The Gazette of India
EXTRAORDINARY
PART II—Section 1
PUBLISHED BY AUTHORITY
No. 43] NEW DELHI, SATURDAY, JULY 15, 1972/ ASADHA 24, 1894
Separate pagingisgiventothisPartinorderthatitmaybefiled
as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 15th July, 1972/Asadha 24, 1894 (Saka)
THE INCOME-TAX (AMENDMENT) ORDINANCE, 1972
No. 7 OF 1972
Promulgated by the President in the Twenty-third Year of the
Republic of India.
An Ordinance further to amend the Income-tax Act, 1961 and to provide for barring, in the computation of total income in respect of certain assessment years prior to the assessment year 1962-63, deduction of amounts paid on account of wealth-tax.
WHEREAS Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take imme- diate action;
Now, THEREFORE,, in exercise of the powers conferred by clause (1) of article 123 of the Constitution, the President is pleased to promulgate the following Ordinance: —
1. (1) This Ordinance may be called the Income-tax (Amendment)
Ordinance, 1972.
(2) It shall come into force at once.
Short title and com- mence- ment
2. During the period of operation of this Ordinance, the Income-tax Act, 1961 (hereinafter referred to as the principal Act) shall have effect subject to the amendments specified in sections 3 and 4,
330 THE GAZETTE OF INITA EXTRAOKDINARY IPAHT I I- SEC. 1] 3. In section 40 oi: the principal Act, after sub-cl. use (ii) of clause Amend- ment of section 40.(a), the -Glicving sub-clause shall be, and shall be deemed always to have been, inserted, namely: —
'(iia) any sum paid on account of wealth-tax.
IT"£1*5T.
Explanation.—For the purposes of this sub-clause, "wealth-tax" means v.valth-tax chargeable under the Wealth-tax Act, 1957 or any tar o.t r. similar character chargeable under any law in force in any country outside India or any tax chargeable under such law with reference to tha wlue of the assets of, or the capital employed in, a business or profession carried on by the assessee, whether or not the debts of tho business or profession are allowed as a deduction in computing the amount with reference to which such tax is charged, but docs not include any tax chargeable with reference to the value of any particular asset of the business or profession;1.
Amend- ment of section 58
4. In section 58 of the principal Act, after sub-section (2), the follow- ing sub-cection shall be, and shall be deemed always to have been, inserted, namely:—
','1A) The provisions of sub-clause (iia) of clause (a) of section 40 shall, so far as may be, apply in computing the income charge- able under the head "Income from other sources" as they apply in computing the income chargeable under the head "Profits and gains of business or profession".'.
11 of 1923.
Wealth- tax not deductible In com- puting the total income for certain Essessment years.
5. Nothing contained in the Indian Income-tax Act, 1922 shall be deemed to authorise, or shall be deemed ever to have authorised, any deduction in the computation of the income of any assessee chargea'-'-le under the head "Profits and gains of business, profession or vocation" or "Income from other sources" for the assessment year commencing on the 1st day of April, 195? or any subsequent assessment year, of any sum paid on account of wealth-tax.
Explanation.—For the purposes of this section, ''wealth-tax" shall have the same meaning as is assigned to it in the Explanation to sub- clause (iia) of clause (a) of section 4Q of the principal Act.
Saving,
fi. Wher^, before the commencement of this Ordinance, the Supreme Court iifv:i, on an appeal in respect of the assessment of an assessee for any particular n'ssssment yr:ar, held that wealth-tax p tid by the assessse is dEJi^ubk' :u computing the total income of that . ear, then, nothing contained in nib-clause (iia) of clause (a) of sectior- 40, or sub-section (1A) oi cceLion 58, of the principal Act, as amended )y this Ordinance, or, as tho case may be, section 5 of this Ordinance, shall apply to the assessment of such asnessee for that particular year.
V. V. GIRI,
President.
K. K. SUNDARAM,
Jt. Secy, to the Govt. of Ind'a.