Duties in respect of succession to property other than agricultural land,¹estate duty in respect of property other than agricultural land, such stamp duties as are mentioned in the Federal Legislative List, terminal taxes on goods or passengers carried by railway, or air,and taxes on railway fares and freights, shall be levied and collected by the[Federation]², but the net proceeds in any financial year of any such duty or tax, except in so far as those proceeds represent proceeds attributable to Chief Commissioners' Provinces, shall not form part of the revenues of the [Federation]², but shall be assigned to the Provinces and to the[Federated]³States, if any, within which that duty or tax is leviable in thatyear, and shall be distributed among the Provinces and those States in11. Substituted, by ibid., by the word 'Governor-General'. accordance with such principles of distribution as may be formulated by Act of the [Federal]1b Legislature:

Provided that the [Federal]²Legislature may at any time increase any said duties or taxes by a surcharge for [Federal]²purposes and the whole proceeds of any such surcharge shall form part of the revenues of the [Federation]².

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1. Inserted by India (Estate Duty) Act, 1945 (8 & 9 Geo. 6, Ch. 7). S. 1.

2. Substituted, by the India (Provisional Constitution) Order, 1947.., by the word 'Dominion'.

3. Substituted, by the India (Provisional Constitution) Order, 1947.., by the word 'Acceding'.