How to Calculate Tax Rebate in Bangladesh: A Complete Guide for Investors

Understanding tax rebates on investments is crucial for optimizing your returns in Bangladesh. Whether you’re investing in the Dhaka Stock Exchange (DSE), Sanchaypatra, or mutual funds, this guide provides step-by-step formulas, real-world examples, and actionable strategies to maximize your tax savings. Learn how to leverage Biniyog’s tools to track investments and simplify calculations.

Tax Rebate Formula for All Investment Types

General Formula:

Tax Rebate = (Investment Amount × Allowable Percentage) × Tax Rate

Investment Types and Details

1. DSE Shares
   • Allowable Percentage: 15%
   • Maximum Limit: 50 Lakh BDT
   • Tax Rate: 15%
2. Sanchaypatra
   • Allowable Percentage: 10%
   • Maximum Limit: 75 Lakh BDT
   • Tax Rate: 10%
3. DPS (Deposit Pension Scheme)
   • Allowable Percentage: 15%
   • Maximum Limit: 1.5 Crore BDT
   • Tax Rate: 15%
4. Government Bonds
   • Allowable Percentage: 10%
   • Maximum Limit: 25 Lakh BDT
   • Tax Rate: 10%
5. Mutual Funds
   • Allowable Percentage: 15%
   • Maximum Limit: 50 Lakh BDT
   • Tax Rate: 15%
6. Life Insurance
   • Allowable Percentage: 10%
   • Maximum Limit: 1.2 Crore BDT
   • Tax Rate: 10%

Step-by-Step Calculation with Examples

1. Stock Market Investments (DSE)

Formula:
Tax Rebate = (Investment in DSE × 15%) × 15%

Example:

• Investment: BDT 500,000 in DSE-listed shares (e.g., Grameenphone, Beximco Pharma).
• Rebate: (500,000 × 15%) = BDT 75,000
• Tax Saved: 75,000 × 15% = BDT 11,250

👉 Track DSE Share Prices

2. Sanchaypatra (Savings Certificates)

Formula:
Tax Rebate = (Investment × 10%) × 10%

Example:

• Investment: BDT 1,000,000 in 5-Year Sanchaypatra.
• Rebate: (1,000,000 × 10%) = BDT 100,000
• Tax Saved: 100,000 × 10% = BDT 10,000

3. Deposit Pension Scheme (DPS)

Formula:
Tax Rebate = (Annual Premium × 15%) × 15%

Example:

• Annual Premium: BDT 200,000 in IFIC Bank DPS.
• Rebate: (200,000 × 15%) = BDT 30,000
• Tax Saved: 30,000 × 15% = BDT 4,500

4. Government Bonds

Formula:
Tax Rebate = (Investment × 10%) × 10%

Example:

• Investment: BDT 300,000 in Bangladesh Govt Treasury Bonds.
• Rebate: (300,000 × 10%) = BDT 30,000
• Tax Saved: 30,000 × 10% = BDT 3,000

👉 Analyze Market Trends

5. Mutual Funds

Formula:
Tax Rebate = (Investment × 15%) × 15%

Example:

• Investment: BDT 400,000 in IPDC Mutual Fund.
• Rebate: (400,000 × 15%) = BDT 60,000
• Tax Saved: 60,000 × 15% = BDT 9,000

6. Life Insurance Premiums

Formula:
Tax Rebate = (Annual Premium × 10%) × 10%

Example:

• Annual Premium: BDT 500,000 for MetLife Insurance.
• Rebate: (500,000 × 10%) = BDT 50,000
• Tax Saved: 50,000 × 10% = BDT 5,000

7. Provident Fund Contributions

Formula:
Tax Rebate = (Employee Contribution × 100%) × Tax Rate
Note: Employer contributions are tax-free up to 1/3rd of basic salary.

Example:

• Employee Contribution: BDT 120,000 annually.
• Rebate: 120,000 × 15% = BDT 18,000

Combined Tax Rebate Calculation

Case Study:

• DSE Shares: BDT 500,000
• Sanchaypatra: BDT 1,000,000
• DPS: BDT 200,000
• Mutual Funds: BDT 400,000

Total Rebate:
= (500,000×15%×15%) + (1,000,000×10%×10%) + (200,000×15%×15%) + (400,000×15%×15%)
= 11,250 + 10,000 + 4,500 + 9,000
= BDT 34,750 Annual Tax Savings

👉 Use Biniyog’s Tax Calculator

Key Rules & Limitations

1. Aggregate Cap: Total rebate cannot exceed 25% of taxable income or BDT 15 lakh, whichever is lower.
2. Documentation: Submit Investment Proof (e.g., DSE trade receipts, Sanchaypatra certificates).
3. Holding Period:
   • DSE Shares: 1 year for rebate eligibility.
   • Bonds: 3 years minimum.

Tools for Tracking Investments & Rebates

1. Biniyog’s Portfolio Tracker

• Monitor DSE investments and auto-calculate rebates.
• Access live share prices and technical charts.

2. Tax Rebate Calculator

• Input investments to instantly compute savings.

3. DSE News Alerts

• Stay updated on tax policy changes.

👉 Download Biniyog App

FAQs: Tax Rebates in Bangladesh

Q: Can I claim rebates on both DPS and life insurance?
A: Yes! Combine up to BDT 1.5 crore (DPS) + BDT 1.2 crore (Life Insurance).

Q: How to verify DSE investments for rebates?
A: Use Biniyog’s trade reports as valid proof.

Q: Is crypto investment eligible for tax rebate?
A: No, only government-approved instruments qualify.

Conclusion: Maximize Savings with Smart Investments

By strategically investing in DSE shares, Sanchaypatra, and mutual funds, you can reduce taxable income by 15–25%. Use Biniyog’s tools to track investments, analyze DSE market trends, and optimize your portfolio.