INCOME TAX

Order under section 9(2)(a) of the Gift-tax Act, 1958--Extension of due date for filing the return of gifts for the assessment year 1990-91 in certain cases

Circular No. 602

Dated 5/6/1991

Reference is invited to Board's order under section 9(2)(a) of the Gift-tax Act, 1958 (F.No.143/6/91-TPL dated 30-5-91), whereby the due date for filing of return of gifts for the assessment year 1990-91 has been extended from 30-6-1990 to 30-6-1991 in the case of those assessees who had made any gift or gifts during the period 20th March, 1990 to 31st March, 1990. Interest chargeable under section 16B of the Act for late filing of the return of gifts has also been waived in such cases up to 30th June, 1991.

2.1 Further, in case any such assessee had already filed the return of gifts for the assessment year 1990-91 in respect of any gift or gifts made by him during the period 1-4-1989 to 19-3-1990, wherein the gift or gifts made during the period 20-3-1990 to 31-3-1990, had not been disclosed, the levy of penalty under section 17(1)(c) of the Act for not disclosing such gifts in that return has also been waived, if such assessee files a revised return by 30-6-1991, disclosing all the gifts in that revised return.

2.2 However, where, in such a case, an assessment under section 15(3) of the Act has already been completed on the basis of the original return, the levy of penalty under section 17(1)(c) shall be waived if the assessee informs the Assessing Officer in writing by 30-6-1991, the particulars of the gift or gifts made by him during the period 20-3-1990, to 31-3-1990, which had not been disclosed in the original return filed by him.

3. The above mentioned order under section 9(2)(a) of the Act has been passed to remove any hardship in such cases resulting from the uncertainty that prevailed regarding the treatment of gifts made during the period 20-3-1990 to 31-3-1990, on account of the provisions of the Gift-tax Bill, 1990, which has since lapsed because of the dissolution of the Lok Sabha on 13-3-1990.

4. A Press Note has also been issued clarifying the position which appeared in the newspapers on 1st June, 1991 and 3rd June, 1991. It has also been clarified in the Press Note that the date of filing the return of gifts for the assessment year 1991-92 will remain 30-6-1991 in all cases and the return of gifts for this assessment year has to be filed under the provisions of the existing Gift-tax Act, 1958. A copy of the Press Note, is enclosed.

5.1 Assessees falling under the categories mentioned in paragraphs 2.1 and 2.2 above should file the revised returns or the necessary information in writing before the Assessing Officer, as the case may be, for the assessment year 1990-91 on or before 30-6-1991, so that they can avoid the penal consequences of section 17(1)(c) of the Act.

5.2 Where any such revised returns or information in writing is received from the assessees, the Assessing Officer must take prompt action to bring to tax all the gifts made during the period 1-4-1989 to 31-3-1990 relevant for the assessment year 1990-91.

(Sd.) K.K. Mittal,

Director (TPL-I),

Central Board of Direct Taxes