Whether date on which gift is made by assessee is to be excluded for the purposes of allowing rebate on advance payment of gift-tax under the section - Income Tax - 164/1975

Circular No. 164 Dated 4/6/1975 Sections 18 and 18A Assessment SECTION 18 l REBATE ON ADVANCE PAYMENTS Whether date on which gift is made by assessee is to be excluded for the purposes of allowing rebate on advance payment of gift-tax under the section Section 18 provides that if a person making a taxable gift pays into the treasury, within fifteen days of his making the gift, the amount of tax due on the gift, he shall at the time of assessment under section 15, be given credit, in addition to the amount so paid, for an amount equal to ten per cent of the amount so paid. A question arose as to whether the date of making the gift is to be excluded while computing the period of 15 days mentioned in section 18. The Board are advised that under section 18 the date on which the gift is made by the assessee is to be excluded for this purpose. For example, in a case where the date of the gift is March 31, the assessee has time to pay the tax on the gift right up to and inclusive of April 15, unless 15th happens to be a closed holiday in which case the tax can be paid even on the succeeding day. Circular : No. 164 [ F. No. 329/3/73-GT ], dated 4-6-1975 .