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THE GIFT-TAX ACT, 1958

Title : THE GIFT-TAX ACT, 1958

Year : 1958



(1) Where a person dies, his executor, administrator, or other legal representative shall be liable to pay out of the estate of the deceased person, to the extent to which the estate is capable of meeting the charge, the gift-tax determined as payable by such person, or any sum which would have been payable by him under this Act if he had not died.

(2) Where a person dies without having furnished a return under section 13, or after having furnished a return which the 1*[Assessing Officer] has reason to believe to be incorrect or incomplete, the 1*[Assessing Officer] may make an assessment of the value of the taxable gifts made by such person and determine the gift-tax payable by him, and for this purpose may, by the issue of the appropriate notice which would have had to be served upon the deceased person if he had survived, require from the executor, administrator or other legal representative of the deceased person any accounts, documents or other evidence which might, under the provisions of section 15, have been required from the deceased person.

(3) The provisions of sections 13, 14 and 16 shall apply to an executor, administrator or other legal representative as they apply to any person referred to in 2*[those sections].

19A - Assessment of persons leaving India

3*[(1) Notwithstanding anything contained in section 3, when it appears to the 4*[Assessing Officer] that any individual may leave India during the current assessment year or shortly after its expiry and that he has no present intention of returning to India, the gifts made by such individual during the period from the expiry of the previous year for that assessment year up to the probable date of his departure from India, shall be chargeable to gifts-tax in that assessment year.

(2) The taxable gifts made in each completed previous year or part of any previous year included in such period shall be chargeable to gift-tax at the rate or rates specified in the Schedule 5*[or, as the case may be, at the rate specified in sub-section (2) of section 3], and separate assessments shall be made in respect of each such completed previous year or part of any previous year.

(3) The 4*[Assessing Officer] may estimate the value of the gifts made by such individual during such period or any part thereof, where it cannot be readily determined in the manner provided in this Act.

(4) For the purpose of making an assessment under sub-section (1), the 4*[Assessing Officer] may serve a notice upon such individual requiring him to furnish, within such time, not being less than seven days, as may be specified in the notice, a return in the same form and verified in the same manner as 6*[a return under sub-section (I) of section 13], giving particulars of the gifts made by him during each completed previous year comprised in the period referred to in sub-section (1) and during any part of the previous year comprised in that period; and the provisions of this Act shall, so far as may be, and subject to the provisions of this section, apply 7*[as if the notice were a notice issued under clause (i) of sub-section (4) of section 15].

(5) The gift-tax chargeable under this section shall be in addition to the tax, if any, chargeable under any other provision of this Act.

(6) Where the provisions of sub-section (I) are applicable, any notice issued by the 4*[Assessing Officer] under 8*[clause (i) of sub-section (4) of section 15] or under section 16 in respect of any gift-tax chargeable under any other provisions of this Act may, notwithstanding anything contained in 8*[clause (i) of sub-section (4) of section 15] or section 16, as the case may be, required the furnishing of the return by such individual within such period, not being less than seven days, as the 4*[Assessing Officer] may think proper.]

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1. Substituted by Act 4 of 1988, section 161, for "Gift-tax Officer" w.e.f. 1-4-1988.

2. Substituted by Act 58 of 1960, section 3 and Sch. II, for "that section" w.e.f. 26-12-1960.

3. Inserted by Act 53 of 1962, section 15 w.e.f. 1-4-1963.

4. Substituted by Act 4 of 1988, section 161, for "Gift-tax Officer" w.e.f. 1-4-1988.

5. Inserted by Act 23 of 1986, section 45 w.e.f. 1-4-1987.

6. Substituted by Act 4 of 1988, section 186(1)(a)(i), for "a return under sub-section(2) of section 13" w.e.f. 1-4-1989.

7. Substituted by Act 4 of 1988, section 186 (1)(a)(ii), for "as if the notice were a notice issued under sub-section (2) of section 13" w.e.f. 1-4-1989.

8. Substituted by Act 4 of 1988, section 186 (1)(b), for "sub-section (2) of Section 13" w.e.f. 1-4-1988.

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(1) Where, at the time of making an assessment, it is brought to the notice of the 1[Assessing Officer] that a partition has taken place among the members of a Hindu undivided family, and the 1*[Assessing Officer], after enquiry is satisfied that the joint family property has been partitioned among the various members or groups of members in definite portions, he shall record an order to that effect and he shall make assessments 2*[on the value of the taxable gifts] made by the family as such as if no partition has taken place and each member or group of members shall be liable jointly and severally for the tax assessed on the value of the taxable gifts made by the joint family as such.

(2) Where the 1*[Assessing Officer] is not so satisfied, he may, by order, declare that such family shall be deemed for the purposes of this Act to continue to be a Hindu undivided family.

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1. Substituted by Act 4 of 1988, section 161, for "Gift-tax Officer" w.e.f. 1-4-1988.

2. Substituted by Act 58 of 1960, section 3 and Schedule II, for "on the amount of taxable gifts" w.e.f. 26-12-1960.

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(1) Where a firm or association of persons liable to pay gift-tax has been discontinued or dissolved, the 1*[Assessing Officer] shall determine the gift-tax payable by the firm or association of persons as such as if no such discontinuance or dissolution has taken place.

(2) If the 1*[Assessing Officer], the 2*[Deputy Commissioner (Appeals)] 3*[the Commissioner (Appeals)] or the Appellate Tribunal in the course of any proceedings under this Act in respect of any such firm or other association of persons as is referred to in sub-section (1) is satisfied that the firm or association is guilty of any of the acts specified in clause (a) or clause (b) or clause (c) of sub-section (1) of section 17, he or it may impose or direct the imposition of a penalty in accordance with the provisions of that section.

(3) Every person who was at the time of such discontinuance or dissolution a partner of the firm or a member of the association, as the case may be, shall be jointly and severally liable for the amount of tax or penalty payable, and all the provisions of Chapter VII, so far as may be, shall apply to any such assessment or imposition penalty.

21A - Assessment of donee when donor connot be found

4*[(1) Where an 5*[Assessing Officer] after using all due and reasonable diligence cannot find the donor who has made any taxable gifts, for the purpose of service of notice under sub-section (2) of section 13 or under section 16, the 5*[Assessing Officer] may make an assessment of the value of all such taxable gifts made by him and determine the gift-tax payable by him and for this purpose may, by the issue of the appropriate notice which would have had to be served upon the donor, require from the done or donees any accounts, documents or other evidence which might, under the provisions of section 15, have been required from the donor.

(2) Where any assessment in respect of the taxable gifts made by the donor has been made under sub-section(1), every done shall be liable for the gift-tax so assessed:

Provided that where the donees are more than one, they shall be jointly and severally liable for the amount of the gift-tax so assessed:

Provided further that the amount of the gift-tax which may be recovered from each done shall not exceed the value of the gift made to him as on the date of the gift.

(3) The provisions of sections 13, 14 and 16 shall apply to a done as the apply to any person referred to in those sections.]

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1. Substituted by Act 4 of 1988, section 161, for "Gift-tax Officer" w.e.f. 1-4-1988.

2. Substituted by Act 4 of 1988, section 161, for "Appellate Assistant Commissioner" w.e.f. 1-4-1988.

3. Inserted by Act 29 of 1977, section 39 and Sch V, Pt.III w.e.f. 10-7-1978.

4.Inserted by Act 53 of 1962, section 16 w.e.f. 1-4-1963.

5. Substituted by Act 4 of 1988, section 161, for "Gift-tax Officer" w.e.f.1-4-1988.

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Last updated on July, 2016

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