Explanatory notes on the provisions of - Income Tax - 434/1985

Explanatory notes on the provisions of Circular No.434 Dated 10/7/1985 The Estate Duty (Amendment) Bill, 1985, as passed by Parliament received the assent of the President on 2nd September, 1985, and has been enacted as Act No. 52 of 1985. This circular explains the substance of the provisions contained in the Estate Duty (Amendment) Act, 1985 (hereinafter referred to as the Amendment Act). 2. The Amendment Act has inserted in the Estate Duty Act, 1953, a new section 5C which provides that the Estate Duty Act, 1953, shall cease to apply to the levy of estate duty in respect of any property (other than agricultural land) which passes on the death of any person on or after the 16th day of March, 1985. 3. As regards the levy of estate duty in respect of agricultural lands, it may be mentioned that after coming into force of the Estate Duty (Amendment) Act, 1984, the levy of estate duty has ceased to apply in respect of agricultural lands situate in the territories comprised in all the Union Territories and the States mentioned in clause (a) of sub-section (2C) of section 5A of the Estate Duty Act with effect from 24th October, 1984. Further, intimations have been received regarding the Legislatures of Uttar Pradesh and Rajasthan having passed resolutions under article 252 of the Constitution, adopting the proposals with respect to the amendments made by the Estate Duty (Amendment) Act, 1984. The U. P. State Legislative Council passed the resolution on 19th April, 1984, and the U. P. State Legislative Assembly passed the resolution on 11th September, 1984. The Rajasthan State Legislature passed the resolution on 17th October, 1984. Thus, in terms of the provisions of section 5A(2C)(b) of the Estate Duty Act, the levy of estate duty has ceased to apply to agricultural lands situate in the territories comprised in the State of U. P. with effect from 12th January, 1985, and those situate in the territories comprised in the State of Rajasthan with effect from 18th February, 1985.