Finance bill passed: 15% tax for undisclosed money prevails

The Finance Bill 2024 was passed today (29 June) at Jatiya Sangsad with some minor changes alongside keeping the provision for legalising the undisclosed money paying 15% tax.

Finance Minister Abul Hassan Mahmood Ali moved the bill and it was passed by voice vote with Speaker Dr Shirin Sharmin Chaudhury in the chair. Ali accepted some 16 minor proposals on the finance bill in section 2 and 2-Ka and Schedule 3. The other 11 amendment proposals were rejected by voice vote.

Leader of the House and Prime Minister Sheikh Hasina and opposition leader GM Quader also spoke on the Finance Bill.

The finance minister accepted an amendment keeping the highest tax rate at 25%. Earlier on 6 June, Ali proposed to increase the rate while placing the Tk7,97,000 crore budget for FY25 in the House. 

Following the amendment, the tax free income ceiling will be Tk350,000, for next Tk1 lakh the tax is 5%, for the next Tk 4 lakh the tax rate is 10%, for the next Tk5 lakh the tax rate is 15%, for next Tk5 lakh the tax is 20% and for the rest amount of income the rate is 25%.

The opportunity to whiten undisclosed money remained for one year from 1 July 2024 to 30 June 2025 at the rate of 15%. Besides, the companies themselves have the opportunity to legalise this undisclosed amount by paying 15% tax.

As per the amendments, individuals have to pay surcharge for multiple vehicles, but not by companies. Submission of returns have been made mandatory for only city corporation community centre booking while income from universal pension scheme will be tax free as well as individuals, companies and trusts have to pay 15% gain tax.

The other amendments are donations/gifts to any member of the family will not be taxed at source and audit will be exempted, if returns shows 15% income up compared to the previous year.