Quarterly Filing of Withholding Tax Return: What You Need to Know

In Bangladesh, the Income Tax Act 2023 has introduced specific requirements for filing quarterly withholding tax return. These returns must be submitted to the Deputy Commissioner of Taxes (DCT) using a prescribed format. Understanding the deadlines, responsibilities, and consequences of non-compliance is essential for businesses and institutions that fall under the scope of this law.

What is a Withholding Tax Return?

A withholding tax return is a quarterly summary of all taxes deducted or collected at source over a three-month period. Simply gather the last three months’ TDS records and compile them into the prescribed format.

Who Must File the Withholding Tax Return?

Under Section 177 of the Income Tax Act 2023, the following entities are required to file quarterly withholding tax return:

Government ministries, divisions, departments, and directorates
Any company (excluding educational institutions under MPO)
Firms
Associations of Persons (AoP)
Private hospitals
Clinics
Diagnostic centres

If your organization falls into any of these categories, you are legally obligated to file the return.

Quarterly Deadlines for Filing

As per section 177 of the Income Tax Act 2023, following filing deadlines for each quarter:

July, August, September → 25th October
October, November, December → 25th January
January, February, March → 25th April
April, May, June → 25th July

Note: If the deadline falls on a weekend or public holiday, the return must be submitted on the next working day.

Where to Find the Prescribed Form

The format for the quarterly return is outlined in Rule 13 of the Withholding Tax Rules 2024. It consists of:

Four parts
Two schedules

If any part or schedule is not applicable to your organization, you may skip it.

Tip: Develop the form in an Excel sheet if your organization doesn’t have customized software. This makes it easier to revise and reuse for future filings.

Steps to Prepare the Withholding Tax Return

Here’s a simplified process to help you prepare the quarterly tax return:

Step 1 Collect Monthly TDS deposits: Gather the last three months’ TDS records already deposited to the government treasury.

Step 2 Download or Create the Prescribed Form: Use form from the Withholding Tax Rules 2024 and create an Excel version for ease of use

Step 3 Fill Out the Form: Complete all applicable parts and schedules and attach supporting documents as required.

Step 4 Review and Verify: Double-check for accuracy and completeness and ensure the form is signed and certified as per Section 169(5).

Step 5 Submit to the DCT: File the return within the deadline to avoid penalties.

Legal Consequences of Late Filing

Failure to file the return without reasonable cause can result in significant penalties under Section 266:

Primary Penalty: 10% of the last assessed income or BDT 5,000 — whichever is higher
Additional Penalty: BDT 1,000 for each month or fraction of continued default

Example Calculation

Let’s say ABC Company fails to submit its Q1 return (due 25th October 2025) and files it on 10th December 2025. Its last assessed income is BDT 450,000.

10% of BDT 450,000 = BDT 45,000
Minimum penalty = BDT 5,000
Higher amount = BDT 45,000
Additional penalty = BDT 1,000 × 1.5 months = BDT 1,500

Total Penalty = BDT 45,000 + BDT 1,500 = BDT 46,500

This example shows how penalties can quickly add up, especially for profit-making organizations.

Best Practices to Avoid Penalties

Best Practice 1 Maintain a Tax Calendar: Set reminders for quarterly deadlines.

Best Practice 2 Use Excel or Software: Automate data entry and calculations.

Best Practice 3 Keep Records Organized: Store monthly TDS statements and related documents systematically.

Best Practice 4 Train Your Team: Ensure staff are aware of compliance requirements.

Best Practice 5 Consult a Tax Professional: Get expert help if you’re unsure about any part of the process.

Additional Withholding Tax Statements

Besides the quarterly return, there are other specific statements related to withholding tax that may be required depending on your business activities. Stay updated with the latest rules and consult with a tax advisor for guidance.

Final Thoughts

Filing the quarterly Return of Withholding Tax is not just a regulatory requirement — it’s a critical part of maintaining financial transparency and avoiding hefty penalties. By staying organized, using the prescribed format, and meeting deadlines, you can ensure smooth compliance with Section 177 of the Income Tax Act 2023.

Stay proactive, stay compliant — and save your organization from unnecessary financial stress.