Investment Tax Rebate Calculator (Bangladesh)
Shows the tax rebate you can claim on eligible investments and how much investment is needed to reach the maximum rebate.
Recent
Formula
How the calculation works
The tool first caps the eligible investment at twenty percent of annual income or one crore taka, whichever of the two is lower.
It then multiplies the qualifying investment by the rebate rate, which is normally fifteen percent, to get the tentative rebate amount.
Finally it limits the rebate to three percent of annual income, because that ceiling is fixed under the income tax rules.
Common mistakes
- Investing more than twenty percent of income and expecting extra rebate, when the law caps the qualifying investment at that level.
- Forgetting to keep investment proofs, since the rebate is only allowed when proper documentary evidence is filed with the return.
When to use it
- Estimate the tax rebate before you file, based on your life insurance, DPS and savings certificate amounts.
- Check how much more you must invest to reach the 3% of income cap on the rebate.
Worked example
Annual income 1000000 and eligible investment 200000 at 15% give a qualifying investment of 200000 and a rebate of 30000 taka, which is exactly the 3% income cap.
Common questions
What investment gives the full rebate?
Investing twenty percent of your annual income gives fifteen percent of that amount, which equals the three percent of income ceiling.
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