91
REGISTERED No. D28
of Andía The Gazette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
NEW DELHI , THURSDAY, MARCH 31, 1949
Car Separate paging is given to thie Part in order that it may be filed as a separate compilation.
PART IV
N
Acts of the Dominion Legislature assented to by the Governor General
GOVERNMENT OF INDIA
MINISTRY OF LAW
New Delhi , the 31st March , 1949 .
The following Act of the Dominion Legislature received the assent of the Governor General on the 31st March , 1949 and is hereby published for general Information: -
Аст о . ХIV OF 1949 .
An Act to give effect to the financial proposals of the Central Government for the year beginning on the first day of April , 1940 WHEREAS it is expedient to discontinue the duty on salt,
VI of 1898.
XXI of 1947.
to fix maximum rates of postage under the Indian Post Office Act , 1898 , to alter certain duties on customs and excise, to levy certain additional duties of customs and excise , to fix rates of, and make certain provisions relating to , income - tax and super - tax , and to continue , for a period of one year , the tax imposed by the Business Profits Tax Act , 1947;
It is hereby enacted as follows :-
1. ( 1) This Act may be called the Indian Finance Act , 1949. Short title a extent.
(2 ) It extends to all the Provinces of India .
2. For the year beginning on the 1st day of April , 1949 , no Discontinuance duty shall be levied on salt manufactured in, or imported by sea, of salt duty. or by land into , the Provinces of India .
portage
VI of 1898.
3. For the year beginning on the Ist day of April , 1949 , the Inland Schedule contained in the First Schedule to this Act , shall be inser- rates . ted in the Indian Post Office Act , 1898 , as the First Schedule to that Act .
XXXII_of 4. In the First Schedule to the Indian Tariff Act , 1934 :-
1934 .
tain duties of o Alteration of c toms.
(a) in Itera No. 19(5 ) , for the entry in the fourth column, the entry " Seven annas and six pies per lb. " shall be substituted , and for the entry in the sixth column , the entry "Seven annas ver lh ." shall be substituted ;
(b) in Item No. 24 , for the entry in the fourth column, the entry "Rs . 16-4-0 per lb. " shall be substituted ;
(c) in Item No. 24 ( 1 ) , for the entry in the fourth column , the entry " 37 per cent , ad valorem plus Rs . 15-10-0 per lb. " shall he substituted
( 97) THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 31 , 1949
(d) in Item No. 24 (2 ) , for the entry in the fourth column, the entry " 37 per cent . ad valorem plus Rs . 39-1-0 per thousand or Rs . 15-10-0 per lb. whichever is higher " shall be substituted;
(e) for Item No. 28 ( 14 ) , the following Item shall be substituted , namely :-
"28 ( 14 ) Toilet Requisites Revenue 37 per cent . ad valorem . not otherwise
specified .
(f) in each of the Items Nos . 34 ( 3 ) , 51 , 61 ( 8) , 61 (0) , 78 , 82(1 ) and 85 ( 1 ) , for the entry in the fourth column , the entry " 75 per cent. ad valorem " shall be substituted ;
(g) in each of the Items Nos . 44, 45, 60, 71 ( 2) and 71 (3), for the entry in the fourth column , the entry " 374 per cent . ad valorem " shall be substituted ;
(h) after Item No. 60 ( 5 ) , the following Item shall be inserted, namely :
*60(6) Sheet and plate Revonuo
glass .
45per cent . ad valorem .
( i) in Item No. 73 ( 2 ) , the words "flash lights " shall be omitted
(1) after Item No. 73 ( 13) , the following Item shall be inserted, namely :-
"73 ( 14 ) Flash lights Revenue 37 per cent . ad valorem .
(k) in Item No. 77 , the words " including photographic " shall be omitted ; and
(1) after Item No. 77 (4 ) , the following Item shall be inserted, namely :-
Preferential 45 per cent.
77
38 per
cent . ad
Revenue . ad valorem .
Instruments ,
(5) Photographic apparatus and app.
liances .
dditional duties customs .
valorem .
XXXII of
1934 .
5. When any goods chargeable with a duty of customs under the First Schedule to the Indian Tariff Act , 1934 , or under that Schedule read with any notification of the Central Government for the time being in force , are assessed to duty , there shall , up to the 31st day of March , 1950, be levied and collected as an addition to, and in the same manner as , the total amount so chargeable-
(a) a sum equal to such amount , in the case of goods comprised in Items Nos . 22 ( 2) and 22 (4 ) ;
(b) a sum equal to one -half of such amount , in the case of goods comprised in Items Nos , 48, 48 ( 1 ) , 48 (2 ) , 48 (4 ) , 48 ( 5 ) , 48 (6 ) , 48 ( 7 ) , 48 ( 8) , 48( 10) and 51 ( 2 ) ;
(c) a sum equal to two - fifths of such amount , in the case of goods comprised in Items Nos . 47( 2 ) , 59 (2) , 59 (4) and 59 (5) ; and
(d) a sum equal to one fifth of such amount , in the case of goods comprised in any Item of the said Schedule other than those specified in clause (a), (b) or (c) of this section or in the Second Schedule to this Act :
Provided that in the case of goods comprised in Items Nos . 48 to 48(10) , both inclusive, if the duty of excise for the time being leviable on like goods exceeds the sum of- 43
99 THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 31 , 1040
(i) the duty of customs chargeable under the First Schedule to the Indian Tariff Act , 1934 , or under that Schedule read with any notification of the Central Government for the time being in force , and
( ii) the additional duty of customs chargeable under clause
(b) or (d) of this section,
there shall , up to the 31st day of March , 1950 , be levied and collected as a further addition to , and in the same manner as, the duties of customs so chargeable an amount equal to the afore- said excess .
6. In the Second Scheduleto the Indian Tariff Act , 1934 , Inposition and al XXXII of 1934.
tmation of certain xport duties .
(a) in Item No. 1 , for the words and brackets "Raw Jute (other than Bimlipatam jute) " in the entry in the second column , the words and brackets "Raw Jute ( including Bimlipatamjute and mesta fbre ) " shall be substituted ;
(b) in Item No. 2 , for the words and brackets " Jute manufac- tures ( other than of Bimlipatam jute) " ," , in the entry in the second column, the words and brackets " Jute manufactures ( in- oluding manufactures of Bimlipatam jute and of mesta fibre ) " shall be substituted ;
(c) in Item No. 6 , for the entry in the third column , the entry " 10 per cent . ad valorem " shall be substituted ;
(d) Items Nos . 8 and 9 shall be omitted ; and
( e) after Item No. 7 , the following Item shall be inserted, namely :-
" 8. Cigarettes , cigars and cheroots
15 per cent . ad valorem. "
I of 1944. 7. In the First Schedule to the Central Excises and Salt Aot 1944,-
, Insposithers and alteration o s tali duties of
(a) in Item No. 2, for sub - items (1) and (2) , the following shall excise. be substituted, namely:-
"(1) Matches, in boxes containing 60 matches on an average , if manufactured in a factory whose output--
( i) exceeds five hundred thousand gross of boxes per year .
Three rupees per gross of boxes .
( ii) does not oxcood five hundred thousand gross of boxes per year , but exceeds one hundred gross of boxes per day .
Two rupees , fifteen annas and three pies per gross of boxes,
(iii) does not exceed one hundred gross of boxes por day .
Two rupees and fourteon per gross of boxes .
(2) Matches , in boxes containing 40 matchos if manufactured in a factory whose output- on an average,
Two rupeos per gross ofboxes .
( i) exceeds five hundred thousand gross of boxes per year . ( ii) does not exceed five hundred thousand
gross of boxes per year but exceeds one hundred gross of boxes per day .
( iii) does not exceed one hundred gross of boxes per day .
One rupee , fifteen annas and six pies per gross of boxes . One rupee and fifteen annM per gross of boxes .";
(6) in Item No. 4, for the entry in the third column , the- entry "Fifteen annas per imperial gallon" shall be substituted ;
(c) in Item No. 8 , for the entry in the third column against sub - item ( 1) , the entry "Three rupees and twelve annas per owt ." shall be substituted;
00
THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 81 , 1949
(d) for Item No. 10 , the following Item shall be substituted.
namely :-
" 10. TYRES-
'Tyre' means a pneumatic tyre in the manufacture of which rubber is used, and includes the inner tube and the outer cover of such a tyre ,
(1) Tyros for motor vehicles
30 per cent .
ad valorem ,
15 per cent .
(2) All other tyres
ad valorem . "
and
( e) Item No. 12 inserted by section 2 of the Central Excises and Salt (Amendment ) Ordinance , 1949 , shall be omitted , and the I of 1949 . following item inserted in liou theroof , namely :-
" 12. CLOTHI
"Cloth'moans any type of cloth manufactured either wholly from cotton or partly from cotton and partly from any other material , but doos not include--
(i) ready mado clothing other than dhotios and sareos ;
( ii) hosiery ,
( iii ) leathor cloth and inferior or imitation leather cloth ordinarily used in book - binding ;
( iv) tracing paper
(v) cloth manufactured partly from cotton and partly from wool and containing 40 per cont . or more of wool by weight :
( vi) rubberised or synthetic waterproof fabrics whether single- toxtured or double - textured ; and
(vii ) hand -loom cloth .
(1) Superfire cloth--
Twenty - five per cent . ad valorem .
that is to say , cloth in which the count of warp yaro ( whether single or foldod ) is 48s or
Anor .
(2) Fine cloth-
Six and one - fourth per cent . ad valo- rem .
that is to say , clothin which the count of warp yarn (whether single or folded) is 358 or finer but does not exceed 47s .
(3 ) Mediura cloth-
that is to say, cloth in which the count of warp Three pios per yard . yarn ( whethor single or folded) is 178 or flner but does not exceed 348 .
(4) Coarso cloth-
that is to say , all other cloth in which the count Three pios per yard ." of warp yarn ( whethor single or folded )
does not exceed 168 .
Amendment of Act XI of 1992 .
8. (1 ) The following amendments shall be made in the Indian Income - tax Act , 1922 ( hereaftor in this Act referred to as " the moome - tax Act " ) , namely :-
(a) for clause (6 ) of section 2 , the following clause shall be substituted , namely :-
"(6) ' company' means-
(i ) any Indian company , or
(ii ) any association, whether incorporated or not and whether Indian or non- Indian , which is or was asses- sable , or was assessed, as a company for the assess- mout for the year ending on the 31st day of March , 1948 , or which is declared by general or special order of the Central Board of Revenue to be a company for the purposes of this Act " ;
as
THE GAZETTE OF INDIA EXTRAORDINARY , MARCH. -81 , 1949 .
(b) in the last proviso to clause ( 64 ) of section 2 , after the figures " 1946 " , the words and figures " or after the 31st day of March, 1948 " shall be inserted and
( c) in sub - section (1 ) of section 12B , after the figures " 1946 " , the words and figures " and before the 1st day of April , 1948 " shall be inserted .
(2) The amendment made by clause ( a) of sub - section ( 1 ) shall be deemed to be operative so as to apply in relation to all assessments subsequentto the assessment for the year ending on the 31st day of March , 1948 , whether such assessments have, or have not, been made before the commencement of this Act .
Income- tax and Super - tex .
9. ( 1) Subject to the provisions of sub -sections ( 3) , ( 4) , ( 5) and (6) , for the year beginning on the ist day of April , 1949,
(a) income- tax shall be charged at the rates specified in Part I of the third Schedule , and
XI of 1922.
(6 ) rates of super - tax shall , for the purposes of section 55 of the Income- tax Act , be those specified in Part II of the Third Schedule .
(2) In making any assessment for the year ending on the 31st day of March, 1950 , there shall be deducted from the total income of an assessee , in accordance with the provisions of section 15A of the Income - tax Act , an amount equal to one - fifth of the earned income , if any , included in his total income , but not exceeding in any case four thousand rupees .
(3) In making any assessment for the year ending on the 31st day of March , 1950 ,-
XX of 1948
(a) where the total income of an assesseć , not being a company , includes any income chargeable under the head " Salaries" as reduced by the deduction for earn- ed income appropriate thereto , or any income charge- able under the head " Interest on securities " , or any income from dividends in respect of which he is deemed under section 49B of the Income - tax Act to have paid income - tax imposed in British India , the income - tax payable by the assessec on that part of his total income which consists of such inclusions shall be an amount bearing to the total amount of income - tax payable according to the rates applicable under the operation of the Indian Finance Act , 1948 , on his total income the same proportion as the amount of such inclusions bears to his total income ;
(6) where the total income of an assessee , not being a com- pany, includes any income chargeable under the head "Salaries " on which super - tax has been or might have been deducted under the provisions of sub - section ( 2) of section 18 of the Income - tax Act , the super - tax pay- able by the assossee on that portion of his total income which consists of such inclusion shall be an amount bearing to the total amount of super - tax payable , accord- ing to the rates applicable under the operation of the Indian Finance Act , 1948 , on his total income the same proportion as the amount of such inclusion bears to his total income .
ab
102
THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 31 , 1949
(4) In making any assessment for the year ending on the 31st day of March , 1950 , where the total income of an assessee consists partly of earned income and partly of unearned income , the super- tax payable by him shall be--
( i) on that part of the earned income chargeable under the head " Salaries " to which clause (b ) of sub - section ( 3 ) applies , the amount of super - tax computed in accord- ance with the provisions of that sub-section , plus
(ii) on the remainder of the earned income , the amount which bears to the total amount of super- tax which would have been payable on his total income had it consisted wholly of earned income the same proportion as such remainder bears to his total income , plus
( iii) on the unearned income , the amount which bears to the total amount of super - tax which would have been payable on his total income had it consisted wholly of unearned income the same proportion as the unearned income bears to his total income .
(5) In making any assessment for the year ending on the 31st day of March , 1950 ,-
(a) where the total income of a company includes any profits and gaine from life insurance business , the super . tax otherwise payable by the company on the whole of such total income shall be reduced by an amount which bears to that super - tax the same proportion as the amount of such inclusion bears to its total income or by an amount computed at the rate of two annas in the rupee on the amount of such inclusion , whichever is less ;
XII of 1943 .
(b) where the total income of an assessee , not being a company, includes any profits and gains from life in- surance business , the income - tax and super - tax payable by the assessee on that part of his total income which consists of such inclusion shall be an amount bearing to the total amount of such taxes payable according to the rates applicable under the operation of the Indian Finance Act, 1942 , on his total income the same propor- tion as the amount of such inclusion bears to his total income, so however that the aggregate of the taxes so computed in respect of such inclusion shall not in any case exceed the amount of tax payable on such inclu- sion at the rate of five annas in the rupee .
(6) In cases to which section 17 of the Income - tax Act applies , the tax chargeable shall be determined as provided in that section , but with reference to the rates imposed by sub- section ( 1 ) , and in accordance , where applicable , with the provisions of sub - sections (3), (4) and (5) of this section .
(7) For the purposes of making any deduction of income - tax in the year beginning on the 1st day of April , 1949 , under sub- section ( 2 ) or sub - section ( 2B ) of section 18 of the Income - tax Act from any earned income chargeable under the head " Salaries " , the ostimated total income of the assessee under this head shall, in computing the income- tax to be deducted , be reduced by an THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 31 , 1949
amount equal to one - fifth of such earned income , but not exceed- ing in any case four thousand rupees ; but no abatement shall be allowed by the person responsible for paying the salary in respect of any donations made by the assessee to which section 15B of the Income -tax Act is or may be applicable.
(8) For the purposes of this section and of the rates of tax im- posed thereby, the expression " total income " means total income as determined for the purposes of income - tax or super - tax, as the case may be , in accordance with the provisions of the Income - tax Act , and the expression " earned income" has the meaning assigned to it in clause ( 6AA ) of section 2 of that Act .
XX of 1948.
section Re- assessment Second super -tax in tax case of certain co the panies .
10. (1 ) Notwithstanding anything contained in sub - (1) of section 9 of, or paragraph D of Part II of the Schedule to, the Indian Finance Act , 1948 , the rate of super - for the purposes of section 55 of the Income- tax Act and for year beginning on the 1st day of April , 1948 , shall be four annas per rupee of the total income in the case of any company not entitled to the rebate allowed by the proviso to paragraph Dof Part II of the Second Schedule to the Indian Finance Act, 1948 , unless it was--
(2) a public company whose shares were offered for sale in a recognised Stock Exchange at any time during the previous year , or
(b) a company all of whose shares wore held at the end of the previous year by one or more such public companies as aforesaid .
WII of 1913.
(2) For the purposes of sub - section ( 1) , a company shall be deemed to be a public company only if it is neither a private company within the meaning of the Indian Companies Act , 1913 , nor a company in which shares carrying more than fifty per cent . of the total voting power were, at any time during the provious year, held or controlled by less than six persons .
(3) Where the assessment for the year beginning on the 1st day of April, 1948 , has been made before the commencement of this Act in respect of any company to which sub -section ( 1) of this section applies , it shall be revised by the Income - tax Officer so as to give effect to the provisions of that sub - section .
11. ( 1) In sub- clause ( a) of clause (4) of section 2 of the Business Profite KXI of 1947 , Business Profits Tax Act , 1947 , for the figures " 1948 " the figures Tax . " 1949 " shall be substituted .
(2) The tax imposed by section 4 of the said Act shall , in res- pect of any chargeable accounting period beginning after the 31st day of March , 1948 , be an amount equal to 10 per cent . of the taxable profits .
(3) For the purposes of the said Act , " abatement " shall mean, in respect of any chargeable accounting period beginning after the 31st day of March , 1948 , a sum which bears-
(a) in the case of a company not being a company deemed for the purposes of section 9 of the said Act to be a firm, to a sum equal to six per cent. of the capital of the THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 81 , 1949
company on the first day of the said period, computed in accor dance with Schedule II to the said Act , or two lakhs of rupees , whichever is greater ; or
(b) in any other case , to two lakhs of rupees ,
the same proportion as the said period bears to the period of one year .
epoals ,
I of 1949, 12. The Indian Tariff ( Amendment ) Ordinance, 1948 , and the XXXIII of Central Excises and Salt ( Amendment ) Ordinance , 1949 , are 1948 . hereby repealed .
106. THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 81 , 1949
THE FIRST SCHEDULE
(See section 3. )
VI of 1808.
Schedule to be inserted in the Indian Post Office Act , 1898 .
" THE FIRST SCHEDULE
INLAND POSTAGE RATES
(See section 7. )
Letters
Two annas .
For a weight not exceeding one tola
One anna .
For every tola , or fraction thereof , exceeding one tola
Postcards
Single
Nine pies .
One and a half annas ..
Reply
Book , Pattern and Sample Packets
For the first five tolas or fraction thereof
Nine ples .
For every additional two and a half tolas , or fraction thereof , in exхсевь offive tolas
Three pies:
Registered Newspapers
For a weight not exceeding ten tolas .
Three ples .
For a weight exceeding ten tolas and not exceeding twenty tolas
Sixpies.
Sixpies .
For every twenty tolas , or fraction thereof , exceeding twenty tolar
Inthe case of more than one copy of the same issue of a registered news- paper being carried in the same packet-
For a weight not exceeding ten tolas
Sixples.
Threepics .
For every additional five tolas , or fraction thereof , in excess of ten tolas :
Provided that such packet shall not be delivered at any addressee's resi-. dence but shall be given to a recognised agent at the post office :
Parcels
Six annas For a weight not exceeding forty toles
Six annas" For every forty tolas , or fraction thereof, exceeding forty tolas 100
108
THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 81 , 1949
THE SECOND SCHEDULE
(See section 5.)
Goods on which additional duty of customs is not leviable .
A. Goods comprised in the following Items of the First Schedule to the Indian Tariff Act , 1934 , namely : --
XXX of 1934 .
2, 4, 4( 1 ) , 4(3 ) , 4(4 ) , 4( 5) , 7 ( 1 ) , 8 ( 1 ) , 8 (2 ) , 8 ( 3 ) , 8(4) , 8 ( 5) , 9 (3 ) , 9(5), 9 (6 ) , 9 (7 ) , 11 ( 4) , 11 ( 5) , 12 (6) , 13 ( 4 ) , 13 ( 8 ) , 13 (9 ) , 15 , 15 ( 5) , 15(9) , 15 ( 10 ) , 15 ( 11 ) , 15( 12 ) , 16 , 16 ( 1 ) , 16 ( 3 ) , 20 ( 1 ) , 20(2 ) , 20 (3 ) , 20(4) , 20( 5 ) , 20( 6 ) , 20 ( 7 ) , 20 (8 ) , 20 (9 ) , 21 ( 3 ) , 21 (4 ) , 21 ( 5 ) , 21 ( 6 ) , 21(7 ) , 21 ( 8 ) , 21 (9 ) , 22 (3 ) , 22 (5 ) , 24 , 24 ( 1 ) , 24 ( 2 ) , 24 (3 ) , 25 ( 1 ) , 27 (1 ) , 27(2), 27 ( 3 ) , 27 ( 4 ) , 27 ( 5) , 27 ( 6 ) , 27(9 ) , 28 , 28 ( 8 ) , 28( 14) , 28 ( 15 ) , 28(16) , 28 ( 17 ) , 28 ( 18 ) , 28 ( 19 ) , 28 (20 ) , 28 (21 ) , 28 (22 ) , 28 ( 23 ) , 28 (24 ) , 28( 25 ) , 28 (26) , 28 ( 27 ) , 28 ( 28 ) , 28 (29 ) , 28 ( 30 ) , 29 , 29 ( 1 ) , 30, 30( 1 ) , 30( 2) , 30(9 ) , 30(10) , 30 (11) , 30( 12 ) , 30 ( 13 ) , 31 (4) , 34(3 ) , 40( 4) , 40(5 ) , 40( 6) , 40(7 ) , 43 , 44, 44( 1 ) , 45 , 45( 3) , 46(3 ) , 49 , 49 ( 2 ) , 51 , 52(4) , 53 (2 ) , 55 , 55( 1 ) , 55 ( 2 ) , 55 (3 ) , 60 , 60 ( 2 ) , 60 (3) , 60(4) , 60( 5) , 60 (6) , 61 (2 ) , 61 ( 3 ) , 61 ( 8 ) , 61 (9 ) , 61 ( 11 ) , 62 ( 1 ) , 62 (2 ) , 63(30) , 63 (31 ), 63 ( 32 ) , 63( 33 ) , 63 ( 34) , 63 (35 ) , 64, 64 (3 ) , 64( 4 ) , 65, 67, 67 ( 1 ) , 67(2) , 68, 68 (2 ) , 69 (2 ) , 70 , 70( 1 ) , 70 ( 2 ) , 70 ( 3 ) , 70( 4 ) , 70 (5 ) , 70(6 ) , 70(9) , 71 ( 2) , 71 ( 3 ) , 71 ( 7 ) , 71 ( 8 ) , 71 ( 9 ) , 71 ( 10 ) , 72 , 72 ( 1 ) , 72 ( 2 ) , 72(3 ), 72(4 ) , 72 ( 5 ) , 72 ( 11 ) , 72 ( 12 ) , 72 ( 13 ) , 72( 14 ) , 72 (15) , 72 (16) , 72(17 ) , 72 (18 ) , 72 ( 19 ) , 72 (20 ) , 72 ( 21 ) , 72 ( 22 ) , 72 ( 23 ) , 72( 24 ) , 72( 25 ) , 72 (26) , 72 ( 27 ) , 72 ( 28 ) , 73 ( 2 ) , 73(4 ) , 73 ( 7 ) , 73 ( 8 ) , 73 (9 ) , 73( 10) , 73 ( 11 ) , 73 ( 12 ) , 73 ( 13 ) , 73 ( 14) , 74 (2 ) , 74(4 ) , 75( 1 ), 75( 5) , 75( 6) , 75( 7 ) , 75( 8 ) , 77 ( 2 ) , 77 (4 ) , 77 (5 ) , 78, 78 ( 1 ) , 79 , 82 ( 1 ) , 84 , 84(1), 85(1 ) .
B. Goods comprised in the following Items of the First Sche- dule to the Indian Tariff Act , 1934 , when the Customs Collector is satisfied that such goods are the produce or manufacture of Burma , namely :-
No. 7 (potatoes and onions only) and Nos . 9 , 9( 3 ) , 13(2 ), 17 and 34(4) (a) .
107 THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 81 , 1949
THE THIRD SCHEDULE
(See section 9. )
PART I
Rates of Income - tax
A. In the case of every individual , Hindu undivided family, unregistered firm and other association of persons , not being a case to which paragraph B or C of this Part applies-
Rate
1. On the first Rs . 1,500 of total income
2. On the next Rs . 3,500 of total income
Nil. Nine pies in the rupeo .
8. On the next Rs . 5,000 of total income
One anna and nine pies in the rupee .
4. On the next Rs . 5,000 of total income
Three and a half annas in the rupee .
5. On the balance of total income
Five annas in the rupees
Provided that-
(i) no income- tax shall be payable on a total income which, before deduction of the allowance , if any , for earned income, does not exceed the limit specified below ;
( ii ) the income - tax payable shall in no case exceed half the amount by which the total income (before deduction of the said allowance , if any , for earned income ) exceeds the said limit ;
( iii ) the income - tax payable on the total income as re- duced by the allowance for earned income shall not exceed either-
(a) a sum bearing to half the amount by which the total income ( before deduction of the allowance for earned income ) exceeds the said limit the same proportion as such reduced total income bears to the unreduced total income , or
(b) the income - tax payable on the income so reduced at the rates herein specified,- whichever is less .
The limit referred to in the above proviso shall be-
(i) Rs. 5,000 in the case of every Hindu undivided family which satisfies as at the end of the previous year either of the following conditions , namely :-
(a) that it has at least two members entitled to a share on partition who are not less than 18 years of age; or
(b) that it has at least two members entitled to a share on partition neither of whom is a lineal descendant of the other and both of whom are not lincally descended from any other living member of the family; and
(ii) Rs . 3,000 in every other case .
B. In the case of every company-
On the whole of total income
Rate Five annus in the rupee :
Provided that in the case of an Indian company-
( i) where the total income , as reduced by seven annas in 702
THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 81 , 1940
XI of 1922 .
therupee and by the amount , if any, exempt from income- tax, exceeds the amount of any dividends ( including dividends payable at a fixed rate ) declared in respect of the whole or part of the previous year for the assessment for the year ending on the 31st day of March , 1950 , and no order has been made under sub - section (1 ) of section 23A of the Income- tax Act , a rebate shall be allowed at the rate of one anna por rupee on the amount of such excess ;
( ii ) where the amount of dividends referred to in clause ( i) above excceds the total income as reduced by seven annas in the rupee and by the amount , if any , exempt from income - tax , there shall be charged on the total income an additional income - tax equal to the sum , if any , by which the aggregate amount of income - tax actually borne by such excess ( hereinafter referred to as the excess dividend " ) falls short of the amount calculated at the rate of five annas per rupee on the excess dividend .
For the purposes of the above proviso , the expression " dividend " shall have the meaning assigned to it in clauso ( CA ) of section 2 of the Income - tax Act , but any distribution included in that expression , made during the year ending on the 31st day of March , 1950 , shall be deemed to be a dividend declared in respect of the whole or part of the previous year .
For the purposes of clause ( ii ) of the above proviso , the aggregate amount of income - tax actually borne by the excess dividend shall be determined as follows : -
( i) the excess dividend shall be deemed to be out of the whole or such portion of the undistributed profits of one or more years immediately preceding the previous year as would be just sufficient to cover the amount of the excess dividend and as have not likewise been taken into account to cover an excess dividend of a preceding year ;
( ii) such portion of the excess dividend as is deemed to be out of the undistributed profits of each of the said years shall be deemed to have borne tax, -
( a) if an order has been made under sub- section ( 1 ) of section 23A of the Income- tax Act , XI of 1922 . in respect of the undistributed profits of that year , at the rate of five annas in the rupee , and
(b) in respect of any other year , at the rate applicable to the total income of the company , for that year reduced by the rate at which rebate, if any , was allowed on the undistributed profits .
C. In the case of overy local authority and in every case in which , under the provisions of the Income- tax Act , income - tax is to be charged at the maximum rate--
On the whole of total income
Rate . Five ennas in the rupee.
103
THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 31, 1949
PART II
Rates of Super - tax
A. In the case of every individual , Hindu undivided family , unregistered firm and other association of persons , not being a case to which any other paragraph of this Part applies-
Rate , if income wholly unearned Nil
Rate , if income wholly earned Nil
1. On the first Rs . 25,000 of total income
2. On the next Rs . 15,000 of total income
Three annas in the rupeo .
Two annas in the rupoo .
Four and a half 3. On the next Rs . 15,000 of total income
annas in the
Three annas in the rupee .
rupee .
4. On the next Rs . 15,000 of total income the rupee .
Five annas in Six annas in the rupee.
5. On the next Rs . 15,000 of total Six income . armas in Seven annas in the rupee . the rupee .
annas in the rupce . Eight annas in the rupee. 6. On the next Rs . 15,000 of total Six and a half incomo.
come . the rupoe . 7. On the next Rs . 50,000 of total in Seven arnas in Nineannas in the rupee .
8. On the noxt Rs . 1,00,000 of total Eight annas in Nine and a half income . tho rupee . annas in rupee . the
9. On the uoxt Rs . 1,00,000 of total Eight and a half incomo . annas in the rupoe. Ten annas in the rupee .
10. On the balance of total income Nine annas in Ten annas in the the rupee . rupee .
B. In the caso of every local authority- Rate
On the whole of total income Two annas in the rupee .
C. In the case of an association of persons being a co - operative society ( other than the Sanikatta Saltownors ' Socioty in the Bombay Province) for the time being registered under the Co- II of 1912. operative Socicties Act, 1912 , or under an Act of a Provincial Legis- lature governing the registration of co - operative societics- Rate
1. On the ßrst Rs . 25,000 of total income Nil .
2. On the balance of total income
Two annas in the rupee .
D. In the case of every company-
Ruto
On the whole of total inconsc
Four annas in the rupee :
Provided that-
( i) a rebate at the rate of three annas per rupee of the total income shall be allowed in the case of any company which-- 104
THE GAZETTE OF INDIA EXTRAORDINARY , MARCH 31 , 1949
XI of 1992 .
(a) in respect of its profits liable to tax under the Income- tax Act for the year ending on the 31st day of March , 1950 , has made the prescribed arrangements for the declaration and payment in the Provinces of the dividend payable out of such profits and for the deduction of super - tax from dividends in accordance with the provisions of sub - section ( 3D ) or ( 3E ) of section 18 of that Act , and
(b) is a public company with total income not exceeding Rs. 25,000 ;
( ii) a rebate at the rate of two annas per rupee of the total income shall be allowed in the case of any company which satisfies condition ( a ) , but not condition (b ) , of the preceding clause; and
(iii) a rebate at the rate of one anna per rupee of the total income shall be allowed in the case of any company which , not . being entitled to a rebate under either of the preceding olauses , is-
(a) a public company whose shares were offered for sale in a recognised stock exchange at any time during the previous year, ог
(6) a company all of whose shares were held at the end of the previous year by one or more such public companies as aforesaid:
Provided further that the super - tax payable by a company the total income of which exceeds Rs . 25,000 shall not exceed the aggregate of-
(a) the super- tax which would have been payable by the company if its total income had been Rs . 25,000 , and
(b) half the amount by which its total income exceeds Rs. 25,000.
VII of 1918.
Explanation. For the purposes of this paragraph of this Part, a company shall be deemed to be a public company only if it is neither a private company within the meaning of the Indian Companies Act , 1913 , nor a company in which shares carrying more than fifty per cent . of the total voting power were , at any time during the previous year , held or controlled by less than six persons .
K. V. K. SUNDARAM , Secy to the Govt . of India