677/CBDT. - Income Tax - 677/CBDT

INSTRUCTION NO. 677/CBDT Dated : April 6, 1974 While discussing para 48(i) of the C A.G's Report 1971 -72, the PAC suggested that the Department may maintain liasion with the State authorities as regards issue of succession certificate and bring surrenders of property at the time of issue of such certificates to Gift-tax. 2. Though it is not normally necessary to apply for succession certificate to establish a right to property left by deceased, in the case of intestacy of a Hindu, Mohammaden, Buddhist, Sikh, Jain or Indian Christian where there may be circumstances, such as suit has to be filed to recover debt, in which a succession certificate is necessary. There may also be cases where such succession certificate is applied for even though it is not required. Succession certificate are granted in terms of Part X of the Succession Act, 1925 by the District Court within whose jurisdiction any part of the property of the deceased may be found. The form of certificate is prescribed in Schedule VII, of the Succession Act. 3. The Board desire that suitable arrangements may be made in your charge for periodically collecting information from the court regarding the issue of Succession Certificate. The information so gathered may be utilized to see whether there were any surrenders of property at the time of issue of succession certificate and if so steps can be taken to subject these surrenders to Gift-tax. The Board may please be informed of the steps taken to implement the suggestion.