The Comptroller General of Accounts (CAG) has said income tax of the government officials to be deducted at source whose monthly basic salary exceeds the prescribed tax-free limit and who receive salaries and allowances under the IBAS++ system.
It will be effective in the current fiscal year. In a letter sent by CAG office to Secretary of the Finance Division on Monday following a similar letter from the chairman of the National Board of Revenue (NBR) regarding the existing rules.
The letter states that the annual income of male government officials and employees whose monthly basic salary is Tk 26,785 and female officials and employees whose monthly basic salary is Tk 30,357 or more is exceeding the tax-free limit.
As a result, tax will have to be deducted at source from their salary bills as per the Income Tax Act 2023. So the Comptroller and Auditor General has requested the concerned officials of all accounting branches to ensure the necessary deductions in accordance with the provisions of the Income Tax Act while preparing the monthly salary bill.
According to Income Tax Act, the tax-free income limit for the current 2025-26 income year is set at Tk 375,000 per year for male taxpayers and Tk 425,000 for female and elderly taxpayers.
Accordingly, the average monthly salary of male officers and employees subject to tax, including two festival bonuses, stands at Tk 26,785 per month. On the other hand, in the case of female officers and employees, it is Tk 30,357.
Therefore, the officers and employees whose salaries and allowances are being paid through iBas++, whose salaries and allowances are above the basic salary limit or above, have been requested to deduct tax at source as per the provisions of the Income Tax Act 2023.
