then the collector of internal revenue of such district as may be designated by the Commissioner.

Sec. 930, I. R. C., supra, originated 1916 as Sec. 200, R. A. of 1916.

For any amendments prior to 1944, see

Eighth Edition, p. 472,

Ninth

Edition, p. 1054.

Sec. 935. Rate of tax.

Sec. 931. Cross references.
Sec. 931. (a) "Transferee."-

For definition of "transferee," see section 900 (e). Sec. 931. (b) "Resident."

For "resident" as including citizen with estate in China, see section 851.

Sec. 935. (a) In addition to the estate tax imposed by section 810 or 860, there shall be imposed upon the transfer of the net estate of every decedent dying after the date of the enactment of this title, whether a citizen or resident of the United States or a nonresident not a citizen of the United States, a tax equal to the excess of

Sec. 935. (a) (1) the amount of a tentative tax computed under subsection (b) of this section, over

Sec. 935. (a) (2) the amount of the tax imposed by section 810, in the case of a citizen or resident of the United States, or 860, in the case of a nonresident not a citizen of the United States, computed without regard to the provisions of this subchapter.

Sec. 935. (b) The tentative tax referred to in subsection (a) (1) of this section shall be the tentative tax shown in the following table:

The tentative tax
shall be:

3% of the net estate.
$150, plus 7% of excess

over $5,000.

$500, plus 11% of ex

cess over $10,000. $1,600 plus 14% of ex

cess over $20,000. $3,000, plus 18% of ex

cess over $30,000. $4,800, plus 22% of ex

cess over $40,000. $7,000, plus 25% of ex

cess over $50,000. $9,500, plus 28% of ex

cess over $60,000. $20,700, plus 30% of

excess over $100,000. $65,700, plus 32% of

excess over $250,000. $145,700, plus 35% of

excess over $500,000. $233,200, plus 37% of

excess over $750,000. $325,700, plus 39% of excess over $1,000,

000. $423,200, plus 42% of excess over $1,250,000.

The tentative tax
shall be:

$528,200, plus 45% of
excess over $1,500,-
000.
$753,200, plus 49% of
excess over $2,000,-
000.
$998,200, plus 53% of
excess over $2,500,-
000.
$1,263,200 plus 56% of
excess over $3,000,-
000.
$1,543,200, plus 59% of
excess over $3,500,-
000.
$1,838,200, plus 63% of
excess over $4,000,-
000.

$2,468,200, plus 67% of excess over $5,000,

000. $3,138,200, plus 70% of excess over $6,000,

000. $3,838,200, plus 73% of excess over $7,000,

000. $4,568,200, plus 76% of excess over $8,000,000. $6,088,200, plus 77% of excess over $10,000,000.

Sec. 935. (c) For the purposes of this section the value of the net estate shall be determined as provided in subchapter A, except that in lieu of the exemption of $100,000 provided in section 812 (a), the exemption shall be $60,000.

Sec. 935, I. R. C., supra, originated 1932 as Sec.
401, R. A. of 1932.

For any amendments prior to 1944, see-
Eighth Edition, p. 472,

Ninth Edition, p. 1056.

Sec. 936. Credits against tax.

Sec. 936. (a) The credit provided in section 813 (b) (80 per centum credit), shall not be allowed in respect of such additional tax.

Sec. 936. (b) (1) If a tax has been paid under chapter 4 or under Title III of the Revenue Act of

1932, 47 Stat. 245, on a gift, and thereafter upon the death of the donor any amount in respect of such gift is required to be included in the value of the gross estate of the decedent for the purposes of this subchapter, then there shall be credited against the tax imposed by section 935 the amount of the tax paid under chapter 4 or under Title III of the Revenue Act of 1932, with respect to so much of the property which constituted the gift as is included in the gross estate, except that the amount of such credit (A) shall not exceed an amount which bears the same ratio to the tax imposed by section 935 as the value (at the time of the gift or at the time of the death, whichever is lower) of so much of the property which constituted the gift as is included in the gross estate, bears to the value of the entire gross estate, reduced by the aggregate amount of the deductions allowed under subsections (d) and (e) of section 812, and (B) shall not exceed the amount by which the gift tax paid under chapter 4 or under Title III of the Revenue Act of 1932, with respect to so much of the property as constituted the gift as is included in the gross estate, exceeds the amount of the credit under 813 (a) (2).

Sec. 936 (b) (1), I. R. C., supra, amended by Sec. 363 (c), R. A. of 1948, by adding language in italics. Sec. 936 (e) of said Act makes amendment applicable to estates of decedents dying after Dec. 31, 1947.

See, 936, (b) (2) For the purposes of paragraph (1), the amount of tax paid for any year under chapter 4 or under Title III of the Revenue Act of 1932 with respect to any property shall be an amount which bears the same ratio to the total tax paid for such year as the value of such property bears to the total amount of net gifts (computed without dedue tion of the specifie exemption) for such year.

Sec. 936. (b) (2) In applying, with respect to any gift, the ratio stated in clause (A) of paragraph (1), the value at the time of the gift or at the time of the death, referred to in such ratio, shall be reduced

(A) by such amount as will properly reflect the amount of such gift which was excluded in determining (for the purposes of section 1003 (a), or of section 504 (a) of the Revenue Act of 1932) the total amount of gifts made during the year in which the gift was made;

(B) if a deduction with respect to such gift is allowed under section 812 (e) (the so-called “marital deduction")—then by an amount which bears the same ratio to such value (reduced as provided in subparagraph (A) of this paragraph) as the aggregate amount of the marital deductions allowed under section 812 (e) bears to the aggregate amount of such marital deductions computed without regard to subparagraph (H) of section 812 (e) (1); and

(C) if a deduction with respect to such gift is allowed under section 812 (d) (the so-called "charitable deduction")-then by the amount of such value, reduced as provided in subparagraph (A) of this paragraph.

Sec. 936. (b) (3) Where the decedent was the donor of the gift but, under the provisions of section 1000 (f), the gift was considered as made one-half by his spouse—

(A) the term "the amount of the tax paid under chapter 4", as used in paragraph (1) of this subsection, includes the amounts paid with respect to each half of such gift, the amount paid with respect to each being computed in the manner provided in paragraph (4); and

(B) in applying, with respect to such gift, the ratio stated in clause (A) of paragraph (1), the value at the time of the gift or at the time of the death, referred to in such ratio, includes such value with respect to each half of such gift, each such value being reduced as provided in subparagraph (A) of paragraph (2).

Sec. 936. (b) (4) (A) For the purposes of paragraph (1), the amount of tax paid under chapter 4, or under Title III of the Revenue Act of 1932, with respect to any gift shall be an amount which bears the same ratio to the total tax paid for the year in which the gift was made as the amount of such gift bears to the total amount of net gifts (computed without deduction of the specific exemption) for such year.

(B) For the purposes of subparagraph (A) the "amount of such gift" shall be the amount included with respect to such gift in determining (for the purposes of section 1003 (a), or of section 504 (a) of the Revenue Act of 1932) the total amount of gifts made during such year, reduced by the amount of any deduction allowed with respect to such gift under section 1004 (a) (2), or under section 505 (a) (2) of the Revenue Act of 1932 (the so-called "charitable deduction"), or under section 1004 (a) (3) (the so-called "marital deduction").

Sec. 936 (b) (2), I. R. C., supra, as shown in stricken type was in effect with respect to estates of decedents dying prior to Jan. 1, 1948, when it was amended by Sec. 363 (c), R. A. of 1948 as shown in italics. At the same time Sec. 936 (b) (3) and (4), I. R. C., supra, was added by Sec. 363 (c), R. A. of 1948. Sec. 363 (e) of said Act makes amendments applicable to estates of decedents dying after Dec. 31, 1947.

Sec. 936, I. R. C., supra, originated 1932 as Sec. 402, R. A. of 1932.

For any amendments prior to 1944, see

Eighth Edition, p. 473,
Ninth Edition, p. 1062.

Sec. 937. Assessment, collection, and payment of tax.

Except as provided in section 936, the tax imposed by section 935 shall be assessed, collected, and paid, in the same manner, and shall be subject to the same provisions of law (including penalties), as the tax imposed by subchapter A, except that in the case of a citizen or resident of the United States a return shall be required if the value of the gross estate at the time of decedent's death exceeds the amount of the specific exemption provided in section 935 (c). Sec. 937, I. R. C., supra, originated 1932 as Sec. 403, R. A. of 1932.

For any amendments prior to 1944, see-
Eighth Edition, p. 474,

Ninth

Edition, p. 1064.

Sec. 938. Publicity of returns.

For provisions with respect to publicity of returns under this chapter, see subsection (a) (2) of section 55.

Sec. 939. Certain members of armed forces. The tax imposed by section 935 shall not apply to the transfer of the net estate of a citizen or resident of the United States dying on or after December 7, 1941, and before January 1, 1947, while in active service as a member of the military or naval forces of the United States or of any of the other United Nations if such decedent

(1) was killed in action; or

(2) died as a result of wounds or other injuries,

or of disease, suffered while in line of duty by reason of a hazard to which he was subjected as an incident of military or naval service.

Sec. 939, I. R. C., supra, added to I. R. C. by Sec.
10 (a), Act of Oct. 25, 1949.

Sec. 10 (b) of said Act reads as follows:
"(b) If the refund of any overpayment resulting
from the application of this section is prevented on
the date of the enactment of this Act, or within one
year from such date, by the operation of any law
or rule of law (other than section 3761 of the Inter-
nal Code, relating to compromises), refund of such
overpayment may, nevertheless, be made if claim
therefor is filed within one year from the date of
the enactment of this Act. No interest shall be paid
on any overpayment resulting from the application
of this section."