The Finance Bill for fiscal year 2020-21 has reduced the lock-in period for investments of undisclosed income in stocks to 1 year from proposed 3 years in a bid to boost the fund flow into the flagging capital market.
The bill was passed by parliament without any major change on Monday, reports bdnews24.com.
In his budget speech in parliament on Jun 11, Finance Minister AHM Mustafa Kamal proposed the introduction of an incentive for investments of the untaxed money by paying 10 percent tax.
The investment will be subject to satisfying certain conditions, including a lock-in period of three years, and no other authority, including the income tax authority, will raise any question in this regard, he said.
In the FY 2011-12 budget, there had been a similar 10 percent tax scheme for the use of “black money” in the stock market. That initiative had required a lock-in period for two years.
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