Indian Bare Acts

Search Alphabatically :

THE GIFT-TAX ACT, 1958

Title : THE GIFT-TAX ACT, 1958

Year : 1958



1*[Subject to the provisions of this Act, gift-tax shall be payable by the donor but when in the opinion of the 2*[Assessing Officer] the tax cannot be recovered from the donor, it may be recovered from the done:

Provided that where the donees are more than one, they shall be jointly and severally liable for the amount of tax determined to be payable by the donor:

Provided further that the amount of 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.]

----------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act, 53 of 1962, section 23 w.e.f. 1-4-1963.

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

----------------------------------------------------------------------------------------------------------------------------------------------------------



Gift-tax payable in respect of any gift comprising immovable property shall be a first charge on that property but any such charge shall not affect the title of a bona fide purchaser for valuable consideration without notice of the charge.



1*[When any tax, interest, penalty, fine or any other sum is payable in consequence of any order passed under this Act, the 2*[Assessing Officer] shall serve upon the assessee a notice of demand in the prescribed form specifying the sum so payable.]

-----------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act 53 of 1962. section 24 w.e.f. 1-4-1963.

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

-----------------------------------------------------------------------------------------------------------------------------------------------------



1*[(1) Any amount specified as payable in a notice of demand under section 31 shall be paid within 2*[thirty days] of the service of the notice at the place and to the person mentioned in the notice:

Provided that, where the 3*[Assessing Officer] has any reason to believe that it will be detrimental to revenue if the full period of 2*[thirty days] aforesaid is allowed, he may, with the previous approval of the 4*[Depury Commissioner], direct that the sum specified in the notice of demand shall be paid within such period being a period less than the period of 2*[thirty days] aforesaid, as may be specified by him in the notice of demand.

(2) If the amount specified in any notice of demand under section 3 i is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at 5*[one and one-half per cent, for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section(1) and ending with the day on which the amount is paid]:

6*[Provided that where as a result of an order under section 22, or section 23, or section 24, or section 25, or section 26, or section 28, or section 34, the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded:]

7*[Provided further, that in respect of any period commencing on or before the 31st day of March, 1989, and ending after that date, such interest shall, in respect of so much of such period as falls after that date, be calculated at the rate of one and one-half per cent for every month or part of a month.]

(3) Without prejudice to the provisions contained in sub-section (2), on an application made by the assessee before the expiry of the due date under sub-section (1), the 3[Assessing Officer] may extend the time for payment or allow payment by installments subject to such conditions as he may think fit to impose in the circumstances of the case.

(4) If the amount is not paid within the time limited under sub-section (1) or extended under sub-section (3), as the case may be, at the place and to the person mentioned in the said notice, the assessee shall be deemed to be in default.

(5) If, in a case where payment by installments is allowed under sub-section (3), the assessee commits default in paying any one of the installments within the time fixed under that sub-section, the assessee shall be deemed to be in default as to the whole of the amount then outstanding, and the other installment or installments shall be deemed to have been due on the same date as the installment actually in default.

(6) Where the assessee has presented an appeal under section 22, the [Assessing Officer] may in his discretion and subject to such conditions as he may think fit to impose in the circumstances of the case, treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the time for payment has expired as long as such appeal remains undisposed of.]

-----------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act 53 of 1962, section 24 w.e.f. 1-4-1963.

2. Substituted by Act 4 of 1988, section 178 (a), for "thirty five days" w.e.f. 1-4-1989.

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

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

5. Substituted by Act 4 of 1988, section 178 (b) (i), for" fifteen per cent. per annum from the day commencing after the end of the period mentioned in sub-section (1)" w.e.f. 1-4-1989). In the above substituted matter the words" fifteen per cent." were Substituted by Act 67 of 1984, section 75. for twelve per cent." w.e.f. 1-10-1984. Earlier the words "twelve per cent." were subs by Act 16 of 1972, section 52, for "nine per cent." w.e.f. 1-4-1972. Prior to that the words" nine per cent." were Substituted by Act 27 of 1967, section 3, for" six per cent." w.e.f. 1-10-1967. Still earlier the words "six per cent." were Substituted by Act 15 of 1965, section 31 (ii), for "four per cent." w.e.f. 1-4-1963.

6. Inserted by Act 5 of 1964, section 52 (c) w.r.e.f. 1-4-1963.

7. Inserted by Act 4 of 1988, section 178 (b) (ii) w.e.f. 1-4-1988.

--------------------------------------------------------------------------------------------------------------------------------------------------------



1*[The provisions contained in 2[sections 221 to 227, 228A], 229, 231 and 232 of the Income-tax Act and the Second and Third Schedules to that Act and any rules made there under shall, so far as may be, apply as if the said provisions were provisions of this Act and referred to gift-tax and sums imposed by way of penalty, fine and interest under this Act instead of to income-tax and sums imposed by way of penalty, fine and interest under that Act 3[and to the corresponding gift-tax authorities instead of to the income-tax authorities specified therein].

Explanation I.-Any reference to sub-section (2) or sub-section (6) of section 220 of the Income-tax Act in the said provisions of that Act or the rules made there under shall be construed as references to sub-sections (2) and (6) respectively of section 32 of this Act.

4*[Explanation II.-The Chief Commissioner or Commissioner and the Tax Recovery Officer referred to in the Income-tax Act shall be deemed to be the corresponding gift-tax authorities for the purpose of recovery of gift-tax and sums imposed by way of penalty, fine and interest under this Act.]

33A - Refunds

(1) Where, as a result of any order passed in appeal or other proceeding under this Act, refund of any amount becomes due to the assessee, the 5*[Assessing Officer] shall, except as otherwise provided in this Act, refund the amount to the assessee without his having to make claim in that behalf:

6*[Provided that where, by the order aforesaid.-

(a) An assessment is set aside or cancelled and an order of fresh assessment is directed to be made, the refund, if any, shall become due only on the making of such fresh assessment;

(b) The assessment is annulled, the refund shall become due only of the amount, if any, of the tax paid in excess of the tax chargeable on the 7*[taxable gifts] returned by the assessee.]

8*[(2) Where refund of any amount becomes due to the assessee as a result of an order under this Act or under the provisions of sub-section (1) of section 15 after a return has been made under section 13 or section 14 or in response to a notice under clause (i) of sub-section (4) of section 15 and the Assessing Officer is of the opinion, having regard to the fact that,-

(i) A notice has been issued, or is likely to be issued, under sub-section (2) of section 15 in respect of the said return; or

(ii) The order is the subject-matter of an appeal or further proceeding; or

(iii) Any other proceeding under this Act is pending;

That the grant of the refund is likely to adversely affect the revenue, the Assessing Officer may, with the previous approval of the Chief Commissioner or Commissioner, withhold the refund till such time as the Chief Commissioner or Commissioner may determine.]

(3) Where a refund is due to the assessee in pursuance of an order referred to in subsection (1) and the 5*[Assessing Officer] does not grant the refund within a period of six months from the date of such order, the Central Government shall pay to the assessee simple interest at 9*[fifteen per cent.] per annum on the amount of refund due from the date immediately following the expiry of the period of six months aforesaid to the date on which the refund is granted.

10*[(3A) Where the whole or any part of the refund referred to in sub-section (3) is due to an assessee as a result of any amount having been paid by him after the 31st day of March, 1975, in pursuance of any order of assessment or penalty and such amount or any part thereof having been found in appeal or other proceeding under this Act to be in excess of the amount which such assessee is liable to pay as tax or penalty, as the case may be, under this Act, the Central Government shall pay to such assessee simple interest at the rate specified in subsection (3) on the amount so found to be in excess from the date on which such amount was paid to the date on which the refund is granted:

Provided that, where the amount so found to be in excess was paid in installments, such interest shall be payable on the amount of each such installment or any part of such installment which was in excess, from the date on which such installment was paid to the date on which the refund is granted:

Provided further that no interest under this sub-section shall be payable for a period of one month from the date of the passing of the order in appeal or other proceeding :

Provided also that, where interest is payable to an assessee under this sub-section, no interest under sub-section (3) shall be payable to him in respect of the amount so found to be in excess.]

(4) Where a refund is withheld under the provisions of sub-section (2), the Central Government shall pay interest at the aforesaid rate on the amount of refund ultimately determined to be due as a result of the appeal or further proceedings for a period commencing after the expiry of six months from the date of the order referred to in that sub-section to the date the refund is granted.

11*[(4 A) The provisions of sub-sections (3), (3 A) and (4) shall not apply in respect of any assessment for the assessment year commencing on the 1st day of April, 1989, or any subsequent assessment year.

(4B) (a) 12*[Where refund of any amount becomes due to the assessee under this Act,] he shall, subject to the provisions of this sub-section, be entitled to receive, in addition to the said amount, simple interest thereon calculated at the rate of one 13[* * *] per cent, for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted.

Explanation.-For the purposes of this clause, "date of payment of the tax or penalty" means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 31 is paid in excess of such demand.

(b) If the proceedings resulting in the refund are delayed for reasons attributable to the assessee, whether wholly or in part, period of the delay so attributable to him shall be excluded from the period for which interest is payable, and where any question arises as to the period to be excluded, it shall be decided by the Chief Commissioner or Commissioner whose decision thereon shall be final.

(c) Where as a result of an order under 14*[sub-section (3) or sub-section (5) of section 15 or] section 16 or section 22 or section 23 or section 24 or section 26 or section 28 or section 34 the amount on which the interest was payable under clause (a) has been increased or reduced, as the case may be, interest shall be increased or reduced accordingly, and, in a case where the interest is reduced, the Assessing Officer shall serve on the assessee a notice of demand in the prescribed form specifying the amount of the excess interest paid and requiring him to pay such amount; and such notice of demand shall be deemed to be a notice under section 31 and the provisions of this Act shall apply accordingly.

(d) The provisions of this sub-section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989, and subsequent assessment years.]

(5) Where under any of the provisions of this Act, a refund is found to be due to any person, the 5*[Assessing Officer], 15*[Deputy Commissioner (Appeals)], 16*[Commissioner (Appeals)] or 17*[Chief Commissioner or Commissioner], as the case may be, may, in lieu of payment of the refund, set off the amount to be refunded or any part of that amount, against the sum, if any, remaining payable under this Act by the person to whom the refund is due, after giving an intimation in writing to such person of the action proposed to be taken under this section.]

---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Substituted by Act 53 of 1962, section 24 w.e.f. 1-4-1963.

2. Substituted by Act 16 of 1972, section 53, for "sections 221 to 227 w.e.f. 1-4-1972.

3. Substituted by Act 4 of 1988, section 179(a), for certain words w.e.f. 1-4-1989.

4. Substituted by Act 4 of 1988, section 179 (b) w.e.f. 1-4-1989.

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

6. Inserted by Act 4 of 1988, section 180(i) w.e.f. 1-4-1989.

7. Substituted by Act 3 of 1989, section 90(a), for "total income" w.e.f. 1-4-1989.

8. Substituted by Act 36 of 1989, section 33 w.e.f. 1-4-1989.

9. Substituted by Act 67 of 1984 section 75, for "twelve per cent." w.e.f. 1-10-1984. Earlier the words "twelve per cent." were Substituted by Act 16 of 1972, section 52, for "nine per cent." w.e.f. 1-4-1972. Prior to that the words "nine per cent." were Substituted by Act 27 of 1967 section 3, for "six per cent." w.e.f. 1-10-1967. Still earlier, the words "six per cent." were Substituted by Act 15 of 1965, section 21 (ii) for "four per cent." w.e.f. 1-4-1965.

10. Inserted by Act 41 of 1975, section 118 w.e.f. 1-10-1975.

11. Inserted by Act 4 of 1988, section 180 (ii) w.e.f. 1-4-1989.

12. Substituted by Act 3 of 1989, section 9(b) (i) for "where in pursuance of any order passed under this Act, the refund of any amount becomes due to the assessee". w.e.f. 1-4-1989.

13. The words "and a half" omitted by Act 49 of 1991, section 89 w.e.f. 1-10-1991.

14. Inserted by Act 3 of 1989, section 90 (b) (ii) w.e.f. 1-4-1989.

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

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

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

-------------------------------------------------------------------------------------------------------------------------------------------------------

Last updated on July, 2016

Find a Lawyer

Legal Hall of Fame

The current Legal Luminaries of India, the credible names in the legal circle along with those who would be the leading stars of the next decade. These are some of the reliable names in field of law. Nominate the Legal Stars of tomorrow

More

Recent Judgment


Sudha Mishra vs. Surya Chandra Mishra( R.F.A 299 of 2014

The Hon'ble High Court of Delhi in Sudha Mishra vs. Surya Chandra Mishra (R.F.A 299 of 2014)has ruled that a woman has a right over the property of her husband but she cannot claim a right to live in the house of her parents-in-law

More

Bare Acts

Helpline Law provides a user friendly compendium of Indian Law & Bare Acts. Get a complete list & detail of Indian Bare Acts, with amendments and repeals. It comes with easy-to-use features like Search by bare acts & by year. You can even email the information to yourself!

More

Have a Legal Matter ?
Need a Lawyer?

Have a Legal Matter ?

Need a Lawyer?

Male
Female