Section 83 - Amendment of section 15 - Direct Tax Laws (Amendment) Act, 1989

83. Amendment of section 15. In section 15 of the Gift-tax Act [as substituted by section 170 of the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988)],- (a) in sub-section (1), in clause (a), after the proviso, the following proviso shall be inserted, namely :- Provided further that an intimation for any tax or interest due under this clause shall not be sent after the expiry of two years from the end of the assessment year in which the gifts were first assessable. ; (b) after sub-section (1), the following sub-section shall be inserted, namely :- (1A) (a) Where in the case of any person, the taxable gift, as a result of the adjustments made under the proviso to clause (a) of sub-section (1), exceeds the taxable gift declared in the return by any amount, the Assessing Officer shall,- (i) further increase the amount of tax payable under sub-section (1) by an additional gift-tax calculated at the rate of twenty per cent. of the tax payable on such excess amount and specify the additional gift-tax in the intimation to be sent under sub-clause (i) of clause (a) of sub-section (1); (ii) where any refund is due under sub-section (1), reduce the amount of such refund by an amount equivalent to the additional gift-tax calculated under sub-clause (i) . (b) Where as a result of an order under section 22 or section 23 or section 24 or section 26 or section 28 or section 34, the amount on which additional gift-tax is payable under clause (a) has been increased or reduced, as the case may be, the additional gift-tax shall be increased or reduced accordingly, and,- (i) in a case where the additional gift-tax is increased, the Assessing Officer shall serve on the assessee a notice of demand under section 31; (ii) in a case where the additional gift-tax is reduced, the excess amount paid, if any, shall be refunded. Explanation .- For the purposes of this sub-section, tax payable on such excess amount means the difference between the tax on the taxable gift and the tax that would have been chargeable had such taxable gift been reduced by the amount of adjustments. ; (c) in sub-section (6), in the opening portion, after the words under this Act, , the words and figures where under the provisions of section 6 read with Schedule II. the fair market value of any property transferred by way of gift is to be taken into account in such assessment, shall be inserted.