PROCEDURE FOR THE SURRENDER OF PROPERTY (ESTATE DUTY) RULES, 1973

PROCEDURE FOR THE SURRENDER OF PROPERTY (ESTATE DUTY) RULES, 1973

[Gazette of Pakistan, Extraordinary, Part, II, 18th September 1973]

S. R. O. 1329 (I)/73.‑‑In exercise of the powers conferred by section 75 of the Estate Duty Act, 1950, (X of 1950), read with section 66‑B thereof, the Central Board of Revenue is pleased to make the following rules, the sane having been previously published, namely ;‑

1. (1) These Rules may be called the Procedure for the Surrender of Property (Estate Duty) Rules, 1973.

(2) They shall come into force at once.

2. A person accountable for duty under the Estate Duty Act, 1950 (X of 1950) who wishes to surrender under section 66‑B of the said Act, property in lien of estate duty payable by him, shall intimate the Controller of Estate Duty full particulars of such property. in the form attached to these rules, within thirty days of the date on which the notice of demand under section 58‑D of the Act has been served Provided that where notice was served before the commencement of these rules, the accountable person may intimate the Controller within thirty days of such commencement.

3. Rule 2 shall not apply to any property‑

(a) which is not situated in Pakistan ;

(b) on the male of which there is any restriction in any law or otherwise;

(c) which is subject of a mortgage, litigation or is under any lien.;

4. On receipt of intimation under rule 2, the Controller shall intimate the particulars of the property offered for surrender to all other accountable persons with the request that he may be informed within thirty days of the receipt of the communication whether he agrees to the surrender of the said property.

5. Where the Controller does not receive a reply within the period of thirty days referred to in rule 4 from any of the other accountable persons or any of such accountable persons does not agree to the surrender, the Controller shall not accept the surrender and inform the accountable person accordingly.

6. Where the property has been accepted by the Controller in lieu of the payment of estate duty, such property shall be deemed to be a property attached by the Controller in fulfilment of the estate duty and no accountable person shall have the right to transfer, or to create charge on the said property in any way, and no person may obtain any benefit under any such transfer or charge.

7. The Controller shall, in the first instance, offer the said property to the accountable persons at a value which is not less than the value fixed by the Controller while determining the estate duty. Where more than one accountable persons are desirous of acquiring the property, the Controller shall sell the property to the accountable person whose bid is the highest.

8. A property which is not disposed of in the manner laid down In rule 7 shall be sold or disposed of by the Controller in accordance with the procedure, so far as It may be applicable, for the disposal of property prescribed 1n the rules under section 46‑A of the Income‑tax Act, 1922 (XI of 1922).

9. The sale price shall be payable by !he purchaser immediately, on the completion of the transaction.

10. Where the price realised on sale of the property is in excess of the demand of the estate duty, the excess amount would be credited to the head "XIII‑Other Taxes and Duties‑Central‑Estate Duty‑Miscellaneous Collections" and where the price realised is less than the demand of the estate duty, the amount by which the sale price falls short of the estate duty shall be written off.

FORM FOR SURRENDER OF PROPERTY UNDER

SECTION 66‑B OF THE ESTATE DUTY ACT

                         Full particulars                                                 Names and complete

Name of the            of the               Location                              addresses of all

Deceased            property                           Value                     other accountable

                                                                                                         persons

I hereby certify that ;

(i) I am the accountable person ;

(ii) the property is not the property as described under paragraph 2 of the Procedure for Surrender

(iii) the Information given above is true, complete and correct in all respects and that nothing has been concealed or mis‑stated;

Date ....................................................................Signature

  Full name

  (In block letters)

  Complete address …………………………………..

Note.‑The form is to be personally signed by the accountable person.