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Gift Tax Act, 1958

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Gift Tax Act, 1958 came into effect from April 1, 1958 and was deleted vide the Finance Act, 1998 effective October 1, 1998. This has made all gift transactions after October 1, 1998 to be made free from payment of this tax. The Finance Act, 2004 has revived the gift tax partially, in the form of donee-based Income-tax instead of as Gift tax.

Sections

  • Section 2(xii): Defines 'Gift' as
    • Transfer from one person to another
    • of existing movable or immovable property
    • made voluntarily
    • without consideration
    • in money or money's worth
    • includes the transfer or conversion of any property referred to in Section 4
  • Explanation to Gift clarified
  • Section 3 is the Charging section and explains the Charge of Gift Tax
  • Section 4 deals with certain transactions that are deemed to be gifts
  • Section 5 exempts certain gifts from gift tax. Burden of proof to claim exemption lies on assessee.
    • Exemption in respect of gifts of foreign immovable property
    • Exemption in respect of gifts of foreign movable property
    • Exemption in respect of gifts by a non-resident person to a resident person of a foreign currency
    • Exemption in respect of certain gifts made by a person residing outside India.
  • Section 6 deals with valuation of gifts
  • Section 6a deals with aggregation of gifts
  • Section 7 deals with gift tax authorities and their jurisdiction
  • Section 8: Control of gift tax authorities
  • Section 9: Instructions to subordinate authorities
  • Section 10(1): Jurisdiction of Assessing Officers and power to transfer cases
  • Section 10(2): Modifications referred to in sub-section (9)
  • Section 12A: Power of Chief Commissioner or Commissioner and of Deputy Commissioner to make inquiries under this Act
  • Section 13: Return of gifts
  • Section 14: Return after due date and amendment of return
  • Section 14a: Return by whom to be signed
  • Section 14b: Self Assessment
  • Provisions related to prevention of avoidance of gift tax
  • Tax of deceased person payable by legal representatives
  • Assessment of persons leaving India
  • Section 20: Assessment after partition of a Hindu Undivided Family
  • Liability in case of a discontinued firm or association of persons
  • Section 21a: Assessment of donee when donor cannot be found
  • Appeals, Revisions and References
  • Payment and recovery of Gift tax
  • Section 33a: Penalties
  • Section 34: Rectification of mistakes

Related Indian Acts

Related International Acts