The Gift-Tax Act, 1958
32. Recovery of tax and penalties.
- Any amount specified as payable in a notice of demand under section 31 shall be paid within thirty-five days of the service of the notice at the place and to the person mentioned in the notice:
Provided that, where the Gift-tax Officer has any reason to believe that it will be detrimental to revenue if the full period of thirty - five days aforesaid is allowed, he may, with the previous approval of the Inspecting Assistant 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 thirty-five days aforesaid, as may be specified by him in the notice of demand.
- 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 3[twelve per cent] @ per annum from the day commencing after the end of the period mentioned in sub-section (1):
- Subs. by Act 53 of 1962, s. 23, for s. 29 (w.e.f. 1-4-1963).
- Subs. by s. 24, ibid., for ss. 31, 32 and 33 (w.e.f. 1-4-1963).
- Subs. by Act 16 of 1972, s.52 (w.e.f. 1-4-1972).
888E1[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 section28, 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.]
- 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 Gift-tax 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.
- 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,
- 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.
- Where the assessee has presented an appeal under section 22, the Gift-tax 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 un disposed of.