How is the tax rebate worked out?

Last updated

For assessment year 2026-27 the investment rebate is the lowest of three amounts: 3% of total income, 10% of eligible investment, or ৳7,50,000. The rebate comes straight off your tax.

Which investments count

  • life insurance premiums;
  • contributions to a provident fund;
  • savings certificates and government securities, up to ৳5,00,000 a year (more);
  • DPS, up to ৳1,20,000 a year (more);
  • pension schemes, listed shares and approved donations.

Keep in mind

  • The rebate comes off the tax, not off the income.
  • After the rebate the tax does not fall below the minimum tax (৳5,000) when income is above the tax-free limit.
  • The investment must be made within the income year (July to June).

The calculators' "Smart Suggestions" show how much more you would need to invest for the full rebate.