This report highlights on our practical experience of mechanism of collection of gift tax by National Board of Revenue (NBR). To complete the report successfully, we tried to gather information from News Paper, web sites. But the NBR does not provide information in the web site directly and even it does not publish total process to collect taxes from different sector. For this reason we had to visit NBR several times and thus we were successful to collect information about gift tax in Bangladesh. To complete this report, we have gained practical knowledge about various type of Tax System. We also learned the difference sources of taxes and how successful NBR is to collect these taxes. We also got a clear view about the trend of giving gift tax by Bangladeshi people. The rules and regulations are elaborately discussed in this report
Objective of the Study
We can gain knowledge about the tax system of Bangladesh by studying this topic. As following aspects of tax we can learn from this study:
1. The Definition of gifts according to Income Tax Ordinance 19842. The exemptions, tax rate and process of calculating the value of gifts followed by the law. 3. The effectiveness of NBR to collect Gift Tax
4. The problems NBR faces to collect gift tax.
5. The proportion of gift tax comparing to other sources of tax. Methodology of The Study
Primary Source: We had talked to officials of NBR and after interviewing them we also got some useful information to complete this report successfully. Secondary Source: To make this overall assignment we followed the secondary sources like, online, reference, book, and journal. Limitations of the Study
There are some limitations of this study. Therefore the assignment may lack some crucial data. 1. Necessary data and information of gift tax are neither adequate nor available. Because NBR does not disclose the total picture of Tax System. 2. As this tax is not common in Bangladesh so we faced lot of problems to collect information from NBR officials as well. 3) Due to security purpose many crucial information are overlooked because NBR wants to keep this information as secrets and does not want to show the true picture of inefficiency to collect gift tax in Bangladesh. The assignment has encountered these limitations that may have hinder progress. But with constant effort, our goal was to minimize the negative efforts of these limitations. Introduction:
Gift: A gift, in the law of property, is the voluntary transfer of property from one person (the donor or grantor) to another (the donee or grantee) without full valuable consideration. In order for a gift to be legally effective, the donor must have intended to give the gift to the donee, and the gift must actually be delivered to and accepted by the donee. Gift tax:
In economics, a gift tax is the tax on money or property that one living person gives to another. A gift tax is a tax imposed on the gratuitous transfer of ownership of property. When a taxable gift in the form of cash, stocks, real estate, or other tangible or intangible property is made the tax is usually imposed on the donor (the giver) unless there is retention of an interest which delays completion of the gift. A transfer is completely gratuitous where the donor receives nothing of value in exchange for the gifted property. For the purposes of taxable income, courts have defined a "gift" as the proceeds from a "detached and disinterested generosity. Gifts are often given out of "affection, respect, admiration, charity or like impulses. The United States Internal Revenue Service says a gift is "Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return. Who pays the Gift Tax?
The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are...