Invest your savings in such areas from where you can earn the highest return to grow your money fast. And this will help you to reach your goal quickly. So, the highest return on investment is one benefit.
And the tax benefit on your return is the second benefit of investment. You can avail tax benefit by paying lower tax or no tax on your return, or avail the tax rebate on investment.
Let’s discuss the top five investments areas according to tax law as well as how you will get the highest return from it.
Savings Certificate
It is secured as a government issued savings certificate. You will also get the highest interest compared to other available investment areas in Bangladesh.
Taxpayers will get a tax rebate on the full investment amount made during the income year. But remember that you have to hold the investment till maturity date. Otherwise, you will lose your credit facility.
In this blog, I have shortly discussed the top five investments areas in Bangladesh. You will be happy to know that I have published a book in Bangla named “Smart Money Hacks” which received a positive response from the media and readers. In this book I have discussed 29 investments areas which will give you a complete guide for saving your money to grow rich.
Treasury bond
Treasury bond also issued by the Government. So, it is secured and the interest rate is also high. you can buy treasury bonds from selected banks or from the share market as you trade listed companies’ shares.
Tax rate is five per cent on interest and you will also enjoy a tax rebate on your investment.
Life insurance
Life insurance gives financial protection to the policyholder and his family members. At maturity the return is also good and you can enjoy the tax rebate on the premium paid during the year not exceeding 10% of the policy value.
You can take policy for yourself, your spouse and children.
Deposit Pension Scheme (DPS)
DPS is popular in our country. By saving a small amount on a monthly basis, any person can receive a good amount after a period of time.
Monthly Tk 5,000 or yearly Tk 60,000 is allowable to get the tax credit from your DPS savings amount. So, it will be a good decision to fix your savings upto this ceiling and rest of the investment amount into other investment areas.
Share Market
This is the risk place for investment and the recent behavior of the market is not well. If you are interested in investing here then think for long term investment.
Dividend upto Tk 50,000 and the capital gain on sale of share are tax free for individual investors. And you will also get a tax credit facility on your investment.
You have learned about top five investments areas in Bangladesh which will give you the better return including tax rebate benefits. Now take your decision. It is wise to maintain a portfolio for your investment.
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