Section 106 - Insertion of new section 6A - Taxation Laws (Amendment) Act, 1975

CHAPTER IV AMENDMENTS TO THE GIFT-TAX ACT, 1958 106. Insertion of new section 6A. In Chapter II of the Gift-tax Act, 1958 (18 of 1958) (hereafter in this Chapter referred to as the Gift-tax Act), after section 6, the following section shall be inserted, namely: 6A. Aggregation of gilts made during a certain period. Notwithstanding anything contained in this Act, where an assessee has made taxable gifts during any previous year and has also made taxable gifts (not being gifts made at any time before the 1st day of June, 1973) during any one or more of the four previous years immediately preceding such previous year, the gift-tax payable by him for the assessment year relevant to such previous year (hereafter in this section referred to as the assessment year) shall be determined in the following manner, namely: (a) the value of the taxable gifts made during any one or more of the four previous years immediately preceding such previous year shall be aggregated with the value of the taxable gifts made by the assessee during such previous year and gift-tax shall be calculated on the aggregate value at the rate or rates applicable for the assessment year; (b) from the amount of gift-tax calculated under clause (a), there shall be deducted an amount equal to the gift-tax payable had the value of the taxable gifts made during one or more of the four previous years immediately preceding such previous year been aggregated and tax levied thereon at the rate or rates applicable for the assessment year, and the balance shall be the amount of gift-tax payable by the assessee. .