The deadline for filing income tax returns in Bangladesh for the year 2026 has been set as 28 February 2026. For the first time, submission of tax returns is compulsorily online, as the paper-based filing system has been completely discontinued. Despite the National Board of Revenue (NBR) extending the deadline three times this year, a significant number of taxpayers are still preparing to submit their returns at the last moment.
Under the 2026 tax regime, personal income up to BDT 350,000 remains fully exempt from taxation. Additionally, the government has introduced five new tax relief measures aimed at providing targeted financial benefits. These exemptions cover gifts from siblings, agricultural income, income for private-sector employees, pension income, and expenses for critical medical treatments.
Overview of New Tax Relief Measures
| No. | Type of Relief | Description | Conditions / Remarks |
|---|---|---|---|
| 1 | Gifts from Siblings | Gifts or donations received from brothers or sisters are tax-exempt | For amounts exceeding BDT 500,000, payment through a bank channel is mandatory |
| 2 | Agricultural Income | Income derived from agricultural activities | Exempt up to BDT 500,000 |
| 3 | Private-Sector Employees | Maximum deductible amount from taxable income | Raised from BDT 450,000 to BDT 500,000, includes allowances and benefits |
| 4 | Pension Income | Income from National Pension Authority or Universal Pension Scheme | Approximately 200,000 beneficiaries expected |
| 5 | Critical Illness Medical Expenses | Costs for kidney, liver, cancer, heart, brain surgeries, and prosthetic replacements | Reimbursed amounts by employers are tax-exempt |
Detailed Explanation
1. Gifts from Siblings: Previously, only gifts from spouses, parents, and children were exempt. The new rules extend tax exemption to donations received from brothers and sisters, simplifying intra-family transfers.
2. Agricultural Income: To encourage growth in agriculture and commercial farming, income from agricultural activities up to BDT 500,000 is now tax-free. This measure aims to boost productivity and contribute to national economic growth.
3. Private-Sector Employees: The maximum deductible amount from taxable income for private-sector employees has increased from BDT 450,000 to BDT 500,000, encompassing allowances and benefits. This change ensures employees retain a higher portion of their income.
4. Pension Income: Pensions received through the National Pension Authority or the Universal Pension Scheme are fully exempt from taxation, reducing financial pressure on retirees.
5. Critical Illness Medical Expenses: For serious medical conditions, including organ transplants and major surgeries, employer-reimbursed expenses are now tax-exempt. This provides essential financial protection for employees facing life-threatening illnesses.
Taxpayers filing their returns online in 2026 can fully utilise these exemptions, ensuring significant financial benefits while accurately managing their taxable income.