Kamal proposes to raise tax-free income limit to Tk 3.5 lakh

The tax-free income limit has been proposed to increased Taka 3.5 lakh from the existing Taka 3 lakh for individual taxpayers for the next fiscal year (FY24). 

Finance Minister AHM Mustafa Kamal in his budget speech today also proposed to increase the tax-free income threshold for women and senior citizens above 65 years of age to Taka 4 lakh from Taka 3.5 lakh.

Besides, proposals have been placed for the physically challenged persons and third gender taxpayers to extend their tax-free income limit to Taka 4.75 lakh, which earlier were Taka 4.5 lakh and Taka 3.5 lakh respectively.

The tax-free income ceiling for the war-wounded gazette freedom fighters will be Taka 5 lakh, up from Taka 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 Taka 3.5 lakh, 5 per cent tax on next Taka 1 lakh; 10 per cent on next Taka 3 lakh; 15 per cent on next Taka 4 lakh; 20 per cent on next Taka 5 lakh and 25 per cent income tax on the balance of total income.

Earlier, the government had increased the tax-free income Taka 3 lakh back in fiscal year (2020-21).