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| Voluntary disclosure of investment or income Section-24(ITA-2023) |
Voluntary disclosure of investment or income by paying special tax etc under Section 24:
As per section-24(ITA-2023),
Voluntary disclosure of investment or income upon payment of special tax—(1) Where the Act provides that the source of any investment shall be considered explained upon payment of tax at the prescribed rate and subject to the conditions set out in the First Schedule, such investment shall be treated as duly explained accordingly.
Frequently Asked question(FAQ):
1. What is voluntary disclosure of investment or income under Section 24?
Voluntary disclosure allows taxpayers to declare undisclosed investment or income by paying a special tax, making the source legally acceptable under the Bangladesh Income Tax Act 2023.
2. Who can use Section 24 voluntary disclosure benefits?
Any individual or entity with undisclosed investment or income can use Section 24 by paying the prescribed special tax to legitimize those funds.
3. What tax rate applies to voluntary disclosure under Section 24?
The tax rate is determined as per the First Schedule of the Income Tax Act 2023, depending on the type of investment or income disclosed.
4. Is proof of income source required after voluntary disclosure?
No, once the special tax is paid under Section 24, the disclosed investment is deemed legally explained without further source verification.
5. What types of investments qualify for voluntary disclosure?
Eligible investments may include real estate, cash, financial assets, or other specified investments as defined in the law.
6. Is voluntary disclosure under Section 24 mandatory?
No, it is optional. However, it provides a legal opportunity to regularize undisclosed income and avoid penalties or legal action.