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REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No. 9] NEW DELHI, TUESDAY, APRIL 28, 1964/VAISAKHA 8, 1886

Separate paging is given to this Part in order that it may be filed as a separate compilation

MINISTRY OF LAW

(Legislative Department)

New Delhi, the 28th April, 1964/Vaisakha 8, 1886 (Saka)

The following Act of Parliament received the assent of the Presi- dent on the 28th April, 1964, and is hereby published for general information: —

THE FINANCE ACT, 1964.

No. 5 OF 1964

[28th April, 1964]

An Act to give effect to the financial proposals of the Central Government for the financial year 1964-65.

BE it enacted by Parliament in the Fifteenth Year of the Republic of India as follows ;—

1. (1) This Act may be called the Finance Act, 1964.

(2) Save as otherwise provided in this Act, sections 3 to 55 shall

Short title and commence- ment.

be deemed to have come into force on the 1st day of April, 1964.

Income- tax and super-tax.

2. (1) Subject to the provisions of sub-sections (2), (3), (4) and (5), for the assessment year commencing on the 1st day of April, 1964 —

(a) income-tax shall be charged at the rates specified in Part I of the First Schedule and, in the cases to which Paragraphs A, B, C and E of that Part apply, shall be increased by a sur- charge for purposes of the Union calculated in either case in the manner provided therein;

43 of 1961

(b) super-tax shall, for the purposes of section 95 of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act), be charged at the rates specified in Part II of the First

( 4 3)

81 G. of I.—1

Schedule, and, in the cases to which Paragraphs A, B and C of that Part apply, shall be increased by a surcharge for purposes of the Union calculated in the manner provided therein.

(2) In making any assessment lor the assessment year com- mencing on the 1st day of April, 1964,—

13 of 1963.

(a) where the total income of an assessee, not being a company, includes any Income chargeable under the head "Salaries", the income-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 income-tax payable according to the rates applicable under the operation of the Finance Act, 1963, on his total income the same proportion as the amount of such inclusion bears to his total income;

13 of 1963.

81 of 1958.

(b) where the total income of an assessee, not being a company, 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 (1) of section 192 of the Income-tax Act, the super-tax payable by the assessee 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 according to the rates applicable under the operation of the Finance Act, 1963, on his total income the same proportion as the amount of such inclusion bears to his total income. (3) In making any assessment for the assessment year com- mencing on the 1st day of April, 1964, where the total income of a company, other than the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956, includes any profits and gains from life insurance business, the super-tax payable by it shall be the aggregate of the tax calculated—

(i) on the amount of profits and gains from life insurance business so included, at the rate applicable to the Life Insurance Corporation of India in accordance with Paragraph E of Part II of the First Schedule; and

(ii) on the remaining part of its total income, at the rate applicable to the company on its total income.

(4) In cases to which Chapter XII of the Income-tax Act applies, the tax chargeable shall be determined as provided in that Chapter, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter, as the case may be.

(5) (a) In respect of any assessment for the assessment year

commencing on the 1st day of April, 1964—

(i) an assessee being an Indian company or any other company which has made the prescribed arrangements for the declaration and payment of dividends within India or an assessee (other than a company) whose total income includes any profits and gains derived from the export of any goods or merchandise out of India, shall be entitled to a deduction, from the amount of Income-tax and super-tax with which he is chargeable, of an amount equal to the income-tax and super-tax calculated respectively at one-tenth of the average rate of income-tax and of the average rate of super-tax on the amount of such profits and gains included In the total Income;

65 of 1951,

(ii) where an assessee of the type referred to in sub- clause (i) engaged in the manufacture of any articles in an indus- try specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 has exported after the 28th day of February, 1963, such articles out of India, he shall be entitled, in addition to the deduction of tax referred to In sub-clause (i), to a further deduction, from the amount of tax with which he is chargeable for the assessment year, of an amount equal to the income-tax and super-tax calculated respectively at the average rate of income-tax and the average rate of super-tax on an amount equal to two per cent, of the sale proceeds receivable by him in respect of such export;

(in) where an assessee of the type referred to in sub-clause (i) engaged in the manufacture of any articles in an industry specified in the said First Schedule has sold after the 28th day of February, 1963, such articles to any other person in India who himself has exported them out of India and evidence is produced before the Income-tax Officer of such articles having been so exported, the assessee shall be entitled to a deduction from the amount of income-tax and super-tax with which he is charge- able for the assessment year of an amount equal to the income- tax and super-tax calculated respectively at the average rate of income-tax and the average rate of super-tax on a sum equal to two per cent, of the sale proceeds receivable by him In respect of such articles from the exporter.

(b) The total of the deductions under this sub-section shall In no case exceed the amount of income-tax and super-tax otherwise payable by the assessee.

(c) Nothing contained in sub-clause (ii) and sub-clause (in) of clause (a) shall apply,—

(i) in relation to—

(1) fuels, (2) fertilisers, (3) photographic raw film and paper, (4) textiles (including those dyed, printed or otherwise processed) made wholly or in part of jute, Including lute twine and rope,

(5) newsprint, (6) pulp—wood pulp, mechanical, chemical, including dissolving pulp,

(7) sugar, (8) vegetable oils and vanaspathi, (9) cement and gypium products,

(10) arms and ammunition, and (11) cigarettes,

65 of 1951.

respectively specified in items 2, 18, 20, 23(2), 24(2), 24(5), 25, 28, 35, 37 and 38 of the First Schedule to the Industries (Develop- ment and Regulation) Act, 1951; or

(ii) in relation to textiles specified in items 23(1), 23(3), 23 (4) and 23 (5) of that Schedule where such textiles have been exported before the 1st day of March, 1964.

(d) The amount of any profits and gains derived from the export of any goods or merchandise out of India in respect of which deduction of income-tax and super-tax is admissible under sub- clause (i) of clause (a) shall be computed in accordance with the rules made by the Central Board of Direct Taxes in this behalf.

(6) In cases in which tax has to be deducted under sub-section (2) of section 192 and sections 193 to 195 of the Income-tax Act at the rates in force, the deduction shall be made at the rates specified In Part III of the First Schedule.

(7) For the purposes of this section, and of the rates of tax imposed thereby, and of section 3—

(i) the expressions "assessment year", "average rate of income-tax", "average rate of super-tax", "partner", "tax" and "total income" have, unless the context otherwise requires, the meanings respectively as-signed to them under clauses (9), (10), (11), (23), (43) and (45) of section 2 of the Income-tax Act;

(ii) the expression "earned income" has the same meaning as in section 2 of the Finance (No. 2) Act, 1962. ²⁰ of ¹⁹⁶².

Axuuilty deposit.

3. (1) Save as otherwise provided in Chapter XXIIA of the Income-tax Act, annuity deposit for the assessment year commencing on the 1st day of April, 1964 shall be made by every person to whom the provisions of that Chapter apply at the rates specified in the Second Schedule.

(2) For the purposes of this section and the Second Schedule, the expressions "adjusted total income", "annuity deposit" and "depositor" have the meanings respectively assigned to them under clauses (1), (5) and (6) of section 280B of the Income-tax Act.

4. In section 2 of the Income-tax Act,—

(a) in clause (18) ,—

Amend-

ment of

section 2,

(i) for sub-clause (a), the following sub-clause shall be substituted,, namely: —

''(a) if it is a company owned by the Government or the Keserve Bank of India or in which not less than forty

per cent, of the shares are held (whether singly or taken together) by the Government or the Reserve Bank of India or a corporation owned by that bank; or";

(ii) m Explanation 2, for the words, brackets and figures "any such company as is referred to in sub-clause (2) of clause (iii) of section 109", the words "an Indian company whose business consists wholly in the manufacture or pro- cessing of goods or in mining or in the generation or distri- bution of electricity or any other form of power" shall be substituted;

(b) after clause (22), the following clause shall be inserted, namely: —

' (22A) ''fair market value", in relation to a capital asset, means—

(i) the price that the capital asset would ordinarily fetch on sale in the open market on the relevant date; and

(ii) where the price referred to in sub-clause (i) is not ascertainable, such price as may be determined in accordance with the rules made under this Act;';

(c) in clause (24) —

(i) after sub-clause (v), the following sub-clause shall be inserted, namely: —

"(va) the value of any benefit or perquisite taxable under clause (iv) of section 28;";

(ii) after sub-clause (vri), the following sub-clause shall be inserted, namely: —

" (viii) any annuity due, or commuted value of any annuity paid, under the provisions of section 280D;".

Amend- ment of section 9.

5. In section 9 of the Income-tax Act, in the Explanation to clause (i) of sub-section (7), the proviso to clause (b) shall be omitted.

6. In section 10 of the Income-tax Act,—

Amend- ment of section 10.

(i) in clause (4), after the words "in the case of a non- resident,", the following words shall be inserted, namely :—

"any income from interest on such securities as the Central Government may, by notification in the Official Gazette, specify in this behalf, or";

(it) In clause (6),—

(a) In sub-clause (vii) (a), for the words "was approved by the Central Government before the commencement of his service", the words "is approved by the Central Govern- ment before the commencement of his service or within one year of such commencement" shall be substituted;

(b) after sub-clause (viii), the following sub-clauses shall be inserted, namely: —

'(ix) any income chargeable under the head "Salaries" received by or due to him during the thirty-six- months commencing from the date of his arrival in India for service rendered as a professor or other teacher in a University or other educational institution, and where any such individual continues to remain in employment in India after the expiry of the thirty-six months afore- said and the tax on his income chargeable under the head "Salaries" is paid by the University or other educational institution concerned to the Central Govern- ment, the tax so paid for a period not exceeding twenty- four months following the; expiry of the thirty-six months aforesaid, provided in either case the following conditions are fulfilled, namely: —

(i) such individual was not resident in any of the four financial years immediately preceding the financial year in which he arrived in India; and

(ii) his contract of service is approved by the Central Government-

fa) OM or before the 1st day of October, 1964,

in the case of a professor or other teacher whose service commenced before the 1st day of April, 1964;

(b) before the commencement of his service or within one year of such commencement, in any other case;

(x) any sum due to or received by him, during the twenty-four months commencing from the date of his arrival in India, for undertaking any research work in India, provided the following conditions are fulfilled, namely :—

(a) the research work is undertaken In connec- tion with a research scheme approved in thl* bnhsTf

by the Central Government on or before the 1st day of October of the relevant assessment year; and

(fa) such sum is payable or paid directly or indirectly by the Government of a foreign State or any institution or association or other body establish- ed outside India;';

(Hi) in sub-clause (iv) (c) of cltause (15), for the words beginning with "in any case" and ending with "its repayment", the following shall be substituted, namely :—

"to the extent to which such interest does not exceed the amount of interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan or debt and its repayment";

(iv) after clause (26), the following clause shall be inserted, namely :—

"(27) any income derived from a business of livestock breeding, or poultry or dairy farming, which is assessable for the assessment year commencing on the 1st day of April, 1965, 1966 or 1967.".

7. In section 28 of the Income-tax Act, after clause (Hi) and before Explanation 1, the following clause shall be inserted, namely: —

Amend- ment of section 28.

"(iv) the value of any benefit or perquisite, whether con- vertible into money or not, arising from business or the exercise of a profession.".

8. In section 33 of the Income-tax Act,—

Amend- ment of section 33.

(i) after sub-section (1), the following sub-section shall be inserted, namely: —

" (1A) (a) An assessee who, after the 31st day of March, 1964, acquires any ship which before the date of acquisition by him was used by any other person shall, subject to the provisions of section 34, also be allowed as a deduction a sum by way of development rebate at such rate or rates as may be prescribed, provided 'that the following conditions are fulfilled, namely: —

(i) such ship was not previous to the date of such acquisition owned at any time by any person resident in India;

(ii) such ship is wholly used for the purposes of the business carried on by the assessee; and

(Hi) such other conditions as may be prescribed.

(b) An assessee who instals any machinery or plant (other than office appliances or road transport vehicles)

which before such installation by the assessee was used outside India by any other person shall, subject to the pro- visions of section 34, also be allowed as a deduction a sum by way of development rebate at such rate or rates as may be prescribed, provided that the following conditions are fulfilled, namely:—

(i) such machinery or plant was not used in India at any time previous to the date of such installation by the assessee;

(ii) it is imported in India by the assessee from any country outside India;

11 of 1922.

(iii) no deduction on account of depreciation of development rebate in respect of such machinery or plant has been allowed or is allowable under the provi- sions of the InJian Income-tax Act, 1922 or this Act in computing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee;

(iv) such machinery or plant is wholly used for the purposes of the busings carried on by the assessee; and

(u) such other conditions as may be prescubed.

(c) The development rebate under this sub-section shall be allowed as a deduction in respect of the previous year in which the ship was acquired or the machinery or plant was installed or, if the ship, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year.";

(ii) for the words, brackets and figure "under sub-section (1)" wherever they occur, the words, brackets, figures and letter "under sub-section (1) or sub-section (1A)" shall be substituted;

(in) in sub-section (2), for the words "at the rate applicable thereto under that sub-section", the words, brackets, figures and letter "at the rate applicable thereto under sub-section (1) oi sub-section (1A), as the case may bo" shall be substituted;

(iv) in clause (b) of sub-section (3), for the words and figures "section 33 and section 34", the words and figures "this section and section 34" shall be substituted;

(v) after sub-section (4), the following sub-section shall be inserted, namely: —

"(5) The Central Government, if it considers necessary or expedient so to do, may, by notification in the Official

Gazette, direct that tho it-ciuctim allowable uncLr tnis section shall not be allowed in rpspect "f a ship acquired or machinery or plant installed after tuch date, not being earlier than three years from the date of such notification, as may be specified therein "

9. In section 37 of the Income-tax A't after s'lb-section (2), the

Amend- ment of section 37 following sub-section shall be insetted namely: —

"(3) Notwithstanding anything contained in sub-section (1), any expenditure incurred by an osn.rsscc after the 31&t day of March, 1964 on advertisement or on main'ennnce of any resi- dential accommodation including any accommodation in the nature of a guest house or in connection with travelling by an employee or any other person (including hotel expenses or allowances paid in connection with suth travelling) shall be allowed only to the extent, and subject to s-Kh "onJitions if any, as may be prescribed."

10. In section 40 of the Tncome-tq-< AK, tn ^lausf (c),-~

(I) for sub-clause (iii), the following sub-clauso shall be

Amend- ment of section 40 substituted, namely :—

"(ill) any expenditure incurred after the 29th day of February, 1964 which results directly or indirectly in the provision of any benefit or anu-mtv oi perquisite, whether convertible into money or not, to on employee (Including anv sum paid by the company in respect ui any obligation which but for such payment would Lav^ boon payable by such employee), to the extent such uypoudili're exceeds one-fifth Lb° ^innloyep for any of the amount of sqiirv PHVSMP V. period of his pmpl^vm^nt ii^<-\ ^ /* 'fore^Md 53 THB GAZETTE OF INDIA EXTRAORDINARY [PABT H

\£) me existing nxpiananon snail De re-numoerea as JFxpIanation 1 and after Explanation 1 as so re-numbered, the following Explanation shall be inserted, namely: —

'Explanation 2.—In sub-clause (Hi), the word "salary" •hall have the meaning assigned to it In clause (h) of rule 2 of Part A of the Fourth Schedule.'.

1L In Chapter TV-D of the Income-tax Act, after section 44, th* following section shall be inserted, namely: —

Insertion

of new

section

44A.

Special

provision

for deduc-

tion In th*

eaie of

trade, pro-

fessional

or similar

ewocia+fau.

*44A~ 0) Notwithstanding anything to the contrary con- tained in this Act, where the amount received during a previous year by any trade, professional or similar association from its members, whether by way of subscription or otherwise (not being remuneration received for rendering any specific services to such members) falls short of the expenditure incurred by such association during that previous year (not being expenditure deductible In computing the Income under any other provision of this Act and not being in the nature of capital expenditure) solely for the purposes of protection or advancement of thr common Interests of its members, the amount so fallen short (hereinafter referred to as deficiency) shall, subject to the provisions of this section, be allowed "fj a deduction in computing the income of the association assessable for the relevant assessment year under the head "Profits and gains of business or profession" and if there is no Income assessable under that head or the deficiency allow- able exceeds such income, the whole or the balance of the deficiency, as the case may be, shall be allowed as a deduction in computing the Income of the association assessable for tb" relevant assessment year under any other head.

(2) In computing the income of the association for the relevant assessment year under sub-section (1), effect shall first be riven to any other provision of this Act under which any allowance or loss In respect of any earlier assessment year is carried forward and set off against the income for the relevant assessment year.

(3) The amount of deficiency to be allowed as a deduction under this section shall in no case exceed one-half of the total Income of the association a3 computed before making any allow- ance under this section.

(4) This section applies onlv lo that trade, professional or similar association the income of which or any part thereof is not distributed to Its members except as grants to any asocial!©* or institution affiliated to it.'.

Amend-

ment of

faction 4A

12. In the Income-tax Act, section 45 shall be re-uumbered ai sub- section (I) thereof and after sub-section (1) as so re-numbered, the following sub-sections shall be inserted, namely :—

'(2) Notwithstanding anything contained in sub-section (/), every equity shareholder to when any shares are allotted by the company by way of bonus shall, unless such shares are issued wholly out of the share premium account, be chargeable to income-tax under the head "Capital gains" in respect of such chares on an amount equal to the fair market value of such shares on the date next following the expiry of the period of thirty days from the date of such allotment and such amount shall be deemed to be the income of the previous year in which the date next following the aforesaid period of thirty days falls:

Provided that income-tax shall not be chargeable under this sub-section if such shares are included in the stock-in-trado of the aseessee or if such shares were allotted before the 1st day of April, 1964:

Provided further that nothing contained in section 48 shall apply to the income chargeable under the head "Capital gainV under this sub-section.

Explanation.—For the removal of doubts, it is hereby declar- ed that income chargeable under the head "Capital gains" under this sub-section shall, for the purposes of this Act, be treated B3 capital gains relating to capital assets other than short-term capital assets.

(5) Where any shares in respect of which an assessee la chargeable to income-tax under the head "Capital gains" under sub-section (2) are transferred by him before the expiry of the period of thirty days referred to in that sub-section, any profit* or gains arising from such transfer shall not be included in bis total income.

(4) Save as otherwise provided in sub-section (3), nothing contained in sub-section (2) shall be deemed to preclude the inclusion of any profits and gains arising from the transfer of any shares referred to in that sub-section in the total income of the assessee for any previous year in which such shares are trans- ferred by him.¹.

Amend"

ment of

sect* in 01

13. In the Income-tax Act, section 52 shall be re-numbered as sub-section (I) thereof and after sub-section (I) as so re-numbered, the following sub-section shall be inserted, namely: —

"(2) Without prejudice to the provisions of sub-section (1) if in ihe opinion of the Income-tax Officer the fair market value

of a capital a&bil trzn*A rivd by an assessee as on the date of the transfei exceeds tho ..ill uilue of the consideration declared by ihe ussessee m it.-.p*.-it ot the transfer of such capital asset by an amount of riot j.e .is than fifteen pui' cent, of the value so declared, rha full VEIIU.- ^l MJL- consideration for such capital asset shall, with the previous, approval of the Inspecting Assistant Commissioner, biJ taktn to be its fair market value on the date of its transfer."

14. In section 55 of the Income-tax Act, in sub-section (2), after

clause (Hi), the following clauses shall be inserted, namely: —

Amend- ment of Mctior BB

'(to) where the capital asset, being a share of a company, was allotted to the aiscssce by way of bonus and the assessee ta chargeable to income-tax under the head "Capital gains" In respect of such share under sub-section (2) of section 45 and such asset is transferred after the expiry of thirty days referred to In that sub-section, means the fair market value of the asset on the date next following the expiry of the said thirty days;

(v) where- the capital assei, being a share or a stock of a

company, became the pvopeiiy of the assessee on—

(a) the consolidation and division of all or any of the share capital of 1he company into shares of larger amount than Us existing shares,

(b) the conversion of any shares of the company Into

stock,

(c) the reconversion of any stock of the company into

shares,

(d) the sub-division of ally of the shares of the company

into shares of smaller amount, or

(e) the conversion of one kind of shares of the company

into another kind,

means the cost of acquisition of the asset calculated with reference to the cost of acquisition of the shares or stock from which such asset is derived.'.

Amend- ment of section 66

15. In section 66 of the Income-tax Act, foi the words and figures "sections (17 and 83", the words, figures and letter "sections 87, 87A and 88" shall be substituted.

16. After section 69 of the Tncome-tax Act, the following section

shall be inserted, namely: —

Insertion of new section 89A

Un- explained money,

"69A Where In any itnnnriuj. year the assessee la found to bo the owner of any money, bullion, jewellery or other viluible article and such money, bullion. Jewellery or valua] ,e

article is not recorded in the books of account, if any, main- tained by him for any source of income, and the assessee offers no explanation about the nature and source of acquisition of the money, bullion, jewellery or other valuable article, or the explana- tion offered by him is not, in the opinion of the Income-tax Officer, satisfactory, the money and the value of the bullion, jewellery or other valuable article may be deemed to be the Income of the assessee for such financial year.".

Amend- ment of section 86.

17. In section 86 of the Income-tax Act, In clause (Hi), for the words "income-tax has already been paid by the firm", the words "income-tax is payable by the firmi' shall be substituted.

18. In section 87 of the Income-tax Act,—

\mend- nent of section 87.

(i) In sub-section (3),—

(a) to clause (i), the following proviso shall be added, namely :—

"Provided that such individual has effected an insurance referred to in sub-clause (i) of clause (a) of sub-section (1) prior to the first day of March, 1964 and has paid any sum in the previous year to keep in force such insurance;";

(b) in clause (ii), after the words "any other indivi- dual", the brackets, words and figure "[including an author, playwright, artist, musician or actor to whom the provisions of clause (i) do not apply]" shall be inserted; (ii) after sub-section (3), the following sub-section shall bo Inserted, namely :—

"(4) The amount of Income-tax deductible under this section, together with the amount of super-tax deductible under section 99A, shall not in any case exceed half the aggregate of the sums in respect of which the deduction is allowed under this section.".

19. After section 87 of the Income-tax Act, the following section •hall be inserted, namely:—

Insertion of new section 07 A.

Rebate on educa- tional expenses In certain case* "87A. Where an individual, being a resident, who is not a citizen of India has expanded any sum in the previous year out of his income chargeable to tax for the full-time education of hia child wholly or mainly dependent on him and who is not more than twenty-one yeara of age at any University, college, school or pther educational institution situate la a country outside

India, he shall be entitled to a deduction, from the amount of Income-tax on his total income with which he is chargeable for any assessment year, of an amount equal to the income-tax calculated at tht average rate of income-tax on a sum—

(i) which, in the case of an individual who has one such child, shall not exceed two thousand rupees or twenty-nve per cent, of his total income, whichever is less; and

(U) which, hi the case of an individual who has more than one such child, shall not exceed four thousand rupees or twenty-five per cent, of his total income, whichever Is lew.".

ZO. In section 91 of the Inconfe-tax Act, In clause {ii) of the Amend- ment of •action 91.

Explanation, for the words "any relief due under this section", the words "any relief due under this Chapter" shall be substituted.

21. In section 99 of the Income-tax Act, in sub-section (1),—

Amend-

ment of

section 00.

(i) in clause (i), for the words "super-tax has already been paid by the firm", the words "super-tax is payable by the firm" shall be substituted;

(if) for clause (iv), the following clause shall be substituted, namely:—

" (lu) If the assessee is a company, any dividend received by it from an Indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends (including dividends on preference shares) within India;".

22. In Chapter XI-C of the Income-tax Act, before Bectlon 100, the following sections shall be inserted, namely :—

Insertion

of new

sections

99A and

flflB.

Rebate on

life insur-

ance

premia,

annuities

and con-

tribution!

to provi-

dent

funds, ate.

"99A, Where under the provisions of section 87, an assesses Is entitled to a deduction of income-tax in respect of any sum referred to hi sub-section (1) of that section, he shall also be entitled, subject to the provisions of sub-section (4) of that section, to a deduction, from the amount of super-tax with which he is chargeable on his total income, of an amount equal to the super-tax calculated at the average rate of super-tax on such sum.

Rebate of

super-tax

In certain

cosei.

99B. Where under the provisions of section 87A, an Individual, being a resident, who is not a citizen of India is entitled to a deduction of income-tax in respect of any sum referred to in that section, he shall also be entitled to a deduction,

from the amount of super-tax with which ho is chargeable on his total income, of an amount equal to the super-tax calculated at the average rate of super-tax on such sum.".

23. In section 104 of the Income-tax Act,—

Amend-

ment of

section

104.

(i) in sub-section (1), for the words, brackets and figures "sub-section (2) and of sections 105, 106 and 107", the words, figures and letter "this section and of sections 105, 106, 107 and 107A" shall be substituted;

(if) after sub-section (2), the following sub-sections ihaH be inserted, namely :—

"(3) If the Central Government is of opinion that It 1* necessary or expedient in the public interest so to do, it may, by notification in the Official Gazette and subject to such conditions as may be specified therein, exempt any class of companies to which the provisions of this section apply from the operation of this section.

(4) Without prejudice to the provisions of section 108, nothing contained in this section shall apply to—

(a) an Indian company whose business consists wholly or mainly in the manufacture or processing oi goods or in mining or in the generation or distribution of electricity or any other form of power;

(b) an Indian company, the value of whoso capital assets, being machinery or plant (other than offlc" appli- ances or road transport vehicles), as shown In its books on the last date of the relevant previous year Is fifty lakhs of rupees or more.

Explanation.—For the purposes of clause (a) of This sub-section, the business of a company shall be deemed to consist mainly in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, if the Income attributable to any of the aforesaid activities included In Its total income for the relevant previous year la not less than fifty-one per cent, of such total Income.".

24. To section 108 of the Income-tax Act, th© following proviso irtmil be added, namely :—

Amend-

ment of

lection

1M.

"Provided that the period of limitation prescribed by this section shall not apply In a caBe where the company has mad* an application to the Board under section 107A.*.

Amend- ment of section 107.

25. In section 107 of the Income-tax Act, for the words "No order shall be made", the words, brackets, figures and letter "Except In cases where a decision is given by the Board under sub-section (4) of section 107A, no order shall be made" shall be substituted.

26. After section 107 of the Income-tax Act, the following section shall be inserted, namely:—

Insertion of new section 107 A. Reduction of mini- mum distribu- tion in certain cues.

"107A. (1) If any company to which the provisions of section 104 apply (not being an investment company) considers that, having regard to the current requirements for the development of its business, it would not be possible or advisable for it to declare or pay a dividend of an amount larger than that already declared or paid or proposed to be declared or paid by '+ it may make an application to the Board for reduction of the amount of the minimum distribution required under this Chapter.

(2) Every application under sub-section (7) shall be In the prescribed form and shall be verified in the prescribed manner and shall be made within the period of twelve months referred to in sub-section (1) of section 104 or, where the Income-tax Officer has served on the company a notice under sub-section (1) of section 105 of his Intention to make an order under section 104, within thirty days of the receipt of such notice.

(3) Every application under sub-section (1) ahaU b" accompanied by a fee of one hundred rupees.

(4) If the Board is satisfied that a distribution equal to the statutory percentage of the distributable income of the company concerned would be unreasonable, It may reduce the amount of minimum distribution required of the company under this Chapter by such amount, not exceeding twenty per cent, of the statutory percentage of its distributable income, ?s if mav consider fit and further determine the period within which such distribution shall be made.

(5) The Bnard shall not reject an application made under sub-section (I) without giving the commny concerned an oppor- tunity of being heard and its decision shall be final as respecte matters concluded by It,

(6) Where an application is made by the company after receipt of a notice from the Income-tax Officer under sub-section (I) of section 105 and a further distribution is made in accord- ance with the decision thereon of the Board, such further distri- bution shall not be taken into account in deciding whether the provisions of section 104 apply In respect of tn" previous year to which tht further distribution is made.

(7) Where an application is made by a company under this section, the Income-tax Officer shall not make any order under section 104 until the decision is given by the Board on that application:

Provided that where a company Is required to make a distri- bution or further distribution of Its profits and gains in accord- ance with the decision of the Board and fails to make such distribution or further distribution within the per'od determined thereunder, the Income-tax Officer shall make an order under section 104 as if no reduction of the amount of minimum distribu- tion had been made by the Board under this section.

(8) If the Central Government is of opinion that ft Is necessary or expedient in the public Interest so to do, It may, by notification in the Official Gazette, declare that the provisions of this section shall not apply to anv class of companies or in regard to the whole or any part of the profits and gains of any class of companies.

(9) Notwithstanding anvJhint* container! In section 246, no appeal shall lie to the A p p e l i^ Assistant Commissioner against an order of the Income-tax Officer under section 104 in a case where a decision has been given by the Board.

(10) The Board may. bv unification in the Official Gazette, direct that, subject to such conditions, if nnv. as mav be specified In the notification, the powers exercise Vile by it under this section shall also be exercisable by any Commissioner in respect of such companies or classes of companies as may be specified therein and thereupon In respect of such companies or classes of com- panies the provisions of this section and sections 106 and 107 shall have effect as if references in the said sections to th" Board were references to such Commissioner,".

27. In section 109 of the Income-tax Act,—

Amend- ment ot section 109.

(a) for the words and figures 'Tor the purposes of sections 104 and 105", the words, figures and letter "For the purposes of sections 104, 105 and 107A" shall be substituted;

(b) in clause (lit)—

(i) sub-clause (2) shall be omitted; (ii) In sub-clause (3), for the words 'In any of the acti- vities specified in the preceding clause", the words "in the manufacture or processing of goods or In mining or in trie generation or distribution of electricity or any other form of power" shall be substituted.

81 Q ot I Ex.—3.

28. In section 114 of the Income-tax Act, in clause (b), i'or sub- clause (fi), the following sub-clause shall be substituted, namely: —

"mend- nent of ection 14.

"(") the amount of income-tax and super-tax calculated on such part of the net capital gains, if any, relating to capital assets other than short-term capital assets, as exceeds the sum of five thousand rupees—

(1) In the case of capital gains relating to buildings or lands, or any rights in buildings or lands, at three-fourths of the average rate of income-tax and three-fourths of the average rate of super-tax respectively, and

(2) in any other case, at one-half of the average rate of Income-tax and one-half of the average rate of super-tax respectively,

average rate of income-tax and average rate of super-tax being computed for the purpose of this sub-clause In the same manner as for the purpose of sub-clause (i) of this clause:

Provided that where the amount payable under sub-clause (ii) of clause (b) is less than the amount equal to fifteen per cent, of the net capital gains in respect of which tax is payable under that sub- clause, then the amount payable thereunder shall be fifteen per cent, of such net capital gains:

Provided further that where the total income does not exceed the sum of ten thousand rupees, the amount payable under the said sub-clause shall be nil;

plus".

29. In section 115 of the Income-tax Act,—

(i) for clause (a), the following clause shall be substitut-

\mend- iient of :ectioi. i 18.

ed, namely:—

"(a) the amount of income-tax equal to the aggregate

of-

(1) the amount of Income-tax calculated at the rate of twelve and a half per cent, on the amount of capital gains, if any, chargeable under sub-section (2) of section 45; and

(2) the amount of Income-tax with which it would have been chargeable had its total income been reduc- ed by the amount of capital gains referred to in sub-clause {!);";

(n) for clause (b), the following clause shall be substitut- ed, namely: —

"(fa) the amount of super-tax equal to the aggregate of-

(1) the amount of super-tax calculated on the amount of capital gains relating to capital assets other than short-term capital assets included in its total Income—

(i) at the rate of fifteen per cent, on so much of the amount of such capital gains as relate to buildings or lands or any rights in buildings or lands; and

(ii) at the rate of five per cent, on the balance of such capital gains, if eny [excluding capital gains, if any, referred to in sub-clause (1) of clause (a)]; and

(2) the amount of super-tax with which it would have been chargeable had its total income been reduc- ed by the amount of capital gains relating to capital assess other than short-term capital assets included in its total income.".

30. For section 132 of the Income-tax Act, the following section shall be substituted, namely: —

"132. (1) Where the Commissioner, in consequence of information in his possession, has reason to believe that—

Substitu* tion of ne* section fo section 13 Powers 01 search an. seizure.

11 Of 1922.

(a) any person to whom a summons under sub-section (i) of section 37 of the Indian Income-tax Act, 1922 or under sub-section (1) of section 131 of this Act, or a notice under sub-section (4) of section 22 of the Indian Income- tax Act, 1922 or under sub-section (1) of section 142 of this Act was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such summons or notice, or

11 of 1922.

(b) any person to whom a summons or notice as afore- said has been or might be issued will not, or would not, produce or cause to be produced any books of account or other documents which will be useful for, or relevant to, any proceeding under the Indian Income-tax Act, 1922 or under this Act, or

n of lofts.

(c) any person is in possession of any articles or things Including money wholly disproportionate to his known sources of income, particulars of which will be useful for, or relevant to, any proceeding under the Indian Income-tax Act, 1922 or this Act,

he may authorise any Inspecting Assistant Commissioner or any Income-tax Officer to enter and search any building or place where he has reason to suspect that such books of account, other documents, articles or things including money are kept and if as a result of the search such books of account, other documents, articles or things including money are found, the Inspecting Assistant Commissioner or the Income-tax Officer, as the case may be, may—

(i) seize any such books of account or other documents; (ii) place marks of identification on any such books of account or other documents or make or cause to be made extracts or copies therefrom;

(iii) make a note or an inventory of any articles or things including money found which, in his opinion, will be useful for, or relevant to, any proceeding under the Indian Income- tax Act, 1922, or this Act.

(2) The books of account or other documents seized under sub-section (I) shall not be retained by the Inspecting Assistant Commissioner or the Income-tax O/ficer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same are recorded by him in writing and the approval of the Commissioner for such retention is obtained:

11 of 1922.

Provided that the Commissioner shall not authorise the retention of the books of account and other documents for a period exceeding thirty days after all the proceedings under the Indian Income-tax Act, 1922, or this Act in respect of the years for which the books of account or other documents are relevant are completed.

(3) The person from whose custody any books of account or

other documents jre seized under sub-section (I) may make copies thereof, or taki.- oxiracts therefrom, in the presence of the Income-tax Officer or any other person authorised by him, at such place and time HD the Income-tax Officer may appoint In this behalf.

K4) If a person legally entitled to the books of account or other documents seized under sub-section (1) objects for any

reason to the approval given by the Commissioner under sub- section (2), he may make an application 'to the Board stating therein the reasons for such objection and requesting for the return of the books of account or other documents.

(5) On receipt of the application under sub-section (4) the Board may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.

5 of 1898.

(6) The provisions of the Code of Criminal Procedure, 1898 relating to searches shall apply, so far a$ may be, to searches under sub-section (1) of this section.

(7) The Board may make rules in relation to searches under this section.".

31. After section 133 of the Income-tax Act, the following section shall be inserted, namely: —

Insertion of new section 133A. Power of survey.

"133A. (1) Notwithstanding anything in any other provision, an Income-tax Officer or any Inspector of Income-tax authorised by him in this behalf may enter—

(a) any place within the limits of the area assigned to him, or

(b) any place occupied by any person in respect of whom the Income-tax Officer exercises jurisdiction,

at which a business or profession is carried on, whether such place be the principal place or not of such business or profession, and require any proprietor, employee or any other person who may at that time and place be attending in any manner to, or helping in the carrying on of, such business or profession to afford him the necessary facility to inspect such books of account or other documents as he may require and which may be available at such place, and on the inspection of such accounts or documents he may, if he so deems necessary, place marks of identification thereon or cause to be made extracts therefrom:

Provided that th? Income-tax Officer or such Inspector of Income-tax may enter any place referred to in this section only during such hours as the place is open for the conduct of the business or profession:

Provided further that while acting under this section the Income-tax Officer or such Inspector of Income-tax shall not remove or cause to be removed from the place which he has entered any books of account or other documents.

(2) If a person who under "sub-section (1) is required to afford facility to the Income-tax Officer or the Inspector of

Income-tax to inspect books of account or other documents either refuses or evades to do so, the Income-tax Officer shall have all the powers under sub-sections (1) and (2) of section 131 for enforcing compliance of the requirement made.".

32. Section 137 of the Income-tax Act shall be omitted.

Omission

of section

137.

33. For section 138 of the Income-tax Act, the following section mall be substituted, namely : —

Substitu-

tion of

new Bee- s

tion for

faction

138

Disclosure

of infor-

mation

respecting

assessees.

11 of 1922.

"138. (1) Where a person makes an application to the Com- missioner in the prescribed form for any information relating to any assessee in respect of any assessment made either under this Act or 'the Indian Income-tax Act, 1922, on or after the 1st day of April, 1960, the Commissioner may, if he is satisfied that it is in the public interest so to do, furnish or cause to be furnished the information asked for in respect of that assessment only and his decision in this behalf shall be final and shall not be called in question in any court of law.

(2) Notwithstanding anything contained in sub-section (1) or any other law for the time being in force, the Central Gov- ernment may, having regard to the practices and usages custo- mary or any other relevant factors, by order notified in the Official Gazette, direct that no information or document shall be furnished or produced by a public servant in respect of such matters relating to such class of essessees or except to such authorities as may be specified in the order.".

34. After section 140 of the Income-tax Act, the following section shall be inserted, namely: —

Insertion

of new

section

140 A.

Self,

assess-

ment.

"140A. (1) Where a return has been furnished under section 139 and the tax payable on the basis of that return as reduced by any tax already paid under any provision of this Act exceeds five hundred rupees, the assessee shall pay the tax so payable within thirty days of furnishing the return.

(2) After a provisional assessment under section 141 or a regular assessment under section 143 or section 144 has been made, any amount paid under sub-section (1) shall be deemed to have been paid towards the provisional assessment or regular assessment, as the case may be.

(3) If any assessee fails to pay the tax or any part thereof in accordance with the provisions of sub-section (2), he shall.

unless a provisional assessment under section 141 or a regular assessment under section 143 or section 144 has been made before the expiry of thirty days referred to in that sub-section, be liable, by way of penalty, to pay such amount as the Income- tax Officer may direct, so however, that the amount of penalty does not exceed fifty per cent, of the amount of such tax or part, as the case may be:

Provided that before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard.".

35. Section 141A of the Income-tax Act shall be omitted.

Omission of section 141A. amend- ment of section 156.

36. In section 156 of the Income-tax Act, after the words "any other sum", the brackets, words, figures and letter "(including annuity deposit referred to in Chapter XXIIA)" shall be inserted.

Amend- ment of section 209.

37. In section 209 of the Income-tax Act, in sub-clause (iv) oi clause (a), for the words, brackets and letters "clauses (b) and (c)", the words, brackets and letters "clauses (b), (c) and (d)" shall be, and shall be deemed to have been, substituted, with effeci from the first day of April. 1963.

38. In section 246 of the Income-tax Act, in clause (0),—

(i) for sub-clause (1), the following gub-clauses shall be

Amend- ment of section 246.

substituted, namely:—

"(i) section 140A, or (ia) section 221, or";

(ii) for sub-clause (w), the following sub-clauses shall be substituted, namely: —

"(v) section 273, or (vl) section 280R.".

39. In section 254 of the Income-tax Act, after sub-section (1), the following sub-section shall be inserted, namely: —

Amend- ment of section 294.

'(IA) (a) Where the appellant objects to the fair market value of a capital asset adopted under section 52, the Appellate Tribunal may, and if the appellant so requires, shall, refer the question of the disputed value to the arbitration of two valuers, one of whom shall be nominated by the appellant and the other by the respondent and the Appellate Tribunal shall, so far as that question is concerned, pass its orders under sub-section (1) conformably to the decision of the valuers:

Provided that where the appellant or the respondent does not nominate any valuer within the time specified by the

Appellate Tribunal or within such further time as the Appellate Tribunal may allow, the Appellate Tribunal may nominate a valuer on his behalf:

Provided further that if there is a difference of opinion between the two valuers, the matter shell be referred to a third valuer nominated by agreement, or failing agreement, by the Appellate Tribunal and the decision of that valuer on the question of valuation shall be final.

(b) The valuers to whom a reference under this sub-section has been made by the Appellate Tribunal shall communicate their decision to the Appellate Tribunal within six months of the date of such reference or within such further time as that Tribunal may allow:

Provided that if the decision of the valuers is not communi- cated within the period aforesaid, the Appellate Tribunal may order that the reference made under this sub-section shall be deemed to be withdrawn and proceed to dispose of the case on the evidence before it, including the report of either of the valuers If any such report has been submitted.

(c) The extent to which the costs of arbitration proceedings {Including a case where a reference Is deemed to be withdrawn) shall be borne by the appellant or the respondent shall be at the discretion of the Appellate Tribunal.

(d) The valuers may, in disposing of any matter referred to them for arbitration under this sub-section, hold or cause to be held such enquiry as they think fit and after giving the appellant and the respondent an opportunity of being heard, make such decision as they think fit and shall communicate such decision in writing to the Appellate Tribunal.

0 of 1908.

(e) The valuers appointed under this sub-section, while acting as such, shall have all powers of a Civil Court while trying a suit under the Code of Civil Procedure, 1908 in respect of the following matters, namely:—

(i) summoning and enforcing the attendance of any person and examining him on oath;

(ii) requiring the discovery and production of documents;

(Hi) receiving evidence on affidavit; and (iv) Issuing commission for examination of witnesses or documents. (f) Nothing in the Arbitration Act, 1940 shall apply to xe of 1940.

arbitrations under this sub-section.

Explanation.—Tn this sub-section, "valuer" means a valuer appointed under section 4 of the Estate Duty Act, 1953.'. "4 of i"53.

40 In section 271 of the Incomp-tax Act, in sub-section (I),—

(0 m clause (c), the word "deliberately" shall be omitted;

Amend- ment of section 271.

(li) the following Explanation shall be inserted at the end, namely: —

"Explanatum.—Whcre the total income returned by any person is less than eighty per cent, of the total income (hereinafter in this Explanation referred to as the correct income) at assessed under section 143 or section 144 or section 147 (reduced by the expenditure incurred bona fide by him for the purpose of mak'ng or earning any income included in the total income but which has been disallowed as a deduction), such person shall, unless he proves that the failure to return the correct income did not arise from any fraud or any gross or wilful neglect on his part, be deemed to have concealed the particulars of his income or furnished inaccurate particulars uf such income for the purposes of clause (c) of this sub-section.".

Amend- ment of section 277.

41. In section 277 ot the Income-tax Act, ior the words punishable with simple imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both.", the following shall be substituted, namely:-—

"punishable with iigorous imprisonment for a term which may extend to two years:

Provided that in the absence of special and adequate reasons to the contrary to be recorded in the j udgment of the court, such imprisonment shall not be for less than six months.".

Amend- ment of section 278 42. In section 278 of the Income-tax Act, for the words "punish- able with simple imprisonment which may extend to six months Or with fine which may extend to one thousand rupees, or with both.", the following shall be substituted, namely:—

"punishable with rigorous imprisonment for a term which may extend to two years:

Provided that in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the court, such imprisonment shall not be for less than six months.".

Amend- ment of section 280.

43 In section 280 of the Income-tax Act, in sub-section (1), for the words and figures "discloses any pailiculars, the disclosure of which is prohibited by section 137,", the words, brackets and figures "furnishes any informatnn or produces any document in contraven- tion of the provisions of &uh-section (2) of section 138," shall be substituted.

91 G of I Ex.—4

44. In the Income-tax Act, after section 280, the following Chapter and sections shall be inserted, namely:—

Insertion of new Chapter. XXIIA.

'CHAPTER XXIIA

ANNUITY DEPOSITS

280A. The provisions of this Chapter shall apply to every person, being—

Persons t" whom this Chapter applies

(i) an individual, who is a citizen of India, (ii) a Hindu undivided family, (Hi) an unregistered firm, (iv) an association of persons or a body of individuals, whether incorporated or not (other than a company or a co- operative society), and

(v) an artificial juridical person referred to in sub-clause {vii) of clause (31) of section 2 (other than a corporation estab- lished by a Central, State or Provincial Act):

PruvidrJ ilvit such person Is a resident.

Definitions, 230B, In this Chapter, unless the context otherwise requires,—

(1) "adjusted total income'¹—

(a) in relation to the assessment year commencing on the 1st day of April, 1964, means the amount of total income computed without making any allowance under section 280O and reduced by the aggregate of the following amounts, if my, included therein, namely: —

(i) any income chargeable under the head "Salaries"; (ii) if the depositor is a partner of an unregistered firm which is liable to make an annuity deposit for the relevant assessment year, the amount of his share in the profits and gains of the firm computed in the manner laid down in section 67;

(Hi) if the depositor is a member of an association of persons or a body of individuals (other than a Hindu undivided family or a firm) which is liable to make an annuity deposit for the relevant assessment year, the amount which he is entitled to receive from the associa- tion or body;

(iv) any compensation or other payment referred to in clause (ii) of section 28; and

(?;) any income chargeable under the head "Capital gains";

(b) in relation to the assessment year commencing on the 1st .-lay of April, 1965, or any subsequent assessment

year, means the amount of total income computed without making any allowance under section 280O and reduced by the aggregate of the following amounts, if any, included therein, namely: —

(i) any sum which under the provisions of sub-clause {vii) of clause (1) of section 17 is included in salary;

(ii) any income chargeable under the head "Salaries" in respect of which the assessee can make an application for the grant of relief under sub-section (1) of section 89;

(in) the amount referred to in sub-clause (n){ii) or sub-clause (a)(Hi) of this clause;

(iv) any compensation or other payment referred to in clause (ii) of section 28; and

(v) any income chargeable under the head "Capital gains";

'(2) "advance deposit" means the annuity deposit required to be made in advance m accordance with the provisions of sections 280E to 2801;

(3) "advance tax" shall have the same meaning JS in section •207;

(4) "annuity" means any annual instalment of principal and interest thereon payable by the Central Government und^r the provisions of section 280D;

(5) "annuity deposit" means a deposit of money required to be made under the provisions of this Chapter;

(6) "depositor" means a person to whom the provisions of this Chapter apply,

Require- ment as to annuity deposit 280C. (1) Where any Central Act enacts that any person to whom the provisions of this Chapter apply shall make for any assessment year an annuity deposit with the Central Government at any rate or rates, such person shall make such deposit at that rate or those rates in accordance with, and subject to the provisions of, this Chapter in respect of the adjusted total income of the previous year or previous years, as the case may be.

(2) In respect of the adjusted total income in relation to which an annuity deposit is to be made under sub-section (1), such deposit shall be made in advance in Hccm'danop with the provisions of sections •JtfOE to 2801.

Repay- ment.

230D. Subject to the provisions of this Chapter and any scheme framed thereunder, the Central Government shall repay to the depositor the annuity deposit made or recovered in any year in ten annual equated instalments of principal and interest at such rate as may be notified by the Central Government In the Official Gazette:

Provided that nothing in this section shall prevent the payment of any annuity at such commuted value thereof as may be provided in a scheme framed under section 280W, in any case in which the authority empowered to make such payment is satisfied that genuine hardship will be caused unless such payment is made.

280E. The amount of advance deposit to be made by a depositor in the financial year shall be computed as follows: —

Computa- tion of advance deDosIt.

(a)(i) his total income for the latest previous year in respect of which he has been assessed by way of regular assessment shall first be ascertained:

(zi) the amount of income of the nature referred to in sub- clause (b)(i) or sub-clause (b)(ii) or sub-clause (b)(iii) or sub- clause (b) (iv) or sub-clause (b) (v) of clause (1) of section 280B, if any, included in such income shall be deducted therefrom, and on the balance annuity deposit shall be calculated at the rates in force in the financial year;

(it?) the amount of annuity deposit calculated in accordance with sub-clause (ii) shall, subject to the provisions of clause"; (fc>) and (c), be the advance deposit to be made;

(b) in cases where an estimate of the adjusted total income is sent by the depositor under sub-section (1) or sub-section (2) or sub-section (3) of section 280H, the total income on the basis of which sudh adjusted total income is so estimated shall, for the purposes of calculation of advance deposit under this section, be substituted for the total income referred to in .clause (a);

(c) in cases where thp Income-tax Officer makes an amended order referred to in sub-section (3) of section 280F on the basis of a provisional assessment, the total income on the basis of which the relevant provisional assessment had been made shall be substituted for the total income referred to in clause (a) •

Explanation.—In this section and in sections 280F and 280H, the expression "total income" me,in=! the total income computed without making any allowance under section 280O,

Order by Income- tax Ofllrer 11 of 1922.

280F. (1) Where a depositor has been previously assessed by way of regular assessment under this Act or under the Indian Income-tax Act, 1922, the Income-tax Officer may, on or after the 1st day of April in the financial year, by order in writing, require him to make an advance deposit computed in accordance with the provisions of section 280E.

(2) The notice of demand issued under section 156 in pursuance of such order shall specify the instalments in which the advance deposit is to be made under section 280G

(3) If, after the making of an order by the Income-tax Officer under this section and before the 15th day of February of the finan- cial year, a regular assessment or a provisional assessment under section 141 of the depositor (or of the registered firm of which he is a partner) is made in respect of a previous year later than that referred to in the order of the Income-tax Officer, thp Income-tax Officer may make an amended order requiring such depositor to make in one instalment on the specified date, or in equal instalments on the specified dates, if more than one, falling after the date of the amended order, the advance deposit computed on the basis of the adjusted total income calculated with reference to the total income determined under the regular assessment or the provisional assess- ment aforesaid as reduced by the deposit, if any, made in accordance with the original order

Instal- ments of advance deposit.

280G. Subject to the provisions of section 280H, the provisions of section 211 shall, so far as may be, apply in relation to advance deposit to be made by a depositor as they apply in relation to ad- vance tax payable by an assessee with the modification that reference therein to section 210 shall be construed as reference to section 280F.

Estimate by fepositer.

280H. (J) If a depositor, who is required to make advance deposit by an order under section 280F, estimates at any time before the last instalment is due that his adjusted total income for the period which would be the previous year for the immediately following assess- ment year, is less than the income in respect of which he is required to make such deposit, and accordingly wishes to make a deposit of an amount less than the amount which he is so required to deposit, he may send to the Income-tax Officer—

(i) an estimate of the adjusted total income of thp said pro- vious year,

(it) an estimate of the advance deposit to be made by him calculated in the manner laid down in section 280E;

and shall make such deposit as accords with his estimate in equal instalments on such of the dates specified in section 211 as applied to advance deposit by section 280G as have not expired or in one sum if only the last of such dates has not expired

(2) The depositor may send a revised estimate of th" advanee deposit to be made by him and adjust any excess or deficiency in respect of any instalment already paid in a subsequent instalment or in subsequent instalments.

11 "rf 1922.

(3) A depositor who has not previously been assessed by way of regular assessment under this Act, or under the Indian Income-tax Act, 1922, shall, before the 1st day of March in each financial year, if his total income of the period which would be the previous year for the immediately following assessment year is likely to exceed the minimum amount in relation to which annuity deposit is required to be made under the provisions of the Finance Act of that year, send to the Income-tax Officer—

(i) an estimate of the adjusted total income of the said pre- vious year;

{ii) an estimate of the advance deposit to be made by htm calculated in the manner laid down in section 280E;

and shall make such deposit as accords with his estimate, on such of the dates specified under section 211 as applied to advance deposit by section 280G as hnve not expired, by instalments which may be revised according to sub-section (2).

(4) Every estimate under this section shall be sent in the pres- cribed form and verified in the prescribed manner.

Commis- sion receipts.

2801. Where part of the adjusted total income consists of any income of the nature of commission which is receivable periodically and is not received or adjusted by the payer in the depositor's account before any of the quarterly instalments of advance deposit become due, he may defer the making of advance deposit in respect of that part of his income to the date on which such income would be normally received or adjusted, and, if he does so, he shall communi- cate to th" Income-tnx Officer the date In which the making nf such deposit i" deferred

Annuls deposit on t he basis of self- assess- ment 280J. Where in respect of any assessment year, income-tax is pay- able on the basis of self-assessment under section 140A, the depositor shall, on or before the date on which tax under such assessment is payable, make an annuity deposit equal to the amount, if any, by which the amount of annuity deposit required to be made on the basis of income returned exceeds the amount, if any, of the annuity deposit already made by him in respect or that assessment year.

Annuity depoiit on the basis of Provlaloiui or regular assess- ment. 280K, At the time of making a provisional assessment under section 141 or a regular assessment, or as soon thereafter as mny be, the Income-tax Officer shall, by order in writing, determine the amount of annuity deposit, if any, required to be made by the de- positor on the basis of the incame so assessed after taking into account the amount of annuity deposit, if any, already made by him in respect of that assessment year.

Special provisions for the assessment year 1984-85.

280L. (1) If the total income of a depositor for the previous year relevant to the assessment year commencing on the 1st day of April, 1984 (such total income being computed without making any allow- ance under section 280O) exceeds fifteen thousand rupees and he does not furnish a return under section 139 before the 1st day of March, 1965 and no regular assessment under section 144 is made before th" B*ld 1st day of March, he shall send to the Income-tax Officer—

(i) an estimate of the adjusted total income of the said

previous year;

(ii) an estimate of annuity deposit to be made by him

calculated in the manner laid down in section 280E;

*

and shall make such deposit as accords with his estimate on or b"fore the 31st day of March, 1965,

(2) An estimate under this section shall be sent in the pr"crib"d

form and verified in the prescribtd manner.

Jt ©compu- tation of annuity deposit •nd adjuil ment of excess or deficiency. 280M, (1) Where as a result of an order 0/ re-assessment or recom- putation under section 147 or as a result of an order under section 154 or section 156 or section 186 or section 250 or section 254 or section 260 or section 262 or section 263 or section 264, the totajl income of a depositor is enhanced or reduced, or the status under whfch he is assessed is altered, or in the case of a firm, registration is granted or cancelled, the Income-tax Officer shall compute or re- compute the amount of annuity dtpo"it to b" m"dt by such d"p""ltor.

(2) Where any depositor has deposited any amount for any assess- ment year which is—

(a) in excess of the amount, or

(b) less than the amount,

required to be deposited under the provisions of this Chapter foi that year and in the case referred to in clause (b), an additional amount has been recovered to make up the deficiency, then such excess amount or additional amount, as the cage may be, may be adjusted or otherwise dealt with in such manner as may be provided in a scheme framed under section 280W.

280N. Where any unregistered firm is assessed under clause (b) of section 183 for any assessment year, such firm shall not be liable to make an annuity deposit for that assessment year and annuity deposit made by it for that assessment year, if any, shall be adjusted or otherwise dealt with in such manner as may be provided In a scheme framed under section 280W.

Refund of

annuity

deposit

made by

a firm

assessed

under

clause (b)

of aection

183.

Annuity

deposit

allowed

as dedu-

ction In

computing

total In-

come.

280O. (1) Notwithstanding anything to the contrary contained in the provisions of this Act relating to the computation of income chargeable under any head of income, the annuity deposit required to be made under this Chapter shall, subject to the provisions of sub-section (2), be allowed as a deduction in computing the total income assessable for the assessment year in respect of which the annuity deposit is required to be made.

(2) It the adjusted total income of the depositor includes any income chargeable under the head "Salaries", the allowance under sub-section (I) shall be made in computing the income under that head, and if there is no income chargeable under that head oi the annuity deposit required to be made exceeds such income, the whole or the balance of the annuity deposit required to be made shall be allowed as a deduction in computing earned income chargeable under any other head, and if there is no earned income chargeable under any other head or the whole or the balance of the annuiiy deposit required to be made exceeds such earned income, the whole or balance of the annuity deposit required to be made shall be allow- ed as a deduction in computing any other income under any head.

Explanation.—In this sub-section, the expression "earned income" lias the meaning assigned to it in the Finance Act of the¹ relevant year.

Annuity deposit deductible in comput- ing Income under the head "Salaries" for pur- poses of section 192.

280P. Any person responsible for paying any income chargeable under the head "Salaries" to a resident shall, at the time of payment, deduct income-tax and super-tax under section 192 as if the estimat- ed income reierred to in sub-section (2) of that section had been reduced by the amount of advance deposit, if any, to be made by the assessee at the rates in force in the financial year concerned in respect of such income, whether such advance deposit has or has not been made.

Rounding off.

280Q. The amount of any deposit to be made under this Chapter shall be rounded orf to the nearest multiple of five rupees and where such amount contains a part of five rupees, then, if such part is two rupees and fifty naye paise or more, it shall be increased to five rupees and if such part is less than two rupees and fifty nay* paise, it shall be ignored.

Penalty for failure to make deposit.

280R. (2) If any person who is liable to make an annuity deposit under this Chapter fails to make such deposit within the time specified therefor, the Income-tax Officer may direct that the depositor shall pay by way of penalty an amount not exceeding one-half of the annuity deposit which he is liable to make.

(2) I± the Income-tax Officer, in the course of any proceedings in connection with the regular assessment is satisfied that any depositor—

(a) has furnished under section 280H an. estimate of advance deposit to be made by him which he knew or had reason to believe to be untrue, or

(b) has without reasonable cause failed to furnish on estimate of advance deposit to be made by him in accordance with the provisions of sub-section (3) of section 280H,

he may direct that such depositor shall pay by way of penalty A sum—'

(i) which, in the case referred to in clause (a), shall ntit exceed half the amount by which the advance deposit actually made during the financial year immediately preceding the assessment year under the provisions of sections 280E to 280t falls short of—

(2) seventy-five per cent, of the annuity deposit requir- ed *• be made on the basis of income assessed by way of regular assessment (such deposit being calculated at the rates in force in the financial year immediately preceding the assessment year), or

&1 G of I Ex.—5,

(2) where a notice under section 280F was issued to the depositor, the deposit required ti be made thereunder,

Whichever is less; and

(ii) which, in the case referred to in clause (b), shall not exceed half the amount equal to the seventy-five per cent- referred to in clause (i) (1).

(3) No order imposing a penalty under this section shall be made unless the assessee has been heard, or has been given a reasonable opportunity of being heard.

Other Interest and penalt provisions of the Act not to apply.

280S. Notwithstanding anything to the contrary contained in this y Act, the provisions of this Act, other than those contained in this Chapter or any scheme framed thereunder, relating to interest pay- able by the Central Government on refunds and interest payable by the assessee in default or those relating to imposition of penalty ahull not apply in relation to any sum due under this Chapter.

Recovery of arrears of deposit and penalty.

280T. For the removal of doubts, it is hereby declared that any arrear of annuity deposit and any penalty imposed under this Chapter shall be recoverable in the manner provided in Chapter XVII-D for the recovery of arrears of tax.

Special provisions for authors, play- WTights artists, musicians and actors.

280U. Any individual, being an author, playwright, artist, musi- cian or actor, may, in addition to the amount of annuity deposit required to be made by him in respect of any assessment year, make a further deposit o£ an amount not exceeding twenty-five per cent, of his adjusted total income assessable for that assessment year, and if he does so, the further deposit made by him, shall, for the pur- poses of this Chapter, be included in the annuity deposit required to be made by him.

Special provisions relating to gratuity.

280V. Where the total income of a depositor assessable for any assessment year includes any gratuity chargeable under the head "Salaries", he may, in addition to the amount of annuity deposit required to be made by him in respect of that assessment year, make a further deposit of an amount not exceeding fifty per cent, of the amount of such gratuity, and if he does so, the further deposit made by him, shall, for the purposes of this Chapter, be included in the annuity deposit required to be made by him.

Annuity Deposit Scheme.

280W. (1) The Central Government shall, by notification in the Official Gazette, frame one or more scheme or schemes to be called Annuity Deposit Scheme or Schemes in relation to deposits under this Chapter,

(2) A scheme under sub-section (I) may provide for—

(a) the manner in which the annuity deposits shall be made;

(b) the manner in which, and intervals at which, annuities shall be paid; and the manner in which the excess or deficiency of annuity deposit may be adjusted or otherwise dealt with;

(c) the authority or authorities by or through whom such deposits may be collected or by whom annuities may be issued¹

(d) the documents to be issued to persons by whom depcr sits have been made as evidence of such deposits;

(e) the accounts to be maintained with respect to such deposits and annuities and the officers by whom such account)* shall be maintained;

(f) the nomination of any person to receive the annuity or any other sum due under this Chapter to any, depositor in the event of his death and the cancellation or change of such nomination;

(g) the issue of duplicate of any document issued as evi- dence of any such deposit in the event of losyor destruction of the original and the fee on the payment of which such dupli- cate may be issued; and

(h) any other matter which may be necessary or proper for the effective implementation of the scheme.

(3) The Central Government may, by notification in the Official Gazette, add to, amend, vary or rescind any scheme framed under this Chapter.

(4) Any scheme framed under this Chapter shall be laid, as soon as may be, after it is framed before each House of Parliament while it is in session for a total period of thirty days which may be com- prised in one session or in two successive sessions, and, if before the expiry of the session in which it is so laid or the session imme- diately following, both Houses agree in making any modification in any provision of the scheme or both Houses agree that any provision in the scheme should not be made, that provision of the scheme shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annul- ment shall be without prejudice to the validity of anything previously done under that provision.

280X. (I) Notwithstanding anything contained in this Chapter, Option In certain cases.

any depositor may, on or before the 30th day of June of the assess- ment year in which he first becomes liable to make an annuity de- posit, by notice in writing to the Income-tax Officer, declare (such declaration being final for that assessment year and all assessment years thereafter) that the provisions of this Chapter shall not apply +0 him and if he does so, the provisions of this Chapter [other than sub-section (2)] shall not apply to him for any assessment year in relation to which such option has effect:

Provided that in relation to the assessment year commencing on the 1st day of April, 1964, this sub-section shall have effect as if for the words, figures and letters "the 30th day of June", the words, figures and letters "the 30th day of September" were substituted:

Provided further that where any such depositor satisfies the Income-tax Officer that he was prevented by sufficient cause from making such declaration within the period allowed therefor, the Income-tax Officer may, with the previous approval of the Inspecting Assistant Commissioner, allow such depositor to make the declaration at any time after the expiry of the aforesaid period.

(2) If a person has exercised the option under sub-section (1), then the amount of income-tax (but not super-tax) payable by him in respect of any assessment year in relation to which such option has effect shall be increased by a sum equal to fifty per cent, of the amount by which the amount of annuity deposit which would have been otherwise required to be made in respect of that assessment year exceeds the difference between the tax payable by him on his total income and the tax that would have been payable had his total income been reduced by the amount of annuity deposit:

Provided that if such person is more than seventy years of age on the last day of the previous year relevant to the assessment year, he shall not be liable to pay the additional income-tax under this sub-section.'.

45. For section 287 of the Income-tax Act, the following section

shall be substituted, namely :—

Substitu- tion of new sec- tion for section 287.

Publica- tion of informa- tion res- pecting assess***.

"287. (1) If the Central Government is of opinion that it is necessary or expedient in the public interest to publish the names of any assessees and any other particulars relating to any proceedings under this Act in respect of such assessees, it may cause to be published such names and particulars in such manner as it thinks fit

(2) No publication under this section shall be made in relation to any penalty imposed, or any conviction for any offence connected with any proceedings, under this Act until the time for presenting an appeal to the Appellate Assistant Commissioner or to the first Appellate Court, as the case may be, has expired without an appeal having been presented or the appeal, if presented, has been disposed of.

Explanation.—In the case of a firm, company or other asso- ciation of persons, the names of the partners of the firm, directors, managing- agents, secretaries and treasurers, or managers of the company, or the members of the association, as the case may be, may also be published if, in the opinion of the Central Government, the circumstances of the case justify it.".

46. In section 293 of the Income-tax Act, after the words "lie aeainst". the words "the Government or" shall be inserted.

47. In section 295 of the Income-tax Act, in sub-section (2), after clause (d), the following clause shall be inserted, namely:—-

Amend- ment of section 293. Amend- ment of section 295.

" (dd) the extent to which, and the conditions subject to which, any expenditure referred to in sub-section (3) of section 37 may be allowed;".

48. In the Income-tax Act, the Fifth Schedule shall be omitted. Omission

of the Fifth Schedule 49. In the Estate Duty Act, 1953,—

Amend- ment of Act 34 Of 1953.

(a) in section 5A, the following amendments shall be made and shall be deemed to have been made with effect from the 23rd day of September, 1963, namely: —

(i) in sub-section (2), the word "Orissa," shall be omitted;

(ii) in sub-section (3), the words "in the State of Orissa and" shall be omitted;

(b) in section 33, in sub-section CO, after clause (m), the following clause shall be inserted, namely: —

" (n) one house or part thereof exclusively used by the deceased for his residence, to the extent the principal value thereof does not exceed rupees one lakh if such house Is situate in a place with a population exceeding ten thousand, and the full principal value thereof to any other case.":

(c) in section 34, in clause (a) of sub-section (l),for the brackets, letters and word " (I) and (m)", the brackets, letters and word "(I), (m) and (n)" shall be substituted;

(d) in section 50, the words "one-half of" shall be omitted;

(e) in section 78, after the words "lie against", the words "the Government or" shall be inserted;

(f) for section 80, the following sections shall be substituted,

namely: —

Disclosure of Informa- tion respecting assess- ments.

"80. Where a person makes an application to the Con- troller in the prescribed form for any information in respect of any assessment made under this Act, the Controller may, if he is satisfied that it is in the public interest so to do, furnish or cause to be furnished the information asked for in respect of that assessment only and his decision in this behalf shall be final and shall not be called In question in any court of law.

Publication of infor- mation respectinc accountable persons.

80A. (?) If the Central Government is oi opinion xnai n is necessary or expedient in the public interest to publish the names of any accountable persons and any other parti- culars relating to any proceedings under this Act in respect of such persons, it may cause to be published such names and particulars in such manner as it thinks fit.

(2) No publication under this section shall be made in relation to any penalty imposed under this Act until the time for presenting an appeal to the Appellate Controller has expired without an appeal having been presented or the appeal, if presented, has been disposed of.";

(g) in the Second Schedule, for Part I, the following Part

shall be substituted, namely: —

"PART I

In the case of any property which passes or is deemed to pass on

;he death of the deceased—

Rate of duty

(1) On the first Rs. 50,000 of the principal value

m

of the estate

(2) On the next Rs. 50,000 of the principal value

4%

of the estate

(3) -On the next Rs. 1,00,000 of the principal value

of the estate

(4) On the next Rs. 3,00,000 oi the principal value

of the estate

15%

(5) On the next Ks. 5,00,000 oi the principal value

oi the estate

25%

(6) On the next Rs. 5,00,000 of the principal value

of the estate

40%

(7) On the next Rs. 5,00,000 of the principal value

of the estate

50%

(8) On the balance of the principal value of the

estate

85%".

50. In the Wealth-tax Act, 1957,—

(a) in sections, in sub-section (1),. for clause (iv), the

Amend- ment of Act 27 of 1957.

following clause shall be substituted, namely: —

" (iv) one house or part of a house elonging to the assessee.exclusively used by him for residential purposes:

Provided that where the value of such house or part, situate in a place with a population exceeding ten thousand, exceeds one lakh of rupees, the amount that shall not be included in the net wealth of an assessee under this section snail be one lakh of rupees.'";

(fa) section 42 shall be omitted;

(c) lor sections 42A and 42B, the following sections shall be substituted, namely: —

Publica- tion of in- formation respecting assessees.

"42A. (1) If the Central Government is of opinion that it is necessary or expedient in the public interest to publish the names of any assesseea and any other particulars relating to any proceedings under this Act in respect of such assessees, it may cause to be published such names and particulars in such manner as it thinks fit.

(2) No publication under this section shall be made in relation to any penalty imposed, or any conviction for any offence connected with any proceedings, under this Act until the time for presenting an appeal to the Appellate Assistant Commissioner or to the first Appellate Court, as the case may be, has expired without an appeal having been presented or the appeal, if presented, has been disposed of.

Disci osuie of infor- mation res- pecting assessees

42B. Where a person makes an application to the Commis- sioner in the prescribed form ior any mlormation relating to any assessee in respect of any assessment made under this Act, the Commissioner may, it he is satisfied that it is in the public interest so to do, furnish or cause to be furnished the information asked for in respect of that assessment only and his- decision in this behalf shall be final and shall not be called in question in any court of law.";

(d) m section 43, after the words "lie against", the words "the Government or" shall be inserted;

(e) in the Schedule, for Part I, the iollowing Part shall be substituted, namely:—

"PART I

(a) In the case of every individual: —

Rate of tax

                       (i)  on  the  first  rupees  one  lakh  of  net  wealth      Nil
                      (ii)  on the next  rupees four  lakhs of net wealth           0-5%
                      (iii)  on the  next  rupees five  lakhs  of  net  wealth      1-0%
                      (iv)  on  the  next  rupees  ten  lakhs  of  net  wealth      2-0%
                      (v)  on  the  balance  of  net  wealth                        2-5%
                  (b)  In  the  case of  every  Hindu  undivided  family:-
                      (i)  on  the  first  rupees  two  lakhs  of  net  wealth      Nil
                      (ii)  on  the  next  rupees  three  lakhs  of  net  wealth    0-5%
                     (Iii)  on  the  next  rupees  five  lakhs  of  net  wealth     1-0%
                     (iv)  on the  next  rupees  ten  lakhs  of  net  wealth        2-0%
                      (v)  on the  balance  of  net  wealth                         2-5%".
ft.rnend-       51.  In  the  Expenditure-tax  Act, 1957,—
ment  of.
Art  29  of
1957.                 (i)  in  section  3,  m  sub-section  (1),  the  proviso  and  the  Ex-
                 planation  shall  bt  omitted;

(ii) in section 5,—

(1) for clause (

tuted, namely: —

" (g) any expenditure incurred by the assessce in thp purchase of books;";

(2) to clause 0 ), the following proviso shall be added, namely: —

18 of 1958

"Provided that the assessee ic either chargeable to gift-tax under the Gift-tax Act, 1958 in respect of such gift, donation or settlement, as 1he case may be, or has deposited to the credit of the Central Government before the completion of his assessment for the relevant assess- ment year under this Act, a sum of four per cent, of the moneys or the value of the property comprised in such gift or donation or settlement, as the case may bo, by WHY of payment of expenditure-tax for the relevant assess- ment ye-^r, such pavmont being in addition to the amount of pxppnditure-tax with which !ie 1⁵ otherwise chargeable under the provisions of this Act;";

(3) clauses (1) and (n) shall bo omitted:

(Hi) in section 6—

(a) in sub-section (T) —

(1) clause (c) shall be omitted;

(2) for clause (d), the following clause shall be "nbstituted, namely: —

" (rf) four-fifths of any expenditure incurred bv wav of capital expenditure on the purchase of bullion, precious stones, ieweliery, motor-cars and other conveyances for the uer^onal uso nf the assessee or any of his dependants¹

Provided that where a deduction ^s aforesaid is made, onr-fifth of the said emital expenditure ^hali be deemed to be incurred by the assessee in each of the four years succeeding the previous year in which the expenditure was incurred rmd no deduction shall be made under this clius° in the assessment for any succeeding year in respect of expenditure so deemed to have been incurred in any earlier vear;";

81 G of I Ex.—6.

(3) claiues (el, (j"), (q) and (h) '•hall be omitted;

(4) in clause (<), the words, brackets and letters "to the extent to which such expenditure i:? not admissible under clause (c) or clause (e) or clause (f) or clause (g)," shall be omitted;

(5) clausp (j) phall b"> omitted'

(b) sub-section (2) and sub-section (3) ; Vill be omitted;

(?") section 38 shall be omitted:

(v) for sections 38A and 38B, the following sections shall be substituted, namely: —

Publication of infor- mation respecting

"38A. (1) If the Central Government is of opinion that it is necessary or exppdipnl in the public interest to publish the names of any assessees and anv othPr particulars relating to any proceedings undpr this Act m resueel of such asfessees, it may cause to be published such names and particulars in such manner as it thinks fit,

(2) No publicaMon under this section shall be made in relation to any penalty imposed, or any conviction for any offence connected with any proceedings, under this Act until the time for presenting an appeal to the Appellate Assistant Commissioner or to the first Appellate Court, as the case may be, has expired without an appeal having been presented or the appeal, if presented, has been disposed of.

Disclosure of infor- mation ahsessees

38E. Where a person makes an application to the Com- missioner in the proscribed form for nny inform ^ti'm relating to any assessep in respect of any assessment made under this Act, the Commissioner rmv, if he is satisfied that it is in the public interest so to do, furnish or cause t^ be furnished the Information apked for in respect of that assessment only and his decision in this behalf shall be final and shall not be called in quesiion in anv court of law";

(?>?) in section 39. eft^r lhr> words "lie against", the words 'the Government or" sh-all h? inserted;

(1)  On the first  Rs. 25,000 of  total income   ..      ..      Nil
(2)  On the next Rs. 25,000 of total income     ..       ..      6%
(3)  On the next  Rs. 50,000 of total income    ..       ..      8%
(4)  On the  balance  of  total  income         ..       ..     12%.

 (1)  On  the  first  Rs. 20,000  of  total  income    ..      ..      Nil
(2)  On  the  next  Rs. 5,000 of  total  income        ..      ..     10%
(3)  On  the  next  Rs. 5,000 of  total  income        ..      ..     15%
(4)  On  the  next  Rs.  20,000 of  total  income      ..      ..     30%
(5)  On  the  next  Rs.  20,000  of  total  income     ..      ..    45%
(6)  On  the  balance  of  total  income               ..      ..    50%.