Govt to allow legalisation of undisclosed money in property deals

The government is set to introduce a provision allowing taxpayers to legalise undisclosed income used in property transactions without facing questions 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 unreported amounts where the actual transaction value exceeds the value stated in the registration deed. 

A separate provision is set to be incorporated into the Finance Bill 2026, slated to be placed before parliament by Finance Minister Amir Khosru Mahmud Chowdhury tomorrow, 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 raise questions or initiate proceedings regarding such income if the taxpayer voluntarily discloses the amount and pays the required tax, notwithstanding any provisions in the Income Tax Act or other laws in force.

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.

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.