Bd Income Tax

---
name: bd-income-tax
description: >-
  Compute and explain Bangladesh individual (personal) income tax under the
  Income Tax Act 2023 and the current Finance Act — tax slabs, tax-free
  thresholds (including women, senior citizens, persons with disabilities,
  third-gender, freedom fighters), salary exemption, the Section 78 investment
  rebate, minimum tax, net-wealth surcharge, TDS credit, filing/PSR rules, Tax
  Day, and penalties. Use this skill whenever the user mentions Bangladesh
  income tax, NBR, TIN, e-return / etaxnbr, an assessment year vs income year,
  salary tax computation, investment rebate, surcharge, or asks to calculate an
  individual's Bangladeshi tax for any year — even if they don't say "skill".
license: MIT
metadata:
  author: Ariful Islam
  source: https://github.com/arifulislamat/bd-income-tax-skills
---

# Bangladesh individual income tax

Compute and explain **personal/individual** Bangladesh income tax. Scope is individuals
only — **not** corporate tax or VAT. All arithmetic is done by `scripts/tax_calc.py`; never
hand-calculate.

## 1. Determine the assessment year first

Bangladesh fiscal/income year runs **1 Jul – 30 Jun**; the income year maps to the
*following* assessment year (AY).

| Income year | Assessment year | Governing law | General threshold |
|---|---|---|---|
| 1 Jul 2024 – 30 Jun 2025 | **AY 2025-26** | Finance Ordinance 2025 | 350,000 |
| 1 Jul 2025 – 30 Jun 2026 | **AY 2026-27** (primary) | ITA 2023 + Finance Act 2026 | 400,000 |
| 1 Jul 2026 – 30 Jun 2027 | **AY 2027-28** (legislated) | mirrors AY 2026-27 (Finance Act 2026 multi-year schedule) until the Finance Act 2027 | 400,000 |

- **Default:** if the user gives a current salary/income with no year, assume income year
  FY 2025-26 → **AY 2026-27**.
- For **"what will I owe next year"** questions (e.g. after a salary increment), use
  **AY 2027-28** — its figures are legislated (same Tk 400,000 schedule) but flag them as an
  estimate, subject to the Finance Act 2027.
- **State the assessment year and governing law at the top of every answer.**
- The Finance Act 2026 raised the general tax-free threshold to **Tk 400,000** on passage (up
  from the Tk 375,000 originally proposed) — use 400,000 for AY 2026-27.

## 2. Read the right reference file (progressive disclosure)

Read **only** the file for the relevant year, plus shared files as needed:

- `references/ay-2026-27.md` — AY 2026-27 slabs, thresholds, salary cap, rebate, gratuity, min tax, surcharge.
- `references/ay-2025-26.md` — prior-year figures (note the 5% slab still applies that year).
- `references/ay-2027-28.md` — next year; legislated to mirror AY 2026-27 (flag as estimate).
- `references/procedure.md` — the ordered 9-step procedure + worked example.
- `references/filing.md` — TIN, PSR, e-return, forms, Tax Day, penalties.
- `references/sources.md` — source keys; cite the source for every rate/threshold.

## 3. Always run the calculator for any number

Never compute tax yourself — run the bundled `scripts/tax_calc.py`. When the skill is installed
as a plugin its files sit in a version-numbered folder, so reference the script by its full
path rather than `cd`-ing into that folder (this keeps the command stable across versions). Use
`$CLAUDE_PLUGIN_ROOT` when it is set:

```
python3 "$CLAUDE_PLUGIN_ROOT/skills/bd-income-tax/scripts/tax_calc.py" --year 2026-27 --category general --salary 800000 [...]
```

If `$CLAUDE_PLUGIN_ROOT` is not set, run `python3 scripts/tax_calc.py …` from this skill's own
directory. Or import `compute_tax(...)`. Key inputs: `--year`, `--category`
(`general|female|senior|disabled|third_gender|freedom_fighter|july_warrior`), income heads
(`--salary` gross, `--rent`, `--agriculture`, `--business`, `--capital-gains`, `--financial`,
`--other`), `--investment`, `--location` (AY 2025-26 min tax: `dhaka_ctg_cc|other_cc|other`),
`--new-taxpayer`, `--net-wealth`, `--extra-car`, `--big-house`, `--tds`, `--filed-late`,
`--gross-receipts`, `--gratuity` (with `--gratuity-unapproved`), `--vehicle-advance-tax`. Run
`--selftest` to confirm the eight canonical results.

The script returns every intermediate (threshold, salary exemption, total income, slab
breakdown, gross tax, rebate + its three candidates, tax after rebate, minimum tax, surcharge,
TDS credit, net payable).

## 4. Present the answer in plain language (the default)

Write for **anyone** — assume no tax, finance, or legal background, whatever the person's age
or education. **Match the user's language** (English → English, Bangla → Bangla).

Every answer must:
- **Open with the bottom line** in one bold sentence, with the **monthly equivalent** —
  e.g. **"You owe about ৳73,750 in income tax — roughly ৳6,150 a month."**
- **Show the income year *and* assessment year (and which law applies) in one plain line**, so
  the person clearly sees which year and which rules the answer is based on.
- **Bold the important numbers** (taxable income, each step's tax, the total).
- **Explain the slabs as steps** — "tax is charged in steps, like rungs on a ladder."
- When a rebate could lower the bill, end with a **"what-if" savings ladder** — a small table
  of a few round investment amounts → the 15% rebate → the resulting tax, from ৳0 up to the
  amount that brings the tax to ৳0 (scale the rows to the person). Then invite their actual
  investment/TDS figures, and close with a **plain disclaimer**. Keep `[FA-2026]`-style source
  tags **out** of the plain answer.

**Default layout — headline + table + tip:**

```
**You owe about ৳13,333 in income tax — roughly ৳1,111 a month.**

Income year **1 Jul 2025 – 30 Jun 2026** → **Assessment Year 2026-27** (filed under the
Income Tax Act 2023, with the 2026-27 rates set by the Finance Act 2026).

| Step | Amount |
|---|---|
| Salary for the year (60,000 × 12 + 80,000 bonus) | ৳800,000 |
| − Tax-free third of salary (⅓, capped at 500,000) | −৳266,667 |
| **Income that gets taxed** | **৳533,333** |
| First 400,000 — 0% | ৳0 |
| Next 133,333 — 10% | ৳13,333 |
| **Total tax for the year** | **৳13,333** |

💡 **You can pay less.** Money put into approved savings (DPS, life insurance, government
savings certificates, listed shares) comes back as a 15% tax discount. Here's how saving more
lowers this year's tax:

| If you invest in approved savings | You get back (15%) | Your tax becomes |
|---|---|---|
| ৳0 | ৳0 | ৳13,333 |
| ৳50,000 | ৳7,500 | ৳5,833 |
| **~৳88,900** | **৳13,333** | **৳0** |

Tell me your investment amount and any tax your employer already deducted (TDS), and I'll give
you the final figure.

*General information, not professional tax advice — confirm with the NBR (nbr.gov.bd) or a
tax advisor before filing.*
```

**If the person is confused or asks for it simpler, switch to the receipt layout** — one
aligned column, top to bottom, total highlighted at the bottom:

```
Bangladesh income tax · income year 1 Jul 2025–30 Jun 2026 · Assessment Year 2026-27

Salary for the year                         ৳800,000
  (60,000 × 12  +  80,000 bonus)
Tax-free third of salary                    −266,667
                                          ──────────
Income that is taxed                        ৳533,333

Tax, charged in steps
  First  400,000      0%                           0
  Next   133,333     10%                      13,333
                                          ──────────
➡  TOTAL TAX FOR THE YEAR                   ৳13,333
   ≈ ৳1,111 per month
```

**Only for professionals, or when explicitly asked for the official breakdown:** give the full
numbered procedure (`references/procedure.md` steps 1–9) with per-rate `[FA-2026]` /
`[ITA-2023]` citations and separate tables for slabs, rebate candidates, and surcharge bands.

## 5. Reproduce the worked numbers

```
python3 scripts/tax_calc.py --year 2026-27 --salary 1425600 --rent 197070 --investment 465000
```
Salary 1,425,600 + 56.25% share of commercial rent (net 197,070), investment 465,000 →
total income **1,147,470**, gross tax **99,494**, rebate **34,424**, tax after rebate
**65,070**.

## 6. Guardrails

- Individual tax only; deterministic script for all math; **no network calls**.
- Every numeric output states the **income year and assessment year**; keep source tags out of
  the plain answer, but give them (or the full procedure) whenever the user asks.
- Figures marked **⚠️ unverified** in the references (DPS cap, agriculture deemed-cost %,
  solely-agricultural exemption, delay-interest rate, non-approved-fund gratuity) are **not**
  relied on by the calculator — present them only with the caveat to confirm against the
  gazetted Act.
- **Credits are not deductions.** Salary TDS (`--tds`) is refundable; vehicle advance tax
  (`--vehicle-advance-tax`, Sec 153) is a *non-refundable* credit — any excess is forfeited, not
  refunded, and owning a car does **not** lower taxable income. See `references/filing.md`.

## 7. Always close with the disclaimer

> Informational only; not professional tax advice. Verify against the current gazetted
> **Finance Act 2026** and NBR circulars.