Gifts or donations made within four categories of relationships are completely exempted from tax. The recipients are also not required to pay any tax. Money as well as movable and immovable property may be transferred without any hesitation.

These four categories are: husband and wife; parents; children; brothers and sisters.

For a long time, gifts made between spouses, parents and children have been tax-exempt.

From the current financial year, the scope of tax-exempt gifts has been expanded to include biological brothers and sisters, in addition to spouses, parents and children.

This means that gifts exchanged between siblings will now remain tax-free.

Non-resident Bangladeshis often transfer money to the bank accounts of their brothers and sisters and also give valuable gifts. Many expatriate workers send remittance funds to their siblings bank accounts.

Although remittance income is tax-exempt, the matter was not previously clear in this context. This amendment has now clarified the issue.