Personal Income Tax Rates 2023-24 – In the Finance Act of 2023, the tax-free income threshold for male taxpayers has been increased to Tk. 3.50 lakh from the current Tk. 3.00 lakh. For females and senior citizens above 65 years, the tax-free income threshold has been increased to Tk. 4.00 lakh from Tk. 3.50 lakh. The noteworthy point is that the income tax exemption threshold has finally been raised after 2020. The increase in the tax-free limit by Tk. 0.50 lakh will alleviate some of the cost burdens on taxpayers who are already facing significant challenges due to the high inflation caused by the Russia-Ukraine war, although the overall tax burden will only be slightly reduced.
Personal Income Tax Rates 2023-24 - What is the tax-free rate for the individual assessee?
Here is the list of tax-free income for the year 2023-2024, applicable for personal income tax. Tax-free income threshold varies depending on the taxpayer’s gender, age, and certain special circumstances (Personal Income Tax Rates 2023-24).
| Particulars of Income | Tax Rate |
| On the first BDT 350,000 of total taxable income of male assessee | Nil |
| On the first BDT 400,000 of total income of female assessee | Nil |
| On the first BDT 400,000 of total taxable income of persons aged 65 years & above | Nil |
| On the first BDT 475,000 of total taxable income of *third gender and physically challenged assessee | Nil |
| On the first BDT 500,000 of total taxable income for gazetted war wounded freedom fighters | Nil |
| * Third gender assessee accommodated by the Finance Act 2023 |
What changes were made to the tax-free limit by the Finance Act of 2023?
| Income | AY 2022-2023 | AY 2023-2024 | Remarks |
| For male assessee | 300,000 | 350,000 | Tax free limit increased by 50k |
| For female assessee | 350,000 | 400,000 | Tax free limit increased by 50k |
| For aged person (65 years & above) | 350,000 | 400,000 | Tax free limit increased by 50k |
| For third gender and physically challenged assessee | 450,000 | 475,000 | Tax free limit increased by 25k |
| For gazetted war wounded freedom fighters | 475,000 | 500,000 | Tax free limit increased by 25k |
Personal Income Tax Rates 2023-24 - Complete slab
Here is the complete list of Personal Income Tax Rates for the assessment year 2023-24.
| Particulars of Income | Rate of Tax |
| On the first BDT 350,000 of total taxable income of male assessee (BDT 400,000 for female & senior assessee, BDT 475,000 for third gender and physically challenged assessee, BDT 500,000 for gazetted war-wounded freedom fighters ) | Nil |
| On the next 100,000 of total taxable income | 5% |
| On the next 300,000 of total taxable income | 10% |
| On the next 400,000 of total taxable income | 15% |
| On the next 500,000 of total taxable income | 20% |
| On the balance total taxable income | 25% |
Minimum Tax
Minimum Tax is also an important elements of Personal Income Tax Rates 2023-24. This specific category of minimum tax is relevant solely to individual assesses and is contingent upon the assessee’s geographical location. It becomes applicable only when the taxable income of the assessee exceeds the tax-free limit. Here is the rate of minimum tax based on the location, as per Finance Act 2023:
| Location of the assessee | Taka |
| Assessee residing in Dhaka (both North & South) and Chattogram City Corporation area | 5,000 |
| Assessees residing in any other City Corporation area | 4,000 |
| Assessees residing in any area other than City Corporation area | 3,000 |
Conclusion - Personal Income Tax Rates 2023-24
This is the rate of personal income tax for the assessment year 2023-2024. Please note government increased the tax-free limit by 50k in 2023.
Personal Income Tax Rates 2023-24 - Source/ Reference:
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