This Act may be called the Estate Duty 2[* * *] (Distribution) Act, 1957.

In this Act,

(a) estate duty means the estate duty levied under the Estate Duty Act, 1953 (34 of 1953), in respect of property other than agricultural land;

(b) State does not include a Union Territory;

(c) 3[* * *]

(1) During each financial year commencing on and after the 1st day of April, 1957, the net proceeds of the estate duty levied and collected during that financial year shall, after deducting therefrom a sum equal to one per cent. of the said proceeds as being attributable to Union Territories, be distributed among the States in accordance with the provisions of sub-section (2).

(2) Out of the total amount falling to be distributed in any financial year under sub-section (1),

(a) the amount attributable to immovable property shall be distributed among the States in proportion to the gross value of the immovable property situated in the respective States as determined in respect of that financial year;

(b) the balance shall be distributed among the States as follows:

(3) For the purposes of this section,

(a) amount attributable to immovable property means an amount which bears to the total amount distributable in any financial year under sub-section (1) the same proportion which the gross value of all immovable property situated in the States bears to the gross value of all property, movable and immovable, so situated, as determined in respect of that financial year;

(b) gross value , in relation to movable or immovable property, means the total value of all movable property or, as the case may be, of all immovable property, passing on the death of any person as determined by the Controller under the Estate Duty Act, 1953 (34 of 1953);

(c) immovable property does not include agricultural land.

(1) In respect of each of the financial years commencing on the 1st day of April, 1953, 1954 and 1955, the net proceeds of the estate duty levied and collected during that financial year shall, after deducting therefrom a sum equal to two and three quarter per cent. of the said proceeds as being attributable to Part C States, be distributed among the Part A States and Part B States in the same manner as the percentage of the net proceeds of taxes on income falling to be distributed under clause (2) of Article 270 of the Constitution has been distributed among those States in respect of that financial year.

(2) In respect of the financial year commencing on the 1st day of April, 1956,

(a) seven-twelfths of the net proceeds of the estate duty levied and collected during the said financial year shall, after deducting therefrom a sum equal to two and three quarter per cent. of the said proceeds as being attributable to Part C States, be distributed among the Part A States and Part B States in respect of the first seven months of the said financial year in the same manner as the percentage of the net proceeds of taxes on income falling to be distributed under clause (2) of Article 270 of the Constitution has been distributed among those States in respect of the said seven months, and

(b) five-twelfths of the net proceeds of the estate duty levied and collected during the said financial year shall, after deducting therefrom a sum equal to one per cent. of the said proceeds as being attributable to Union Territories, be distributed in respect of the remaining five months of the said financial year, in the same manner as the percentage of the net proceeds of taxes on income falling to be distributed under clause (2) of Article 270 of the Constitution has been distributed among the States in respect of the said five months.

(3) The provisions of this section shall be deemed to have had effect from the date on which the Estate Duty Act, 1953 (34 of 1953), came into force.

5[* * *]

(1) The Central Government may, by notification in the Official Gazette, make rules providing for the manner in which the gross value of property is to be calculated, for the time at which, and the manner in which, any payments under this Act are to be made, for the making of adjustments between one financial year and another and for any other incidental or ancillary matters.

(2) All rules made under this section shall, as soon as may be after they are made, be laid for not less than thirty days before each House of Parliament and shall be subject to such modifications as Parliament may make during the session in which they are so laid or the session immediately following.

1. The words and the tax on railway passenger fares omitted by Act 8 of 1961, Section 3 (w.e.f. 1-4-1961).

2. The words and Tax on Railway Passenger Fares omitted by Act 8 of 1961, Section 3 (w.e.f. 1-4-1961).

3. Clause (c) omitted by Act 8 of 1961, Section 3 (w.e.f. 1-4-1961).

4. Substituted by Act 11 of 1960, Section 45 and Schedule IX (w.e.f. 1-5-1960).

5. Omitted by Act 8 of 1961, Section 3 (w.e.f. 1-4-1961).