(2)Without prejudice to the provisions contained in sub-section (1), gift-tax shall not be charged under this Act in respect of gifts made by any person during the previous year, subject to a maximum of rupees thirty thousand in value.Explanation.-For the purposes of this section,-(a)an individual shall be deemed to be ordinarily resident in the territories to which this Act extends during the previous year in which the gift is made if during that year he is regarded as a resident but not as not ordinarily resident within the meaning of section 6of the Income-tax Act, subject to the modification that references in that section to India shall be construed as references to the territories to which this Act extends;(b)a Hindu undivided family firm or other association of persons shall be deemed to be resident in the territories to which this Act extends during any previous year unless, during that year, the control and management of its affairs was situated wholly outside the said territories;(c)a company shall be deemed to be resident in the territories to which this Act extends during the previous year, if-(i)it is a company formed and registered under the Companies Act, 1956 (1 of 1956), or is an existing company within the meaning of that Act; or(ii)during that year, the control and management of that company was situated wholly in the said territories;(d)"gifts made in contemplation of death" has the same meaning as in section 191 of the Indian Succession Act, 1925 (39 of 1925).
