The Revenue Affidavit is a return, and becomes the property of the Stamp Commissioner once it is filed. It cannot be withdrawn after an assessment is raised because the properties and shares left behind by the deceased will not be transferred unless the taxes are paid.
Although the jointly held property is not considered a part of the deceased’s estate by the courts, the deceased had a disposable interest in it. It is this half interest which is taxable under Section 5(1). However, if the property qualifies as the principal place of residence, it is exempted from tax.
The Stamp Duty paid on the Probate was assessed by the Courts and is calculated on all the assets owned by the deceased (inclusive of cash, Insurance, Bonds etc.). The Probate is up stamped with the transfer tax (on death) paid because it is the prescribed document under the Transfer Tax Act. It must be up stamped with the total tax, which was paid in the Testator’s estate.
Because there exist two separate transactions. Firstly, the Transfer Tax is charged on the deceased’s taxable assets. (TRANSFER TAX IS PAID). Secondly, the assets of the deceased are passed to the Legal Representative and then to the beneficiary (NO TRANSFER TAX PAYABLE).
There can be only one case file for a deceased’ estate. The taxable assets of the estate must be aggregated and tax computed in accordance with Section 12 (1) of Part Two of the First Schedule of the Transfer Tax Act.