Payroll Tax Intelligence

If a taxpayer invests 20% of the total taxable income in a year within the permitted limit in the following instruments or donate to authorized institutions, he will be entitled to the maximum tax rebate from the amount of tax payable.

Investment in Authorized Instruments: Such as:

• Life Insurance Premium- Up to 10% of Policy Value.
• Contribution of both employer and employee to the recognized provident fund (RPF) — no limit.
• Contribute to Superannuation Fund — no limit.
• Investment in Government Securities (Shariah-based Securities-Sukuk, Treasury Bill, Bond, Savings Certificate, Debentures)-Up to 5,00,000/-.
• Unit Certificate, Mutual Fund, ETF or Joint Investment Project- Up to 5,00,000/-.
• Investment in DPS or Monthly Savings Project- Up to 120,000/-.
• Stock Exchange listed securities- no limit.

Donate your income to get maximum tax rebate: Such as:

• Donation to Bangladesh Thalassemia Foundation.
• Donation to Mastul Foundation.
• Donation to SOS Children’s Village International in Bangladesh.
• Donation to Rogi Kalyan Samiti.
• Donation to Bangladesh National Federation of the Deaf (BNFD).
• Donation to Gonoshasthaya Kendra.
• Donation to Dhaka Ahsania Mission.
• Donate to Palliative Care Society of Bangladesh (PCSB).
• Donation to Agami Education Foundation.
• NBR approved Charity Hospital situated at the outside of City Corporation area.
• Donation to an organization established for the welfare of people with disabilities.
• Donations to Zakat Fund or charitable funds established under the Zakat Fund Management Act, 2023.
• Donations to any welfare fund and group insurance scheme approved by NBR.
• Donations to any institution established for public development or education approved by NBR.
• Donations to Liberation War Museum.

Donate your income to reduced your tax liability:

In this case, donations in some cases will assist to reduce your total taxable income, which will lead to reduce your taxes burden directly-such as: Donation to the As-Sunnah Foundation