Written by Md Rakib Hassan — Income Tax Practitioner with 10+ years of tax compliance and audit experience across Bangladesh and the UK. Former accounts manager at a UK chartered accounting firm managing 1,000+ clients, with direct experience resolving multi-year tax audit disputes with HMRC and the NBR. Currently Finance Controller at a UK-based multinational tech group.
One of the most practical — yet most misunderstood — parts of tax compliance in Bangladesh is the treasury challan code. Every time your company deposits income tax, VAT, customs duty, or any government revenue, you need to use the right NBR treasury challan code. Use the wrong one, and your payment may be misposted, or worse, your compliance records may show a gap during an audit.
This guide explains what treasury challan codes are, how the new economic code system works, and lists the key codes you will use most often in practice.
What Is a Treasury Challan?
A treasury challan is the official government receipt document used when depositing money into the government exchequer in Bangladesh. It records the nature of the payment, the depositor’s details, and — most importantly — the economic code that tells the government treasury which head of revenue this payment belongs to.
The NBR treasury challan code system was updated as part of the government’s move to the iBAS++ (Integrated Budget and Accounting System) platform under the Ministry of Finance. This system uses a new set of 7-digit economic codes to replace the older 4-digit codes.
For tax practitioners and finance teams, using the correct NBR treasury challan code is essential. An incorrect code means the payment goes to the wrong revenue head, which can trigger queries during audit and cause disputes with the tax or VAT authority.
Old vs. New Challan Code System
Bangladesh made a significant shift in its government accounting system with the introduction of iBAS++. The old codes (e.g., 0101, 0111, 0311) have been replaced or mapped to new 7-digit codes.
| Description | Old Code | New Economic Code |
|---|---|---|
| Income tax payable by companies | 0101/0109 | 1112101 |
| Income tax payable by individuals | 0111/0119/0199 | 1111101 |
| VAT on domestic products and services | 0311/0391/0399 | 1141101 |
| VAT on imported goods | 0301/0397 | 1141104 |
| Customs duty | 0401–0499 | 1151101 |
| Supplementary duty on domestic commodities | 0711/0799 | 1141102 |
| Supplementary duty on domestic services | 0721 | 1141103 |
| Supplementary duty (imports) | — | 1151102 |
| Excise duty | 0697 | 1142199 |
| Travel tax | 0911/0931 | 1144102 |
| Turnover tax | 0313/0321 | 1141301 |
| Advertising tax | 0901 | 1144101 |
| Stamp duty | 1301/1321 | 1162101 |
| Land development tax | 1211/1271 | 1131101 |
| Document registration fee | 1826 | 1422201 |
| Court fee | 1811 | 1422323 |
| Passport fee | 1846 | 1422311 |
| Renewal fee | — | 1422335 |
Note: The old codes remain in the system for cross-reference purposes, but the new 7-digit codes must be used for iBAS++ challan deposits. Many banks and online portals now require the new code format.
Most Commonly Used NBR Treasury Challan Codes
For day-to-day compliance work, here are the codes you will encounter most frequently:
Income Tax Codes
1112101 — Income tax payable by companies Use this when your company is depositing advance tax, self-assessed tax, or paying arrears. This is the most frequently used code by corporate finance teams.
1111101 — Income tax payable by individuals Used for individual taxpayers including proprietors, partners, and salaried individuals paying tax directly.
VAT Codes
1141101 — VAT on domestic products and services This is the primary VAT deposit code for locally supplied goods and services.
1141104 — VAT on imported commodities Used at the import stage when VAT is payable along with customs duty.
Customs and Duty Codes
1151101 — Customs duty Used when customs duty is paid on imported goods.
1151102 — Supplementary duty (imports) Applicable where supplementary duty is charged on imports alongside customs duty.
1141102 — Supplementary duty on domestic goods 1141103 — Supplementary duty on domestic services
Other Commonly Used Codes
1162101 — Stamp duty Relevant for property transfers, agreements, and other stamp-dutiable documents.
1131101 — Land development tax Used when paying land development tax (LDT) to the relevant authority.
1162203 — Health development surcharge 1162201 — Development surcharge
How to Deposit Tax Using Treasury Challan in Bangladesh
There are currently three ways to deposit government revenue in Bangladesh:
1. Manual Treasury Challan (Paper-Based)
The traditional method. You fill in a challan form (available from the tax/VAT office or bank), write the economic code, and deposit at an authorised bank — primarily Sonali Bank Ltd. branches or Bangladesh Bank.
Steps:
- Obtain the challan form from the tax circle or bank
- Fill in your TIN, BIN (for VAT), the economic code, the amount, and assessment year
- Submit with payment at the bank counter
- Keep the bank-stamped copy for your records
2. Online Challan via iBAS++
The government has moved towards online challan generation through the iBAS++ portal. This generates a challan number that can be verified online, reducing the risk of fraud or misposting.
3. e-Challan / Pay Order / Bank Draft
Tax can also be deposited through a crossed cheque, pay order, or bank draft in favour of the Deputy Commissioner of Taxes (DCT) of the relevant tax circle. Make sure to mention the TIN, the assessment year, and the purpose on the instrument.
Practical tip: Always double-check the economic code before submission. Once a challan is deposited with the wrong code, correcting it requires a formal application to the relevant tax/VAT authority and can delay your compliance timeline.
Treasury Challan Codes for Specific Government Receipts
Beyond income tax and VAT, you may encounter these codes in practice:
| Description | New Code |
|---|---|
| Fines | 1431101 |
| Dividends from financial institutions (cash) | 1412201 |
| Dividends from non-financial institutions (cash) | 1412203 |
| Tolls on bridges | 1421303 |
| Water and sewerage charges | 1422404 |
| Security services charge | 1423206 |
| Electricity charge | 1422404 |
| Examination fee | 1422326 |
| Admission fee | 1423201 |
| Marriage registration fee | 1422205 |
| Tuition fee | 1422307 |
| National ID card fee | 1422302 |
| Survey fee | 1422318 |
Why Getting the Code Right Matters During Audit
In my experience handling tax audits both at the NBR and HMRC level, one of the most common compliance gaps found during field audits in Bangladesh is misposted treasury challans. A company may have genuinely paid its tax on time, but if the challan shows the wrong economic code, the tax circle’s records will not reflect the payment correctly.
This creates two practical problems:
First, during a tax audit, the DCT (Deputy Commissioner of Taxes) may issue a demand notice for the unpaid tax — even though you have paid. You will then need to produce the original challan and get a correction processed, which takes time and resources.
Second, for VAT purposes, the VAT commissioner’s office tracks payments by BIN and economic code. A wrong code means your VAT account does not show the payment, which can affect your input tax credit claims or trigger penalty proceedings.
The NBR treasury challan code is a small detail, but it carries significant compliance weight.
Frequently Asked Questions
Q: Can I use the old 4-digit challan codes? Some older bank systems still accept old codes, but iBAS++ and most updated bank portals now require new 7-digit codes. When in doubt, use the new code — it will always be accepted.
Q: What if I deposited tax under the wrong economic code? You need to write a correction application to the relevant DCT or VAT commissioner. Attach the original challan as evidence and request a re-allocation to the correct head. The process is manual and can take several weeks.
Q: Is there a single code for all income taxes? No. There are separate codes for company tax (1112101) and individual tax (1111101). Make sure you use the one that matches your taxpayer category.
Q: Where can I get the full list of updated economic codes? The full code list is available on the iBAS++ portal (ibas.finance.gov.bd) and the National Board of Revenue’s official website (nbr.gov.bd).
Key Takeaway
The NBR treasury challan code system in Bangladesh has moved to a 7-digit economic code format under iBAS++. For most finance and accounting professionals, the codes you will use day-to-day are 1112101 (company income tax), 1111101 (individual income tax), 1141101 (VAT on domestic goods/services), and 1151101 (customs duty). Getting these right saves you time, prevents mispostings, and protects your company from unnecessary audit complications.
In a compliance environment where the NBR is increasingly cross-referencing electronic data, the days of relying on informal or incorrect challan deposits are over. Treat your treasury challan code with the same care you give to your TDS rate.
Disclaimer: This blog is for general informational purposes only. It does not constitute professional tax advice. Always consult a qualified tax practitioner or refer to the official NBR and Ministry of Finance publications for specific guidance.
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