আয়কর নির্দেশিকা

At the end of this article, you’ll find a link to a simple spreadsheet: Tax Calculation Spreadsheet. You can click the link, make a copy of the spreadsheet, enter your income details, and it will help you calculate your tax easily.

Introduction

Income tax is a fundamental source of revenue for the government in Bangladesh. Understanding how to calculate your income tax liability is essential to ensure you meet your financial obligations as a responsible citizen. This article provides a comprehensive guide to help you calculate your income tax for the fiscal year 2025–26, which is from 1st of July 2024 to 30th June 2025 in Bangladesh.

Request Your Salary Statement

You can go ahead and request your salary statement from your HR or finance department in your organization for the current fiscal year. This statement will provide a detailed breakdown of your earnings, much like the example below (please note that the numbers used are for illustration purposes):

• Basic Salary: This is your basic pay throughout the fiscal year, like your base income.
• House Rent Allowance: If you receive this, it’s an amount for your housing expenses.
• Conveyance Allowance: This is for your commuting costs.
• Medical Allowance: This covers your medical expenses.
• Bonuses: These might include performance bonuses, yearly bonuses, or festival bonuses.
• Leave Encashment: If you received money in exchange for unused leave days.
• Over Time Allowance: Any extra payment for overtime work.
• Transportation Allowance: For additional travel costs.
• Advance Income Tax (AIT): If taxes have been deducted at the source.

Tax Calculation Breakdown

Total Earning: You earned a total income of 2,130,000.

1/3 of Total Earning: This is one-third of your total earnings, which equals 710,000.

Maximum Tax-Free Income: According to tax rules, the maximum income that is not subject to tax is 450,000.

Tax-Free Income: Tax-free income is calculated as the lesser of one-third of your total earnings (710,000) and the maximum tax-free income (450,000). In this case, it’s 450,000, as it’s the lower amount.

Taxable Income: Your taxable income is found by subtracting your tax-free income (450,000) from your total earnings (2,130,000). So, your taxable income is 1,680,000.

Tax-Free Slabs by Category

The tax-free slab amount varies by category. Here are the starting amounts for different categories:

• General Man: BDT 350,000
• Women: BDT 400,000
• 65 years or older citizen: BDT 400,000
• Physical or Mental unfit person: BDT 475,000
• Gazetted Freedom Fighter: BDT 500,000
• Third Gender: BDT 475,000

Income Tax Slabs

Think of these as different buckets that categorize your income. Each bucket has a specific tax rate:

• 1st Slab: Income Range: Up to 350,000 BDT, Tax Rate: 0%
• Next 100,000 BDT: Income Range: 350,001 BDT to 450,000 BDT, Tax Rate: 5%
• Next 400,000 BDT: Income Range: 450,001 BDT to 850,000 BDT, Tax Rate: 10%
• Next 500,000 BDT: Income Range: 850,001 BDT to 1,350,000 BDT, Tax Rate: 15%
• Next 500,000 BDT: Income Range: 1,350,001 BDT to 1,850,000 BDT, Tax Rate: 20%
• Next 2,000,000 BDT: Income Range: 1,850,001 BDT to 3,850,000 BDT, Tax Rate: 25%
• Rest Amount (Above 3,850,000 BDT): Tax Rate: 30%

Investments

Here’s a breakdown of your investments and their applicable amounts for tax calculations:

• Shanchay Patra: Maximum eligible for tax rebate: BDT 500,000
• DPS (Deposit Pension Scheme): Maximum eligible for tax rebate: BDT 120,000
• Mutual Fund: Full amount eligible for tax rebate: BDT 40,000
• Treasury Bond: Full amount eligible for tax rebate: BDT 50,000
• Stock: Full amount eligible for the tax rebate: BDT 50,000
• Provident Fund (Employee's Contribution): Full amount eligible for tax rebate: BDT 50,000
• Provident Fund (Employer's Contribution): Full amount eligible for tax rebate: BDT 50,000
• Provident Fund (Net Interest Income, after 27.5% tax): Full amount eligible for tax rebate: BDT 50,000

Rebate Calculation

3% of Taxable Income: This means you get back 3% of your taxable income, which is 50,400 in this case.

Investments’ 15%: If you’ve invested money, you get a rebate of 15% of your total investment, which is 114,000 here.

Advance Income Tax: You’ve already paid 18,000 in Advance Income Tax.

Total Rebate: To find the total rebate, add the lowest rebate (50,400) to the Advance Income Tax (18,000). This equals a total rebate of 68,400.

Net Tax: To find your final tax amount, subtract the total rebate (68,400) from the initial tax (186,000). So, 186,000 – 68,400 equals a net tax of 117,600.

Conclusion

In summary, the income tax calculation we’ve discussed is quite basic and serves as a simple illustration of how it works. To try it out for yourself, you can access the linked spreadsheet. Just make a copy, enter your own income details, and see how the calculation applies to your situation.

Spreadsheet Link: Tax Calculation Spreadsheet

NBR Circular Link: আয়কর পরিপত্র ২০২৪-২০২৫