To compute Burrows-Wheeler Transform (BWT), one usually builds a suffix array (SA) first, and then obtains BWT using SA, which requires much redundant working space. In previous studies to compute BWT directly [6, 13], one constructs BWT incrementally, which requires O(n log n) time where n is the length of the input text. We present an algorithm for computing BWT directly in linear time by modifying the suffix array construction algorithm based on induced sorting [16]. We show that the working space is O(n log σ log logσ n) for any σ where σ is the alphabet size, which is the smallest among the known linear time algorithms.