A.

INDIVIDUAL TAX MATTER

Salary includes (a) any pay or wages;
(b) any annuity, pension or gratuity;
(c) any fees, commissions, allowances, perquisites or profits in lieu of, or in addition
to, salary or wages;
(d) any advance of salary;
(e) any leave encashment;
Perquisite means(i) any payment in the form of cash or in any other form excluding basic salary, festival
bonus, incentive bonus not exceeding ten percent of disclosed profit of relevant income
year, and
(ii) any benefit whether convertible into money or not other than contribution to a
recognized provident fund (RPF), approved pension fund (APF), approved gratuity fund (AGF)
and approved superannuation fund (ASF).;
Deduction at source from salaries.The person responsible for making any payment shall deduct tax on the payable amount at
an average rate applicable on the estimated total income. The threshold is
Income
On first BDT. 250,000
On next BDT. 400,000
On next BDT. 500,000
On next BDT. 600,000
On next BDT. 3,000,000
Rest of the amount
Threshold limit
For women and senior citizen (65 years above) is BDT 300,000;
For disabled person BDT. 375,000; and
For gazetted war wounded freedom fighter BDT. 425,000;
Minimum tax
BDT 5,000 for Dhaka and Chittagong City Corporation Area;
BDT 4,000 for other City Corporation Areas; and
BDT 3,000 for all other areas.

Rate of TDS
Nil
10%
15%
20%
25%
30%

The surcharge shall be imposed if the assessee have net asset shown more that Tk. 2.25
crores in the return submitted. The basis is
Income
If net wealth does not exceed BDT 2.25 crore
If net wealth exceeds BDT 2.25 crore but does not exceeds but

Rate of TDS
Nil [previously BDT 2
crore]
10% of tax [Minimum

BDT 10 crore
If net wealth exceeds BDT 10 crore but does not exceeds but

BDT 3,000]
15%

BDT 20 crore
If net wealth exceeds BDT 20 crore but does not exceeds but

20%

BDT 30 crore
If net wealth exceeds BDT 30 crore

25%

TAX RATES APPLICABLE FOR OWNERS OF MOTOR CAR AND JEEP

Tax payable at the time of registration or renewal of fitness certificate for motor vehicles is:
Type of Vehicle
Up to 1500 CC for each motor car or Jeep
Up to 2000 CC for each motor car or Jeep
Up to 2500 CC for each motor car or Jeep
Up to 3000 CC for each motor car or Jeep
Up to 3500 CC for each motor car or Jeep
More than 3500 CC for each motor car or Jeep
Micro-bus each

Tax Payable (BDT)

15,000
30,000
50,000
75,000
100,000
125,000
20,000

However, if any assesse owns more than one motor vehicle self or jointly, then registration
cost will be 50% higher for every subsequent registration. This shall be treated as advance
payment of tax of the assesse.
REDUCED RATES OF CORPORATE TAX APPLICABLE TO CERTAIN INDUSTRIAL
COMPANIES
REQUIREMENT OF TWELVE (12) DIGIT TAXPAYER'S IDENTIFICATION NUMBER (E-TIN)
being a parent or guardian of a student of english medium school,situated in any city
corporation or any paurasabha of a district headquarter,following international curriculum.

Penalty for failure to file return

Amounting to ten per cent (10%) of tax imposed on last assessed income subject to a
minimum of taka one thousand, and in the case of a continuing default a further penalty of
taka fifty for every day during which the default continues but such penalty shall not exceed
(a) An individual not assessed previously five thousand taka; and

(b) An individual, assessed previously, fifty per cent (50%) of the tax payable on the
last assessed income or taka one thousand, whichever is higher.
Penalty for using fake Tax-payer's Identification Number
A penalty not exceeding taka twenty thousand;
Penalty for concealment of income
Where an individual conceals particulars of his income or furnished inaccurate particulars of
such income or understate the value of any immovable property in connection with its sale
or transfer with a view to evading tax, a penalty of fifteen per cent [15%] of tax which would
have been avoided had the income as returned by such person or as the case may be, the
value of the immovable property as stated by him been accepted as new:
If concealment is detected after of more than one year from the year, the amount of penalty
shall increase by an additional fifteen per cent [15%] for each preceding assessment year.
UNIVERSAL SELF ASSESSMENT
A return of income filed under universal self-assessment shall not be selected for audit
where such return shows at least 20% higher income than the income assessed or shown in
the return of immediate preceding assessment year and such return:
is accompanied by corroborative evidence in support of any income exempted from
tax;
is accompanied by a copy of bank statement or account statement, as the case may
be, in support of any sum or aggregate of sums of loan exceeding BDT. 500,000;
does not show receipt of gift during the year;
does not show any income chargeable to tax at a rate reduced under Section 44; or
does not show or result in any refund.
After submission of return DCT shall scrutiny such return and make adjustment if there is
any arithmetical error; or
any incorrect claim.
After necessary adjustment, DCT will send demand notice along with income computation
sheet.
INCOME EXEMPTED FROM THE FOLLOWING

Particulars
Income of provident fund, workers participation fund and other funds
Traveling allowances, etc. (Special purpose) incurred
Income of trustees on behalf of any recognized fund
Pension
Gratuity
Any payment received from provident fund and other funds (PF, WPPF and

Reference
Para # 4
Para # 5
Para # 6
Para # 8
Para # 20
Para # 21

ASF)
Interest on the balance in a Recognized Provident Fund

Para # 25

COMPONENTS OF SALARY
House rent allowance: 50% of basic salary or BDT. 25,000 per month, whichever is less,
shall be included in his income
Conveyance facilities: Where no conveyance is provided, the allowance so receivable in
excess of Tk. 30,000 shall be included in his income.
Conveyance facilities for personal use: 5% of the employees basic salary or BDT. 60,000
whichever is higher shall be included in the employees income. Additional conveyance
allowance shall be included in his income.
Medical allowance is exempted up to 10% of the basic salary or BDT. 120,000 annually
(whichever is less).
INVESTMENT ALLOWANCE FOR TAX REBATE
1. BDT. 15,000,000 or

2. 30% of the total income excluding EPF & interest or

3. Actual amount of investment.
Tax Rebate @ 15% on amount whichever is lower
Investments eligible for Tax Rebate: [6th Schedule Part B]
Life insurance premium paid by an individual;
Contribution to Provident Fund and Other Funds;
Contribution in any Deposit Pension Scheme (DPS) not exceeding BDT. 60,000;
Donation to a charitable Hospital;
Donation to organization for the welfare of the retarded people;
Donation to Zakat Fund;
Contribution to Benevolent Fund and Group Insurance Scheme;
Purchase of one computer or one laptop subject to maximum BDT. 100,000 for laptop
and BDT. 50,000 for desktop;

 Donation to a national level institution set up in memory of the liberation war;

Donation to a national level institution set up in memory of Father of the Nation;
Acquisition of any stocks or shares of a company, mutual fund or debenture listed
with any stock exchange;
Purchase of Bangladesh Government Treasury bond.