Voluntary disclosure of income

(1) any person—

(a) who has not been assessed to tax for previous assessment year or years and he has not submitted his return of income for those year or years may disclose such income in the respective heads of income in the return of income along with the income for the current assessment year; or

(b) who has been assessed to tax for previous assessment year or years and any income has escaped assessment in those assessments or the amount of income assessed is less than the actual income, may disclose that income for respective heads of income in the return of income along with the income for the current assessment year.

(2) Return of income mentioned in sub-paragraph (1) shall be treated as valid, if—

(a) the assessee pays before the submission of return—

(i) tax payable at applicable rate on total income including such income; and

(ii) penalty at the rate of 10% (ten precent) of tax proportionate to such undisclosed income;

(b) the return of income is submitted within the time specified in section 171; and

(c) a declaration is enclosed with the return of income in respect of the following:

(i) name of the person declaring;

(ii) head of the declared income and amount thereof; and

(iii) amount of tax and penalty paid thereof.

(3) The provisions of this paragraph shall not apply, where—

(a) a notice under section 212 has been issued before submission of such return of income for the reason that any income, assets or expenditure has been concealed or any income or a part thereof has escaped payment of tax;

(b) a notice on a banking company under sub-section (2) of section 200 has been issued before submission of such return of income;

(c) any proceeding under sections 311-313 has been initiated before submission of such return of income;

(d) any income declared under this paragraph is-

(i) not derived from any legitimate source of income; or

(ii) derived from any criminal activities under any other law for the time being in force; or

(e) any income declared under this paragraph which is exempted from tax in the concerned income year;

(4) The income shown under this paragraph may be invested in any income generating activities or any sector, including the following, namely:—

(a) industrial undertaking including its expansion;

(b) balancing, modernization, renovation and extension of an existing industry;

(c) building or apartment or land;

(d) securities listed with a Stock Exchange in Bangladesh; or

(e) any trade, commercial, or industrial venture engaged in production of goods or services.