30/04/2015
Tax Credit on Investment:
The individual can get investment allowance in accordance with the provision of section 44(2) of Income Tax Ordinance -1984(Exemption & Allowances for assessees being resident and non-resident Bangladeshi).
A resident and non-resident Bangladeshi assessee will get tax rebate of an amount equal to
15% of the sums specified in Part B of the Sixth Schedule. 30% of the total income excluding employer‟s contribution to RPF and interest on the accumulated balance of RPF and any income u/s 82C, or
Tk.15, 000,000. (Whichever is lower = Maximum Limit of Investment)
Tax Credit = 15% of Maximum Limit of Investment
The lists of investment are given below;
1. Life Insurance Premium Paid [Para – 1]:
Any sum paid in Bangladesh by an assessee to effect an insurance or a contract for deferred annuity on the life of himself, spouse or minor child, provided that such payment, in the case of insurance, shall not exceed 10% of the sum assessed excluding bonus or other benefits.
2. Life Insurance Premium Paid by a Hindu Undivided Family [Para – 2]:
Any sum paid in Bangladesh by a HUF to affect insurance on the life of any male member of the family or the wife of any such member.
3. Deduction from the salary of Government employee for deferred annuity [Para – 3]: Any sum not exceeding one-fifth of the salary deducted from the salary payable by the Government or on its behalf to any individual in accordance with the service conditions to secure a deferred annuity for him or for his wife or children.
4. Contribution to Provident Funds [Para – 4]:
Any contribution by an assessee to any provident fund to which the Provident Fund Act, 1925 applies.
5. Employer’s and Employee’s contribution to a Recognized Provident Fund [Para – 5]: Any sum paid to a recognized provident fund by the assessee and the employer, where the assessee is a participant subject to the limits laid down in Part B of the Sixth Schedule.
6. Contribution to Superannuation Fund [Para – 6]:
Any sum paid by the assessee as ordinary annual contribution to approved superannuation fund as a participant to the fund.
7. Investment in Savings Certificate [Para – 10]:
Any sum invested by a non-company assessee in the following if the investments are held for 5 years from the date of purchase / up to its maturity:
a) Savings Certificates or instruments specified by the NBR;
b) Unit certificates and mutual fund certificates issued by ICB and its subsidiaries;
c) Govt. securities including development loans/Bonds as specified by the NBR;
d) Shares of Investment Companies as specified by the NBR.
8. Contribution to Deposit Pension Scheme (DPS) [Para – 11]:
Any amount not exceeding Tk.60,000 by an individual in any Deposit Pension Scheme sponsored by a Scheduled Bank or a financial institution.
9. Donation to a Charitable Hospital [Para – 11A]:
Any sum paid as donation to a charitable hospital established outside the city corporation, provided the donation is made after one year of establishment of the hospital.
10. Donation to Organizations set up for the welfare of re****ed people [Para – 11B]:
Any sum paid as donation to an organization set up for the welfare of re****ed people, provided the donation is made after one year of establishment of the organization and is approved by the Social Welfare Department and the NBR.
11. Donation to Zakat Fund [Para – 13]:
Any sum paid by an assessee as Zakat to the Zakat Fund or charitable fund established by or under the Zakat Fund Ordinance, 1982.
paid by an assessee to make provision for his spouse, children or other dependent person to a benevolent fund or any premium paid under a group insurance scheme approved by the NBR.
13. Contribution to Aga Khan Development Network [Para – 21]:
Any sum paid by an assessee as donation to any socio-economic or cultural development institution established by the Aga Khan Development Network in Bangladesh.
14. Contribution to Philanthropic or Educational Institution [Para – 22]:
Any sum paid by an assessee as donation to Philanthropic or Educational Institution approved by the government for this purpose.
15. Investment in Computer / Laptop [Para – 23]:
Any sum invested in the purchase of one computer (Upto Tk. 50,000) or one laptop (Upto Tk. 1,00,000) by an individual assessee.
16. Donation to national level institution set up in memory of the liberation war [Para-24]:
Any sum paid by an assessee as donation to a national level institution set up in memory of liberation war.
17. Donation to national level institution set up in memory of Father of the Nation [Para-
25]:
Any sum paid by an assessee as donation to a national level institution set up in memory
of Father of the nation.
18. Donation to Prime Minister’s Higher Education Fund [Para – 26]
19. Investment in shares by an individual [Para – 27] :
Any sum invested by an assessee, being an individual, in the acquisition of any stocks of shares of a company, mutual fund or debenture listed with any stock exchange.
20. Investment in Government Treasury Bond [Para – 28]:
Any sum invested by an assessee, being an individual, in the purchase of Bangladesh Government Treasury Bond.
The individual can get investment allowance in accordance with the provision of section 44(2) of Income Tax Ordinance -1984(Exemption & Allowances for assessees being resident and non-resident Bangladeshi).
A resident and non-resident Bangladeshi assessee will get tax rebate of an amount equal to
15% of the sums specified in Part B of the Sixth Schedule. 30% of the total income excluding employer‟s contribution to RPF and interest on the accumulated balance of RPF and any income u/s 82C, or
Tk.15, 000,000. (Whichever is lower = Maximum Limit of Investment)
Tax Credit = 15% of Maximum Limit of Investment
The lists of investment are given below;
1. Life Insurance Premium Paid [Para – 1]:
Any sum paid in Bangladesh by an assessee to effect an insurance or a contract for deferred annuity on the life of himself, spouse or minor child, provided that such payment, in the case of insurance, shall not exceed 10% of the sum assessed excluding bonus or other benefits.
2. Life Insurance Premium Paid by a Hindu Undivided Family [Para – 2]:
Any sum paid in Bangladesh by a HUF to affect insurance on the life of any male member of the family or the wife of any such member.
3. Deduction from the salary of Government employee for deferred annuity [Para – 3]: Any sum not exceeding one-fifth of the salary deducted from the salary payable by the Government or on its behalf to any individual in accordance with the service conditions to secure a deferred annuity for him or for his wife or children.
4. Contribution to Provident Funds [Para – 4]:
Any contribution by an assessee to any provident fund to which the Provident Fund Act, 1925 applies.
5. Employer’s and Employee’s contribution to a Recognized Provident Fund [Para – 5]: Any sum paid to a recognized provident fund by the assessee and the employer, where the assessee is a participant subject to the limits laid down in Part B of the Sixth Schedule.
6. Contribution to Superannuation Fund [Para – 6]:
Any sum paid by the assessee as ordinary annual contribution to approved superannuation fund as a participant to the fund.
7. Investment in Savings Certificate [Para – 10]:
Any sum invested by a non-company assessee in the following if the investments are held for 5 years from the date of purchase / up to its maturity:
a) Savings Certificates or instruments specified by the NBR;
b) Unit certificates and mutual fund certificates issued by ICB and its subsidiaries;
c) Govt. securities including development loans/Bonds as specified by the NBR;
d) Shares of Investment Companies as specified by the NBR.
8. Contribution to Deposit Pension Scheme (DPS) [Para – 11]:
Any amount not exceeding Tk.60,000 by an individual in any Deposit Pension Scheme sponsored by a Scheduled Bank or a financial institution.
9. Donation to a Charitable Hospital [Para – 11A]:
Any sum paid as donation to a charitable hospital established outside the city corporation, provided the donation is made after one year of establishment of the hospital.
10. Donation to Organizations set up for the welfare of re****ed people [Para – 11B]:
Any sum paid as donation to an organization set up for the welfare of re****ed people, provided the donation is made after one year of establishment of the organization and is approved by the Social Welfare Department and the NBR.
11. Donation to Zakat Fund [Para – 13]:
Any sum paid by an assessee as Zakat to the Zakat Fund or charitable fund established by or under the Zakat Fund Ordinance, 1982.
paid by an assessee to make provision for his spouse, children or other dependent person to a benevolent fund or any premium paid under a group insurance scheme approved by the NBR.
13. Contribution to Aga Khan Development Network [Para – 21]:
Any sum paid by an assessee as donation to any socio-economic or cultural development institution established by the Aga Khan Development Network in Bangladesh.
14. Contribution to Philanthropic or Educational Institution [Para – 22]:
Any sum paid by an assessee as donation to Philanthropic or Educational Institution approved by the government for this purpose.
15. Investment in Computer / Laptop [Para – 23]:
Any sum invested in the purchase of one computer (Upto Tk. 50,000) or one laptop (Upto Tk. 1,00,000) by an individual assessee.
16. Donation to national level institution set up in memory of the liberation war [Para-24]:
Any sum paid by an assessee as donation to a national level institution set up in memory of liberation war.
17. Donation to national level institution set up in memory of Father of the Nation [Para-
25]:
Any sum paid by an assessee as donation to a national level institution set up in memory
of Father of the nation.
18. Donation to Prime Minister’s Higher Education Fund [Para – 26]
19. Investment in shares by an individual [Para – 27] :
Any sum invested by an assessee, being an individual, in the acquisition of any stocks of shares of a company, mutual fund or debenture listed with any stock exchange.
20. Investment in Government Treasury Bond [Para – 28]:
Any sum invested by an assessee, being an individual, in the purchase of Bangladesh Government Treasury Bond.
