Bangladesh: Law of Property Tax in Bangladesh

The Legislation: 

The purpose of the law of property Tax is to collect revenue for the government exchequer on the hand and bring transparency in property sector of the economy of the country. 

The law of property tax illustrated under section 19AAAAA as envisaged in the Income Tax Ordinance are as under: 

Section 19AAAAA: 

Special tax treatment in respect of undisclosed property and cash etc. 

• Sub-section (1): 

Notwithstanding anything contained in this Ordinance or any other law for the time being in force,no question as to the source of any undisclosed movable property and immovable property shall be raised by any authority if an individual assessee pays, before the submission of return or revised return of income during the period between the first day of July 2020 and the 30th day of June 2021 (both days inclusive) tax at the rate specified in this section as prescribed by the government.

Movable property: 

For the purpose of the legislation movable property includes cash deposits, bank deposits, financial schemes and instruments, all kinds of deposits or saving deposits, saving instruments and certificates, possessed by any individual taxpayer anywhere in Bangladesh. 

Immovable property: 

For the purpose of this section immovable property includes and land, building or apartment possessed by any individual taxpayer anywhere in Bangladesh.

• Sub-section (2): 

The provision of this section shall not apply to cases where any proceeding under any provisions of this Ordinance or any other law has been drawn on or before the day of submission of return or revised return. 

The law of property tax illustrated under section 19BBBBB as envisaged in the Income Tax Ordinance are as under: 

Section 19BBBBB: 

Special tax treatment in respect of investment in building, apartment etc. 

• Sub-section (1): 

Notwithstanding anything contained in this Ordinance, source of any sum invested by any person, in the construction or purchase of any building or apartment shall be deemed to have been explained, if the assessee pays before the assessment for the relevant assessment year in which the investment is completed tax at the rate specified in this section as prescribed by the government. 

• Sub-section (2): 

The rate of tax mentioned in sub-section (1) shall be twenty percent higher in case where the assessee already owns a building or apartment in the City Corporation area before such investment is completed or the assessee makes such investment in two or more building or apartments. 

• Sub-section (3): 

The rate of tax mentioned in sub-section (1) shall be one hundred percent higher in case, where 

• A notice under section 93 has been issued before submission of such return of income for the reason that any income, asset or expenditure has been concealed or any income or a part thereof has escaped assessment. 

• Sub-section (4): 

The provision of this section shall not apply where the source of such investment, made by the assessee for the construction or purchase of such building or apartment is- 

• Derived from any criminal activities under any other law for the time being in force or 
• Not derived from any legitimate source.

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