Black money holders to make hay

Doulot Akter Mala | Published: June 14, 2019 09:20:34 | Updated: June 14, 2019 13:39:47

Picture used for illustrative purpose only

Black money holders will be able to invest in economic zones and high-tech parks by paying a flat 10 per cent tax in the upcoming fiscal year (FY).

The tax authority will not ask any question on the source of the money invested in establishing industries in industrial parks.

According to the proposed budget, the opportunity will remain valid until June 30, 2024.

A new provision has been incorporated in the Finance Bill-2019 in this connection.

Also, people will be able to invest their undisclosed income while purchasing land, flats or apartments and can enjoy reduced tax rate.

For investing in land, the undisclosed income holders will have to pay tax ranging from Tk 500 to Tk 15,000 per square metre on the basis of area.

In the budget, the government also revised the existing tax amount downward in case of flats and apartments purchased by black money holders.

If they skirt the opportunity, undeclared income holders would have to pay tax at a rate of 100 per cent for per square metre on that income on detection by taxmen.

Tax amount has been revised downward to Tk 4,000, Tk 5,000 and Tk 7,000 per square meter for building apartments or buying lands in the areas of Gulshan model town, Banani, Baridhara, Motijheel and Dikusha commercial areas of Dhaka on plinth area on the basis of their size up to two hundred square metres and over two hundred square metres.

The tax amount for other areas for purchasing flat and apartments was reduced on the basis of their size.

Officials said with the revision, people will be encouraged to buy small apartments below 1,300 square feet.

At present, Income Tax department does not raise any question about the sources of fund invested in the purchase or construction of any apartment or flat, and building if taxes were paid at certain rates on such investments.

Taxpayers are not availing this opportunity due to the higher tax rates.

The finance minister proposed the decrease in existing tax rates to encourage the taxpayers for voluntary disclosure of purchase or construction of any apartment or flat, and building in their tax returns.

He expressed the hope taxpayers will avail this opportunity and will voluntarily reveal their undisclosed investment in purchasing or constructing apartments, flats, and buildings in their tax files so as to be drawn into the tax net.



Share if you like