Gift tax in Bangladesh is levied on gifts made voluntarily without consideration under the Gift Tax Act of 1990, with exemptions for gifts to certain organizations, family members, and those under a certain value. The tax is assessed based on the market value of the gifted property and tax rates range from 5-20% depending on the total taxable value of gifts.
Gift tax in Bangladesh is levied on gifts made voluntarily without consideration under the Gift Tax Act of 1990, with exemptions for gifts to certain organizations, family members, and those under a certain value. The tax is assessed based on the market value of the gifted property and tax rates range from 5-20% depending on the total taxable value of gifts.
Gift tax in Bangladesh is levied on gifts made voluntarily without consideration under the Gift Tax Act of 1990, with exemptions for gifts to certain organizations, family members, and those under a certain value. The tax is assessed based on the market value of the gifted property and tax rates range from 5-20% depending on the total taxable value of gifts.
Gift tax in Bangladesh is levied on gifts made voluntarily without consideration under the Gift Tax Act of 1990, with exemptions for gifts to certain organizations, family members, and those under a certain value. The tax is assessed based on the market value of the gifted property and tax rates range from 5-20% depending on the total taxable value of gifts.
Assistant Professor Department of A&IS Faculty of Business Studies (FBS) University of Dhaka Gift
Sec 2 (d), The Gift Tax Act 1990
Gift means the transfer by one person to another of any existing immovable or moveable property made voluntarily and without consideration of any money or money’s worth.
3105 :: Principles & Practices of Taxation - I
Gift Tax
The gift tax is leviable on gift made in any financial year on
and from the 1st day of July 1990.
at the prescribed rate in the schedule [u/s-3].
3105 :: Principles & Practices of Taxation - I
Chargeability
Transfer of existing property.
Transfer made by one person (donor) to another person
(donee).
Should be made voluntarily.
Without or with inadequate consideration.
3105 :: Principles & Practices of Taxation - I
Valuation of Gift
Gift Tax Rate is applied on the market value of the gift.
If MV is not available, Section 5 and Rule 6 of Gift Tax Act
and Rules, 1990 shall be applicable.
3105 :: Principles & Practices of Taxation - I
Valuation of Gift Property Valuation Cash Amount of Cash transferred Property a)If MV is the known, the price the property other than would be sold at the market on the day when the Cash gift was made. b) If MV is not known, i. In case of gifted insurance, the amount that can be en-cashed on that day ii. In case of shares of private ltd co. or firm, the value of shares have to be determined for the year in which the shares were gifted Others The value is determined by the NBR.
3105 :: Principles & Practices of Taxation - I
Valuation of Gift Tax Rates of Gift Tax U/S 3 Particulars Rate (Percentage) (Slab Amount of Taxable Gifts)
On the first Tk. 500,000 of the value of all 5%
taxable gifts On the next Tk. 1,000,000 of the value of 10% all taxable gifts On the next Tk. 2,000,000 of the value of 15% all taxable gifts On the balance of the value of all taxable 20% gifts
3105 :: Principles & Practices of Taxation - I
Exemption from Gift Tax
U/S 4
Gift tax shall not be charged under the Act in respect of the
following gifts made by any person:
1) of property situated outside Bangladesh;
2) to the Government or any local authority;
3105 :: Principles & Practices of Taxation - I
Exemption from Gift Tax
3) to the following funds or institutions, for charitable purpose:
i. any University established under the law in force in
Bangladesh or any educational institution recognized or run
by the Government;
ii. any hospital recognized or run by the Government;
iii. any flood or disaster management fund established or
approved by the Government;
3105 :: Principles & Practices of Taxation - I
Exemption from Gift Tax
iv. such institutions or funds for religious or charitable purpose
upto 20% of the total income determined for the concerned
year or Tk. 100,000 whichever is less;
4) to dependent relative upto Tk. 20,000 on the occasion of
his/her marriage;
3105 :: Principles & Practices of Taxation - I
Exemption from Gift Tax
5) by way of payment of policy of insurance or annuity for any
person (other than wife/ spouse) dependent upon him for
support and maintenance upto Tk. 20,000;
6) under a will;
7) under contemplation of death;
3105 :: Principles & Practices of Taxation - I
Exemption from Gift Tax
8) to sons, daughters, father, mother, his or her spouse, own
brothers and sisters;
In addition to the above exemptions, gifts made in any
financial year up to value of Tk. 20,000 are exempt from gift
tax. The Government may by notification exempt any class of
gift or any class of person from gift tax.
3105 :: Principles & Practices of Taxation - I
Gift Tax not Applicable
U/S 20
Provisions of the Gift Act shall NOT apply to following gifts
made by
1) a body corporate established or constituted by or under any
law
2) any institution or fund, income whereof is exempt from
income tax under Income Tax ordinance 1984;
3105 :: Principles & Practices of Taxation - I
Return of Gift Tax U/S 7
➢ Every person who had made taxable gift during any financial year of an amount as to render him liable to gift tax under the gift tax act shall before the fifteenth day of September of the corresponding assessment year furnish a return to the Deputy Commissioner of Taxes.
➢ DCT gives a 30 days notice if it believes that a person is liable
to pay gift tax.
➢ Tax on the basis of the return is payable on or before the date
on which such return is furnished. Return of Gift Tax U/S 9
➢If the assessee fails to submit the return within due day, he may submit the return or do corrections before the assessment. Assessment Assessment
On Correct After Hearing Best
Return Basis Assessment Assessment On Correct Return Basis:
1. Submitted return is correct and complete.
2. The DCT is satisfied. 3. Physical presence is not required Assessment After Hearing:
1. The DCT is not satisfied.
2. Physical presence and evidence needed 3. After hearing, taxable gift and tax payable amount are determined. Assessment Best Assessment
1. The assessee fails to present physically and to produce
evidence 2. The DCT determines taxable gift and tax to the best of his judgment. Penalty for Default and Concealment If: ➢ The assessee furnishes inaccurate information or,
➢Fails to furnish a return after receiving a notice,
The penalty will be not more than fifty percent of the
gift tax determined by him plus the tax.
However, the assessee is given opportunity of being
heard by the IJCT. Notice of Demand When any tax or penalty is due, NOD is served to the assessee in Form 3 specifying the sum of the tax payable and the due time. Appeal ➢ Any person aggrieved by the DCT or TRO may appeal in Form 4 to the AJCT.
➢Any person aggrieved by the decision of the above
appellate authority can appeal for revision and reference by Form 5 to Appellate Tribunal.
➢A certified copy of the order against which appeal is
being made must be enclosed with the application of appeal. That was enough!
