How to Calculate Income Tax in Bangladesh, BD in 2023

What is the minimum tax actually? The minimum tax varies from the taxpayer to the taxpayer. The amount of the tax can be 3000 to 9000 or more. It depends on the income of the taxpayers. Normally it is clear to us that when the income of a person exceeds the specific amount, he has to pay tax based on the exceeded amount of money.

When one’s tax liability does not exceed the maximum tax ceiling, he has to pay minimum tax. The Tax is set by NBR. It also varies from location to location of the taxpayers.

How to Calculate Income Tax in Bangladesh
How to Calculate Income Tax in Bangladesh

What is the minimum taxable income threshold?

The minimum taxable income is BDT 250000 for a few years. But in some cases, Exception is available. The special cases are:

The way of calculating the minimum taxpayer is available. If any taxpayer is the legal guardian of disabled children, then the tax will be counted at a minimum rate. At that time, he has to pay less than normal taxable income.

This benefit is applicable for both mothers and fathers of disabled children. When the tax of a person crossed the limits of earning, he has to pay income tax to NBR in Bangladesh.

When you are a salaried person, the salary will not be covered by your total income. A certain limit of exemption, Total taxable income will be calculated from your income. After that, you have to pay the minimum tax assigned by the NBR.

Minimum tax ceiling

The taxpayer needs to have taxable income. It depends on the location also.

How to Calculate Income Tax in Bangladesh: Minimum tax (BDT)

Dhaka South City Corporation, Dhaka North City Corporation, and Chittagong City Corporation require 5,000 taka. Any other city corporation requires somewhat less, it requires 4,000 taka. The Outside of the city corporation requires 3,000 take.

When a taxpayer’s taxable income goes across the 250,000, he has to calculate the tax liability. Then, they have to pay the NBR based on the rules of Bangladesh.

You are living in Dhaka south city corporation. Your taxable income is 270000; the minimum threshold will be 250000. The minimum tax will be 2,000 {(BDT 270,000-250,000) X10%}.

In this position, one has to pay a minimum tax of BDT 5000. In these fields, one can not consider a tax rebate. The tax rebate will be prescribed by the NBR.

On the other hand, the calculation will be different when the taxpayer has a donation and the taxpayer in a specific area.

Minimum tax after-tax rebate in BD

Government inspires the taxpayer to contribute in specific sectors. Because of this, many taxpayers have to do this for rebating taxes.

The investor and donate person gets to benefit in two ways. The way of increasing capital from his investment and getting tax rebate opportunities.

The taxpayer with investment allowance needs to calculate tax rebate based on his investment. For this reason, he can deduct the cost of the text. if you want to have details about these, you can know more about the tax ordinance under section 82C.

According to section 82C, Tax will be deducted and then minimum income tax will be charged. The minimum tax when your income is under section 82C. You want to know more, you have to go through the 28 section of 82C for having details. By going through the section, you can minimize the tax figure.

When you go through the 82C section, you will have the details of 5 sections. There, you will have a tax liability. Among the five sections, the deduction form will be considered as the final settlement.

Bangladesh income tax rate

The income tax rate in Bangladesh depends on personal income. The income Tax varies from man to man. The income tax also depends on various types of income such as interest, dividends, pension, and labor. The revenues of personal income tax are the remarkable income source of the Bangladeshi government.

Every single year, the personal income tax rate is changed slightly. Even all the rules are not stable. That is why every this related income tax is conveyed through an update. Among the data, economic calendar, historical chart, forecast chart, and an economic calendar, everything are included.

Bangladesh income tax calculator in 2022

The calculator is used for counting the tax of individual person call income tax calculator. The program Tax calculator has been designed based on the requirements of the users. At the time of providing tax, there are lots of things connected to this. The tax rules and regulations of the year are very important. The rebate on the tax must be counted based on logical reason.

When the tax liability goes under the amount of the deduction, you will not have the special opportunities of Tax Rebate. Thereafter, you have to pay according to the usual system.

At the time of paying your tax, When you deduct income tax, you need to collect chalan form before the submission of income tax. Thereafter, you need to include chalan copies with your return of income.

Major areas for final settlement of tax liability. The tax liability goes according to the section of 82C. The following cases are quite important for deducting tax.

  • Royalty, fees for technical services
  • Supply, contract, or sub-contract work
  • Band rolls of handmade cigarettes
  • International Phone calls
  • International gateway service
  • Rental power companies (Sec 52N);
  • Salaries of foreign technicians of the Diamond cutting industry
  • Interconnection Exchange
  • Transaction by a member of a Stock Exchange
  • Export of all kinds of goods
  • Cash subsidy
  • Auction purchase
  • Export of manpower
  • land development business
  • Transfer of property
  • Insurance agent commission
  • Shipping business of a resident

If anyone does not pay tax on time, Different types of steps can be taken against him. Thereafter, one has to pay tax including some extra paper such as

  • The imposition of penalty.
  • Advance Payment of Tax
  • Salary or any other payment.
  • Filing of Certificate case to the Special Magistrate
  • Attachment of bank accounts,

Every taxpayer has to pay advance tax if anyone falls in the category.

In Bangladesh, the system of providing tax is excellent. The way is also present to calculate minimum tax. But one has to apply this based on logical reason.

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