1990

21 sections

Free download

Gift Tax Act, 1990

Sections21

LanguageEnglish

The Gift Tax Act, 1990 imposes a tax on gifts of property in Bangladesh. It applies to every individual, Hindu undivided family, company, firm, and association of persons who make gifts exceeding the exemption threshold. The Act defines a gift as the transfer of property without consideration or for inadequate consideration, with exceptions including gifts made in contemplation of death. Key mechanisms include the computation of taxable gifts based on market value; the rates of gift tax linked to income tax slab rates of the donor; the procedure for filing gift tax returns; exemptions for gifts to spouses, children, and charitable institutions within prescribed limits; and assessment and collection by the National Board of Revenue. Notable provisions include exemptions for gifts between spouses within certain limits, gifts in consideration of marriage, and the requirement for registration of gifts of immovable property exceeding Tk. 5,000. The Act is currently in force.

Full text · showing key sections

§ 1Short title and commencement

(1)This Act shall be called the Gift Tax Act, 1990.

(2)It shall come into force on the 1st day of July, 1990.

§ 2Definitions

(1)Unless there is anything repugnant in the subject or context, in this Act—

(a) "Appellate Tribunal" means the Taxes Appellate Tribunal constituted under the Income Tax Ordinance;

(b) "Income Tax Ordinance" means the Income Tax Ordinance, 1984 (XXXVI of 1984);

(c) "Deputy Commissioner of Taxes" means the Deputy Commissioner of Taxes mentioned in the Income Tax Ordinance;

(d) "Tax Recovery Officer" means the Tax Recovery Officer mentioned in the Income Tax Ordinance;

(e) "Taxpayer" means a person by whom gift tax is payable or against whom any proceeding is taken or may be taken under this Act for the purpose of levying gift tax;

(f) "Gift" means transfer by a person to another person voluntarily of any movable or immovable property without consideration in money or money's worth;

(g) "Inspecting Joint Commissioner of Taxes" means the Inspecting Joint Commissioner of Taxes mentioned in the Income Tax Ordinance;

(h) "Rules" means rules made under this Act.

(2)Words or expressions used in this Act but not defined therein and defined in the Income Tax Ordinance shall have the meanings assigned to them in the Income Tax Ordinance.

§ 3Levy of gift tax

Subject to the other provisions of this Act, gift tax shall be levied on all gifts made by any person in a financial year at the rates specified in the Schedule, commencing from the 1st day of July, 1990.

§ 4Exemption in case of certain gifts

(1)No gift tax shall be leviable under this Act on gifts made by any person in the following cases, namely:—

(a) if the gifted property is situated outside Bangladesh;

(b) if the gift is made to the Government or any local authority;

1[(c) if the gift is made to any of the following funds or institutions established for charitable purposes, namely:—

(i) any educational institution including any polytechnic institute recognized by or established, run or maintained by the Government, and any university or education board established under any law in force in Bangladesh;

(ii) any hospital recognized, run or maintained by or receiving aid from the Government or any local authority;

(iii) any flood or disaster relief fund constituted or approved by the Government;

(iv) any institution established and approved by the Government or any institution established for religious or charitable purposes and registered under any law in force for religious or charitable purposes, other than any private religious institution not run for the welfare of the general public, to the extent of 20 percent of the assessed total income of the taxpayer for the relevant tax year or one lakh taka, whichever is less;]

(d) if the gift is made at the time of marriage of any dependant relative to the extent of maximum twenty thousand taka in value for maintenance;

(e) if the gift is made to any dependant relative, other than wife, to the extent of maximum twenty thousand taka in value by way of insurance policy or annual annuity for maintenance;

(f) if the gift is made by will;

(g) if the gift is made in contemplation of death;

(h) if the gift is made to son, daughter, father, mother, husband, wife, own brother or own sister.

(2)In addition to the exemptions mentioned in sub-section (1), no gift tax shall be leviable under this Act on gifts up to twenty thousand taka in value made by any person in a financial year.

(3)The Government may, by notification in the official Gazette, exempt any class of gifts or any class of persons from payment of tax under this Act:

Provided thatthe exemption granted under this sub-section shall be subject to the conditions mentioned in the said notification.

§ 5Method of determining the value of gift

(1)For the purpose of determining tax under this Act, the value of any property other than cash transferred as gift shall be presumed to be equal to the price at which such property could have been sold in the open market on the date of the gift.

(2)Where the value of any property cannot be determined under sub-section (1) because it is not saleable in the open market, its value shall be determined in the manner prescribed by rules.

§ 6Determination and recovery of gift tax

The Deputy Commissioner of Taxes and the Tax Recovery Officer shall, within their respective jurisdictions, determine and recover gift tax under this Act, as the case may be.

§ 7Return of gifts

(1)Every person who has made taxable gifts in a financial year shall file a return in respect of such gifts in the prescribed form and manner to the Deputy Commissioner of Taxes before the fifteenth day of September of the succeeding tax year.

(2)If the Deputy Commissioner of Taxes is of opinion that gifts made by any person in a financial year are taxable under this Act, he may, notwithstanding anything contained in sub-section (1), direct such person by notice to file return in the prescribed form and manner within such time as may be prescribed, which shall not be less than thirty days.

(3)The Deputy Commissioner of Taxes may, if he considers it just and reasonable, extend the time limit for filing return under this section.

§ 8Payment of tax

(1)Every person who files return under section 7 shall pay the tax based on the return on or before the date of filing the return.

(2)If any person fails to pay tax under sub-section (1) without reasonable cause, he shall be deemed to be a defaulter taxpayer.

§ 9Late filing of return and amendment of return

If any person has not filed return within the time limit mentioned in section 7, or considers it necessary to amend the return filed under the said section, he may file a return or, as the case may be, an amended return at any time before the determination of tax.

§ 10Determination of tax

(1)If the Deputy Commissioner of Taxes, on examination of the return filed under section 7 or 9, is satisfied that it is correct and complete, he shall determine the gift tax payable by the taxpayer on the basis of such return.

(2)If the Deputy Commissioner of Taxes is not so satisfied, he may serve notice on the taxpayer and direct him to produce evidence in support of the return at his office on the date mentioned in the notice.

(3)The Deputy Commissioner of Taxes may, after reviewing the evidence produced by the taxpayer and, if necessary, after giving hearing, determine the gift tax payable by the taxpayer.

(4)If any person fails to file return after receipt of notice under sub-section (2) of section 7(2) or fails to produce evidence in support of the return after receipt of notice under sub-section (2), the Deputy Commissioner of Taxes may determine the gift tax payable by the taxpayer on the basis of information and evidence available to him.

§ 11Penalty for default and concealment of information

If any person intentionally furnishes false information in any return filed before the Deputy Commissioner of Taxes, or intentionally fails to file return even after receiving notice from the Deputy Commissioner of Taxes, the Deputy Commissioner of Taxes may impose a penalty not exceeding fifty percent of the gift tax determined by him, and such penalty shall be recoverable along with the gift tax:

Provided thatno such penalty shall be imposed without giving reasonable opportunity of hearing to the person concerned and without the prior approval of the Inspecting Joint Commissioner of Taxes.

§ 12Appeal, etc.

(1)If any person is aggrieved by any order of the Deputy Commissioner of Taxes or Tax Recovery Officer under this Act, he may appeal to the authority to which he could have appealed if the said order had been an income tax order under the Income Tax Ordinance, and any party aggrieved by the decision of the said appellate authority may, as the case may be, appeal, revise or refer to all such authorities before whom appeal, revision or reference in income tax matters could be made under the Income Tax Ordinance.

(2)In the case of appeal, revision or reference under this section, the procedure of appeal, revision or reference under the Income Tax Ordinance shall be followed.

§ 13Notice of demand

When any gift tax or penalty is payable under this Act, the Deputy Commissioner of Taxes shall serve on the taxpayer a notice of demand in the prescribed form, specifying the amount of tax or penalty payable and the time within which it shall be paid.

§ 14Recovery of tax and penalty

(1)The gift tax or penalty specified in the notice of demand served under section 13 shall be paid within the time specified therein, and if it is not paid within the said time, the taxpayer shall be deemed to be in default.

(2)Notwithstanding anything contained in this section, if any taxpayer has filed an appeal under section 12, the Deputy Commissioner of Taxes may, either suo motu or on application, refrain from treating the taxpayer as a defaulter until the disposal of such appeal.

(3)If the gift tax or penalty mentioned in section 13 is not paid within the time prescribed for payment thereof, it shall be deemed to be arrear income tax under the Income Tax Ordinance and shall be recoverable accordingly.

§ 15Rectification of mistake

The Deputy Commissioner of Taxes or any authority hearing appeal or revision in gift tax matters may, at any time within two years from the date of any order passed by him, rectify any mistake apparent on the face of such order:

Provided thatno rectification shall be made increasing the amount of gift tax or penalty without giving reasonable opportunity of hearing to the taxpayer.

§ 16Service of notice

Any notice under this Act shall be served in the manner in which a notice under the Income Tax Ordinance is served.

§ 17Observance of Board's orders, directions, etc. by gift tax authorities

In the performance of duties under this Act, the Deputy Commissioner of Taxes and the Tax Recovery Officer shall perform their duties under the supervision and control of such officers or authorities under whose supervision and control they perform their duties under the Income Tax Ordinance.

§ 18Restriction on filing suit

No suit shall be filed in any court for cancellation or alteration of determination of tax under this Act, nor shall any civil or criminal or other legal proceeding be instituted against the Government or any officer or employee of the Government for any act done in good faith under this Act which causes loss to any person or is likely to cause loss to him.

§ 19Appearance through authorised representative

Any person summoned to appear before any Deputy Commissioner of Taxes or any authority empowered to hear appeal or revision in gift tax matters for any proceeding or investigation under this Act may appear through any person authorised by him in writing for this purpose, unless he is required to appear in person.

§ 20Non-applicability of the Act in certain cases

The provisions of this Act shall not apply to—

(a) gifts made by any statutory body established or constituted under any law;

(b) gifts made by any institution or fund exempt from tax under Paragraph 1 and 2 of Part A of the SIXTH SCHEDULE of the Income Tax Ordinance.

§ 21Power to make rules

The Board may, for the purposes of this Act, make rules by notification in the official Gazette.