Tax rebate on investment- as per ITO 1984

 

An assessee shall be entitled to a rebate from the amount of tax payable if he/she invests during the income year in the following items, namely:

a)       life insurance premium

b)       contribution to approved Provident Fund (both by the employee and employer)

c)       contribution to deposit pension scheme amounting to not exceeding Tk. 60,000 sponsored by a scheduled bank or a financial institution

d)       donation to a national level institution set up in memory of the “Liberation War”

e)       donation to a national level institution set up in memory of “Father of the Nation”

f)         donation to Prime Minister’s Higher Education Fund

g)       donation to Aga Khan Development network/Asiatic Society/CRP/Dhaka Ahsania Mission Cancer Hospital/icddr,b

h)       donation to Zakat Fund/charitable fund established by or under Zakat Fund

i)         any sum invested in Bangladesh Government Treasury Bond and Sanchayapatra, stocks and shares of listed companies, mutual funds and debentures listed with any stock exchange in Bangladesh

 

Allowable limit of investment tax rebate is as follows:

Total income	Investment tax rebate on eligible amount*
Up to Tk. 1.5 million	15%
Over Tk. 1.5 million	10%

*Eligible amount is the lowest of the following:

a)       Actual investment; or

b)       25% of total income; or

c)      Tk. 10 million( 1Crore)

 

 

 

Submission of Statement of Assets and Liability and Lifestyle (Section 80)- As per ITO 1984.

   

It is mandatory for an individual assessee to submit the statement of assets, liabilities and lifestyle, if he

a)          has a gross wealth over Tk. 4 million; or

b)          owns a motor car; or

c)          has made an investment in a house property or an apartment in the city corporation area.

 

If any individual, not being a shareholder director, having only income from salary or business or profession, he may opt not to submit the statement of lifestyle if his total income is less than Tk. 0.4 million.

 

Capital gains tax on sale of shares of listed companies

Capital gain from transfer of stocks and shares of public limited companies listed with stock exchange except listed Govt. securities:

 

Sl.	Particulars	Rate
a.	For resident companies and firms	10%
b.	Capital gain tax of non-resident shareholders (refer to section 5.9)	15%
c.	For sponsor shareholders and shareholder directors	5%
d.	For resident individual holding at least 10% of the total share capital of the company	5%

 

        Capital gains tax on sale of stocks and shares of public limited companies listed with stock exchange         in     respect of resident individual assessee shall be exempt from tax unless such residents fall in             categories (c) and (d) of above

 

Reduced rates of Corporate Tax applicable to certain industrial companies

 

Companies	Rate
Textile industries (time extended up to 30 June 2022)	15%
Knit wear and woven garments manufacturer and exporter (time extended up to assessment year 2021-2022)	12%
Knit wear and woven garments manufacturer and exporter with internationally recognised factory with ‘green building certification’ (time extended up to assessment year 2021-2022)	10%
Research institutes at national level, registered under the Trust Act, 1882 or Societies Registration Act, 1860	15%
Private universities, Private medical college, Private dental college, Private engineering college or Private college engaged in imparting education on information technology	15%
Co-operative society registered under Co-operative Society Act 2001 other than income from agricultural or cottage sector	15%
Production of pelleted poultry feed, Production of pelleted feed for fish, shrimp and cattle, Production of seeds marketing of locally produced seeds, cattle farming, dairy farming, horticulture, frog farming, sericulture, mushroom farming and floriculture: Income up to Tk. 1,000,000 Next Tk. 2,000,000 On the balance amount	3% 10% 15%