Report No. 52
3. General principle as to the date of valuation.-
The general principle followed in the Act in this respect may first be examined. The principle seems to be that the law of estate duty treats as irrelevant events in relation to the property subsequent to the passing of the property on death. Thus, even if the value of the property has gone up very high soon after the death, the duty is chargeable only on the basis of the market value of the property on the date of death. Conversely, if, after death of the owner, the property is destroyed by fire or earthquake, the duty has still to be paid on the basis of the property as in existence at the time of death. Any sudden depreciation in value immediately after the death has also to be disregarded. All this, no doubt, is subject to the power of the Central Government to grant reductions or remissions in respect of any class of persons or properties for sufficient reasons.1
1. Section 33(2), Estate Duty Act, 1933.