ESTATE DUTY ACT, 1953
SECTION 4 – ESTATE DUTY AUTHORITIES
1511. Extent of powers of Commissioners of Income-tax (Appeals) appointed as Appellate Controllers of Estate Duty – Notification issued under sub-section (2A)
In exercise of the powers conferred by sub-section (2A) of section 4 of the Estate Duty Act, 1953 (34 of 1953), and in partial modification of all previous notifications and orders on the subject, the Central Board of Direct Taxes hereby directs that the Commissioners of Income-tax (Appeals) appointed as Appellate Controllers of Estate Duty shall exercise their powers in respect of all estates of deceased persons including cases where the principal value as assessed to estate duty by the Assistant Controller of Estate Duty is less than Rs. 2 lakhs. In cases where the assessed principal value of the estate is less than Rs. 2 lakhs, the above Appellate Controllers shall perform their functions only in respect of assessment orders passed on or after 1st January, 1980.
Notification : No. SO 93, dated 27-1-1979.
1512. Appointment of estate duty valuers for different categories of assets and scale of charges for their remuneration – Notification issued under sub-section (3)
1. In supersession of all the previous notices issued by this Ministry regarding appointment of valuers under section 4(3) of the Estate Duty Act, 1953, it is notified for general information that the Central Government proposes to appoint persons as valuers under section 4(3) of the Estate Duty Act, 1953, for different categories of assets and to fix a scale of charges for their remuneration.
2. Persons desiring to be appointed as approved valuers must satisfy the conditions mentioned in Annex I to this notice and should apply for appointment in the form prescribed in Annex II.
3. No person shall qualify for appointment as an approved valuer, other than as a Valuer of Works of Art, if he is employed under Government or any other employer.
4. No person shall qualify for appointment as an approved valuer, if—
(a) he has been dismissed or removed from Government service ; or
(b) he has been convicted of an offence connected with any proceedings under the Income-tax Act, 1961 (43 of 1961) or the Wealth-tax Act, 1957 (27 of 1957) or the Gift-tax Act, 1958 (18 of 1958) or a penalty has been imposed on him under clause (iii) of sub-section (1) of section 271, or clause (i) of section 273 of the Income-tax Act, 1961 or under clause (iii) of sub-section (1) of section 18 of the Wealth-tax Act, 1957 or under clause (iii) of sub-section (1) of section 17 of the Gift-tax Act, 1958 ; or
(c) he is an undischarged insolvent ; or
(d) he has been convicted of any offence and sentenced to a term of imprisonment or has been found guilty of misconduct in his professional capacity which, in the opinion of the Central Government, renders him unfit to be registered as a valuer.
The requirement laid down in Annex I that the applicant should have, for a period of not less than five years,—
(i) rendered service in any capacity, or
(ii) taught any subject, or
(iii) practised any profession, or
(iv) gained experience in any other capacity or field, as specified therein,
shall be deemed to have been fulfilled if the period for which the applicant has rendered such service, taught such subject, practised such profession or otherwise gained experience in such other capacity or field, taken either singly or collectively, is not less than five years and the Central Government is of opinion that the applicant has acquired sufficient experience in the valuation of the class of assets of which he seeks to be approved as a valuer.
5. Scale of fees to be charged by the approved valuer : (1) Subject to the provisions of items (2) and (3 ) below the fees to be charged by an approved valuer for valuation of any asset shall not exceed the amount calculated at the following rates, namely :—
– on the first Rs. 50,000 of the asset as valued : 1 /2 per cent of the value ;
– on the next Rs. 1 lakh of the asset as valued : 1 /4 per cent of the value ; and
– on the balance of the asset as valued : 1 /8 per cent of the value.
(2) Where two or more assets are required to be valued by an approved valuer at the instance of an assessee, all such assets shall be deemed to constitute a single asset for the purposes of calculating the fees payable to such approved valuer.
(3) Where the amount of fees calculated in accordance with items (1) and (2) is less than Rs. 50, the approved valuer may charge Rs. 50 as his fees.
Notification : F. No. 300/355/74-ED, dated 1-8-1975.
ANNEX I – CONDITIONS TO BE SATISFIED
1. A valuer of immovable property (other than agricultural lands, plantations, forests, mines and quarries) shall have the following qualifications, namely :—
(i) he must either be a graduate in civil engineering, architecture or town planning of a recognised university or possess a qualification recognised as sufficient qualification for the purposes of recruitment to superior posts and services under the Central Government ; or
(ii) (A) he must be a person formerly employed,—
(a) in a post under Government as a gazetted officer ; or
(b) in a post under any other employer carrying a remuneration of not less than Rs. 1,000 per month,
and in either case must have retired or resigned from such employment after having rendered service for not less than five years as a valuer, architect, or town planner, or in the field of construction of buildings, designing of structures or development of land ; or
(c) as a professor, reader or lecturer in a university, college or any other institution preparing students for a degree in civil engineering, architecture or town planning, or for an equivalent qualification referred to in clause (i), and must have retired or resigned from such employment after having taught for not less than five years any of the subjects of valuation, quantity surveying, building construction, architecture, or town planning; or
(B) he must have been in practice as a consulting engineer, surveyor, or architect for a period of not less than five years and must have, in the opinion of the Central Government, acquired sufficient experience in any of the following fields :
(a) valuation of buildings and urban lands;
(b) quantity surveying in building construction;
(c) architectural or structural designing of buildings or town planning; or
(d) construction of buildings or development of land.
2. A valuer of agricultural lands [other than plantations] referred to in sub-rule (3) shall have the following qualifications, namely :—
(i) he must be graduate in agricultural science of a recognised university and must have worked as a farm valuer for a period of not less than five years; or
(ii) he must be a person formerly employed in a post under Government as a Collector, Deputy Collector, Settlement Officer, Land Valuation Officer, Superintendent of Land Records, Agricultural Officer, Registrar under the Registration Act, 1908 (16 of 1908), or any other officer of equivalent rank performing similar functions and must have retired or resigned from such employment after having rendered service in any one or more of the posts aforesaid for an aggregate period of not less than five years.
3. A valuer of coffee plantation, tea plantation, rubber plantation or, as the case may be, cardamom plantation shall have the following qualifications, namely :—
(i) he must have, for a period of not less than five years, owned or acted as manager of a coffee, tea, rubber, or as the case may be, cardamom plantation having an area under plantation of not less than four hectares in the case of a cardamom plantation or forty hectares in the case of any other plantation; or
(ii) he must be a person formerly employed in a post under Government as a Collector, Deputy Collector, Settlement Officer, Land Valuation Officer, Superintendent of Land Records, Agricultural Officer, Registrar under the Registration Act, 1908 (16 of 1908) or any other officer of equivalent rank performing similar functions and must have retired or resigned from such employment after having rendered service in any one or more of the posts aforesaid for an aggregate period of not less than five years, out of which not less than three years must have been in areas wherein coffee, tea, rubber or as the case may be, cardamom, is extensively grown.
4. A valuer of forests must be a person formerly employed in a post under Government and must have retired or resigned from such employment after having rendered service for not less than five years in a gazetted post requiring specialised knowledge in forestry.
5. A valuer of mines and quarries shall have the following qualifications, namely :—
(i) he must be a graduate in mining of a recognised university, or must possess a qualification recognised as sufficient qualification for the purposes of recruitment to superior posts and services under the Government of India; or
(ii) he must be a person formerly employed—
(a) in a post under Government as a gazetted officer, or
(b) in a post under any other employer carrying a remuneration of not less than Rs. 1,000 per month,
and, in either case, must have retired or resigned from such employment after having rendered service as a mining engineer for not less than five years.
6. A valuer of stocks, shares, debentures, securities, shares in partnership firms and of business assets including goodwill, but excluding those referred to in sub-sections (1) to (5) and (7) to (10) shall have the following qualifications, namely :—
(i) he must be a member of the Institute of Chartered Accountants of India or the Institute of Cost & Works Accountants of India or the Institute of Company Secretaries of India; and
(ii) (A) he must have been in practice as a Chartered Accountant or a Cost and Works Accountant for a period of not less than five years, or
(B) he must be a person formerly employed—
(a) in a post under Government as a gazetted officer, or
(b) in a post under any other employer carrying a remuneration of not less than Rs. 1,000 per month, or
(c) as a Company Secretary or an Assistant Company Secretary in a post carrying a remuneration of not less than Rs. 1,000 per month and must have retired or resigned from such employment after having rendered service for a period of not less than five years,
and, in either case, must have retired or resigned from such employment after having rendered service for a period of not less than five years in the field of audit and accounts or taxation works.
7. A valuer of machinery and plant shall have the following qualifications, namely :—
(i) he must either be a graduate in mechanical engineering or electrical engineering of a recognised university, or possess a qualification which is recognised as sufficient qualification for the purposes of recruitment to superior posts and services under the Central Government; or
(ii) (A) he must be a person formerly employed—
(a) in a post under Government as a gazetted officer, or
(b) in a post under any other employer carrying a remuneration of not less than Rs. 1,000 per month,
and, in either case, must have retired or resigned from such employment after having rendered service as a mechanical or electrical engineer for a period of not less than five years, or
(c) as a professor, reader or lecturer in a university, college or institution preparing students for a degree in mechanical or electrical engineering or for an equivalent qualification referred to in clause (i), and must have retired or resigned from such employment after having taught for a period of not less than five years, or
(B) he must have been in practice as a consulting engineer for a period of not less than five years and must have, in the opinion of the Central Government, acquired sufficient experience in the valuation of machinery and plant.
8. A valuer of jewellery must have been, for a period of not less than five years, a sole proprietor or partner in a partnership firm carrying on jewellery business which has a turnover of not less than Rs. 1 lakh or profits of not less than Rs. 15,000 in two out of the three accounting years immediately preceding the year in which the application for appointment as an approved valuer is made by him.
9. A valuer of works of arts shall have the following qualifications, namely :
(i) he must have specialised by virtue of his academic and professional pursuits in the particular line of art, for the works of which he seeks to be registered as a valuer; and
(ii) he must have served in any one or more of the following capacities, namely,—
(a) Director General or Superintending Archaeologist of the Archaeological Survey of India;
(b) Director of National Museum, New Delhi, Salar Jung Museum, Hyderabad, Prince of Wales Museum, Bombay, Indian Museum, Calcutta, Asutosh Museum, Calcutta, Madras Museum, Madras, or Bharat Kala Bhavan, Varanasi;
(c) Principal of a Government School of Art;
(d) Member of the Art Purchase Committee of any of the Museums referred to in sub-clause (b), or of the Lalit Kala Akademi.
10. A valuer of life interest reversions and interest in expectancy shall have the following qualifications, namely :
(i) he must be a graduate of recognised university; and
(ii) (A) he must have been in practice as an actuary under the Insurance Act, 1938 (4 of 1938) for a period of not less than five years; or
(B) he must have rendered continuous service for a period of not less than five years as an actuary under Government or in the Life Insurance Corporation of India established under the Life Insurance Act, 1956 (31 of 1956);
(C) he must have practised as an actuary or served as such under Government or in the Life Insurance Corporation of India referred to in sub-clause (b) for an aggregate period of not less than five years.
ANNEX II – FORM OF APPLICATION
Application for appointment as a valuer under section 4(3)
of the Estate Duty Act, 1953
To
The Secretary,
Central Board of Direct Taxes,
New Delhi.
Sir,
I hereby apply for appointment as a valuer of ……………………………………………………………….
(class of assets) under section 4(3) of the Estate Duty Act, 1953. The following particulars are furnished herewith :
1. Name in full (Block letter)
2. Father’s/Husband’s name
3. Permanent address
4. Present address :
(i) Office
(ii) Residence
5. Income-tax Permanent Account Number
6. Date of birth
7. Educational qualifications, including professional or
technical qualifications (Enclose attested copy of degree or
diploma certificate)
8. If member of any professional or technical institution, give particulars
9. (a ) Present occupation and since when
(b) If a partner of a firm, name, address and business/profession of the firm (Date of joining the partnership to be indicated)
10. If already engaged in the profession or calling of a valuer, whether —
( a) on your own behalf (since when)
( b) in partnership with others (give names and addresses of other partners) (Date of joining the partnership to be indicated)
11. Date of commencement of practice as a valuer
12.(a) Give full details of your experience which qualifies you for appointment as valuer (Documentary evidence to be given)
(b) A list of assets valued or works executed during the last three years should be enclosed
13. Whether you have been appointed as valuer under section 34AB of the Wealth-tax Act, 1957? If so, give registration No. with File No. and date
14. Name, occupation and address of three persons (not being relatives or business partners) with whom you have had regular contact over the last five years (one of whom should preferably be a valuer) and of whom you authorise the Board to enquire regarding your reputation and character
15.(a) State if any liability towards income-tax, wealth-tax or gift-tax outstanding against you
( b) If so, whether satisfactory arrangements for payment thereof have been made
(c) Attach Income-tax Clearance Certificate from the ITO concerned
16. Whether you have been convicted of any offence and sentenced to a term of imprisonment? If so, give details of offence and sentence
17. Whether you have been found guilty of misconduct in your professional capacity? If so, give details
I hereby declare that I am not disqualified from applying for appointment by reason of any of the provisions contained in clauses (a) to (d) of paragraph (4) of Notification No. 300/355/74-ED, dated 1-8-1975.
I further declare that I shall—
(a) make an impartial and true valuation of any asset which I may be required to value;
(b) furnish the report of such valuation in the prescribed form;
(c) charge fees at a rate not exceeding the rate or rates prescribed by the Board in this behalf; and
(d) not undertake any valuation of any asset in which I have a direct or indirect interest.
………………………………………….
Signature of Applicant
Verification
I, …………………………………………………………………………., do declare—
[name in block letters]
(i) that what is stated in the above application is true and correct to the best of my knowledge and belief, and
(ii) that the copies sent herewith are the true copies.
…………………………………………….
Place ………………………. Signature of Applicant
Date ……………………….
LIST OF ENCLOSURES
1.
2.
3.
4.
5.
etc.
