DSE Tax Rebate Planner

How Tax Rebate Works in Bangladesh (2024-25)

The Government of Bangladesh encourages individuals to invest in the capital market, mutual funds, and other approved securities by offering a direct reduction in their income tax. This is known as a Tax Rebate.

The 15% Rebate Rule

You are eligible for a tax rebate equal to 15% of your total investment during the fiscal year (July 1st to June 30th). However, there are three legal limits on how much rebate you can claim.

Three Criteria for Maximum Rebate

Your total tax rebate will be the lowest of these three amounts:

• 3% of your total taxable income: This is usually the most relevant limit for salaried employees.
• 15% of your actual investment: This is why you must invest enough to reach the 3% income limit.
• Tk 1,000,000 (10 Lakh): This is the absolute maximum rebate any individual can claim, regardless of income.

Where should you invest for Tax Rebate?

To qualify for the rebate, you must invest in "Approved Securities," which include:

• Listed Shares: Buying stocks on the Dhaka (DSE) or Chittagong (CSE) Stock Exchanges.
• Mutual Funds: Both open-end and closed-end mutual funds.
• Savings Certificates: Sanchaypatra (subject to certain individual limits).
• DPS: Deposit Pension Schemes (up to Tk 120,000 per year is eligible).
• Treasury Bonds: Government bonds are now easily tradable through your BO account.