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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

NO. 8] NEW DELHI, MONDAY, JANUARY 12, 1976/MAGHA 22,1897

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

LOK SABHA

The following Bills were introduced in Lok Sabha on the 12th January, 1976:-—

BILL NO. 11 OF 1976

A Bill further to amend the Unit Trust of India Act, 1963.

BE it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows: —

1. This Act may be called the Unit Trust of India (Amendment) Short title.

Act, 1976.

52 of 1963. 2. In section 32 of the Unit Trust of India Act, 1963 (hereinafter referred to as the principal Act),—

Amend - ment of section 32.

(A) in sub-section (1),—

(i) after clause (a), the following clause shall be inserted,

namely: —

'(aa) in the case of an assessee who is not resident in India, being —

(i) an individual who is an Indian or a person of Indian origin, or

(ii) a Hindu undivided family,

43 of 1961.

there shall not be included in the total income of such assessee, for the purposes of the Income-tax Act, 1961, any income received by such assessee in the previous year in respect of units acquired by such assessee from the Trust,

(273)

46 of 1973.

out of funds in a Non-resident (External) Account main- tained with any bank in India or by the remittance of funds in foreign exchange, in accordance, in either case, with the provisions of the' Foreign Exchange Regulation Act, 1973, or any rules or orders made thereunder;';

(ii) the Explanation to clause (b) shall be omitted;

(in) in clause (ba), after the words "assets in the form of units", the brackets! and words "[not being assets referred to In clause (bb)]" shall be inserted;

(iv) the Explanation to clause (ba) shall be omitted;

(v) after clause (ba), the following clause shall be inserted, namely: —

27 of 1957.

46 of 1973.

"(bb) in the case¹ of an assessee who is not resident in India, being, an individual who is an Indian or a person of Indian origin, or a Hindu undivided family, wealth-tax shall not be payable by the assessee in respect of, and there shall not be included in, the neH; wealth of the assessee com- puted under the Wealth-tax Act, 1957, the value of the assets in the form of unit acauired from the Trust, out of funds in a Non-resident (External) Account maintained with any bank in India or by the? remittance of funds in foreign exchange, in accordance, in either case, with the provisions of the Foreign. Exchange Regulation Act, 1973, or any rules or orders made thereunder;";

(vi) aftefr clause (c), the following Explanations shall be inserted, namely: —

'Explanation I.—In this sub-section,—

43 Of 1961.

(a) in clauses (aa) and (b), the expressions "pre- vious year" and "total income" shall have the mean- ings, respectively, assigned to thetan in the Income-tax Act, 1961;

27 of 1957.

43 Of 1961.

(B) in sub-section, (2), to clause (c), the following proviso shall be' added, namely: —

"Provided that no deduction of income-tax shall be made by the Trust, where the units in respect of which income is distributed to—

(i) an individual who is an Indian or a person of Indian origin, or

(ii) a Hindu undivided family,

46 of 1973.

not resident in India, have b^en acquired front the Trust, out of funds in a Non-resident (External) Account maintained with any bank in India or by the remittance of funds in foreign exchange, in accordance, in either case, with the provisions of the Foreign. Exchange Regulation Act, 1973, or any rules or orders made thereunder.".

3. (1) The Unit Trust of India (Amendment) Ordinance, 1975, is 18 of 1975.

hereljy repealed.

Repeal and saving.

(2) Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of the principal Act as amended by this Act, as if this Act had come into, force on the 31st day of October, 1975.

STATEMENT OF OBJECTS AND REASONS

Government have recently be'en examining various suggestions to mobilise the savings of non-resident Indians and aliens of Indian origin living abroad and to facilitate investment by them in India. At present, investments made by non-resident Indiana and aliens of Indian origin, in fixed deposits with Commercial Banks out of the Non-Resident (Ex- ternal) Accounts are totally exempt from payment of Income Tax and Wealth! Tax. In order to make the investments in units of the Unit Trust of India also attractive and to encourage the flow of foreign ex- change into the country, the President promulgated the Unit Trust of India (Amendment) Ordinance, 1975 on 31st October, 1975 amending the Unit Trust of India Act, 1963.

2. The Ordinance provides that the income earned from units of the Unit Trust of India purchased by non-resident Indians and aliens of Indian origin from Non-Resident (External) Accounts or through re- mittance of foreign exchange will be free of income tax. The Ordinance further provides that investments in unitsi by the above mentioned persons, either from Non-Resident (External) Accounts or through re- mittance of foreign exchange, will also be free ofj wealth tax.

3. The present Bill seeks to replace the said Ordinance.

NEW DELHI;

The 30th December, 1975. SUSHILA ROHATGI.

PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA

tCopy of letter No. F. 2/17/75-CCI (INV)-21, dateld the 2nd January, 1976 from Shrimati Sushila Rohatgi, Deputy Minister in the Ministry of Finance to the Secretary-General, Lok Sabha.]

The President having been informed of the Bill further to amend the Unit Trust of India Act, 1963, has recommended under article 117(1) and 274(1> of the Constitution, the introduction of the Bill in Lok Sabha.

BILL NO. 12 OF 1976

A Bill to provide for voluntary disclosure of income and wealth and for

matters connected therewith, or incidental thereto.

BE it enacted by Parliament in the Twenty-sixth Year of the Republic

of India as follows: —

1. (2) This Act may be called the Voluntary Disclosure of Income

and Wealth Act, 1976.

(2) If extends to the whole of India.

(3) It shall be deemed to have come into force on the 8th day of

Short title, extent and com- mence- ment.

October. 1975.

2, In this Act, unless the context otherwise requires,—

DeflnltlonB.

(a) (i)"Gold (Control) Act" means the Gold (Control) Act,

1968;

45 of 1968.

(ii) "Income-tax Act" means the Income-tax Act, 1961;

43 of 1961.

(in) "Wealth-tax Act" means the Wealth-tax Act, 1957;

27 of 1967.

(b) all other words and expressions used in this Act but not defined and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act.

Charge of 3. (2) Subject to the provisions of this Act, where any person makes, on or after the date of commencement of this Act but before the 1st day of January, 1976, a declaration in accordance with the provisions of section 4 in respect of any income chargeable to tax under the Indian Income-tax Act, 1922 or the Income-tax Act for any assessment year— 11 of 1922.

income- tax on voluntarily disclosed income.

(a) for which he has failed to furnish a return under section 139 of the Income-tax Act, or

(b) which he has failed to disclose in a return of income fur- nished by him under the Income-tax Act before the date of com- mencement of this Act, or

11 of 1922.

(c) which has escaped assessment by reason of the omission or failure on the part of such person to make a return under the Indian Income-tax Act, 1922 or the Income-tax Act or to disclose fully and truly all material facts necessary tor his assessment or otherwise,

11 of 1922.

then, notwithstanding anything contained in the Indian Income-tax Act, 1922 or the Income-tax Act or in any Finance Act, income-tax shall be charged in respect of the income so declared (such income being here- inafter referred to as the voluntarily disclosed income) at the rate or rates specified in the Schedule.

(2) Nothing contained in sub-section (1) shall apply in relation to—

(i) the income assessable for any assessment year for which a notice under section 139 or section 148 of the Income-tax Act has been served upon such person and the return has not beefo fur- nished before the commencement of this Act;

(ii) where any books of account, other documents, money, bullion, jewellery or other valuable articles or things belonging to the person making the declaration under sub-section (1) (here- after in this section, in sections 4 to 13 and in the Schedule referred to as the declarant) have been seized as a result of any search under section 132 of the Income-tax Act or under section 37A of the Wealth-tax Act, the income in respect of the previous year in which such search was made or any earlier previous year.'

(3) In addition to the amount of income-tax to be paid under sub- section (1), the declarant shall invest a sum equal to five per cent, of the amount of the voluntarily disclosed income in such securities as the Central Government may notify in this behalf in the Official Gazette.

4. (1) The declaration under sub-section (1) of section 3 shall be made to the Commissioner and shall be in such form and shall be veri- fied in such manner as may be prescribed by rules made by the Board.

Particulars to be furnished in dec- laration.

(2) The declaration shall be signed—

(a) where the declarant is an individual, by the individual himself; where such individual is absent from India, by the individual concerned or by some person duly authorised by him in this behalf; and where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf;

(b) where the declarant is a Hindu undivided family, by the karta, and where the karta is absent from India or is mentally incapacitated from attending to his affairs, by any other adult mem- ber of such family;

(c) where the declarant is a company, by the managing director thereof, or where for any unavoidable reason such managing director is not able to sign the declaration or where there is no managing director, by any director thereof;

(d) where the declarant is a firm, by the managing partner thereof, or where for any unavoidable reason such managing part- ner is not able to sign the declaration, or where there is no mana- ging partner as such, by any partner thereof, notj being a minor;

(e) where the declarant is any other association, by any mem- ber of the association or the principal officer thereof; and

(f) where the declarant is any other person, by that person or by some person competent to act on his behalf.

(3) Any person, who has made a declaration under sub-section (1) of section 3 in respect of his income, or as a representative assessee in respect of the income of any other person, shall not be entitled to make any other declaration under that sub-section in respect of his Income or, as the case may be, the income of such other person, and any such other declaration if made, shall be deemed to be void.

5. (I) Subject to the provisions of sub-section (2), the income-tax payable under this Act in respect of the voluntarily disclosed Income shall be paid by the declarant before making the declaration and the declaration shall be accompanied by proof of payment of such tax.

Time for payment of income- tax and for invest, ment in notified s"curitles.

(2) If the Commissionef is satisfied, on an application made in this behalf by the declarant, that the declarant is unable, for good and suffi- cient reasons, to pay the full amount of income-tax in respect of the voluntarily disclosed income in accordance with sub-section (1), he may extend the time for payment of the amount which remains unpaid or allow payment thereof by instalments if the declarant furnishes ade- quate security for the payment thereof; so, however, that an amount which is not less than one-half of the amount of Income-tax payable in respect of the voluntarily'disclosed income shall be paid on or before the 31st day of March, 1976 and the remainder, if any, on or before the 31st day of March, 1977.

(3) The security required to be furnished by a declarant for the purposes of sub-section (2) shall be in such form and in such manner as the Commissioner may, In his discretion, direct.

(4) The investment in the securities referred to In sub-section (3) of section 3 shall bo made by the declarant within thirty days from the date on which the declaration is made by him under sub-section (1) of that section.

Interest payable by declarant 6, If the amount of income-tax payable in respect of the voluntarily disclosed income is not paid on or before the 31st day of March, 1976, the declarant shall be liable to pay simple Interest at twelve per cent per annum on the amount remaining unpaid from the 1st day of April, 1976 to the date of payment and the provisions of the Income-tax Act and the rules made thereunder shall, so far as may be, apply as if the

interest payable under this section were interest payable under sub- ection (2) of section 220 oi" that Act.

Mode of recovery.

7. (1) If the declarant fails to pay the income-tax in respect of the voluntarily disclosed income within the time allowed under sub-section (2) of section 5 or to invest the amount required to be invested in the securities referred to in sub-section (3) of section 3 within the time specified in sub-section (4) of section 5, the declarant shall be deemed to be in default.

(2) The provisions contained in sections 221 to 227, 229, 231 and 232

of the Income-tax Act and the Second and Third Schedules to that Act and any rules made thereunder shall, so far as may be, apply as if the said provisions were provisions of this Act and referred to income-tax and sums payable by way of penalty and interest under this Act instead of to tax and sums by way of penalty and interest payable under that Act and to the declarant instead of to the assessee.

(3) Any arrears in respect of the amount required to be invested by the declarant in the securities referred to in sub-section (3) of section 3 shall be recoverable in accordance with the provisions of subjection (2) as if such arrears were arrears of income-tax and the amount so recovered shall be utilised fox the purchase of such securities in the name of the declarant.

8. (1) The amount of the voluntarily disclosed income shall not be included in the total income of the declarant for any assessment year under the Indian Income-tax Act, 1922 or the Income-tax Act, or the Excess Profits Tax Act, 1940 or the Business Profits Tax Act, 1947 or the Super Profits Tax Act, 1963 or the Companies (Profits) Surtax Act, 1964, if the following conditions are fulfilled, namely: —

11 of 1922. 15 of 1940. 21 of 1947. 14 of 1963. 7 of 1964.

Voluntari- ly disclosed Income not to be Included In the total income.

(i) the declarant credits such amount in the books of account, If any, maintained by him for any source of income or in any other record, and intimates the credit so made to the Income-tax Officer;

(if) the income-tax in respect of the voluntarily disclosed income

is paid by the declarant; and

(iii) the amount required to be invested in the securities refer- red to in sub-section (3) of section 3 is so invested by the declarant.

(2) The Commissioner shall, on an application made by the declarant, grant a certificate to him setting forth the particulars of the voluntarily disclosed income, the amount of income-tax paid in respect of the same, the amount of investment made in the securities referred to in sub- section (3) of section 3 and the date of payment and investment.

9. The declarant shall nqt be entitled, in respect of the voluntarily disclosed income or any amount of income-tax paid thereon, to reopen any assessment or reassessment made under any of the Acts mentioned in sub-section (1) of section 8 or claim any set off or relief in any appeal, reference or other proceeding' in relation to any such assessment or reassessment.

Voluntari- ly disclos- ed Income not to affect finality of com- pleted assess• merits, etc.

10. Any amount of income-tax paid in pursuance of a declaration made under sub-section (1) of section 3 shall not be refundable under any circumstances.

Income-

tax !n

respect

of volun-

tarily

disclosed

income

not refun-

dable.

11. Notwithstanding anything contained in any other law for the time being in force, nothing contained in any declaration made under sub- section (1) of section 3 shall be admissible in evidence against the de* clarant for the purpose of any proceeding relating to imposition of penalty or for the purposes of prosecution under any of the Acts men- tioned in sub-section (1) of section 8 or the Wealth-tax Act.

Declara-

tion not

admissi-

ble in

evidence

against

declarant.

Secrecy of decla- ration, 12. (1) All particulars contained in a declaration made under sub- section (1) of section 3 shall be treated as confidential and, notwith- standing anything contained in any law for the time being in force, no court or any other authority shall be entitled to require any public servant or the declarant to produce before it any such declaration or any part thereof or to give any evidence before it in respect thereof.

(2) No public servant shall disclose any particulars contained in any such declaration except to any officer employed in the execution of any off the Acts mentioned in sub-section (1) of section 8, or the Wealth-tax Act, or to any officer appointed by the Comptroller alnd Auditor-Gefieral of India or the Board to audit income-tax receipts or refunds.

(3) The provisions of sub-sections (1) and (2) shall apply in relation to all documents and particulars relating to the investment in the securi- ties referred to in sub-section (3) of section 3 (including the payment of interest on such securities) as they apply in relation to the declaration made under sub-section (1) of that section and the particulars contained therein.

13. (1)! Where the voluntarily disclosed income is represented by cash (including bank deposits), bullion, investment in shares, debts due from other persons, commodities or any other assets specified in the de- claration made under sub-section (I) of section 3—

Exemption from wealth- tax la respect of assets specified in declara- tion.

(a) in respect of which the declarant has failed to furnish a return under section 14 of the Wealth-tax Act for the assessment year commencing on the 1st day of April, 1975 or any earlier assess- ment year or years, or

(b) which have not been shown In the return of net wealth furnished by him for the said assessment year or years, or

(c) which have been understated in value in the return of net wealth furnished by him for the said assessment year or years,

then, notwithstanding anything contained in the Wealth-tax Act or any (rules made thereunder,—

(1) wealth-tax shall not be payable by the declarant in respect of the assets referred to in clause (a) or clause (b) and such, assets

shall not be included In his net wealth for the said assessment year or years;

(ii) the amount by which the value of the assets referred to in clause (c) has been understated in the return of net wealth for the said assessment year or years, to the extent such amount does not exceed' the voluntarily disclosed income utilised for acquiring such assets, shall not be taken Into account in computing the net wealth of the declarant for the said assessment year or years.

Explanation.—Where a declaration under sub-section (1) of sectiojn 3 is made by a firm, the assets referred to In clause (i) or, as the case may be, the amount referred to in clause (ii) shall not be taken into account in computing the net wealth of any partner of the firm or, as the case may be, in determining the value of the interest of any partner in the firm.

(2) The provisions of sub-section (1) shall not apply unless the conditions specified In sub-section (1) of section 8 are fulfilled by the declarant.

(3) All words and expressions used in this section and In section 15 but not defined and defined in the Wealth-tax Act shall have the mean- ings respectively assigned to them in that Act.

Disclo- sure of income In cases of search and seizure.

14. (1) Subject to the provisions of this section, where any books of account, other* documents, money, bullion, jewellery or other valuable articles or things belonging to a person have been seized as a result of a search under section 132 of the Income-tax Act or section 37A of the Wealth-tax Act and such person (hereafter in this section referred to aa the declarant) makes, on or after the date of commencement of this Act but before the 1st day of January, 1976, a declaration in accordance with sub-section (2) In respect of any income relating to the previous year in which such search was made or any earlier previous year—

(a) for which he has failed to furnish a return under section 139 of the Income-tax Act, or

(b) which he has failed to disclose in a return of income fur- nished by him under the Income-tax Act before the commencement of this Act, or

11 of 1922.

(c) which has escaped assessment by reason of the omission or failure on the part of such person to make a return under the Indian Income-tax Act, 1922, or the Income-tax Actf or to disclose fully and truly all material facts necessary for his assessment or otherwise,

then, notwithstanding anything contained in any of the Acts mentioned In sub-section (1) of section 8 or the Wealth-tax Act, the amount of income so declared or, as the case may be, the value of the assets representing such Income, shall not be taken into account for the purposes of—

(i) payment of interest by the declarant under sub-section (8) of section 139 of the Income-tax Act:

(Ii) payment of interest by the declarant under section 215 or section 217 of the Income-tax Act or \h$ corresponding provisions of the Indian Income-tax Act, 1922;

11 of 1922,

(Hi) imposition of penalty on the declarant under the provisions of any of the said Acts, except under section 221 of the Income-tax Act or the corresponding provisions of any of the other said Acts; and

(iv) prosecution of the declarant under the provisions of any of the said Acts.

(2) The declaration under sub-section (1) shall be made to the Commissioner and shall be in such form and shall be verified in such manner as may be prescribed by rules made by the Board.

(3) A declaration under this section shall be signed by the person specified in sub-section (2) of section 4 as if the declaration had been made under that section.

(4) A copy of the declaration made by the declarant under sub- section (1) shall be forwarded by the Commissioner to the Income-tax Officer and the information contained therein may be taken into account for the purposes of the proceedings relating to assessment or reassess- ment of the income of the declarant under the provisions of any of the Acts mentioned in sub-section (1) of section 8 or the Wealth-tax Act.

(5) The immunity provided under sub-section (1) shall not be avail- able to the declarant unless the tax chargeable in respect of the income of the previous year or years for which the declaration has been made is paid by the declarant in accordance with the provisions of section 5.

Eocplanation.—For the purposes of this sub-section, tax chargeable in respect of the income of any previous year for which the declaration is made shall be,—

(a) where the declarant has not furnished a return in respect of the total income of that year and no assessment has been made in respect of the total income of that year, the tax payable on the income declared under sub-section (1) for that year as if such in- come were the total income;

(b) where the declarant has furnished a return in respect of the total income of that year and no assessment has been made in pursuance of such return, the tax payable on the aggregate of the total income returned and the income declared under sub-section (1) for that year as if such aggregate were the total income, as reduced by the tax payable on the basis of the total income returned; and

(c) where an assessment in respect of the total income of that year has been made, the tax payable on the aggregate of the total income as assessed and the income declared under sub-section (1) for thrfti year as if such aggregate were the total income, as reduced by the tax payable on the basis of the total income as assessed.

11 of 1822.

(6) Where any tax is paid by the declarant in accordance with the provisions of section 5, read with sub-section (5) of this section, credit Wherefor shall be given to the declarant in the assessment made under the Indian Income-tax Act, 1922, or, as] the case may be, the Income-tax Act, in respect of his total income of the previous year or years.

iZ) Nothing in sub-section (1) shall apply in relation to any income which has been included in !the total income of the declarant In any assessment made by the Income-tax Officer before the date on which the declaration under that sub-section is made.

15. (1) Subject to the provisions of this secMon, where any person makes, on or after the date of commencement of this Act but before the 1st day of January, 1976, a declaration in respect of—

Voluntary disclosure "f wealth.

(a) the net wealth chargeable to wealth-tax for any assessment year for which he has failed to furnish a return under section 14 of the Wealth-ttax Act; or

(b) the value of the assets which has not been disclosed, or the value of the assets which has been understated, in any return of net wealth for any assessment year,

then, notwithstanding anything contained in that Act, the net wealth, or, as the case may be, •the value so declared shall not be taken into account for the purposes of any proceedings relating to imposition of penalty on the person making the declaration under this sub-section (hereafter in this secWon referred to as the declarant) or for the purposes of the prosecution of the ddclarant under) that Act:

Provided that—

(i) nothing contained in clause (a) shall apply in relation to the net wealth assessable for any assessment year for which a notice under section 14 or section 17 of that Act has been served upon the declarant before tthe commencement of this Act;

(ii) nothing contained in clause (b) shall apply in relation to so much of the value of such assets as has been assessed in any assess- ment for the relevant assessment year made by the Wealth-tax Officer before tthe date on which the declaration under this sub- section is made.

(2) The declaration under sub-section (1) shall be made to the Com- missioner and shall be in such form and shall be verified in such manner 4S may be prescribed by rules made by the Board.

(3) A declaration under sub-section (1) shall be signed by •the person specified in sub-section (2) of section 4 as if the declaration had been made under thah) section.

(4) A copy of the declaration made by the declarant under sub- section (-/) shall be forwarded by the Commissioner to the Wealth-tax Officer and the Information contained therein may be taken into account for the purposes of the proceedings relating to assessment or reassessment of the net wealth of the declarant under the provisions of the Wealth- tax Act.

(5) The immunity provided under sub-section (2) shall not be avail- able to the declarant unless ttie weaMi-tax chargeable in respect of the net wealth for the assessment year or years for which the declaration has been made is paid by the declarant in accordance with the provisions of sec"tWn 5 and the declarant invests in the securities referred to in

Bub-section (3) of section 3 within the time specified in sub-section (4) Ol section 5 the sum specified in sub-section (6) of this section.

Explanation.—For the purposes of this sub-section, wealth-tax chargeable in respect of the net wealth for any assessment year for which the declaration is made shall be—

(a) in a case falling under clause (a) of sub-section (1), the wealth-tax payable in respect of the net wealth declared under that clause for that year;

(b) in a case falling under clause (b) of sub-section (1),—

(i) where no assessment has been made in pursuance of the return of net wealth furnished by the declarant, the wealth-!t'ax payable on the aggregate of the net wealth returned and the value declared under Khat clause for that year as if such aggre- gate were the net wealth, as reduced by the wealth-tax payable on the basis of the net wealth returned;

(i(i) where an assessment has been made in pursuance of the return of net wealth furnished by the declarant, the wealth- tax payable on the aggregate of the net wealth as assessed and the value declared under that clause for that year as if such aggregate were the net wealth, as reduced by the wealth-tax payable on the net wealth as assessed.

(6) The sum referred to in sub-section (5) shall be,—

(a) where the declaration has been made In respect of one assessment year, a sum equal to two and a half per cent, of tfhe amount of net wealth declared under clause (a) of subsection (7), or, as the case may be, the value declared under clause (b) of that sub-section;

(b) where the declaration has been made in respect of more than one assessment year, a sum equal to two and a half per cent, of the net wealth declared under clause (a) of subjection (7), or, as the case may be, the value declared under clause (b) of that sub-section, In respect of the last of such assessment years.

(7) Where any wealth-tax Is paid by the declarant for any assessment year in accordance with the provisions of section 5, read with sub- section (5) of this section, credit therefor shall be given !to the declarant in the assessment made under the Wealth-tax Act for that year.

16. (7) Where—

(a) the voluntarily disclosed income declared under sub-section (7) of section 3 or any part thereof, or

(b) the net wealth, or the assets the value whereof is, declared under sub-section (7) of section 15 OT any part of such net weaMi of assets,

Immunity

from

penalty,

prosecu-

tion,

etc.,

under

certain

Acto.

52 of 1902.

is or are represented by gold, then, notwithstanding anything contained In the Customs Act, 1962 or the Gold (Control) Act, such gold shall not be liable to confiscation under either of the said Acts and the person making the declaration shall not be liable to imposition of any penalty

or infliction of any punishment under either of the said Acts for any, act or omission in relation to such gold, if. he fulfils the following conditions, namely:—

(A) in a case where the gold is owned, possessed, held or con- trolled by the person making the declaration (such gold being owned, possessed, held or controlled by him in his capacity as a licensed dealer), necessary entries are made by him in the accounts, registers and documents maintained under the Gold (Control) Act, under intimation to the Gold Control Officer of the rank of an Assistant Collector of Central Excise or of Customs before the 1st day of February, 1976 and such other steps as are necessary for him. Wo comply with the requirements of that Act in relation to such gold are taken by him before that date;

(B) in any other case —

(i) where the gold is an article or ornament or both and the weight of such article or ornament, or the aggregate weight of both, together wMi the weight of any other gold (being an article or ornament) owned, possessed, held or controlled by him, exceeds the limits specified in sub-section (5) of section 16 of the Gold (Control) Act, such article or ornament or both, as the case may be, is or are declared in the form prescribed under sub-section (i), and in the manner specified in sub-section (8), of that section before the 1st day of February, 1976;

(ii) where the gold Is primary gold, such gold is either sold to any licensed dealer under intimation to the Gold Control Officer of the rank of an Assistant Collector of Central Excise or of Customs before the 1st day of February, 1&76 or is made into ornaments and a declaration in this behalf is made In the form prescribed under sub-section (1), and in the manner specified in sub-section (8), of section 16 of the Gold (Control) Act, before tthat date.

(2) Notwithstanding anything contained in the Gold (Control) Act, any primary gold referred to in sub-clause (ii) of clause (B) of sub- section (1) may be sold by the person making the declariation ft'o any licensed dealer and such licensed dealer may purchase such gold, pro- vided that the total quantity of primary gold (not being in the form of standard gold bars) in the possession or custody of such dealer and the quantity of primary gold (not being in the form of standard gold bars) to be so purchased does not exceed the limit specified in clause (a) or clause (6) or clause (c) or, as the case may be, clause (d) of the proviso to sub-setftlon (1) of section 32 of that Act.

(3) Where a declaration Is made under subrclause (i) or sub-clause (Ii) of clause (B) of sub-section (1), the provisions of section 16 of the Gold (Control) Act, shall, so far as may be, apply as if such declaration were a declaration made under that section.

(4) The immunity provided under sub-section (1) shall, in a case where the person making the declaration is a firm, also extend to the partners of the firm.

(5) Nothing in this section shall apply in relation to any gold,—

52 of 1962.

(a) which has been seized or confiscated under the Customs Act, 1962 or the Gold (Control) Act, before the declaration under sub-section (1) of section 3 or, as the case may be, under sub-section (i) of section 15, is made; or

(b) which is seized as a result of any search made under either of tthe said Acts where such search had commenced before such declaration is made; or

(c) in respect of which any other proceedings under either of the said Acts are pending before any authority before such declaration is made.

(6) For the removal of doubts, it is hereby declared that nothing in this section shall be construed as exempting any person from discharging any obligation under the Gold (Control) Act, on or after the 1st day of February, 1976 in relation to the Rold referred to in this section.

Explanation.—For the purposes of this section, the expressions "article", "gold", "Gold Control Officer", "licensed dealer", "ornament", "primary gold" and "standard gold bar" shall have Uhe meanings respectively assigned to them in the Gold (Control) Act.

17. The provisions of Chapter XV of the Income-tax Act relating to liability in special cases and of section 189 of that Act or of Chapter V of the Wealth-tax Act relating to liability to assessment in special cases shall, so far as may be, apply in relation to proceedings under this Act as they apply in relation to proceedings under the Income-tax Act or, as the case may be, the Wealth-tax Act.

Applicabi-

lity of

certain

provisions

of

Income-

tax Act

and of

Chapter V

of Wealth-

tax Act.

Removal

of

doubts.

18. For ltihe removal of doubts, it is hereby declared that, save as otherwise expressly provided in the Explanation to sub-section (1) of section 13 and in sub-section (4) of section 16, nothing contained in ttds Act shall be construed as conferring any benefit, concession or immunWy on any person other than the person making the declaration under this Act.

19. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty.

Power to remove difficul- ties.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.

20. (1) The Board may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.

Power to make rules.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for,—

(a) the form in which a declaration may be made under sub- section (1) of section 3 and the manner in which it may be varified;

(b) the form in which a declaration may be made under sub- section (1) of section 14 and the manner in which it may be verified; (c) the form in which a declaration may be made under sub- jection (2) of section 15 and the manner m which it may be verified,

(3) The Central Government shall cause every rule made under this Act to be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything pre- viously done under that rule.

02 of 1974. 21, The provisions of this Act shall not apply to any person in respect of whom an order of detention has been made under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974:

Provi- sions of Act not to apply to certain persons.

Provided thai:—

(i) such order of detention, being an order to which the provi- sions of section 9 or section 12A of the said Act do not apply, has not been revoked on the report of the Advisory Board under section 8 of the said Act or before the receipt of the report of the Advisory Board; or

(ii) such order oi detention, being an order to which the provi- sions of section 9 of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the review under sub- section (3) of section 9, or on the report of the Advisory Board under section 8, read with sub-section (2) of section 9, of the said Act; or (Hi) such order of detention, being an order to which the provi- sions of section 12A of the said Act apply, has not been revoked before the expiry of the time for, or on the basis of, the first review under sub-section (3) of that section, or on the basis of the report of the Advisory Board under section 8, read with sub-section (6) of section 12A, of the said Act; or

(iv) such order of detention has not been set aside by a court of competent jurisdiction.

ID of 1076.

Repeal and oavin g,

22. (I) The Voluntary Disclosure of Income and Wealth Ordinance, 1975 and the Voluntary Disclosure of Income and Wealth (Amendment) Ordinance, 1975 are hereby repealed.

23 of 1975.

15 Of 1978.

23 of 1975.

(2) Notwithstanding such repeal, anything done or any action taken under the Voluntary Disclosure of Income and Wealth Ordinance, 1975 as amended by the Voluntary Disclosure of Income and Wealth (Amendment) Ordinance, 1975 shall be deemed to have been done or taken under the corresponding provision of this Act.

15 of 1975.

#oM078.

(3) Where during the period commencing on the 8th October^ 1975 and ending with the 28th November, 1975 any person had furnished security in accordance with sub-section (3) of section 5 oi the Voluntary Disclosure of Income and Wealth Ordinance, 1975 as it stood immediately before Its amendment by the Voluntary Disclosure of Income and Wealth (Amendment) Ordinance, 1975, such person shall be deemed to have furnished adequate security for the purposes of sub-section (2) of sec-, Won 5 of this Act.

THE SCHEDULE

[See section 3(1)]

Rates 0/ income-tax

(a) In the case of a declarant, being a company, at the rate of 60 per

cent, of the voluntarily disclosed income.

(b) In the case of a declarant, being a person other than a company,—

(1) where the voluntarily dis- closed Income does not ex- ceed Rs. 25,000

(2) where the voluntarily dis- closed Income exceeds Rs. 25,000 but does not ex- ceed Rs. 50,000

(3) where the voluntarily dis- closed income exceeds Rs- 50,000

25 per cent, of the voluntarily

disclosed income;

Rs. 6,250 plus 40 per cent. 0$ the amount by which the volun- tarily disclosed income ex- ceeds Rs. 25,000;

Rs. 16,250 plus 60 per cent, of the amount by which the voluntarily disclosed income exceeds Rs. 50,000.

STATEMENT OF OBJECTS AND REASONS

The President promulgated the Voluntary Disclosure of Income and Wealth Ordinance, 1975 on October 8, 1975 to provide for voluntary dis- closure of income and wealth and for matters connected therewith or incidental thereto. The scheme of voluntary disclosure cotained in the Ordinance offered an opportunity to persons who had evaded tax in the' past to declare their undisclosed income and wealth, pay tax therebn on a reasonable basis and return to the path of civil responsibility' in future. The operation of the scheme is restricted to declarations made during the period from 8th October, 1795 to 31st December, 1975. In order to enable persons to disclose their concealed income' or wealth represented by gold and articles or ornaments made of gold and with a view to removing certain practical difficulties experienced in the operation of the scheme of voluntary disclosure contained in the Ordinance) of October 8, 1975, the President promulgated on November 29, 1975 another Ordinance, namely, the Voluntary Disclosure of Income and Wealth (Amendment) Ordinance, 1975.

2. The Bill seeks to replace the Voluntary Disclosure of Income and Weialth Ordinance, 1975, as amended by the Voluntary Disclosure of Income and Wealth (Amendment) Ordinance, 1975.

3. The Notes on clauses appended to the Bill explain in detail the various provisions thereof.

NEW DEUHI;

The 28th December, 1975. PRANAB MUKHERJEE.

PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA

[Extract from letter No. F. No. 132 (6)/75-TPL, dated the 3rd January, 1976 from Shri Pranab Kumar Mukherjee, Minister of State in charge of the Department of Revenue and Banking to the! Secretary- General, Lok Sabha.]

* * * *

The President, having been informed of the subject matter of the proposed Bill, has recommended under article 117(1) and article 274(1) of the Constitution, the introduction, of the Bill in Lok Sabha.

Notes on clauses

Clause 2 contains definitions of certin terms and expressions used in the Bill.

Clause 3 provides for charge of income-tax on the income declared by a person under this clause.

Sub-clause (1) provides that any person may make a declaration on or after the 8 th October, 1975 but before the 1st January, 1976 in respect of any income chargeable to tax under the Indian Income-tax Act, 1922 or the Income-tax Act. 1961 for any assessment year up to and including the assessment ye&r 1975-76 (a) for which he has failed to furnish a return under section 139 of the Income-tax Act, 1961; or (b) which he has failed to disclose in a return of income furnished by him under that Act before the 8th October, 1975; or (c) which hag escaped assessment by reason of his omission or failure to make a return under the Indian Income-tax Act, 1922 or the Income-tax Act, 1961 or to disclose fully and truly all material facts necessary for his assessment or otherwise. The income so declared (hereinafter referred to as the voluntarily disclosed income) will be charged to tax at the rate or rates specified in the Sche- dule to the Bill.

Sub-clause (2) provides that a declaration under sub-clause (1) cannot be made* in relation to (i) the income assessable for any assessment year for which a notice under section 139 or section! 148 of the Income- tax Act, 1961 calling for a return of income has been served upon the person making the declaration (hereinafter referred to as the declarant) and the return has not been furnished before 8th October, 1975; and (ii) where any books of account, other documents, money, bullion, jewel- lery or other valuable articles or things belonging to the declarant have been seized as a result of any search under the Income-tax Act, 1961 or the Wealth-tax Act, 1957, the income) in respect of the previous year in which such search was made or any earlier previous year.

Sub-clause (3) provides! that, in addition to the amount of income- tax payable on the voluntarily disclosed income at the rate or rates specified in the Schedule to the Bill, the declarant will be required to invest a sum equal to five per cent, of the amount of the voluntarily disclosed income in notified Government securities.

Clause (4) contains provisions relating to particulars to be furnished in a declaration under clause 3 of the Bill.

Sub-clause (1) provides that the declaration shall be made to the Commissioner of Income-tax and shall be in such form and shall be verified in such manner as may be prescribed by rules made by the Central Board, of Direct Taxes,

Sub-clause (2) specifies the persons who are competent to sign the declaration under clause 3.

Sub-clause (3) provides that any person who has made a declaration under clause 3 in respect ol his income or (as a representative assessee) in respect of the income of any other person will not be entitled to make any other declaration under that clause in respect of his income or, as the case may be, the income of such other person and such other declara- tion, if made, shall be deemed to be void.

Clause 5 contains provisions relating to the time for payment of income-tax and for investment in notified Government securities.

Sub-clause (1) provides that the income-tax payable in respect of the voluntarily disclosed income shall be paid by the declarant before mak- ing the declaration and the declaration shall be accompanied by proof of payment of the tax.

Sub-clause (2) empowers the Commissioner of Income-tax to extend the time for payment of the tax or to allow payment thereof by instal- ments if he is satisfied that the declarant is unabld, for good and suffi- cient reasons, to pay the full amount of income-tax in respect of the voluntarily disclosed income in accordance with sub-clause (1). It will, however, be obligatory for the declarant to pay at least one-half of the income-tax in respect of the voluntarily disclosed income" on or before 31st March, 1976 and the balance, if any, on or before 31st March, 1977. Time for payment of lax will be allowed only if the declarant furnishes adequate security for payment thereof.

Sub-clause (3) provides that security for payment of the unpaid tax shall be in such form and in such manner as the Commissioner of Income- tax may direct.

Sub-clause (4) provides that the investment in notified Government securities referred to in sub-clause'' (3) of clause 3 shall be made by the declarant within thirty days from the date on which the declaration is made.

Clause 6 provides that the declarant will be liable to pay simple in- terest at 12 per cent, per annum on the tax remaining unpaid from 1st April, 1976 to the date of payment.

Clause 7 contains provisions for the recovery of income-tax in respect of the voluntarily disclosed income and the amount required to ba invested under clause 3.

Sub-clause (1) provides that a declarant who fails to pay the income- tax in respect of the voluntarily disclosed income or to make the invest- ment in notified Government securities within the specified time will be deemed to be in default.

Sub-clause (2) extends certain provisions contained in the Income-tax Act 1961 for levy of penalty for default in payment of tax and for recovery of tax, etc., payable under that Act for the purposes of recovery of tax, penalty and interest payable under the Bill.

Sub-clause (3) provides that any arrears in respect of the amount required to be invested in notified Government securities will be recover- able in accordance with the provisions of sub-clause (2) as if such arrears were arrears of income-tax. The amount so recovered will be utilised for the purchase of the notified Government securities in the name of the declarant.

Clause 8 provides that the voluntarily disclosed income will not be included in the total income of the declarant for any assessment year under the Indian Income-tax Act, 1922, the Income-tax Act, 1961, the Excess Profits Tax Act, 1940, the Business Profits Tax Act, 1947, the Super Profits Tax Act, 1963 or the Companies (Profits) Surtax Act, 1964, if certain conditions specified in this behalf are fulfilled. These condi- tions are that (i) the' declarant credits the amount of the voluntarily disclosed income in the books of account, if any, maintained by him or in any other record and intimates the credit so made to the Income-tax Officer; (ii) the income-tax in respect of the voluntarily disclosed income is paid by the declarant; and (iii) the amount required to be invested in notified Government securities is invested by the declarant. It is further provided that the Commissioner of Income-tax shall, on an application made by the declarant, grant a certificate to him setting forth the particulars of the voluntarily disclosed income, the amount of in- come-tax paid in respect of the same, the amount of investment made in notified Government securities and the date of payment and investment.

Clause 9 provides that a declaration under clause 3 will not affect the finality of completed assessments and the declarant will not be entitled to claim any set off or relief in respect of the voluntarily disclosed income in any appe'al, reference or other proceeding.

Clause 10 provides that the income-tax paid in respect of the volun- tarily- disclosed income shall not be refundable under any circumstances.

Clause 11 provides that, notwithstanding anything contained in any other law for thy lime being in force, nothing contained in any declara- tion made under clause 3 shall be admissible in evidence against the declarant for the purposes of any proceeding relating to imposition of penalty or for the purposes of prosecution under any of the Acts men- tioned in sub-clause (1) of clause 8 of the Bill or the Wealth-tax Act, 1957.

Clause 12 provides for the secrecy of declaration.

Si.tb-ctau.ve (1) provides that all particulars contained in a declara- tion under clause 3 shall be treato'd as confidential and nd court or any other authority shall be entitled to require any public servant or the declarant to produce before it any such declaration or any part thereof or to give* any evidence before it in respect thereof.

Sub-clause (2) provides that no public servant shall disclose any particulars contained in such a declaration except to any officer employed in the execution of the Acts mentioned in sub-clause (1) of clause 8 or the¹ Wealth-tax Act, or to any officer appointed by the Comptroller and Auditor-General of India or the Central Board of direct Taxes to audit income-tax receipts or refunds.

Sub-clause (3) applies the aforesaid provisions in relation to all docu- ments and particulars relating to the investment in notified Government securities.

Clause 13 provides for exemption from wealth-tax in respect of assets

specified! in a declaration under clause 3.

Sub-clause (1) provides that where the. voluntarily disclosed income is represented by cash (including bank deposits), bullion, investment in shares, debts due from other persons, commodities or any other assets specified in the declaration under clause 3 of the Bill (a) In respect of which the declarant has failed to furnish a return under the Wealth-tax Act for any assessment year up to and including the assessment year 1975-76; or (b) which' have not been, shown in the return of net wealth furnished by him for the said year or years, then, notwithstanding any- thing contained in the Wealth-tax Act or any rules made thereunder, no wealth-tax shall be payable by the declarant in respect of such assets and they shall not be included in his net wealth' for the said assessment year or years. Where the voluntarily disclosed income is represented by assets which have been understated in value in the return of net wealth furnished by the declarant for the said year or years, the amount of the understatement, to the Extent the voluntarily disclosed income has been utilised for acquiring such assets, will not be included in the net wealth of the declarant for the said assessment year or years. The Explanation to this sub-clause provides that where a declaration under clause 3 is made by a firm, the assets or, as the case may be, the amount referred to above will not be taken into account in computing the net wealth of any partner of the firm or, as the case may be, in determining the value of thtf interest of any partner in the firm.

Sub-clause (2)¹ provides that the benefit conferred by sub-clause (1) shall not apply unless the conditions specified in sub-clause (1) of clause 8 are fulfilled by the declarant.

Clause 14 contains provisions for disclosure of income in cases of

search and seizure.

139(8) of the Income-tax Act, 1961 for delay or default ill furnishing the return of income; (ii) payment of interest by the declarant under section 215 or section 217 of the said Act or the corresponding provisions of the Indian Income-tax Act, 1922; (iii) imposition of penalty on the declarant under either of the said Acts (except penalty for default in payment of tax, etc.); and (iv) prosecution of the declarant under either of the said Acts.

Sub-clause (2) provides that the declaration under sub-clause '(1) shall be made to the Commissioner of Income-tax and shall be in such form and shall be verified in such manner as may be prescribed bx rules made by the Central Board of Direct Taxes.

Sub-clause^ (3) specifies the persons who are competent to sign a

declaration under this clause.

Sub-clause (4) provides¹ that a copy of the declaration shall be for- warded by the Commissioner of Income-tax to the Income-tax Officetr and the information contained therein may be taken into account for the purposes of the assessment of the declarant undtfr the Acts mentioned in sub-clause (1) of clause 8 or the Wealth-tax Act, 1957.

Sub-clause (5) provides that the immunity conferred by sub-clause (1) shall not be available unless the tax chargeable in respect of the income of the previous year or years for which the declaration has been made is paid by the declarant in accordance with the provisions of clause 5. The Explanation specifies the manner in which the tax charge- able in respect of the income of any previous year for which; the declara- tion is made is to be calculated.

on the declaiant or for the purposes of his prosecution under the wealth- tax Act. It will, however, not be permissible for a person to make a declaration in. relation to the net wealth assessable for any assessment year for which a notice ior furnishing the return has been served upon the declarant before the 8th October, 1975. It will also not be permissible to make a declaration in relation to so much of the value of such assets as has been assessed in any assessment for the relevant assessment year made by the Wealth-tax Officer before the date on which the declaration la made.

Sub-clause (2) provides that the declaration under this clause shall be made to the Commissioner of Income-tax and shall be in such form and shall be verified in such manner as may be prescribed by rules made by the Central Board of Direct Taxes.

Sub-clause (3) specifies the persons who are competent to sign a declaration under this clause.

Sub-clause (4) provides that a copy of the declaration shall be for- warded by the Commissioner oi income-tax to the Wealth-tax Officer and the information contained therein may be taken into account for the purposes of the assessment of the net wealth of the declarant under the Wealth-tax Act.

Sub-clause (5) provides that the immunity conferred by sub-clause (1) shall not be available to the dedaiant unless the wealth-tax chargeable in respect of the net wealth for the assessment year or years for which the declaration has been made is paid by the declarant in accordance with the provisions of clause 5 and the declarant invests, within thirty days of the date on which the declaration is made, the sum specified in sub-clause (6) in notified Government securities. The Explanation to this Sub- clause specifies the manner in which the wealth-tax chargeable in respect of the net wealth for any assessment year for which the declaration is made is to be calculated.

Sub-clause (6) specifies the sum to be invested in notified Govern- ment securities. It provides that where the declaration is made in respect of one assessment year, the amount required to be invested shall be a sum equal to 2| per cent, of the amount of the net wealth or, as the case may be, the value of assets declared in the declaration made under sub-clause (1). Where the declaration has been made in respect of more than one assessment year, the amount to be invested in such securities shall be a sum equal to 2£ per cent, of the net wealth or, as the case may be, the value of the assets so declared in respect of Ijhe last of such assessment years.

Sub-clause (7) provides that where' any wealth-tax is paid by the declarant for any assessment year in accordance with the provisions of the Bill, credit therefor shall be given to the declarant in the assessment made under the¹ Wealth-tax Act, 1957 for that year.

Clause 16 contains provisions for immunity from penalty, prosecu- tion, etc., under certain Acts in the case of a person making a declaration under clause 3 and clause 15 "f the Bill.

& * £• 2] T H fe O A Z E I TM OF I N D IA E X T R A O R D I N A RY

2 97

Sub-clause (1) provides that where the voluntarily disclosed income declared under clause 3 or the net wealth or the assets the value whereof is declared under sub-clause (1) of clause 15 is represented by gold, then, notwithstanding anything contained in the Customs Act, 1962 or the¹. Gold (Control) Act, 1968, such gold shall not be liable to confiscation under either of the said Acts and the person making the declaration shall not be liable to imposition of any penalty or infliction of any punishment under either of the said Acts for any act or omission in relation to such gold. "The immunity under this clause will be available only if the decla- rant fulfils the conditions specified in this behalf in sub-clause (1)(A) or," as the case may be, sub-clause (1) (B).

Sub-clause (2) and sub-clause (3) contain provisions which are ancillary! to the provisions contained in sub-clause (1).

Sub-clause (4) provides that the immunity conferred under sub- clause (1) shall, in a case where the person making the declaration is a firm, also extend to the partners of the firm.

Sub-clause (5) provides that the immunity conferred by sub-clause (1) shall not apply in relation to any gold (a) which has been seized! or confiscated under the Customs Act, 1962 or the Gold (Control) Act, 1968 before the declaration is made under clause 3 or, as the case may be, clause 15 of the Bill; or (b) which; is seized as a result of any search made under either of the said Acts in cases where such search has commenced before such declaration is made; or (c) in respect of which any other proceedings under either of the said Acts are pending before any autho- rity prior to the date of the declaration.

Sub-clause (6) clarifies that nothing in this clause shall be construed as exempting any person from discharging any obligation under the Gold (Control) Act, 1968 on or after 1st February, 1976 in relation to the gold specified in the declaration.

Clause 17 applies the provisions of Chapter XV of the Income-tax Act relating to liability in special cases and section 189 of the Income-tax Act relating to a firm which has be'en dissolved or the business or profession of which has been discontinued and the provisions of Chapter V of the Wealth-tax Act, relating to liability to assessment in special cases, to proceedings under the Bill.

Clause 18 clarifies that, except as otherwise expressly provided in the Explanation to sub-clause (1) of clause 13 and in sub-clause (4) of clause 16, nothing contained in the Bill shall be construed as conferring any benefit, concession or immunity on any person other than the person mak- ing the declaration.

Clause 19 empowers the Central Government to pass any order, not inconsistent with the provisions of the Bill, for removing any difficulty which may arise in giving effect to its provisions.

Clause 20 empowers the Central Board of Direct Taxes to make rules for earring out the provisions of the Bill.

Clause 21 provides that the provisions of the Bill shall not apply to any person in respect of whom an order of detention has been made under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 and such order of detention has not been revoked or set aside.

Clause 22 contains provisions for repeal and savings.

The Schedule to the Bill specifies the' rate or rates of income-tax appli-

cable in respect of the voluntarily disclosed income.