AHM Mustafa Kamal has proposed keeping tax-free income limit for individuals unchanged in his budget for the forthcoming fiscal year 2021-2022.

In parliament on Thursday, the finance minister also proposed to reduce the highest limit of investment for getting tax rebate by individual taxpayers to Tk 1 crore from current Tk 1.50 crore by brining amendment in the Income Tax Ordinance-1984 through the Finance Bill 2021 placed before the parliament on Thursday.

He, however, proposed to reduce the business turnover tax for individual taxpayers engaged in doing business to 0.25 per cent from existing 0.50 per cent.

Tax-free income ceiling for individual taxpayers has been increased to Tk 3 lakh in FY2021 after five years from Tk 2.50 lakh in FY2020.

The current applicable tax rates range from minimum 5 per cent to the highest 25 per cent for individual taxpayers.

The existing tax-free income limit is Tk 3.50 lakh for women and senior citizen taxpayers, Tk 4.50 lakh for physically challenged people, Tk 4.75 lakh for gazetted war-wounded freedom fighters.

 
The government in the last budget reduced the lowest income tax rate to 5 per cent and the highest income tax rate to 25 per cent from previous 10 per cent and 30 per cent respectively.

Individual taxpayers need to pay 5 per cent income tax on the next Tk 1 lakh income after enjoying tax exemption on income of the first Tk 3 lakh while the highest income tax rate is 25 per cent on annual income above Tk 16 lakh.

The other tax rates include 10 per cent, 15 per cent and 20 per cent based on the annual income.

BDST: 1643 HRS, JUN 3, 2021
SMS