How is income tax worked out for government employees?

For an employee under a government pay order, only basic pay, festival allowance and bonus are taxable. The other allowances under the pay order, such as the medical and Bangla New Year allowances, are exempt.

The steps

• Add up the year's basic pay, festival allowance and bonus.
• The one-third exemption for private-sector salaries does not apply here.
• Add any other income to reach taxable income; the tax-free limit (৳4,00,000, higher for some categories) and the tax steps apply to it.
• Take off the rebate for any investment, then tax already deducted.

Income outside the pay order

Honoraria for teaching a class or attending a meeting are outside the pay order and taxable; enter them as "Other taxable income" in the calculator.

Choose "Government pay-scale employee" as the type of employment in the calculators and they apply these rules.