a . Define capital receipts.

b . Mr. W has reported the following gifts applicable to the income year 2019 - 2020: 1. Gift within Bangladesh: Cash gift of Tk. 150,000 on the occasion of marriage of his relative dependent on him; Gift to dependent sister a piece of land valued at Tk. 3,000,000; Gift to his brother the share of firm valued at Tk. 2,000,000 in contemplation of death; Cash donation to the youngest son for starting his own business, Tk. 800,000; Donation to: Prime Minister's Relief Fund Tk. 100,000; Dhaka University Tk. 150,000; Dhaka Ahsania Mission Tk. 120,000; Aga Khan Development Network Tk. 80,000; Ram Krishno Mission Tk. 100,000; Cash donation to a political party TK 100,000; Donated a house in Dhanmondi to his wife valued at Tk. 5,500,000; Gift to the younger brother a motor car costing Tk. 1,800,000 on the occasion of marriage. His younger brother is independent; Gift to a friend a house at Chittagong as a token of love. However, he has received consideration from his friend amounting to Tk. 150,000. The market value of the house is Tk. 1,500,000; Loan given to a friend amounting to Tk. 120,000 become uncollectible and written off as bad debt; Donation to City Corporation TK 50,000; Donation to a body corporate not established by law TK 90,000. 2. Gift Outside Bangladesh: Donated a furnished flat to his sister-in-law in Nepal worth Tk. 500,000 and donated his office furniture to his son-in-law from his UK business office in the event of withdrawal of investment from UK valued at Tk. 460,000.

Requirements: Compute the taxable gift and the gift tax thereon.

Answer rating: 100% (QA)

Section 56 Taxation of gift received As per the income tax act gifts received are taxable in the hands of recipient under the head Income From Other Sources and there is no taxation for the donor Here ... View the full answer