How Tk5 lakh tax exemption can be availed by salaried individuals

These exemptions help lower the taxable income and reduce the overall tax burden on salaried individuals

TBS Report

02 June, 2025, 03:25 pm

Last modified: 02 June, 2025, 04:11 pm

Illustration: Duniya Jahan/TBS

The interim government has proposed raising the highest allowable exemption for salaried individuals in tax computation from Tk4.5 lakh to Tk5 lakh.

This means salaried taxpayers can now deduct up to Tk5 lakh in approved allowances and benefits, such as house rent, medical expenses, and conveyance, from their total income before calculating income tax.

These exemptions help lower the taxable income and reduce the overall tax burden on salaried individuals.

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The proposal was made in the national budget of Tk7,89,999 crore for FY26, which Finance Adviser Salehuddin Ahmed placed via a pre-recorded speech telecast today (2 June).

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