Imagine this, you’ve recently opened your mailbox or email and found a notice from the National Board of Revenue (NBR). And your heart probably skipped a beat. I know the feeling well as I belong to this field. Most of my clients call me in panic the very moment they receive one. The first thought that comes to mind is, “Did I do something wrong? Am I in trouble?”
Let me start by reassuring you: a notice from the NBR does not always mean you’ve broken the law or cheated on taxes. More often than not, it’s simply a request for clarification, an adjustment, or part of a routine audit. Over the years, I’ve helped many taxpayers, whether they are business owners, salaried professionals, or even freelancers. All you need to do is handle these notices calmly and confidently. In this blog, I’ll walk you through exactly what you should do if you’ve received a notice from the NBR.
Understanding the NBR Notice
Before reacting, it’s important to understand what an NBR notice really means. The NBR issues notices for different reasons, but the goal is usually the same: ensuring your tax records are accurate and up-to-date.
Common types of notices include:
- Demand notices: These are sent when NBR believes you may have underpaid taxes and they request you to clear the additional amount owed.
- Document requests: Sometimes, NBR asks you to submit supporting paperwork such as receipts, invoices, or bank statements to verify the accuracy of your declared tax information.
- Audit initiation: This notice informs you that your tax return has been selected for a detailed review or audit to confirm compliance with NBR regulations.
- Penalty warnings: Issued when there are filing delays, data mismatches, or calculation errors. These notices serve as warnings and reminders to correct issues promptly.
One of the biggest misconceptions I’ve seen is that every notice means you’re guilty. That’s simply not true. Many of my clients were randomly selected for audit or just needed to submit one missing document to close the case.
First Steps After Receiving a Notice from the NBR
So, what should you do if you’ve received that letter or email?
- Stay calm and read carefully: Don’t jump to conclusions. Go through the notice line by line to understand what it’s asking for.
- Verify authenticity: In Bangladesh, scams and fake letters do circulate and the disappointing thing is that they look like genuine ones. Real NBR notices come with reference numbers and official seals. If you’re unsure, you can verify through the NBR website or by calling their office.
- Check deadlines: Every notice has a response timeline. Missing it can cause bigger headaches or even penalties. Mark it on your calendar immediately.
Remember: The way you handle the first 24 hours after receiving a notice makes all the difference.
Why Did You Receive This Notice?
There are several reasons why you might receive a notice from the NBR and knowing them helps reduce fear. Some common ones include:
- Errors in your tax return – Small mistakes like typos, miscalculations, or entering wrong figures in your tax return can trigger NBR to issue a notice.
- Income vs. expense mismatch – If your reported income doesn’t align with bank records, business expenses, or visible lifestyle spending, NBR may question discrepancies through a notice.
- Missing documentation – Forgetting to attach essential papers such as receipts, property documents, or TDS certificates often prompts NBR to request clarification via an official notice.
- Random audit selection – Sometimes taxpayers are chosen randomly for review under NBR’s compliance checks. This means it’s procedural and not necessarily linked to any wrongdoing.
- Delayed payments – Filing taxes late or failing to pay dues on time usually generates automated notices with penalties, interest, or requests for immediate settlement.
You might be a small business owner who received a notice because your declared income didn’t match the VAT records from your suppliers. It wasn’t fraud; just an accounting oversight that you can resolve quickly with supporting documents.
| Don’t get afraid! The National Board of Revenue (NBR) has selected 15,494 income tax returns for audit for the 2023-24 tax year through a random selection method, as part of efforts to curb tax evasion. |
How to Respond Strategically
Now that you know why you got the notice, the next step is responding the right way.
Here’s my tried-and-tested approach:
- Gather all relevant documents. This includes tax returns, receipts, contracts, and bank statements.
- Review past filings. Double-check for mistakes or inconsistencies that could have triggered the notice.
- Draft a clear response. Keep it professional, respectful, and factual. Avoid unnecessary explanations; stick to the point.
- Submit before the deadline. Whether it’s online or at the tax office, don’t delay your response.
Do’s and Don’ts:
| Do’s | Dont’s |
| Keep photocopies or scanned versions of everything you submit | Don’t ignore it. Silence is the worst response |
| Consult a tax professional if the notice is complex | Don’t get emotional or defensive in your reply |
When to Hire a Tax Professional
In my experience, not every notice requires professional help. But some cases definitely do.
You should consider hiring an expert if:
- The notice involves multiple years of tax returns.
- A large amount of money or penalties is mentioned.
- There’s a threat of audit or legal proceedings.
I once had a client who tried handling a complex notice on his own. He misunderstood the requirements and missed the deadline. By the time he came to me, his case had escalated. We still managed to resolve it, but it took more time and cost him more money. Having a professional from the start could have saved him the stress.
What Happens If You Ignore an NBR Notice?
I cannot stress this enough: ignoring an NBR notice is the biggest mistake you can make.
If you fail to respond, the consequences may include:
- Financial penalties and interest charges that keep piling up.
- Frozen bank accounts or withheld refunds.
- Audit escalation or legal complications.
| Think of it this way: a notice is like an invitation to fix something before it becomes a problem. Ignoring it only turns a small issue into a bigger one. |
Proactive Tips to Avoid Future Notices
Wouldn’t it be better to prevent notices altogether? Based on my years of practice, here are some tips:
- File your taxes on time and accurately. Don’t rush at the last minute.
- Keep proper records including invoices, receipts, and contracts neatly organized.
- Cross-check financial data with banks, suppliers, and clients before filing.
- Consult a tax advisor annually even if you think your taxes are simple.
- Use digital filing platforms to reduce calculation errors.
Most of the notices I’ve seen could have been avoided with just a bit of extra care.
How Working with an Expert Reduces Stress
I’m Md. Rifat Mahmud. A professional tax lawyer in Bangladesh. When clients hire me to handle their tax notices, whether it’s income tax, business tax, property tax, or real estate tax, the first thing I notice is their relief. Suddenly, they don’t have to lose sleep over what might happen.
A professional not only drafts the right response but also anticipates what the NBR might ask next. We look at the bigger picture that prevents future issues, keeping records audit-ready, and ensuring compliance year after year. As one of my clients once told me: “The notice used to feel like a nightmare, but now it’s just another letter I forward to you.” That peace of mind is priceless.
Final Verdict
To wrap up, let me repeat the key message: receiving a notice from the NBR is not the end of the world. It’s a situation that can be managed with the right steps, calm thinking, and sometimes a little professional help. So, the next time you or someone you know receive a notice from the NBR, don’t panic. Read the letter or mail carefully, understand why it was issued, prepare your documents, and respond on time. And if things feel overwhelming, know that you don’t have to face it alone.
If you’ve received a notice from the NBR and want expert guidance, I’d be happy to help you handle it smoothly and stress-free. Reach out today, and let’s turn that stressful letter into a simple solved problem.