Tax-free income limit increases to Tk 3.5 lakh

Staff Reporter :
In the proposed new budget for fiscal year (FY24), the tax-free income limit has been increased to Tk 3.5 lakh from the existing Tk 3 lakh for individual taxpayers.
Apart from it, the budget has proposed to increase the tax-free income threshold for women and senior citizens above 65 years of age to Tk 4 lakh from Tk 3.5 lakh.
Finance Minister AHM Mustafa Kamal in his budget speech on Thursday also placed proposals for the physically challenged persons and third gender taxpayers to extend their tax-free income limit to Tk 4.75 lakh, which were Tk 4.5 lakh and Tk 3.5 lakh respectively previously.

The tax-free income ceiling for the war-wounded gazetted freedom fighters will be Tk 5 lakh, up from Tk 4.75 lakh.
The proposed tax rates and tax slabs for all categories of individual taxpayers except companies and local authorities are: no tax on first Tk 3.5 lakh, 5 per cent tax on next Taka 1 lakh; 10 per cent on next Tk 3 lakh; 15 per cent on next Tk 4 lakh; 20 per cent on next Tk 5 lakh and 25 per cent income tax on the balance of total income.
Earlier, the government had increased the tax-free income Tk 3 lakh back in fiscal year 2020-21.