GIFT TAX ACT, 1990

(Act No. 44 of 1990)

Where as it is expedient to levy gift tax; It is hereby enacted as follows:-

1. Short title and commencement(1) This Act may be called the Gift Tax Act, 1990. (2) It shall come into force on the first day of July, 1990.

2. Definitions(1) In this Act, unless the context otherwise requires,(a) Appellate Tribunal means the Taxes Appellate Tribunal formed under the
income Tax Ordinance. (b) Income Tax Ordinance means the Income Tax Ordinance, 1984. (c) Deputy Commissioner of Taxes means a deputy commissioner of Taxes as define in the Income Tax Ordinance; (d) Tax Recovery officer means a Tax Recovery officer as defined in the income Tax Ordinance;

(e) assessee means a person by whom gift-tax or any other some of money is
payable under this Act, and includes every person in respect of whom any proceeding under this act has been taking for the determination of the gift-tax payable by him.

(f) gift means the transfer by one person to another of any existing movable or
immovable property made voluntarily and without consideration in moneys worth;

(g) Inspecting Joint Commissioner of Taxes means an (h) rules means rules made under this Act.

Inspecting Joint

Commissioner of Taxes as defined in the Income Tax Ordinance;

(2) Any term used but not specifically defined in this Act and defined in the Income Tax
Ordinance , such terms and expressions shall have the same meaning assigned to it under the Income Tax Ordinance.

3. Charge of Gift Tax

Subject to the other provisions contained in this Act, gift tax shall be charged for every financial year commencing on and from the first day of July, 1990 at the rate specified in the Schedule.

4. Exemption in respect of certain gifts(1) Gift-tax shall not be charged under this Act in respect of gifts made by any person-

(a) If the gifted property is situated outside Bangladesh. (b) to the Government or any local authority. (c) to the following funds or institutions, for charitable purposes : (i)
(ii) any University established under the law in force in Bangladesh or any educational institution including polytechnic institute, recognized by the Educational Board or recognized or run by the Government. any hospital recognized or run by the Government or any local authority or any hospital aided by the Government or any Local Authority. any flood or disaster management fund established or approved by the Government. such institution or funds for religious or charitable purposes, not being a private religious institutions or fund which does not ensure for the benefit of the public, as are established in Bangladesh and approved by the Government for such purposes or to any institution established for religious or charitable purposes and registered under any Law for the time being in force, up to 20% of the total income determined for the concerned year or Taka One Lakh, whichever in less.

(iii) (iv)

(d) to a relative dependent upon him on account of the his/her marriage

subject to a maximum of taka 20,000.

(e) to a relative dependent upon him by way of insurance policy or annuity for
his/her support or maintenance subject to a maximum of taka 20,000. (f) under a Will.

(g) In contemplation of death . (h) to sons, daughters, father, mother, husband, wife, brothers and sisters. (2) Without prejudice to the provisions contained in sub-section (1) gift-tax shall not be
charged under this Act, in respect of gifts made by any person during any financial year, subject to a maximum of twenty thousand Taka in value .

(3) The Government may, by notification in the Official Gazette, exempt gift tax in respect of

any class of gifts or class of persons under this Act. Provided that any exemption notified under this sub-section may be made subject to such conditions as may be specified in the notification.

5. Determination of value of gifts(1) The value of any property other than cash transferred by way of gift shall , be estimated to
be the price which in the opinion of the Deputy Commissioner of Taxes it would fetch if sold in the open market on the date on which the gift was made.

(2) Where the value of any property can not be estimated under sub-section (1) because it is
not salable in the open market, the value shall be determined in the prescribed manner.

6. Determination and recovery of Gift-tax-

Both Deputy Commissioner of Taxes and Tax Recovery Officer having jurisdiction shall determine and recover the gift-tax, as the case may be, under this Act.

7. Return of gifts.(1) Every person who has made any taxable gifts during a financial year shall, before the
thirtieth day of September of the corresponding assessment year, furnish to the Deputy Commissioner of Taxes a return in the prescribed form and verified in the prescribed manner.

(2) If the Deputy Commissioner of Taxes is of opinion that the gifts made by a person during
any financial year is liable to pay gift-tax under this Act, then notwithstanding anything contained in sub-section (1) he may serve a notice upon such person requiring him to furnish within such period, not being less than thirty days, as may be specified in the notice a return in the prescribed from and verified in prescribed manner.

(3) The Deputy Commissioner of Taxes may in his discretion extend the date for the
submission of the return under this section.

8. Payment of tax(1) Every person, who is required to furnish a return u/s 7, shall pay the amount of tax payable
on the basis of the return on or before the date on which he filed the return.

(2) A person, who without reasonable cause, fails to pay the tax as required by sub-section (1),
shall be deemed to be an assessee in default.

9. Filling of return after due date and amendment of returnAny person who has not filed a return within the time specified in section 7, or who having filed a return under that section, discovers any omission or a wrong statement therein, may furnish a return or a revised return, as the case may be , at any time before the assessment is made .

10.

Assessment(1) Where a return or a revised return has been filed u/s 7 or 9 and the Deputy Commissioner
of Taxes is satisfied that the return is correct and complete, he shall assess the value of the taxable gifts made by the assessee and determine the amount gift tax payable by him on the basis of such return.

(2) Where the Deputy Commissioner of taxes is not so satisfied, he shall serve a notice on the

assessee directing him to produce evidence in support of his return at his office on a date as may be specified in the notice.

(3) The Deputy Commissioner of Taxes shall, after considering the evidences produced by the
assessee and if required, after hearing the assessee, determine the amount of gift tax payable by the assessee.

(4) If any person fails to submit a return as required by a notice u/s 7(2) or fails to produce any

evidence in support of the return as required by a notice under sub-section (2), the Deputy commissioner of Taxes shall, on the basis of the facts and evidence received by him, determine the amount of gift tax payable by the assessee.

11. Penalty for default and concealmentIf any person has deliberately furnished inaccurate particulars in the returns submitted to the Deputy Commissioner of Taxes or has deliberately failed to submit return after receiving notice from the Deputy Commissioner of Taxes, the Deputy Commissioner of Taxes may impose upon such person by way of penalty a sum, not exceeding 50% of the gift-tax as determined by him and this penalty shall be recoverable with the gift-tax. Provided that no order shall be made unless the person concerned has been given a reasonable opportunity of being heard.

12.

Appeal etc,(1) Any person aggrieved by an order of the Deputy Commissioner of Taxes or Tax Recovery
Officer can appeal to the authority as prescribed in the Income Tax Ordinance and aggrieved by the decision of that Appellate Authority can appeal for revision and reference to the authority as prescribed by the Income Tax Ordinance .

(2) Appeal, revision and reference under this section will follow the method and procedure as
prescribed in the Income Tax Ordinance.

13.

Notice of demandWhere any tax or penalty is payable in consequence of any order passed under this Act , the Deputy Commissioner of Taxes shall serve upon the assessee a notice of demand in the prescribed form specifying therein the sum payable and the time within which it is payable .

14.

Recovery of Tax and penalties(1) Gift-tax or penalty specified as payable in a notice of demand issued u/s 13 is to be paid
within the time so specified and if the amount is not so paid, the assessee shall be deemed to be an assessee in default.

(2) Notwithstanding anything contained in this section, where an assessee has presented an
appeal under section 12 the Deputy Commissioner of Taxes may, on his own motion or by an application made by the assessee, treat the assessee as not being in default as long as such appeal is not disposed.

(3) If the gift-tax payable under section 13 is not paid within the time specified then it shall be
treated as tax due under the Income Tax Ordinance and be recoverable as such.

15. Correction of errors

The Deputy Commissioner of Taxes or any Appellate Authority may amend any order passed by him or it so as to correct any error apparent from the record within 2 years from the date of the order sought to be amended. Provided that no such correction which results in the enhancement of the amount of gifttax or penalty, shall be made unless the assessee has been given a reasonable opportunity of being heard.

16.

Service of noticeA notice under this Act shall be served in accordance with the provision as laid down in the Income Tax Ordinance.

17.

Gift tax authority to follow orders, directions, etc. of the boardIn order to execute the responsibilities under this Act the Deputy Commissioner of Taxes and Tax Recovery Officer shall be under the supervision and control of the officers and authority as laid down in the Income Tax Ordinance.

18. Bar of suits in civil courtsNo suit shall be brought in any civil court to set aside or modify an assessment made under this act, and no prosecution, suit or other legal proceeding shall lie against any officer of the Government for anything in good faith done or intended to be done under this Act.

19. Appearance before gift-tax authorities by authorized

representativesAny assessee who is entitled to or required to attend before any gift-tax authority in connection with any proceeding or inquiry under this act may attend by a person authorized by him in writing in this behalf.

20. Act not to apply in certain casesThe provisions of this Act shall not apply to gifts made by(a) a body corporate established or constituted by or under any law. (b) any institution or fund, income whereof is exempted from income tax under paragraph 1 and 2 of part A of the sixth schedule of the Income Tax Ordinance.

21. Power of making rules

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

Rate of Gift Tax

On first taka 5 lakh after exemption limit On next taka 10 lakh On next taka 20 lakh On the balance amount 5% 10% 15% 20%

The Gift Tax Rules, 1990

Rule 3: Return of Gift Tax: The return which is required to be filled u/s 7(1) & 7(2) shall be filled in return form 1 Rule 4: Determination of Gift Tax & Notice of Demand:

(a) The DCT shall, after determining gift tax, give order under form 2 in respect of gift tax. (b) Notice of demand u/s 13 shall be served under notice form 3
Rule 5: Appeal: (1) If any person under this Act-

(a) aggrieved by an order of DCT can appeal to Appellate Joint Commissioner of Taxes (Who is
the appellate authority against an order of DCT under Income Tax Ordinance) in form 4. (b) aggrieved by an order of Appellate Joint Commissioner of Taxes can appeal to Appellate Tribunal (Which is the appellate authority against an order of Appellate Joint Commissioner of Taxes under Income Tax Ordinance) in form 5. (2) A certified copy of the order appeal against shall have to be enclosed with the application of appeal. Rule 6: Determination of Value of Asset: (1) The value of the insurance policy transferred by way of gift shall be the price which would fetch if surrendered on the date on which the gift is made. (2) In the case of shares of a limited company or firm transferred by way of gift, the value of the shares shall be determined on the basis of net asset of the company or firm of the year on which the gift is made