Section 18:
Rebate on advance payments.
1If a person making a taxable gift pays into the treasury
within fifteen days of his making the gift any part of the amount of tax due on the gift calculated at rates specified in the Schedule 2
or at the rate specified in sub-section (2) of section 3, he shall, at the time of
assessment under section 15, be given credit—
(i) for the amount so paid; and
(ii) for a sum equal to one-ninth of the amount so paid, so however, that such sum shall in no
case exceed one-tenth of the tax due on the gift.
Explanation.—If a person makes more than one taxable gift in the course of a previous year, the
amount of tax due on any one of such gifts shall be the difference between the total amount of tax due on
the aggregate value of all the taxable gifts so far made, including the taxable gift in respect of which tax
has to be paid, calculated at the rates specified in the Schedule or, as the case may be 3
at the rate
specified in sub-section (2) of section 3, and the total amount of tax on the aggregate value of all the gifts
made during that year, excluding the taxable gift in respect of which tax has to be paid, calculated at the
rates specified in the Schedule or, as the case may be, 3
at the rate specified in sub-section (2) of
section 3.
Notes:
1. Subs. by Act 41 of 1975, s. 115, for section 18 (w.e.f. 1-4-1976).
2. Subs. by Act 23 of 1986, s. 44, for or, in case where the provisions of Section 6-A are applicable to a gift, in the manner
specified in that section (w.e.f. 1-4-1987).
3. Subs. by s. 44, ibid., for in the manner specified in section 6A (w.e.f. 1-4-1987).