In exercise of the powers conferred by Section 295 of the Income-tax Act, 1961 (43 of 1961),the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules,1962,

The Gazette of India

EXTRAORDINRY

PART II—Section 3—Subsection (ii)

PUBLISHED BY AUTHORITY

No. 131] NEW DELHI, WEDNESDAY, FEBRUARY 28,2001/PHALGUNA 9,1922

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

No. 45/2001

New Delhi, the 28th February, 2001 ber plants in replacement of plants that have died or become permanently useless in an area already planted, if such area has not previously been aban- doned, and for the purpose of determining such cost, no deduction shall be made in respect of the amount of any subsidy which, under the provisions of clause (31) of section 10, is not includible in the total income.

INCOME-TAX

S.0.179 (E).— In exercise of the powers conferred by Section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1.(1) These rules may be called the Income-tax (2nd Amendment) Rules, 2001.

(2) They shall come into force on the 1st day of April, 2002 and shall, accordingly, apply to assessment year 2002-2003 and subsequent years.

2. In the Income-tax Rules, 1962, after rule 7, the following rules shall be inserted, namely:—

"7 A, Income from the manufacture of rubber.-—

(1) Income derived from the sale of centrifuged latex or cenex manufactured from rubber plants grown by the seller in India shall be computed as if it were income derived from business, and thirty-five per cent of such income shall be deemed to be income liable to tax.

(2) In computing such income, an allowance shall be made in respect of the cost of planting rub- 7B, Income from the manufacture of coffee.— (1) Income derived from the sale of coffee grown and manufactured by the seller in India, with or with- out mixing of chicory or other flavouring ingredient, shall be computed as if it were income derived from business, and forty per cent of such income shall be deemed to be income liable to tax.

(2) In computing such income, an allowance shall be made in respect of the cost of planting coffee plants in replacement of plants that have died or become permanently useless in an area already planted, if such area has not previously been abandoned, and for the purpose of determining such cost, no deduction shall be made in respect of the amount of any subsidy which, under the provisions of clause (31) of section 10, is not includible in the total income.".

[F.No. 153/87/2000-TPL1

RAHUL NAV1N, Under Secy.

Note: The principal rules were published vide notifica- tion number S.0,969(E), dated the 26th March, 1962 and were last amended vide S.O. 85(E), dated 31-1-2001.