The government of Bangladesh is set to implement measures to double the gain tax rates on land and flat registration, as well as penalties for late submission of income tax returns in the upcoming fiscal year 2023-24. Under the new provisions, the gain tax on land and flat registration will rise from 4% to 8% in the Rajdhani Unnayan Kartripakkha (Rajuk) and Chattogram Development Authority (CDA) areas, and from 3% to 6% in other regions. The maximum limit for gain tax will also increase to Tk20 lakh per katha or 10% of the deed value. The penalty for late income tax return submission will double to 4% of the payable tax. These changes aim to promote tax compliance and discourage undisclosed money in property transactions. However, concerns have been raised about potential burdens on middle-class property owners and the need to revise valuation methods to reflect market rates for better revenue generation.
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