gift tax presentation

Gift Tax

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.

Gift

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].

Gift Tax

Transfer of existing property.

Transfer made by one person (donor) to another person

(donee).

Should be made voluntarily.

Without or with inadequate consideration.

Chargeability

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.

Valuation of Gift

Valuation of Gift

Property Valuation

Cash Amount of Cash transferred

Property

other than

Cash

a)If MV is the known, the price the property

would be sold at the market on the day when the

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.

Valuation of Gift Tax

Particulars

(Slab Amount of Taxable Gifts)

Rate (Percentage)

On the first Tk. 500,000 of the value of all

taxable gifts

5%

On the next Tk. 1,000,000 of the value of

all taxable gifts

10%

On the next Tk. 2,000,000 of the value of

all taxable gifts

15%

On the balance of the value of all taxable

gifts

20%

Rates of Gift Tax U/S 3

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;

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;


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;


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;


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.


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;

Gift Tax not Applicable

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

Return Basis

After Hearing Best

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!

gift tax presentation

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