Dhaka: The government has extended the tax-free income limit for individual taxpayers at Tk 2.5 lakh from existing Tk 2.2 lakh in the next fiscal year 2015-16.

It also proposed that ceiling for other categories like thresholds of tax-free income for women and aged people (65-years-old and above), physically challenged and wounded freedom fighters to be increased.

Finance minister AMA Muhith made the disclosure while unveiling the budget for the fiscal year 2015-16 in Parliament on Thursday.

He said the changes were made considering the inflation and rise in public expenditure.

The limit for female and senior citizens was raised at Tk 3 lakh from the existing Tk 2.75 lakh, and for physically challenged at Tk 3.75 lakh from the existing Tk 3.5 lakh.

For war wounded gazetted freedom fighters, the rate was proposed at Tk 4.25 lakh from the existing Tk 4 lakh.

Other than the tax-free income threshold, the income tax slabs would be 10% tax on Tk 4 lakh income, 15% for next Tk 5 lakh, 20% for next Tk 6 lakh, 25% for next Tk 30 lakh and 30% for above which is Tk 47.5 lakh.