2025-26
Income Tax Calculator BD
NBR 2025-26 slabs, exemptions, rebate, minimum tax & AIT.
TDS · VDS · TIN status · Mushak 6.3
TDS & VDS Withholding Tax Calculator Bangladesh 2026
Estimate TDS and VDS on vendor bills in one place. Enter the bill value, payment type, TIN status, and Mushak 6.3 status to see what should be withheld and what the vendor should actually receive.
Built as a working reference for FY 2025-26. Always confirm final filing position with current NBR guidance or a tax adviser.
IT Act 2023
Built around current withholding categories
VAT logic included
Shows VAT and VDS separately
TIN-sensitive rates
Reflects the usual higher rates without TIN
Useful for payment checks
Helps review what should be withheld before release
Step By Step
How to Use This Calculator
6 steps
- Choose the payment category that best matches the invoice, such as supply, service, rent, transport, or professional fee.
- Enter the base bill amount before VAT.
- Use the VAT rate shown on the invoice or the rate usually applied to that service.
- Mark whether the vendor has a valid TIN, because that often changes the TDS rate.
- Mark whether Mushak 6.3 was issued. In many cases, that affects whether VDS should be withheld.
- Review gross bill, TDS, VDS, and net payable before releasing payment.
Worked Example
Worked Example: IT Consulting Bill
Use this sample to sanity-check your inputs and understand what the final result represents.
- 1Base bill: BDT 1,00,000.
- 2VAT at 15%: BDT 15,000. Gross bill: BDT 1,15,000.
- 3TDS at 10% on the base bill: BDT 10,000.
- 4VDS on the VAT portion: BDT 15,000.
Final Result
The vendor receives BDT 90,000, while BDT 25,000 is withheld and later deposited to NBR.
Methodology
TDS & VDS Withholding Logic
This section explains the calculation logic, assumptions, and source material used to make the result more trustworthy and easier to verify.
1. VAT: - VAT amount = Base bill x VAT rate - Gross bill = Base bill + VAT
2. TDS: - TDS = Base bill x Applicable TDS rate - Rate depends on payment category and often on TIN status
3. VDS: - VDS usually follows the VAT amount where withholding applies
4. Net payable: - Net payable = Gross bill - TDS - VDS
Bangladesh TDS Rate Reference Table
A quick working reference for common categories. For filing, always confirm the latest NBR circular or your adviser's interpretation.
| Payment category | Section | With TIN | Without TIN |
|---|---|---|---|
| Supply of goods / contractor | S.86 | 5% | 7% |
| Service charge | S.89 | 10% | 15% |
| Professional service | S.89A | 10% | 12% |
| House rent | S.92 | 5% | 5% |
| Advertising / media | S.120 | 4% | 6% |
Disclaimer: This tool is for review and planning. Actual withholding treatment depends on the legal status of the payer, the exact invoice, and the latest NBR position. Use it as a check, not as a substitute for final tax advice.
Frequently Asked Questions
What is TDS in Bangladesh?
TDS is tax deducted at source. When a qualifying payer makes certain payments, part of the bill is withheld and deposited to NBR instead of being paid in full to the vendor.
What is VDS and how is it different from TDS?
VDS is VAT deducted at source. TDS is income-tax withholding on the base bill, while VDS is withholding of the VAT portion when the transaction and invoice setup require it.
Why does Mushak 6.3 matter?
In many real-world cases, VDS should only be considered when the vendor issues a proper Mushak 6.3 VAT invoice. Without that invoice, the handling is usually different.
Does TIN status change the withholding rate?
Yes, often it does. Many categories apply a higher TDS rate when the vendor does not have a valid TIN.