In Bangladesh, the fiscal year ends on June 30, and taxpayers have less than a month to make investments in tax-saving instruments. Investors who invest in qualifying financial instruments by the end of the fiscal year can significantly reduce their tax liability and maximise available rebates.
The last few weeks of the fiscal year are a good time for many salaried professionals, business owners and investors to review their finances and take advantage of tax incentives available in the country’s income tax regime.
How do tax rebates work
The tax rebates are designed to encourage saving and long-term financial planning. Eligible investments can reduce the amount of tax payable because taxpayers can claim a rebate of a percentage of their investment.
Depending on the level of income and the amount of investment, taxpayers can benefit from significant tax savings. In certain cases, the rebate can be as high as BDT 10 lakh under the relevant tax provisions.
Authorised Investment Options
There are several different types of investment that you may be able to claim tax rebates. These include life insurance premiums, approved savings certificates, pension schemes, mutual funds, government-approved bonds and contributions to recognised provident funds.
Investors should conduct due diligence to check if any particular financial product is eligible for tax benefits before investing. Income tax returns should also be filed with appropriate documentation.
Why you MUST take action before June 30
Typically, only investments made during the current fiscal year are considered for the tax calculation for that fiscal year. If you wait until after June 30, you could miss out on rebates that are available during the current assessment period.
Financial experts recommend checking your investment portfolios, determining how much you may save on taxes, and talking to tax experts if needed to make sure you’re following current rules.
Discover More Stories Worth Your Time
See Why Lawyers Refused Defence?
Explore how public outrage shaped the legal response in the Ramisa murder case.
Learn What Tk 5000 Buys?
Discover the difference between budget and luxury Eid shopping at New Market
Explore How Metro Travel Changes?
Discover essential MRT Line-6 tips for smoother Eid-ul-Azha travel across Dhaka this year.
Check How Riyadh Air Helps?
Explore ticket prices, baggage rules, and booking details for new Dhaka-Riyadh flights.
Find Which Trains Get Coaches?
Discover extra Eid train services and how to secure tickets before the rush.
Plan Ahead – Save More
With the financial year coming to a close, taxpayers have a short window of opportunity to maximise their finances. Strategic investments made before the deadline can help you build long-term wealth and lower your current tax bill. “Acting now could save you a lot of money, and also make you more financially secure overall.
Summary
With the July-June fiscal year nearing its end, taxpayers have a limited time to make eligible investments and claim valuable tax rebates. Investments in approved savings schemes, insurance policies, mutual funds, and other tax-saving instruments can help reduce taxable income and potentially secure tax benefits worth up to BDT 10 lakh.
