(1)For determining the rate of estate duty to be paid on any property passing on the death of the deceased, all property so passing, excluding.-property exempted from duty under clauses (c), (d), (e), (i) and (j) of sub-section (1) of section 33.but including.-(i)property on which no estate duty is leviable under section 35,(ii)property exempted from duty under clauses (a), (b), (f), (g), (h) and (k) of section 33, and(iii)agricultural land situate in any State not specified in the First Schedule,shall be aggregated so as to form one estate and the duty shall be levied at the rate of rates applicable in respect of the principal value thereof :Provided that any property so passing, in which the deceased never had an interest, not being a debt or right or benefit that is treated as property by virtue of the Explanations to clause (15) of section 2, shall not be aggregated with any other property, but shall be an estate by itself and the estate duty shall be leviable at the rate or rates applicable in respect of the principal value thereof.
