Property deals: Govt to allow legalisation of undisclosed money

The government is set to introduce a provision that would allow taxpayers to legalise undisclosed income used in property transactions without being questioned about the source of the funds, according to officials familiar with the proposal.

The measure, expected to be included in the budget for fiscal year 2026–27, will enable buyers and sellers of land, buildings, and apartments to declare previously undisclosed money.

The proposed facility would apply where the actual purchase or sale price of land, buildings, or apartments exceeds the value declared in official documents, a common practice in Bangladesh’s real estate market.

The provision is set to be incorporated into the Finance Bill 2026, slated to be placed before parliament by Finance Minister Amir Khosru Mahmud Chowdhury today to facilitate the move.

Finance ministry officials said individuals will be able to regularise the undisclosed portion of a property transaction by paying income tax at the applicable rate for individual taxpayers.

Under the proposed law, no authority will be allowed to question or initiate proceedings on such income if the taxpayer voluntarily discloses it and pays the required tax, notwithstanding any provisions of the Income Tax Act or other applicable laws.

However, if tax authorities have already initiated proceedings over such transactions, the taxpayer will have to pay an additional 20 percent on top of the applicable tax on the excess amount, officials said.

The facility will not be available to individuals already convicted by a court in connection with such matters.