In Bangladesh, filing a personal income tax return is mandatory for individuals whose annual income exceeds specific thresholds, as well as for those involved in certain professional activities or seeking particular services.bdnews24.com
Who Must File a Personal Income Tax Return?
You are required to file a tax return if:
- Your annual income exceeds BDT 350,000 (for males) or BDT 400,000 (for females and senior citizens aged 65 and above) .
- You had taxable income or paid taxes in any of the previous three years .
- You are a partner in a firm, a shareholder-director, or a shareholder-employee in a company .
- You hold an executive or managerial position in any business or profession .
- You apply for a loan exceeding BDT 2 million, even if you have no taxable income .
- You need to obtain or renew a trade license in city corporation or municipal areas .
- You are applying for or renewing an import or export registration certificate .
Benefits of Filing a Personal Income Tax Return
- Eligibility for Tax Rebates: Filing a return allows you to claim tax rebates on investments, which can reduce your taxable income.
- Access to Financial Services: A filed tax return is often required when applying for loans, trade licenses, or other financial services.
- Legal Compliance: Filing ensures compliance with the Income Tax Act, helping you avoid penalties and legal issues.
Personal Income Tax Rates for FY 2024/25
For the fiscal year 2024/25, the personal income tax rates in Bangladesh are as follows:
- First BDT 350,000: 0%
- Next BDT 100,000: 5%
- Next BDT 400,000: 10%
- Next BDT 500,000: 15%
- Next BDT 500,000: 20%
Note: The basic exemption limit varies based on the taxpayer’s category:
- BDT 400,000 for females and senior citizens aged 65 and above
- BDT 475,000 for individuals with disabilities and third-gender taxpayers
- BDT 500,000 for gazette war-wounded freedom fighters .
Filing your personal income tax return is not only a legal obligation but also a step toward financial responsibility and access to various services
