Para 3.23.9 — MSO (Audit)
Original Rule Text
3.23.9 Under Article 279(1) of the Constitution, the net proceeds of the Estate Duty on property other than agricultural land are to be ascertained and certified by the Comptroller and Auditor General. For this purpose, it is necessary to ensure, based on a test-check, the accuracy of the classification of the receipts and refunds of Estate Duty
between the two sub-major heads ‘01. Estate Duty on Agricultural Land’ and ‘02. Estate Duty on Property other than Agricultural Land’ under the major head ‘0031 Estate Duty’.
What This Means
The CAG must certify the net proceeds of Estate Duty on property other than agricultural land under Article 279(1). To do this accurately, auditors must test-check that receipts and refunds of Estate Duty are correctly classified between the two sub-major heads — one for agricultural land and one for other property — under the major head '0031 Estate Duty'.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Net proceeds of Estate Duty on non-agricultural property must be certified by the CAG
- 2Estate Duty receipts have two sub-major heads: agricultural land and other property
- 3Correct classification between these two heads is essential for accurate certification
- 4Test-check of classification accuracy is required
- 5Both receipts and refunds must be verified for proper classification
Practical Example
An auditor test-checks 50 Estate Duty cases and finds that in 3 cases, duty collected on urban residential property (which should be under '02 — Property other than Agricultural Land') was incorrectly booked under '01 — Agricultural Land.' This misclassification would reduce the certified net proceeds for non-agricultural estate duty, affecting the amount available for distribution to states.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why does the classification between agricultural and non-agricultural property matter?▼
Is Estate Duty still levied in India?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.