What “tax and limits” means
Sanchayapatra profit is income, and income is taxed. The government deducts this tax at the moment it pays the profit; this is called tax deducted at source. So the full profit at the advertised rate does not arrive in your bank account, only what is left after tax.
Limits come in two forms. First, the purchase ceiling on how much one person can buy. Second, a paperwork threshold: above a certain amount you need proof of having filed a tax return. On top of that there are rate tiers: if your total holding is large, the profit rate is slightly lower.
Say Nazma Begum, who is retired, is due Tk 1,000 a month in sanchayapatra profit. After 10% tax, Tk 900 reaches her account. Her total income for the year is below the tax-free threshold, so she wonders, “I shouldn’t owe any tax at all, so why was Tk 100 taken?” Under the current rules she can file a return and claim that excess back. The numbers are only an example.
Why it matters to an investor
- To see the profit you actually receive: compare after-tax amounts, not headline rates.
- Not to miss money you can reclaim: the deduction is now an advance tax, so if your income is low there is a way to get the excess back through a return.
- To be ready for extra tax: if your income is high, the opposite can happen and you may owe more in your return.
- To avoid being turned away: if you don’t know the purchase limits and the return-proof rule, you may be sent back from the bank or post office.
Tax at source on profit: how much is deducted
Section 163 of the Income Tax Act 2023 and each year’s Finance Act set how much is deducted from sanchayapatra profit. In recent years it was 5% on smaller total holdings and 10% on larger ones; “smaller” has meant up to Tk 5 lakh at one time and up to Tk 10 lakh later. In early 2026 a flat 10% deduction for everyone was reported, and the Finance Bill 2026 proposed a 10% advance tax on all sanchayapatra.
Rates and thresholds often change in the budget, sometimes without a separate announcement. How much was deducted from your profit is shown on the tax deduction certificate issued through the Department of National Savings; that certificate is your proof when filing a return.
Final tax versus advance tax
Previously, tax deducted from sanchayapatra profit was a “final tax”. Once deducted, that profit was settled: no refund if your income was low, and no extra tax if it was high. Under the Finance Act 2026, from fiscal year 2026–27 it is an “advance tax”.
Advance tax means the profit is added to your total income for the year, tax is worked out at your own rate, and the amount already deducted is set against it. Someone whose income is below the tax-free threshold can get a TIN, file a return and claim back the excess; reports say the refund should reach their bank account within 120 days of filing. Someone in a high tax bracket used to stop at 10% on this profit; now they may owe the rest in their return.
Purchase limits, rate tiers and paperwork
- Purchase limits: each scheme has its own ceiling, and a combined limit of Tk 50 lakh in a single name and Tk 1 crore jointly has been reported for the three general schemes. Per-scheme limits are in the “types and terms” lesson.
- Rate tiers: since January 2025, one rate applies if your total across all schemes is up to Tk 7.5 lakh, and a slightly lower rate above that.
- Proof of return: according to July 2025 reports, no proof of a filed tax return is needed for total purchases up to Tk 10 lakh, but it is needed above that. The threshold used to be Tk 5 lakh.
- Tax rebate: investment in government securities, including sanchayapatra, counts towards the investment rebate up to a limit; details are in the rebate lesson.
Worked example
- Say two people each earn Tk 60,000 a year in profit from Tk 5,00,000 of sanchayapatra. 10% tax at source takes Tk 6,000, and Tk 54,000 reaches them.
- The first person’s total income is below the tax-free threshold. Their real tax is zero, so they can file a return and claim back the Tk 6,000.
- The second person has a high other income; say all this profit falls in a 25% bracket. Tax comes to Tk 15,000; after the Tk 6,000 already deducted, they pay another Tk 9,000 with their return.
Result: the same certificates and the same deduction, but a different final bill. The deduction is now an advance, not the last word. The rates, bracket and amounts are assumed for the example and can change with each year’s Finance Act.
Common mistakes
- Still treating the deduction as final: not claiming a refund when income is low, or not paying the rest when income is high.
- Doing the sums at the headline profit rate without taking tax out.
- Going to buy with last year’s tax rate or paperwork threshold in mind. These often change in the budget.
- Not collecting the tax deduction certificate, and so being unable to claim the deducted tax in your return.
The tax deducted from sanchayapatra profit is now an advance: the final sum is settled on your total income, and that can mean either a refund or extra tax.