taken at a certain time every year to continue the license |
| 20 | Opening a letter of credit for the purpose of import; | Bank | At the time of opening letter of credit for import purpose |
| 21 | Opening postal savings accounts of Tk. exceeding 5 lakhs; | Directorate of Posts | At the time of opening the post office savings account of more than Tk. 5 lakhs |
| 22 | Opening and continuing bank accounts of any sorts with credit balance exceeding Tk. 10 lakhs; | All banks | 1. At the time of opening or continuing bank accounts with a credit balance of more than Tk. 10 lakhs 2. The PSR of the latest tax year should be taken at a certain time every year to continue the bank account |
| 23 | Purchasing savings instruments (Sanchayapatra) of Tk. exceeding 5 lakhs; | National Savings Directorate | At the time of purchase of Sanchaypata of more than Tk. 5 lakhs |
| 24 | Participating in any election in upazilla, paurashava, zilla parishad, city corporation or Jatiya Sangsad; | 1. Election Commission 2. District Administration 1. Upazila Administration | At the time of submission or scrutiny of nomination papers |
| 25 | Participating in a shared economic activities by providing motor vehicle, space, accommodation or any other assets. | Shared Economic Activities Platforms or P2P Platforms | At the time of supply of motor vehicle, space/ space, accommodation or other assets |
| 26 | Receiving any payment which is an income of the payee classifiable under the head “Salaries” by any person employed in the management or administrative function or in any supervisory position in the production function; | Employing person or organization | At the time of payment of salaries |
| 27 | Receiving any payment of which is an income of the payee classifiable under the head “Salaries” by a public servant; | 1. All concerned DDO 2 iBAS ++ | At the time of payment of salaries |
| 28 | Receiving any commission, fee or other sum in relation to money transfer through mobile banking or other electronic means or in relation to the recharge of mobile phone account; | 1. Mobile Financial Services provider 2. Telecom companies | At the time of paying commissions, fees or any other amount of similar nature through transfer of money by mobile banking or electronic medium |
| 29 | Receiving any payment by a resident from a company on account of any advisory or consultancy service, catering service, event management service, supply of manpower or providing security service; | All concerned service providers | At the time of paying for the service received |
| 30 | Receiving any amount from the Government under the MPO if the amount of payment exceeds tk. 16,000 per month; | 1. Responsible bank 2. Head of The Educational Institution | At the time of payment of salaries |
| 31 | Registration or renewal of agency certificate of an insurance company; | Insurance Development and Regulatory Authority | At the time of registration or renewal of the agency certificate |
| 32 | Registration, change of ownership or renewal of fitness of a motor vehicle of any types excluding two and three wheeler; | BRTC | At the time of motor vehicle registration, ownership change or renewal of fitness |
| 33 | Releasing overseas grants to a non-government organisation registered with NGO Affairs Bureau or to a Micro Credit Organisation having licence with Micro Credit Regulatory Authority; | 1. NGO Affairs Bureau 2. Microcredit Regulatory Authority | At the time of releasing foreign grants |
| 34 | Selling of any goods or services by any digital platforms to consumers in Bangladesh. | 1. BTRC 2. Bangladesh Bank | At the time of approval of sale of goods or services using digital platforms; Or at the time of remitting money to an organization abroad |
| 35 | Submitting application for the membership of a club registered under Companies Act 1994 and Societies Registration Act, 1860 | Concerned club | At the time of application to get the membership |
| 36 | Submitting tender documents by a resident for the purpose of supply of goods, execution of a contract or rendering a service; | 1. CPTU 2. All other companies or Organization | At the time of submission of tender documents |
| 37 | Receiving the supply of any goods or service by any company or firm; | 1. All persons defined as Company under Income Tax Act, 2023 2. All firms | At the time of receiving the supply of any type of product or service; |
| 38 | Submitting a bill of entry for import into or export from Bangladesh; | Bank | At the time of submission of the Bill of Entry |
| 39 | Submitting plan for construction of building for the purpose of Obtaining approval from Rajdhani Unnayan Kartripakkha (Rajuk), Chittagong Development Authority (CDA), Khulna Development Authority (KDA) and Rajshahi Development Authority (RDA) or other concerned authority in any city corporation or paurashava; | 1. Rajdhani Unnayan Kartripakkha (RAJUK), 2. Chittagong Development Authority (CDA), 3. Khulna Development Authority (KDA), 4. Rajshahi Development Authority (RDA), 5. Gazipur Development Authority, 6. Cox’s Bazar Development Authority or, 7. Similar authority formed by the government from time to time, or 8. Other concerned authority of City Corporation or Municipality | At the time of submission of building construction design for approval. |
| 40 | Obtaining or continuing a registration, license or enlistment as a vendor of stamps, court fees and cartridge paper or a deed writer; | The District Administrator In case of stamp, court fee and cartridge paper vendor, and District Register in case of registration, license or enlistment as deed write | At the time of doing or continuing registration, license or enlistment |
| 41 | Opening and continuing bank accounts of trusts, funds, foundations, NGOs, microcredit organizations, societies and cooperative societies; | All banks | To open and continue the account |
| 42 | Renting or leasing house property of the owner in the city corporation area by a specified person; | (A) Any company, firm, association of person, trust or fund, (B) Public-Private Partnership, (C) A foreign contractor, foreign enterprise or any association or organization established outside Bangladesh, (D) any hospital, clinic or diagnostic center, (E) any e-commerce platform, not being any other specified persons, called by whatever name having annual turnover exceeding Taka one crore, (F) Hotel, community center and transport agency having annual turnover exceeding Taka one crore, (G) Any person who is not a farmer involved in the production and supply of tobacco leaves, cigarettes, bidi, jorda, gulls and other tobacco products; | At the time of renting or leasing house |
| 43 | Receiving supply of goods or service by a particular person; | (A) Any company, firm, association of person, trust or fund, (B) Public-Private Partnership, (C) A foreign contractor, foreign enterprise or any association or organization established outside Bangladesh, (D) any hospital, clinic or diagnostic center, (E) any e-commerce platform, not being any other specified persons, called by whatever name having annual turnover exceeding Taka one crore, (F) Hotel, community center and transport agency having annual turnover exceeding Taka one crore, (G) Any person who is not a farmer involved in the production and supply of tobacco leaves, cigarettes, bidi, jorda, gulls and other tobacco products; | At the time of receiving delivery of goods or services |
Exemption from submission of PSR – No PSR obligation
The Board may, by general order or special order, exempt any person or entity from the requirement of filling PSR. In such case as a responsible person, you should ask your counterpart to submit such an order.
What do we do if PSR has not been submitted?
If the person or entity is failed to submit PSR then the responsible person should not proceed to the next steps. He should immediately refrain from doing any task. If the responsible opts to proceed without having PSR then the Deputy Commissioner Taxes (DCT) may impose a penalty of Tk. 10 lac on him.
Display of Proof of submission of Return (PSR)
According to section 265 of the Income Tax Act 2023, if the assessee who has income from his business has filed income tax return such taxpayer shall display the proof of submission of return (PSR) at a place in his business premises that is easily visible.
If any taxpayer fails to comply with the above-mentioned provision, the Deputy Commissioner of Taxes (DCT) may impose a penalty of no less than 5,000 Taka and up to 20,000 Taka on such assessee.
Conclusion
In order to meet PSR Obligation, the person in charge of checking the PSR must do so carefully. If case of any failure, the responsible person could face a penalty of Tk. 10 lakh. Also, the necessary display must be in a visible spot to prevent any fines under section 265 of Income Tax Act 2023.
PSR Obligation – Reference/ Source:
- Section 264 of Income Tax Act 2023;
- National Board of Revenue(NBR)
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