(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.(2)Every estate shall include all income accrued upon the property included therein down to and outstanding at the date of the death of the deceased.(3)Property passing on any death shall not be aggregated more than once nor shall estate duty in respect thereof be levied more than once on the same death.(4)Where an estate includes any property which is exempt from estate duty, the estate duty leviable on the property which is not so exempt shall be an amount bearing to the total amount of duty which would have been payable on the whole estate had no part of it been exempted the same proportion as the unexempted value of the property bears to the value of the whole estate.Explanation. - For the purposes of this sub-section property which is exempt from estate duty means any property which is exempt from estate duty under section 33 and also any agricultural land situate in any State not specified in the First Schedule.
