As a citizen of a country, one has to pay tax on any source of income. According to the tax rules of the government of Bangladesh, this tax has to be paid at a fixed rate at a certain time of the year.
If a person cannot pay taxes, he is brought under the law and fined, as well as penal provisions. Therefore, non-payment of tax is punishable by law in applicable cases.
That is, if a person wants to stay out of the legally punishable offense that wants to be free from it, then he must pay tax at the prescribed rate.
Today’s discussion let us know about the income tax of individual classes. Today we will know in detail how much tax is to be paid and at what percentage rate how much money. Let’s get started.
Income Tax in Bangladesh
According to the rules and regulations of Bangladesh, the tax rate fluctuates yearly; that is, when the tax rate increases, sometimes it decreases.
That is why it is important to have regular knowledge about the income tax rate in Bangladesh. Today we will discuss Bangladesh’s current fiscal year 2022-23 tax.
I hope you will know about Bangladesh’s current updated income tax information from today’s discussion.
In today’s discussion, I will present a detailed discussion about how much income tax is to be paid, who is subject to income tax, what kind of income tax is to be paid on women, and when you have to pay it. So let’s go through all those discussions step by step.
How Much Income Tax Should be Paid
First, let’s cover an important topic. That is the amount of your income you have to pay income tax.
If your income is not that much, you don’t have to pay income tax. Let’s take a look at how the government has determined the income tax on your fixed income-
- In the case of a normal male person below the age of 65 years, if the annual income is more than 3,00,000, he will have to pay income tax.
- For normal women and men above 65, if their annual income is more than 350,000, they must pay income tax.
- Those who are disabled have to file an income tax return if their annual income is more than 4,50,000.
- In the case of any gazetted freedom fighter, if the annual income is more than 4,75,000, he must submit income tax.
Income Tax Rate in Bangladesh
You must file an income tax return if your income falls within tax limits. And if your income is outside the tax limit that your annual income is less than your tax limit, then you don’t have to pay income tax.
Only filing of zero income tax return will do. Now let us know how much tax is mandatory on your money and at what percentage rate –
Normal and in men aged less than 65 years
- Income up to 3,00,000 is exempt from tax
- Above 3,00,000 up to 100,000 income tax will be paid at 5%
- Next 3,00,000 income tax is to be paid at 10%
- Next 4,00,000 income tax is to be paid at 15%
- 20% income tax on the next 5,00,000
- 25% income tax on the excess income
For normal women and men over 65 years of age
- Income up to 3,50,000 is exempt from tax
- Above 3,50,000 up to 100,000 income tax will be paid at 5%
- Next 3,00,000 income tax is to be paid at 10%
- Next 4,00,000 income tax is to be paid at 15%
- 20% income tax on the next 5,00,000
- 25% income tax on the excess income
Suppose a person’s annual income is 10,00,000
Then after deducting the first 300,000 tax-free from the total income of the above person, the remaining is (10,00,000 – 300,000) = 7,00,000 Tk.
Of this, the tax on the first 100,000 will be 5% = 5,000
Then the remaining is (70,000 – 100,000) = 6,00,000
Then the tax on the next 300,000 will be 10% = 30,000
Remaining is (600,000 – 300,000) = 300,000
Now up to the next 4,00,000 will be taxed at 15%. Then the remaining 3,00,000 will be taxed at 15% = 45,000.
Then the total tax payable by the above person = (5,000 + 30,000 + 45000) = 80,000.
Women’s Income Tax Rate In Bangladesh
Many people want to know the amount of income tax for women. There are no separate income tax rules for women. Normal income tax will apply to them.
In the case of ordinary men, no income tax has to be paid up to 3,00,000. But for women, income tax up to 3,50,000 thousand is within the free limit; they do not have to pay any income tax up to 3,50,000.
In this case, they will get an extra benefit of 50 thousand TK. Other than this, all other rules will remain unchanged.
When to Pay Income Tax?
Now let’s find out when you must file your income tax return. We know that income tax is generally due at a certain time of the year.
But many of us do not know when to do it. Every year 30th November is observed as tax day in our country.
That is why everyone must file the income tax return by 30 November. So as a taxpayer, you must file your tax by 30 November.
So this is the discussion today. I hope you have learned all the information about Income Tax from today’s discussion. Stay tuned with us for any updated information about Income Tax. Thank you.
