ESTATE DUTY (AMENDMENT) ACT, 1984 – CIRCULAR NO. 399, DATED 17-10-1984

1. Amendments at a glance

37

ESTATE DUTY (AMENDMENT)
ACT, 1984

SECTION/SCHEDULE
PARTICULARS
5A(2C)
Scope and commencement of the Amendment Act 6
5B
Exclusion of agricultural lands from the levy of estate duty 3
34(1)(b), (2) Expln.
Provision for aggregation of agricultural lands omitted 4
85
Rule laying formula 5

Explanatory Notes

ESTATE DUTY (AMENDMENT)

ACT, 1984

Introduction

1. The Estate Duty (Amendment) Bill, 1984 as passed by the Parliament, received the assent of the President on August 23, 1984, and has been enacted as Act No. 53 of 1984. This circular explains the substance of the provisions contained in the Estate Duty (Amendment) Act, 1984.

ESTATE DUTY (AMENDMENT)

ACT, 1984

2. The provisions of the Estate Duty (Amendment) Act, 1984 (hereinafter referred to as the Amendment Act), relate to the following matters :

1. Insertion of a new section 5B in the Estate Duty Act, 1953 (hereinafter referred to as the principal Act) relating to exclusion of agricultural lands from the levy of estate duty.

2. Omission of the provisions of clause (b) of sub-section (1) and clause (ii) of the Explanation below sub-section  (2) of section 34 of the principal Act relating to aggregation, for the purposes of determining the rate of estate duty, of agricultural lands, situate in any State in respect of which estate duty under the principal Act is not leviable.

3. Amendment of section 85 of the principal Act by substitution of sub-section (3) relating to rule-laying formula.

ESTATE DUTY (AMENDMENT)

ACT, 1984

Exclusion of agricultural lands from the levy of estate duty

3. The main object of the Amendment Act is to discontinue levy of estate duty in respect of agricultural lands. Section 3 of the Amendment Act accordingly seeks to insert in the principal Act, a new section 5B which provides that the principal Act shall cease to apply to the levy of estate duty in respect of agricultural land.

ESTATE DUTY (AMENDMENT)

ACT, 1984

Provision for aggregation of agricultural lands omitted

4. Section 4 of the Amendment Act provides for omission of the provisions of clause (b) of sub-section (1), and clause (ii) of the Explanation below sub-section (2) of section 34 of the principal Act. The effect of these amendments is that the provisions relating to aggregation, for the purpose of determining the rate of estate duty, of agricultural lands, situate in any State in respect of which estate duty under the principal Act is not leviable, will stand omitted.

ESTATE DUTY (AMENDMENT)

ACT, 1984

Rule  laying  formula

5. Section 5 of the Amendment Act amends the provisions of section 85 of the principal Act relating to laying of the rules before each House of Parliament. The amended provision lays down that every rule made under the principal Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions. If, before the expiry of the session immediately following the session or the successive sessions, both Houses agree to modify the rule or agree that the rule should not be made, then the rule shall have effect in such modified form or shall be of no effect, as the case may be. However, such modification or annulment will not affect the validity of anything previously done under the rule.

ESTATE DUTY (AMENDMENT)

ACT, 1984

Scope and commencement of the Amendment Act

6. Section 2 of the Amendment Act inserts a new sub-section (2C) in section 5A of the principal Act. In terms of new sub-section (2C) of section 5A of the principal Act, the amendments made by sections 3 to 5 of the Amendment Act shall apply to estate duty in respect of agricultural lands situate in the territory comprised in the States of Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa and Tamil Nadu and all the Union territories on the expiration of two months from the date on which the Amendment Act received the assent of the President. Accordingly, sections 3 to 5 of the Amendment Act would apply in relation to agricultural lands situated in the aforesaid States and Union territories with effect from October 24, 1984.

ESTATE DUTY (AMENDMENT)

ACT, 1984

7. In respect of agricultural land situate in the States other than those mentioned in the preceding paragraph the provisions of the Amendment Act shall apply after expiration of a period of four months from the date on which Legislatures of these States adopt, under article 252(1) of the Constitution, the proposals contained in the Amendment Act.

 2. Provisions explained

37

ESTATE DUTY (AMENDMENT)
ACT, 1984

SECTION/SCHEDULE
PARTICULARS
5A(2C)
Scope and commencement of the Amendment Act 6
5B
Exclusion of agricultural lands from the levy of estate duty 3
34(1)(b), (2) Expln.
Provision for aggregation of agricultural lands omitted 4
85
Rule laying formula 5

Explanatory Notes

ESTATE DUTY (AMENDMENT)

ACT, 1984

Introduction

1. The Estate Duty (Amendment) Bill, 1984 as passed by the Parliament, received the assent of the President on August 23, 1984, and has been enacted as Act No. 53 of 1984. This circular explains the substance of the provisions contained in the Estate Duty (Amendment) Act, 1984.

ESTATE DUTY (AMENDMENT)

ACT, 1984

2. The provisions of the Estate Duty (Amendment) Act, 1984 (hereinafter referred to as the Amendment Act), relate to the following matters :

1. Insertion of a new section 5B in the Estate Duty Act, 1953 (hereinafter referred to as the principal Act) relating to exclusion of agricultural lands from the levy of estate duty.

2. Omission of the provisions of clause (b) of sub-section (1) and clause (ii) of the Explanation below sub-section  (2) of section 34 of the principal Act relating to aggregation, for the purposes of determining the rate of estate duty, of agricultural lands, situate in any State in respect of which estate duty under the principal Act is not leviable.

3. Amendment of section 85 of the principal Act by substitution of sub-section (3) relating to rule-laying formula.

ESTATE DUTY (AMENDMENT)

ACT, 1984

Exclusion of agricultural lands from the levy of estate duty

3. The main object of the Amendment Act is to discontinue levy of estate duty in respect of agricultural lands. Section 3 of the Amendment Act accordingly seeks to insert in the principal Act, a new section 5B which provides that the principal Act shall cease to apply to the levy of estate duty in respect of agricultural land.

ESTATE DUTY (AMENDMENT)

ACT, 1984

Provision for aggregation of agricultural lands omitted

4. Section 4 of the Amendment Act provides for omission of the provisions of clause (b) of sub-section (1), and clause (ii) of the Explanation below sub-section (2) of section 34 of the principal Act. The effect of these amendments is that the provisions relating to aggregation, for the purpose of determining the rate of estate duty, of agricultural lands, situate in any State in respect of which estate duty under the principal Act is not leviable, will stand omitted.

ESTATE DUTY (AMENDMENT)

ACT, 1984

Rule  laying  formula

5. Section 5 of the Amendment Act amends the provisions of section 85 of the principal Act relating to laying of the rules before each House of Parliament. The amended provision lays down that every rule made under the principal Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions. If, before the expiry of the session immediately following the session or the successive sessions, both Houses agree to modify the rule or agree that the rule should not be made, then the rule shall have effect in such modified form or shall be of no effect, as the case may be. However, such modification or annulment will not affect the validity of anything previously done under the rule.

ESTATE DUTY (AMENDMENT)

ACT, 1984

Scope and commencement of the Amendment Act

6. Section 2 of the Amendment Act inserts a new sub-section (2C) in section 5A of the principal Act. In terms of new sub-section (2C) of section 5A of the principal Act, the amendments made by sections 3 to 5 of the Amendment Act shall apply to estate duty in respect of agricultural lands situate in the territory comprised in the States of Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa and Tamil Nadu and all the Union territories on the expiration of two months from the date on which the Amendment Act received the assent of the President. Accordingly, sections 3 to 5 of the Amendment Act would apply in relation to agricultural lands situated in the aforesaid States and Union territories with effect from October 24, 1984.

ESTATE DUTY (AMENDMENT)

ACT, 1984

7. In respect of agricultural land situate in the States other than those mentioned in the preceding paragraph the provisions of the Amendment Act shall apply after expiration of a period of four months from the date on which Legislatures of these States adopt, under article 252(1) of the Constitution, the proposals contained in the Amendment Act.

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Posted Under

Category : Income Tax (25484)
Type : Circulars (7560) Notifications/Circulars (30669)

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