Introduction:
In Bangladesh, income tax is more than just a legal requirement — it’s a responsibility that contributes to national development. Yet, for many individuals and small business owners, the income tax system remains confusing, leading to mistakes, missed opportunities, and even legal trouble.
This guide will walk you through the basics of income tax in Bangladesh, explain common challenges, and show you how professional help can make the process smoother and safer.
What is Income Tax?
Income tax is a tax levied by the National Board of Revenue (NBR) on individuals and entities earning income. The tax applies to various income sources, including:
- Salary or wages
- Business income
- Capital gains
- Rent or property income
- Investments and dividends
Every taxpayer must register for a TIN (Tax Identification Number) and submit a return annually.
Income Tax Rates in Bangladesh (as of FY 2024-25)
| Taxpayer Category | Tax-Free Limit | Tax Rate (Above Limit) |
|---|---|---|
| Individual (Male) | ৳3,50,000 | 10% – 30% progressive |
| Female & Senior Citizens | ৳4,00,000 | 10% – 30% progressive |
| Companies | N/A | 22.5% to 45% depending on type |
Common Challenges Faced by Taxpayers
- Misunderstanding Deductible Expenses
Most small businesses are unaware of the expenses they can legally deduct to lower their tax burden. - Incorrect Return Filing
Mistakes in tax return forms often trigger audits and penalties from NBR. - Lack of Documentation
No proper invoices, bank statements, or salary sheets make it difficult to defend a tax return. - Missing the Deadline
Income tax return deadlines vary and missing them leads to penalties.
How Tax Care Can Help
At Tax Care, we offer:
- TIN Registration
- Income Tax Return Filing
- Tax Planning & Advisory
- Representation before DCT or Appeal Board
- Tax Compliance Checklists
- Salary and Employee Tax Management
Final Thoughts
Being tax compliant not only protects your business but also opens doors to financial transparency and investment opportunities. Don’t risk penalties or audits — let professionals handle your taxes.
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Visit Us: Shah Ali Tower, Karwan Bazar, Dhaka
