Investing in approved products doesn't just grow your money — it can cut your income tax through the investment rebate.
How the rebate is calculated
Your rebate is the lowest of these three:
- 15% of your eligible investment
- 3% of your taxable income
- ৳10,00,000 (the absolute cap)
The result is subtracted directly from your tax bill.
What counts as eligible investment?
Common options include:
- DPS (up to ৳1,20,000 per year counts)
- Sanchayapatra
- Life insurance premiums
- Approved shares, mutual funds and bonds
A quick example
Suppose your taxable income is ৳8,00,000 and you invested ৳1,00,000 across DPS and Sanchayapatra:
- 15% of ৳1,00,000 = ৳15,000
- 3% of ৳8,00,000 = ৳24,000
- Cap = ৳10,00,000
The lowest is ৳15,000, so your tax is reduced by ৳15,000.
Try it yourself
Open the Income Tax Calculator and enter your eligible investment to see the rebate applied. Planning your saving? See DPS and Sanchayapatra.
General guidance only, not tax advice. Verify the current rules with the NBR or a qualified tax professional.