35. Rates of estate duty on property including agricultural land.
(1)The rates of estate duty shall be as mentioned in the Second Schedule :Provided that no such duty shall be levied upon.-(a)property which consists of an interest in the joint family property of a Hindu family governed by the Mitakshara, Marumakkattayam or Aliayasantana law, to the extent to which the principal value of the estate does not exceed rupees fifty thousand ;(b)property of any other kind, to the extent to which the principal value of the estate does not exceed rupees one lakh.(2)Where an estate passing on the death of a person consist partly of property of the nature described in clause (a) of the proviso to sub-section (1) and party of the nature described in clause (b) of the said proviso, the estate duty payable thereon shall be.-(i)the amount which bears to the total amount of estate duty which would have been payable on the estate had it wholly consisted of property of the nature described in clause (a) the same proportion as the value of such property bears to the value of the estate, plus(ii)the amount which bears to the total amount of estate duty which would have been payable on the estate had it wholly consisted of property of the nature described in clause (b) the same proportion as the value of such property bears to the value of the estate.(3)Notwithstanding anything contained in sub-section (1) and the Second Schedule, where any property passing on the death of any person consists wholly or in part of agricultural land and the principal value of the estate does not exceed rupees two lakhs, there shall be allowed by way of rebate.-(a)in the case of an estate which consists wholly of agricultural land, a sum representing one-fourth of the estate duty payable; and(b)in the case of an estate which consists in part only of agricultural land, a sum representing one-fourth of the estate duty payable on that part of the estate which consists of agricultural land, the duty on such part being a sum which bears to the total amount of estate duty the same proportion as the value of the agricultural land bears to the value of the estate.
