Income tax in Bangladesh is the tax on the income of the taxpayer. Tax under the Income-tax Ordinance 1984 means income tax payable under the ordinance, additional tax, surplus tax, fine, interest, or recoverable amount. In other words, income tax is a compulsory amount paid to the government to meet the expenses of the state in the interest of all the people of the state.
Except few exceptional, if any person has E-TIN then he must submit tax return.
If the taxable income does not exceed the minimum income threshold (for any male BDT 3 lakh & for any female BDT 3.50 lakh), then he is eligible to submit the zero-income tax return.
For any male, the income tax rate in Bangladesh
For any third gender or female or above 65 years of age the income tax rate in Bangladesh
| Total Income | Tax Rate |
|---|---|
| For the first 3,00,000 BDT of total income | 0% |
| For the next 1,00,000 BDT of total income | 5% |
| For the next 3,00,000 BDT of total income | 10% |
| For the next 4,00,000 BDT of total income | 15% |
| For the next 5,00,000 BDT of total income | 20% |
| On the remaining total income | 25% |
| Total Income | Tax Rate |
|---|---|
| For the first 3,50,000 BDT of total income | 0% |
| For the next 1,00,000 BDT of total income | 5% |
| For the next 3,00,000 BDT of total income | 10% |
| For the next 4,00,000 BDT of total income | 15% |
| For the next 5,00,000 BDT of total income | 20% |
| On the remaining total income | 25% |
Those whose income exceeds the minimum taxable income (males above 3 lakh BDT and females above 3.5 lakh BDT) will pay income tax.
According to the Income Tax Ordinance 1984, the sources of income are as follows: 1. Salaries 2. Interest on securities 3. House property income 4. Agricultural income 5. Business or profession income 6. Capital gains 7. Income from other sources
When the taxable income exceeds the tax-free limit, the taxpayer has to pay tax based on area of residing by the taxpayer. The minimum tax amount is BDT 5,000 for Dhaka and Chittagong city corporation areas, BDT 4,000 for other city corporation areas, and BDT 3,000 for other areas outside the city corporation.
E-TIN stands for Electronic Tax Identification Number.
To get your E-tin, please visit the incometax.gov.bd
The tax deducted from the income before making the payment is Tax Deducted at Source.
Taxpayer requires to pay tax on his taxable income which is calculated by deducting exemptions as per tax rules from total income earned during the year. If such taxable income exceeds the tax-free limit then he shall liable to pay tax.
For individual taxpayers, income tax returns must be submitted from 1st July to 30th November every year
You have to submit the income tax return in the respective tax circle mentioned in your E-TIN.
If the return is not submitted, the tax circle will first issue a notice identifying the defaulting taxpayer. Besides, taxpayers will be charged 10% of the latest tax paid or BDT 1,000 whichever is higher. In addition, BDT 50 per day will be imposed for not submitting the return. However, a taxpayer whose income has never been taxed before will be charged penalty not be more than five thousand BDT
You can prepare your income tax return in the 'Single-Page' tax return form if the following conditions matched provided by the NBR apply to you. 1. You have a total taxable income of less than 4 lakh BDT. 2. Your gross wealth is less than 40 lakh BDT. 3. You don't have any motor car (jeep or microbus) in your name. 4. You don't own/invest in any house property or apartment in any city corporation area.
