The National Board of Revenue on Tuesday said the investors must keep the undisclosed money invested in stocks till June 2013 to avail the opportunity of legalising it by paying 10 per cent tax.
The board in an order issued on Tuesday said the holders of undisclosed money would have to invest it in the capital market between July 1, 2011 and June 30, 2012 to avail the opportunity of legalising their money by paying 10 per cent tax in line with the Finance Bill 2011 passed in the parliament on June 28.
‘Undisclosed money which will be invested in the share market cannot be withdrawn before June 2013. If any one withdraws the capital, he or she will lose the opportunity of legalising the money by paying 10 per cent tax,’ NBR first secretary Apurba Kanti Das told a press conference at the NBR headquarters in the capital on Tuesday.
He, however, said the investors would be allowed to withdraw profits made from the investment of undisclosed money during the period.
He said the investment of undisclosed money in the stock market should be made by June 30, 2012 and the declaration about the investment should be made by July 15, 2012.
He said the investors must have to submit a copy of beneficiary owner’s account statement and portfolio monthly reports to the NBR so that the board could monitor whether they withdrew the capital or not.
NBR chairman Nasiruddin Ahmed hoped the initiative would help stimulate the share market.
He claimed that the opportunity of legalising untaxed money by investing in the share market and three other sectors, which had been offered first in fiscal 2009-2010, did not fail.
He said they had set a cap of two years for keeping the money in the stock market to ensure its sustainability.
The NBR chair also said the investors who would invest legal money in primary shares would get a 10 per cent tax rebate.
-With New Age input