Understand how the investment rebate works under the new rules and which investments can help you lower your tax bill.
One of the most effective ways to reduce your income tax in Bangladesh is through the investment tax rebate. By investing in eligible instruments, you can reduce the tax you owe — while building savings at the same time.
How the rebate is calculated
Under the current rules, your rebate is the lowest of three amounts: 3% of your taxable income, 10% of your eligible investment, or ৳ 7,50,000. This means both your income level and the amount you invest determine your rebate.
Common eligible investments
- Government savings certificates (Sanchayapatra), within applicable limits.
- Deposit Pension Schemes (DPS), within the annual limit.
- Life insurance premiums.
- Contributions to recognised provident funds.
- Investments in approved listed securities and mutual funds.
Planning tips
- Plan investments early in the income year, not in the final month.
- Keep all certificates and receipts — they are required as proof.
- Hold investments to maturity where required to keep your rebate.
- Review your plan each year as rules and limits change.
Our tax planning experts can build a personalised plan that maximises your rebate within the law.
#Tax Planning#Investment Rebate#Savings
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