Provisions u/s 31 Estate Duty Act. - Income Tax - 989/CBDT

INSTRUCTION NO. 989/CBDT Dated : July 27, 1976 Section(s) Referred: 31 Statute: Estate Duty Act The proviso to section 31 of the Estate Duty Act lays down that where the value on which the duty is payable of the property on the second death exceeds the value on which the duty was payable of the property on the first death, the latter value shall be substituted for the former for the purpose of calculating the amount of duty on which the reduction u/s 31 is to be calculated. 2. A doubt has been raised whether in terms of the said proviso, substitution of the lesser of the two values is to be done while working out the average rate of duty payable on the second death. The Board are advised that such an interpretation is not permissible u/s 31. The substitution of the lesser of the two values has to be done not for the purpose of working out the average rate of duty but for working out the duty relatable to the property which qualifies for relief.