If you are a government employee and want to know about your income tax return preparation, then you will find all the rules for preparing your income tax return as a government employee here.
So follow the article carefully till the end to get all details about the preparation of Tax for government employees.
Tax Preparation for Government Employees
Paying income tax as a citizen of the country is a duty of the individual. Those classified as taxable persons per government rules must pay income tax at the prescribed rate on their income at a particular time of the year. Income tax is levied on various individuals based on their source of income.
For example, income tax is assessed on different sources such as professionals, traders, company owners, etc. But today, we will know how to calculate government employees’ income tax, how to prepare it, and how we will deposit that income tax.
Today’s presentation of this article is for a detailed discussion of these issues. Let’s know the rules and methods of calculating income tax for government employees.
Tax applies to both government employees and private employees. However, calculating the tax on the income of private employees is a bit complicated. But calculating taxes for government employees is not as complicated as for private employees.
Calculating income tax for government employees is a little easier. We will know about that today in today’s discussion.
Income Tax Calculation of Government Employees
Income tax is calculated by calculating the basic salary of government employees, festive allowance, and all the bonuses they receive.
Income tax is not calculated on the allowances with other benefits- such as various other allowances, house rent allowance, medical allowance, travel allowance, retirement entertainment allowance, and Bengali New Year allowance.
Only government employees must pay tax on their basic salary and occasional bonuses and festive allowances.
It can be easily understood if we calculate the tax amount of government employees through an example. So let us know this through an example-
- We think the basic monthly salary of a person is 40,000 TK
- The monthly medical allowance is 700 TK
- Annual Festival Allowance is 40,000 TK
- Bangla New Year Allowance is 6500 Tk
- The monthly House Rent Allowance is 8000 TK
Based on this example, we will now calculate the total income tax. If a person’s above salary and allowances differ, they can calculate income tax by substituting their original number instead of that number.
Total Taxable Income
Nothing other than the basic pay and festive allowances of Government servants will be in the tax limit. Only the basic pay and festive allowances will be calculated for income tax.
In that case, his medical, house rent, and Bengali New Year allowance will be out of income tax, which means no income tax will be added.
But if he has received any bonus, then that bonus will be reckoned with in his income tax. In that case, his income tax, including the bonus, must be calculated.
Then the total basic salary of the above person is 40,000 TK, and his festival allowance is 40,000 TK.
Then his annual basic salary will be (40,000 x 12) = 4,80,000 TK, and the festival allowance is 40,000 TK. Then his total annual income is (4,80,000 + 40,000) = 5,20,000 TK. Then he has to pay income tax on this 5,20,000 TK.
If a person’s annual income is between 250,000 TK, he will not have to pay any income tax. But if it is above that, he must pay income tax. Then the total annual income of the above person is 5,20,000 TK.
Deducting the tax-free income of Tk 2,50,000 from these, his total taxable income comes to Tk 2,70,000. The above person has to pay income tax on this 2,70,000 TK.
Tax Return Submission Process
You can complete income tax online by calculating how much income Tax is due on this money. But you have to calculate the total tax on this amount and submit it online, or you can directly go to the Income Tax office and submit it.
If you don’t want to go to the office to submit your return, you can submit your income tax return online. You can follow the below article to calculate the tax amount and submit income tax online.
Related: Tax Return Submission Process Online!
Here are simple rules for calculating and filing income tax returns online. Hopefully, you can submit your income tax return quickly from the article.
I hope you have learned from today’s discussion about the Income Tax calculation method for government employees and its submission process.
If you face any difficulty while calculating and submitting income tax or if you have difficulty understanding anything, you can let us know. We will try our best to help you.
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