Subject NOT available

click here for IIIF manifest

REGISTERED No. D. (D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No. 3] NEW DELHI, MONDAY, FEBRUARY 28, 1983/PHALGUNA 9,1904

Separate paging is given to this Part in order that it may be filed

as a separate compilation

LOK SABHA

The following Bill was introduced in Lok Sabha on the 28th

February, 1983:—

BILL NO. 16 OF ,1983

A Bill to give effect to the financial proposals of the Centra

Government for the financial year 1983-84.

BE It enacted by Parliament in the Thirty-fourth Year of the Republic

of India as follows:—

CHAPTER I

PRILIMINARY

1. (1) This Act may be called the Finance Act, 1983.

Short title and

commencement.

(2) Save as otherwise provided in this Act, sections 2 to 43 and section

59 shall be deemed to have come into force on the 1st day of April, 1983.

CHAPTER II

RATES of INCOME-TAX

Income-tax.

2. (I) Subject to the provision, of sub-section. (2) and (3), for the

assessment year commencing on the 1st day of April, 1983, lnoome-tax

shall be charged at the rates specified in Part I of the First Schedule

and shall be increased,—

(a) In the cases to which Paragraphs A, B, C and D of that Part

apply, by a surcharge for purposes of the Union; and

(b) In the case, to which Paragraph E of that Part applles, by

a surcharge,

calculated in each case in the manner provided therein.

(2) In the cases to which Sub-Paragraph I or Sub-Paragraph II of

Paragraph A of Part I of the First Schedule applies, where the assessee

has, in the previous year, any net agricultural income exceeding six

hundred rupees, in addition to total income, and the total income

exceeds,—

(i) In a case to which the said Sub-Paragraph 1 applies, fifteen

thousand rupees, and

(1)

(ii) In a case to which the said Sab-Paragraph II applies, twelve

thousand rupees,

then,—

fa) the not agricultural Income shall be taken Into account, In

the manner provided In clause lb) (that l" to say, as If the net

agricultural Income were comprised In the total Income after,—

(0 In a case to which the said Sub-Paragraph I applies,

tlie first fifteen thouaand rupees, and

(H) In a caae to which the said Sub-Paragraph II applies,

the first eight thousand rupees,

or the total Income but without being liable to tax), only for the

purpose of charging Income-tax In respect of the total Income; and

(h) the Income-tax chargeable shall be calculated aa follows: —

d) the total Income and the net agricultural Income shall

be aggregated and the amount of Income-tax shall be determin-

ed in respect of the aggregate income at the rates specified In

Sub-Paragrapb I or, M the case may be, Sub-Paragraph it of

the said Paragraph A, as If such aggregate Income were the

total Income:

Provided that In a case referred to In the said Sub-Paragrapb

II, for the purpose of determining the amount of Income-tax In

accordance with this sub-clause, the provisions of clause (ti) of

the proviso below Sub-Paragraph n and the provisions relating

to surcharge on Income-tax In the said Sub-Paragraph H shall

not apply;

(n) the net agricultural Income shall be Incroised,—

(A) In a case to which the said Sub-Paragraph I applies,

by a gum of fifteen thousand rupees; sod

(B) In a case to which the said Sub-Paragraph II applies,

by a sum of eight thouaand rupees,

and the amount of Income-tax shall be determined In respect of

the net agricultural Income as so Increased at the rates specified

In Sub-Paragraph I or, au tho case may be, Sub-Paragraph II of

the said Paragraph A, as If the net agricultural income as so

Increased were the total Income!

Provided that In a case referred to In the said Sub-Paragraph

II, for the purposes of determining the amount of Income-tax In

accordance with this sub-clause, the provisions of clause (h)

of the proviso below the said Sub-Paragraph TI and the provisions

relating to surcharge on Income-tax In the said Sub-Paragraph

H shall not apply;

(hi) the amount of Income-tax determined In accordance

with aub-clauac (i) shall be reduced by the amount of Income-

tax determined In accordance with sub-clause(7/;;

Provided that In a case referred to In the said Sub-Paragraph

II, where the sum so arrived at exceeds sixty per cent, of the

amount by which the total Income exceeds twelve thousand rupees,

the excess shall be disregarded;

(h) the amount of income-tax determined In accordance with

sub-clause (Hi) shall be Increased by a surcharge for purposes

of the Union calculated at the rate of ten per cent, of such Income-

tax and the sum so arrived at shall be the Income-tax In respect

of the total Income,

(3) In cases to which the provisions of Chapter XH or section

164 or section 164A or section 167A of the Income-tax Act, 1961

(hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with, reference to the rates imposed by sub-eection (1) or the rates as specified in that Chapter or section, as the case may be.

(4) In cases In which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D 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) Subject to the provisions of sub-section (6), In cases In which Income-tax has to be calculated under the first proviso to sub-section (5)oi section 132 of the Income-tax Act or charged under sub-section W 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 (')) of section 80E of the said Act from any payment referred to In the said sub-section (pj or In which the "advance tax" payable under Chapter XVII-C of the said Act has tb 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:

Provided that in cases to which the provisions of Chapter XII or Chapter XIIA or section 164 or section 164A or section 167A of the Income-tax Act apply, "advance tax" shall be computed with reference to the rates Imposed by this sub-section or the rates as specified In that Chapter or section, as the case may be;

Provided further that an asaessee, being a company, may, In lieu of payment of one-half of the amount of surcharge on Income-tax at the rate specified In Paragraph E of Part HI of the First Schedule, make a deposit under the scheme framed under sub-section (7) before the last Instalment of'advance tax'ls due In Us case, and where It does so, the surcharge on Income-tax payable by It shall be reduced,—

(i) In a case where the amount of the deposit so made is equal to, oi exceeds, one-half of the amount of surcharge on Income-tax payable by It, by one-half of the amount of surcharge payable by It; and

(ii) In a case where the amount of the deposit so made falls short of one-half of the amount of surcharge on. Income-tax payable by It, by the amount of the deposit.

(6) In the cases to which Sub-Paragraph I or Sub-Paragraph II of

Paragraph A of Part in of the First Schedule applies, where the asaessee has, In the previous year or, If by virtue of any provision of the Income-tax Act, Income-tax Is to be charged In respect of the Income of a period other than the previous year, In such other period, any net agricultural Income exceeding six hundred rupees, In addition to total Income and the total Income exceeds,—

(i) in a case to which the said Sub-Paragraph I applies, fifteen

thousand rupees, and

(it) In a case to which the said Sub-Paragraph II applies, twelve thousand rupees,

then, In calculating Income-tax under the first "proviso to sub-section (5) of section 132 of the Income-tax Act or In charging Income-tax under sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or In computing the "advance tax" payable under

Chapter XVII-C of the said Act, at the rate or rates In force,—

(a) the net agricultural Income shall be taken Into account, In

the manner provided In clause (b) (that Is to say, as If the net

agrlculturartfiopme were comprised in the total income after,—

(0 In a o ut to which the said Sub-Paragraph I applies, the

first fifteen thousand rupees, and

(it) in a case to which the said Sub-Paragraph n applies,

the first eight thousand rupees,

of the'total Income but without being liable to tax), only for the

purpose of calculating, charging or computing such income-tax or,

as the case may be, "advance tax" in respect of the total inoome; and

(b) such income-tax or, as the case may be, "advance tax" shall

be so calculated, charged or computed as follows:—

(i) the total Income and the net agricultural Inoome shall be

aggregated and the amount of income-tax or "advance tax" shall

be determined in respect of the aggregate Income at the rates

specified In Sub-Paragraph I or,as the case may be, Sub-Para-

graph II of the 4Ud Paragraph A, as if suoh aggregate Income

were the total Inoome:

Provided that In a case referred to in the said Sub-Paragraph

n, for the purposes of determining the amount of Income-tax or

"advance tax" In accordance with this sub- clause, the provisions

of clause (ii) of the proviso below the said Sub-ParagraphII and

the provisions relating to surcharge on Income-tax in the said

Sub-Paragraph n shall not apply;

(H) the net agricultural Income shall be Increased,—

(A) in a case to which the said Sub-Paragraph I applies,

by a sum of fifteen thousand rupees; and

(B) in a case to which the sajd Sub-Paragraph II applies,

by a sum of eight thousand rupees,

and the amount of Income-tax or "advance tax" shall be deter-

mined In respect of the net agricultural Inoome as so Increased

at the rates specified In the said Sub-Paragraph I or, as the case

may be, the Bald Sub-Paragraph II, as If the net agricultural

Income as so Increased were the total Income;

Provided that In a case referred to In the said Sub-Paragraph

II, for the purposes of determining the amount of income-tax or

"advance tax" In accordance with this sub-clause, the provisions

of clause (ii) of the proviso below the said Sub-Paragraph n and

the provisions relating to surcharge on Income-tax In the said

Sub-Paragraph n shall not apply;

tin) the amount of LnoqflM-4ax or "advance tax" determined In

accordance with sub-clause (i) shall be reduced by the amount of

Income-tax or, as the case may be, "advanoe tax" determined

In accordance with sub-olaiAe (ii); •

Provided that in 1 case referred to In the said Sub-Paragraph n,

where the sum so arrived at exoeeds sixty per oant. of the amount'

by which the total Income exceed* twelve thousand rupees, the excess shall be disregarded;

(iv) the amount of Income-tax or "advance tax" determined In accordance with sub-clauBe (hi) shall be Increased by a surcharge for purposes of the Union calculated at the rate of twelve and one- half per cent, of such Income-tax or, as the case may be, "advance tax" and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total Income.

(7) Where an assesaee, being a company, makes, during the financial

18 of 1964.

rear commencing on the lot day of April, 1983, any deposit with the ndustrlal Development Bank of India established under the Industrial Development Bank of India Act, 1964 under any such scheme as the Central Government may, by notification In the Official Gazette* 'rarne in this behalf, then the surcharge on Income-tax payable by ;he company for the assessment year commencing on the let day of Vprll, 1984 shall be reduced—

(i) In a case where the amount of the deposit so made Is equal to.orexceedsjone-half of the amount of surcharge on Income-tax payable by It, by one-half of the amount of surcharge payable by It; and

(ii) In a caae where the amount of the deposit so made fells ahort of one-half of the amount of surcharge on Income-tax payable by It, by the amount of the deposit.

(8) 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 ltd Income liable to Income-tax under the Income-tax Act for the assessment year commencing on the 1st day of April, 1983, has made the prescribed arrangements for the declaration and payment within India of the dividends (Including dividends on preference shares) payable out of such Income In accordance with the provisions of section 194 of that Act;

(c) "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 manufacture or processing of goods or In mining.

Explanation, — F'or the purposes of this clause, a company shall be deemed to be mainly engaged In the business of generation or distri- bution of electricity or any other form of power or In the construction of ships or In the manufacture or processing of goods or In mining, If the Income attributable to any one or more of the aforesaid activi- ties 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:

Provided that this clause shall not apply for the purpoie* of Paragraph E of Part III of the First Schedule, and for the purposes of that Paragraph, the expression "Industrial company" shall have the meaning assigned to It In the Explanation at the end of that Paragraph;

;,{) "Insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procur- ing Insurance business (Including business relating to the continuance, renewal or revival of policies of Insurance);

' ) "net agricultural Income",. Ln relation to a person, mecns the

iotal amount of agricultural Income, from whatever source derived, of that person computed In accordance with the rules contained in Part TV of th" First Schedule;

ment 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 StRte Government;

(g) .ill other words and expressions used In this section or In the Flrat Schedule but not defined in this sub-section and defined in the Income-tax Act shall have the meanings respectively assigned to them In th;;t Act,

CHAPTER HI

DIRECT TAXES

Income-tax

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

Amendment of

section 2.

(a) Ln clause (75), the words "not Involving the carrying on of any activity for profit" shall be omitted with effect from the 1st day of April, 1964;

(hi In clause (IS), Ln sub-clause (h), for item (/?),, the following item shall be substituted with effect from the 2nd day of April, 1983 , namely: —

l(R) shares In the company (not being shares entitled to a fixed rate of dividend whether with or without a further right to partici- pate In profits) carrying not less than fifty per cent, of the voting power have been allotted unconditionally to, or acquired uncondi- tionally by, and were throughout the relevant previous year beneficially held b y-

fa; the Government, or

(h) a corporation established by a Central, State or

Provincial Act, or

(c) any company to which this clause applies or any subsidiary

company of such company where such subsidiary company ful- fils the conditions laid down In clause (b) of section 108,

Explanation^ -*- In Its application to an Indian company whose

business consists mainly ln the construction of ships or In the manufacture or processing of goods or In mining or In the genera- tion 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.", the words "not less than forty per cent." had been substituted;¹.

4. In section 9 of the Income-tax Act, In sub-section (1),—

Amondnoat of

Motion 9.

(a) In clause (0, In the Explanation, after clause (b), the following

clause shall be Inserted and shall be deemed always to have been Inserted, namely; ~

"(c) In the case of a non-resident, being a person engaged In the

business of running a news agency or of publishing newspapers, magazines or Journals, no Income shall be deemed to accrue or arise In India to him through or from activities which are confined to the collection of news and views In India for transmission out of India;";

(b) to clause (u\ the following Explanation shall be added and shall

be deemed to have been added with effect from the 1st day of April, 1979, namely:—

llExpbnni!f<,~- For the removal of doubts, It Is hereby declared

that Income of tbo mature referred to In this clause payable for service ren

5. In section 10 "f tV fnoome-tax Act,— '

Amendment of

"*ctioti l o.

i

(a) after c l a u* - •' -r ' ho following c l a u se s h a ll be I n s e r t ed with e f f e ct

from the 1st day oi A, *;., <:<>14, namely.—

' (6 v ' A) ! " . " •• . ! " . t -' c a de of a f o r e i gn c o m p a ny d e r i v i ng I n c o me by

way of royalv, M i>.es for technical services received from Govern- ment or an Tni1;u. concern In pursuance of an agreement made by the foreign comparv u-ith Government or the Indian concern after the 31at day of March, 107 6 and approved by the Central Government, the tax on *v.

Explanation,-— Vor the purposes of tills clause,—

(a) "feet* lor technical services" shall have the same meaning

as In Fxpb"

(b) "forei company" shall have the same meaning as In

section SOT:

(c) "royajf,"' (,hall have the same meaning as In Explanation 2 to

c l a u se ( v i^ • - J ; i ' - s e c t l on ( 1) of s e c t i on 9 ; ';

f • ' •; In c l a u se

: ; ' ' ',

11, at the three places where they occur, r'rw v>ords "thlrty-slx thousand rupees" ahall be substituted and shall oe deemed to have been substituted with effect from the 1st day nf April, 1982;

'it) after the jT'^iaos and before the Explanation, the following

provlaos shaJi '-f <'-!*>"--ttd and shall be deemed to have been Inserted with effect fron: H-<; ±at day of April, 1982, namely: —

'Provide" iflo that the Central Government may, having regard to the maximum amount which may for the time being be exempt under aub-dauae (i), Increase, by notification In the Official Gazette the limit of thlrty-slx thousand rupees, for all th" thrwe pur""-^" *

which It has been mentioned In the forogolng provisions of this clause, up to such maximum amount:

Provided also that In relation to cases In which the event (that is to say, retirement of the employee or hla becoming Incapacitated or termination of his employment or his death, as the case may be) on which gratuity la received had taken place before the 31st day of January, 1982, the proviso Immediately preceding this proviso shall not apply and the remaining provisions of this clause shall have effect as If for the words "thlrty-slx thousand rupees", at the three places where they occur, the words "thirty thousand rupees" had been substituted.';

(c) In clause (15),—

14 of 1982.

(i) In sub-clause (iih) /directed to be Inserted by clause (d) of section 4 of the Finance Act, 19827, for the words "Interest on nuch Capital Investment Bonds", the words "In the case of an Individual or a Hindu undivided family, Interest on such Capital Investment Bonds" shall be substituted;

(h) In sub-clause (iv)t-~

(1) In Item (a), after the words "moneys borrowed", the words

"or debt Incurred" shall be Inserted;

(2) in item (C)f—

(A) after the words "raw materials", the words "or compo-

nents" shall be Inserted;

(/?) the following -Explanation shall be Inserted at the end,

namely: —

'Explanation.— For the purposes of Ihis Item, "purchase of capital plant and machinery" Includes the purchase of such capital plant and maohinery under a hire-purchaBe agreement or a lease agreement with an option to purchase such plant and machinery^¹;

18 of 1964.

28 of 1981.

(3) In Item (d)t after the words and figures "Industrial Develop- ment Bank of India Act, 1964", the words and figures "or the Export- Import Bank of India established under the Export-Import Bank of India Act, 1981" shall be Inserted;

(4) after Item (f) and before the Explanation t the following Item

shall be inserted, namely:—

"(g) by a public company, formed and registered In India with the main object of carrying on the business of providing long-term flnanco for construction or purchase of houses In India for resi- dential purposes, being a company approved by the Central Govern- ment for the purposes of clause (inn) of sub-section (l) of section 36 on any moneys borrowed by It in foreign currency from sourceo outside India under a loan agreement approved by the Central Government, to the extent to which such Interest does not exceed the amount of Interest calculated at the rate approved by the Central Government In this behalf, having regard to the termi of the loan and Its repayment.";

(5) In the Explanation, for the words "this Item", the wordf,

braokets and letters "Items (f) and ( #" shall be substituted)

(d) in clause (21), the following proviso shall be inserted at the end

with effect from the 1st day of April, 1984, namely:—

"Provided that nothing contained in this clause shall apply if for

any period .during the previous year —

(i) any sums by way of contributions received by the associa-

tion are invested or deposited after the 28th day of February, 1983 otherwise than In any one or more of the forms or modes specified in sub-section (5) of section 11; or

(ti) any funds of the association Invested or deposited before the 1st day of March, 1983 otherwise than In any one or more of the forma or modes specified In sub-section (5) of section 11 continue to remain BO Invested or deposited after the 30th day of November, 1983; or

1 o( 1956.

(Hi) any shares In a company (not being a Government company as defined In section 617 of the Companies Act, 1956 or a corpora- tion established by or under a Central, State or Provincial Act) are held by the association after the 30th day of November, 1983;";

(e)in clause (2SC), after the proviso, the following proviso shall

be inserted with effect from the 1st day of April, 1984, namely:—

"Provided further that nothing in this clause shall apply in r e l a- tion to the profits and gains of any business which is carried on, on behalf of, or by, any fund or institution referred to in sub-clause (iv) or any truBt or institution referred to in sub-clause (v) or to the profits and gains of any business undertaking held under trust for the purposes of any fund or institution referred to in sub-clause Uv) or for the purposes of any trust or institution referred to in sub- clause (v).".

(ft In clause (26A), -

the figures, letters and words "1st day of April, 1986" shall be substituted;

(ti) ;he Explancr on shall be numbered and shall be deemed to

have been numbe: yi with effect from the 1st day of April, 1980 as Explanation 1 and after Explanation 1 as so numbered, the following Explanation Bhall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1980, namely:—

"Explanation 2.— In this clause, references to the district of

Ladakh shall be construed as references tc the areas comprised in the said district on the 30th day of June, 1979-. ".

6. In section 11 of the Income-tax Act, —

Amendment of

•ection 11.

(a) in sub-section (2)r for clause (b), the following clause shall be

substituted, namely: —

" (b) the money so accumulated or set apart is invested or depo-

sited in the forms or modes specified In sub-seotion (5);";

(b) for •ub-aeotlon <*k the following •ub-eection ihall bo

•ubfttltutad with tffaot from tha 1st day of April, 1084, namtlyt—

" M Nothing contained In sub-Motion (1) or mb-Motion W or

"••<•- * Uon (?) or s u b - s e c t i on (3A) shall fu*n!v In r e l a t i on to a ny

'tpfng; p r o f i ts a nd g a i ns of business- '

:. i * ?r s u b - s e c t i on (4), t he following s"!i -<**vti"n s h a ll be i n s e r t e d,

• <$>' T he f o r ms and m o d es of investing or depositing t he m o n ey

referred to in clause (ft) of sub-section (?) "k*\\ h& the following,

CO investment in savings certificates as ftefined in clause (c) of section 2 of the Government Savings Certificates Act, 1959, and any other securities or certificates issued by the Central Government under the Small Savings Schemes of that Govern- ment ;

(it) deposit in any account with the Post Office Savings Bank;

(Hi) deposit in any account with a scheduled bank or a co- operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank).

Explanation, — In this sub-clause, "scheduled bank" means the State Bank of India constituted under the State Bank of India Act, 1955, a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959, a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and T r a n s- fer of Undertakings) Act, 1970, or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934;

(iv) investment in units of the Unit Trust if fedia established

undpr the Unit Trust of India Act, 1963:

52 of 1963.

b] he Central Government or a State Government;

(ii) investment in debentures issued bf, or on behalf of , any

company or corporation both the principal whereof and the in- te'•' at whereon are fully and unconditionally guaranteed by the Cfeiiral Government or by a State Government;

(pit) investment or deposit in any Government company as

1 of 1956.

del ••ied in section 617 of the Companies Act, 1956;

(viii) deposit iri any account with a financial corporation which

is engaged in providing long-term finance for industrial develop- ment in India and which is approved by the Central Government for the purposes of clause (viii) of sub-section (I) of section 36;

dx) deposits with or investment in anv bonds issued by a

public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes and which is approved by the Central Government for the purposes of clause (viii) of sub-section (I) of section 36;

(x) investment in immovable property.

Explanation. ~ " Immovable property" does not Include any

machinery or plant even though attached to, or permanently fantened to, anything attached to the earth.'.

7, In section 13 of the Income-tax Act, — Am

Amendment of section 13, fa) in s u b - s e c t i on (1), —

U) clause (bb) shall be omitted with effect from the 1st day of April,19

(ti) tor clause (d), the following clause shall be substituted, namely:—

" (J) in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof, if for any period during the previous year —

(i) any funds of the trust or Institution are Invested or deposited after the 28th day of February, 1983 otherwise than In any one or more of the forms or modes specified In sub-section (5) of section 11; or

(ii) any funds of the trust or Institution Invested or

deposited before the 1st day of March, 1983 otherwise than In any one or more of the forms or modes specified In sub- section (5) of section 11 continue to remain so Invested or deposited after the 30th day of November, 1983; or

1 of 1956.

(in) any shares In a company (not being a Government company as defined in section 617 of the Companies Act, 1956 or a corporation established by or under a Central, State or Provincial Act) are held by the trust or Institution after the 30th day of November, 1983:

Provided that nothing in this clauses shall apply in relation to —

(/) any assets held by the trust or,j"*titution where such assets constituted the original corpus of thtJta^st or institution as on the 1st day of June, 1973 or whtu-e siflfe assets being shares were allotted by way of bonus to the trust o,r institution on or before the said date with reference to the a|mres by way of ori- ginal corpus held by it;

(") any trust or institution whose only source of income

consists of profits and gains of business. ";

(b) in sub-section (2), m the opening portion, for the words, brackets

and letter "pro\-islons of clause

(c) in sub-section (4), In the opening portion, for the words ",in a case where", the words, brackets and letter "but without prejudice to the provisions contained In clause (d) of that sub-section, In a case where" shall be substituted,-

(d) sub-sections (5) and (6) shall be omitted.

8. In section 16 of the Income-tax Act, In clause (i), for the words "five

Amendment of

••ction 16.

thousand rupees", the words "six thousand rupees" shall be substituted with effect from the 1st day of April, 1984.

9. In section 24 of the Income-tax Act, in sub-flection (1) to clause (vi)

Amendment of

•action 24.

the following Explanation uhall be added with effect from the 1st day of April 1984, namely:—

'

"Explanation. ~ Where the property has been acquired or constructed

with borrowed capital, the interest, if any, payable on such capital for the period prior to the previous year in which the property has been

acquired or constructed, as reduced by any part thereof allowed as a deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for eaoh of the four Immediately succeeding previous yearsf".

10. In section 32 of the Income-tax Act, in sub-section (I), with effect

Amendment of

auction 32.

from the 1st day of April, 1984, —

(a) in clause Hi), in the first proviso, for the words "seven hundred

and fifty rupees", the words "five thousand rupees" shall be substituted;

(b) in clause (iv), the words, brackets and figures "but any such sum shall not be deductible In determining the written down value for the par- poses of clause (ii) of sub-section (l)ju shall be omitted;

(c) in clause (v), the words, brackets and figures 'Taut any such sum

tfhall not be deductible in determining the written down value for the purposes of clause (U), " shall be omitted.

H. In section 32A of the Income-tax Act,-

•ftrtion 32A.

UV in sub-section (2), —

(i) after clause (h) and before the Explanation, the following clause

shall be inserted with effect from the 1st day of April, 1984, namely:—

"(c) any new machinery or plant installed after the 31st day of

March, 1983, but before the lot day of April, 1988, for the purposes of business of repairs to ocean-going vessels or other powered craft if the business is carried on by an Indian company and the business so carried on is for the time being approved for the purposes of this clause by the Central Government!¹;

(it) in the Explanation, for the words, brackets, figures and letter

"this sub-section and sub-aections (2R) andf-f)", the words, brackets, figures and let*tfrs "this sub-section and sub-sections (2B), (2C) and (4) " shall be substituted with effect from the 1st day of June, 1983)

(h) after aub-section (2R). the following sub-section shall be in-

serted with effect from the 1st day of June, 1983, namely :—

'(2C) Where any new machinery or plant, being machinery

or plant which would assist in control of pollution or protection of environment and which has been notified in this behalf by the Central Government in the Official Gazette, is Installed after the 31st day of May, 1983 In any industrial under- taking referred to in sub-clause (i) or sub-clause (ii) or sub-clause (Hi) of clause (b) of sub-section (2). the provisions of sub-seottonrDahall have effect in relation to such machinery or plant as if for the words 'twenty-five per cent.", the words "thirty-five per cent. " had been substituted.'.

Amendment of

•octton 35.

12. In section 35 of the Income-tax Act, in sub-section (2A), after the words "pays any sum", the brackets and words " (being any sum paid with a specific direction that the sum shall not be used for the acquisition of any land or building or construction of any building^" shall be inserted with effect from the 1st day of April, 1984.

Amondnirat of

Motion 35B.

13. In section 35B ot the Income-tax Act, In sub-section (J), in clause (a), after the words, figures and letter* "after the 29th day of

February, 1968", the words, flgureB and letters "but before the let day of March, 1983" shall be Inserted.

14. In section 35C of the Income-tax Act, in sub-section (1), with

Amendment of section 35C, effect from the let day of April, 1984, —

(

times" .shall be omitted;

(b) in the Fxpbnntwn, for the words "expenditure with refercnct to which deduction under this section is to be allowed", the words "expenditure which is to be allowed as deduction under this section" shall be substituted.

15. In section 36CC of the Income-tax Act, for sub-section (3), the Amendment of section 35CC.

following sub-section shall be substituted, namely:—

"(3) No deduction shall be allowed in respect of the expenditure o any programme referred to in BUD-section (7 > unless the following conditions are satisfied, namely :—

(a) the assessee hae obtained the approval of the prescribed authority in respect of such programme under sub-section (1) befc the 1st day of March, 1983;

e (h) such programme involves work by way of construction of an building or other structure (whether for UBe as a dispensary, schc training or welfare centre, workshop or for any other purpose) or laying of any road or the construction or boring of a well or tube- well or the installation of any plant or machinery, and such work has commenced before the 1st day of March, 1983;

(c) the expenditure on such programme is Incurred, in a case

where the approval of the prescribed authority in respect of such programme has been granted under sub-section (1) for a specified period, before the.expiry of that period and, in any other case, before the let day of March, 1984;

(d)tho assessee furnishes, along with the return of Income for the assessment year for which the deduction is claimed, a state- ment of such expenditure in the prescribed form duly signed and verified by an accountant as defined In the Explanation below sub- section (2)oi section 288 and Betting forth such particulars as may be prescribed. ",

16.In section 35CCA of the Income-tax Act, —

Amendment of section 35CCA.

(a) in Bub-section (R—

f"' In clause (b). the word "or" shall be added at the end;

(ii) after clause^) the following jiause shall be inserted,

namely —

" (<>to a rural devolopmont fund sot up and notified by the

Contral Government in this bohulf, ";

(b)tor Bub-section(2), the following sub-seotions shall be substituted,

namely:—

"(2) The deduction under olauee (a) of sub-section (I) shall not be

allowed in respeot of expenditure by way of payment of any sum to any association or institution referred to in the said clause unless the assessee furnishes a certificate from such association or institution to the effect that —

fa) the programme of rural development had been approved by

the prescribed authority before the 1st day of March, 1983; and

ffojouch programme involves work of the nature referred to in clause (h)ot sub-seotion (3) of section 35CC and iueh work has commenoed before the 1st day of March, 1983.

(2A)The deduction under clause (b)of sub-section (1) shall not be

allowed in respect of expenditure by way of payment of any sum to any association or Institution unless the assessee furnishes a certificate from such association or institution to the effect that —

fa) the prescribed authority had approved the association or

institution before the 1st day of March, 1983; and

(7'Jthe training of persons for Implementing any programme of

rural development had been started by the association or institution before the 1st day of March, 1983.

(2R)No certificate of the nature referred to in aub-section^or

sub-section (2A) shall be issued by any association or institution unless such association or institution has obtained from the pres- cribed authority authorisation in writing to issue certificates of such nature.".

17. In section 37 of the Income-tax Act, —

Amendment of

"*ction 37,

(j) In sub- section (2A) -—

11 < for clauses (in) and (iv). the following shall be substituted

with effect from the 1st day of April, 1984, namely:-

-(no on the balance of the profits at the rate of

and gains of the business or profession 1/8 per cent., (computed in the manner aforesaid)

so, however, that the allowance shall in no case exceed Rs.50,000;";

(ii) the ExpLvmtwv shall be numbered and Bhall be deemed to have been numbered with effect from the 1st day of April, 1976 as Explanation 1 and after Explanation I as so numbered, the following Explanation shall be inserted and shall be deemed to have been Inserted with effect from the 1st day of April, 1976, namely:—

' hxplanatwn 2.—*• For the removal of doubts, It is hereby declared that for the purposes of this sub-section, "entertainment expenditure" Includes expenditure on provision of hospitality of every kind by the assessee to any person, whether by way of provision of food or beverages or in any other manner whatsoever

and whether or not such provision is made by reason of any

express or implied contract or custom or usage of trade, but

does not include expenditure on food or beverages provided by t

assesses to his employees in office, factory or other place of

their work.';

(b) after sub-section (3), the following sub-sections shall be

Inserted with effect from the lot day of April, 1984, namely:—

(3 A) Notwithstanding anything contained Hi sub-section (1};

where the assessee Incurs any expenditure on any one or more of

the Items specified tn subjection (3B), twenty per cent, of. such

expenditure or, as the case may be, aggregate expenditure shall

not be allowed as deduction In computing the Income chargeable

under the head "Profits and gains of business or profession'.',

(3$) The expenditure referred to In sub-section (3A) Is that

incurred on —

(t) advertisement, publicity and sales promotion; or

(it) travel by rail, motor car, ship, powered craft or

aircraft; or

(Hi) running and maintenance of aircraft and motor cars; or

(iv) payments made to hotels.

Explanation. — For the purposes of sub-sectlone (3A) and (3li),~

(a) the expenditure specified in clause (i) to clause (iv) of

sub-section (3R) shall be the aggregate amount of expenditure

Incurred by the assessee as reduced by so much of such expendi-

ture as le not allowed under any other provision of this Act;

(b) expenditure on advertisement, publicity and sales pro-

motion shall not Include remuneration paid to employees of the

assessee engaged In one or more of the said activities;

(c) expenditure on running and maintenance of aircraft and

motor cars shall Include,—

(0 expenditure incurred on chartering any aircraft and

expenditure on hire charges for engaging cars piled for hire;

(u) conveyance allowance paid to employees and, where

the assesses is a company, conveyance allowance paid to

its directors also,

(3C) Nothing contained in sub-section (3A) shall apply in respect

of expenditure Incurred by an assessee, being a domestic companj

or a person (other than a company) who is resident In India in

respect of expenditure Incurred wholly and exclusively on —

d) advertisement, publicity and sales promotion outside

India in respect of the goods, services or facilities which the

assesses deals In or provides in the course of his business;

(ii) travelling outside India for the promotion of the sale

outside India of such goods, services or facilities, Including

travelling outward from, and return to, India;

(Hi) running and maintenance of motor cars In any branch,

office or agenoy maintained outside India for the promotion of

the Bale outside India of such goods, services or facilities.

(3D) No disallowance under sub-section (3A) shall be made —

(i) in the case of an aBsessee engaged In the business of

operation of aircraft, in respect of expenditure incurred on

running and maintenance of such aircraft;

(it) in the case of an assessee engaged in the business of

running motor curs on hire, in respect of expenditure incurred

in running and maintenance of ouch motor cars.';

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

and shall be deemed to have been Inserted with effect from the 1st day

of April, 1979, namely:—

"(5) For the removal of doubts, it is hereby deolared that any

accommodation, by whatever name called, maintained, hired,

reserved or otherwise arranged by the assessee for the purpose of

providing lodging or boarding and lodging to any person (lnoludlng

any employee or, where the aseessee Is a company, any director

of, or the holder of any other office In, the company) on tour or

vl"it to the place at whloh such accommodation Is situated, Is

accommodation In the nature of a guest house within the meaning

of sub-section (4)"t

18. In the Income-tax Act, after section 43A, the following section

shall be inserted with effect from the 1st day of April, 19.84, namely:—

Insertion of

now Mction

43B.

"43B. Notwithstanding anything contained in any other provision of

this Act, a deduction otherwise allowable under this Act in respect of-

(a) any sum payable by the assesses by way of tax or duty

Certain

deductions

to be only

on actual

payment.

under any law for the time being In foroe, or

(b) any sum payable by the assessee as an employer by way of

contribution to any provident fund or superannuation fund or 30

gratuity fund or any other fund for the welfare of employees,

shall be allowed (Irrespective of the previous year in which the

liability to pay such sum was Incurred by the assessee according to

the method of accounting regularly employed by him) only In computing

the Income referred to in section 28 of that previous year in which

such sum is actually paid by him. ".

19. In section 44D of the Income-tax Act, with effect from the 1st

Amendment of

section 44D.

day of June, J.983,—f

(a) in clauses (a) and (bl, for the portion beginning with the words

"from an Indian concern" and ending with the words "with the Indian

concern", the following shall be substituted, namely:-*

"from Government or an Indian concern In pursuance of an

agreement made by the foreign company with Government or

with the Indian concern";

(h) after clause (b) and before the ilxplanatinn, the following

clause shull be inserted, namely:—

"(c) no deduction in respoot of any expenditure or allowance

shall bo allowed under any of the flaid sections in computing income

by way of interest received from Government or an Indian concern on moneys borrowed or debt incurred by the Government or the Indian concern in foreign currency. ";

(c) in the ExPlanatw:>llk in clause 01), for the portion beginning with the words "from an Indian concern" and ending with the words "with the Indian concern", the following shall be substituted, namely:-

"from Government or an Indian concern in pursuance of an agreement made by a foreign company with Government or the Italian concern. ".

20. In section 54E of the Income-tax Act,-

Amendment of

•action 54E,

(a) In sub-section (1),—*

(i) after clause (b) and before Explanation /, the following

proviso shall be Inserted, namely:-

"Provided that in a case where the original asset is trans-

ferred "fter the 28th day of February, 1983, the provisions of this sub-section shall not apply unless the assessee has invested or deposited the whole or as the case may be any part of the net consideration in the new asset by initially subscribing to such new asset, "t

(it) in Explanation 1/ —

(A) in clause (b), after the words, figures and letters "after

the 28th day of February, 1979", the words, figures and letters, "but before the 1st day of March, 1983" shall be Inserted;

(B) after clause (b)t the following claurie shall be Inserted,

namely:*-

"(c) in a case where the original asset Is transferred after

the 28th day of February, 1983, any of the following assets, namely:~

(i) securities of the Central Government which that Government may, by notification in the Official Gazette, specify in this behalf;

52 of 1963.

(it) special series of units of the Unit Trust of India established under the Unit Trust of India Act, 1963, which the Central Government may, by notification in the Official Gazette, specify in this behalf;

(Hi) such National Rural Development Bonds as have been notified under clause (h) of Explanation I or as may be notified in this behalf under this clause by the Central Government;

>w) such debentures issued by the Housing and Urban

1 of 1956.

Development Finance Corporation Limited (a Government company as defined in section 617 of the Companies Act, 1956), as the Central Government may, by notification in the Official Gazette, specify in thin behalf. ",

(/?) In >ub~s"ctlon (2), the Explanation shall be numbered as

Explanation I and after Explanation 1 as BO numbered, the

following Explanation shall be inserted, namely:—

"Explanation 2.-— In a case where the original asset is transferred after the 26th day of February, 1983 and the assessee Invests the whole or any part of the net consideration In respect of the original asset In any new asset and such assossee takes any loan or advance on the security of such new asset, he shall be deemed to have converted (otherwise than by transfer) such new asset on the date on which such loan or advance Is taken.";

(c) In sub- section (3), In the Explanation, In olause fiiwJ, after

sub-clause (b), the following sub-olause shall be inserted, namely.—

"(c) in relation to any additional compensation or additional

consideration received after the 28th day of February, 1983, In any of the assets referred to In clause (c) of Explanation 1 below sub- section (I) by way of initial subscription thereto;".

21. In section 80C of the Income-tax Act, with effect from the 1st day

Amendment of

section 80C.

of April, 1984, -

(a) in sub- section (2),—

(i) for olause (b) (occurring before the Explanation ), (he follow-

ing clause shall be substituted, namely:—

"(h) where the aseeesee is a Hindu undivided family, —

(i) any sums paid In the previous year by the assessee out

of Its Income chargeable to tax —

(V to effect or to keep in force an insurance on the

life of any member of the family; or

(2) as a contribution to any provident fund referred to In

sub-clause (iv) of clause (a)4 where such contribution Is to an account standing In the name of any member of the family; or

(it) any sums deposited in the previous year by the assessee

out of lte Income chargeable to tax In a ten-year account or a fifteen-year account under the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959, as amended from time to time, where such sums are deposited In an account standing in the name of any member of the family. ";

(ii) in the Explanation below clause (t>), for the word, brackets and letter "clause (b)", the words, brackets, figure and letter "sub- clause (i) of clause (b) " shall be substituted,

(h) in sub-section (4), for clauses (i) to (w), the following clauses

hall be substituted, namely:—

"li) in the case of an Individual, being an author, playwright,

artist, musician, actor or sportsman (Including an athlete), sixty thousand rupees;

(ii) In the case of any other Individual or a Hindu undivided family

or any such association of persons or a body of individuals as Is referred to in clause fa) of sub-section (2)f forty thousand rupees. ".

Amendment of

•ection 80GG.

22. In section 80GG of the Income-tax Act, for the proviso, the following proviso shall be substituted with effect from the 1st day of April, 1984, namely:-

"Provided that nothing In this section shall apply to an asseBsee in any case where any residential accommodation Is, —

(1) owned by the assessee or by his spouse or minor child or, where such assessee is a member of a Hindu undivided family,by such family, at the place where he ordinarily resides or performs duties of his office or employment or carries on his business or profession; or

00 owned by the assessee at any other place, being accommodatio In the occupation of the assessee, the value of which is to be deter- mined under clause (i) or, as the case may be, clause (it) of sub- section (2) of section 23. ".

23. In section 80GGA of the Income-tax Act, In sub-section (2), —

Amendment

of section

80GGA.

(a) in clause (b)p for the proviso, the following proviso shall be

substituted, namely:—

"Provided that the assessee furnishes the certificate referred to in sub-section (2.) or, as the case may be, sub-section (2A) of section 35CCA from such association or institution. ";

(h) after clause (c)t the following clause shall be inserted,

namely:—

"(d) any sum paid by the assessee in the provio'js year to a rural development ''•-"- -~t up and notified by the Central Govern- ment for the purposes of clause (c) of sub-section (1) of section 35CCA. ".

24. In the Income-tax Act, after section 80HHB (directed to be inserted 14 of 19S2.

Insertion of

new section

90HHC.

by section 18 of Ihe Finance Act, 1982), the following section shall be inserted, namely:~

'80HHC. (I) Where the assessee, being an Indian company or a

Deduction

in respect

of export

turnover.

person (other than a company) who is resident in India, exports out of India during ttk previous year relevant to an assessment year any goods or merchandise to which this section applies, there shall, in .accordance with and subject to (he provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to five per cent, of the amount by which the export turnover of such goods or merchandise during the previous year exceeds the export turnover of the goods or merchandise during the immediately preceding previous year.

(2) (a) This section applies to all goods or merchandise /other

than those specified in clause (bjll the sale proceeds of such goods or merchandise exported out of India are receivable by the assessee In convertible foreign exchange.

(k> The goods or merchandise referred to in clause (n) are the

following, namely:—

(i) agricultural prir i'-v commodities, not being produce

of plantations;

fe) mineral oil;

(in) minerals and ores: and

(iv) such other goods or merchandise as the Central

Government may, by notification in the Official Gazette, specify in thi8 behalf.

(3) No deduction under sub-section (I) shall be allowed unless the assesses had, during the immediately preceding previous year, exported out of India goods or merchandise to which this section applies.

Explanation, — For the purposes of this section, —

46 of 1973.

(a) "convertible foreign exchange" means foreign exchange which is for the time being treated by the Reeerve Bank of India as convertible foreign exchange for the purposes of me Foreign Exchange Regulation Act, 1973, and any rules made thereunder;

(to) "export turnover" means the sale prooeeds of any goods or

52 of 1962.

merchandise exported out of India, but does not Include freight or insurance attributable to the transport of the goods or merchan- dise beyond the customs station as defined in the Customs Act, 1962.'.

25. In section 80-1 of the Income-tax Act, with effect from the 1st

Amendment of

section 80-1.

day of April, 1 9 8 4 ,-

(a) in sub-section (D,—

(i) in the opening portion, after the words "business of a hotel", the words "or the business of repairs to ocean-going vessels or other powered craft" shall be inserted;

(ii) In the proviso, for the words "shall have effect", the

words "shall have effect In relation to profits and gains derived from an industrial undertaking or a ship or the business; of a hotel" shall be substituted;

(b) after sub-section (4)f the following sub-section shall be

inserted, namely: —

"(

ocean-going vessels or other powered craft which fulfils all the following conditions, namely:—

(\) the business is not formed by the splitting up, or the

re-construction, of a business already in existence;

(it) It is not formed by the transfer to a new business of

machinery or plant previously used for any purpose;

(tit) It is carried on by an Indian company and the work by

way of repairs to ocean-going vessels or other powered craft has been commenced by such company after the 31st day of March, 1983 but before the 1st day of April, 1988; and

(iv) it li for the time boing approved bv the Central

Oovcrnment, ";

(c) in sub-section (5), —

(i) in the opening portion, after the words "hotel starts

functioning", the words "or the company commences work by

way of repairs to ocean-going vessels or other powered craft"

shall be inserted;

(ii) after the proviso, the following proviso shall be inserted,

namely:—

'Provided further that in the case of an assessee carrying on the

business of repairs to ocean-going vessels or other powered craft,

the provisions of this sub-section shall have effect as if for the

words "seven assessment years", the words "four assessment

years" had been substituted.';

(d) In sub-section (6), after the word "hotel", at both the places where

It occurs, the words "or the business of repairs to ocean-going vessels

or other powered craft" Bhall be inserted;

(e) in sub-section (8), after (he words "operation of the ship", wherever

they occur, the words "or the business of repairs to ocean-going vessels

or other powered craft" ahall be inserted;

(flin sub-section (9), after the word "ship", wherever it occurs, the

words "or the business of repairs to ocean-going vessels or other powered

craft" shall be Inserted.

26. Section 80JJ of the Income-tax Act shall be omitted with effect from

Omission of section 80JJ.

the 1st day of April, 1984.

27. Section 80JJA of the income-tax Act shall be omitted with effeot from

Omission of •action 80JJA.

the 1st day of April, 1984.

28. In section 80 L of the Income-tax Act, in aub-aectlon (1), with

effect from the 1st day of April, 1984, -

Amendment of

•action SOL.

'

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

namely:—

"(via) interest on deposits with any such bank, not being a

banking company or a co-operative society referred to In clause

(vi) but being a bank established by or under any law made by

Parliament, as may be approved by the Central Government for the

purposes of this clause;";

(h) for the portion beginning; with the words "a deduction as specified

14 of 1982.

hereunder" and ending with the words "shall not exceed two thousand

rupees." (directed to be substituted by section 19 of the Finance Act, 1982),

the following shall be substituted, namely:—

"a deduction as specified hereunder, namely:—

(!) In a case where the amount of such Income does not exceed In

the aggregate seven thousand rupees, the whole of such amount; and

(2) In any other case, seven thousand rupees. ".

29. Section 80MM of the Income-tax Act shall be omitted with effect from

(MWMlrf

••CUM earn

the 1st day of April, 1984.

Amendment of •action 80P-

30. In flection 80P of the Income-tax Act, in sub-section (2), for clause ( the following clause shall be substituted with effect from the 1st day of April. 1984, namely:—

"(b) In the case of a co-operative society, being a primary society engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members to —

(i) a federal oo-operative society, being a society engaged In the business of supplying milk, oilseeds, fruits or vegetables, as the case may be; or

(H) the Government or a local authority! or

1 of 1956.

OH) a Government company as defined in section 617 of the Companies Act, 1956 or a corporation established by or under a Central, State or Provincial Act (being a company or corporation engaged in supplying milk, oilseeds, fruits or vegetables, as the case may be, to the public),

the whole of the amount of profits and gains of such business;".

HI, In section 80R of the Income-tax Act, for the words "such other

Amwdmwt of

tecfloa 80R.

ajattention or body established outside India as may be notified in this behalf by the Central Government in the Official Gazette", the words "any other association or body established outside India" shall be substituted with effect from the 1st day of April, 1984.

Insertion of

new Chapter

32. In the Income-tax Act, after Chapter VIA, the following Chapter shall belnserted with effect from the 1st day of April, 1984, namely:—

vm.

"CHAPTER VIB

RESTRICTION ON CERTAIN DEDUCTIONS IN THE CASE OF COMPANIES

80VVA. (1) Notwithstanding anything contained in any other

RMtiicttwa

on certain

dodoCUon*

in th" c ue of

cottipanica.

provision of this Act, where in the case of an assessee being a company, the amount or, as the cane may be, the aggregate amount which, but for the provisions of this section, would have been admissible as deduction for any assessment year under any one or more of the provisions of this Act specified in sub-section (2) exceeds seventy per cent, of the amount of total income as computed had no deduction been allowed under any of the said provisions (such total income being hereinafter referred to as the pro-incentive total income), the amount or, as the case may be, the aggregate amount to be allowed as deduction for that year in respect of any one or more of the said provisions shall be restricted, in the manner specified in sub-section (3), to seventy per cent, of the pre-lncentlve total income.

(2) The provisions referred to in sub-section (1) shall be the

following, namely:—

(i) clause (tii) of sub-section (l).ot section 35;

(it) clause (ia) of sub-section (/) of section 35;

(Hi) sub-section (2A) of section 35, to the extent to which the

deduction under the said sub-section exceeds the sum paid by the assessee;

(iv) sub-section (2F) of section 35, to the extent to which the

deduction under the sflld sub-section exceeds the expenditure incurred by the assesses;

(v) section 35C;.

(vi) section 35CC;

f7.f'f) section 35CCA;

(viti) section 36CCB;

(tx) clause (h) of sub-section (2) of section 33;

(xi clause (U) of sub-section (2) of section 33A;

(xt) clause (i) of sub-section (2) of section 33A;

(xti) clause (ii)of sub-section (J) of section 32A;

(xiii) clause (i) of sub-section (?) of section 32A;

(xiv) section 80Q;

(xv) clause (h) of sub-section (2) of section 8OGGA.1

(xvi) clause (c) of sub-section (2) of section 80GGA;

(xvii) section 80HH;

(xviii) section 80HHA;

(xix) flection 80HHB;

(xx) section 80HHCi

(xxi) section 80-1;

(xxii) section 80J;

(xxih) section 80K;

(xxiv) section 80M;

(xxv) section 80N;

(xxvi) section 80Oj and

(xxvii) section 80QQ.

(3) The deduction under the provisions specified in sub-aeotlon (2) shall, for the purposes of restricting under sub-section (1), the amount or, as the case may be, the aggregate amount of deduction, under those provisions, be allowed in the order In which the said provisions have been specified In sub-section (2), and accordingly —

(a) deduction shall first be allowed under the provision

specified in clause (i) of sub-seotion (2); and

(b) if no deduction ia allowable under the provision specified

in the said olauae d> or the deduction allowable under that

provlBlon ia less than seventy per cent, of the pre-incentive total Income, deduction shall next be allowed under the provision specified in clause fr") of sub-section (2); and

(c) if no deduction is allowable under the provision specified

in the said clause fit', or the deduction under that provision together with the deduction allowed under the provision referred to in the said clause (i), is less than seventy per cent, of the pre-Incentive total income, deduction shall next be allowed under the provision specified in clause (Hi) of sub-section (2) and so on until the aggregate deduction so allowed is equal to seventy per cent, of the pre-incentive total income.

(4) To the extent to whloh full deduction cannot be allowed In the

assessment year in respect of any provision specified in sub-section (2), by virtue only pf the restriction under sub-section (1) (and not by virtue of anything contained in any other section), the amount remaining unallowed shall be added to the amount, if any, to be allowed to the asses see under the said provision for the next follow- ing assessment year and be deemed to be part of the deduction admissible to the assessee under the said provision for that year or, if no such deduction is admissible to the assessee for that year, be deemed to be the deduction admissible to the assessee for that year, and so on for succeeding assessment years. ".

33. Seotion 89A of the Income-tax Act shall be omitted with effect from

the 1st day of April, 1983.

34. in section 109 of the Income-tax Act, In clause (ib), for the Explanation, the following Explanation shall be substituted with effect from the 1st day of April, 1984, namely:-

' Explanation, •— In this clause and in sub-clause (3) of clause (iti)'t the expression "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}

(it) the imparting of any information conctrning the working of,

or the use of, a patent, invention, model, design, secret formula or process or similar property;

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

formula or process or similar property;

(ivy the imparting of any information concerning industrial,

commercial or scientific knowledge, experience or skill;¹.

33. In section 115A of the Income-tax Act, In sub-section (I), with

AntadnMt of

MCtiott 115A.

itfect from the 1st day of June, 1983, —

(a) after clause (a), the following clause shall be Inserted, namely:—

"(aa) Interest received from Government or ah Indian concern on

moneys borrowed or debt lnourred by Government or the Indian

concern in foreign ourrenoyi or"i

(b) for oUuse (b), the following clause shall be substituted, namelyr—

"(b) royalty or fees for technical services received from Govern-

ment or an Indian concern In pursuance of an agreement mmde by the

foreign oompany with Government or the Indian oonoern after the 31st

day of March, 1976, and where suob agreement Is with an Indian

ooaoern, suoh agreement Is approved by the Central Government, "j

(c) after clause ("), the following clause shall be Inserted, namely:—

"(ia) the amount of Income-tax calculated on the Income by way of Interest referred to In clause (aa), If any, Included In the total Income, at the rate of twenty-five per cent.;";

(J) In clause (ivy, for the words, brackets and letter "and clause

(b)", the words, brackets and letters "clause (aa) and clause (b)" shall be substituted^

(e) In the Explanation, after clause (b), the following clause shall be inserted, namely*—

'(bb) "foreign currency" ahall have the same meaning as In the Explanation below item (g) of sub-clause (iv) of clause (15) of aeotion i o ; '.

36. ID the Income-tax Act, after Chapter XH, the following Chapter shall be Inserted with effect from the 1st day of June, 1983, namelyt—

Inaortion of

new Cbtptt

XIM.

'CHAPTER XII-A

SPECIAL PROVISIONS RELATING TO CERTAIN INCOMES OF NON-BXSIDKNTS

Definitions,

115C. In this Chapter, unless the context otherwise requires,-~

(a) "convertible foreign exchange" means foreign exchange whioh Is for the time being treated by the Reserve Bank of India as con- vertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1B73, and any rules made thereunder;

(b) "foreign exchange asset" means any specified asset which the asaeasee has acquired, purchased with, or subscribed to, in conver- tible foreign exchange i

(c) "investment Income" means any income derived from a foreign exchange asset;

(d) "long-term capital gains" means income chargeable under the head '^Capital gains" relating to a capital asset, being a foreign exchange asset which is not a short-term capital asset|

(e) "non-resident Indian' means an individual, being a citizen of India or a person of Indian origin who is not a "resident".

Explanation — A person shall be deemed to be of Indian origin if he, or either of his parents or any of his grand-parents, was born In undivided India;

(/) "specified asset" means any of the following assets, namelyi—

ft) shares in an Indian company i

fit) debentures issued by an Indian company which Is not a

1 of 1956.

private company ai defined In the Companies Act, 18501

(Hi) deposits with an Indian company whioh la not a private

1 of 19M-

company as defined In the Companies Aot, 19861

(iv) any security of the Central Government u defined is

1" of 1944.

ol"ua" (2) of atotlon 2 of the Public Debt Aot, 1B44|

(v) unltt of the Unit Trust of India ••tabliihtd under the Unit

S2 of 1963.

Trust of India Aot, 19"3(

(vt) iuob other aiaet* as the Central Government may specify

la this behalf by notification in the Otflolal Oaxette.

115D. No deduction in respect of any expenditure or allowance shall

be allowed under any provision of this Act in computing the investment income of a non-resident Indian.

Syecinl pro- vision for coir nutation of -.n jr'stment income of noi residents.

fax on mvi,:itm"it

long-term .capital

ijtins.

115E. (1) Where the total income of an assessoe, being a non- resident Indian, consists only of investment income or income by way of long-term capital gains or both, the tax payable by him on hia total income shall be the amount of Income-tax calculated on auch total Income at the rate of twenty per cent, of such income as increased by a sur- charge for purposes of the Union at the rate of twelve and a half per cent.. of such income-tax.

(2) Where the total Income of an assessee, being a non-resident Indian includes any income referred to In sub-section (I), the tax pay- able by him on his total income shall be —

0) the aggregate of the income-tax and surcharge payable by him

In accordance with the provisions of sub-seUioti (11 on income of the nature referred to in that sub-section included In the total Income,*

fl.'us

(ii) the amount of income-tax chargeable en ;he total income aa reduced by the amount of Income of the natuas ,v?orrtfd to in sub- section (I), had the total Income so reduced been his total Income.

115F. (i) Where, in the case of an assesaee being a non-resident

Capital gains on transfer of foreign exchange BSS"S not ro be charged in cwtajn cases.

Indian, any long-term capital gains arise from the transfer of a foreign exchange asset (the asset so transferred being hereafter in this section referred to as the original asset), and the asaessee has, within a period of six months after the date of such transfer, invested or deposited the whole or any part of the net consideration In any specified asset or in an Account referred to in clause (4A), or in any savings certificates referred to in clause (4n), of section 10 (such specified asset or such deposit in the Account aforesaid or suoh savings certificates being hereafter In this section referred to as the new asset), the capital gain shall be dealt with in accordance with the followipg provisions of this section, that is to say,—

in respect of the original asset, the whole of such capital gain shall not be charged under section 451

(h) if the cost of the new asset is less than the net consideration In

respect of the original asset, so much of the capital gain as bears to the whole of the capital gain the same proportion us the cost of acquisi- tion of the new asset bears to the net consideration shall not be charged under section 45.

Explanation.* For the purposes of this aub-aection, —-

•0 }\-.osV\ in relation to any new asset, being a deposit referred to

in clauie (4A) of section 10 or referred to In sub-clause (hi), or gpeculed under sub-clause dn\ of clause (f) of section 115C, means fho amount of auch deposit;

i,:' "net consideration", in relation to the transfer of the original

asHfil, -v-"a;:v *'.f the transfer of such asset as reduced by any expenditure incui'pt'd who^y and exclusively in connection with such transfer.

(2i Where the- now asset is transferred or converted (otherwise than

by transfer) into iTioney,, within a period of I r " y -rs fr ' '

Its acquisition, the amount of capital gain arising from the transfer of tt original asset not charged under section 45 on the basis of the cost of su new asset as provided In clause (a) or, aa the case may be, clause (b; o sub-section (1) shall be deemed to be Income chargeable under the head "Capital gains" relating to capital assets other than short-term capital assets of the previous year in which the new asset Is transferred or converted (otherwise than by transfer) Into money.

115G. It shall not be necessary for a non-resident Indian to furnish under sub-section (1) of section 139 a return of his Income if-—

Return of income not to be filed in certain cases.

1 (a) his total Income In respect of which he Is assessable under thl Act during the previous year consisted only of Investment income or Income by way of long-term capital gains or bothj and

(h) the tax deductible at source under the provisions of Chapter

XVII-B has been deducted from such Income.

115H, Where a person, who is a non-resident Indian In any previous Benefit under Chapter to be available in certain cases 3 even after the assessed becomes

-* resident.

year, becomes assessable as resident In India In respect of the total Income of any subsequent year, he may furnish to the Income-tax Office a declaration In writing along with his return of Income under section 13 for the assessment year for which he Is so assessable, to the effect that the provisions of this Chapter shall continue to apply to him In relation t the Investment Income derived from any foreign exchange asset being an asset of the nature referred to In aub-olause (it) or sub-clause (in) or sub-clause (iv) or sub-clause (vt) of clause (f) of section 115Cj and If he does so, the provisions of this Chapter shall continue to apply to him in relation to such Income for that assessment year and for every subse- quent assessment year until the transfer or conversion (otherwise than by transfer) Into money of such assets,

Chapter not to apply if the assessee so choose*.

r 115-11. A non-resident Indian may elect not to be governed by the provisions of this Chapter for any assessment year by furnishing to the Income-tax Officer his return of Income for that assessment year under section 139 together with a declaration in writing to the effect that the provisions of this Chapter shall not apply to him for that assessment yes and If he does so, the provisions of thia Chapter shall not apply to him for that assessment year and his total Income for that assessment year shall be computed and tax on such total Income shall be charged In accordance with the other provisions of this Act,'.

37. In aectlon 164 of the Income-tax Act, with effect from the 1st day of Amendment of section 164.

April, 1984,-

(a) In sub-section (2), after the word and figure "section 2,", the words,brackets and figures "or which Is of the nature referred to In sub-section (4) of section 11, " shall be Inserted;

(b) In sub-section (3), In the opening portion, after the word and figure "section 2", the words, brackets and figures "or Is of the nature referred to In sub-section (4) of section 11, " shall be Inserted.

38. In section 280Z A of the Income-tax Act, with effect from the 1st

Amendment of

••ctton 2802A.

day of April, 1984,—

(a) tn sub-section (2), for the portion beginning with the words

"arising from the transfer" and ending with the worda "shifting lta machinery", the following shall be substituted, namely*—

"arising from the transfer of capital assets, being machinery or

plant or buildings or lands or any right* In buildings or lands used

for th* porpoMfl of tta buatntas of the said undertaking In th" urban

arm, eifooted In th"ooarg" of or in oon""qu"noe of the shifting of

won industrial undertaking, ntnwlyt—

(a) the amount of expenditure Incurred by the oompany In—

(i) purchasing new machinery or plant for the purposes of the

business of the company in the area to which the undertaking Is

•hlftedi

(it) acquiring lands or constructing buildings for the purposes

of its business In the aald area; and

(itt) shifting It* machinery"ji

(h) in aub-section (4), for the portion beginning with the words "Where

* o ytfal asset" and ending with the words "completion of construction",

the following shall be substituted, namely:—

"Where a capital asset, being machinery or plant purchased for the

purposes of the business of the oompany In the area to which the under-

taking Is shifted or building or land, or any right In building or land,

aoqulred, or as the oase may be, constructed In the said area, Is

transferred by the oompany within a period of five years from the date

of purchase, acquisition or, as the case may be, the date of completion

of construction ",

39. The following amendments (being amendments of a consequential

nature) shall be made In the Income-tax Act, namely:—

Con""quentUl

mnmdmmt* to

certain section*.

(a) In sub-section (3) of section 11, for clause (b), the following

clause shall be substituted, namely:-

"(b) ceases to remain Invested or deposited In any of the forms or

modes specified In sub-section (5), or";

(i>) in sub-section (3) of section 80A —

(i) after the words, figures and letters "or section 80HHB",

the words, figures and letters "or section 60HHC" shall be

Inserted;

(it) the words, figures and letters " or section 80JCbr section

80JJA " shall be omitted with effect from the 1st day of April, 1984;

(c) in sub-seotion (3) of section 80P—

(0 after the words, figures and letters "or section 80HHB",

the words, figures and letters "or seotlon 80HHC" shall be Inserted;

(it) the words, figures and letters "or section 80JJ or seotlon

80JJA " shall be omitted with effect from the 1st day of April, 1984;

(Hi) for the words, figures and letters "section 80HHB,

section 80-1,", the words, figures and letters "section 80HHB,

section 80HHC, section 80-1" shall be substituted;

(iv) for the words, figures and letters "section 80J, section 80.TJ

and seotlon BOJJA", the words, figures and letter "and section SOJ"

shall be substituted with effect from the 1st day of April, 1984.

Wealth-tax

40 (i) Notwithstanding anything oontained In •ectlon 13 of the Finance

13 of I960-

27 of 1957.

R"viv"l of l"vy

fcf wMlth-tu in

the cai" of

cloaoly-held

companlM.

Aot, 1960, relating to exemption of companies from levy of wealth-tax

under the Wealth-tax Aot, 1957 (hereinafter referred to As the Wealth-Ux Act),

wealth-tax shall be charged under the Wealth-tax Aot for every ass""am"nt

year commencing on and from the lflt day of April, X984 :n respect of the aet wealth on the corresponding valuation date of every company, not being a oompany in which the public are substantially Interested, at the rate of two per cent, of such net wealth.

Explanation. ~ For the purposes of thla aub-aection, "company in which the public are substantially interested" shall have the meaning assigned to It In oUuae (IH) of section 2 of the Income-tax Act.

(2) For the purposes of Bub-Boetlon (l)f the not wealth of a company

shall bo the amount by which the aggregate value of nil the assets referred to in sub-section (3), wherever located, belonging to the company on the valuation date la in excess of the aggregate value of all the debts owed by the company on the aluation date which are secured ou, or which have been incurred In relation to, the said assets:

Provided that where any debt secured on any asset belonging to the .lawesnpe fa incurred for, or enurea to, the benefit of any other person, or la not represented by any usuet belonging to the as Ben see, the value of such debt ahnll not be taken into account in computing the net wealth of tho atitjeesoe.

*

(3) The aeoftta referred to ia oub-section (2) shall be the following,

namely ~-

(i> gold, gUvpr, platinum or any other preoioua metal or any

alloy containing one or more of such previous motale;

(it) precious or Berainprecloua stones whether "or not eat in any

furniture, utciiHll or other article or worked or "ewn into any wear- ing apparel;

(iii) ornaments made of gold, sil r, platinum or any other precious metal or any alloy containing one or more of wch precious metal a, whuthor or not containing any precious or semi-precious stone, and whether or not worked or sewn into any, wearing apparel;

(tr> utettBlla made of gold, Bilver, platinum or any other precious

metal or any alloy containing one pr more of such precious metalo;

(v) land other tfinn agricultural land;

(vi) building or land appurtenant thereto, other than building or part thereof used by the asBcesee as factory,, god own, warehouse, hotel or offlca for. the purposes of its buaineao or a* residential aooommodatioo Tor its employee* whose Income chargeable under the head "Salaries" i§ ten thousand rupees or less;

(vii) mtjtor-oara; and

(mii) any other asset which i" acquired or r"pr"""nted by a debt • "- cured on any one or mere of the asset* referred to In clause (0 to olauae

(4) The value of any aftaet specified In sub-section (3) shall, sub]"ot to tho proviBiona of Mub-flootioa (3) at aeotion ,' of th" Wealth-tax Act, bo eatl- matod to bo tha price which, in the opinion of the Wealth-4ax Officer, It would fetch4f~BoLl in tn" open market on the valuation date.

(5) For the purposes of the levy of wealth-tan under the Wealth-*ax Act,

In pursuanoe of the provtekms nt this aeotloo* —

(a) section 6, clause (a) of sub-section (2) of section 7 and olause

(d) of aootlon 45 of that Act and Port n of Schedule I to that Aot shall

not apply and shall have no effect,

(b) the remaining pro via tone of that Aot shall be construed so as

to be In conformity with the provisions of this section.

. (6) Nothing to thli! section shall apply to any Institution, association

" body, whether Incorporated or not and whether Indian or non-Indian,

which the Central Government may, having regard to the nature and

sbject of ^uch Institution, association or body, specify by notification

JI the Offtolal Gazette and every notification Issued under this aub-seotlon

ihatt be laid, as soon aa may be after It la Issued, before eaoh House of

?erilament.

(7) Subject *.o the pro via Ions of sub-section (5), this section

jhall be construed a* one with the Wealth-tax Act.

41. In section 5 of the Wealth-tax Act, in sub-section (1),^

Amendment "'

faction S.

(al for clause (xah the following clause shall b" substituted with

effect from the 1st dfty of April, 19P4, namely:—

"(xa) in the case of an asseasee who is carrying on a profession

(being legal, medical, engineering or architectural profession or the

profession of accountancy or such other profession as Is notified by

tho Central Government in this behalf) and who regularly maintain*

books of account on the caah system of accounting, the amount of sHjr

fee due to him in respect of the services rendored by him in such

professional capacity;1^

14 of MIX

(b) for clause (yvic) / directed to be lnaerted by sub-clause (v) of

clause (n) of section 34 of the Finance Aot, 1982^7, the following olause

ahftll be substituted with effect from the 1st day of April, 19&4, namely t—

'(xvic) in the case of an' individual, being a citizen of India or a

person of Indian origin who is not resident in India, during the year

ending on the valuation date, any foreign exchange asset.

Explanation, — for the purposes of this clause,—

fa) a person shall be deemed to be of Indian origin if he or

either of hit parents ur any of hi* grand-parents was bom In un-

divided India;

(b) an individual shall be deemed to be not resident in bdte

during the year ending on the valuation date if In respect of that

year the Individual Is not resident in fodla within the meaning of the

Income -tax Aot t

(c) "foreign exchange asset" shall have the meaning assigned to

it In olause (b) of section 11OC of the Income-t" Aotj'i

MolUfJ.

. (c) In olause

oUuse (a) of Motion 34 of the Finance Aot, 19B2J, for the words Heuoh

Capital Investment Bonds", the words "to the case of an individual or a

Hindu undivided family, such Capital Investment Bonds" shall be

substituted;

(J) after olause (xviiii, the following olause shall be Inserted, naufcelyt-

"(xfiik) any property being a medal, trophy or aa award to Mm!

received by the assessee for any attainment, woric or ooatrtbutloa In

any field If such medal, trophy or award In kind 1* received by the

assessee from Government or from a University established by law or

an Institution affiliated to such University or from any such Institution,

association or body as Is approved for the purposes of this clause by

the Central Government.

Explanation,, — Any approval for the purposes of this clause may be

given by the Central Government so aa to have effect from a date not

earlier than the 1st day of April, 1983 j ".

Gift-tax

U of 1951.

42. In section S of the Gift-tax Act, 19B8, In sub-seotlon (l)f —

AMMdnmtof

Motions.

14 "(1982.

(a) In clause (iid) /~ directed to be inserted by clause (a) of section 3

of the Finance Act, 1B82_7, for the portion beginning with the words "sav)

certificates" and ending with the words "rulea made thereunder", the

following shall be substituted with effect from the let day of April, 1984,

namely :—

"any foreign exchange asBet as defined in olauae

of the Income-tax Act;";

(b) in clause (iiic) /"directed to be Inserted by clause (b) of section 38

14 of 1063.

of the Finance Act, 1982 J, 'or the words J'of property in the form of

such Capital Investment Bonds", the words ("being an individual or a

Hindu undivided family, of property In the form of euch Capital Invest-

ment Bonds" shall be substituted.

Interest-tax

45 of 1974.

43. In section 4 of the Interest-tax Act, 1974, the following proviso

Amtadacnt of

MCtlOB 4.

shall be inserted at the end, namelyi —

"Provided that the rate at which Interest-tax shall be charged In reap

of any chargeable interest accruing or arising after the 31st day of Marc

1983 shall be three and a half per cent of such chargeable interest, ".

CHAPTER IV

INDIRECT TAJUCS

Customs

iMndmant of

to SI of 1975.

44. The Customs Tariff Act, 1976 (hereinafter referred to aa the A

Customs Tariff Act), shall be amended In the manner specified In the *

Second Schedule.

AtUtUlMT

fetlMOf

eutoas.

45. (1) In the case of goods mentioned In the First Schedule to the

Customs Tariff Act, or In that Schedule, aa amended from time to time,

there shall be levied and collected aa an auxiliary duty of customs an

amount equal to fifty per cent, of the value of the goods as determined

Ln accordance with the provisions of section 14 of the Customs Aot,

1962 (hereinafter referred to as the Customs Act).

S3 of 1962.

(2) Sub-section (l) shall cease to have effect after the 31st day of

io of urn.

March, 1984, exoept as respect* things done or omitted to be done

before such cesser; and section 6 of the General Clause* Act, 1897,

shall apply upon such cesser as If the said sub-seotlon had then been

repealed by m Central Act.

(3) The auxiliary duties of custom* referred to In attraction (1)

shall be In addition to any dutlea of custom* chargeable on such good*

under the Customs Act, or any other law for the time being In force.

(4) The provisions of the Customs Act and the r u lo and regulation!

made thereunder, Including those relating to refunds And exemption*

from duties* shall, as far as may be, apply In relation to the levy tnd

collection ol the auxiliary duties of customs leviable under this section

•In rosp^ct of any goods an they apply In relation to the levy and

collection of the duties of customs oo suoh goods under that Act or

theme rules and regulations,, aa the case may be,

46. in section 2 ol the Customs Act, In clause *(I2), after the

•action 7.

words "n customs port", the word*, brackets nnd letters ", and

Includes a place appointed undor clause •(.",) ol that section to be

an inland cont-!n

47. In auction 7 of the Cuatomfl Act, alter clause <"), the follow-

Amendment ol

vecUon 7.

ing elfluac nhall bo Inserted, namelyi-

"(aa) the places which ulono shall be Inland container depots for

the unloading of Imported goods and the loading of export goods

or any cla"" of such goods;".

4fl, In section 23 of the Customs Act, In sub-section (I), —

Amendment o

•oc'Uon 21

(a) for the word* "Whoro It la shown", the words And figures

"Without prejudice to the provision* of section 13, where tt Is

shown" shall be eiibatUgtud;

(b) uftor the worda "hnve been lost", the brackets and words

"(otherwise than aa a result of pilferage)" shall be Inserted.

49. In flection 25 of the Customs Act, after sub-section W, the

fallowing oub-soctlon and Explanation shall be Inserted, naoielyj—

Aoitmdin"Bt ol

•*cUipn 25.

'(3) An exemption under sub-section (IX or sub-iectlon (2) In

roepect o( any goods from any part ol the duty of customs leviable

thereon (the duty of custom* leviable tht'roon bolng herolnaifei

referred to aa 0>P Blotulory duty) may be grtnted by prcvldlnn for

the levy oi t auty on auch goods at t rate cxprost"d In a form or

method "different fjon. Uie form or method In which th" "tatutory

duty la leviable and any exemption (rrwtod In relation to "ny

goods In the manner provided tc this •uh-soclioo shall hfcve efitcl

oubject to th

suoh goods ohall In nt caae exceed thesUlutorj

Explanation.— "form or method*", IL relation to t "ate of dui>

of cuotonw, means the basis, namely, valuation, weight,, nu"nbfi"f

lengtli, area, volume or othar measure with referenoe to whlcli

the duty Is leviable.'.

50. Section 61 of the Customs Act shall be numbered aa sub-

section O) thereof, and—

(a) In "ab-*eotlon (i)% as no numbered, for the words "thr"e

years" and "one year", wherever they occur /"except the

second place at which the worda "one year" occur In sub*

clause (X) of that aub-*ectlon_7, the word* "one year" and

"threw months11 shall, respectively, be substituted and for

the words "one year" at th" second plaoe whew thay occur m

Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 33_

the said sub-olause (it), the words "elx montha" shall be substituted;

(b) after aub-oectton (1) as so numbered, the following sub-

section shall be Inserted, namely:—

"(2) Where any warehoused gooes remain la a warehouse

beyond the period of one year or throe months speolflod In clause (a) or clause (b) of sub-section (I) by reason of the extension of the aforesaid period or otherwise, Interest at such rate, not exceeding eighteen per cent, per annum, SA IS for the time being fixed by the Board, shall be payable on the amount of duty on the warehoused goods for the period from the expiry of the period of one year or, ae the case may be, throe months, till the date of tho clearance of the gooda from the warehouse,".

ta"ndm*nt of

>ectton 74.

51, Iu section 74 of the Customs Aot, In sub-section (I), for the words "exported to any place outside India", the words and figures "entered for export and the proper officer makes an order permitt- ing clearance and loading of the ,;ood9 for exportation under section 51 "shall be substituted.

32. In section 75 of the Customs Act, In sub-seotlon (1), for the

Amendment of

BOction 75.

words "and exported to any place outflldo India,", the worda and figures ", being goods which have been entered for export and in respect ol which an order permitting the clearance and loading thereof for cxporti+tlon hw) been mado under oectlon Bl by the proper officer," shall be substituted.

53. In section 7G of the Customs Act, In sub-aectlon (1),-

Amendment t>[

lection 76.

(a) clause (a) shall be omitted;

(0) In clause (r), for tho words "five rupees", tho worda

"fifty rupees" shall be substituted.

Excitr

54. The First Schedule to the Central Exclaea and Salt Act, .1944

Amendment of

Act I of I944,

(hereinafter referred to AS the Central Excises Act).—

(a) shall be amended In the manner specified In the Third Schedule, and

(h) shall, with effect from Buch dnte as tho Central Government may, by notification In the Official Gazette, appoint, bo also amended In the manner specified In the Fourth Schedule.

55. CO In the case of goods chargeable with a duty of excise under the Special duttm kf oxcine.

Central Excises Aot, as amended from time to time, read with any notification for the time being In force Issued by the Central Government In relation to the duty so chargeable (not being a notification providing for any exemption for giving credit with respect to, or reduction oi duty of excise under the said Act on such goods equal to, any duty of excise under the said Act, or the additional duty under section 3 of the Customs Tariff Act, already paid on the raw material or component parts used Ln the production or manufacture of such goods), there shall be levied and collected a special duty of excise equal to ten per. cent. e\( fhn nmnnnt an nhnnrAshla nn Much eriviria

34 THE GAZETTE OF INDIA EXTRAORDINARY fPART H—

(2) Sub-section (l) shall o e ue to have effect after the 31st day of

March, 1984, except am roapecta thing* done or omttted to be done

before such oesser; and aectlon 6 of the General Claoaea Act, 1897,

10 of U97.

• h a ll a p p ly u p on s u ch c e a a er M tf t he s o ld l u b - a e o t l on h ad t h en b e en

repealed by a Central Act. .

(j) The apodal dutlea of exolae referred to In aub-aeotton ()) ahall

be In addition to any duties of exolae chargeable on auoh good* ander

the Central Exolaea Act, or any other law for the time being In force.

(4) The provisions of the Central E x c i t es Act and the rules made

thereunder, Including those relating to refunds and exemptions from

duties, shall, as far M may be, apply In relation to the levy and

collection of the special duties of excise leviable under this section

In roapect of any good* a* they apply In relation to the levy and

collection of the duties of excise on such goods under that Act or

those rules, as the case may bo,

56. The Additional Duties of Excise (Goods of Special Importance)

Aa*ft4m"nt of

Act Sir of 1957

Act, 1957 (hereinafter referred to as the Additional Duties of Excise

Act), shall be amended In the manner specified In the Fifth Schedule.

37. In section 3 of the Additional 1 mtles of Excise (Textiles and

Amaodment of

Act 40 of 1978

Textile Articles) Act^ 1078, for aub-iectlon (i£ the following s u b-

section shall be substituted, namely:-

"(1) When good* of the description mentioned In the Schedule

chargeable with a Uuty of e x c i se under tho Contra! Excises and

Salt Act, 13-14, rend with any notification for the time being In

force Issued by th

so chargeable (not being a notification providing for any

exemption for giving credit with rcjspect to, or reduction of

duty of excise uncU;r tho sold Act on such goods equal to, any duty

"T cKcloe under th< eald Act, or the additional duty under section

3 of tho Cuutams 1 arlff Act, 1973, already paid on the raw

material used In tt e production or manufacture of such goods),

are aeseaaed to du y, there ahall be levied and collected a duty

of exclao equal to fifteen per cent, of the total amount so

chargeable on such goods.",

CHAPTER V

MISCELLANEOUS

30. 'In the F i r st Schedule to the Icdlan Post Office Act, 1898,

AModMBtof

Act 6 of I S M.

for the sub-heading "Parcels" and the entries thereunder, the

following shall be substituted, naxnelyi-

"Parc"U

For a weight not exceeding

five hundred grams Hs. 3. Oft

For every five hundred grams

Or fractloo thereof,

exceeding five hundred grains Hj.3.00,",

59. In fit* Compulsory Deposit Scheme (Income-tax payer*) Act,

A—(fa-t

A"t3B*

fr; la s e c t i o n s ,-

(i) Is. cub-aecdon (I), for the figures, letters sod words

"1st day of April, 1984", the figures, letters and words "1st

day of Avrtl. 1888" shall be substituted;

SEC. 2J THE GAZETTE OF INDIA EXTRAORDINARY 35

(n) In sub-section (3), for the worda "seventy yea:•".the

worda "sLuty-flve years" shall be substituted with effect from

the l it day of June, 1983;

(b) In Motion 4, In sub-seotlon \1), In, clause (i"). for the worda,

figures and letters "and the assessment year commencing on the 1st

day of April, 1083", the words, bracket*, figures and letters "and

every subsequent assessment year (not being an assessment year

commencing on or alter th" 1st day of April, 1986)" shall be

"ubstltuted;

(c) In section 8, In sub-section (fA), for dauaes (i) and (U), the

following olauaea shall bo substituted with effect from the lat day

of June, 1083, namely:—

"(i) where auch Individual h^j attained the age of sixty-five

years before the 1st day of April, 1983, on the 1st day of June,

1983; and

(H> In any other oase, on the first day of the financial year

Lmmadlataly succeeding the financial yoar In which such

Individual attained sixty-five years of age.".

Declaration under the Provisional

Collection of Taxes Act, 193U

It Is hereby declared that It la expedient In the publto Interest that

H of 1931.

tit* provisions of clauses 44 and 46, clause 54 / e x o e pt sub-clause

effect under the Provisional Collection of Taxes Act, 1961.

36 THE GAZETTE OF INDIA EXTRAORDINARY fP*m II—

THE FIRST SCHEDULE

(See section 2)

PART I

INCOME-TAX WD simcnAiioe ON INCOMC-TAI

Paragraph A

Sub'Paragnipbi I

In the cape of every Individual or Hindu undivided family or unregiBierou iirw or

aagoclatlon of person* or body of Individuals, whether Incorporated or not, or eve

artificial Juridical person referred to In sub-clause (mi) of clause (31) of section 2

toe Income-tax Act, not being a caoe to which Sub-Paragraph II of this Paragraph (

any other Paragraph of this Part applies,—

Rates of income-tax

(1) where the total Income

A';/,

docs not exceed H", 15,000

(2/ whore the total tnoome exceeds

30 por cent, of the amount by which

the total Income exceeda Ho. 15,000;

Rs. IS, 000 but does not exceed

Us. 25,000

(3) where tho total Income exceeds

Rs.15,000 but doea not exceed

R/*.3O, 000

Ha. 3,000 plu* 34 per cont. of the

amount by which the total Income

exceeds Ra, 25,000;

(4) where the total Income- exceeds

Ea.4,700 plus 40 per cent, of the

amount by whtch the total Income

exceeds Kw.30, 000;

Ro. 00,000 but doce not exceed

IU.50, 000

(5) whore the total Income exceed*

Ra. 12,700 plus SO per cent, of the

amount n>y which the total Inoomo

exceeds Its. 50,000;

Ks. GO, 000 but does not exceed

KB. 60,000

(0) where tho total Income exceeds

Bs.17,700 plus 52.5 por cent, of the

Amount by. which the total Income

exceeds Rs. 60,000;

Ha. 60, 000 but does not exceed

Hs.70,000

(7) where the total Income exoeedj

Ra.22,950 plus 56 per cent, of the

amount by which the total Income

oxooedj Rs.70,000;

R*.7 0,000 but does not exoeed

RB. 85, 000

(8) where the total Income exoeeda

Rs. 31,200 ptu$ S7.6 p*r cent, of

the amount by which the total lnoome

exoe*ds Rs, 08,000;

R". 86,000 but do"s not exceed

H*. 1,00,000

(9) where the total Inoome exceed*

R i, 1,00,000

Rs. dut, 826 plvt 60 per oent. of the

amount by which the total Inoome

exoeedflBi. 1,00,000.

Surcbargt on mcoma-tax

The amount of Income-tax computed In accordance with the preceding provision* of

thl" Bub-Parajraph shall be Inoreased by a surcharge for puxpoM* of the Union oal-

oulotod at the rat* of ton per cent, of auoh lnoome-tax.

Sffc. 2] THE GAZETTE OF INDIA EXTRAORDINARY 37

Sub-Paragraph If

In the cone of every Hindu undivided family which at any time during the previous year hu at leaat one member whose total Income of the previous year relevant to tho assess- ment year commencing on the lot day of April, 1983 exceeds Rs, 15,000,—

Hates of income-tax

Nil;

(1) where the total Inoomo does no* exceed Ro. 8,000

(2) where the total Inoome exceeds R", 4,000 but does not exoeed Ra. 16,000

(3) whore the total Income exceeds Ra. 15,000 but does not exceed Ra, 20,000

(4) where the total Inoomo exceeds Bo.20,000 but does not exceed Re.25,000

(5) where the total Income exceeds Rs.85,000 but does not exceed Ra. 30,000

(0) where the total Income exceeds R",30B000 but does not exceed Ra.50,000

(7) whore the total Inoome exceeds RB. 50,000

22 per cent, of the amount by which the total Inoome exceeds Rs, 8,000;

Rs, 1,540 plus 27 jwr cent, of the amount by which the total Income exceeds Ra, 15,000;

Ra.2, 8D0 plus 35 per cent, of the amount by which the total Income wcoeeds He. 20,000;

Rs.4, C40plus 40 per cent, of tho amount by which the total Income exceeds Ra.25,000;

Ra. 6,640 plus 50 per oent. of the amount by which the totul Inoome exceeds Ra, 30,0'JOj

Rs. 16,640 plus CO per cent, of the amount by which the total Income exceeds Ha. S0,0OOj

Provided that for the purposes of this Sub-Paragrnph,—

(i) no Income-tax shall be payable on a total lnoamo not exceodlng Re. 12,000;

(to) where the total Income excoods Rs, 12,000 but does not oxceed Ra. 17, 610, the income-tax payable thereon shall not exoeed forty per cent, of the amount by wlUch the total Inoome exceeda Ra. 12,000.

Surcharge an income-tax

The amount of Income-tax computed In aooordnnoe with the preceding provisions of thin Sub-Paragraph shall be Increased by a surcharge for purposes of the Union calculated at the rate of tan per cent, of such Income-tax.

Paragraph 8

t^ llL,,—. An.^.jh n*M 1. • . n in ^tuM. . MuiwAllnrt m"i.r'il A^t* -

Rates of income-tax

(1) where the total Inoome does not oxoved H". 10,000

(2) where the total Income exceeds Hi. 10* 000 but doeg not exoeed RB. 20,000

(3) where the total Inoome exoeed* Hi.30,000

16 per cent, of the total income;

Ra. 1,500 pins 26 per oent of the amount by which the total Income exceeda Ri.l0,000|

Hi. 4,000 plus 40 per cent, of the amount by which the total Income exoeed* Ra.30,000.

Surcharge on income-tax

The amount of Income-tax oomputed In accordance with the preceding provlnlon* of this

Paragraph "baU be Increased by a •uroharge for purpoeee of the Union calculated at the

rate of ten per oent. of auoh Income-tax.

3" THE GAZETTE OF INDIA EXTRAORDINARY" [PART H—

Paragraph C

Sub-Paragraph I

la the cane of every registered firm, not being a case to which Sub-Paragraph n of this

PoriurraDh aoolLea.—

Rates of income-tax

(1) where the total Inoome doe* not

Ml;

exceed Ra,10,00n

(2) where the total Inoome exoeeda

KB. 10,000 but does not exceed IU.2B, 000

5 per oant. of the amount by which the

total Inoome exoeeds Ri, 10,000;

(3) where the total Inoome exceed*

Ha,25,000 but noes not exceed Ha, 50,000

fis.750 plus 1 per cent, of the amount

by which the total Income exoeeda Rs,£6,000|

(4) whe. e the total Inoome exceeds

Bo. 50,000 but does not exceed

B B. 1,00,000

SRs.2,500 plus 15 par cent, of the amount

by which the tot"i Income exceeda

Rs. "50,000:

(5) whore the total Income oxoeeds

F". 1,00,000

Ba. 10,000 plus 24 per cent, of the amount

by which ti"t total Income exceeds

R". 1.00.000.

Surcharge an income-tax

The amount of Income-tax computed in accordance with the preceding provisions of this

Sub-Paragraph shall be Increased by a surcharge for purposes of the Union calculated at

the rate of ten nor cent, of auoh inoomA-tax.

Sub-Paragraph II

In the cane of every registered firm whose total Lncomo Includes income derived from a,

profession carried on by It and the Income 00 Included la not leas than fifty-one per oent.

of ouch total Income.—

Rates ofmcome-tax

(1) where the total Inoome does not

Nil;

exceod Ho. 10,000

(2) where the total Inoome exceeds

Ho. 10,000 but does not exceed R". 25,0*0

4 per oent, of the amount by which the

total Income exoeeda Bs.10,000;

(3) whore the total Income axceoda

Rs. 000 plus 7 per cent, of the amount

by which the total Income exoeeds Ha. 26,000j

Rs.25,000 but does not exceed Bo. 50,000

(4) where the total Income exceeds

R",2,350p/tti 13 per cent, of the amount

by vfh'cb the total Income "xco"ds

Hs. 50,000 but does not exceed

Re. 1,00,000

R B4B O , 0 0 0;

(5) where the total Income exceeds

Bs, 1,00,000

Bs, 6,850/>'" 22 per oent. of the amount

by which the total Income exoeeda

RD. 1,00,000.,

Surcharge on income-tax

Tho emount of Income-tax computed In accordance with the preceding provisions ct

thla Sub-Paragraph shall be Increased by a surcharge (or purposes of the Union eal-

oulated at the rate of ten per cent,, of auoh Inoome-tax.

Explanation.-* F-r the purposes of thla Paragraph, "registered firm" Includes an

unregistered firm assessed as a registered firm under clause (b) of section 183 of the

Income-tax Act.

Sic. 2] THE GAZETTE OF INDIA EXTRAORDINARY 39

Paragraph D

In the o ut of ev"ry local authority,—

Rat* of income-tat

On the whole of the total lnoome SO par cent.

Surcharge on income-tax

The amount of Income-tax computed at the rate hereinbefore •peolfled •hall be Increased

by a surcharge for purpose* of the Union ooloulatod at the rate of ten per oent. of iooh

lnnnn"-tu.

Pamgmpb EturognxyD a

In the oaae of a oompany,—

Rates of income-lax

I, In the oaae of a domestic company,—

<1) where the company la a oompany In

whloh the public are substantially Interested,—

(0 In a case where the total Income does

45 per cent, of the total Income)

not exceed Rs.1,00,000

(U) In a case where the total Income

$5 per cent, of the total Income}

exceeds Re. 1,00,000

<2) where the oompany Is not a company

In whloh the public ore substantially Interested^

r-

(0 In the case of an Industrial company,—

(a) where the total Income does not

55 per cent, of the total Income)

exoeed Hs.2,00,000

40 per cent, of the total Income;

(b) where the total Income exceeds

Rs. 2,00,000

cp per cent, of the total Income i

(it) In any other case

Provided that—

(i) the Inoame-tax payable by a domestic company, being a company In which the

public are substantially Interested, the total Income of whloh exceeds Rs, 1,0©, 000,shal

not Oxosed the aggregate of—

(a) the Income-tax which would havefjeon payable by the company If Its total Income

had been Rs. 1,00,000 (the Income of Rs. 1,00,000 for this purpose being computed as

If such Income Included Income from various sources In the same proportion M the

total Income of the oompany); and

(b) eighty per cent.of the amount by which Its total Income exceeds Rs. I,00,000;

(it) the Income-tax payable by a domestlo oompany, not being a oompany In which the

public are substantially Interested, whloh Is an Industrial company and the total Lnoome

of whloh exceeds Rs. 2,00,000, shall not exceed the aggregate of—

(a) the Income-tax which would have been payable by the oompany If Its total lnoome

had been Rs. 2,00,000 (the lnoome of Rs,2,00,000 for this purpose being computed aa

If such Income Included Income from various source* In the same proportion m the

total lnoome of the oompany) j and

, (b) eighty per cent, of the •mount by whloh Us total lnoome exo**da Ba.1,00,000.

4" THE GAZETTE OF INDIA EXTRAORDINARY [ P A" H_

II, In the case of m company other than a domestic company,—

f"l on to much of the total Income MI

COOJUU ok>~i

n,1 royalties received from an Indian

oonoern In pursuance of an agreement

mud* by tt with the Indian concern after

the Slat day of March, 1061 b"it tjelcre

th* 1st day of April, WO, or

ib) lees for rendering technical nervtres

received from an Indian concern In i"urvuano"

of an agreement made by U whli the Indian

oonoern after the 29th day of February,

1964 but before the 1st day of April, 1"76,

and where "uch agreement haa, In either 60 par oent. \

case, been approved by the Central Government

(it) on the balance,tf any, of the total Inoome 70 per cent.

Surcharge on inconW'tax

The amount of Income-tax computed In accordant* with the prajoftdlng provUtoM of

this Paragraph shall bo Lnaretaedj by a surcharge calculated at th* rat* of two and *

Naif per oent. of such Income-tax.

PART D

Kattt for deduction of tax at tourct in ctrtai.t anti

In every case in which under the provisions of sections 193, 194, l&iA. 1MB, 1MBB,

I94T) and 196 of the Income-tax Act, tax la to he deducted at the rates tn force, deduction

ifcaii be made from the Inoome "u)>Ject to deduction at the following ratest—

Ihconje-tjui

Rate of Rate of

lncom"-ta* surchitrat

1. In fte case of a person other olan a company—

(a) where the person In resident in India—

M> per oent, Mi

("; on income by way of interest other than "Interest

on Mcurittet"

(ii)oa Inoome by way of winnings from lotteries and

SO psr os"V 8.7B psr cet.t. |

orossword puseles

SO per oent. 9,75 per eenU t

' (iii) on Income by way of winnings from horse rsoes

10 per osat, NU;

(h) on Inoome by way of Insurance commission

10 per oent. NU;

(v) on Inoome by way of Interest payable on

?>t;any security, other than a tax-free security, of

th* Central or a Stats Government!

(B) any debentures or otfcar securities for money

, Issued by or on behalf of any loot! authority or a

corporation established by t Central, State or

Provincial Aoti

Income-tax Rite of Rate of Inoome-tax surcharge

(Ci any debentures issued by a company where such debentures arc* listed in 0 recognised stock exchange in India in accordant* with the Securities Contracts (Regulation) Act, 1966, and any rule* made thereunder

4} "t W ".

20 per cent. 2.8 per cent. | (vO °n *ny other Income {excluding interest payable

on P tax-free security)

(tj wJiwre the person is not resident la India—

(i)in (he oaae of a non-resident Indian—

(At on investment Income and long-term oapital gala* 20 per oent. 2. B par oent, t

(B) on income by way of interest payable on a tax-

IB per cent 1,875 per cent. | free security

(C) on the whole of the other income

income-tax at 30 per cent, and surcharge at 3.7S per cent, of Hie amount of the ltlCOttifl.

or

Income-tax and surcharge on income-tax in respect of the income at the rates prescrll^ed in Sub- Partifrraph I of Paragraph A of Part HI of this Schedule, if euch income had been the total inoome,

whichever is highert

(ii) in the oaae of any other pereoc—

(A) on the whole of income {excluding Interest

payable on a tax-free security)

income-tax at 30 per cent. and surcharge at 3,75 per cent, of the amount of income,

or

income-tax and surcharge on income-tax in reipcct of the inoome at the rates prescribed in Sub- Paragraph I of Paragraph A of Part in of this Schedule, If such Inoome had been the total inoome*

whichever is higher;

(B) on inoome by way of interest payable on a tax-free 16 per oent. 1.878 per cent, | seourlty

X. In the oase of a company—

(a) where the company Is a domestic company—

(i) on inoom" by way of interest other than ''Interest 20 per oent, 1 par owt.;

a Mourittei"

fW on any other inoome (moluding interest payabU on BL 6per oaot 1.07ft per oent. i

a tax-free Monrlty)

42 . T HE G A Z E T TE OF I N D IA E X T R A O R D I N A RY [ P A UT E - ^ ' ' •'

moo mo-tax

Sat* of

; surcharge

Rate of

lnoome-tax

(b) where the company Is not a domestio oompany—

28 per oent,

(i) on lnoome by way of dividends payable by any

domeotio company

35 per cant.

Nil;

1

(ii). on lnoome by way of Interest payable by Government

or an Indian concern on money* borrowed or debt Incurred

by Government or the Indian oonoern in foreign currency

40 per cent.

Nil;

(tii) on lnoome by way of royalty payable by Government

or an Indian oonoern In pursuance of an agreement mad*

by it with the Government or the Indian cancer a

after the 31st day of March, W76, where ouch

royalty la In consideration for the transfer of all or any

righto (lnoludlng the granting of a licence) In respect of

copyright In any book on a subject referred to In the

proviso to sub-section (lA)ot section USA of the Income-

tax Act, to the Indian oonoern

(iv) on income by way of royalty /not belog royal*y of

me nature referred to in sub-item (b) (Hi) J payable

by Government or an Indian concern In pursuance of

of an agreement made by It with the Government or the

Indian concern and which has been [approved by the

Central Government, —

1

CO per cent

2,8 per cent)

(A) where the agreement Is mode after the 31st

day of March, 1961 but before the 1st day of April"1976

(B) where the agreement la made after the 31st

day of March, 197(5—

(1) on so much of the amount c(f such lnoome as

20 percent

Nil;

consists of lump sum consideration for the transfer

outside India of, or the impartii g of Information

outside India In respect of, anj data, documentation,

drawing or specification relatln; to any patent,

Invention, model, design, secrJt formula or process,

or trade mark or similar property

Nil;

40 per cent.

(2) on the balance, if any, of such Income

(v) on lnoome by way of fees for technical services

payable by Government of an Indian concern In pursu-

ance of an agreement made by it with mo Government

or the Indian concern and which has been approved by

the Central Government -

2.5peroent.l

SO per oent.

(A) where the agreement la made after the 29th day

of February, 19&4 but before the 1st day of April, 1978

40 percent.

Nil;

(B) where the agreement la.made after the 31st day

of March. 1976

44 percent.

2.2 per cent.;

(vi) on lnoome by way of lnterest'payable on a tax-free

security

3.6 per cent.

70 per cent.

(pit) on any other income

Explanation.— For the purpose• of this Part, "Investment Income", "long-term

capital gains " and "non-resident Indian" shall have the meaning* assignedtothem In

Chapter XII-A as directed to be inserted in the Inoome-tax Act by Motion 38 of this Aot.

8*c. 2] THE GAZETTE OF INDIA EXTRAORDINARY 43

FART m

Rates for calculating or charging income-tax in certain cases, deducting income-tax

from income chargeable under the bead Salaries" or any payment referred to in

subsection (9) of section 80E and computing "advance tax".

or demoted under sub-seotion^of section 80E of the said Act from any p a y m e ^ ™^

to in the s"ldsub-section^r In whioh the "advance tax" payable und^ S p t er ^ S" of

L £ ^ !£ ^ O o r a p u t e d' ftt t he r a te " ^eB to force, such income!* or, as the

oaae may bo "adrai.ce tox" (not beln.* "advance t "" In respect of any ineone charmable

" " i 7^ ^^ ** r a t eB *s *Peo"fl"d to that Chapter or oectton) ohall be so

calculated, charged, deducted or computed at the following rate or rate":-

Paragraph A

Sub-Paragraph I

i?<7t<*j of income-tax

(1) where the total income does not exceed

Nil;

Ba.16,000

Us. 16,000 but does not exceed Rs.20,000

23 per cent, of the amount by which the

total Income exceeds Ro. 15,000;

(3) where the total Income exceeds

Rt. 20,000 but does not exceed Re. 25,000

RB. 1, 250 plus 30 per cent, of tha amount

by whioh the total income exceodsHa.20,000;

(4) where the total Income exceeds

Ri.35,000 but does.not exceed Re. 30,000

Ra.2,750 plus 35 percent, of the amount

by which the iotal income exoeeds Re. 25,000;

(6) where the total Income exceeds

KB.80,000 but does not exceed Rs. DO,000

R B . 4, 500 plus 40 per cent, of fho amount by

which the total income exceedB R B . 3 0 , 0 0 0;

(6) where the total Income exceeds

R". 60,000 but does not exceed Ro. 60,000

Rs. 12,800 plti: 50 per oent"of the amount

by which the total income exceeds RB. 50,000;

(7) where the total income exoeeds

Rs. 60,000 but does not exceed Rs. 70,000

Rs. 17,500 plus 62.5 per cent.of the

amount by which the total income exceeds

Rs. 60,000}

(8) whare the total Income exoeeds

Bs.70,000 but does not exceed Rs. 86,000

Rs. 22,760 plus 56 per cent,of the amount

by which the total Uoome exceeds Ra.70,000i

(9) where (he total Income exoeeds

RB. 86,000 but does not exceed Re. 1,00,000

RB. 31,000 plus 67.6 per oent.of the

amount by which the total income

exceedsRs.86,000-

(10) uhere the total Income exceeds

Ri.1,00,000

R B . 3 9 , 6 25 plus 60 per oent.of the amount

by whioh the total Income exceeds RB. 1,00,000.

44 THE GAZETTE OF INDIA EXTRAORDINARY [PART Et-i

Surcharge on income-tax

The amount of Income tax computed In accordance with tha preceding provisions oi this

Sub-Paragraph shall be Inoreased by a suroharge for purposes of the Union calculated at

the rate of twelve and a half per cent, of such Income-tax.

Sub-Pfintgmph U

In the o"se of every Hindu undivided flfcnily which at any time during the previous year

has at ieaat one member whose total Income ot the previous year relevant to the assess-

ment year commencing on (he 1st day of April, 1984 exceeds Rs. 15,000, -

Rater of' ineoma-tax

(1) whore the total income does not

N il

exceed Rs.3,000

(2) where the total income exceeds Rs, 8,0'

50 22 per cent, of the amount by whicf) the.

but does not exceed Rs. 15,000

total Income exceeds Rs. 8,000)

(3) where the total Income exceeds

R*. 12,000 butdoea not exceed its. 20,000

R a. 1,640 plus 27 per cent, of the amount

by which the total Income exceeds Rs. 10,OOO<

(4) where the total Income exceeds

Rfl.20,000 but does not exceed Rs.25,000

Ra,2,890 pint 36 per cent, of the amount

by which the total income exceeds Rs.2Af^0Oi

<5) where the total incomo exceeds <

Rs. 25,000 but does not uxceed Rs. 30,000

Rt.4,640 phn 40 por cent, of the amount

by which the total Income exceeds H*, 26,0001

(6) where the total Income exceeds

Ra. 30,000 but do"B not exceed Rn. 60,000

Rs.6,640 plus 50 per cent, of the

amount by which the total income

exoeeds Rs.30,000;

(7) whore the total Income exceeds

Rs. 16,640 plus 60 per cent,of the amount

hv xvhinh Din total Ineoma nxnand^Rii. AA.nnnt

Ha. 50.000

Provldod that for the purposes of this Sub-Paragraph,—

(ii) where the total Income exceeds Rs. 12,000 but does not exceed Rs. 17,610. the

income-tax payable thereon shall not exceed forty per cent, of the amount by whioh the

total Income exoeeds Rs. 12,000.

Surcharge on income-tax

The amount of income-tax computed In acoordanoe with the preceding- provisions ,

of this fiub-Paragraph shall be Increased by a surcharge foriurposes of tha Union

calculated at the rate of twelve and a half par cent, of suoh income-tax.

Paragraph B

la th" ease of every co-operative society, —

Races of income-tax

15 per cent, of the total Income)

(1) wbere ths total Income does not exceed Ra.10,000

<3) where tb* total income exceeds

Rs. 1,600 plus 26 per cent, of the amount

by which the total income exoeeds Ra. 10,0001

R*. 10*000 but doas not exoeed R J , 2 0 , 0 00 0) where tbe total Income exoeeds Re.30,000

Ra.4,000 plut 40 per cent, of,me amount

by whioh the total Income exoeeds Be. 20,000.

SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 4^

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 purposes of the Union

calculated at the rate of twelve and a half per cent, of such Income-tax.

Paragraph C

Sub-Paragrnph I

In the case of every registered firm, not being a case to which Sub-Paragraph U

of this Paragraph applies, —

Rates of income-tax

(1) where the total income does not exceed

AW.

Ra. 10,000

5 per cent, of the amount by which the

total income exceeds Rs. 10,000;

(2) where the total income exceeds

Rs. 10,000 but does not exceed Re. 25,000

(3) where the total income exceeds

Rs.7 50 r'1|X ^ Per cent of the amount

by which the total income exceeds Rs. 25,000;

Rs. 25,000 but does not exceed Rs. 50,000

(4) where the total income exceeds

Rs. 50,000 but does not exceed P s. 1,00,000

Rs. 2,500 />/"" 15 per cent, of the

amount by which the total income

exceeds Rs. 50,000;

(5) where the total income exceeds

RB. 1,00,000

Rs. 10,000 plus 24 per cent, of the

amount by which the total income

exceeds Rs.1,00,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this

Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at

the rate of twelve and a half per cent, of such income-tax.

Suh-Parai>rapb II

In the case of every 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 suoh total income, —

Hates of income-tax

N//

(1) where the total income does not exceed,

Rs. 10,000

(2) where the total income exceeds

4 per cent, of the amount by which the

total income exceeds Rs. 10,000;

Rs. 10,000 but does not exceed Rs. 25,000

(3) where the total income exceeds

Rs. 25,000 but does not exceed Rs. 50,000

Rs.600 plus 7 per cent of the amount

by which the total Income exceedaRs.25,000;

(4) where the total Income exceed a

Rs. 50,000 but does not exceed Rs. 1.0Q000

Rs.2,350 plus 13 per cent, of the

amount by which the total income

exceeds Rs.50,000;

(5) where the total income exceeds

Ra. 1,00,000

Re. 8, 850 plus 22 per c"nt. of the

amount by which the total Income

exceeds Rs.1,00,000(

46 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

Surcharge on income-tax

The amount of Income-tax computed In accordance with the preceding provisions of this Sub- Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twelve and a half per cent, of such income-tax.

Explanation — F or the purposes of this Paragraph, 'registered firm" Includes an unregistered firm assessed as a registered firm under clause (b) of section 183 of the Income-tax Act.

Paragraph D

In the case of every local authority ,—

Rate of income-tax

On the whole of the total income 50 per cent.

The amount of Income-tax computed In accordance with the preceding provisions of this Paragraph shall be increafled by a surcharge for purposes of the Union calculated at the rate of twelve and a half per cent, of such Income-tax*

Paragraph E

In the case of a company, —

Rates of income-tax

I. In the case of a domestic company —

55 per cent, of the total Income;

(I) where the company is a company In which the

public are substantially interested

(2) where the company Is not a company In which

the public are substantially Interested —

60, per cent, of the total Income;

(t) In the case of an Industrial company

65 per cent, of the total Income, (ii) In any other case

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 Government of an Indian

concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 19Y6, or

(b) fees for rendering technical services received

from Government or an Indian concern In pursuance of an agreement made by It with the Government or the Indian concern after the 29th day of February, 1964 but before the lut day of April, 1976,

and where auch agreement haa, in either c§"e, been 50 per cent, i approved by the Central Government

(ti) on th" balanw, if any, of tha total income 70 par o*nt.

SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 47

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 calculated at the rate of five per cent, oi such income-tax.

Explanation. —For the purposes of this Paragraph, "industrial company" means a com- pany which is mainly engaged in the business of generation or distribution of electricity or any other form of power or carriage, by road or inland waterways, of passengers or goods or in the construction of ships or in the execution of projects or in the manufacture or processing of goods or in mining.

Note.—For the purposes of this Explanation, —

(i) a company shall be deemed to be mainly engaged in the businese of generation or distribution of electricity or any other form of power or carriage, by road or inland waterways, of passengers or goods or in the construction of ships or in the execution of projects or in the manufacture or processing of goods or in mining, it the income attri- butable to any one or more of the aforesaid activities included in Its total income of the previous year (as computed before making any deduction under Chapter VIA of th"; Income- tax Act) is not less than fifty-one per cent, of such total Income;

(it) 'fcrojecf means a project for the construction of a building, road, ~im" bridge or other structure or assembly or installation of any machinery or plant.

PARTIV

/See section 2(7)(e) J

RULES FOR COMPUTATION OF NET AOUCULTUBAL INCOME

Rule l.—Agricultural income of the nature referred to in sub-clause (a) of clause (1) of 83Cttonf2)of the Income-tax Act shall be computed as If it were income chargeable to income-tex under that Act under the head 'Incoir .rom other sources" and the provisions of sections 57 to 59 of that Act shall, so far as may bek apply accordingly;

Provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to section 40A therein shall be construed as not including a reference to sub- sections (3) and (4) of section 40A.

¹ Rule 2. —Agricultural income of the hature referred to in sub-clause (b) or sub-clause (c) of clause (!) of section 2 of the Income-tax Act /other than income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultiva- tor or the receiver of rent-in- kind referred to In the said sub-clause (c) j shall be com- puted as if it were income chargeable to income-tax under that Act under the head ' Profits and gains of business or profession" and the provisions of sections 30, 31, 32, 34. 36, 37 38, 40, 40A /other than sub-sections (3) and (4) thereof/, 4 1, 43 and 43A of the Income- tax Act shall, ao far aa may be, apply accordingly.

Rule 3 — Agricultural income of the nature referred to in sub-clause (c> of clause (!) 0/ section 2 of the Income-tax Act, being income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to bi the *aid sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from house property" and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly^

Provided that sub-section (2) of the said section 23 shall apply subject to the modifies- tkms that the references to "total income" therein shall be construed as references to net agricultural income and that the worda, figures and letter "and before making *ny deduc- tion under Chapter VIA" shall be omitted.

^ THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

Hulf 4. - Notwithstanding anything contained in any other provisions of theae rules, tn a case where the assesses derives income from sale of tea grown and manufactured by him in lncHa, such Income shall be computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent, of such income shall he regarded as the agricultural Income of the assess**.

Rule 5 _~ Where the asaessee is a partner of a registered firm or an unregistered firm assessed as a registered firm under clause (b) of section 183 of the Income-tax Act,which in the previous year has any agricultural Income, or is a partner of an unregistered firm which has not been assessed as a registered firm under clause (i>> of the said section 183 and which In the previous year has either no Income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an unregistered firm but has any agricultural Income, then, the agricultural Income or loss of the firm shall be computed in accordance with these rules and his share in the agri- cultural income or loss of the firm shall be computed In the manner laid down in sub-sec- tion f;), sub-section (2), and sub-section (3) of section 67 of the Income-tax Act and the share so computed shall be regarded as the agricultural Income or loss of the assesses.

Rule6.- Where the aasessee Is a member of an association of persons or a body of

Individuals (other than a Hindu undivided family, a company or a firm) which In the previous year has either no Income chargeable to tax under the Income-tax Act or has total Income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of Individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural Income, then, the agricultural Income or loss of the association or body shall be computed In accordance with these rules and the share of the asaessee In the agricultural Income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 7 — Where the result of the computation for the previous year in respect of anv

source of agricultural Income is a loss, such loss 3hall be set off against the income of the assessee, If any, for that previous year from any other source of agricultural Income:

Provided that where the assessee Is a partner of an unregistered firm which has not been assessed as a registered firm under clause

Rule 8.—Any sum payable by the assessee on account of any tax levied by the State

Government on the agricultural income 3hall be deducted In computing the agricultural income.

Uulc 9 -(}) Where the asseasee has, in the previous year relevant to the assessment year commencing on the 1st* day of April, 1983, any agricultural Income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the lat day of April, 1975 or the 1st day of April, 1976 or the 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979 or the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st dav of April, 1982, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act, —

(t) the loas so computed for the previous year relevant to the assessment year commenc- ing on the 1st day of April, 1975, to the extent, If any, such loss has not been set off against the agricultural Income for the previous year relevant to the assessment year commenc- ing on the lat day of April, 1976 or the 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979 or the lot day of April, 1980 or the 1st day of April, 1981 or the 1st day of April, 1982,

(ii) the loss "o computed for the previous year relevant to the assessment year com* manctag on the lot day of April, 1876, to the extant, if any, such loss has not been set

SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 49

off against the agricultural Income for the previous year relevant to the assessment year commencing on the l9t day of April, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979 or the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of April, 19R2;

(lit) the loss so computed for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1977, to the extent, If any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1978 or the 1st day of April, 1979 or the 1st day of April, 1080 or the 1st day of April, 1981 or the 1st day of April, 1982,

(h\> the loss so computed for the previous year relevant to the assessment year com- mencing on the 1st day of April, 197 8,to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year coir mencing on the 1st day of April, 1979 or the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of April, 1982,

(v) the loss so computed for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1979,to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of April, 1982,

fvi) the loss so computed for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1980,to the extent, tf any. such loss has not been set off against the agricultural income for the previous year relevant to, the assessment year commencing on the 1st day of April, 1981 or the 1st dny of April, 1982,

i'i''O the loss so computed for the previous year relevant to the assessment year com- mencing on the 1st day of April, 19R1, to the extent, if any. such loss has not been set oft against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1982, and

(vui) the loss so computed for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1982,

shall be set off against the agricultural income of the assessee for the previous year rele- vant to the assessment year commencing on the 1st day of April, 1983.

(2) Where the assessee has, in the previous year relevant to the assessment year com- mencing on the 1st day of April, 1984 or, if by virtue of any provision of the Income-tax Act, income-tax Is to be charged in respect of the income of a period other than that pre- vious year, in such other period, any agricultural income and the net result of the compu- lation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1976 or the 1st day 3f April, 1977 or the 1st day of April, 197 8 or the 1st day of April, 1979 or the 1st day of \prll, 1980 or the 1st day of April, 1981 or the 1st day of April, 1982 or the 1st day of \pril, 1983, is a loss, then, for the purposes of sub-section (6) of section 2 of this Act,

d) the loss so computed for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1976, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979 or the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of April 1982 or the 1st day of April, 1983,

(it) the loss so computed for the previous year relevant to the assessment year com- mencing on the 1st day of April, 1977, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1978 or the 1st day of April, 1979 or the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of April, 1982 or the 1st day of April, 1983,

r0 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT H—

(in) the loss BO oomputed for the previous year relevant to the assessment year com-

mencing on th& 1st day of April, 1978, to the extant, If .any, Buoh loss ha* not been set

off agaioat the agricultural income for the previous year relevant to the assessment year

commencing on the 1st clay of April, 1979 or the lat day of April, 1980 or the 1st day of

April, 1981 or the lut ciay of April, 1982 or the let day of April, 1983,

(tv) the IOBB BO computed for the previous year relevant to the assessment year com-

mencing on the l"t day of April, 1979, to the extent, if any, such loss has not been sot

off against the agricultural income for the previous year relevant to the assessment year

commencing on the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of

April, 1982 or the let day of April, 1983,

,r) the loss so computed for the previous year relevant to the assessment year com-

mencing on the 1st day of April, I960, to the extent, if any, nuch IOBB has not been net

off against the agricultural income for the previous year relevant to the assessment year

commencing on the 1st day of April, 1981 or the 1st day of April, 1982 or the 1st day of

April, 1983,

fvi) the loss so computed for the previous year relevant to the assessment year com-

jnt aclng on the 1st day of April, 1981, to the extent, If any, such loss has not been set

off against the agricultural income for the previous year relevant to the assessment year

commencing on the 1st day of April, 1982 or the 1st day of Aprl^l983,

iMI) the loas so computed for the previous year relevant to the assessment year com-

mencing on the let day of April, 1982, to the extent, If any, such loss has not been set

off against the agricultural income for the previous year relevant to the assessment year

commencing on the 1st day of April, 1983,

(pin) the loss so computed for the previous year relevant to the assessment year com-

mencing on the 1st day of April, 1983,

shall be set off against the agricultural Income of the aasesBee for the previous year rele-

vant to the assessment year commencing on the 1st day of April, 198^ or the period

aforesaid.

(3) Where a change has occurred in the constitution of a firm, nothing in sub-rule (1)

or aub-rule (2) shall entitle the firm to set off BO much of the IOBB proportionate to the

share of a retired or deceased partner computed in the manner laid down In sub-section

(l)j sub-flection (2) and subjection (3) of section 67 of the Income-tax Act as exceeds his

share ot profits. If any, of the previous year in the firm, or entitle an_ partner to the

benefit of any portion of the said IOBB (computed in the manner aforesaid) which Is not

apportlooable to him.

('"/) Where any person deriving any agricultural Income from any source has been suc-

ceeded In such capacity by another person, otherwise than by Inheritance, nothing in sub-

rule (1) or sub-rule (2) shall entitle any person, other than the per Bon incurring the loss,

to have it set off under sub-rule (i) or, as the case may be, sub-rule (2).

25 of 197S.

66 of 1976-

29 of 1977-

19 of 1978,

21 of 19)79.

44 of I9"o.

16 of 19&1.

14 of 19(2,

(5) Notwithstanding anything contained in this rule, no loss which haa not been determined

by the Income-tax Officer under the provisions of these rules or the rules contained in Part

IV of the First Schedule to the Finance Act, 1975, or of the First Schedule to the Finance Act,

1976, or of the First Schedule to the Finance (No.2) Act, 1977, or of the Schedule to the

Finance Act, 1978, or of the First Schedule to the Finance Act, 1979, or of the First

Schedule to the Finance (No.2) Act, 1980, or of the First Schedule to the Finance Act, 1981, 45

or of the First Schedule to the Finance Act, 1982, shall be set off under sub-rule(l) or,

as the case may be, sub-rulef.2),

Rule 10. — Where ths net result of the computation made in accordance wtth these rule*

U • l o s s, UM l o ss so c o m p u t ed s h a ll be I g n o r ed a nd t h" n et a g r i c u l t u r al I n c o me • h a ll be

dftsmed to b* nil.

SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 51

Rule 11. — The provisions of the Income-tax Act relating to procedure for assessment

(including the provisions of section 288A relating to rounding off of income) shall, with

the necessary modifications, apply in relation to the computation of the net agricultural

income of the aasessee as they apply In relation to the assessment of the total Income.

Rule 12. — For the purposes of computing the net agricultural income of the aseeasee,

the Income-tax Officer shall have the same powerB as he has under the Income-tax Act

for the purposes of assessment of the total Income.

o THTC fJAZETTR nP INDTA EX'TRAORDTNAKV TPADT TT_

THE SECOND SCHEDULE

( Sec section 44 )

PARTI

In the First Schedule to the Customs Tariff Act, —

(,) in Heading No. 08. 0 1 / 1 3 ,-

(1) In sub-heading No.(l), for the entries tn columns (3) and (4), the entries

"200%" and "190%" shall, respectively, be aubstltutedi

(2) In sub-heading No.(3), for the entries In columns (3) and (4), the entries

"200%" and "190%" shall, respectively, be substituted;

(j) in sub-heading No. (4), for the entries In columns (3) and (4), the entries

"200%" and "190%" shall, respectively, be substituted;

(4) in sub-heading No.(5), for the entries In columns (3) and (4), the entries

"200%" and "190%" shall, respectively, be substituted!

(it) In Heading No. 25. 01/32,—

U) tn sub-heading No.(l), for the entry in column (3), the entry "lOt^¹¹ shall be

substituted;

(2) in sub-heading No.(2), for the entry in column (3), the entry "60%" shall be

substituted;

(j) in sub-heading No.(3), for the entries in columns (3) and (4), the entries

"100%" and "90%" shall, respectively, be substituted;

(4) in sub-heading No.(4), for the entry in column (3), the entry "100%" shall be

substituted;

(5) in sub-heading No.(5), for the entries in columns (3) and (4), the entries

"60%" and "50%" shall, respectively, be substituted;

(0) in sub-heading No.(6), for the entry in column (3), the entry "100%" shall be

substituted;

(7) in sub-heading No. (7), for the entries in columns (3) and (4), the entries 4

"100%" and "90%" shall, respectively, be substituted;

(8) in sub-heading No. (9), for the entry in column (3), the entry "100%" shall be

substituted;

(9) In aub-headlng No.(10), for the entry In column (3), the entry "100%" shall

be substituted;

(Hi)' in Heading No. 28.01/58,—

(1) In aub-heading No.(l), for the entry In column (3), the entry "100%" shall be

subatituted;

(2) In iub-headlng No.(2), for the entry in column (3), the entry "100%" shall be

substituted i

(3) in sub-heading No. (3), for the entry In column (3), the entry "100%" shall be

•ubstitutedj

SEC. 2] THE GAZETTE O.' INDIA EXTRAORDINARY 5'J

(4) In sub-heading No.(4), for the entry in column (3), the entry "60%" shall be substituted;

(5) In sub-heading No.(6), for the entry in column (3), the entry "100%" ahall be substituted;

(b) in sub-heading No. (6), for the entry in column (3), the entry "100%" ahall be substituted;

(7J-in sub-heading No.(7), for the entry In column (3), the entry "100%" shall be substituted;

(a) in sub-heading No.(8), for the entry in column (3), the entry "100%" shall be substituted;

(9) in sub-heading No. (9), for the entry in column (3), the entry "60%" shall be substituted;

(10) in aub-heading No. (10), for the entry In column (3), the entry "100%" shall be substituted;

(11) in aub-heading No. (11), for the entry in column (3), the entry "100%" ehall be substituted;

(12) in sub-heading No. (12), for the entry in column (3), the entry '100%" shall be substituted;

(13) tn sub-heading No. (13), for the entry in column (3), the entry "100%" shall be substituted]

(iv) in Heading No. 29. 01/45, —

(1) in sub-heading No. (1), for the entry in column (3), the entry '100%" shall be substituted;

(2) In sub-heading No. (2), for the entries in columns (3) and (4), the entries "100%" and "94%" ahall, respectively, be substituted;

(3) in sub-heading No. (3), for the entry in column (3), the entry "100%" shall be substituted;

(4) in sub-heading No. (4), for the entry in column (3), the entry '"0%" shall be substituted;

(5) in sub-heading No. (5), for the entry in column (3), the entry "100%" shall be substituted;

(6) in aub-heading No. (6), for the entry in column (3), the entry "150%" shall be substituted!

(7) In sub-heading No. (7), for the entry in column (3), the entry "100%" shall be substituted;

(8) In sub-heading No. (8), for the entry In column (3), tlte entry "100%" shall be substituted;

(9) In sub-heading No. (9), for the entry In column (3), the entry '100%" shall be substituted;

(10) in sub-heading No. (10), for the entry In column (3), the entry "100%" shall

54 W$ OAZffn Of INDIA MXTMOKOaAWT PAW B-

( I I ) I RW M n i f c i * . < U ), torfta00*7 toootaatt<•), *o o*ry 100ft<*oball

ri^taMfe-boadtofMo.(II). tor*otattytoOOIMM (•)• •• "*nr**100%"ihiU

(W to wb baadtof Wo. (11), tor

100%" aad ""0%" ahaU, roapoetfroly, bo oabofflrtodt

f/4> b Mb-bMdtef Mb. (14), toe At Mtty to M I MM ( ", *t intoy 100%M fh"u

iMMlMtttoto^

f/5> to "b-hMdbf No.

1"0%N MM **4%" ife"n, rMVMttvriy, b* wbatlimdi

" ! • • *" "J "M%" A * n, rMpMti""ir, t" — m i m r ti

(17) to arti h i Um Mo. (17). tor "bt MtrlM to n n N— (•) and (4), 0M "otrtM

100%N "d """%" rittU. N^"0tb"ly, bt avballtotodi

yiy to Wh bmfcf Mo. q th tor

"y to "oti toiN No. (tt>, torth""rt^toeol"M(t), *• onbr I I *" iktll

i^toA m M f t^ a^L^M Vaaa^a^toiiMMMaW tto% ^ t j l i ^ f f ^ ^ H h^

119 to Itotdtof No* to.#t* tor ttv vMrloo to OSOBBMO (t) a"d(4). tto wtrtoo "140%"

•d *Vo%" akallt foapoettfo^r. bo atibttttotodf

C/> to art boadtog Mb. <1). tor too oajtrtoo to aotomm (" a>d(4). tto " B t r ti

1 0 0 lMa "d ^VOfabAll. novooUvtlr, bo oNbolttotodi

Ojtoooh boadtoiNo.

" • 4 . M p or Ulroor 100% wUobMW to btokor Ate l o .S par Utro" a a d " a .M par

UM"orlOO%"blobovOTtoblgborAte l o . " p ar lttroM obaU. roopoottvolr. bo

(*W to thodlog-Ho. to. 04/00. lortoooatrr to OOIHOM ( t ). tho onto? 100%** aludl

<*r) toHoadtaf N o . t t . 0 1 / 0 t .*

WtoaMb-haadtog No.(1). lor*oaatrjr toootoMi(t), Olaaatry 100%"ab"llbo

W to o^h M i a ^g Mo.

Mi^MBLM — -" IMMBlM a^aM - • ^"- • "- "-- - , ^ 1 ^^

T P JO M ^ PV • M B. rOOPOOwTOjy. BO BBBOPJPJIOHI

W to ty>-miin Mo. SEC. 21 THE GAZETTE OF INDIA EXTRAORDINARY 55

(x) In Heading No. 32.04/12,—

(1) In sub-heading No. (3), for the entry In column (3), the entry "150%" shall be substituted)

(2) in sub-heading No. (4), for the entry in column (3), the entry "150%" shall be substituted!

(3) In sub-heading No. (5), for the entry in column (3), the entry "150%" shall be substituted;

(4) in sub-heading No. (6), for the entry in column (3), the entry "150%" ahall be substituted;

(5) In sub-heading No. (7), for the entries in columns (3) and (4), the entries "1BO%" and "140%" shall, respectively, be substituted;

(xi) in Heading No. 32.13, for the entry In column (3), the entry "100%" ahall be substituted)

(xii) In Heading No. 33.01/06 ,—

(1) in sub-heading No. (1), for the entry in column (3), the entry '15O%" shall be substituted)

(2) In sub-heading No. (2), for the entries In columns (3) and (4), the entries "150%" and '14O%" shall, respectively, be substituted;

(xm) in Heading No. 34.01/07,—

(1) in sub-heading No, (1), for the entry In column (3), the entry "150%" shall be substituted)

(2) in sub-heading No. (2), for the entry in column (3), the entry "100%" shall be substituted;

(3) in sub-heading No. (3), for the entries In columns (3) and (4), the entries "100%" and "90%" shall, respectively, be substituted:

(xiv) in Heading No. 35.01/07,—

(1) in sub-heading No. (1), for the entry in column (3), the entry "iou%" nhall be substituted)

(2) in sub-heading No. (2), for the > tf"n pntrv "lOflflf." shall be substituted;

(xv) In Heading No. 36. 01/08, for the entry In column (3), the entry "100%" shall be substituted;

(xm) In Heading No. 3 9 . 0 1 / l a,

(1) In sub-heading No. (1), for the entry in column (3), the entry "100%" shall b" substituted;

(2) In sub-heading No. (2), for the entries in columns (3) and (4), the entrlM '100%" and "90%" shall, respectively, be substituted;

(3) In sub-heading No. (3), for the entry In column (3), the wtry '100%" shall ba substituted!

5^ THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

(4) ID sub-beading No. (4), for the entries in columns (3) and (4), the entries

"10G%" and "90%" shall, respectively, bo substituted;

(5) in gub~heading No. (5), for the entries in columns (3) and (4), the entries

"100%" and "90%" ohall, respectively, be substituted;

(6) in eub-heading No. (6), for the entries In columns (3) and (4), the entries

"100%" and "90%" shall, respectively, be substituted*

(?) in sub-heading No. (7), for the entries In columns (3) and (4), the entries

'100%" and "90%" shall, respectively, be substituted!

(8) in sub-heading No. (8), for the entry In column (3), the entry "60%" shall

be substituted}

(S" In sub-heading No. (9), for the entries In oolumns (3) and (4), the entries

"100%" and "90%" shall, respectively, be substituted;

(xvii) \n Heading No. 39.01/06, for the entry in ootann (3), the entry "200%* shall

be substituted!

(xviii) in Heading No. 40.01/04, for the entry in column (3), the entry "60%" shall

be substituted;

(xix) In Heading No. 56,01/04, for the entry In oolumn (3), the entry "150% plus

Rs. 30 per kilogram" shall be substituted!

(xx) In Heading No. 73.01, for the entry in oolumn (3), the entry '"0%" shall be

substituted;

(xxt) in Heading No. 73.02, for the entry In column (3), the entry '"0%" shall be

substituted;

(xxn) in Heading No. 73.03/05, for the entry In oolumn (3), the entry '100%** shall

be substituted;

(xxiii) In Heading No. 73.06/07,—

(1) In sub-heading No. (1), for the entry In column (3), the entry '"0%" shall

be substituted;

(2) in sub-heading No. (2), for the entry in oolumn (3), the antry '100%" shall

be substituted;

(xxn) in Heading No. 73.08, for the entry in oolumn (3), the entry "60%" shall be

substituted;

f.txvMn Heading No. 73.09, for the entry in oolumn (3), the entry '*0%" shall

be substituted;

(xxvi) In Heading No. 73.10, for the entry in column (3), the entry "80%" shall

bo substituted;

(xxvii) in Heading No. 73,11, for the entry in column (3), the entry "60%" shall

be substituted;

(xxviii) in Heading No. 73.12, for the entry In oolumn (3), the entry "WO^" shall

be substitutedt

Sac. 2] THE GAZETTE OP INDIA EXTRAORDINARY 57

(xxix) In Heading No. 73.13,—

(1) in sub-heading No. (1), for the entry In column (3), the entry '100%I[ shall

be substituted;

(2) In sub-heading No. (2), for the entry In column (3), the entry "100%" shall

be substituted!

(xxx) In Heading No. 73.14, for the entry In column (3), the "ntry '"0%" shall be

substituted!

(xxxi) In sub-heading No. (1) of Heading No. 73.16, for the entry In oolumn (3), the

entry "60%" shall be substituted;

(xxxii) In Heading No. 73.17/19,—

(1) in sub-heading No. (1)0), for the entry in oolumn (3), the entry '100%" shall

be substituted;

(2) In sub-heading No. (l)(ii), for the entry in column (3), th" entry '"0%" shall

be substituted;

(3) In sub-heading No. (l)(lil), for the entry in oolumn (3), the entry T"0%" shall

be substituted;

(4) In sub-heading No.(l) (iv), for the entry in oolumn (3), the entry 1"0%" shall

be substituted;

(xxxiii) In sub-heading No. (1) of Heading No. 73.20, for the entry in column (3),

the entry '100%" shall be substituted;

(xxxiv) In sub-heading No, (1) of Heading No, 73.21, for the entry In oolumn (3),

the entry "60%" shall be substituted;

(xxxv) in sub-heading No. (1) of Heading No. 73.22/23, for th* entry in column (3),

the entry '100%" shall be substituted;

(xxxvj) in Heading No. 73. 24, for the entry in column ("), tbm entry "60%" shall

be substituted;

(xxxvti) In siib-headtng No. (1) of Heading No. 73.26, for the "ntry in oolumn (3),

the entry "100%" shall be substituted;

(xxxviii) In sub-heading No. (1) of Heading No. 73.26, for the entry In column (3),

the entry '100%" shall be substituted;

(xxxix) in sub-heading No. (1) of Heading No. 73.27/28, for the entry in column (3),

the entry "100%" shall be substituted;

(xl) In Heading No. 73.2fl, —

(1) In sub-heading No. (1)(1), for the entry in oolumn (3), the entry "100%" shall

be substituted;

(2) In sub-heading No. (l)(ii), for the entry in oolumn (3), the entry "60%" shall

be substituted;

5⁸ THE GAZETTE OF INDIA EXTRAORDINARY [PART IT—

(xlui) In Heading No. 73.32, for the entry In column (3), fte entry '100%" shall be

substituted;

(xliv) In sub-beading No. (1) of Heading No. 73.33/40, for the entry In column (3),

the entry '150%" shall be substituted;

(xlv) in Heading No. 76.01,—

(1) in sub-heading No. (1), for the entry in column (3), the entry ''60%" shall be

substituted;

(2) in sub-heading No. (2), for the entry in column (3). the entry M60%" shall

be substituted;'

(xlvi) to Heading No. 76. 02, for the entry in column (3), the entry "100%" shall

be substituted;

(xlvii) in aub-heading No. (1) of Heading No. 7i. 03/04, for the entry In column (3),

the entry "100%" shall be substituted;

(xlvih)l In Heading No. 76.05, for the entry in column (3), the entry '100%" shall

be substituted;

(xlix) In Heading No. 76.06/07, for the entry in column (3), the entry '100%" shall

be substituted;

(I) in Heading No. 76,08/16, for the entry in column (3), the entry "100%" shall

be substituted;

(H) In Heading No, 78.01, -

(1) in sub-heading No. (1), for the entry In column (3), the entry '100%" shall

be substituted;

(2) in sub-heading No. (2), for the entry in column (3), the entry '100%" shall

be substituted!

(Hi) tn Heading No. 78. 02/06, for the entry in column (3), the entry '100%" shall

be substituted;

(liii) in Heading No. 79.01,—

(j) in aub-heading No. (1), for the entry in column (3), the entry "100%" shall

be substituted;

(2) in sub-heading No. (2), for the entry in column (3), the entry '100%" shall

be substituted;

(liv) in Heading No, 79.02, for the entry in column (3), the entry "100%" shall

be substituted;

(lv) in Heading No. 79.03, for the entry in column (3), the entry "100%" shall

be substituted;

(Ivi) tn Heading No. 79. 04/06, for the entry tn column (3), the entry "100%" shall

be substituted;

dm) in sub-heading No. (2) of Heading No. 84.11, for the entry in column (3), the

entry "100%" shall be substituted;

(Iviii)i in Heading No. 84.12, for the entry In column (3), the entry '100%" shall

be substituted;

8M, I] TBS OMSITI Off VKDtA •XTRAOKDOIAKT 59

(km) f m" * - • * * " " ". Ul * • " # " ". H . I t, for"• * t iy toOOIOB<">. t b"

Mlfy 1WSM MdttoMMMBIMII

(h) t> Xi Mifc"Ma. (^ 1 l u lu Mm. It.1t/M,torA* "atry In eohaw (3)f

PAST!

Duration

1b.

Mgrarapto-

W m (SI

h ^" Wwt t l l i U di l" Vnmtimt TwUT Aat.ton n i fc Ha, 29.01/45. after

•

T HE G A Z E T TE OF I N D TA F . X T R A O R n T N T A RV T P A BT T T_

THE THIRD SCHEDULE

/ ire section 54 (a) /

PART J

In the First Schedule to the Central Excises Act,—

, In item Mo. 4, under "11. Manufactured tobacco - ', for the entry in the third

'•o"umn against auo-Itom (2), the entry "Four hundred and forty rupees per thousand ox

three hundred per cent, ad valorem plus twenty rupees per thousand, whichever t*

\igher. " shall be substituted;

(n) in Item No. 18, for the entries in the third column against sub-Items I (ii)t

H

per kilogram. " and 'X>ne hundred and five rupees per kilogram. " shall, respectively,

be substituted;

(ttt) in Item No. 68, for the entry in the third column, the entry "Ten per cent

ad valorem ' shall be substituted.

PART H

Item No.

.. Description of scooda

Rate of duty

( 37

!l>

ID the First Schedule to the Central Excises Act,—

(t) for Item No. ID, the following Item shall be sub

etltuted, namely:—

"ID. AERATED WATERS, WHETHER OR

NOT FLAVOURED OR SWEETENED AND

WHETHER OR NOT CONTAINING VEGETABLE

OR FRUIT JUICE OR FRUIT P U L P-

(I) Aerated waters which are only charged

with carbon dioxide gas under pressure and

which contain no other added ingredient—

Twenty paise.

(a) for each inlt container containing

200 rnillilitreB or less

(b) for each unit container containing

more than 200 millilitres

Twenty palse plus ten paise for

every 100 millllitreii or'fraotion

thereof In excess of 200 millilitres.

Forty per cent, ad valorem.

(c) others

(2) Aerated waters other than those

falling under sub-Item (1) —

Sixty paise.

(a) for each unit container containing

200 millilitres or lese

(b) (or each unit container containing

more than 200 millilitres

Sixty paise plus thirty palse for

every 100 millilitres or fraction

thereof In excess of 200 millilitres.

Sixty per cent, ad valorem

(c) others

SEC. 21 THE GAZETTE OF INDIA EXTRAORDINARY 61

1

Iten

Rate of duty

Deaorlptlon of goods

No, U)

m

(it) in Item No. 16, for sub-Item I, the

following sub-Item shall be substituted, namely;-

•1. (l) Tyres for motor vehicles; and

tyres for vehicles or equipments, designed

for use off the road —

(a) tyres for two-wheeled motor

Twenty-five per cent, ad valorem.

vehicles, namely, scooters, motor-

cycles, mopeds and auto-cycles

(b) others.

Sixty per oent. ad valorem.

(2) Tyres for tractors, Including

agricultural tractors.

Twenty-five per oent.

ad valorem.

(3) Tyres for trailers —

fa) of sizes, namely, 7.50-16 and

9.00-16.

Twenty-five per cent.

ad valorem.

(b) others,

Sixty per cent, ad valorem^;

(iri) In Item No, 1 7 ,-

(a) for sub- Items (1) and (2), the following

sub-Item shall be substituted, namely:—

"(1) Paper and paper boardj (Including

Ten per oent, ad valorem plus

two thousand and five hwdred

rupees per metric tonne. ";

paper or paper boards which have been

subjected to various treatments such as

ooaUtxg, impregnating, oorrugation,

creping and design printing), not else-

where specified.

(Wsub-Items(3) and (4) shall be

renumbered as sub-Items (2) and (j)

respectively;

(iv) in Item No. 23, for sub-Item (1), the

following sub-Item shall be substituted, namely;—

"(1) Grey portland cement (Including

Two hundred and fifty rvpees

p"r metric tonne.";

ordinary portland cement, portland -

pozzolana cement and portland slag cement),

masonry cement, rapid hardening cement,

low heat cement and waterproof (hydrophoblc)

oement.

(v) in Mem No. 30, for sub-Hem D, the

following sub-Item shall be substituted, namely:-

"D. Parts of electric motors(lnoludlng die-

Twenty pw oent. ad valorem,*'

oast rotors).

62 THE GAZETTE OF INDIA EXTRAORDINARY [PART H^-

Rate of duty

Description of goods

i?)

Item

No.

I1)

(vi) In Item No. 34, under "I. Motor Vehiclea-",

for sob-Item (2), the following sub-Item shall be

substituted, namely:—

*\2) Motor vehicles of engine capacity not

exceeding 2500 cubic centimetres —

(i) Motor.vebicles with body —

(a) saloon cars

Five per cent, ad valorem plus

sixteen thousand rupees per oar.

(b) other*

Twenty-five per cent ad valorem.

(it) Other motor vehicles (Including

Ililrty per oent ad valorem.".

dhaMls Whether or not with oab).

SKC. 2] THE GAZETTE OF INDIA EXTRAORDINARY ,6j

THE FOURTH SCHEDULE

/ See section 64 (b)J

Bate of duty

Description of goods

<.3.>

Item No. tD

In the First Schedule to the Central Excise* Act,—

CO for Item No. 26, the following Item ehall

1 tie substituted, namely:—

'26 IHON AND STEEL, AND PRODUCTS THEREOF, THE FOLLOWING,NAMKLY—

Seventy rupees per metric

tonne.

(1) Pig iron, oast iron and splegeleisen in pigfl, blocks, lump* and aimilai¹ forms; and molten iron

Ten per cent, ad valorem.

(2) Ferro-alloys

(3) Waste and aorap

Seventy rupees per metric tonne.

(0 of iron

<7"J of steel

Three hundred and fifty rupees

per metric tonne.

(4) Shot and angular grit, whether or

not graded; and wire pellets

Seventy rupees per metric tonne.

d) of iron

(")ot steel

Seven hundred and fifty rupees per

metric tonne.

Ten per cent, ad valorem.

(5) Iron or steel powders; ep.^nge iron

or steel

(6) Puddled bars, pilings, Ingots, blocks,

lumps and similar forms of iron or steel

(i) puddled bars and pilings of iron

Seventy rupees per metric tonne.

(it) Ingots, blocks, lumps and

similar forms of steel

Three hundred and fifty rupees

per metric tonne.

(in) not elsewhere specified

Three hundred and fifty rupses per

metric tonne.

(7) Blooms, billets, slabs and sheet bars

(including tlnplate bars) and hoe bars

(i) of iron

Seventy rupees per metric tonne.

(it) of steel

Three hundred and fifty rupees

per metric tonne.

(8) Pieces roughly shaped by rolling or Three hundred and fifty rupees per metric tonne.

forging of Iron or steel, not elsewhere specified.

⁶4- , THE GAZETTE OF INDIA EXTRAORDINARY ^PAET H—

Description of goods (2>

item No. t il

(9) Bare (Including flats) and rods (including wire rods) of iron or steel, rolled, forged, extruded^ formed, finished, whether in straight lengths or la colls; hollow mining drill steel

(0 flats

(ii) others

(10) Railway track construction material, the following:

Rails, sleepers and sleeper bars

(11) Angles, shapes and sections of iroi or steel, not elsewhere specified, other than slotted angles and slotted channels, rolled, forged, extruded, formed, finished; sheet piling of Iron or steel whether or not drilled, punched or made from assembled elements,

(12) Hoops, strips and a kelp of iron or steel, whether galvanised or not

(i) hoops and strips (ii) skelp

(13) Coils for rerolUng, sheets, platen, and universal plates of iron or steel, hot or cold-rolled, whether galvanised or not; forms such as ridges, channels (other man slotted channels), rain-water pipes and their fittings made from sheets, plates, or universal plates; and tin plate and tinned,; lacquered or varnished sheets Including tin taggers and cuttings of such plates, sheets or taggers -

Rate of duty

( 3;

One thousand three hundred and fifty rupee* per metric tonne.

Three hundred and fifty rupees par metric tonne.

Three hundred and fifty rupees per metric tonne.

Three hundred and fifty rupees per metric tonne.

One thousand three hundred and fifty rupees per metric tonne.

(i) galvanised sheets, plates and forms

(ii) tin plate and tinned sheets Including

tin taggers and cuttings of such plates, sheets or taggers

(iii> lacquered sheets, varnished sheets Including cuttings of lacquered she"ta and varnished sheets.

dv) others

(14) Iron &i ateel wire, whether or not coated but not insulated

One thousand three hundred ana fifty rupees per metric tonne- One thousand seven hundred and fifty rupees per metric tonne.

One thousand two hundred and fifty rupees per metric tonne.

One thousand three hundred and fifty rupees per metric tonne.

Three hundred and fifty rupees per metric tonno.

SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY ,

Description of goods

Rate of duty

Item

No.

U)

t2)

<3>

(15) Tubes and pipes and blanks therefor,

of iron or steel, rolled, forged, spun, cast,

drawn, annealed, welded or extruded

One thousand rupees per metric

tonne, plus the excise duty for the

time being leviable on pig iron or

steel Ingots, as the case may be.

(16) Castings of iron or steel, not

otherwise specified.

(i) of iron

Seventy rupees per metric tonne.

(ii) of steel

Seven hundred and fifty rupees

per metric tonne.

Explanations*!!! this Item,—

C(/'lrod*includes pig iron, oast iron and splegelelsen;

(ii) "pig iron" and "oast iron" mean ferrous products containing, by weight, 1.9

per oent.i or more of carbon, and which may contain one or more of the following

elements within the weight limits specified:

less than 15 per cent, phosphorus,

not more than 8 per cent, ailicon,

not more than 6 per cent, manganese,

not more than 30 per cent, chromium,

not more than 40 per cent, tungsten, and

an aggregate of not more than 10 per cent, of other alloy elements (for example,

nickel, copper, aluminium, titanium, vanadium, molybdenum) but does not Include

ferrous alloys known aa "non-distorting tool steels" containing by weight, 1. 9 per

cent., or more of carbon and having the characteristics of steel (

(in) "splegelelsen" means ferrous products containing, by weight, more than 6

per cent, but not more than 30 per cent, of manganese and otherwise conforming to

the specifications mentioned in (U) above;

(iv) "ferro-alloys" means alloys of Iron (other than master alloys) which are not

usefully malleable and are commonly used as raw material In the manufacture of

-ferrous metals and which contain, by weight, separately or together:

more than 8 per cent, of silicon, or

more than 30 per cent, of manganese, or

more than 30 per oent. of chromium, or

more than 40 per cent, of tungsten, or

a total of more than 10 per cent, of other alloy elements (aluminium, titanium,

vanadium, copper, molybdenum, niobium or other elements, subject to a maximum

content of 10 per cent. In the case of copper), and which contain, by weight not leas

than 4 per cent. In the case of ferro-alloys containing silicon, not less than 8 per

cent, in the case of ferro-alloys containing manganese but no silicon or not less than

10 per cent. In other cases, of the element Iron;

(v) "puddled bars" and "pilings" mean products for rolling, forging or re-melting

obtained either :—

(t)by shingling balls of puddled iron to remove the slag arising during puddling, or

(ii) by roughly welding together by means of hot rolling, packets of scrap iron

or steel or puddled iron;

(vi) "ingots" means products for rolling or forging obtained by canting Into nioulds;

(vii) "blooms" and "billets" mean semi-finished products of rectangular section,

of a cross-aectional area exceeding 1,225 square millimetres and of such dimen-

sions that the thiokness exooedi one-quarter of the width;

66 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

(viii) "slabs" and "sheet bare (Including tinplate bars)"mean semi-flniohod

products of rectangular section, of a thickness not lees than 6 millimetres, of

wMX" not }eaa than 150 millimetres and of such dimfeaflions that the thiekneai doee

not exceed one-quarter of the widen;

(ix) "waste and scrap" means waste and scrap of Iron or steel fit only for

the recovery of metal or for use In the manufacture of chemicals, but does not

liwLo&a slag, ash and other residues;

(x) follow mining drill steel" :means steel hollow bars of any cross-section,

fruitable for mining drills, of which me greatest external dtaonsion exceeds 15

millimetres but does not exceed SO millimetres, and of which fhs greatest Internal

dimension does not exceed one-third of the greatest external dimension;

(xi) "angles, shapes and sections "means products which do not have cross-

rp.r'icng in the form of circles, segments of circles, ovixls, Isosceles triangles,

ii-pnglea, hexagons, octagons or quadrilaterals with oniy two sides parallel and

the other b"o sides equal, and which are not hollow;

(xii) "akelp" means hot-rolled narrow strip of width not exceeding 600 millimetres:

with rolled (square, slightly round or bevelled) edge;

(xiii) "hoops"means hot-rolled flat products in rectangular cross-section of

fMckness less than 3 millimetres and width less than 75 millimetres;

(xh) "strips "means hot or cofcWrolled products, rolled approximately in

rectangular cross-section of thickness usually 10 millimetre* and below with mill,

rolled, trimmed or sheared edges and supplied In coll or flattened ooil (straight

length) form but excludes hoop and skelp;

(xv) "coils for re-roiling" means colled semi-finished hot-rolled products, of a

rectangular section, not less than 1.5 millimetres thick, of a width exceeding 500

millimetres and of a weight not less than 500 kilograms per piece;

(xvi) "universal plates" means products of rectangular section, hot-rolled

lengthwise In a closed box or universal mill, of a thickness exceeding 5 millimetres

Jjut. not exceeding 100 millimetres, and of a width exceeding 150 millmetres but not

exceeding 1,200 millimetres;

(xvti) 'plate" means a hot or cold-rolled flat product, rolled from an ingot or

olab or sheet bar or produced by oold reduction of colls t in recfcutfular crose-

Hectton of thickness 5 millimetres and above but not exceeding 100 millimetres and

width 600 millimetres and above, and supplied in straight lengths;

(xviii) "sheet" means a hot or cold-rolled flat product, rolled in rectangular

section of thickness below 5 millimetres and supplied In straight lengths, the

width of which Is at least hundred times the thickness and the edges are either

mill, trimmed, sheared or flame cut;

(xtx) "wire" means oold drawn products of solid section of any cross-sectional

shape, of which no cross-sectional dimension exceeds 13 millimetres;

(xx) "bars (including flats) and rode (Including wire rods)" means products of

solid section which do not conform to the entirety of any of the definitions at (vn),

(wi),t (xii), (xiii). (xiv), (xv), (xvi), (xvii), (xviii) and (xtx) above, and which have

croes-sections In the shape of circles, segment* of circles .ovals, isosceles

triangles, rectangles, hexagons, octagons or quadrilaterals with only two sides

parallel and the other sides equalj

(xxi) 'flat*" means finished products, generally of rectangular cross-section,

having rolled edges only (square or slightly rounded), of controlled contour and of

thickness 3 millimetres and ovei; width 400 millimetres and below and supplied In

straight lengths and includes flat bars with bulb that has swelling on one or two

faces of the same edge and a width of lese than 400 millimetres.';

(n) Item Nos. 26, 26AA and 28 ahall be omitted.

SEC 2] 1'tIE GAZETTE OF INDIA EXTRAORDINARY 67

THE FIFTH SCHEDULE

(See section 56 )

In *be Flrat Schedulo to Ihe Additional Duties of Excite Act, -

• s) In Item No. $, under "n. Manufactured tobacco- , for the entry In the thit'i rc,taun against nub-Item (2), Ihe entry 't>ne hundred and sixty rupees per thou stuv* -' on" nwklr"d and ten per cent* ad valorem plus ten rupees per thousand, whichever .<" hlKher." shall be sulwtltuted;

(ii) In Item No. }fi, for each of (he entries In the third column against gub-Iten ^ n' aa-d IV, the entry 'The duty for the time being leviable on Ihe ba*e fabrics, if not already paid, plus ten per cent, ad valorem.. " shall be substituted;

(tn) In Item No. 22, for each of the entries In (he third column against sub-Items (S) and (4), me entry "The duty for the time being leviable on the base fabrics, If net alr"ftdy paid, plus ten per cent, ad valorem. " shall be substituted.

68 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT I N-

STATE ME NT OF OBJECTS AND REASONS

The object of the BUI is to give effect to the financial proposals of the Central Government for the financial year 1983-84. The notes on clauses explain the various provisions contained in the BUI.

Nrw DELHI;

PRANAB MUKHERJEE.

The 28tb February, 1983.

PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117

AND 274 OF THE CONSTITUTION OF INDtt

/Copy of letter No. F. 3

from Shrt Pranab Mukherjee, Minister of Finance, to the Secretary,

LokSabha^

The President, having been Informed of the •abject matter of the

proposed Bill, recommends under clause (1) of article 117, read with

clause (1) of article 274, of the Constitution of todla, the Introduction of

the Finance Bill, 1983,to the Lok Sabha.

2. The Bill will be introduced in the Lok Sabha immediately after the

presentation of the Budget on the 29th February, 1983.

Sec. 21 THE GAZETTE OF INDIA EXTRAORDINARY 69

Notes on clauses

Clause 2, read with the First Schedule to the Bill, seeks to prescribe the rates at which income-tax (including surcharge thereon) is to be levied on Income chargeable to tax for the assessmont year 1983-34. Fi'rtttpt\ U lays down the rates at which tax is to be deducted at source during the financial year 1983-^v n-i"; incomes subject to such deduction under the Income-tax Act; and the rates at which "advance tax"is to bo paid and tax ie to be calculated and charged in special casos for the financial year 1983-84.

Rates ot income-tax tor the assessment year 1983-84.— Part I of the First Schedule to the pill specifies the rates of income-tax (including (surcharge) on Income liable to tax for the assessment year 1983-84. These rates are the same as those specified in Part III of the First Schedule to the Finance Act, 1982 for the purposes of deduction of tax at source from "Salaries" and for computation of "advance tax" payable during the financial year 1982-63.

Rates for deduction of tax at source during the financial year 1983-84 from income other than "Salaries". — Part n of the First Schedule to the Bill specifies the rates at which Income-tax (includ- ing surcharge where applicable) is to be deducted at source during the financial year 1983--84 from incomes other than "Salaries" and retirement annuities under section 80E(9) of the Income-tax Act. The ra£es specified in this Part for deduction of tax at source are the same as thoBe specified in Part II of the First Schedule to the Finance Act, 1982 for the purposes of deduction of tax at source during the finanoial year 1982-83, with certain modifications..

In the case of incomes by way of winnings from lotteries and crossword puzzles, and winnings from horse races payable to resident recipients (other than a company) during the financial year 1983-84, tax will be deducted at the rate of 33.75 per cent,(made up of basic Income-tax of 30 per cent, and surcharge of 3.75 per cent.) as against 33 per eent.during 1982-83, In the case of incomes by way of Interest on certain securities (not being Interest on tax-free securities) and dividends payable to resident recipients (other than :i company) during the financial year 19S3-R4, tax will be deductible at the rate of 22,5 per cent, (made up of basic income-tax of 20 per cent." and surcharge of 2.5 per cent} as against 22 per cent.Airing 19fl2-S3.

In the case of 'investment income" and 'long-term capital gains'' derived by n "no'n-resident Indian" during the financial year 1983-84, tax will be deductible at the rate of 22.5 per cent-(made up of income- tax of 20 per cent and surcharge of 2,5 per cent.). In the case of interest on tax-free securities payable to a non-corporate non-reflident, the rate of deduction will be 1G.875 percent, (made up of Income-tax of 15 per cent, and surcharge of 1.875 per cent.) as against 16.5 per cent, during 1982-83, In the case of other incomes of non-corporate non-residents during the financial year 1983-84, tax will be deductible at the minimum rate of 33. 75 per cent, (made up of Income-tax of 30 per cent, and surcharge of 3.75 per cent,) as against 33 per cent. In 1982-83.

In the case of lnrome by way of Interest other than "Interest on securities" payable to a domestic company during the financial year 1983-84, tax will be deductible at the rate of 21 per cent, (made up of income-tax of 20 per cent, and surcharge of 1 per cent.). In the case of any other Income (excluding Interest payable on a t&x-tree security) payable to a domestic company during the financial year 1983-84, tax will be deductible at the rate of 22.575 per cent, (made up of Income-tax of 21.5 per cent, and sur- charge of 1.076 per cent.) as agalnat 22 per cont. In 1982-83.

kn the case of income by way of Interest payable to a foreign company by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern In foreign ourrency, tax will be deductible at the rate of 25 per cent. In the cane of income by way of royalty payable to a foreign company by Government or an Indian concern in.puTBuance of an agreement made by it with the Government or the Indian concern and approved by the Central Government before 1st April, 1976, tax will be deductible at the rato of 52. S par cent, (made up of Income-tax of 50 per coat, and surcharge of 2.5 per oentj as against 51.20 per o"nt. In 1982-83.

In the onBe of Income by way of (*an tor technical s"rvlc"a payable to a foreign oompany by Govern- ment or an Indian concern In pursuance of an agreement made by It with Government or tho Indian oonoern and approved by the Central Government before 1st April, 1976, tax will be deductible at the rato of 52.5 per cent, (made up of Income-tax of 50 per cent, and •uroharge of 2.B per cent) an against 51.26 per cont, In 1982-83.

7° THE GAZETTE OF INDIA EXTRAORDINARY [PART H—

Further, in the case of income by way of Interest payable on a tax-free security to a foreign

company during the financial year 1983-84, tax will be deductible at the rate of 46. 2 per cent, (made up of Income-tax of 44 per cent, and surcharge of 2, 2 per cent.) as against 45.1 per cent, in 1982-83. Inthe case of any other income payable to i foreign company during the financial year 19*3-84, tax will be deductible at the rate of 73.5 per cent, (made up of income-tax of 70 per cent, and surcharge of 3,5 per cent.) as against 71,75 per cent. \n 19P2-83.

Rates for deductipn of tax a.t source from "Salaries" and retirement annuities, computation of 'MvaBEfl. tax," and changing of toe owe-tax to special crises during the, financial year 1993-84:

Part W of the First Schedule to the Bill specifies the rates at which income-tax (including surcharge) Is to hn deducted at source from "Salaries" and retirement annuities referred to in section 80E(9) of the Income-tax Act and also the rates at which 'advance tax" is to be paid and income-tax is to be calcu- lated or charged in special cases for the financial year 1983-84-

These rates are the same as those specified in Part I of the First Schedule to the BUI for the assess- ment of incomes liable to tax for the assessment year 1983-84 except for the followlnt modificatione.—

(i) In the case of individuals, Hindu undivided families, unregistered firms, etc., the income-tax (excluding surcharge) on the Blab of income of Rs. 15, 001 — Rs.25, 000 at present is 30 per cent. The income in the slab of Rs.25, 001 — Rs.30, 000 is charged to tax at 34 per cent. The income slab of Rs.15, 001 — Rs.25, 000 is proposed to be split into two slabs of Rs.15, 001 - Rs.20, 000 and Rs,20, 001 - Rs.25, 000. The rate of tax applicable to income slab of Rs.15, 001 - Rsr20, 000 will h 25 per cent and the rate of tax applicable to income slab of Rse20, 001 - Rs 25, 000 will be 30 per cent. The rate of income-tax applicable to income slab of Rs.25, 001 - RP. 30, 000 will be 35 per oent

(il) In the caee of domestic companies in which the public are substantially interested, income- tax (excluding surcharge) payable by them will be calculated at 55 per cent, in all cases. In the case of domestic companies which are not companies in which the public are substantially Intereet- ed and aro industrial companies, income-tax payable will be calculated at 60 per centin all cases. For this purpose, companies engaged in the carriage of passengers or" goods by road cr inland waterways or in the execution of projects for,construction of buildings, roads, dams, bridges, t,tcrJ will also be regarded as industrial companies^

(til) The rate of surcharge on income-tax in the ease of all non-corporate assessees is proposed to bt) Increased from 10 per cent, to 12.5 per cent, of such income-tax.

(lv) The rate of surcharge on income-tax in the case of all categories of companies ie proposed to be Increased from 2.5 per cent, to 5 per cent, of such income-tax. Companies will, howevert have the option of making a deposit with the Industrial Development Bank of India (under a scheme to be notified by the Central Government) in lieu of payment of one-half of such surcharge.

Clause 3 seeks to amend section 2 cf the Income-tax Act.

Sub-clause (a) seeks to amend clause (15) of the said section relating to the definition of the term "charitable purpose". This amendment is consequential to the amendment made by Bub-clause fo) of clause 0 of the Bill whereunder profits and fraine of business would be chargeable to tax to the oaee of all charitable or religious trustfi and institution*,

This amendment will take effect from l it April, 1984 and will accordingly apply in relation to thtt tts"ea"m

Sub-clauia (b) nook* to amend clauce (16) of/action 2 of tha Inoomo-tax Act.

Und"r the propound "mi>ndmant, ti company whoge •haraii ara not liatad to a raoognlaad atoolc-

"xoh(mg" In India in aooordanea with tha Soouritiat Contract* (Regulation) Aot, 1B56 and any rulvi

Tinde th"raund"r wili not bo traatad us a oorapany In^hiob tha public or" •ubitantially lnt"rnit"d

union* tha nharot In the company (not being shorai entitled to ft flxtd rite of dlvldand whether with

or without a furthor right to participate In profits) currying not lam than fifty par ennt, of the voting

power have twin allotted ufteenditloaaUy to, or acquired unconditionally by, and wars throughout the

r#lsvt/U previous ytw bonsflelully held by -

<") the Oovwtimant, or

SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 7¹

(b) a corporation established by a Central, State or Provincial Act, or

(c) any oompany to which the clause applies or any subsidiary company of such company If the whole of the share capital of such subsidiary company has been held by the parent company or by Its nominees throughout the previous year,

Tha proposed modification will, however, not apply in relation to the following categories of companies:-

(I) a company owned by the Government or the' Reserve Bank of India or In which not leas than forty per cent, of the shares are held (whether singly or taken together) by the Government or the Reserve Bank of India or a corporation owned by that Bank;

(ii) a company which Is registered under section 25 of the Companies Act. 1956;

(ill) a company having no shara capital, which is declared by the Central Board of Direct Taxes to be a company in which the public are substantially Interested.

These companies will continue to be regarded as companies in which the public are substantially Interested*

These amendments will take effect from 2nd April, 1983.

Clause 4 seeks to amend section 9 of the Income-tax Act relating to income deemed to accrue or arise in India.

Under the proposed amendment in sub-clause (a), no Income will be deemed to accrue or arise in India to a non-resident engaged In the business of running a news agency or of publishing newspapers, magazines or Journals from activities confined to collection of news and views In India tor transmission out of India.

The proposed amendment will apply retrospectively from 1st April, 1962', that is to say, the date of commencement of the Inoome-tax Act, 1961.

Sub-elaune (b) seeks to amend clause (li) of sub-section (1) of section 0 of the Income-tax Act. The Explanation proposed to be added to this olauae seeks to clarify that Income chargeable under the head 'Salaries" payable for service rendered In India shall be regarded as Income earned In India.

The proposed amendment will take effect from 1st April, 1979.

Clause 5 seeks to amend section 10 of the Income-tax Act relating to incomes not included In the total Income.

Sub-clause (a) seeks to insert a new clause (6A) in this section. The new clausa provides that the amount of tax paid by Government or an Indian concern on behalf of a foreign company in respect of royalty or fees for technical servioes paid under agreements approved by the Central Government will not be included in computing the total income of the foreign company.

This amendment will take effect from 1st April, 19W4,

Sub-clause (b) seeka to*amend clause (10) of this section.

Under the existing provlalona.aay death-cum-retirement gratuity received under the Revised Fynalon Rules of the Central Government or the Central Civil Services (Pension) Rules, 1972 or under any other similar schemes applicable to Government employees or to the employees of a local authority is fully exempt from Income-tax. Any gratuity received under the Payment of Gratuity Act, 1972 is exempt from income-tax to the extent It does not exceed the amount calculated in accordance with the pro^ visions of sub-.sections (2) and (3) of section 4 of that Act, As regards other gratuities, the exemption from income-tax is restricted to the amount calculated at half month's salary for each year of completed service arrived at on the baslB of the average salary for the three years immediately preceding the year in which the gratuity Is paid subject to a maximum of Rs.30, 000 or 20 months' salary BO calculated, whichever is less. Where gratuity is received by an employee from two or more employers In the same year, the maximum amount of gratuity exempt from tax Is R B . 3 0, 000. In cases where an employee who has received any gratuity In any earlier year from his farmer employer

72 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT IT—

or employers receives gratuity from his present employer in a later year, the aforesaid limit of Rs.30, pOO is reduced by the amount of gratuity which has been exempt in any earlier year. The aforesaid limits of R s. 30, 000 on the amounts of gratuity that will be exempt from payment of income- tax have been provided to secure that the amount of gratuity that will be BO exempt does not excued the death-cum-retirement gratuity payable to the employees of the Central Government. The celling on the maximum amount of death-cum-retirement gratuity payable to the employees of the Central Govern- ment under the Central Civil Services (Pension) Rules, 1972 has been raised from Rs.30, 000 to Re. 36, 000 in relation to persons becoming eligible for payment of death-cum-retirement gratuity on or after 31st January, 1982.

Item (1) of this sub-clause, accordingly, seeks to raise the exemption limit for payment of Income-tax on the amount of gratuity from Re. 30,000 to Rs. 36,000.

Item (11) of this sub-clause seeks to empower the Central Government to Increase the limit of exemption of Rs. 36,000 to a higher amount by notification in the Official Gazette having regard to any increase In the maximum amount of gratuity exempt in the case of Government servants, and to provide that the exemption limit of Rs.30,000 will continue to apply in cases where the event on which gratuity Is received takes place before the 31st January, 1982.

These amendments will take effect retrospectively from 1st April, 1982 and will accordingly apply In relation to the assessment year 1982-83 and subsequent years.

Sub-clause (c) seeks to amend clause (15) of section 10 of the Income-tax Act.

Under the proposed amendment in Item (1), exemption from Income-tax In respect of interest on specified Capital Investment Bonds will be available only to Individuals and Hindu undivided families.

Item (11) of this sub-clause seeks to amend sub-clawe (iv) of this clause.

Under the existing provisions of item (a) of the said sub-clause (iv), interest payable by Govern- ment or a local authority on moneys borrowed from sources outside India is exempt from tax. Under the proposed amendment to this item, exemption from tax will be available in respect of Interest pay- able by Government, or a local authority on debts Incurred by it outside India.

Under the existing provisions of item (c) of the said sub-clause (Iv), interest payable by an industrial undertaking in India on moneys borrowed by it or debts incurred outside India In respect of purchase outside India of raw materials or capital plant and machinery is exempt from tax to the extent the Interest does not exceed the amount calculated at the rate approved by the Central Govern- ment for the purposes of this provision. Under the proposed amendment to this Hem, exemption from tax will be available in respect of moneys borrowed or debts Incurred in a foreign country for purchase of any components. Under another amendment to this Item, purchase of capital plant and maohlnery will include the purchase of such capital plant and machinery under a hire-purchase agreement or a lease agreement with an option to purchase such plant and macjiln^ry.

Under the existing provisions of item (d) of the aaid sub-clause (iv), interest payable by the Industrial Finance Corporation of India, the Industrial I^evelopment Bank of India and the Industrial Credit and Investment Corporation of India on money* b r o w ed by them from Bourcea outside India is exempt from tax to the extent to which the interest doe# ntftJlWfceed the amount calculated at the rate approved by the Central Government for the purposes of tfilsffrJWvision. Under the proposed amendment, exemption from tax will also be available in respect of infer^st payable by the Export-Import Bank of India.

A new item (g) Is proposed to be inseui-eil In the said sub-clause (iv)Tto provide for exemption from tax in respect of Interest payable by a public company formed and registered in India with the main object of carrying on thebusiness'of providing long-term finance for construction or purchase of houses In India for residential purposes, on any moneys borrowed by It In foreign currency from sources outside India under a loan agreement approved by the Central Government. This exemption will be available to the extent to which such interest does not exceed the amount of Interest calculated at the rate approved by the Central Government In this behalf, having regard to the terms of the loan and Its repayment. The exemption will apply If the eompany has been approved by the Central Government for the purposes of section 36(l)(viil) of the Income-tax Act.

SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 73

The above amendments will take effect from 1st April, 1983.

Sub-clause (d) seeks to amend clause (21).

Under the existing provisions, income of approved scientific research associations is exempt from Income-tax. Under the proposed amendment, exemption under this provision will not be avail- able If any sums by way of contributions received by the association are invested or deposited by it after 28th February, 1983 otherwise than in any one or more of the forms or modes specified In sub- section (5) proposed to be Inserted in section 11 of the Income-tax Act by clause 6 of the Bill. Exemption under this provision will also be denied In cases where any funds of the Institution invested or deposited before 1st March, 1983, otherwise than in any one or more of the forms or modes referred to above, continue to remain so invested or deposited after 30th November, 1983. Such association will also forfeit exemption from tax if it holds after 30th November, 1983 shares in any company other than a Government company or a statutory corporation.

Sub-clause (e) seeks to amend clause (23C).

Under the existing provisions, Income derived by charitable or religious trusts, institutions and funds, which are notified by the Central Government under this provision, is exempt from income-tax. The proposed amendment seeks to provide that this exemption shall not apply in relation to the profits and gains of any business carried on by such trust, institution, e t c ., or proflts.derlved by them from any business undertaking held under trust.

These amendments will take effect from 1st April, 1984.

Sub-clause (f) seeks to amend clause (26A).

Item (t) seeks to extend the exemption from income-tax In the case of residents of the district of Ladakh for a further period of three years, 1. e. for the assessment years 1983-84 to 1985-86.

This amendment shall take effect from 1st April, 1983.

Item (li) seeks to clarify that the district of Ladakh will include all the areas comprised In that district on 30th June, 1979, being the date immediately preceding the date on which the said dlstriot was bifurcated.

This amendment will take effect retrospectively from 1st April, 1980.

Clause 6 seeks to amend section 11 of the Income-tax Act.

Sub-clause (a) of this clause seeks to insert a new clause (b) In sub-section (2) which provides for the Investment or deposit of the moneys accumulated or set apart by charitable or religious trusts in the forms or modes specified in the new sub-section (5) proposed to be Inserted by sub- clause (c) of this clause.

This amendment will take effect from 1st April, 1983.

Sub-clause (b) substitutes a new sub-section (4) in this section. The new sub-section provides that the provisions relating to exemption of income, accumulation and application of income for charitable purposes, e t c ., will not apply in relation to profits and gains of any business.

This amendment will take effect from the 1st April, 1984 and will, accordingly, apply in relation to the assessment year 1984-85 and subsequent years.

Sub-clauee (c) seeks to Insert a new sub-section (5) which provides for the forms and modes of investing or depositing moneys accumulated or set-apart by such trusts. These forms and modes are broadly the same as those specified in clause (a) of sub-section (5) of section 13 of the Income- tax Act. The lift of specified forms and modes as contained In the existing provisions in the Income-tax Act has been enlarged to include deposits with certain approved financial corporations and deposits with or Investment In bonds Issued by approved public companies engaged in providing long-term finance for construction or purchase of houses in India for residential purposes.

This amendment will take effect from 1st April, 1983. Clause 7 seeks to amend section 13 of the Income-tax Act.

Sub-clause (a) seeks to amend sub-section (1) of section 13. Item (1) of this sub-clauBeiseeks to omii clause (bb) of sub-section (1) of this section. This amendment Is consequential to the proponed substitution of sub-section (4) of section 11 of the Act by olause 6 of the Bill which provides that profits and gains of business will not be exempt In the case of charitable or religious trusts and institutions.

74 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

This amendment will take effect from 1st April, 1984 and will accordingly apply In relation to

the assessment year 1984-85 and subsequent years.

Item (11) seeks to substitute clause (d). The proposed amendment provides for the forfeiture

of exemption from Income-tax in the case of charitable or religious trusts and Institutions In cases where they Invest or deposit their funds after the 28th February, 1983 otherwise thwi In the forms and modes specified in new sub-section (5) of section 11. Exemption from income-tax will also be forfeited If funds Invested before 1st March, 1983 continue to remain invested or deposited In forms or modes which do not conform to the proposed new pattern of Investment. Further, trusts and institutions which hold shares in companies (other than Government companies or statutory corporat- ions) after the 30th November, 1983 will also forfeit exemption from Income-tax. Such trusts and institutions will, however, be allowed to hold shares in cases where such shares constituted the original corpus of the trust or Institution as on 1st June, 1973 or where such shares were allotted by way of bonus before the said date Compliance with the proposed new pattern of investment will not be mandatory for trusts and Institution* whose only source of income consists of profits and gains of business.

Sub-clauses (b) and (c) seek to amend sub-section (2) and sub-section (4) of that section and are

clarlflcatory in nature.

Sub-clause (d) seeks to omit sub-sections (5) and (6). Thin amendment Is consequential to

Insertion of sub-section (5) In section 11 of the income-tax Act by clause 6 of the Bill.

These amendments will take effect from 1st April, 1983.

Clause 8 seeks to make an amendment In clause (i) of section 16 of the Income-tax Act relating to

standard deduction In the case of salaried assessees.

Under the existing provisions, a standard deduction is granted to salaried assessees at a uniform

rate of twenty-five per cent, of the salary subject to a maximum of Rs. 5.000.

Under the proposed amendment, the standard deduction will be allowed at the rate of twenty-five

per cent, of the salary subject to an enhanced celling of Rs. 6,000.

This amendment will take effect from 1st April, 1984, and will accordingly apply in relation to the

assessment year 1984-86 and subsequent years.

Clause 9 seeks to amend section 24 of the Income-tax Act relating to detections from Income from

house property.

Under the proposed amendment, interest payable by an assessee In respect of funds borrowed for

the acquisition or construction of house property and pertaining to the period prior to the previous

year In which such property has been acquired or constructed shall be deducted In five equal annual

instalments commencing from the previous year in which the house was acquired or constructed.

The amount of Interest so deductible shall not Include any amount of such interest allowed as a

deduction under any other provision of the Act.

This amendment will take effect from the 1st April, 1984 and will accordingly apply in relation

to the assessment year 1984-85 and subsequent years.

Clause 10 seeks to make certain amendments in section 32 of the Income-tax Act relating to

deduction in respect of depreciation of buildings, .machinery, plant or furniture owned by the assessee

and uaed for the purposes of the business or profession.

- Under the proposed amendment In sub-clause (a), the monetary limit on full deduction m respect of

Items of machinery or plant of small value will be raised from Rs. 750 to Rs. 5,000.

Under the amendment In sub-clause (b), It is proposed to secure that the initial depreciation at

40 per cent, of the actual cost of the building used for the purpose of residence of low-paid employees o

for their welfare activities will be deducted in determining the written down value of the building for

the purposes of computing the amount of depreciation admissible in respect of such buildings In

subsequent years.

The amendment In sub-clause (o) similarly seeks to secure that the initial depreciation at twenty-

five per cent, of the actual cost of the building owned by an Indian company and used by such company

as an approved hotel is also deducted in determining the written down value of the building for the

purposes of calculating the amount of depreciation admissible in respect of such building In subsequent

years.

SFC. 2] THE GA7.K1TE OF' INDIA EXTRAORDINARY 75

The aforesaid amendments will take effect from 1st April, 1984 and will according] v apply in relation to the assessment year 1984-85 and subsequent years.

Clause 11 seeks to amend section 32A of the Income-tax Act relating to Investment allowance.

Under tmb-clause (a)(i)( investment allowance will be admissible in respect of new machinery anil plant Installed after 3lst March, 1983 but before 1st April, 1988 for the purposes of the business ol repairs to ocean-going vessels or other powered craft if the business Is carried on by an Indian company and such business Is for the time being approved by the Central Government.

This amendment will take effect from 1st April, 1984 and will accordingly applv in relation to the assessment year 1984-85 and subsequent years.

Sub-clause (a)(ii) makes a clarificatory amendment from the 1st June, 1983.

Under sub-clause (b) which seeks to Insert a new sub-section (2C), the assessee will be entitled to investment allowance at the rate of thirty-five per cent, of the actual cost of such machinery or plant which would assist in control of pollution or protection of environment and notified by the Central Government if the machinery or plant is installed by the aasessee in industrial undertakings after 3 l B t M a y, 1983.

Clause 12 seeks to amend section 35 of the Income-tax Act relating to expenditure on scientific research.

Under the existing provisions of sub-section (2A), an a s s e s s ee Is entitled to deduct one and one- third times the amount paid by him to an approved scientific research association, university, college or other institution to be used for scientific research under an approved p r o g r a m me

Under the proposed amendment, the aforesaid weighted deduction will be available only In respect of sums paid with a specific direction that they shall not be used for the acquisition of any land or building or construction of any building.

This amendment will take effect from the 1st April, 1984, and will accordingly apply in relation to the assessment year 1984-85 and subsequent years.

Clause 13 seeks to amend section 3!iB of the Income-tax Act relating to export markets dovelopn.enr allowance.

Under the existing provisions, a domestic company or a resident ncn-corporate a s s e s s ee is entitled to a weighted deduction In the computation of the profits or gains from business, In respect of pvpenditurt (other than capital expenditure or personal expenses of the assessee) on certain specified activities related to export of goods, services, facilities which the a s s e s s ee deals in or provides In the course of his business. The deduction ie allowed In an amount equal to one and one-third times the aggregate of expenditure Incurred by the a s s e s s ee during the previous year.

Under the proposed amendment, no deduction under this provision will be available In relation to expenditure Incurred after 28th February, 1983.

This amendment will take effect from 1st April, 1983.

Clause 14 seeks to amend section 35C of the Income-tax Act.

Under the existing provision*, a company or a oo-operatlve society which uses the product" of

agriculture, animal husbandry or dairy or poultry farming as raw materials or processes such

products, la eligible for a weighted deduction of expenditure Incurred, whether directly or through

anapproved association or body, In the provision of agricultural Inputs and extension servloea to

cultivators, growers or producers of suoh product to an amount equal to one and one-fifth times the

amount of the qualifying expenditure. The proposed amendment seeks to restrlot the deduction to

the amount of the expenditure Incurred,

The amendment will take effect from lit April, IBM, and will accordingly apply In relation to

the assessment yoar 1984-86 and subsequent yuan,

Clau§e is seek! to amend section 36CC of the taoome-tax Aot relating to rural development allowance,

Under the rotating provisions, where a tax-payor"belflg a oompany or a oo-operatlve loelety Inouf i wy axpendLture on my programme of rural development, a deduction li allowed on the

76 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

amount of such expenditure Incurred during the previous year provided that such programme has been approved by the prescribed authority.

Under the proposed amendment, no deduction will be allowed In respect of any expenditure on any programme of rural development unless the following conditions are satisfied, namely: —

(a) the approval of the prescribed authority In respect of such programme has been obtained before l"t March, 1983;

(b) such programme Involves work of construction of any building or other strucuture or the laying of any road or construction or boring of a well or tube-well or the Installation of any plant or machinery and such work has commanfed before 1st March, 1983;

(c) In a case where the approval of the proscribed authority In respect of such programme has been granted for a specified period, the expenditure on such programme Is Incurred belore the expiry of that period, and In any other case, before 1st March, 1984;

(d) the tax-payer furnishes along with the return of Income for the assessment year for which the deduction Is claimed, a statement of such expenditure In the prescribed form duly signed and verified by a Chartered Accountant setting forth the prescribed particulars.

The amendment will take effect from 1st April, 1983.

Clause 16 seeks to amend section 35CCA of the Income-tax Act relating to expenditure by way of payment to associations and Institutions for carrying out rural development programmes.

Under the existing provisions, sums paid by any tax-payer carrying on business or profession to any association or Institution which has as Its object the undertaking of programmes of rural development are allowed as deduction In computing the taxable profits where such sums are to be used for carrying out a programme of rural development. The deduction Is allowed only If the association or Institution and also the programme of rural development for which the sums are paid have been approved by the prescribed authority.

Under the proposed amendment,the deduction will not be allowed In respect of any Bums paid to associations or Institutions aforesaid unless the tax-payer furnishes a certificate from the association or Institution to the effect that —

(a) the programme of rural development had been approved by the prescribed authority tfefore 1st March, 1983; and

(b) such programme Involves work by way of construction of any building or other structure or the laying of any road or the construction or boring of a well or tube-well or the Installation of any plant or machinery and such work has commenced before 1st March. 1983.

Llkewise,the deduction In respect of expenditure by way of payment of any sum to any association or Institution which has as Its object the training of persons for Implementing programmes of rural development will not be allowed unless the tax-payer furnishes a certificate from such association or Institution to the effect that —

(a) the prescribed authority had approved the association or Institution before l it March, 1083; and

(b) the training of persons for Implementing any programme of rural development had been started by the association or Institution before l it March, 1883.

Th" certificate! required to be furnlthed will not be laaued by any association or lnatltutlon unlesg It has obtained from the prescribed authority authorisation In writing to Issue oerttfloatea of such nature.

Under anew clause (o) proposed to be Inserted In sub-section (1), payment of any sum

to a rural development fund set up and notified by the Centrtl Government In this behalf will

qualify for deduction.

These amendments will take effeot from 1st April, IBM.

Sic. 2J THE GAZETTE OF INDIA EXTRAORDINARY 77

Clause 17 seeks to amend section 37 of tho Income-tax Act relating to deductions In computing profits and gains from business or profession.

Sub-clause (a)(i) seeks to amend sub-section (2A) so as to raise the monetary celling on deduction In respect of expenditure on entertainment to R s. 50,000.

This amendment will take effect from 1st April, 1984, and will accordingly apply In relation to the assessment year 1984-85.

Sub-clause (a)(U) seeks to add a new Explanation to clarify that "entertainment expenditure" Includes expenditure on hospitality of every kind whether provided under any express or Implied contract or custom or usage of trade, but doeo not Include expenditure on food or beverages provided to the employees In their place of work.

This amendment will take effect retrospectively from 1st April, 1976,

Sub-clause (b) of this olause seeks to insert three new sub-sections (3A), (3B) and (3C) in section 3ri of the Income-tax Act.

Under the proposed amendments,twenty per cent, of specified expenditure (to the extent It has not been disallowed under the other provisions of the Income-tax Act) shall not be allowed as deduction in computing the Income by way of profits and gains of business or profession. The items of expenditure in respect of which such disallowance will be made are expenditure on advertisement, publicity, sales promotion, travel by r a i l, motor-car, ship, powered craft or aircraft; running and maintenance of aircraft and m o t o r - c a r s, and payments made to hotels. Expenditure on advertisement, publicity and sales promotion to the extent that suoh expenditure represents remuneration paid to employees of the assessee engaged in the said activities shall not be disallowed. The amendment further provides that expenditure on running and maintenance of aircraft or motor-cars shall Include the expenditure on chartering aircraft or the hire charges for engaging taxis and conveyance allowances paid to employees and d i r e c t o r s.

No disallowance shall be made under the proposed provision in respect of expenditure incurred by domestic companies and resident non-corporate tax-payers on advertisement, publicity and sales promotion outside India, on travelling outside India for the purposes of sales promotion and expendi- ture on running and maintenance of motor-oars in any branch, office, etc. outside India.

In the case of an assessee engaged in the business of operation of aircraft or in the business of runn Ing m o t o r - c a rs on hire, expenditure incurred in respect of aircraft or motor-cars shall not be oon- sldered for disallowance.

These amendments will take effect from 1st April, 1984 and will, accordingly, apply In relation to the assessment year 1984-85 and subsequent y e a r s.

Sub-clause (c) seeks to Insert a new sub-section (6) in section 37 of the Income-tax Act.

The proposed amendment, which is for the removal of doubts, seeks to provide expressly that any accommodation, by whatever name called, maintained by the assessee for providing lodging or boarding and lodging to any person (Including any employee or, where the asseasee Is a company, any director of, or the holder of any office in, the company) on tour or visit to the place at which such accommodation is situated, Is accommodation in the nature of a guest house for the purposes of the concerned sub-section.

This amendment will take effect retrospectively from 1st April, 1979.

Clause 18 seeks to insert a new section 43Btn the Income-tax Act relating to certain deductions to be allowed only on actual payment.

Under the proposed new section, a deduction allowable under the Act in respect of any sum .payable by the assessee by way of tax or duty under any law for the time being In force or any sum payable by him as an employer by way of contribution to any provident fund, superannuation fund, e t c ., shall be allowed to him only in computing the Income chargeable under the head "Profits and gains of business or profession" of that previous year In which such sum is actually paid by him irrespective of the previous year in which the liability to pay suoh sum was incurred by the aeeenseo according to the method of accounting regularly employed by him.

7" THE GAZETTE OF INDIA EXTRAORDINARY [PAUT II—

The provisions of the new section will take effect from 1st April, 1984, and will accordingly apply to the assessment year 1984-85 and subsequent years.

Clause 19 seeks to amend section 44D of the Income-tax Act containing special provisions for computing certain incomes in the case of foreign companies.

Sub-clause (a) seeks to amend clauses (a) and (b) of this section. Under the proposed amendment, the provisions of this section relating to restriction on the deduction of expenses In computing In the casS of foreign companies Income by way of royalty or fees for technical services will also be applicable in cases where such income is received from Government.

Sub-clause (b) seeks to Insert a new clause (c) In this section. Under the new clause (c), no deduc- tion will be allowed in respect of any expenditure or allowance in computing In the case of a foreign company Income by way of Interest received from Government or an Indian concern on moneys borrowed or debt incurred by the Government or the Indian concern In foreign currency.

Sub-clause (c) seeks to amend clause (d) of the Explanation to this section. This amendment Is con- sequential to the proposed amendment under sub-clause (a).

This amendment will take effect from 1st June, 1983.

Clause 20 seeks to amend section 54E of the Income-tax Act relating to capital gains on transfer of capital assets not to be charged in certain oases.

The amendment under sub-clause (a)(i) seeks to provide that exemption under Oils seotlon will apply only in cases where the tax-payer has invested or deposited the whole (or, as the case may be, part) of the net consideration in the new asset by initially subscribing to the new asset.

The amendment under sub-clause (a)(ii) seeks to provide that in cases where the original asset is transferred after the 28th February, 1983, exemption under the section will be allowed in cases where the net consideration is invested In notified Central Government securities; notified special series of vnite of the Unit Trust of India;notified national rural development bonds; and notified debentures issued by the Housing and Urban Development Finance Corporation Limited.

The amendment under clause (b) seeks to provide that in a case where the original asset Is transferred after the 28th February, 1983, and the tax^payer invests the whole or any part of the net consideration In respect of the original asset in any new asset, and he takes any loan or advance on the security of such new asset, he shall be deemed to have converted (otherwise than by transfer) such new asset on the date on which such loan or advance is taken, and the amount of the capital gain arising from the transfer

Tho amendment in clause (c) provides that exemption under this section (aa proposed to be amended)

will also be available, in cases where the original asset is compulsorlly acquired, in relation (.0 the additional compensation or addttional consideration In respect of such assets receiver! after 28th February, 1983,

These amendments will take effect from 1st April, J983.

, Clause 21 seeks to amend section 80C cf the Income-tax Act relating to deduction in respect of life insurance premia, conrrlbutions to provident fund, etc.

Under the proposed amendment in sub-clause (a), Hindu undivided families also will be entitled to deduction under this section in respect of the following categories of long-term savings made by them out of their taxable income:—

(i) contributions to a public provident fund in an account standing in the name of any member of the family; and

(ii) deposits made in a ten-year or fifteen-year account standing in the name of any member of the family under the Post Office Savings Bonk (Cumulative Time Deposit) Rules, 1959

Under the amendment proposed in nub-clause (b). the amount qualifying for deduction in respect of long-term savings in the form of life Insurance premia, contributions to certain funds, etc. will only be subject to a monetary celling, and not to any celling by way of a percentage of the gross total Income The monetary celling will be Ra.60,000 (aa ftt present) In the cage of an author, playwright, artist, musician, actor or aportaman and Ha. 40,000 (&a at preaent) In the case of other tax-payers entitled to deduction under thla aeotlon.

.:'•' -I THh. C.\/_H1 TR op INI'I "\ EXTIIAOj-tniNAllY 70

These amendments will come into force with effect from 1st April, 1984,and will accordingly apply In relation to the assessment year 19R4-85 and subsequent years,

Clause 22 seeks to amend section 80GG of the Income-tax Act relating to deduction in respect of rents paid

Under the exiwLin^ provisions, an kssessee is not entitled to the aforesaid deduction in cases where the asaessee, his spouso or minor child or the Hindu undivided family of which he is a member, owns any residential accommodation anywhere. Under the proposed amendment, the deduction in respect of rente paid will be denied oily where the assessee, etc. , owns any residential accommodation at the place where ho ordinarily resides or performs duties of his office or employment, or carries on hia business or profession, and where the residential accommodation owned by him is at any other place, if it is occupied by him for the purposes of hie own residence.

This amendment will take effect from 1st April, 1984, and will accordingly apply in relation to the assessment year 1984-85 and subsequent years

Clause 23 seeks to amend section 80GGA of Ihe Income-tax Act relating to deduction in respect of certain donations for scientific research or rural development.

Sub-clause (a) seeks to substitute the proviso to clause (b) of sub-section (2) of this Ruction- Under the proposed amendment, the deduction in respect of sums paid to any association or institution for carrying out any programme of rural development or for training of persons for implementing such programmes wtli be allowed only if the assessee produces a certificate from such association or insti- tution referred to in sub-section (2) or sub-section (2A), proposed to be inserted in section 35CCA of the Income-tax Act by sub- clause (b) of clause 16 of the Bill,

Sub-clause {b) seeks to insert a new clause (d) in sub-section (2), Under the proposed provision, deduction will be allowed in respect of any stun paid by an assessee to any rural development fund that may be set up and notified by the Central Government for the purposes of clause (c), proposed to be inserted in sub-section (1) of section 35CCA of the Income-tax Act by sub-clause (a) of clause 16 of the Bill.

This amendment will take effect from 1st April, 1983.

Clause 24 seeks to insert a new section 80HHC in the Income-tax Act relating to deduction in respect of export turnover.

Sub-section'{D of the new section provides that a tax-payer being an Indian company or a person (other than a company) who is resident in India exports out of India during the previous year any goods or merchandise to which this section applies, will be allowed deduction of an amount equal to five per cent, of the amo\mt by which the export turnover of such goods or merchandise during the previous year exceeds the export turnover of the goods or merchandise during the immediately preceding previous year.

Sub-section (:!) of the new section provides that the new section applies to all goods or merchandise other than agricultural primary commr>iitictf, not being produce of plantations; mineral oil; minerals and ores and such other good a" or merchandise aa the Central Government may by notification in the Official Gazette specify In this behalf. This sub- section further provides that this concession wiH apply to sale proceeds of'such goods or merchandise exported out of ladia aa are receivable by the tax-payer in convertible toreign exchange.

Sub-section (3) of th.? new section provides that no deduction will be allowed under the new section unless the tax-payer had, during the immediately preceding previous year, exported out of India goods or merchandise to which thi^ section applies,

The provisions of the new section will take effect from 1st April, 1983,

Clause 25 neekM to amend section 80-1 of the Income-tax Act relating to deduction in respect of profits and gains from certain industrial undertakings, etc.

Under the proposed amendments, where the grogs total income of a*\ assfssee being an Indian company includes any profits and gains derived from the business of repairs to ocean-going vessel? or other powered craft, a deduction shall be allowed of 20 per cent, of such profits in the initial assess- ment year and each of the four succeeding assessment years, subject to the fulfilment of certain condi- tions laid down in proposed new sub-section (4A). This auh-section provides, intgr iJJia, t n at such business should have commenced after the 31st March, 1983 but before the 1st April, 1988 and, is for the time being, approved by the Central Government.

8o THE GAZETTE OF INDIA EXTRAORDINARY [PART H—

These amendments wiU take effect from 1st April, 1984 and will accordingly apply in relation to the assessment year 1984-85 and subsequent years.

Clause 26 seeks to omit, with effect from 1st April, 1984, section 80JJ of the Income-tax Act, relat- ing to deduction in respect of profits and gains from business of live-stock breeding or poultry or dairy farming. The deduction will not, therefore, be available for the assessment year 1984-85 and subsequent years.

Clause 27 seeks to omit, with effect from 1st April, 1984, section 80JJA of the Income-tax Act, relating to deduction in respect of profits and gains from business of growing mushrooms. The deduc- tion will not, therefore, be available for the assessment year 1984-85 and subsequent years.

Clause 28 seeks to make two amendments to section 80L of the Income-tax Act relating to deductions in respect of interest on certain securities, dividends, etc.

Under the first amendment, interest on deposits with any bank, other than a banking company or a co-operative society referred to in clause (vi) of sub-section (1) of the said section which may be approved by the Central Government will also qualify for the exemption of income from specified financial assets.

Under the second amendment, the monetary ceiling for exemption of income from specified financial assets is proposed to be raised to Rs.7000 from the over-all limit of Rs. 6000, comprising of the general exemption of Rs. 4000 and an additional exemption of Rs. 2000 in respect of Interest on any Government security or on bank deposits for a period of one year or more.

The proposed amendments will take effect from 1st April, 1984, and will accordingly apply in rela- tion to the assessment year 1984-85 and subsequent years.

Clause 29 seeks to omit, with effect from 1st April, 1984, section 80MM of the Income-tax Act, relating to deduction in the case of an Indian company in respect of royalties, etc., received from any concern in India. The deduction will not, therefore, be available for the assessment year 1984-85 and subsequent years.

Clause 30 seeks to substitute clause (b) of sub-section (2) of section SOP of the Income-tax Act by a new clause.

Under the existing provisions, profits derived by a primary co-operative society engaged in supply- ing milk raised by its members to a federal milk co-operative society, Government, local authority or to a Government company or statutory corporation, engaged in supplying milk to the public are exempt from income-tax. The proposed amendment seeks to extend the scope of the existing tax concession to primary co-operative societies which are engaged in the supply of oilseeds, fruits and vegetables also.

This amendment will take effect from 1st April, 1984,and will accordingly apply in relation to . the assessment year 1984-85 and subsequent years.

Clause 31 seeks to amend section 80R of the Income-tax Act relating to deductions in respect of remu- neration from certain foreign souroes in the case of professors, teachers, etc.

Under the existing provisions, a deduction of 50% of remuneration received by an Indian citizen from any service rendered by him during his stay outside India in his oapacity ae a professor, teacher or research worker is allowed, in computing the total income of that person If the services ae professor, teacher or research worker are rendered in any University or educational Institution established outside India or In any other notified association or body established outside India. The proposed amendment seeks to omit the aforesaid requirement of notification of associations or bodies established outside India for the purposes of the tax concession. Accordingly, the deduction in respect of remuneration from foreign sources In the case of professors, teachers, eto. will now be available where the services as a professor, teacher or research worker are rendered not merely in any University or other educational institution but also to any other association or body without the necessity of it being notified.

This amendment will take effect from 1st April, 1984, and will accordingly apply in relation to aseei ment year 1984-85 and subsequent year<°

Clau*e 32 seek* to insert a new Chapter VTB In the Income-tax Act relating to restriction on certain deduction* In the c ue of companlea.

8ub-cectlon (1) of new •action 80WA aeek* to provide that where In the c ue of companies the •Sfregate amount of deduction* admlfalble under certain provision* of the Income-tax Act specified In mb-Motlon (2) of that section exceed* 70 per cent, of the amount of total Income computed before

SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 81

making auch deductions, the amount to be deducted under those provisions will be restricted to 70 per cent, of the total Income as computed before making such deductions.

Sub-section (2) seeks to provide the deductions under the various provisions of the Income-tax Act for the aforesaid purposes of sub-section (1). These deductions Include deduction In respect of donations made to approved universities, colleges, or other Institutions to be used for research In social sciences or statistical research relating to the class of business carried on by the aasessee; capital expenditure on scientific research relating to the business carried on by the assesaee; donations to approved scientific research associations, universities, colleges, or other Institutions to be used for scientific research under approved programmes, to the extent the deduction exceeds the amount paid by the aasessee; Ln respect of expenditure on In-house scientific research under approved programmes, to the extent the deduction exceeds the expenditure Incurred by the assessee; agricultural development allowance; rural development allowance; donations to approved associations or Institutions for being used for approved rural development programmes or training of persons for Implementing programmes of rural development; donations made to approved associations and Institutions for carrying out programmes of conservation of natural resources; unabsorbed develop- ment rebate of earlier years; unabsorbed development allowance of earlier years, development allowance for the year; unatisorbed investment allowance of earlier years; investment allowance for the year; donations to certain funds, charitable institutions, etc.; donations to approved associations or Institutions for carrying out approved rural development programmes or training of persons for implementing programmes of rural development; donation to approved associations or Institutions for undertaking; programmes of conservation of natural resources; profits and gains from newly established undertakings or hotel business In backward areas; profits and gains from newly established small scale Industrial undertakings In rural areas; profits and gains from execution of foreign projects; export turnover; profits and gains from Industrial undertakings established after 3lst March, 1981; profltB and gains-from newly established Industrial undertakings or ships or hotel business; dividends! attributable to profits and gains from new Industrial undertakings or ship or hotel business; Inter-corporate dividends; dividends received from certain foreign companies, royalties etc. from certain foreign enterprises and profits and gains from publication of books.

Sub-section (3) seeks to provide that the deductions specified in sub-section (2) will be allowed In the order ln which they appear therein.

Sub-section (4) seeks to provide that any deduction specified ln Bub-sectlon (2) and not allowed In the computation of Income only because of the restriction provided In sub-section (1) will be carried forward and will be deemed to be deduction admissible In the succeeding assessment years.

The proviso of this new section will take effect from 1st April, 1984, and will accordingly apply in relation to assessment year 1984-85 and subsequent years.

Clause 33 seeks to omit sectLon 89A of the Income-tax Act relating to tax relief In relation to export turnover.

This amendment will take effect from 1st April, 1983

This omission is consequential to the insertion of new section 80HHC in the Income-tax Act under clause 24 of the Bill.

Clause 34 seeks to amend section 109 of the Income-tax Act containing definitions of certain expressions.

This amendment is consequential to the proposed omission of section 80MM of the Income-tax Act by-clause 29 of the Bill.

This amendment will take effect from 1st April, 1984,and will accordingly apply in relation to the assessment year 1984-85 and subsequent years.

Clause 35 seeks to amend section 115A of the Income-tax Act relating to tax on certain Incomes In the case of foreign companies.

Sub-clause (a) seeks to Insert a new clause (aa) in aub- section (1) of this section. Under the now clause (aa), interest received by a foreign company from Government or an Indian concern on moneys borrowed or debt Incurred by Government or the Indian conoern In foreign currency will be subjected to tax at the rate specified ln this section.

82 THE GAZETTE OF INDIA JvXTKAORDINAKY [ P A K T I I-

Sub-clause (b) seeks to substitute clause (b) of sub-section (1). Under the substituted clause (b), royalty or fees for technical services received by a foreign company from Government will also be taxed :it the rate specified in this section.

Sub-clause (c) 3"eks to Insert new clause (ia) in snh section (1) to provide 25 per cent, as the rate of t;iX .'applicable to Income by way of interest received by foreign companies from Government or Jqdlan concerns on foreign currency loans or del

Sub-olause (d) seeks to amend clause (iv). This amendment is consequential to the insertion of clause (aa) under sub-clause (a).

Sub-clause (e) seeks to insert pew clause (bb) in ih* Explanation to this section. The new clause (bb) provides that the expression "foreign company" will i.p.vj the same meaning as In section lO(15)(Iv)(g) of the AcU

'J'heae amendments will take effect from 1st June, 1983.,

C-i:isti 36 seeks to iniurt a new Chapter XH-A in th*¹ Income-tax Act containing special provisions rviating to certain incomes of nun-residents.

New section 11SC seeks to define certain expressions used in the new Chapter XII-A,

For the purposes of new Chapter XU-A, "convertible foreign exchange" will mean foreign exchange which Is for the time being treated by the Reserve Bank as convertible foreign exchange for the purposes of the Ff.-reign Exchange Regulation Act. "Foreign nxchango ;u)Het" will mean any specified 3Bset acquired, purchased or subscribed to by the assesses in convertible foreign exchange. "Specified asaet" will moan shares in an Indian company, debentures of or deposits with an Indian public limited company. Central Government securities, units of the Unit Trust of India and any other security, deposit or other investment that may be notified by the Central Government for this purpose. 'Investment Income" will mean any Income derived from a foreign exchango asset. "Long-term capital asset" will mean capital gains relating to a foreign exchange asset which is not a. short-term capital aaaet, "Nun-resident Indian" will mean an Individual who is either a citizen of India or a person of Indian origin, and Is not a resident of India.

New section 115D seeks to provide that in computing the investment income of a non-resident Indian, no deduction will be allowed in respect of any expenditure or allowance.

New section 115E seeks to provide that income-tax on any investment income or Income by way of long-term capital gain of a non-resident Indian will be calculated at the rate of twenty per cent, plus surcharge at the rate of 12^% of such income-tax. It ig also proposed to provide that Investment income and long-term capital gain of a non-resident Indian will not be aggregated with his other Indian Income for charging income-tax on such other Income.

New section 115F geeks to provide that in cases where a foreign exchange asset ia transferred by the a3seeaee and the net consideration for the transfer Is invested by him within six months in any specified asset or deposited in a Non-Resident(External) Account or in notified savings certificates, any long-term capital gains arising from the transfer will not be charged to tax. If investment in the aforesaid specified asset, Account or savings certificates is less than the net consideration, the exemp- tion from tax In respect of the long-term capital gain will be allowed on proportionate basis. It is also being provided that if the new asset acquired by investing the net consideration realised on transfer Gf the foreign exchange asaet is transferred or converted (otherwise than by transfer), Into money, within three years from the date of Its acquisition, the amount of capital gain earlier exempted will be regarded as capital gains relating to long-term capital assets of the year in which the new asset is transferred or converted (otherwise than by transfer) into money.

New section 115G seeks to provide that a non-resident Indian having Investment inoome or income by way of long-term capital gains or both and the tax deductible at source from auoh inoome has been deducted need not file the return of Income under sub-section (1) of section 139,

New section 115H seeks to provide that in the case of a non-resident Indian who becomes resident In India. In a subsequent year, the provisions of the new Chapter Ml-A will continue to apply In relation to the lnv""tment Income derived from debentures of and deposits with an Indian public limited company and Central Government securities, acquired in convertible foreign exchange, until the transfer or conversion (otherwise than by transfer) into money of such asset.

SEC 2] THE GAZETTE OF JNDIA EXTRAORDINARY ⁸3

New section 115-1 seeks to provide that a non-resident Indian will have the option not to be assessed under the provisions of this Chapter. This option will be exerclsable by an aaseasee by making a declaration to that effect along with his return of Income for the relevant assessment year.

These amendments will take effect from 1st June, 1983.

Clause 37 seeks to amend section 164 of the Income-tax Act relating to charge of tax where the share of the beneficiaries is unknown.

Thl3 amendment is consequential to the proposed amendment to sub-section (4) of section II of the Income-tax Act under sub-clause (b) of clause 6 of the Bill.

This amendment will take effect from 1st April, 1984,and will accordingly apply in relation to assessment year 1984-85 and subsequent years.

Clause 38 seeks to amend section 280ZA of the Income-tax Act relating to tax credit certificates for shifting of industrial undertaking from urban area.

Under the proposed amendment, the capital gain arising from the transfer of machinery ana plant as a result of the shifting of the individual undertaking would also be taken into account for the purpose of granting tax credit certificate under this section and the expenditure Incurred for purchasing new machinery or plant for the undertaking In the area to which the undertaking Is shifted will also qualify for being considered in computing the amount of tax credit certificate. If the new machinery or plant is transferred within five years of Its purchase, one-half of the amount for which the credit certificate has been granted to the company will be deemed to be the tax due from the company.

The amendment will take effect from 1st April, 1984,and will accordingly, apply in relation to assessment year 1984-85 and subsequent years.

Clause 39 seeks to make certain amendments of a consequential nature In different provisions of the Income-tax Act.

The amendments are consequential to the substitution of clause (b) of sub-section (2) of section Hi Insertion of new section 80HHC, and the omission of sections 80JJ and 80JJA, in the Income-tax Act.

Clause 40 seeks to make a provision for the revival of levy of wealth-tax In the caae of closely- held companies.

Sub-clause (1) seeks to provide that wealth-tax under the Wealth-tax Act at the rate of two per cent, will be charged on the net wealth of closely-held companies on the valuation date relevant to the assess- ment year 1984-85 and subsequent assessment years.

Sub-clause (2) seeks to provide that for the purposes of sub-clause (1), the net wealth of a company will be the amount by which the aggregate value of the assets specified In sub-clause (3) exceeds the aggregate value of debts secured on or incurred In relation to such assets. However, any such debt secured on any asset belonging to the assessee which la incurred for the benefit of any other person or which enures to any other person or which la not represented by any asset belonging to the assessee will not be taken Into account in computing the net wealth of the assessee.

Sub-clause (3) seeks to specify the assets for the purposes of sub-clause (2).

Sub-clause (4) seeks to provide that the value of any asset will be estimated, subject to the provisions of sub-section (3) of section 7 of the Wealth-tax Act relating to determination of the value by the Valua- tion Officer, to be the price which, In the opinion of the Wealth-tax Officer the asset would fetch if sold in the open market on the valuation date.

Sub-clause (5) seeics to provide that all the provisions of the Wealth-tax Act, excepting the provisions relating to exemptions In respect of certain assets, valuation of business assets in caaea where regular accounts are maintained by the assessee, exemption in respect of certain companies and rates of wealth- tax, will apply In such manner that such provisions are in conformity with the provisions of this clause.

Sub-clause (6) provides that the provisos of the section will not apply to such institution, association or body aa may be notified by the Central Government.

Sub-clause (7) seek* to provide that thl" clause will be oonstrusd aa a part of the Wealth-tax Act.

Clause 41 seeks to make certain amendment* In aub-section (1) of Motion 5 of the Wealth-ux Act,

84 THE -GAZETTE OF INDIA EXTRAORDINARY [PART II—

Sub-clause (a) of this clause seeks to substitute clause (xa) of this sub-aectlon. Under the proposed new sub-clause,fee8 due to the assessee In respect of professional services rendered by him In the legal, medical, engineering or architectural profession or the profession of accountancy or In a profes- sion notified by the Central Government In this behalf will not bo Included in his net wealth If he main- tains his booka of account on the cash system of accounting.

This amendment Vvill take effect from lot April, 1984, and will accordingly apply In relation to the assessment year 1984-85 and the subsequent years.

Sub-clause (b) seeks to substitute clause (xvio). Under the new clause, in the case of a non-resident Indian or a person of Indian origin, the value of any foreign exchange asset will be exempt from wealth- tax. For the purposes of this provision, "foreign exchange asset" will have the same meaning as in clause (b) of section 115C, proposed to be inserted In the Income-tax Act under clause 36 of the Bill.

This amendment will take effect from 1st April, 1984, and will accordingly apply in relation to the assessment year 1984-85 and the subsequent years.

Sub-clause (o) seeks to amend clause (xvld) inserted by the Finance Act, 1982.

Under the proposed amendment, exemption from wealth-tax in respect of the value of specified Capital Investment Bonds will be available only to individuals and Hindu undivided families.

Sub-clause (d) seeks to insert a new clause (xvilla).

The proposed new clause seeks to provide exemption In respect of any property, being a medal, trophy or an award in kind received by an assessee for any attainment, work or contribution in any field from Government or from a University established by law or an institution affiliated to such University or from any such institution, association or body as is approved for the purposes of this clause by the Central Government.

These amendments will take effect from the 1st April, 1983.

Clause 42 seeks to amend sub-section (1) of section 5 of the Gift-tax Act relating to exemption in respect of certain gifts.

Sub-clause (a) seeks to amend clause (lid). Under the proposed amendment, gifts of any foreign exchange asset made by non-resident Indian citizens or persons of Indian origin to their relatives in India will be exempt from gift-tax. For the purposes of this provision, "foreign exchange asset" will have the same meaning as In clause (b) of section 115C, proposed to be Inserted In the Income-tax Act under clause 36 of the Bill.

Sub-clause (b) seeks to amend clause (iiic) inserted by the Finance Act, 1982.

Under the proposed amendment, exemption from gift-tax In respect of gifts of specified Capital Investment Bonds will be available only to Individuals and Hindu undivided families.

These amendments will take effect from 1st April, 1983.

Clause 43 seeks to amend section 4 of the Interest-tax Act, 1974.

Under the existing provisions, a tax at the rate of seven per cent is levied in respect of chargeable Interest accruing or arising to a scheduled bank in the previous year. The amendment seeks to provide that in respect of the chargeable interest arising or accruing after 31st March, 1983, tax will be levied at the rate of three and a half per cent.

This 'Amendment shall take effect from 1st April, 1983.

Clause 44 read with the Second Schedule seeks to amend the Customs Tariff Act, 1975 to —

(i) raise the rate of basic customs duty (standard) on certain items of edible fruit, nuts and peel of melons or citrus fruit and also the rate of basic customs duty (preferential) on such items, wherever applicable;

(ii) raise the rate of basic customs duty (standard) on certain mineral substances and products and alao the rate of basic customs duty (preferential) on such items, wherever applicable;

(Hi) raise the rate of basic customs duty on inorganic chemicals;

(lv) raise the rate of baalc customs duty (standard) on organic chemicals and also the rate of basic cuatomc duty (preferential) on such item*, wherever applicable;

Six. 2] THE GAZETTE OF INDIA EXTRAORDINARY ⁸5

(v) raise the rate of basic customs duty (standard) on pharmaceutical products and also the rate

of baaic c'atoms duty (preferential) on these items wherever applicable;

(vi) raise the rate of basic customs duty (standard) on tanning substances, dyes, colours, paints

and varnishes etc. and also the rate of basic customs duty (preferential) on gambler and optical

bleaching agent*;

(vil) raise the rate of baaic customs duty (standard) on essential oils,. resinoids, perfumeryt

cosmetics and toilet preparations and also the rate of basic customs duty (preferential) on these

Items, wherever applicable;

(vlii) raise the rate of basic customs duty (standard) on soap, organic surface-active agents,

prepared waxes etc. and also the rate of basic customs duty (preferential) on such items, wherever

applicable;

(LK) raise the rate of basic customs duty on albumlnoldal substances, glues and enzymes;

(x) raise the rate of basic customs duty on explosives, pyrotechnic products, matches, pyrophorlc

alloys and certain combustible preparations;

M) raise the rate of basic customs duty (standard) on miscellaneous chemical products and also

the rate of basic customs duty (preferential) on such items, wherever applicable;

(xll) rali>e the rate of basic customs duty on artificial resins and plastic materials;

(xlii) imise the rate of basic customs duty on raw rubber, natural or synthetic rubber, waste and

aorap of uu&artfensd rubontr, "to.;

(xiv) raise the rate of basic ct-atoms duty on man-made fibres (discontinuous), waste of man-made

fibres and continuous filament tow;

(xv) raise the rate of basic customs duty on Iron and steel and articles thereof;

(xvl) raise the rate of basic customs duty on aluminium and articles thereof;

(xvll) raise the rate of basic customs duty on lead and articles thereof;

(xvlii) raise the rate of basic customs duty on zinc and articles thereof;

(xix) raise the rate of basio customs duty (standard) on gas compressors Imported for use in air-

conditioning equipment;

(xx) raise the rate of basio customs duty on self contained air-conditioning machines;

(xxi) raise the rate of basic customs duty on refrigerators (other than domestic refrigerators)

and refrigerating equipment;

(xxll) raise the rate of basic customs duty on Insulated electric wire, cable, strips etc.;

(xxllt) Insert a new sub-heading (23) In Heading No.29.01/4* and to Ox a standard rate of basic

customs duty on terephthallc acid.

Clause 45 seeks to levy up to 31st March. 1984 auxiliary duties of customs on all Imported goods at

the rate of 50 per cent, of their value.

Clause 46 seeks to enlarge the definition of 'customs port' so as to lnolude therein Inland oontalner

depot by amending clause (12) of section 2 of the Custom* Act, 1862.

Clause 47 seetcs to amend section 7 of the Customs Act, 1962 providing for treatment of the Inland

container depots for the unloading of imported goods or tor the loading of export goods to be customs

porU for all purposes of the Customs Act, 1982.

Clause 48 seeks to amend section 23 of the Customs tat, 1962, to exolude from its purview goods

pilferred before their clearance for home consumption.

Clause 49 seeks to amend section 25 of the Custom* Aqt, 1962 so as to empower Government; while

granting exemption under that sactlon,to provide for the levy of a duty at a rate expressed in a form

or m"thoc|,dlf^or"ot from the form or method in which the duty Is leviable under the Apt. This Is,

however, subject to the condition that the duty chargeable on any good* after such exemption shall

not In any oa*a exceed the basic duty leviable.

86 THE GAZETTE OF INDIA EXTRAORDIN/> ny [PAHT II—

Clause 50 seeks to reduce the period for which goods could be keui in a warehouse without payment

of duty by amending section 61 of the Customs Act, 1962. The amerJment also provided for charging

of interest on the duty Involved on warehoused goods in case the warehousing period is beyond the

Units provided for in that section.

Clause 51 seeks to amend sub-section (1) of section 74 of the Customs Act, 1D62. The amendment

nooks to relax the condition of "export out of India" for grant of drawback to a condition requiring that

the goods be entered for export and an order permitting their clearance and loading has been made in

accordance with the Customs Act, 1962.

Clause 62 seeks to amend Bub-sectlon (1) of section 75 of the Customs Act, 1962. The amendment

se^ks to relax the condition of "export out of India" for grant of drawback to a condition requiring that

the goods be entered for export and an order permitting their clearance and loading has been made . i

"^ocordance with the Customs Act, 1962.

Clause 53 seeks to amend sub-section (1) of section 76 of the Customs Act, 1962 BO as to provide for

payment of drawback only In cases where the drawback due is Rs. 50 or more and also to delete the

clause requiring the goods to be shown In the export manifest or export report before drawback can he

granted.

Clause 54 seeks to amend the First Schedule to the Central Excises and Salt Act, 1944.

Sub-clause (a) of this clause, read with the Third Schedule, seeks to amend the First Schedule to

change or amend the description of —

(1) Item No. ID relating to aerated waters to revise the basis of assessment of certain

varieties of aerated waters from ad valorem to speolflc rate of assessment.

(2) Sub-Item No. 11(2) of Item No. 4 relating to cigarettes to revise the basis of assessment

from ad valorem-cum-specific rate of assessment to ad valorem -cum -specific, or specific rate

of assessment.

(3) Item No. 16 relating to tyres to revise the rates of duties on certain specified varieties of

tyres.

(4) Item No. 17 relating to paper and paper board to revise the basis of assessment of oertain

varieties of paper and paper board from ad valorem to ad^ valorem-cum-specific rate of asse? ament.

(5) Item No. 18 relating to man-made fibres and filament yarns to revise the rates of duty on

certain varieties of fibres and yarns.

(6) Item No. 23 relating to cement to revise the rates of duties and to specifically include in Its

scope all Portland slag cements.

(7) Item No. 30 relating to electric motors so as to Include die-cast rotors within the purview

of this item.

(8) Item No. 34 relating to motor vehicles to revise the basis of assessment of saloon cars

from ad^ valorem to ad valorem-cum-specific rate of assessment.

(9) Item No. 68 relating to goods not elsewhere specified In the Central Excise Tariff to revise

the rates of duties.

Sub-clause

to the Central Excises and Salt Act to broadly align the excise classification in respect of Iron and

steel products including tin-plates, e tc , with the corresponding customs classification.

This amendment will come Into force from a date to be notified by the Central Government.

Clause 55 seeks to levy up to 31st day of March, 1984, special duties of excise on all excisable

good* at the fate of ten per cent, of the duty leviable under the Central Excises Act, read with any

notification for the time being In force Issued by the Central Government in relation to the duties

no chargeable, other than a notification providing for set-off or pro for ma credit of the excise duty

or the additional duty leviable under Customs Tariff Act, 1970, already paid on the raw materials and

component parts used in the production or manufacture of such goods.

Clause 56 read with the Fifth Schedule seeks to amend the First Schedule to the Additional Duties

of Excise (Goods of Special Importance) Act, 1957 to change or amend the description ol—

SEC. 21 THE GAZETTE OF INDIA EXTRAORDINARY ⁸7

(1) Sub -Item No. 11(2) of Item No. 4 relating to cigarettes to revise the basis of assessment of cigarettes from ad valorem-cum-specific to ad valorem-cum-specific, or specific rate of assess- ment,

(2) Sub-Items No, m and IV of Item No. 19 relating to cotton fabrics to revise the rate of duty,

(3) Sub-Hems No. (3) and (4) of Item No. 22 relating to man-made fabrics to revise tbe rate of dt

Clause 57 seeks to amend section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, to clarify that for computing the additional duty payable under the Act, notifi- cations issued by the Central Government giving set-off or proforma credit of the duty of¹ excise or the additional duty under the Customs Tariff Act, 1975, on the raw materials used in the production or manufacture of such goode should not be taken into account.

Clause 58 seeks to amend the First Schedule to tbe Indian Post Office Act, 1898, with a view to revising the postage rates for Parcels.

Clause 59 seeks to make certain amendments In the Compulsory Deposit Scheme (Income-tax Payeri Act, 1974.

Sub-clause (a) (i) seek* to amend sub-section (1) of section 3. Sub-clause (b) seeks to amend sub-section (1) of section 4. These amendments seek to secure that, in relation to the assessment years 1984-85 and 1985-86 also, compulsory deposits are made at the rates specified in paragraph D of the Schedule to the Act.

These amendments will take effect from 1st April, 1983.

Sub-clause (a) (ii) seeks to amend sub-section (3) of section 3.

Under the existing provisions, an individual 1B not required to make any compulsory deposit for any assessment year if such Individual is more than seventy years of age on the first day of the financial year immediately preceding the assessment year. Under the proposed amendment, the age limit of seventy years will be reduced to sixty-five years.

Sub-clause (c) seeks to amend sub-aection (lA)of section 8.

Under the existing provisions, the amount of compulsory deposit made by an individual shall be repayable, togather with the interest thereon, on the first day of the financial year immediately succeeding the financial year in which such individual attains seventy years of age. Under the proposed amendment, the age limit of seventy years will be reduced to sixty-five years. In ft case where the individual attains the age of sixty-five years before lat April, 1983, the amount of compulsory deposit will be repayable on 1st June, 1983.

These amendments will take effect from lat June, 1983.

08 THE GAZETTE OF INDIA EXTRAORDINARY [PAST II—

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 2(7) of the Bill provides that If a company makes a deposit with the Industrial Development Bank of India In accordance with any scheme framed by the Central Government, the surcharge on Income-tax payable by the company will be reduced to the extent mentioned In the said sub-clause. The scheme to be framed by the Central Government will contain details as to the manner of making such deposits, the period for which such deposits may be made and other connected matters of detail.

Clause 5(b) seeks to amend clause (10) of section 10 of the Income-tax Aot relating to exemption from tax In respect of gratuity received by employees on retirement, etc. In the case of gratuity payable to employees In the private sector, the amount exempt from tax Is subject to a monetary limit of Ha. 30,000. This clause seeks to Increase this limit to Bs. 36,000. The Central Government has been empowered to Increase this limit of Bs. 36,000 to a higher amount by notification In the Official Gazette, having regard to any Increase In the maximum amount of gratuity payable to Central Government employees.

Clause ll(b) seeks to Insert a new sub-section (2C) In section 32A of the Income-tax Act to provide for the grant of Investment allowance at the higher rate of 35 per cent, (as against the general rate of 25 per cent.) of the actual cost of new machinery or plant which would assist In control of pollution or protection of environment If the machinery or plant Is notified by the Central Government for the purposes of the proposed provision.

Clause 15 seeks to substitute sub-section (3) of section 35CC of the Income- tax Act by a new sub-section which relates to rural development allowance. The new sub-section provides that no deduction shall be allowed In respect of

SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY ⁸^

expenditure on any programme for rural development unless the assessee has obtained the approval of the prescribed authority In respect of such programme before the 1st of March, 1983 and furnishes, along with the return of Income for the assessment year for which deduction la claimed, a statement of such expenditure In the prescribed form.

Clause 16 seeks to amend section 35CCA of the Income-tax Act relating to expenditure by way of payment to associations or Institutions for carrying out rural development programmes, etc. Item (11) of sub-clause (a) of this clause seeks to Insert a new clause (c) In sub-section (1) which provides that payment of any sum to a rural development fund set up and notified by the Central Government In this behalf will qualify for deduction under this section. Under new sub-sections (2) and (2A) of this section, the deduction In respect of expenditure by way of payment of any sum to any association or Institution which has as Its object the training of persons for Implementing programmes of rural development will not be allowed unless the tax-payer furnishes a certificate from such association or Institution to the effect that the prescribed authority had approved the association or Institution before 1st March, 1983 and the training of persons for Implementing any programme of rural development had been started by the association or Institution before 1st March, 1983. The certificates required to be furnished will not be Issued by any association or Institution unless It has obtained from the prescribed authority, authorisation In writing to Issue certificates of such nature.

Clause 20 which seeks to amend section 54E of the Income-tax Act provides that exemption relating to capital gains on transfer of capital assets under this section after the 28th February, 1983 will apply only In cases where the tax- payer has Invested or deposited the whole or part of the net consideration In the new asset by Initially subscribing to the new asset. The proposed new clause (c)(l) In Explanation 1 to sub-section (1) of this section which specifies the new assets, empowers the Central Government to notify the securities of the Central Government, special series of the units of the Unit Trust of India, National Rural Development Bonds and debentures Issued by the Housing and Urban Development Finance Corporation Limited.

Clause 24 seeks to Insert a new section 80HHC In the Income-tax Act relating to deduction In respect of export turnover. Under sub-section (1) of this section, deduction of an amount equal to 6 per cent, of the amount by which the export turnover of any goods or merchandise to which this section applies during the previous year exceeds the export turnover of the goods or merchandise during the Immediately preceding year Is allowable. Sub-section (2) of this section, which specifies the goods or merchandise to which this section applies, empowers the Central Government to specify by notification any goods or merchandise to which the section does not apply.

Clause 41 seeks to Insert a new clause (xa) In sub-section (1) of section 5 of the Wealth-tax Act which provides that fees due to the aasessee In respect oi professional services rendered by him In the legal, medical, engineering or architectural profession or the profession of accountancy or any profession notified by the Central Government In this behalf will not be Included In his net wealth If he maintains his books of account on the cash system of accounting.

9° THE GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC, 2]

The delegation of legislative power under the afore-mentioned provisions

relates to matters of procedure or administrative detail or to matters In

respect of which It Is not practicable to make detailed provisions. Hence

the delegation of legislative power Is of a normal character.

AVTAR SINGH RIKHY,

Secretary.

PRINTED EV T HE GENErtAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD,

NEW DELhI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DICLHI, 1 9 83

---

1. *" ↩
2. ↩
3. Bld A ot f r om tacome chargeable under the h«ad ' C ^- J U J J r j "^ W<>ry lndiVldUal °rmndU "ndlVided famIly Or ^ « ^ t * - ed firm or other ^ZT^ 1jrrM ^ My °f indivldual». w^ther incorporateTor not, or every h ^ J ^ ^ S ^r r°ferrCd to iD B U W l a i ) f le ^ of dau-epDof action 2 of the ↩
4. °'t hB ↩
5. '60%" shall be substituted; (xlii) in Heading No. 73.31, for the entry \v> column (3), the entry "100%" nhall ↩