## Personal Income Tax Rate:

Existing tax step
Existing Tax rate
Up to Tk 3 Lac
0%
On next Tk. 1 Lac
5%
On next Tk. 3 Lac
10%
On next Tk. 4 Lac
15%
On next Tk. 5 Lac
20%
On next Tk. 5 Lac
20%
The rest of the money
25%

## Area of Tax rebate Bangladesh:

There is total 22 sector where you can invest for tax rebate.

Stock, Mutual Fund & Debenture
Treasury bond investment
Government Provident Fund
Government Saving Certificate
Deposit Pension Scheme (DPS)

## Tax Calculation Table:

Taxable income
Payable Tax
Taxable Invest.
% of Tax Rebate
Tax Rebate
Net Tax
Savings
500,000
15,000
125,000
15%
18,750
5,000
66.67%
1,000,000
80,000
250,000
15%
37,500
42,500
46.88%
1,500,000
175,000
375,000
15%
56,250
1,18,750
32.14%
1,550,000
185,000
387,500
10%
38,750
1,46,250
20.95%
2000,000
295,000
500,000
10%
50,000
2,45,000
16.95%
3000,000
545,000
750,000
10%
75,000
4,70,000
13.76%
4000,000
795,000
10,00,000
10%
100,000
6,95,000
12.58%
50,00,000
10,45,000
12,50,000
10%
125,000
9,20,000
11.96%

#### Example:

Suppose you earned Tk 10 lakh from July 2021 to June 2022. According to the tax policy you do not have to pay tax for the first three lakh of your taxable income. So, you have Tk 7 lakh that you will have to pay tax for. Now for the first Tk1 lakh you have to pay at a rate of 5%, which comes to Tk 5,000. For the next three lakh you pay at the rate of 10%, which comes to 30,000.

Finally, you Tk 45,000, at the rate of 15%, for the last three lakhs. So, your total tax payable is Tk 80,000.
Now, suppose you decide to invest Tk 2.5 lakh in Bangladesh capital market, since 25% of your total income can be invested in savings. And your income is also within Tk 15 lakh. Therefore, you will get 15% concession on the Tk 2.5 lakh invested, or Tk 37,500. Since your taxable income is Tk 80,000, you only have to pay Tk 42,500.