Sunday, 5th April 2026
Khabor Wala Desk
Published: 1st February 2026, 4:22 AM
Taxpayers in Bangladesh have until 28 February 2026 to submit their income tax returns. This year, online submission is mandatory, as the traditional paper-based system has been discontinued. Although the authorities previously granted three separate extensions, many taxpayers are still preparing to file at the last minute.
For 2026, individual income up to BDT 350,000 will remain tax-exempt. In addition, the government has introduced five new tax relief measures, designed to provide targeted financial benefits. These measures cover donations from siblings, agricultural income, earnings of private-sector employees, pension income, and medical expenses related to critical illnesses.
| No. | Type of Relief | Brief Description | Conditions / Notes |
|---|---|---|---|
| 1 | Donations from Siblings | Gifts or donations received from brothers or sisters are now tax-exempt | Mandatory banking channel if donation exceeds BDT 500,000 |
| 2 | Agricultural Income | Income derived from farming activities | Exempt up to BDT 500,000 |
| 3 | Private Sector Employees | Maximum deductible amount from taxable income | Increased from BDT 450,000 to BDT 500,000 |
| 4 | Pension Income | Income received under the National Pension Authority or Universal Pension Scheme | Approximately 200,000 beneficiaries |
| 5 | Critical Illness Medical Expenses | Includes kidney, liver, cancer, heart, brain surgeries, and prosthetic replacements | Amounts reimbursed by the employer are tax-exempt |
1. Donations from Siblings: Previously, only gifts from spouses, parents, and children were tax-exempt. With the new rule, donations from siblings are also exempt, facilitating smoother family wealth transfers.
2. Agricultural Income: To encourage investment in agriculture and commercial farming, income up to BDT 500,000 is now exempt from tax. This initiative aims to boost productivity and economic growth in the sector.
3. Private Sector Employees: The maximum deductible amount for calculating taxable income has been raised from BDT 450,000 to BDT 500,000, covering allowances and other benefits. This adjustment increases disposable income for employees.
4. Pension Income: Pension receipts from the National Pension Authority and the Universal Pension Scheme are now fully tax-exempt, reducing financial strain on retirees.
5. Critical Illness Medical Expenses: For employees, medical expenses related to severe conditions—including organ surgeries and replacements—reimbursed by employers are now tax-exempt. This ensures financial protection for those facing life-threatening illnesses.
Taxpayers submitting online returns for 2026 can now take full advantage of these new reliefs, thereby securing significant financial benefits and optimising their taxable income.
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