REGISTERED No. D. 221 रजिस्ट्री सं ० डी ० 221
भारत को राजपत्रा The Gazette of India
प्रसाधारण
EXTRAORDINARY
1
PART II - Section 1
प्राधिकार में प्रकाशित
PUBLISHED BY AUTHORITY
सं० 31 ] नई विरुत्ली, बृहस्पतिवार , सितम्बर 14, 1967/ भाव्रा 23, 1889 31 ] NEW DELHI , THURSDAY , SEPTEMBER 14 , 1967 / BHADRA 23 , 1889 No
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इस भाग में भिन्न पष्ठ संख्या ही जाती है जिसमे कि यह अलग संकलन के रूप में रखा जा सके Separate paging is given to this Part in order that it may be filed as a separate con pilaton .
MINISTRY OF LAW
( Legislative Department )
New Delhi , the 4th September , 1967 / Bhadra 23 , 1889 ( Saka )
THE TAXATION LAWS ( AMENDMENT ) ORDINANCE ,
1967
No. 5 OF 1967
Promulgated by the President in the Eighteenth Year of the Republic of India .
An Ordinance further to amend the Wealth- tax Act , 1957 , the Gift- tax Act , 1958 , and the Income - tax Act , 1961 , and to amend the Finance ( No 2 ) Act, 1967.
WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action ;
NOW , THEREFORE , in excrcise of the powers conferred by clause (1) of article 123 of the Constitution , the President is pleased to promulgate the following Ordinance : -
1. ( 1 ) This Ordinance may be called the Taxation Laws Short title (Amendment ) Ordinance , 1967 . and com- mence-
ment,
(275) THE GAZETTE OF INDIA EXTRAORDINARY [ PART II 276
(2 ) Section 5 shall come into force at once and the remaining provisions of this Ordinance shall come into force on the 1st day ofOctober , 1967 .
2. In the Wealth - tax Act , 1957 , in sections 31 and 34A , for the words " six per cent . " , the words " nine per cent . " shall be substituted.
Amend- ment Act 27 ofof 1957 .
3. In the Gift- tax Act , 1958 , in sections 32 and 33A , for the words " six per cent . " , the words " nine per cent . " shall be substituted .
Amend- ment of Act18 of 1958 .
4. In the Income- tax Act , 1961 , --
Amend- ment of Act 43 of 1961,
(i) n section 37 , after sub - section ( 2 ) , the following sub- section shall be inserted , namely: -
" ( 2A ) Notwithstanding anything contained in sub- section ( 1 ) or sub - section ( 2 ) , no allowance shall be made in respect of so much of the expenditure in the nature of entertainment expenditure incurred by any assessee during any previous year which expires after the 30th day of September , 1967 , as is in excess of the aggregate amount computed as hereunder : -
at the rate ol + per cent. or Rs . 5,000 , whichever is higher;
(i ) on the first Rs . 10,00,000 of the profits and gains of the business or profession ( computed before mak- ing any allowance under section 33 or section 33A or in respect of entertainment expenditure )
at the rate of + per cent.;
( ii ) on the next Rs . 40,00,000 of the profits and gains of the business or profession ( computed in the manner aforesaid )
at the rate of per cent .;
( iii ) on the next Rs . 1,20,00,000 of the profits and gains of the business or profession ( computed in the manner aforesaid)
nil :
( ir ) on the balance of the profits and gains of the business or profession (computed in the manner afore- said) THE GAZETTE OF INDIA EXTRAORDINARY
277 SEC . 11
=
Provided that where the previous year of any assessee falls partly before and partly after the 30th day of September, 1967 , the allowance in respect of such expenditure incurred during the previous year shall not exceed -
( a ) in the case of a company-
( i) in respect of such expenditure incurred before the 1st day of October , 1967 , the sum which bears to the aggregate amount computed at the rate or rates specified in sub - section ( 2 ) , the same propor- tion as the number of days comprised in the period commencing on the first day of such previous year and ending with the 30th day of September , 1967 , bears to the total number of days in the previous year ;
( ii ) in respect of such expenditure incurred after the 30th day of September , 1967 , the sum which bears to the aggregate amount computed at the rate or rates specified in this sub - section , the same propor- tion as the number of days comprised in the period commencing on the 1st day of October , 1967 , and ending with the last day of the previous year bears to the total number of days in the previous year ;
(b ) in any other case-
( i ) in respect of such expenditure incurred before the 1st day of October , 1967 , the amount admissible under sub - section ( 1 ) ;
(ii ) in respect of such expenditure incurred after the 30th day of September , 1967 , the sum which bears to the aggregate amount computed at the rate or rates specified in this sub- section , the same pro- portion as the number of days comprised in the period commencing on the 1st day of October , 1967 , and ending with the last day of the previous year bears to the total number of days in the previous year." ;
( ii) in sections 132A, 139 , 201, 213 to 217 , 220 , 243 and 244 , for the words " six per cent . " , the words " nine per cent . " shall be substituted;
( iii ) in section 280X, - -
(a) in sub - section ( 1 ) , clause ( b ) of the proviso shall be omitted;
THE GAZETTE OF INDIA EXTRAORDINARY [ PART II 278
(b ) for the Explanation , the following Explanation shall be substituted , namely : -
'Explanation .-- ( i ) In this section , the expression " annuity deposit required to be made " shall mean the amount of annuity deposit calculated on the adjusted total income of the depositor at the rate or rates specified in the Finance Act of the relevant year , but where ane amount so calculated exceeds the amount computed in the manner specified in clause ( ii ) of this Explanation (the amount so computed being hereinafter referred to داء the specified amount ) , then , the annuity deposit required to be made shall mean the specified amount .
( ii ) The specified amount referred to in clause ( i ) of this Explanation shall be-
(a) in a case where the total income ( as com- puted without making any allowance under section 2800 ) exceeds fifteen thousand rupees but does not excecd twenty thousand rupees , an amount equal to one per cent . of the adjusted total income of the depositor;
( b) in a case where the total income (computed in the manner aforesaid ) exceeds twenty thousand rupces but does not exceed twenty - five thousand rupees , an amount equal to-
(1) the aggregate of the sum calculated at one per cent . on so much of the adjusted total income as does not exceed twenty thousand rupees and the sum by which the total income (computed in the manner aforesaid ) exceeds twenty thousand rupees , or
(2) one and a half per cent . of the adjusted total income of the depositor , whichever is less ;
(c) in a case where the total income ( computed in the manner aforesaid ) exceeds twenty - five thousand rupees , an amount equal to the aggregate of the sum calculated at one and a half per cent , on so much of the adjusted total income as does not exceed twenty - five thousand rupees and the sum by which the total income (computed in the manner aforesaid ) exceeds twenty - five thousand rupees .' .
SEC . 1 ]
THE GAZETTE OF INDIA EXTRAORDINARY
279
5. In the Finance ( No. 2 ) Act , 1967 , --
Amend- ment of Act 20 of 1967 .
( i ) in section 3. for sub- section ( 1 ) , the following sub- section shall be , and shall be deemed always to have been , substituted , namely : -
" ( 1 ) Save as otherwise provided in Chapter XXIIA of the Income - tax Act , annuity deposit shall be made by every person to whon the provisions of that Chapter appiy-
(a) for the assessment year commencing on the 1st day of April , 1967 , at the rate or rates specified in Part I of the Second Schedule ; and
(b ) during the financial year commencing on the 1st day of April , 1967 ( in relation to the adjusted total income of the previous year relevant to the assessment ycar commencing on the 1st day of April , 1968 ) , at the rate or rates specified in Part II of the Second Schedule ." ;
( ii ) for the Second Schedule , the following Schedule shall be , and shall be deemed always to have been , substituted , namely: -
'THE SECOND SCHEDULE
(Sce section 3 )
PART I
RATUS OF ANNUITY DEPOSIT FOR THE ASSESSMENT YEAR 1967-68
Nil .
( i ) In the case of any depositor whose total income does not exceed Rs . 15,000
5 per cent . of the adjusted total income :
( ii ) In the case of any depositor whose total income exceeds Rs . 15,000 but does not exceed Rs . 20,000
exceeds Rs . 15,000 . Provided that the annuity deposit to be made shall in no case exceed half the amount by which the total income
( vii ) In the case of a depositor whose total income exceeds Rs . 20,000 but does not exceed Rs . 40,000
7 per cent . of the adjusted total income :
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums , namely :-
( a ) an amount calculated at five per cent . on so much of the adjusted total income as does not exceed Rs . 20,000 ;
280
[ PART II
THE GAZETTE OF INDIA EXTRAORDINARY
( b ) one - half of the amount by which the total income ex- ceeds Rs 20,000 .
( w ) In the case of a depositor whose total income exceeds Rs . 40,000 but does not exceed Rs . 70,000
10 per cent . of the adjusted total income :
I rovided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums , namely :-
( a) an amount calculated at seven and a half per cent , on so much of the adjusted total income as does not exceed Rs . 40,000 ;
(b ) one - half of the amount by which the total income exceeds Rs 40,000 .
( v ) In the case of a depositor whose total income exceeds Rs . 70,000
122 per cent . of the adjusted
total income :
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums , namely : -
( a ) ar amount calculated at ten per cent , on so much of the adjusted total income as does not exceed Rs . 70,000 ;
( b ) one - hall of the amount by which the total income ex- ceeds Rs . 70,000 .
PART II
RATES OF ANNUITY DEPOSIT TO BE MADE DURING THE FINANCIAL YEAR
1967-68
Nil .
( 1 ) In the case of any depositor whose total income does not exceed Rs . 15,000
6 per cent . of the adjusted
total income :
( ii ) In the case of any depositor whose total income exceeds Rs . 15,000 but does not exceed Rs . 20,000 .
Provided that the annuity deposit to be made shall in no case exceed half the amount by which the total income exceeds Rs . 15,000.
9 per cent . of the adjusted total income :
( iii ) In the case of a depositor whose total income exceeds Rs . 20,000 but does not exceed Rs . 40,000 .
THE GAZETTE OF INDIA EXTRAORDINARY
281 SEC . 1 ]
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums , namely : -
(a ) an amount calculated at six per cent , on so much of the adjusted total income as does not exceed Rs . 20,000 ;
(b ) one half of the amount by which the total income ex- ceeds Rs . 20,000 .
( iv ) In the case of a depositor whose total income exceeds Rs . 40,000 but does
12 per cent , of the adjusted total income .
not exceed Rs . 70,000
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums , namely :-
( a) an amount calculated at nine per cent . on so much of the adjusted total income as does not exceed Rs . 40,000 ;
(b ) one -half of the amount by which the total income ex- ceeds Rs . 40,000 .
( 2) In the case of a depositor whose total income exceeds Rs . 70,000
15 per cent , of the adjusted
income :
total
Provided that the annuity deposit to be made shall in no case exceed the aggregate of the following sums , namely --
( a) an amount calculated at twelve per cent . on so much of the adjusted total income as does not exceed Rs 70,000 ;
(b ) one - half of the amount by which the total income ex- ceeds Rs . 70,000 .
Explanation --In this Schedule , " totul income " means total income computed in the manner laid down in the Income - tax Act without making any allowance under section 2800 of that Act . ' .
ZAKIR HUSAIN ,
President .
S. P. SEN - VARMA , Secy . to the Govt of India .
PRINTED IN INDIA BY THE GENERAL MANAGER , GOVERNMENT OF INDIA PRESS , MINTO ROAD , NEW DELHI AND PUBLISIIED BY TILE MANAGER OF PUBLICATIONS ,
DELHI , 1967 .