4
[29. Gift-tax by whom payable. — Subject to the provisions of this Act, gift-tax shall be payable
by the donor but when in the opinion of the 5
[Assessing Officer] the tax cannot be recovered from the
donor, it may be recovered from the donee:
Provided that where the donees are more than one, they shall be jointly and severally liable for the
amount of tax determined to be payable by the donor:
Provided further that the amount of tax which may be recovered from each donee shall not exceed the
value of the gift made to him as on the date of the gift.]
30. Gift-tax to be charged on property gifted. — Gift-tax payable in respect of any gift comprising
immovable property shall be a first charge on that property but any such charge shall not affect the title of
a bona fide purchaser for valuable consideration without notice of the charge.
6
[31 Notice of demand. — When any tax, interest, penalty, fine or any other sum is payable in
consequence of any order passed under this Act, the 5
[Assessing Officer] shall serve upon the assessee a
notice of demand in the prescribed form specifying the sum so payable.]
32. Recovery of tax and penalties. — (1) Any amount specified as payable in a notice of demand
under section 31 shall be paid within
7
[thirty days] of the service of the notice at the place and to the
person mentioned in the notice:
Provided that, where the 2
[Assessing Officer] has any reason to believe that it will be detrimental to
revenue if the full period of 7
[thirty days] aforesaid is allowed, he may, with the previous approval of the
8
[
9
[Joint] Commissioner], direct that the sum specified in the notice of demand shall be paid within such
period being a period less than the period of 7
[thirty days] aforesaid, as may be specified by him in the
notice of demand.
1. Subs. by the Laccadive, Minicoy and Amindivi Islands (Alteration of Name) Adaptation of Laws Order, 1974, for “the
Laccadive, Minicoy and Amindivi Islands” (w.r.e.f. 1-11-1973).
2. Ins. by the Punjab Reorganisation and Delhi High Court (Adaptation of Laws on Union Subjects) Order, 1968
(w.r.e.f. 1-11-1966).
3. Ins. by the Taxation Laws (Extension to Union Territories) Regulation, 1963 (3 of 1963), s. 3 and the Schedule
(w.e.f. 1-4-1963).
4. Ins. by Act 53 of 1962, s. 23 (w.e.f. 1-4-1963).
5. Subs. by Act 4 of 1988, s. 161, for “Gift-tax Officer” (w.e.f. 1-4-1988).
6. Subs. by Act 53 of 1962, s. 24, for Section 31, 32 and 33 (w.e.f. 1-4-1963).
7. Subs. by Act 4 of 1988, s. 178, for “thirty-five days” (w.e.f. 1-4-1989).
8. Subs. by s. 161, ibid, for “Inspecting Assistant Commissioner” (w.e.f. 1-4-1988).
9. Subs. by Act 21 of 1998, s. 76, for “Deputy Commissioner” (w.e.f. 1-10-1998).
40
(2) If the amount specified in any notice of demand under section 31 is not paid within the period
limited under sub-section (1), the assessee shall be liable to pay simple interest at 1
[one and one-half per
cent. for every month or part of a month comprised in the period commencing from the day immediately
following the end of the period mentioned in sub-section (1) and ending with the day on which the
amount is paid]:
2
[Provided that where as a result of an order under section 22, or section 23, or section 24, or
section 25, or section 26, or section 28, or section 34, the amount on which interest was payable under
this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if
any, shall be refunded:]
3
[Provided further that in respect of any period commencing on or before the 31st day of March, 1989
and ending after that date, such interest shall, in respect of so much of such period as falls after that date,
be calculated at the rate of one and one-half per cent. for every month or part of a month.]
(3) Without prejudice to the provisions contained in sub-section (2), on an application made by the
assessee before the expiry of the due date under sub-section (1), the 4
[Assessing Officer] may extend the
time for payment or allow payment by instalments subject to such conditions as he may think fit to
impose in the circumstances of the case.
(4) If the amount is not paid within the time limited under sub-section (1) or extended under
sub-section (3), as the case may be, at the place and to the person mentioned in the said notice, the
assessee shall be deemed to be in default.
(5) If, in a case where payment by instalments is allowed under sub-section (3), the assessee commits
default in paying any one of the instalments within the time fixed under that sub-section, the assessee
shall be deemed to be in default as to the whole of the amount then outstanding, and the other instalment
or instalments shall be deemed to have been due on the same date as the instalment actually in default.
(6) Where the assessee has presented an appeal under section 22, the 4
[Assessing Officer] may in his
discretion and subject to such conditions as he may think fit to impose in the circumstances of the case,
treat the assessee as not being in default in respect of the amount in dispute in the appeal, even though the
time for payment has expired as long as such appeal remains undisposed of.]
33. Mode of recovery. —The provisions contained in 5
[sections 221 to 227, 228A,] 229, 231 and
232 of the Income-tax Act and the Second and Third Schedules to that Act and any rules made thereunder
shall, so far as may be, apply as if the said provisions were provisions of this Act and referred to gift-tax
and sums imposed by way of penalty, fine and interest under this Act instead of to income-tax and sums
imposed by way of penalty, fine and interest under that Act 6
[and to the corresponding gift-tax authorities
instead of to the income-tax authorities specified therein].
1. Subs. by Act 4 of 1988, s. 178, for “fifteen per cent. annum from the day commencing after the end of the period
mentioned in sub-section (1)” (w.e.f. 1-4-1989).
2. The proviso added by Act 5 of 1964, s. 52 (1-4-1963).
3. The proviso ins. by Act 4 of 1988, s. 178 (w.e.f. 1-4-1989).
4. Subs. by s. 161, ibid., for “Gift-tax Officer” (w.e.f. 1-4-1988).
5. Subs. by Act 16 of 1972, s. 53, for “sections 221 to 227” (w.e.f. 1-4-1972).
6. Subs. by Act 4 of 1988, s. 179, for “Gift-tax Officer and Commissioner of Gift-tax instead of to Income tax Officer and
Commissioner of Income-tax” (w.e.f. 1-4-1988).
41
Explanation I.— Any reference to sub-section (2) or sub-section (6) of section 220 of the
Income-tax Act in the said provisions of that Act or the rules made thereunder shall be construed as
references to sub-sections (2) and (6) respectively of section 32 of this Act.
1
[Explanation II.—The Chief Commissioner or Commissioner and the Tax Recovery Officer
referred to in the Income-tax Act shall be deemed to be the corresponding gift-tax authorities for the
purpose of recovery of gift-tax and sums imposed by way of penalty, fine and interest under this
Act].]