The National Board of Revenue (NBR) has introduced a provision allowing taxpayers to voluntarily declare the actual prices of flats and plots. This opportunity is available to any taxpayer who wishes to declare the true value without any inquiry. The provision is detailed in the NBR's budget proposal.
According to the budget proposal, regardless of any existing laws, individuals can voluntarily declare the true value of investments or purchases in flats and plots without facing any questions. If the actual purchase price of land, buildings, or apartments exceeds the documented value, the taxpayer must pay income tax on the undisclosed additional amount at the applicable regular rate.
For example, if an individual purchases a flat for Tk 2 crore but documents it at Tk 1 crore, they can now declare the remaining Tk 1 crore in their tax return and pay the applicable tax. This will establish the true value of the flat in the tax records.
Some believe this provision also offers an opportunity to legitimize black money earned through illegal means. The NBR's directive further states that if the actual sale price of land, buildings, or apartments exceeds the documented value, the taxpayer must pay capital gains tax on the undisclosed additional amount at the applicable rate.
However, if any action is taken under this law before the voluntary declaration, the declaring taxpayer must pay an additional 20% tax on the undisclosed additional purchase or sale value.
