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Capital Gains Tax in Bangladesh: Complete Guide for 2026-27

Any profit you make when you sell or otherwise transfer a capital asset in Bangladesh is a capital gain, taxed under Chapter VI of the Income Tax Act, 2023. Capital assets include land, buildings, flats, shares and businesses. From the 2026-27 tax year they also include personal gold, jewellery and other valuables. Most gains are taxed at 15%. Individuals selling within five years are taxed at their normal slab rates instead. Personal gold and jewellery are taxed at 5%.

The Finance Act, 2026 brought five major changes:

Personal valuables became capital assets.

Land given to developers has its own computation rule.

Gifted property now attracts gift tax at registration instead of capital gains tax.

A new rule exempts firms converting into companies.

Tax collected at source is now an adjustable, refundable advance rather than a final tax.

This guide sets out every provision, with worked calculations and practical advice on lawfully reducing the tax.

1. The legal basis

Charging provisions.

Section 30(e) lists "capital gains" as one of the seven heads of income.

Section 57 provides that "profits and gains arising from transfer of ownership of capital assets shall be capital gains". Under its proviso, a notional gain on an asset not actually transferred is not a capital gain, even if it is recorded at fair value under IAS or IFRS. Unrealised gains on shares are therefore not taxable.

Section 18(5)(a) says capital gains are taxed at the special rates in Part 7 and the Seventh Schedule.

"Capital asset", section 2(77). It means:

(a) property of any nature or kind held by an assessee;

(b) any business or undertaking, as a whole or as a unit;

(c) any stock or share.

It excludes stock-in-trade, consumer goods and business raw materials. It also excludes personal effects such as clothing, furniture and vehicles used only personally.

The Finance Act, 2026 substituted this definition from tax year 2026-27. Personal gold, silver, precious metals, gems, metal coins, paintings, antiques and club memberships are now capital assets when they are not business goods.

"Transfer", section 2(93). A transfer includes the sale, exchange or relinquishment of an asset, or the extinguishment of any right in it. The following are not transfers, so they produce no capital gain:

a transfer by gift, bequest, will or irrevocable trust;

distribution of a company's assets to shareholders on liquidation;

distribution of assets when a firm or association of persons is dissolved, or when a Hindu undivided family is partitioned.

Inheritance passes property by operation of law, not by a transfer, so heirs pay nothing on receiving it. Since 1 July 2026, a gift of immovable property attracts gift tax under the Gift Tax Act, 1990 at registration (new section 125(2A)). Gifts to a son, daughter, father, mother, husband, wife, full brother or full sister are exempt.

2. Computing the gain (sections 58–61)

\text{Capital gain} = \text{Sale price} - \text{Cost of acquisition}

Sale price, section 58(2)(a). The higher of:

A, the amount received or accrued on the transfer; and

B, the fair market value of the asset on the date of transfer.

Cost of acquisition, section 58(2)(b).

Timing, section 59. The gain is income of the income year in which the transfer takes place.

Section 60. Where an expense was subject to tax at source, it is deductible only if that tax was deducted or collected and paid.

Section 61, valuation safeguards and reliefs.

61(1). If fair market value exceeds the declared consideration by more than 15%, the Deputy Commissioner of Taxes (DCT) determines the fair market value, with the Inspecting Joint Commissioner's prior approval.

61(2). If fair market value exceeds the declared acquisition value by more than 25%, the DCT may offer to buy the asset at the declared value.

61(3). A gain is exempt when all of a partnership firm's assets are transferred to a new company and the consideration is invested in that company's equity.

61(4)–(6), new in 2026. A firm restructured into a company is exempt on conditions (see section 7 of this guide).

3. Tax rates (Seventh Schedule, paragraph 1)

The rate depends on who sells, what is sold and, for individuals, how long the asset was held. The holding period runs from the date of acquisition or receipt; for inherited or gifted assets, receipt is the date of inheritance or gift.

Individual slab rates for 2026-27. These apply to short-term gains, meaning assets held five years or less.

The tax-free threshold is higher for some taxpayers:

Tk 4.5 lakh for women and those aged 65 or over;

Tk 5.25 lakh for third-gender and disabled taxpayers;

Tk 5.5 lakh for gazetted war-wounded freedom fighters and July Joddhas.

4. Land, buildings and flats

Key rules:

Land, buildings and flats are capital assets, unless they are a real estate developer's stock-in-trade.

Money received above the deed value is also a capital gain. It must be supported by bank statements.

Tax at registration (section 125). The sub-registrar will not register a sale deed until the seller pays tax at source.

From 1 July 2026, it is paid by e-challan for each deed.

The statutory ceiling is the highest of Tk 20 lakh per katha, Tk 1,000 per sq ft of building, or 10% of the deed value. Actual area-wise rates are in the Withholding Tax Rules, 2026.

The section does not apply to a mortgage sale by a bank or finance company, a mortgage to a bank, or a sukuk SPV transfer.

Land given to a developer (new section 58(3)–(4)). The landowner may receive flats, cash, signing money, rent or other benefits.

Gain = total value of everything received − cost of the land.

Rate: 15%, which may be paid in three equal instalments over the current and next two tax years.

Tax deducted on signing money under section 115 is credited.

Return proof (section 264). For land in a city corporation, paurashava or cantonment area worth over Tk 10 lakh, the seller must show proof of filing a return.

Example 1: Land received by hiba, sold with money above the deed value. This is NBR's Example 13 in the Nirdeshika 2026-27. A lawyer received a 5-katha Gulshan plot from his father by hiba in January 2017, at a deed value of Tk 25 lakh. In June 2026 he sold it for Tk 7 crore. The deed showed Tk 5 crore, and the remaining Tk 2 crore came through a bank. He paid Tk 25 lakh as tax at source at registration.

Example 2: Inherited land sold within five years. Salma inherited land in March 2023, worth Tk 60 lakh at the time. In 2026 she sells it for Tk 90 lakh, with Tk 1.5 lakh of transfer costs. Her taxable salary is Tk 10 lakh.

Her gain is Tk 28.5 lakh, which is added to her salary.

Tax on total income of Tk 38.5 lakh at the slab rates is Tk 7,65,000, against Tk 75,000 on her salary alone. The sale therefore costs Tk 6,90,000 in tax, about 24% of the gain.

After five years, the tax on the gain would have been Tk 4,27,500 at 15%.

Example 3: Flats received from a developer. This is NBR's Example 14. In 2011 a landowner bought 5 decimals of land for Tk 70 lakh. In 2022 he gave it to a developer. In January 2026 he received 4 flats worth Tk 1.8 crore.

Gain = 1,80,00,000 − 70,00,000 = Tk 1,10,00,000

Tax at 15% = Tk 16,50,000, which can be paid as Tk 5,50,000 a year in 2026-27, 2027-28 and 2028-29.

5. Shares and securities

Example 4: Listed shares. This is NBR's Example 12. An individual with Tk 15 lakh of business income realised Tk 60 lakh of gains on the stock market. He also had Tk 30 lakh of unrealised gains.

The unrealised Tk 30 lakh is ignored.

Of the realised Tk 60 lakh, Tk 50 lakh is exempt.

Tax on the remaining Tk 10 lakh at 15% = Tk 1,50,000, on top of his slab tax on the business income.

Example 5: Sponsor shares. This example is illustrative. A sponsor bought shares for Tk 20 lakh and transfers them when they are worth Tk 1 crore at the closing price.

At transfer, s. 135 tax = 10% × (1,00,00,000 − 20,00,000) = Tk 8,00,000.

Final tax at 15% on the Tk 80 lakh gain = Tk 12,00,000. The balance of Tk 4,00,000 is paid with the return.

Example 6: Private company shares. This example is illustrative. In 2018 a resident subscribed for 10,000 shares at their face value of Tk 100 each (Tk 10 lakh). In 2026 she sells them at the valuer's fair value of Tk 250 each (Tk 25 lakh).

Before registration, s. 134 tax = 15% × (25,00,000 − 10,00,000) = Tk 2,25,000.

She held the shares for more than 5 years, so the final tax is also 15% × Tk 15 lakh = Tk 2,25,000. Nothing more is payable.

Had she held them for 5 years or less, the Tk 15 lakh would have been taxed at her slab rates, with the Tk 2,25,000 credited.

6. Personal gold, jewellery and other valuables (new from 2026-27)

From 2026-27, the following are capital assets when they are not business goods:

personal gold, silver, gold and silver ornaments;

gems and diamonds, metal coins and precious metals;

paintings and antiques;

club memberships.

The new 5% rate in the Seventh Schedule applies to gold, silver, ornaments, gems, metal coins and precious metals. Paintings, antiques and club memberships are not named in that clause, so they appear to follow the general rule: 15% after five years, slab rates within five years.

Keep purchase receipts, and show these items at their value in your return's asset statement. Without a recorded cost, the whole sale price can be treated as gain.

Example 7: Gold received as a gift. This is NBR's example in the Poripotro 2026-27. Bulti received 5 bhori of 22-carat gold from her mother in January 2021 and showed it in her return at Tk 2,50,000. She sold it in May 2026 for Tk 6,80,000.

Gain = 6,80,000 − 2,50,000 = Tk 4,30,000

Tax at 5% = Tk 21,500

Example 8: Purchased jewellery. This is from NBR's Example 14. Ornaments bought in 2012 for Tk 8 lakh were sold for Tk 20 lakh.

Gain = Tk 12 lakh

Tax at 5% = Tk 60,000

7. Business assets, agricultural assets and restructuring

Depreciated assets (sections 46(2)–(3) and 40(2)–(3)). When a business or agricultural asset is sold, the proceeds are split between two heads. Here A is the sale price, B the original cost and C the written-down value.

Sale above original cost: A − B is a capital gain, and B − C is business (or agricultural) income.

Sale above written-down value but not above cost: A − C is business income only.

Insurance, salvage or compensation: the same split applies when an asset is discarded, demolished or destroyed.

Example 9: A company sells a machine. This example is illustrative. A company bought a machine for Tk 10 lakh. Its written-down value is Tk 4 lakh, and it is sold for Tk 13 lakh.

Business restructuring (Eighth Schedule, Part I).

Amalgamation. Transfers of capital assets are not taxed. Shareholders are taxed on any consideration other than shares in the amalgamated company.

Demerger. Transfers to the resulting company are not taxed. Non-share consideration, and share value above the proportionate value, is taxed.

Firm into company.

s. 61(3). The gain is exempt when all of a firm's assets go to a new company and the consideration is invested in its equity.

New s. 61(4)–(6). A firm restructured into a company is exempt if all four conditions are met:

all of the firm's assets and liabilities pass to the company;

every partner becomes a shareholder in proportion to their capital;

partners receive nothing but shares;

partners hold at least 50% of the votes for 5 years.

If a condition is later breached, the exempted gain is taxed in the company's hands in that year. The firm's accumulated losses and unabsorbed depreciation carry over to the company.

Non-residents (section 119(4)). Shares that produce a gain for a non-resident cannot be transferred until the tax is paid. A treaty certificate may reduce the rate.

8. Tax at source, advance tax and capital losses

Tax at source is now an advance, not final tax (new section 163, Finance Act 2026). This covers tax collected at source under Part 7, including on land (s. 125), unlisted shares (s. 134), sponsor shares (s. 135) and stock-exchange shares (s. 136). Such tax is credited against the capital gains tax computed in the return.

If it exceeds the liability, the excess is refundable or can be carried forward.

If it falls short, the balance is paid with the return.

Exceptions: only tax under ss. 138 and 139, on commercial vehicles and inland ships, remains final tax.

Capital losses (section 70).

A capital loss can be set off only against capital gains, not against salary, business or other income.

Under the amended s. 70(3), losses from tax-exempt sources, reduced-rate sources or final-tax sources cannot be set off against other income or carried forward.

9. How to minimise capital gains tax lawfully

Hold for more than five years. For individuals, this turns slab rates of up to 30% into a flat 15%. In Example 2, waiting would have saved Tk 2,62,500.

Establish your cost from day one.

For inherited or gifted assets, the cost is the market value when you received them.

Record that value in your return's asset statement the same year. Support it with the succession certificate, mutation record, hiba deed, nearby deed values or a valuation report.

For purchases, keep every receipt for the price, registration and development.

Sell inherited assets soon after receipt if prices are flat. When the sale price is close to the value at inheritance, the gain is small. Most of the tax collected at registration can then be refunded.

Use the Tk 50 lakh exemption on listed shares. It applies to an individual's gains in an income year. Plan large disposals across two or more income years so each year stays within the limit.

Spread short-term gains across income years. Where a gain falls under the slab rates, selling in parts across two income years keeps more of it in the lower bands.

Harvest capital losses. A loss on another capital asset sold in the same year is set off against your gains.

Gift within close family instead of selling, where that is the real intention.

A hiba is not a transfer, so there is no capital gains tax.

Gifts to a spouse, children, parents or full siblings pay no gift tax.

The gift must be genuine. A hiba with money paid behind it is a disguised sale.

Use the instalment option on developer deals. Spreading the 15% over three years eases cash flow. Make sure the land cost is documented.

Use the restructuring exemptions. A firm converting to a company, an amalgamation or a demerger can move assets tax-free if the statutory conditions are met and maintained.

Claim your credits and refunds. Tax collected at source is now an advance under section 163. Claim it in your return, and seek a refund of any excess.

What not to do.

Under-stating the deed value and taking cash on the side is tax evasion. If the market value exceeds the declared price by more than 15%, the tax office can reassess the value (s. 61(1)), and penalties may follow.

Unexplained cash received above the deed value cannot be shown as a source of wealth.

How Justice Corner helps. We advise sellers, heirs, investors and businesses before the transaction: we calculate the tax, structure sales, gifts and developer agreements, prepare the deeds and file the return that claims every credit and refund. Talk to us before you sign.

This article is general information, not legal advice for any particular case.

Sources:

Income Tax Act, 2023 (Act No. 12 of 2023), official English text, S.R.O. No. 404-Law/2025 (16 October 2025)

Aykor Poripotro 2026-27, National Board of Revenue (2 September 2026)

Aykor Nirdeshika 2026-27, National Board of Revenue (1 September 2026)

Gift Tax Act, 1990 (Act No. 44 of 1990)

NBR clarification on gift tax at property registration (7 July 2026)