Subject NOT available

click here for IIIF manifest

REGISTERED No. D 221

The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No. 19] NEW DELHI, TUESDAY, MAY 13. 1969 VAISAKHA 23, 1891

Separate pairing is given to this part in order that it may be filed

as a separate compilation

MINISTRY OF LAW (Legislative Department) New Delhi, the 13th May, 1969/Vaisakha 23, 1891 (Saka.)

The following Act of Parliament received the assent of the Vice- President acting as President on the 13th May, 1969, and is hereby published for general information: —

THE FINANCE ACT, 1969 No. 74 OF 1966

[13th May, 1969]

An Act to give effect to the financial proposals of the Central Gov- ernment for the financial year 1969-70.

BE it enacted by Parliament in the Twentieth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Finance Act, 1969.

(2) Save as otherwise provided in this Act, sections 2 to 25 shall be deemed to have come into force on the 1st day of April, 1969.

Short

title

and com-

mence-

ment.

CHAPTER II

RATES OF INCOME-TAX

Income-

tax.

2. (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 1969, 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 D of that Part apply, shall be increased by a surcharge for purposes of the Union and in the

(85)

cases to which Paragraph C applies, also by a special surcharge for pur- poses of the Union, calculated in each case in the manner provided therein.

31 of 1053.

(Z) In making any assessment for the assessment year commencing on the 1st day of April, 1969, 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 income-tax payable by it shall be the aggregate of the income-tax calculated—

(t) on the amount of profits and gains from life insurance busi- ness so included, at the rate applicable in the case of the Life In- surance Corporation of India, in accordance with Paragraph E of Part I of the First Schedule, to that part of its total income which consists of profits and gains from life insurance business; and

(ii) on the remaining part of its total income, at the rate appli-

cable to the company on its total income.

43 of 1061.

(3) In cases to which Chapter XII of the Income-tax Act, 1961 (here- inafter referred to as 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. -

(4) In cases in which tax has to be deducted under sections 193, 194, 194A and 195 of the Income-tax Act at the rates in force, the deduction shall be made at the rates specified In Part II of the First Schedule.

(5) In cases In which income-tax has to be calculated under the first

proviso to sub-section (5) of section 132 of the Income-tax Act or charg- ed under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or aub-section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head "Salaries" or deducted under sub-section (9) of section 80E of the said Act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the rate or rates specified in Part III of the First Schedule.

(6) For the purposes of this section and the First Schedule,—

(a) "company in which the public are substantially interested" means a company which is such a company as is referred to in section 108 of the Income-tax Act;

(b) "domestic company" means an Indian company, or any other company which, in respect of its income liable to income-tax under the Income-tax Act for the assessment year commencing on the 1st day of April, 1969, has made the prescribed arrangements for the declaration and payment within India of the dividends (includ- ing dividends on preference shares) payable out of such income In accordance with the provisions of section 194 of that Act;

(e) "industrial company" means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the nianufacture or processing of goods or in mining.

SxplanatioTu~-ToT the purposes of this clause, a company shall be deemed to be mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of good* or in mining, if the income attributable to any one or more of th" aforesaiti activities included in its total income of the previous year (as computed before making any deduction under Chapter VIA of the Income-tax Act) is not less than fifty-one per cent, of such total income;

(d) "tax free security" means any security of the Central Gov- ernment issued or declared to be income-tax free, or any security of a State Government issued income-tax free, the income-tax whereon is payable by the State Government;

(e) all other words and expressions used in this section and th£ First Schedule but not defined in this sub-section and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act,

CHAPTER III

INCOME-TAX

Amend ment of section ?,.

3. In section 2 of the Income-tax Act, in clause (18), for sub-clause (b), the following sub-clause shall be substituted with effect from the 1st day of April, 1970, namely:—

1 Of 1956.

'(b) if it is a company which is not a private company as defined in the Companies Act, 1956, and the conditions specified tnthor in item (A) or in item (B) are fulfilled, namely: —

(A) shares in the company (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) were, as on the last day of the relevant previous year, listed in a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956, and any rule? made thereunder;

(B) (i) shares in the company (not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits) carrying not less than fifty per cent, of the voting power have been allotted unconditionally to, cr acquired unconditionally by, and were throughout the relevant previous year beneficially held by—

(a) the Government, or

(b) a corporation established by a Central, State or Pro- vincial Act, or

(c) any company to which this clause applies or any subsidiary company of such company where such subsidiary company fulfils the conditions laid down in clause (b) of section 108 (hereafter in this clausfi referred to as the subsidiary company), or

(d) the public (not being a director, or a company to which this clause does not apply);

(it) the said shares were, during the relevant previous year, freely transferable by the holder to the other members of the public; and

(iti) the affairs of the company, or the shares carrying more than fifty per cent, of its total voting power were at no time, during the relevant previous year, controlled or held by five or less persons.

Explanation 1.—In computing the number of five or less per- sons aforesaid,—

(i) the Government or any corporation established by a Central, State or Provincial Act or a company to which this clause applies or the subsidiary company of such company shall not be taken into account, and

(ii) persons who are relatives of one another, and per- sons who are nominees of any other person together with that other person, shall be treated as a single person,

Eocplanation 2.—In its application to an Indian company whose business consists mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, item (B) shall have effect as if for the words "not less than fifty per cent." and "more than fifty per cent.", the words "not lest, than forty per cent." and "more than sixty per cent" had, respectively, been substituted;'.

4. In section 16 of the Income-tax Act, in clause (iu), lor item (1), the following item shall be substituted with effect from the 1st day of April, 1970, namely: —

Amend- ment ol tedi or. 11

"(1) where the conveyance is a motor car and the amount of the salary due to the assessee in respect of the previous year—

(a) does not exceed Rs. 25,000 Rs. 200;

(b) exceeds Rs. 25,000 Rs. 250;".

• T. In s e c t i on 4 0A of t he I n c o m e - t ax A c t, a f t er s u b - s e c t i on ( 3 ), t he f o l-

l o w i ng s u b - s e c t i on s h a ll be i n s e r t e d, n a m e l y: —

Amend- ment of section •OA.

"(4) Notwithstanding anything contained in any other law for the time being in force or in any contract, where any payment In respect of any expenditure has to be made by a crossed cheque drawn on a bank or by a crossed bank draft in order that such ex- penditure may not be disallowed as a deduction under sub-section (3), then the payment may be made by such cheque or draft; and where the payment is so made or tendered, no person shall be allow- ed to raise, in any suit or other proceeding, a plea based on the ground that the payment was not made or tendered in cash or in any other manner".

*i hi section 80C of the Income-tax Act,-

(a) in sub-section (2),—

Amend- ment of "ection "OC.

(i) in clause (a), for the words "on the life of the wife or husband of the assessee", wherever they occur, the words "on the life of the wife or husband or any child of the assessee" shall be substituted with effect from the 1st day -if April, 1970;

(it) in clause (b), for the words "on the liie of any male member of the family or of the wife of any such member", the words "on the life of any member of the family" shall be subs- tituted with effect from the 1st day of April, 1970;

(in) in the Explanation at the end of clause (b), in clause ('"), the brackets and words "(being the assessee, or a male member of a Hindu undivided family where such family is the assessee) ' shall be omitted with effect from the 1st day of April. 1970;

(b) in sub-section (4),—

(0 in clause (i). the proviso shall be omitted;

(u) in clause (u), the brackets, words and letter "[including ;m author, playwright, artist, musician or actor, to whom the provisions of clause (i) do not apply]," shall be omitted.

7 In section 30.1 of the Income-tax Act,—

(a) in sub-section (4), in clause (Hi), for the words "twenty-

three yeurs", the words "twenty-eight years" shall be substituted;

Amend- ment o( section ROJ.

(b) in sub-section (5), in clause (Hi), for the words "twenty-

ihrte years", the words "twenty-eight years" shall be substituted.

8. In section SOL of the Income-tax Act, in sub-section (2), for the Amend- ment of section 30L.

words "five hundred rupees", wherever they occur, the words "one thou- sand rupees" shall he substituted with effect from the 1st day of April, i .lJ70.

9. After section BOM of the Income-tax Act, the following section

shall be Inserted with effect from the 1st day of April, 1970, namely: —

Insertion of new section 80MM '80MM. (i) Where the gross total income of an asseBsee being an Indian company includes any income by way of royalty, commis- sion, fees or any other payment (not being income chargeable under the head "Capital gains") received by it from any person carrying on a business in India in consideration for—

Deduc- tion iii the case of an Indian uompany ui res- pect o' royaltii'? etc., re ceived from any can cem in InrliM (i) the provision of technical know-how which is likely to assist in the manufacture or processing of goods or materials, or in the installation or erection of machinery or plant for such manufacture or processing, or in the working of a mine, oi] well or other source of mineral deposits, or in the search for, or dis- covery or testing of, mineral deposits or the winning of access to them, or in carrying out any operation relating to agriculture, animal husbandry, dairy or poultry farming, forestry or flshinjr. or

(ii) rendering services in connection with the provision nf

such technical know-how,

under an agreement entered into by the assessee with such per- son on or after the 1st day of April, 1969 and for which approval o/ the Central Government in this behalf Is applied for before the 1st day oi October of the relevant assessment year, there shall be allowed a deduction from such income of an amount equal to forty per rent thereof, in computing the total income of the asseasee

(2) For the purposes of this section "provision of technical

know-how" means,-—

(i) the transfer of all or any rights (including the granting of a licence) in respect of a patent, invention, model, design, secret formula or process or similar property;

(ii) the imparting of any information concerning the work- ing of, or the use of, a patent, invention, models design, secret formula or process or similar property;

(Hi) the use of any patent, invention, model, design, secret

formula or process or similar property;

(iv) the imparting of any information concerning industrial,

commercial or scientific knowledge, experience or skill.

(3) The provisions of sub-section (1) shall not apply in relation to any income in respect of which the assesses is entitled to the deduc- tion specified in section 80O.'.

10. In section 80P of the Income-tax Act,—

Amend- ment of sectiwi EOT,

(a) in sub-section (2), in clause (c), for the words "fifteen thou- sand rupees", the words "twenty thousand rupees" shall be substitut- ed with effect from the 1st day of April, 1970;

(b) sub-section (4) shall be omitted with effect from the 1st day

of April, 1970.

11. Alter section 80R of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 1970, namely: - . Ineertion of new •= ection fi'ORR.

7 '}f 194" Deduc- tion in respect of pro- fessional income Jrrom foreign sources in. cer- tain

CRBC'fl.

"8QRR. Where the gross total income of an individual resident in India, being an author, playwright, artist, musician or actor, includes any income derived by him in the exercise of his profession from the Government of a foreign State or any person not resident in India, and such income is received in, or brought into, India by him or on his behalf in accordance with the Foreign Exchange Regulation Act, 1947, and any rules made thereunder, there shall be allowed a deduc- tion from such income of an amount equal to twenty-five per cent of the income so received or brought, in computing the total inenpv of the individual.".

12. For section 208 of the Income-tax Act. the following section shall

be substituted, namely: —

"208. (?) Advance tax shall bo payable during the financial Substitu- tion of rjew sec- tion for iection m Condi-

year—

iion of liability

io pay advance

(n) where the total income, exclusive of capital gains, of the assessee, referred to in sub-clause (i) of clause (a) of sec- tion 209, exceeds the amount specified in sub-section (2), or

(b) where It is payable by virtue of the provisions of sub-

section (3) of section 212.

(2) The amount referred to in clause (a) of sub-section (i) shall be—

(a) in the case of a company or a local authority .. Rs. 2,500;

(b) Jn the case ox a registered firm .. .. its. iU.UOO;

(c) in the case of a person other then a company, a local authority or a registered firm,—

(i) where such person was not resident in India during the previous year reierred to in sub-clause (i) oi clause (.a) of section 209 or such person being a person referred to in sub-section (3) of section 212 is not likely to be resident in India during the previous year relevant to the assessment year next following the financial year in which the advance tax is payable Hs. 5,000;

(ii) in any other case .. .. .. Rs. 10,000.".

13. in section 209 of the Income-tax Act,— Amend-

(a) in clause (a), in sub-clause (m), for the words "on any m e nt ot income, included in the said total income", the words ami brackets OQI °n "on any income (as computed before allowing any deductions admissible under this Act) on which tax is required to be deducted under the said sections and which has been taken into account in computing the said total income" shall be substituted;

(b) in clause (c), alter the word, brackets and figure "sub- section (3)", the worlds, brackets, figure and letter "or sub-sec- tion (3A)" shall be inserted.

14. In section 210 of the income-tax Act, in sub-section (3), for the Amend- words, figures and letters "before the 15th day of February of the financial m e nt ot rear", the words, brackets and figures "at any time before the date which ^ ^t l on ts fifteen days prior to the date on which the last instalment oil advance Lax is payable by the assessee under sub-section (1) of section 211" shall be substituted.

,15. In section 211 of the Income-tax Act,— Amend-

(a) for sub-section (1), the following sub-section shall be section .substituted, namely:—

2n.

(I) Subject to the provisions of this section and of section .212, advance tax shall be payable in three equal instalments on

the following dates during the financial year, namely: —

(i) the 15th day of June, the 15th day of September and the 15th day of December, in the case of an assessee whose total income to the extent of 75 per cent, thereof or more is derived from a source or sources for which the previous year (relevant to the assessment year next following the financial year aforesaid) ends on or before the 31st day of December;

(ii) the 15th day of September, the 15th day of Decem- ber and the 15th day of March, in any other case:

Provided that in respect of any class of assessees referred to in clause (i), the Board may, having regard to the nature of dealings in the business carried on by such assessees, the

method of accounting followed by them and other relevant factors, authorise, by notification, in the Official Gazette and subject to such conditions as may be specified therein, the payment of the last instalment of the advance tax on the 15th day of March during the financial year, instead of on the 15th day of December.

Explanation.—In this sub-section, "total income" means,—

(a) in a case where advance tax is paid by the assessete in accordance with an order of the Income-tax Officer under section 210, the total income with reference to which the advance tax payable has been calculated in such order;

(6) in a case where the advance tax is paid in accor- dance with an estimate made by the assessee under section 212, the total income with reference to which the advance tax is so estimated,

as reduced, in either case, by the capital gains, if any, includ- ed therein.'; (fa) in sub-section (2), for the figures, letters and words "1st day of March" and "1st day of December", the figures, letters and words "15th day of March" and "15th day of December" shall, respectively, be substituted.

l(i. In section 212 of the Income-tax Act,—

(a) for sub-section (1), the following sub-section shall be substituted, namely; —

Amend- ment of section 212.

" (I) If any assessee who is required to pay advance tax by an order under section 210 estimates at any time before the last instalment of advance tax is due in his case that, by reason of his total income (exclusive of capital gains, if any) of the period which would be the previous year for the immediately following assessment year (such total income being, hereafter in this sec- tion, referred to as current income) being likely to be less than the income on which the advance tax payable by him under section 210 has been computed or for any other reason, the advance tax payable by him would be less than the amount which he is so required to pay, he may, at his option, send to the Income-tax Officer an estimate of—

(i) the current income, and

(ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209, and shall pay such amount of advance tax as accords with his estimate in equal instalments on such of the dates applicable in his case under section 211 as have not expired, or in one sum if only the last of such dates has not expired."; (b) for sub-section (3), the following sub-sections shall be substituted, namely:—

11 of 1922.

"(3) Any person who has not previously been assessed by way of regular assessment under this Act or under the Indian income-tax Act, 1922, shall, in each financial year, before the date on which the last instalment of advance tax is due in his case under sub-section (J) of section 211, if his current income

is likely to exceed the amount specified in sub-section (2) of section 208, send to the Income-tax Officer an estimate of—,

(1) the current income, and

(ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209,

and shall pay such amount of advance tax as accords with his estimate on such of the dates applicable in his case under section 211 as have not expired, by instalments which may be revised according to sub-section (2).

(3A) In the case of any assessee who is required to pay advance tax by an order under section 210, if, by reason of the current income being Hkely to be greater than the income on which the advance tax payable by him under section 210 has been computed or for any other reason, the amount of advance tax computed in the manner laid down in section 209 on the cur- rent income (which shall be estimated by the assessee) exceeds the amount of advance tax demanded from him under section 210 by more than 33-113 per cent, of the latter amount, be shall, at any time before the date on which the last instalment of ad- vance tax is due from him, send to the Income-tax Officer an estimate of—

({) the current income, and (ii) the advance tax payable by him on the current income calculated in the manner laid down in section 209,

and shall pay such amount of advance tax as accords with his estimate on such of the dates applicable in his case under section 211 as have not expired, by instalments which may be revised according to sub-section (2).".

17. In section 213 of the Income-tax Act, the word "quarterly" shall be omitted.

Amend- ment of section 213.

18. In section 215 of the Income-tax Act,—

(a) for sub-section (1), the following sub-section shall be sub.

stituted with effect from the 1st day of April, 1970, namely: —

Amend, ment ol section 310.

"(1) Where, in any financial year, an assessee has paid advance tax under section 212 on the basis of his own estimate, and the advance tax so paid is less than seventy-five per cent, of the assessed tax, simple interest at the rate of nine per cent, per annum from the 1st day of April next following the said financial year up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax so paid falls short of the assessed tax.";

(b) in sub-section (2), in clause (ii), for the words "the said seventy-five per cent.", the words "the assessed tax" shall be substi- tuted with effect from the 1st day of April, 1970;

(c) after sub-section (4), the following sub-section shall be

inserted with effect from the 1st day of April, 1970, namely: —

'(5) In this section and sections 217 and 273, "assessed tax" means the tax determined on the basis of the regular assessment (reduced by the amount of tax deductible in accordance with the provisions of sections 192 to 194, section 194A nnd section

195) so far as such tax relates to income subject to advance tax and so far "s it is not due to variations in the rates of. tax made by the Finance Act enacted for the year for which the regular assessment is made.'.

Amend- ment of section

19. In section 216 of the Income-tax Act, for clause (a), the following clause shall be substituted with effect from the 1st day of April, 1970> namely: —

21*.

"(a) under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (3A) of section 212 under-estimated the advance tax payable by him and thereby reduced the amount payable in either of the first two instalments; or".

20. In section 217 of the Income-tax Act, for sub-section (1), the fol-

lowing sub-sections shall be substituted with effect from the 1st day of April, 1970, namely: —

Amend- ment of section 217.

"(1) Where, on making the regular assessment, the Income-tax Officer finds that any such person as is referred to in sub-section (3) of section 212 has not sent the estimate referred to therein, simple interest at the rate of nine per cent, per annum from the 1st day of April next following the financial year in which the advance tax Was payable in accordance with the said sub-section up to the date of the regular assessment shall be payable by the assessee upon the amount equal to the assessed tax as defined in sub-section (5) of section 215.

(1A) Where, on making the regular assessment, the Income-tax Officer finds that any such person as is referred to in sub-section (3A) of section 21.2 has not sent the estimate referred to therein, simple interest at the rate of nine per cent, per annum from the 1st day of April next following the financial year in which the advance tax was payable in accordance with the said sub-section up to the date of the regular assessment shall be payable by the assessee upon the amount by which the advance tax paid by him falls short of the assessed tax as defined in sub-section (5) of section 215.".

21. In section 218 of the Income-tax Act, in sub-section (2), after the word, brackets and figure "sub-section (3)", the words, brackets, figure find letter "or sub-section (3A)" shall be inserted,

22. For section 273 of the Income-tax Act, the following section shall

be substituted with effect from the 1st day of April, 1970, namely: —

Amend- ment of section 218,. Substitu- tion of new sec- tion for section 273.

"273. If the Income-tax Officer, in the course of any proceedings in connection with the regular assessment for the assessment year commencing on the 1st day of April, 1970 or any subsequent assess- ment year, is satisfied that any assessee—

Falsa estimate of, or failure to pay, advance ta*.

(a) has furnished under section 212 an estimate of the advance tax payable by him which he knew or had reason to believe to be untrue, or

(b) has without reasonable cause failed to furnish RH esti- mate of the advance? iix payable by him in accordance with thf¹ provisions n.f su.h-spction (3) of section 212, or

(c) has without reasonable cause failed to furnish an estij mate of the advance tax payable by him in accordance with the provisions of sub-section (3A) of section 212,

he may direct that such person shall, in addition to the amount, of tax, it' any, payable by him, pay by way of penalty a sum—

(i) which, in the case referred to in clause (a), shall not be less than ten per cent, but shall not exceed one and a half times the amount by which the tax actually paid during the financial year immediately preceding the assessment year under the pro- visions of Chapter XVII-C falls short of—

(1) seventy-five per cent, of the assessed tux as denned in

sub-section (5) of section 215, or

(2) where a notice under section 210 was issued to the

assessee, the amount payable thereunder,

whichever is less;

(li) which, in the case referred to in clause (b), shall not be less than ten per cent, but shall not exceed one and a half times of seventy-five per cent, of the assessed lax as denned in sub-section (5) of section 215; and

(Hi) which, in the case referred to in clause (c), shall not be less than ten per cent, but shall not exceed one and a half times the amount by which the tax payable under the notice issued to the assessee under section 210 falls short of seventy-five per cent, of the assessed tax as denned in sub-section (5) of section 215.".

23. In the Fifth Schedule to the Income-tax Act after item (31), the following items shall be inserted with effect from the 1st day of April, 1970. namely: —

Amend- ment of the Fifth Schedule.

"(32) Textiles (including those dyed, printed or otherwise processed) made wholly or mainly of cotton, including cotton yarn, hosier)' and rope.

(33) Textiles (including those dyed, printed or otherwise pro- cessed) marlo wholly or mainly of jute, including jute twine and jute rope.".

CHAPTER TV

OTHER DIRECT TAXES

24. In the Wealth-tax Act, 1957,—

(a) in section 2, for clause (e), the following clause shall be

Amend- ment of Act 27 of 1957, substituted, namely:—•

' (e) "assets" includes property of every description, movable

or immovable, but does not include,—

(7) in relation to the assessment year commencing on the 1st day of April, 1969 or any earlier assessment year— (i) agricultural land and growing crops, grass or

standing trees on such land;

(u) any building owned or occupied by a cultivator nf, or receiver of rent or revenue out of. ngricultural land:

Provided that the building is on or in the immediate vicinity of tho land and is a building which the cultiv?N

tor or the receiver of rent or revenue by reason of his connection with the land requires as a dwelling-house or a store-house or an outhouse;

(Hi) animals;

(it;) a right to any annuity in any case where the terms and conditions relating thereto preclude the com- mutation of any portion thereof into a lump sum grant;

(v) any interest in property where the interest is available to an assessee for a period not exceeding six years from the date the interest vests in the assessee;

(2) in relation to the assessment year commencing on the 1st day of April, 1970 or any subsequent assessment year—

|

(i) animals,-¹ (ii) a right to any annuity in any case where the terms and conditions relating thereto preclude the com- mutation of any portion thereof into a lump sum grant; (Hi) any interest in property where the interest is available to an .assessee for a period not exceeding six years from the date the interest vests in the assessee;';

(b) in section 5, in sub-section (1) ,—

(i) after clause (iv), the following clause shall be inserted with effect from the 1st day of April, 1970, namely: —

"(iva) agricultural land belonging to the assessee subject to a maximum of one hundred and fifty thousand rupees in value:

Provided that where the assessee owns any house or part of a house situate in a place with a population ex- ceeding ten thousand and to which the provisions of clause (iv) apply and the value of such house or part of a house together with the value of the agricultural land exceeds one hundred and fifty thousand rupees, then the amount that shall not be included m the net wealth of the assessee under this clause shall be one hundred and fifty thousand rupees as reduced by so much of the value of such house or part of house as is not to be included in the net wealth of the assessee under clause (iv);";

(ii) after clause (viii), the following clause shall be inserted with effect from the 1st day of April, 1970, namely: —

" (vliia) growing crops (including fruits on trees) on agricultural land and grass on such land;"; (iii) for clause (ix) and the Explanation thereto, the follow- ing clause and Explanation shall be substituted with effect from the 1st day of April, 1970, namely: —

"(ix) the tools, implements and equipment used by the assessee for the cultivation, conservation, Improvement or maintenance of agricultural land, or for the raising or har- vesting of any agricultural or horticultural produce on such land. " (

Explanation.—For the purposes of this clause, tools, im- plements and equipment do not include any plant or machi- nery used in any tea or other plantation in connection with the processing of any agricultural produce or in tlv" manufac- ture of any article from such produce;";

(c) in section 18, in sub-section (1), ior clauses (t) ana t,wj, the following clauses and .Explanation shall be substituted, namely: —

' (i) in the cases referred to in clause (a), in addition to the amount of wealth-tax, if any, payable by him, a sum, for every month during which the default continued, equal to one-half per cent, of—1

(A) the net wealth assessed under section 16 as reduced by the amount of net wealth on which, in accordance with the rates of wealth-tax specified in Paragraph A of Part I of the Schedule or Part II of the Schedule, the wealth-tax chargeable is nil, or

(B) the net wealth assessed under section 17, where assessment has been made under that section, as reduced by— (1) the net wealth, if any, assessed previously under section 16 or section 17, or

(2) the amount of net wealth on which, in accord- ance with the rates of wealth-tax specified in Paragraph A of Part I of the Schedule or Part II of the Schedule, the wealth-tax chargeable is nil,

whichever is greater,

but not exceeding, in the aggregate, an amount equal to the net wealth assessed under section 16, or, as the case may be, the net wealth assessed under section 17, as reduced in either case in the manner aforesaid;

(ii) in the cases referred to in clause (b), in addition to the amount of wealth-tax payable by him, a sum which shall not be less than one per cent, of the assessed net wealth but which shall not exceed the amount of the assessed net wealth.

Explanation.—For the purposes of clause (ii), "assessed net wealth" shall be taken to be the net wealth assessed under sec- tion 16 as reduced by the net wealth declared in the return, if any, furnished by such person, or, as the case may be, the net wealth assessed under section 17 as reduced by—

(i) the net wealth, if any, assessed previously under section 16 or section IV, or

(H) the net wealth declared in the return, if any, furnish- ed by such person under section 17,

whichever is greater;'.

25. In the Companies (Profits) Surtax Act, 1964, in the Third Schedule, the proviso shall be omitted.

Amend- ment of Act 7 of 1964.

CHAPTER V

INDIRECT TAXES

Amend- 26. In the Indian Tariff Act, 1934 (hereinafter referred to as the Tariff A c t ) ,-

^a) in section 2A,— ,

ment Of Act 32 of 1934.

(£) in the Explanation below sub-section (1), for the words, brackets, figure and letter "In this sub-section and sub-section (1A)", the words "In this section" shall be substituted;

(ii) for sub-section (2), the following sub-section shall be substituted, namely:—

"(2) If the Central Government is satisfied that It is

necessary in tiie public uueresi to levy on any imported article [wnether on such article duty is leviable under sub- section (2) or notj, such additional duty as would counter- oaiance the excise duty leviaoie on any raw materials, com- ponents and ingredients oi me same nature as, or similar to tiiosc, used m tne production or manufacture of such article, it may, by notmcanon in the Uiiicial Gazette, direct that such imported article shall, in addition, be liable to an addi- tional duty representing sucu portion of the excise duty leviable on such raw materials, components and ingredients as, in either case, may be determined by rules made by the Central Government in this behalf-";

(b) the First Schedule shall be amended in the manner specified in Parts I and II of the Second Schedule.

27. (1) In the case of goods chargeable with a duty of customs which is specified in the First Schedule to the Tariff Act, or in that Schedule as amended by a subsequent Central Act, if any, or m that Schedule read with any notification of the Central Government for the time being in force, there shall be levied and collected as an addition to, and in the same manner as, the total amount so chargeable, a special duty of customs equal to 10 per cent, of such amount:

Provided that in computing the total amount so chargeable, any duty chargeable under section 2A of the Tariff Act or section 28 of this Act shall not be included.

10 of 1897.

(2) Sub-section (I) shall cease to have effect alter the 31st day of March, 1970, except as respects things done or omitted to be done before such cesser; and section 6 of the General Clauses Act, 1897, shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.

Regula- tory duties of customs.

28. (2) With a view to regulating or bringing greater economy in imports, there shall be levied and collected, with effect from such date, and at such rate, as may be specified in this behalf by the Central Govern- ment by notification in the Official Gazette, on all or any of the goods mentioned in the First Schedule to the Tariff Act or in that Schedule as amended by a subsequent Central Act, if any, a regulatory duty of customs not exceeding—

(a) 26 per cent, of the rate, if any, specified in the said First Schedule read with any notification issued under section 3A, or sub- section (1) of section 4, of the Tariff Act; or

(b) 10 per cent, of the value of the goods as determined in accor- dance with the provisions of section 14 of the Customs Act, 1962.

52 of 1962, whichever is higher:

Provided that different dates and different rates may be specified by the Central Government for different kinds-of goods.

!• of 1897, (2) Sub-section (1) shall cease to have effect after the 15th day of May, 1970, except as respects things done or omitted to be done before such cesser; and section 6 of the General Clauses Act, 1897, shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.

(*•) I ne regulatory duty of customs leviable under tirta seatton in respect of any goods referred to in sub-section (1) shall be In addition to any other duty of customs chargeable on such goods under the Customs Act, 1962.

02 of 1962.

52 of 1962.

(4) The provisions of the Customs Act, 1962, and the rules and regula- tions made thereunder, including those relating to refunds and xemptions from duties, shall, as far as may be, apply in relation to the Bvy and collection of the regulatory duty of customs leviable under thif ection In respect of any goods as they apply in relation to the levy and olloction of the duties of customs on such goods under that Act or those ules and regulations.

,(5) Every notification issued under sub-section (1) shall, as soon as nay be after it is issued, be placed before each House of Parliament.

29. In the Indian Tariff (Amendment) Act, 1949, In sections 4 and 5, or the figures "1969", the figures "1970" shall be substituted.

Amend-

ment of

Act 1 of

1049.

30. In the Central Excises and Salt Act, 1944 (hereinafter referred to LB the Certtral Excises Act), in the First Schedule,—

Amend-

ment of

Act 1 0*

1644.

(i) in Item No. 1, for the entries in the third column against sub-items (1) and (2), the entries "Nineteen per cent, ad valorem." and "Ten per cent, ad valorem." shall, respectively, be substituted;

(ii) in Item No. 1A, In the entry in the second column against sub-item (2), after the word "chocolates", the words "in bulk or" shall be inserted;

(iti) after Item No. 1A, the following Item shall be inserted namely: —

"iB. PREPARED OR PRESERVED FOODS PUT Ten per cent. UP IN UNIT CONTAINERS AND ORDI- ad valorem*; NARILY INTENDED FOR SALE, INCLUD- ING PREPARATIONS OF VEGETABLES, FRUIT, MILK, CEREALS, FLOUR, STARCH, BIRDS' EGGS, MEAT, MEATITOFFALS, ANIMAL BLOOD, FISH, CRUSTACEANS OR MOLLUSCS, NOT ELSEWHERE SPECIFIED.

(iv) in Item No, 4, under "II. Manufactured tobacco—.", for the entry in the third column against sub-item (2), the entry "One hundred and twenty-five per cent, ad valorem." shall be substituted?

(u) in Item No, 6, for the entry in the third column, the entry "Six hundred and twenty rupees per kilolitre at fifteen degrees oi Centigrade thermometer." shall be substituted;

(vi) In Item No. 13, for the entry in the third column, the entry "Ten pep cent, ad valorem." shall be substituted;

(ui{) in Item No. 14A, for the entry in the third column, the entry "Five per cent, ad valorem" shall be substituted;

(Wii) tot Item No. 14B, the following Item shall be substituted, namely: —|

"14B CAUSTIC SODA, WHETHER IN A SOLID Five per cent. ad valorem.";

FORM OR IN LYE.

(ix) in Item No. 14BB, for the entry tn the third column, the entry "Twenty-five per cent, ad valorem." shall be substituted;

(x) after Item No. 14H, the following Item shall be inserted, namely:—

"I4HH FERTILISERS, ALL SORTS, BUT Ten per cent. EXCLUDING NATURAL ANIMAL OR ad valorem."; VEGETABLE FERTILISERS WHEN NOT CHEMICALLY TREATED.

(xi) in Item No. 15,—

(i) for the entries in the third column against sub-items 1(1) and 1(2), the entries "Six and a half per cent, ad valorem" and "Nine and a half per cent, ad valorem." shall, respectively, be substituted;

(^i) for sub-item II, the following sub-item shall be substi- tuted, namely: —

"II $oap, in or in relation tojthelmanufacture of Six and a half per which no process has been carried on with the cent, ad valorem"; aid of power or of steam for heating.

(xii) for Item No. 19, the following Item shall be substituted, namely:—|

"19 COTTON FABRICS—

"Cotton fabrics" means all varieties of fabrics manufac- tured either wholly or partly from cotton and includes dhoties, sarees, chadders, bed-sheets, bed-spreads, counter- panes, table-cloths, embroidery in the piece, in strips or in motifs and fabrics impregnated or coated with preparations of cellulose derivatives or of other artificial plastic materials but does not Include any such fabric if it contains—

(i) 40 per cent, or more by weight of wool;

(ii) 40 per cent, or more by weight of silk; or

(in) 60 per cent, or more by weight of rayon 01 artificial silk:

Provided that in the case of embroidery in the piece, in strips or in motifs and fabrics impregnated or coated with preparations of cellulose derivatives or of other artificial plastic materials, the percentages referred to in (i) to (Hi) above shall be in relation to the base fabrics which are embroidered or impregnated or coated, as the case may be—

I. Cotton fabrics other than (i) embroidery in the piece, in strips or in motifs, and (ii) fabrics impregnated

oi coated ..mi preparations 01 cellulose derivatives or 01 other artificial plastic materials,—

(i) Coating, suiting, tussors, corduroy, gaber- Twelve and a dine, bed-ford, satin, denim, lappet, lace, knitted half per cent, fabric, tapestry, furnishing fabric including ad valorem,. jacquard curtain cloth, gadlapet, mattress fabric, terry towel including turkish towel, terry towel- ling cloth including turkish towelling cloth, blanket, canvas, duck, filter cloth, tracing cloth and bukram cloth.

(2) Others—

(a) Cotton fabrics, superfine—

thatistosay fabrics in which the average count of Eighty paise per yarn is 48s or more

square metre.

(b) Cotton fabrics, fine—

uat is to say, fabrics in which the average count of Eighty paise per yarn is 35s or more but is less than 48s. square metre.

(c) Cotton fabrics, medium-A—

that is to say, fabrics in which the average count Sixty paise per of yarn is 26s or more but is less than 35s. square metre.

(d) Cotton fabrics, medium-B—

that is to say, fabrics in which the average count Sixty paise per of yarn is 17s or more but is less than 26s. square metre.

(e) Cotton fabrics, coarse—

that is to say, fabrics in which the average count of Sixty paise per square yarn is less than 17s. metre.

(/) Cotton fabrics not otherwise specified. Eighty paise per

square metre.

II. Embroidery, in the piece, in strips or in motifs, The duty for the time in or in relation to the manufacture of which any being leviable on the process is ordinarily carried on with the aid of base fabrics, if not already paid, plus power. twenty per cent. ad valorem.

III. Cotton fabrics impregnated or coated with The duty for the time preparations of cellulose derivatives or of other arti- being leviable on the base fabrics, if not tidal plastic materials. already paid, plus twenty-five percent. ad valorem.

Explanation I.—"Base fabrics" means fabrics falling under sub-item I of this Item which are subjected to the process of embroidery or which are impregnated or coateti with preparations of cellulose derivatives or of other plastic materials,

Explanation 11.—"Count" means count of grey yarn.

Explanation 111.—For the purpose of determining the average count of yarn, the following rules shall apply, namely:—

(a) yarn used in the borders or selvedges shall

be ignored;

(b) for multiple-fold yarn, the count of the basic single yarn shall be taken and the number of ends per 25.4 millimetres in the reed or the number of picks per 25.4 millimetres, as the case may be, shall be multiplied by the number of plies in the yarn;

(c) in the case of fabrics manufactured from cotton and other yarns, the other yarns, shall, for the aforesaid purpose, be deemed to be cotton yarn;

(d) the average count shall be obtained by apply-

ing the following formula, namely: —

(Count of warp number of ends per 25.4 milimetres in the reed) + (Count for weftXnumber of picks per 25.4 millimetres)

(Number of ends per 25.4 millimetres in the reed) + (Number of picks per 25.4 millimetres),

the result being rounded off, wherever necessary, by treating any fraction which is one-half or more as one, and disregarding any fraction which is less than one- half".';

(xni) for Item No. 20. the following Item shall be substituted, aamely: —

'2.0. SILK FABRICS—

"Silk fabrics" means all varieties of fabrics manafactur'-' ed either wholly or partly from silk and includes em- broidery in the piece, in strips or in motifs but does not include any such fabric—

(i) if it contains 40 per cent, or more by weight of wool;

(ii) if it contains cotton or artificial silk or both and less thsm 40 per cent, by weight of silk;

(iii) if it contains no cotton and no artificial silk and less than 40 per cent, by weight of silk; or

(iv) if manufactured on a handloom:

Provided that in the case of embroidery in the piece, in strips or in motifs, the percentages referred to in (i) to (iv) above shall be .in relation xo the base fabrics which are embroidered—

(1) Silk fabrics, other than embroidery in the Thirty-six paise per piece, in strips or in motifs.

square metre.

(2) Embroidery, in the piece, in strips or in The duty for the time motifs, in or in relation to the manufacture of which being leviable on any process is ordinarily carried on with the aid of the base fabrics, if power.

not already paid, plus twenty pef cent, ad valorem

Explanation.—"Base fabrics" means fabrics tailing undei sub-item (1) of this Item which are subjected to the process of embroidery.';

(xiv) for Item No. 21, the following Item shall be substituted, namely: —

'21 WOOLLEN FABRICS—

"Woollen fabrics" means all varieties of fabrics manu- factured wholly of wool or which contain 40 per cent, or more by weight of wool and includes blankets, lohis, rugs, shawls and embroidery in the piece, in strips or in motifs:

Provided that in the case of embroidery in the piece, in strips or in motifs, the percentage referred to above shall be in relation to the base fabrics which are embroidered—

(1) Woollen fabrics, other than embroidery in the Six and a quarter per piece, in strips or in motifs. cent, ad valorem.

(2) Embroidery in the piece, in strips or in motifs, The duty for the time in or in relation to the manufacture of which any being leviable on process is ordinarily carried on with the aid of the base fabrics, if not already paid, plus power. twenty per cent. ad valorem.

Explanation.—"Base fabrics" means fabrics falling under sub-item (1) of this Item which are subjected to the process of embroidery.';

(xv) for Item No. 22, the following Item shall be substituted, namely: —

'22 RAYON OR ARTIFICIAL SILK FABRICS—

"Rayon or artificial silk fabrics" means all varieties of fabrics manufactured either wholly or partly from rayon or artificial silk and includes embroidery in the piece, in strips or in motifs and fabrics impregnate*! or coated with prepara- tions of cellulose derivatives or of other artificial plastic materials, but does not include any such fabric—

(i) if it contains 40 per cent, or more by weight of wool;

(ii) if it contains 40 per cent, or more by weight of silk;

(Hi) if it contains cotton and less than 60 per cent, by

weight of rayon or artificial silk; or

(iu) if it contains no cotton and less than 40 per cent, by weight of wool and less than 40 per cent, by weight of rayon or artificial silk:

.Provided that in the case of embroidery in the piece, in strips or in motifs and fabrics impregnated cr coated with preparations of cellulose derivatives or of other artificial plastic materials, the percentages referred to in (i) to (iv) above shall be in relation to the base fabrics which are em- broidered or impregnated or coated, as the case may be—

(r) Rayon or art'ficial silk fabrics other than (i) em-; Seven paise per broidery in the piece, in strips or in motifs, and square metre- (") fabrics impregnated or coated with prepara- tions of cellulose derivatives or of other artificial plastic materials.

(2) Embroidery in the piece, in strips or in^motifs, The dutyj for the time in or in relation to the manufacture of which any being leviable on the process is ordinarily carried on with the aid of base fabrics, if not already paid, plus power. twenty per cent. ad valorem.

(3) Fabrics impregnated or coated with preparations The duty for the time of cellulose derivatives or of other artificial being leviable on the base fabrics, if not plastic materials. already paid, plus twenty-five percent. ad valorem.

Explanation.—"Base fabrics" means fabrics falling under sub-item (1) of this Item which are subjected to the process of embroidery or which are impregnated or coated with pre- parations of cellulose derivatives or of other plastic materials.';

(xvi) in Item No. 22A, for the entries in the third column against sub-items (i) and (ii), the entries "Five hundred and fifty rupees per metric tonne." and "Three hundred and fifty rupees per metric tonne." shall, respectively, be substituted;

(acini) for Item No. 22B, the following Item shall be substituted, namely: —

"22B TEXTILE FABRICS IMPREGNATED Twenty-five per cent. OR COATED WITH PREPARATIONS OF ad valorem."; CELLULOSE |DERIVATIVES OR OF OTHER ARTIFICIAL PLASTIC MATE- RIALS .NOT ELSEWHERE SPECIFIED.

(xviii) Item No. 22C shall be omitted;

(xix) in Item No. 23, for the entry in the third column, the entry "Twenty-one per cent, ad valorem." shall be substituted;

(xx) in Item No. 26A, after sub-item (1), the following sub-item shall be inserted, namely: —

"(ia) Wire bars, wire rods and castings, not other- One thousand and wise specified. five hundred rupees per metric tonne,"j

(xxi) iuL lteua JNo. *(, aitei suu-iu*u (u), %ue xuliu..jujg ^iu-n^ i

shall be inserted, namely: —

"(ad) Wire bars, wire rods and castings, not Nine hundred and otherwise specified. fifty rupees per me-

tric tonne.";

(xxii) after Item No. 30, the following Item shall be inserted, namely: —

"30A POWER DRIVEN PUMPS (INCLUDING Twenty per cent.

MOTOR PUMPS, TURBO PUMPS AND advalorem"'; MONOBLOC PUMP SETS) FOR LIQUIDS, WHETHER OR NOT FITTED WITH MEASURING DEVICES.

(xxiii) in Item No. 32,—

(i) for sub-item (1), the following sub-item shall be substi-

tuted, namely: —

"(1) Vacuum and gas-filled bulbs. . . . Eleven per cent.

ad valorem,";

(ii) for the entries in the third column against sub-items (2), (3) and (4), the entries "Twenty-two per cent, ad valorem", "Six per cent, ad valorem." and "Sixteen per cent, ad valorem." shall, respectively, be substituted;

(xxiv) for Item No. 33, the following Item shall be substituted,

namely: —

"33 ELECTRIC FANS, including air circulators but exclud- ing those which are designed for use in an industrial system as parts indispensable for its operation and have been given for that purpose some special shape or quali -y which would not be essen- tial for their use for any other purpose—

(1) Table, cabin, carriage, pedestal and air circulator Ss percent.

fans, not exceeding 40 • 6 centimetres. ad valorem.";

(2) AUfother fans. Eight and a half per

cent.

ad valorem";

(xxv) after Item No. 33B, the following Item shall be inserted,

namely: —

"33C DOMESTIC ELECTRICAL APPLIANCES Ten per cent. NOT ELSEWHERE SPECIFIED ad valorem.

Explanation I.—"Domestic electrical appliances" means electrical appliances normally used in the household and similar appliances used in hotels, restaurants, hostels, offices, educational institutions, hospitals, train kitchens, aircraft or ships' pantries, canteens, tailor- ing establishments, laundry shops *nd hair dressing saloons.

Explanation II.—Interchangeable parts or auxiliary devices ac- companying an appliance to make it suitable for various purposes shall be assessed to duty along with the appliance.';

(*,",ot,) mi JLu-in JNo. 01, the Hollowing item shall be substituted, namely: —

"37 CINEMATOGRAPH FILMS—

I. Unexposed

Two paise per metre.

IT. Exposed.—

Of a width of 30 mm. Below 30 mm.

or higher in width

(1) News-reels and shorts not Fifty paise per metre. Thirty paise per metre exceeding 500 metres.

(2) Feature films, advertisement One rupee and fifty One rupee per metre".

shorts, and films not other- paise per metre, wise specified.

(xxvii) for Item No. 37A, the following Item sEall be substituted, namely:—•

"37A GRAMOPHONES, INCLUDING RECORD PLAYERS, RECORD PLAYING DECKS AND RECORD CHANGER DECKS, WHETHER MECHANICALLY OR ELECTRICALLY DRIVEN, WITH OR WITHOUT AN IN-BUILT SYSTEM OF SOUND RE- PRODUCTION OR AMPLIFICATION (ACOUSTIC, ELECTRO- NIC OR TRANSISTORISED), AND PARTS AND ACCESSOR- IES THEREOF NOT ELSEWHERE SPECIFIED, AND GRAMO- PHONE RECORDS, ALL S O R T S-

CO Gramophones, record players, record playing Twenty per cent, decks or record changer decks. ad valorem.

(it) Parts and accessories of gramophones, record Thirty per cent,

players, record playing decks or record changer ad valorem. decks.

(Hi) Gramophone records,* all isorts, other than Fifteen percent,

matrices.

ad valorem.

{iv) Matrices for records, impressed. • • • Thirty per cent.

ad valorem.

(v) Gramophone needles or styli—

(a) wholly made of steel. . . .. Twenty per cent. ad valorem.

(ft) Others • • Twenty-five per cent,

ad valorem.";

(xxviii) after Item No. 41, the following Items shall be inserted, namely: —

"42 PILFER PROOF CAPS FOR PACKAGING, One paisa each.

ALL SORTS, WITH OR WITHOUT WASH- ERS OR OTHER FITTINGS OF CORK, RUBBER, POLYETHYLENE OR ANY OTHER MATERIAL.

43. WOOL TOPS . . . . .. Five rupees per

kijoeram."

Special

dutiM of

excise un

certain

goodf.

31. (1) When goods of the description mentioned in this section charge- able with a duty of excise under the Central Excises Act (as amended by this Act or any subsequent Central Act) read with any notification for the time being in force issued by the Centra] Government in relation to the duty so chargeable, are assessed to duty, there shall be levied and collected—

(a) as respects goods comprised In Items Nos. 6, 8, 9, 14D, 22A, 23A except sub-item (1) thereof, 23B, 28, 29, sub-items (2) and (3) of Item No. 31 and Item No. 32 of the First Schedule to the Central Excises Act, a special duty of excise equal to 10 per cent, of the total amount so chargeable on such goods;

(b) as respects goods comprised in Items Nos. 2, 3(1), sub-items I, 11(2) and 11(3) of Item No. 4, Items Nos. 13, 14, 14F, 15, 15A, 15B, 18, 16A, 17, 18A(2). 21. 22, 23, 23A(1), 27, 30, 31(1), 33, sub-items (1), (3a) and (4) of Item No. 34 and sub-items 11(1) and 11(2) of Item No. 37 of that Schedule, a special duty of excise equal to 20 per cent, of the,total amount so chargeable on such goods; and

(c) as respects goods comprised in sub-item 11(1) of Item No. 4 and Items Nos. 18, 18A(1), 18B. 20, 29A, 33A and sub-items (2) and (3) of Item No. 34 of that Schedule, a special duty of excise equal to 33£ per cent, of the total amount so chargeable on such goods.

13 cfl897.

(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1970, except as respects things done or omitted to be done before such cesser; and section 6 of the General Clauses Act, 1897. shall apply upon such cesser as if the said sub-section had then been repealed by a Centra] Act.

(3) The duties of excise referred to in sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the Central Excises Act or any other law for the time being in force and such special duties shall be levied for purposes of the Union and the proceeds thereof shall not be distribut- ed among the States.

(4) The provisions of the Central Excises Act and the rnies made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of duties of exebe on such goods under that Act or those rules.

RoguU-

tory

dutlei •*

excise.

32. (I) With a view to regulating or bringing greater economy in con- sumption, there shall be levied and collected, with effect from such data, and at such rate as may be specified in this behalf by the Central Gov- ernment by notification in the Official Gazette, on all or any of the goods mentioned in the First Schedule to the Central Excises Act as amended by this Act or any subsequent Central Act, a regulatory dutv of exde" which shall not exceed 15 per cent, of the value of the goods as determin- ed in accordance with the provisions of sectton. 4 of the Central Excises Act:

Provided that different dates and different rates may be specified

by the Central Government for different kinds of goods.

io of 1877 (2) Sub-section (1) shall cease to have effect after the 15th day of May, 1970, except as respects things done or omitted to be done before such cesser; and section 6 of the General Clauses Act, 1897, shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.

(3) The duties of excise referred to In sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the Central Excises Act or any other law for the time being in force and such regulatory duties shall be levied for purposes of the Union and the proceeds thereof shall not be distributed among the States.

(4) The provisions of the Central Excises Act and the rules made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collec- tion of the regulatory duties of excise leviable under this section in res- pect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that Act or those rules.

({>') Every notification issued under sub-section (1) shall, as soon as

may be after it is issued, be placed before each House of Parliament.

33. In the First Schedule to the Additional Duties of Excise (Goods of

Special Importance) Act. 1957,—

Amend-

ment of

Act 58

af 1957.

(i) in Item No. 1, for the entry In the third column, the entry

"Four per cent, ad valorem " shall be substituted;

(n) for Item No, 19, the following Item shall be substituted,

namely: —

"If) COTTON FABRICS—

I. Cotton fabrics other than—

(t) embroidery, in the piece, in strips or in

motifs, and

(//') fabrics impregnated or coated with preparations of cellulose derivatives or of Dthcr artificial plastic materials,—

(i) Coating, suiting, tussors, corduroy, Two and a half pabcrdine, bed-ford, satin, denim, lappet, per cent, ad valorem. lace, knitted fabric, tapestry, furnish- ing fabric including jacquard curtain cloth, gadlapet, mattress fabric, terry towel including turkish towel, terry toweK lin i cloth including turkish towelling cloth, blanket, canvas, duck, filter cloth, tracing cloth, and bukram doth.

(a) Others—

(a) Cotton fabrics, superfine 15-5 paise per

square metre.

(b) Cotton fabrics, fine 9-6 'paise per squaro

metre.

(c) Cotton fabricsrmedium-A 4*8 paise per square

metre.

(d) Cotton fabrics, medium-B 4 • 8 paise per square

metre.

(") Cotton fabrics, coarse 3-6 paise per square

metre.

(/) Cotton fabrics not other- 15 >5 paise per

wise specified square metre.

II. Embroidery, in the piece, in strips or The duty for the in motifs, in or in relation to the manufacture of time being leviable, which any process is ordinarily carried on with on the base fabrics, the aid of power.

if not already paid.

III. Cotton fabrics impregnated or coated The duty for th* with preparations of cellulose v derivatives or of time being leviable other artificial plastic materials. " on the base fabrics, if not already paid.";

(11V) for Item No. 20, the following Item shall be substituted, namely: —

"20 SILK FABRICS—

(ij Silk fabrics, other than Thirty paise per

embroidery in the piece, in strips or square metre. in motifs.

F (2) Embroidery, in the piece, The T duty for the in strips or in motifs, in or in rela- time being leviable tion to the" manufacture of which on the base fabrics, any process is ordinarily carried on if not already paid."; with the aid of power.

(iv) for Item No. 21, the following Item shall be substituted, namely:—

"21 WOOLLEN FABRICS—

(l)*,Woollen fabrics, other than Five per cent.

embroidery in the piece, in strips ad valorem. or in motifs.

(2) Embroidery, in the piece, The duty for the in strips or in motifs, in or in rela- time being leviable tion to the manufacture of which on base fabrics, any process is ordinarily carried on if not already paid."; with the aid of power.

(u) for Item No. 22, the following Item shall be substituted, namely:—

"22 RAYON OR ARTIFICIAL SILK FABRICS -

(1) Rayon or artificial silk 3-6 paise per square

fabrics other than (1) embroidery, metre. in the piece, in strips or in motifs, and (") fabrics impregnated or coated with preparations of cellu- lose derivatives or of other artificial plastic materials.

(2) Embroidery, in the piece, The duty for the in strips or in motifs, in or in re- time being leviable lation to the manufacture of which on the base fabrics( any process is ordinarily carried if not already paid, on with the aid of power.

(3) Fabrics impregnated or The duty for the time coated with preparations of being leviable on cellulose derivatives or of other the base fabrics, if artificial plastic materials. not already paid.".

Discontinu- ance of •alt duty.

34. For the year beginning on the 1st day of April, 1969, no duty under the Central Excises Act, or the Tariff Act shall be levied in respeot of salt manufactured in, or imported into, India.

THE FIRST SCHEDULE

(See section 2)

PART I

INCOME-TAX AND SURCHARGES ON INCOME-TAX

Paragraph A

In the caBe of every individual or Hindu undivided family or unregis- tered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub- clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,—

Rates of income-tax

(1) where the total income 5 per cent, of the total income;

does not exceed Rs. 5,000

(2) where the total income Rs. 250 plus 10 per cent, of th" exceeds Rs. 5,000 but docs not amount by which the total ta- execed Rs. 10,000 come exceeds Rs. 5,000;

(3) where the total income Rs. 750 plus 15 per cent, of the exceeds Rs. 10,000 but does not amount by which the total income "xc"ed R*> 15,000 exceeds Rs. 10,0 JO

(A) where the total income Rs. 1,500 plus 20 per cent, of exceeds Rs. I

income exceeds Rs. 15,000;

(5) where the total income Rs. 2,500 plus 30 per cent, of exceeds Rs. 20,000 but does not the amount by which the total exceed Rs. 25,000

income exceeds Rs. 20,000;

(6) where the total income Rs. 4,000 plus 40 per cent, of exceeds Rs. 25,000 but does not the amount by which the total exceed Rs, 30,000

income exceeds Rs. 25,000;

(7) where the total income Rs, 6,000 plus 50 per cent, of exceeds Rs. 30,000 but does not the amount by which the total exceed Rs. 50,000

income exceeds Rs. 30,000;

(8) where die total income Rs. 16,000 plus 60 per cent, of exceeds Rs. 50,000 but does not the amount by which the total exceed Rs. 70,000

income exceeds Rs. 50,000;

(9) where the total income Rs. 28,000 plus 65 per cent, of exceeds Rs. 70,000 but does not the amount by whic"h the total exceed Rs. 1,00,000

income exceeds Rs. 70,000;

(10) where the total income Rs. 47,500 plus 70 per cent, of exceeds Rs. 1,00,000 but does not the amount by which the total exceed Rs. 2,50,000

income exceeds Rs. 1,00,000;

(11) where the total income Rs. 1,52,500 plus 75 per cent, of exceeds Rs. 2,50,000 uie amount by which the total

income exceeds Rs. 2,50,000;

.Provided that for the purposes of this Paragraph, in the case of a

person, not being a non-resident—

(i) no income-tax shall be payable on a total income not exceed-

ing the following limit, namely: —

(a) Rs. 7,000 in the case of every Hindu undivided family which at any time during the previous year satisfies either of the following two conditions, namely: —

(1) that it has at least two members entitled to claim

partition who are not less than eighteen years of age; or

(2) that it has at least two members entitled to claim partition who are not lineally descended one from the other and who are not lineally descended from any other living member of the family;

(b) Rs. 4,000 in every other case;

(ii) where such person is an individual whose total income does not exceed Rs. 10,000 and who has, during the previous year, Incurred any expenditure for the maintenance of any one or more of his parents or grand-parents mainly dependent on him, the income- tax computed at the rate hereinbefore specified shall be reduced by so much of the amount specified hereunder, as does not exceed the amount of income-tax so computed: —

(a) Rs. 145 • . - in the case of an unmarried indi-

vidual;

(b) Ks. 220 . . . in the case of a married indi- vidual who has no child mainly

dependent on him;

(c) Rs. 240 - . . in the case of a married individual who has one child mainly de- pendent on him;

(d) Rs, 260 . . - in the case of a married individual who has more than one child mainly dependent on him,

so, however, that in the case of a married individual whose spouse has a total income exceeding Rs. 4,000, this clause shall have effect as if for the amounts ^>f Rs. 220, Rs. 240 and Rs. 260, the amounts of Rs. 145, Rs. 165 and Rs. 185 had, respectively, been sub- stituted;

(Hi) where such person is an individual not falling under clause (il) or a Hindu undivided family, the income-tax computed at the rate hereinbefore specified shall be reduced by so much of the amount specified hereunder, as does not exceed the amount of income- tax so computed:—

(a) Rs. 125 . . . . injho case of an unmarried indi-

vidual;

(b) Rs. 200 . . in the case of a married indi- vidual who has no child mainly dependent on him or a Hindu un- divided family which has no minor coparcener;

(c) Rs. 220 • . . in the case of a married individual who has one child mainly de- pendent on him or a Hindu undivided family which has one minor coparcener mainly sup- ported from the income of such family;

(d) Rs. 240 • . . in the case of a married Indivi- dual who has more than one child mainly dependent on him or a Hindu undivided family which has more than one minor coparcener mainly supported from the income of such family,

so, however, that in the case of a married individual whose spouse has a total income exceeding Rs. 4,000, this clause shall have effect as if for the amounts of Rs. 200, Rs. 220 and Rs. 240, the amounts of Rs. 125, Rs. 145 and Rs. 165 had, respectively, been sub- stituted;

(iv) (A) where such person is an individual whose total income exceeds Rs. 10,000 but does not exceed Rs. 20,000 and who has, during the previous year, incurred any expenditure for the maintenance of any one or more of his parents or grand-parents mainly dependent on him, the income-tax payable by him in respect of such total income shall not exceed the aggregate of—

(1) the income-tax which would have been payable by the individual if his total income had been Rs. 10,000, and

(2) 4^ per cent, of the amount by which the total income

of the Individual exceeds Rs. 10,000;

(B) where such person is not an individual whose case falls under sub-clause (A) and the total income of such person does not exceed Rs. 20,000, the income-tax payable thereon shall not exceed 40 per cent, of the amount by which the total income exceeds the limit specified in sub-clause (a) or, as the case may be, sub-clause (b) of clause (i) of this proviso.

Explanation.—For the purposes of clause (ii) and sub-clause (A) of clause (iv) of this proviso, a parent or grand-parent of an individual shall not be treated as being mainly dependent on such individual if the In- come of the parent or, as the case may be, the grand-parent from all sources in respect of the previous year relevant to the assessment year exceeds one thousand rupees.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge for pur- poses of the Union calculated at the rate of ten per cent, of such income- tax.

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

(1) where the total income 5 per cent, of the totaHncome;

does not exceed Rs. 5,000

(2) where the total 'incomeT Rs. 250 plus 10 per cent, of the exceeds Rs. 5,000 but does not amount by which the total in- exceed Rs. 10,000" come exceeds Rs. 5,000;

(3) where the total incomr Rs. 750 plus 15' per cent, of the exceeds Rs. ro,oco but does not amount by which the total in- exceed Rs. 15,00c come exceeds Rs. 10,000;

(4)"where tne total income Rs. 1,500 plus 20 per cent, of the exceeds Rs. 15,000 but^does not amount by which Tthe total exceed'Rs. 20,000"

income exceeds Rs. 15,000;

(5) where the total income Rs. 2,500 plus"r2$ per cent, of the exceeds^Rs. 20,00* but does no' amount by which the total in- exceed Rs. 25,00^ come exceeds Rs. 20,000:

(6)""where the total income Rs. 3,750 plus 40 per cent, of the cxceeds'Rs. 25,000 amount by which the total in-

come exceeds'Rs. 25,000:

Provided that—

(i) no income-tax shall be payable on a total income not exceed-

ing Rs. 4,000; and

(ii) where the total income is Rs. 20.000 or less, the income-tax payable shall not exceed 40 per cent, of the amount by which the total income exceeds Rs. 4,000.

Surcharge on income-tax

The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent, of such income-tax.

Paragraph C

In the case of every registered firm,—

Rates of income-tax

(1) where the total income Nil;

does not exceed Rs. 25,000

(2) where the total income 6 per cent, of the amount by exceeds Rs. 25,000 but does not which the total income exceeds exceed Rs. 50,000 Rs. 25,000;

(3) where the total income Rs. IJ5OO plus 12 per cent, of exceeds Rs. 50,000 but does not amount by which the total in- exceed Rs. 1,00,000 come exceeds Rs. 50,000;

(4) where the total income Rs. 7,500 plus 20 per cent, of the exceedsRs. 1,00,000 amount by which the total in-

come exceeds Rs. 1,00,000.

Surcharges on income-tax

The amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the Union calculated as specified hereunder: —

(0) in the case of a registered firm whose total income includes Income derived from a profession carried on by it and the income so included is not less than fifty-one per cent, of such total Income, a surcharge calculated at the rate of ten per cent, of the amount of in- come-tax computed at the rate hereinbefore specified;

(b) in the case of any other registered firm, a surcharge calcula- ted at the rate of twenty per cent, of the amount of income-tax com- puted at the rate hereinbefore specified; and

(c) a special surcharge calculated at the rate of ten per cent.

on the aggregate of the following amounts, namely: —

(i) the amount of income-tax computed at the rate herein- before specified; and

(ii) the amount of the surcharge calculated in accordance with clause (a), or, as the case may be, clause (b), of this sub- paragraph.

Paragraph D

In the case of every local authority,—

Rate of income-tax

On the whole of the total income 50 per cent.

Surcharge on income-tax

The amount of income-tax computed at the rate hereinbefore speci- fied shall be increased by a surcharge for purposes of the Union calculat- ed at the rate of ten per cent, of such income-tax.

Paragraph E

In the case of the Life Insurance Corporation of India established 31 of 1933. under the Life Insurance Corporation Act, 1956,—

Rates of income-tax

(i) on that part of its total in- 52'5 per cent.;

come which consists of profits and gains from life insurance business

the total income

(ii) on the balance, if any, of the rate of income-tax applicable, in accordance with Paragraph F of this Part, to the total income ofa domestic company which is a company in which the public are substantially interested.

Paragraph. F

In the case of a company, other than the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956,—

31 of I9J$,

Rates of income-tax

I. In the case of a domestic company—

(1) where the company is a com- pany in which the public are substan- tially interested,—

(i) in a case where the total income 45 per cent, of the total income;

does not exceed Rs. 50,000

(it) in a case where the total 55 per cent, of the total income;

income exceeds Rs. 50,000

(2) where the company is not a company in which the public are substan- tially interested,—

(i) in the case of an industrial

company—

(a) on so much of the total 55 per cent. ;

income as does not exceed Rs. 10,00,000

(b) on the balance, if any, 60percent.;

of the total income

(ii) in any other^case 65 per cent, of the total income 1

Provided that the income-tax payable by a domestic company, being a company in which the public are substantially interested, the total Income of which exceeds Rs. 50,000, shall not exceed the aggregate of—

(a) the income-tax which would have been payable by the com- pany if its total income had been Rs. 50,000 (the income of Rs. 50,000

\1\ Q o n—

for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and

(b) 80 per cent, of the amount by which its total income exceeds

Rs. 50,000.

II. In the case of a company other than a domestic company—

(i) on so much of the total income as consists of—

(a) royalties received from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March, 1961, or

(i>) fees for rendering techni- cal services received from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 39th day of February, 1964,

and where such agreement has, in either case, been approved by the Centra) Government . . 50 per cem.

(it) on the balance, if any, of the

total income . . . .. 70 per cent.

PART n

Rates JOT deduction of tax at source in certain cases

In every case in which under the provisions of sections 193, 194, 194A and 195 of the Income-tax Act, tax is to be deducted at the rates In force, deduction shall be made from the income subject to deduction, at the following rates: —

Income-tax

Rate of income-tax

Rate of Surcharge

1. In the case of a person other than a

company—

(4) where the person is resident—

(1) on income by way of interest

other than "Interest on securities" 10 per cent. Nil

(a) on any other income (excluding Interest payable on a tax free security)

20 per cent. 2 per cent.

Income-tax

Rate of Rate of income-tax surcharge

(b) where the person is not resident

iin India—

Income-tax at 30 per cent,

whole income (ex- payable on a tax

and the (i) on the ' eluding interest free security)

surcharge at 3 per cent, of amount of the income

or

income-tax and surcharge on income-tax in re"pect of the income at the rates prescribed in Paragraph A of Pan III of this Schedule, if such income had been the total income.

whichever is higher;

(n) on the income by way of on a tax free se-

interest payable curity.

15 per cent. 1 -5 per cent.

2. In the case of a company—

(a) where the company is a domestic

company—

("') on income by way of in- terest other than "Interest on s e c u r i t i e s ". . ..

Nil

20 per cent.

Nil

(") on any other income (ex- cluding interest payable on a tax free Security) . . .. 22 per cent.

(b) where the company is not a

domestic company—

(i) on the income by way of dividends payable by an Indian company as is referred to in clause (a) (i) of sub-section (z) of section 80M of the Income-tax Act

Ktl

14 per cent.

(ii) on the income by way of dividends payable by any domestic company other than a company referred to in ("') hereinabovc

Nil

24 ''5 per cent.

(MI) on the income by way of royalties payable by an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March, 1961, and which has been approved by the Central Government. •

Nif

50 per cent. •

Income-tax

Rate of income-tax

Rate of surcharge

(iv) on the income by way of fees payable by an Indian concern for rendering technical services in pursuance of an agreement made by it with the Indian concern after the 29th day of February, 1964, and which has been approved by the Central Government •

50 per cent.

Nil

(v) on the income by way of interest payable on a tax free security . . ..

44 per cent.

Nil

(vi) on any other income

70 per cent. Nit

PART III

Rates for calculating or charging income-tax in certain cases, de- ducting income-tax from income chargeable under the head "Sala- ries" or any payment referred to in sub-section (9) of section 80E and computing "advance tax".

In cases in which income-tax has to be calculated under the first pro- viso to sub-section (5) of section 132 of the Income-tax Act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head "Salaries" or deducted under sub-section (9) of section 80E of the said Act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such income-tax, or, as the case may be, "advance tax" shall be so calculated, charged, deducted or com- puted at the following rate or rates: —

Paragraph A

In the case of every individual or Hindu undivided family or unregistered firm or other association of persons or body of indivi- duals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the In- come-tax Act, not being a case to which any other Paragraph of this Part applies,—

Rates of income-tax

(1) where the total income does 5 per cent, of the total income • not exceed Rs. 5,000

'

(2) where the total income exceeds Rs. 150 plus 10 per cent of the Rs. 5,000 but does not exceed Rs. j0,000 amount by which tnc total

income exceeds Rs, 5,000;

(3) where the total income ex- Rs. 750 plus 17 per cent, of the ceeds Rs. 10,000 but does not exceed amount by which the total Ks. 15,000

income exceeds Rs. io,ooo;

(4) where the total income ex- Rs. 1,600 plus 23 per cent, of the cceds Rs. 15,000 but does not exceed amount by which the total Rs. 20)000

income exceeds Rs, 15,000;

(5) where the total income exceeds Rs. 2,750 plus 30 per cent, of the Rs. 20,000 but does not exceed amount by which the total Rs. 25,000

income exceeds Rs. 20,000;

(6) where the total in come exceeds Rs. 4,250 plus 40 per cent, of the Rs. 25,000 but does not exceed amount by which the total Rs. 30,000

income exceeds Rs. 25,000;

(7) where the total income exceeds Rs. 6,250 plus 50 per cent, of the Rs. 30,000 but does not exceed amount by which the total Rs. 50,000

income exceeds Rs. 30,000;

(8) where the total income ex- Rs. 16,250 plus 60 per cent, of the ceeds Rs. 50,000 but does not exceed amount by which the total Rs. 70,000

income exceeds Rs. 50,000;

(9) where the total income exceeds Rs. 28,250 plus 65 per cent, of the Rs. 70,000 but does not exceed amount by which the total Rs. t,oo,ooo'

income exceeds Rs. 70,000;

(10) where the total income ex- Rs. 47,750 plus 70 per cent, of the ceeds Rs. 1,00,000 but does not exceed amount by which the total Rs. 2,50,000

income exceeds Rs. 1,00,000;

ceeds Rs. 2,50,000

(11) where the total income ex- Rs. 1,52,750 plus 75 per cent, of the amount by which the total income exceeds Rs. 2,50,000:

Provided that for the purposes of this Paragraph, in the case of a

person, not being a non-resident—

0) no income-tax shall be payable on a total income not exceed-

ing the following limit, namely: —

(a) Rs. 7,000 in the case of every Hindu undivided family which at any time during the previous year relevant to the assess- ment year commencing on the 1st day of April, 1970, satisfies either of the following two conditions, namely: —

(1) that it has at least two members entitled to claim

partition who are not less than eighteen years of age; or

(2) that it has at least two members entitled to claim partition who are not lineally descended one from the other and who are not lineally descended from any other living mem- ber of the family;

(h) Rs. 4,000 in every other case;

(u) where such person is an individual whose total income does not exceed Rs. 10,000 and who has, during the previous year relevant to the assessment year commencing on the 1st day of April, 1970, incurred any expenditure for the maintenance of any one or more of hte parents or j;r,'md-purentf: mainly dependent on him, the income- tax computed at the rate hereinbefore specified shall be reduced by so

much of the amount specified hereunder, as does not exceed the amount of income-tax so computed: —

(a) Rs. 145'J . . . . in the case of an unmarried in-

dividual;

(b) Rs. 220 ,

in the case of a married individual who has no child mainly de- pendent on him;

(c) Rs. 240 . . .. in the case of a married individual

who has one child mainly de- pendent (n him;

(d) Rs. 260 . . .. in the case of a married individual

who has more than one child mainly dependent on him,

so, however, that in the case of a married Individual whose spouse has a total income exceeding Rs. 4,000 in respect of the previous year relevant to the assessment year commencing on the 1st day of April, 1970, this clause shall have effect as if for the amounts of Rs. 220, Rs. 240 and Rs. 260, the amounts of Rs. 145, Rs. 165 and Rs. 185 had, respectively, been substituted;

(Hi) where such person is an individual not falling under clause (li) or a Hindu undivided family, the Income-tax computed at the rate hereinbefore specified shall be reduced by so much of the amount specified hereunder, as does not exceed the amount of income-tax so computed: —

(a) R s. 1 25 . . .. i n ' t h e ' e a se of a n ' u n m a r r i ed i n d i-

v i d u al ;

(b) Rs. 200 . . .. in'the case of a married individual

who has no child mainlv de- pendent on him or a Hindu undivided family which has no minor coparcener,''¹

(cr) Rs. 220 . . . . in the case of a married Individual

who has one child malnlv de- pendent on him or a Hindu undivided family which has one minor coparcener mainly supported from the Income of such family;'}

(d) Rs. 240^ . . . . In the case of a married Individual who has more than one child mainly dependent on him or a Hindu undivided family which has more than one minor coparcener^ mainly supported from the fIncome^rof rruch family,

so. however, that In the case of a married individual whose spouse has a total income exceeding Rs. 4,000 In respect of the previous year relevant to the assessment year commencing on the 1st day of April.

iUVU, this clause snail have effect as u lor tne amounts oi its. ZOO, its. 220 and its. 240, the amounts oi Rs. 125, fls. 145 and Rs- 165 had, respectively, been substituted;

(iv) (A) where such person is an individual whose total income exceeas its. iu,UUU but does not exceed Ks. 2U.U00 and who has, during the previous year relevant to the assessment year commencing on the 1st day oi April, 1970, incurred any expenditure lor the maintenance oi any one or more ol his parents or grand-parents mainly dependent on him, the income-tax payable by him in respect oi such total income shall not exceed the aggregate of—

(2) the income-tax which would have been payable by the individual it his total income had been Rs. 10,000, and

(2) 40 per cent oi the amount by which the total income oi the individual exceeds Ra. 10,000;

(B) where such person is not an individual whose case falls under sub-clause (A) and the total income of such person does not exceed Rs. 20,000, the income-tax payable thereon shall not exceed 40 per cent, of the amount by which the total income exceeds the limit specified in sub-clause (a) or, as the case may be, sub-clause (b) of clause (i) of this proviso.

Explanation.—For the purposes of clause (ii) and sub-clause (A) of clause (iv) of this proviso, a parent or grand-parent of an individual shall not be treated as being mainly dependent on such individual if the income of the parent or, as the case may be, the grand-parent from all sources In respect of the previous year relevant to the assessment year commencing on the 1st day of April, 1970 exceeds one thousand rupees.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge for pur- poses of the Union calculated at the rate of ten per cent of such income- tax

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

(1) where the total income does not 15 per cent, of the total income;

exceed RB. 10,000

     (2)  where  tho  total  income  exceeds Rs. 1,500 plus 25 per cent, of the
Rs.  10,000 but does not exceed Rs. 20,000    amount  by which the  total in-
                                               come exceeds Rs.  10,000;
     (3)  where  the total  income  exceeds  Rs. 4,000 plus 40 per cent, of the
R".  20,000                                    amount  by ^which  the  total
                                               income  exceeds Rs.  20,000.

Surcharge on income-tax

The amount of income-tax computed at the rate hereinbefore speci- fied shall be increased by a surcharge for purposes of the Union calcula- ted at the rate of ten per cent, of such income-tax.

Paragraph C

In the case of every registered firm,—

.Rates of income-tax

(1) where the total income does not Nil;'

exceed Rs. 10,000

(2) where the total income exceeds 4 per cent, of the amount by Rs. 10,000 but does not exceed Rs. 25,000 which the total income exceeds

Rs. 10,000;

(3) where the total income exceeds Rs. 600 plus 6 per cent, of the Rs. 25,000 but does not exceed Rs. 50,000 amount by which the total in-

come exceeds Rs. 25,000;

(4) where the total income exceeds Rs. 2,100plus 12 percent, of the Rs. 50,000 but does not exceed Rs. 1,00,000 amount by which the total

income exceeds Rs. 50,000;

Rs. 1,00,000

(5) where the total income exceeds Rs. 8,100 plus 20 per cent, of the amount by which the total income exceeds Rs. 1,00,000.

Surcharges on income-tax

The amount of income-tax computed at the rate hereinbefore speci- fied shall be increased by the aggregate of surcharges for purposes of the Union calculated as specified hereunder: —

(a) in the case of a registered firm whose total income includes Jncome derived from a profession carried on by it and the income so included is not less than fifty-one per cent, of such total income, a surcharge calculated at the rate of ten per cent, of the amount ol income-tax computed at the rate hereinbefore specified;

(b) in the case of any other registered firm, a surcharge calcula- ted at the rate of twenty per cent, of the amount of income-tax com- puted at the rate hereinbefore specified; and

(c) a special surcharge calculated at the rate of ten per cent.

on the aggregate of the following amounts, namely: —

(i) the amount of income-tax computed at the rate herein- before specified; and

(ii) the amount of the surcharge calculated in accordance with clause (0), or, as the case may be, clause (b), of this sub- paragraph.

Paragraph D

In the case of every local authority,—

Rate of incomertax

On the whole of the total income 50 per cent.

Surcharge on income-tax

The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent, of such income-tax.

Paragraph E

In the case of the Life Insurance Corporation of India established

'i1 ot 1956. under the Life Insurance Corporation Act, 1956,—

Rates of income-tax

(0 on that part of its total in- 52 • 5 per cent,

come which consists of profits and gains from life insurance business

the total income

(H) on the balance, if any, of the rate of income-tax applicable, in accordance with Paragraph F of this Part, to the total income of a domestic company which is a company in which the public are substantially interested.

Paragraph F

In the case of a company, other than the Life Insurance corporation of

tndia established under the Life Insurance Corporation Act, 1956,—

31 of 1956.

Rates of income-tax

I. In the case of a domestic company—

(1) where the company is a com- pany in which the public are sub- stantially interested,—

(t) in a case where the total 45 per cent, of the total income;

income does not exceed Rs. 50,000

(u) in a case where the total 55 per cent, of the total income;

income exceeds Rs. 50,000

(2) where the company is not a company in which the public are sub- stantially interested,—

(i) in the case of an industrial

company—

(a) on so much of the 55]per\;eni:.;

totaljjincome as does not exceed

Rs. 10,00,000

(b) on the balance, if 60 per cent.;

any, of the total income

(11) in any other case 65 per cent, of the total income 1

Provided that the income-tax payable by a domestic company, being a company in which the public are substantially interested, the total Income of which exceeds Rs. 50,000, shall not exceed the aggregate of—

(a) the income-tax which would have been payable by the com- pany if its total income had been Rs. 50,000 (the income of Rs. 50,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and

(b) 80 per cent, of the amount by which its total income exceeds Rs. 50,000.

II. In the case of ;i company other than a domestic company—

(i) on so much of the total income as consists of—

(a) royalties received from an Indian concern in pursuance of tin agreement made by it with die Indian concern after the 31st day of March, 1961, or

(b) fees for rendering techni- cal services received from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 29th day of February, 1964,

and. where such agreement has, in rdther case, been approved by the Central Government • • 50 per cent.;

(ii) on die balance, if any, of the

ioral income . . .. 70 per cent.

THE SECOND SCHEDULE

(See section '•>")

PART I

In the First Schedule to the Tariff Act,—

(z) in Item No. 75(11) (u), in the entry in the second column, the words "roller bearings" shall be omitted;

(ii) in Item No. 87A, for the entries (ii), (in) and (iv) in the second column, the following entry shall be substituted, namely: —

"(ii) alcoholic: drinks.".

PART II

; Nature •

! of •

duty

Standard rate of duty

Item j Name of article No. | \ \

] Preferential I rate of duty | if the i article is the produce or manufacture of

Dura- tion of pro- tective rates of duty

1

i ;

r|

1 •

• The | A United King- dom

Bri- tisn Colon}

1 — J

1 2

4

! 3 -

1 5 "

7

In the First Schedule to the Tariff Act,—

(i) for Item No. 8(2), the following Item shall be substituted, namely :—

"8(2) Fruits, dried (Salted and all Preferen- 100 per .. 90 per . . " ; other kinds) not otherwise tial Reve- cent ad cent specified. nue. valorem. ad

valorem.

(it) for Item No. 72(35), the following Item shall be substituted, namely : —

"72(35) Ball bearings (including adap- Revenue 100 per .. .. ":

ter ball bearings) not ex- cent ad ceeding 60 millimetre bore valorem. diameter.

(tit) for Item No. 72(36), the following Item shall be substituted, namely :—

"72(36) Ball bearings (including adap- Revenue 40 per

ter ball bearings) exceeding cent ad 60 millimetres bore dia- valorem. meter.

(iv) for Item No. 72(37), the following Item shall be substituted, namely :—

"72(37) Roller bearings (excluding Revenue 100 per adapter roller bearings) not cent ad exceeding 85 millimetres valorem. bore diameter.

(v) for Item No. 72(38), the following Item shall be substituted, namely :—

iijii R)lbr biirinji e{:jiJinj 85 Revenue 43 per millimetres bore diameter cent'ad and adapter roller bearings valorem. of all sizes.

(vi) after Item No. 87A, the following Items shall be inserted, namely :—

"87B All dutiable articles, even if elsewhere specified, intend- ed for personal use, im- ported by post or air, and exempt from any prohibi- tion 'in respect of the im- port thereof under the Im- ports and Exports (Control''

Preferential rate of duty

Name of article Nature

Item No.

of duty

Standard rate of duty

i

if the article is the produce or manufacture

of

Dura- tion of pro- tective rates of duty

;

[

The United King- dom

A Bri- tish Colony

i

6

² 3

7

4

5

Act, 1947, but excluding alcoholic drinks :

(t) Drugs and medicines; Revenue 50 per

cent ad valorem.

(it) others Revenue 100 per ..

cent ad valorem.

87C The following articles of stores on board a vessel or aircraft on which duty is leviable under the Customs Act, 1962 (52 of 1962), even if elsewhere specified, namely: —

(1) Prepared or preserved Revenue 25 per meat, fish and vege- cent ad tables; dairy produce ; valorem. soups ; lard ; fresh fruits;

(") all other consumable Revenue 100 per stores, excluding fuel, cent ad lubricating oil, alcoholic valorem. drinks and tobacco products.

N. D. P. NAMBOODIRIPAD,

Joint Secy, to the Govt. of India.

PRINTED IN INDIA BY THB GENERAL MANAGER, GOVERNMENT OF INDIA PRESS.

MINTO ROAD, NEW DELHI AND PUBUSHHD BY THE MANAGKR OF PUBLICATIONS,

DELHI. 1 9 69