Inclusion of gifts by the deceased during his life time. - Income Tax - 1060/CBDT

INSTRUCTION NO. 1060/CBDT Dated : May 23, 1977 Section(s) Referred: 9 ,10 ,46 Statute: Estate Duty Act Sections 9 10 of the E.D. Act provide for inclusion of gifts made by the deceased during his life time in the principal value of the estate. Section 46 of the E.D. Act provides for abatement of debt due from the deceased, to an extent proportionate to the value of any of the consideration given for such a debt which consisted of (a) the property derived from the deceased or(b) consideration not being such property but given by any person who was at any time entitled to or amongst whose resources there was at any time included any property derived from the deceased. 2. A question may arise whether in a case in which the deceased had made a gift so as to attract the provisions of section 9 or 10 and subsequently the donee advances a loan of the gifted amount to the deceased, provisions of section 9,10 46 can be invoked simultaneously. It is clarified that the provisions of section 9,10 46 can be invoked simultaneously provided the conditions mentioned in the said sections are otherwise applicable.