Dhaka, Feb. 7 -- The government has reduced the tax deducted at source (TDS) on profits from savings certificates, or Sanchaypatra, to 5 percent from 10 percent for investments of up to Tk 5 lakh, officials said.

The National Board of Revenue (NBR) issued a clarification following complaints from investors who alleged that banks and savings offices were incorrectly deducting 10 percent tax on profits from smaller investments.

According to the NBR, the reduced tax rate applies when an individual's total investment across all types of savings certificates does not exceed Tk 5 lakh.

For investments above this threshold, a 10 percent TDS will remain applicable, under Section 105 of the Income Tax Act 2023.

The Department of National Savin...