85[Value of gifts, how determined.866. (1) Subject to the provisions of sub-section (2), the value of any property, other than cash, transferred by way of gift shall, for the purpose of this Act, be its value as on the date on which the gift was made and shall be determined in the manner laid down in Schedule II.87(2) Where a person makes a gift which is not revocable for a specified period, the value of the property gifted shall be the capitalised value of the income from such property during the period for which the gift is not revocable.]
85. Substituted for the following by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989 :"6. Value of gifts, how determined.-(1) The value of any property other than cash transferred by way of gift, shall, subject to the provisions of sub-sections (2) and (3), be estimated to be the price which in the opinion of the Assessing Officer, it would fetch if sold in the open market on the date on which the gift was made.(2) Where a person makes a gift which is not revocable for a specified period, the value of the property gifted shall be the capitalised value of the income from the property gifted during the period for which the gift is not revocable.(3) Where the value of any property cannot be estimated under sub-section (1) because it is not saleable in the open market, the value shall be determined in the prescribed manner."
86. See also Circular No. 635, dated 20-8-1992. For details, see Referencer.
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