Tax at Source on Bank Interest

On ৳10,000 of interest with PSR, source tax is ৳1,000 and you receive ৳9,000. Without PSR it is ৳1,500; for a company it is ৳2,000. Work it out below.

Bank interest / profit

৳

Proof of return submission (PSR)

Depositor

Tax at source

৳1,000

You receive: ৳9,000

Interest / profit: ৳10,000
Tax rate: 10%
Tax at source: ৳1,000
You receive: ৳9,000

On ৳10,000 of interest at 10%, source tax is ৳1,000; you receive ৳9,000.

Rent TDS follows a separate rule — check whether you fall in the “specified person” scope that must deduct it; ask the landlord or office if unsure.

How this was calculated

Source tax = ৳10,000 × 10% = ৳1,000
Net = ৳10,000 − ৳1,000 = ৳9,000

Calculated at: https://xn--d6bxcvd.xn--54b7fta0cc/en/source-tax/

How to use

Enter the bank interest or profit above.
Choose whether you have proof of return submission (PSR), and individual or company.
See the source tax, the rate, and what you receive.

Formula

Depositor	Source tax rate
Individual, with PSR	10%
Individual, without PSR	15%
Company (either way)	20%

Source tax = interest × rate; net received = interest − source tax.

Example

৳10,000 interest, individual, with PSR: tax = 10,000 × 10% = ৳1,000; net = 10,000 − 1,000 = ৳9,000.

Same interest, no PSR: tax = 10,000 × 15% = ৳1,500, net ৳8,500. For a company, tax = ৳2,000, net ৳8,000.

Things to watch

PSR means proof of return submission: showing it cuts an individual’s tax from 15% to 10%.
Excise duty is separate: duty applies once a year to the highest balance — work it out with the excise duty calculator.
Fiscal year 2026-27: these rates cover July 2026 – June 2027.

Frequently asked questions

What is PSR?

PSR means proof of submission of return — evidence that you filed your income tax return. For bank interest, an individual showing PSR pays 10% source tax, otherwise 15%. For a company the rate is always 20%, with or without PSR.

How much tax applies to a company's interest?

20%, whether or not it has PSR. On ৳10,000 of interest a company pays ৳2,000 source tax and receives ৳8,000.

Is excise duty deducted on top of this?

Possibly, but it is calculated separately. Source tax applies to the interest or profit; excise duty applies once a year to the year's highest balance (exempt up to ৳4 lakh in FY 2026-27). See the excise duty calculator for that figure.

Is there source tax on house rent too?

Yes, but under a separate rule (about 10% on rent). This calculator covers bank interest only. For rent, check whether you must deduct — i.e. whether you fall in the “specified person” scope; ask the landlord or office if unsure.

Which fiscal year are these rates for?

FY 2026-27 (July 2026 – June 2027). Rates can change with the budget, so check for updates around June–July.

Also searched as

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