THE GAZETTE OF INDIA: EXTRAORDINARY

[PART 11—SEC. 3(ii)]

MDV1STRYOFFINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

No. 45/2001

New Delhi, the 28th February, 2001

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-

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.

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.

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