Estate Duty-Scope of Sec.33(1)(f) and Rule 31-A. - Income Tax - 1307/CBDT

INSTRUCTION NO. 1307/CBDT Dated: February 12, 1980 Following two points were referred to the Board for clarification :- (i) Whether a policy taken out for the express purpose of paying Estate Duty can be accepted on behalf of the President by the Controller of Estate Duty in a situation where the assured has not deposited the policy with the Controller within the three months period stipulated in Rule-31-A; (ii) Whether the money payable in respect of a policy will be exempt under section 33(1)(f) of the Estate Duty Act, 1953 if the policy of insurance assigned for the payment of Estate Duty is forwarded to the Controller of Estate Duty beyond the stipulated period of three months. 2. In respect of (ii) above, Board are advised that exemption prescribed under section 33(1)(f) of the Estate Duty Act will be available irrespective of whether the policy of insurance assigned for the payment of estate duty was forwarded to the Controller of Estate Duty within the stipulated period of three months or not. That is because clause (f) of section 33(1) neither refers to Rule 31-A, nor does it say that the exemption shall be only in respect of the policy of insurance assigned to the President in the prescribed manner. In view of the advice on (ii) the reply to (i) above would also be in the affirmative.