Govt raises tax-free income limit to Tk 3.5 lakh

Finance Minister AHM Mustafa Kamal today proposed increasing the tax-free income limit to Tk 3.5 lakh from the existing Tk 3 lakh for individual taxpayers for 2023-24 fiscal year.

Besides, the tax-free income threshold for women and senior citizens above 65 years of age has also been increased to Tk 4 lakh from Tk 3.5 lakh.

Proposals have been placed 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.

The tax-free income limit for war-wounded gazette freedom fighter 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 Tk 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 increased the tax-free income Tk 3 lakh back in fiscal 2020-21.