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The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No. 12] NEW DELHI, FRIDAY, MAY 13, 1983/VAlSAKHA 23, 1905

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

as a separate compilation

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS

(Legislative Department)

New Delhi the 13th May, 1983/Vaisakha 23, 1905 (Saka)

The following Act of Parliament received the assent of the President on the 13th May, 1933, and is hereby published for general information: —

THE FINANCE ACT, 1983

No. 11 of 1983

[13th May, 1983]

An Act to give effect to the financial proposals of the Central

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

PRELIMINARY

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

Short title and com- mence- ment.

(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.

(1)

CHAPTER II

RATES OF INCOME-TAX

Income- tax.

2. (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 1983, income-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 cases to which Paragraph E ol that Part applies, 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 wlvch the said Sub-Paragraph I applies, fifteen thousand rupees, and

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

then,—

(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 agricultural income were comprised in the total income after,—

(/) in a case to which the said Sub-Paragraph I applies, the first fifteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, the first eight thousand rupees,

of the total income but without being liable to tax), only for the purpose of charging income-tax in respect of the total income; and

(o) the income-tax chargeable shall be calculated as follows: —

(i) 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-Paragraph I or, as the case may be, Sub-Paragraph II 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-Para- graph II, for the purpose of determining the amount of income- tax in accordance with this sub-clause, the provisions of clause (ii) of the proviso below Sub-Paragraph II and the provisions relating to surcharge on Income-tax in the paid Sub-Paragraph II shall not apply;

(ii) 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 said Sub-Paragraph II applies,

by a sum of eight thousand 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, as the 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-cJause, the provisions of clause (ii) of the proviso below the said Sub-Paragraph II and the provisions relating to surcharge on income-tax in the said Sub-Paragraph II shall not apply;

(Hi) the amount of income-tax determined In accordance with sub-clause (i) shall be reduced by the amount of income- tax determined in accordance with sub-clause (ii):

Provided that in a erase referred to in the said Sub-Para- graph II, where the sum so arrived at exceeds sixty per cent- of the amount by which the total income exceeds twelve thou- sand rupees, the excess shall be disregarded;

(iv) the amount of income-tax determined in accordance with sub-clause (in) shall be increased by a surcharge for pur- poses 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.

43 of 1U61.

(3) In cases to which the provisions of Chapter XII 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-section (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) of section 132 of the Income-tax Act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub- section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head "Salaries" or deducted under sub-section (9) of section 80E of the said Act from any

payment referred to in the said sub-section (9) or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force> such income-tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or 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 assessee, 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 III of the First Schedule, make a deposit under the scheme framed under sub-section (7) before the last instalment of "advance tax" is due in its 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, or 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

j

(ii) in a case where the amount of the deposit eo 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 III of the First Schedule applies, where the assessee 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

(") 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 eub-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 agri- cultural income were comprised in the total income after,—

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

(ii) in a case to which the said Sub-Paragraph II applies, the first eight thousand rupees,

df the total income but without being liable to tax), only for the purpose of calculating, charging or computing such income-tax or, es the case may be, "advance tax" in respect of the total income; 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 income 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 said Paragraph A, as if such aggregate income 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 II and the provisions relating to surcharge on income-tax in the said Sub-Paragraph II shall not apply;

(ii) 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 said 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 income as so increased at the rates specified in the said Sub-Paragraph I or, as the case may be, the said 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 II and the provisions relating to surcharge on income-tax in the said Sub-Paragraph II shall not apply;

(iii) the amount of income-tax 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, "advance tax" determined In accordance with sub-clause (ii):

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;

(iv) the amount of income-tax or "advance tax" determined in accordance with sub-clause (hi) shall be increased by a sur- charge for purposes oJ! the Un.on 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'¹ in respect of the total income.

18 of 1964.

(7) Where an assessee, being a company, makes, during the financial year commencing on the 1st day of April, 1983, any deposit with the Industrial 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, frame in this behalf, then the surcharge on income-tax payable by the company for the assessment year commencing on the 1st d*y of April, 1984 shall be reduced—

(i) in a case where the amount of the deposit so made is equal to, or 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

i

(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.

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

- Provided that this clause shall not apply for the purposes of Paragraph E of Part III of the First Schedule, and for the purposes ol that Paragraph, the expression "industrial company" shall have the meaning assigned to it in the Explanation at the end of that Paragraph;

(d) "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 continu- ance, renewal or revival of policies of insurance);

(c) "net agricultural income", in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;

(f) "tax-free security" means any security of the Central Govern- 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 State Government;

(g) all other words and expressions used in this section or in the First Schedule but not defined in this sub-section and denned in the Income-tax Act shall have the meanings respectively assigned to them in that Act.

CHAPTER in

DIRECT TAXES

Income-tax

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

Amend- ment of •ectlon 2.

(a) in 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, 1984;

(b) in clause (18), in sub-clause (b), for item (B), the following item shall be substituted with effect from the 2nd day of April, 1983, namely: —

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

(a) the Government, or

(b) 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 fulfils the conditions laid down in clause (b) of section 10&.

.

Explanation.—In its application to an Indian company whose business consists mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the gene- ration 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;'.

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

Amend, ment of Eection 9.

(a) in clause (i), in the Explanation, after clause (b), the follow- ing 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 news- papers, 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;¹';

i

(b) to clause (ii), the following Explanation shall be added and shall be deemed to have been added with effect from the 1st day of April, 1979, namely: —

".Explanation.—For the removal of doubts, It is hereby declared that income of the nature referred to in this clause pHy- able for service rendered in India shall be regarded as Income earned in India;",

5. In eection 10 of the Income-tax Act,—

(a) after clause (6), the following clause shall be inserted with

Amend- ment of sectio- 10,

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

' (6A) where in the case of a foreign company deriving income by way of royalty or fees for technical services received from Government or an Indian concern in pursuance of an agree- ment made by the foreign company with Government or the Indian concern after ths 31st day of March, 1976 and approved by the Central Government, the tax on such income is payable, Under the terms of such agreement, by Government or the Indian concern to the Central Government, the tax so paid.

Explanation.—For the purposes of this clause,—

(a) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;

(b) "foreign company" shall have the same meaning

"s in section 801);

(c) "royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section fi;';

(b) in clause {10),—

(i) for the words "thirty thousand rupees", at the three places where they occur, the words "thirty-six thousand rupees" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1982;

(ii) after the provisos and before the Explanation, the following provisos shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1982, namely: —

'Provided also that the Central Government may, having regard to the maximum amount which may for the time being be exempt under sub-clause (i), increase, by notifica- tion in the Official Gazette, the limit of thirty-six thousand rupees, for all the three purposes for which it has been mentioned in the foregoing 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 his becoming incapacitated or termination of his employment or his death, as the case may be) on which gratuity is 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 lor the words "thirty-six thousand rupees", at the three places where they occur, the words "thirty thousand rupees" had been substituted.';

(c) in clause (15),—

14 of 19B2.

(i) in sub-clause (lib) [directed to be inserted by clause (d) of section 4 of the Finance Act, 1982], for the words "interest on such 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;

(ii) in sub-clause (iv),—

j

(1) for item (a), the following item shall be substitut- ed, namely: —

#

" (a) by Government or a local authority on moneys borrowed by it from, or debts owed by it to, sources outside India;"; (2) in item (c),—

(A) after the words "raw materials", the words "or components" shall be inserted;

(B) the following Explanation shall be inserted at

the end, namely.—

'Explanation.—For the purposes of this Item, "purchase of capital plant and machinery" includes the purchase of such, capital plant and machinery under a hire-purchase agreement or a lease agree- ment with an option to purchase such plant and machinery;';

18 of 1964

(3) in item (d), after the words and figures "Industrial Development 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;

28 of 1981

(4) after item (j) and before the Explanation, the follow- ing item shall be inserted, namely: —

"(ff) by a public company formed and registered in India with the main object of carrying on the busi- ness of providing long-term finance for construction or purchase of houses in India for residential purposes, being a company approved by the Central Government for the purposes of clause (viii) of sub-section (1) of section 36, on any moneys borrowed by it in foreign currency from sources outside India under a loan agree- ment 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 terms of the loan and its repayment.";

(5) in the Explanation, for the words "this Item", the words, brackets and letters "items (f) and (g)" shall be substituted;

(dy in clause (21), the following proviso shall be inserted at the i 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 association 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 association invested or deposited before the 1st day of March, 1983 otherwise than in any one or more of the forms or modes specified in 3ub-section (5) of section 11 continue to remain so invested or deposited after the 30th day of November, 1983; or

(Hi) any shares in a company (not being a Government

1 at 1986.

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 association after the 30th day of November, 1983;";

(c) in clause (26A) ,—

(i) for the figures, letters and words "1st day of April, 1&83", the figures, letters and words "1st day of April, 1986" shall be substituted;

(il) the Explanation shall be numbered and shall be deemed to have b"en numbered with effect from the 1st day of April, 1980 as Explanation 1 and after E:cplanation 1 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, 1980, namely: —

"Explanation 2.—In this clause, references to the district of Ladakh shall ]>s construed as references to the areas oom- prised in the said district on the 30th day of June, 1979;".

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

Amend- ment of section 11.

(o) in sub-section (2), for clause (b), the following clause shall be substituted, namely: —

"(b) the money so accumulated or set apart is invested or deposited in the forms or modes specified in sub-section (5).",

(b) after sub-section (4), the following sub-section shall be inserted with effect from the 1st day of April, 1984, namely: —

"(4A) Sub-section (1) or sub-section (2) or sub-section (3) or sub-section (3A) shall not apply in relation to any in- come, being profits and gains of business, unless—

(a) the business is carried on by a trust wholly for public religious purposes and the business consists of printing and publication of books or publication of book* or is of a kind notified by the Central Government in this be- half in the Official Gazette; or

(b) the business is carried on by an institution wholly for charitable purposes and the work in connection with the business is mainly carried on by the beneficiaries of the institution,

and separate books of account are maintained by the trust or insti- tution in respect of such business.";

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

'(5) The forms and modes of investing or depositing the money referred to in clause (b) of sub-section (2) shall be the following, namely: —

40 of 1989.

(i) investment in savings certificates as denned in clause (c) of section 2 of the Government Savings Certificates Act, I960, and any other securities or certificates issued by the Central Government under the Small Savings Schemes of that Government;

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

(ill) 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)

23 of IUDO.

38 of 1959.

0 of 1070.

40 of 1080.

Explanation.—In this 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, 1950, a corres- ponding new bank constituted under section 3 of the Bank- ing Companies (Acquisition and Transfer of Undertakings) Act, 1970, or under section 3 of the Banking Companies (Ac- quisition 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;

2 of 1684.

(iu) investment in units of the Unit Trust of India established under the Unit Trust of India Act, 1963;

02 Of 1083.

(v) investment in any security for money created and issued by the Central Government or a State Government;

(vi) investment in debentures issued by, or on behalf of, any company or corporation both the principal whereof and the interest whereon are fully and unconditionally guaranteed by the Central Government or by a State Gov- ernment;

(vii) investment or deposit in any Government com- pany as defined in section 617 of the Companies Act, 1936; i of lose.

(viii) deposits with or investment In any bonds Issued by a financial corporation which is engaged In providing long-term finance for industrial development In India and which is approved by the Central Government for the pur- poses of clause (viii) of sub-section (1) of section 86;

(ix) deposits with or investment in any 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 Cen- t r al Government for the purposes of clause (viii) of sub- section (1) of section 36;

(x) investment in immovable property.

Explanation.—"Immovable property" does not include any machinery or plant (other than machinery or plant installed in a building for the convenient occupation of the building) even though attached to, or permanently fasten- ed to anything attached to, the earth.'.

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

(a) in sub-section (1),—

Amend- ment of auction 18.

(i) clause (bb) shall be omitted with effect frnm the 1st day of April, 1984;

(ii) for clause (d), the following clause shall be substituted, namely: —

"(<*) 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—

({) any funds of the trust or institution are invested or deposited qfter the 28th day of February, 1983. otherwise

than In any one or more of the forms or modes specifle in sub-section (5) of section 11; or

(ii) any funds of the trust or institution invested c deposited before the 1st day of March, 1983 otherwis than in any one or more of the forms or modes specific in sub-section (5) of section 11 continue to remain s invested or deposited after the 30th day of Novembei 1983; or

1 of 1966.

(lii) any shares in a company (not being a Govern ment company as defined in section 617 of the Companie Act, 1956 or a corporation established by or under : Central, State or Provincial Act) are held by the true' or institution after the 30th day of November, 1983:

Provided that nothing in this clause shall apply in rela tion to—

(i) any assets held by the trust or institution where such assets form part of the corpus of the trust or insti- tution as on the 1st day of June, 1973 and such assets were not purchased by the trust or institution oi acquired by it by conversion of, or in exchange for, any other asset;

(ii) any assets (being debentures issued by, or on behalf of, any company or corporation) acquired by the trust or institution before the 1st day of March, 1989;

(in) any funds representing the profits and gains of business, being profits and gains of any previous year relevant to the assessment year commencing on the 1st day of April, 1984 or any subsequent assessment

year.

Explanation,—Where the trust or institution has any other income in addition to profits and gains of business, the provisions of clause (iii) of this proviso shall not apply unless the trust or institution main- tains separate books of account In respect of such business.";

(b) in sub-section (2), In the opening portion, for the words, brackets and letter "provisions of clause (c)" the words, brackets and letters "provisions of clause (c) and clause (d)" shall be sub- stituted;

(c) In sub-section (4), In the opening portion, for the words ", in a case where", the words, brackets and letter "but without preiudice 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.

Amend,

ment of

section 16.

8. In section 16 of the Income-tax Act, in clause (i), for the words "flvp thousand rupees", the words "six thousand rupees" shall be substituted with effect from the 1st day of April, 1984.

Amend,

mmt of

"cti

9. In section 24 of the Income-tax Act, in sub-section (1), to clause (vi) the following Explanation shall be added with effect from the 1st day of April, 1984, namely:^

r4 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT I L-

"Explanation.—Where the property has been acquired or con- structed 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 pre- vious year and for each of the four immediately Succeeding previous years;".

10. In section 82 of the Income-tax Act, in sub-section (1), with effect om the 1st day of April, 1984,—

Amend- ment of section 32.

(a) in clause (ii), in the first proviso, for the words "seven hundred and fifty rupees", the words "five thousand rupees" shall be BUbstituted;

(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 purposes of clause (ii) of sub-section (1);" shall lie omitted;

(c) in clause (v), the words, brackets and figures "but any such aum shall not be deductible in determining the written down value for the purposes of clause (ii);" shall be omitted.

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

(a) in sub-section (2),—

(i) after clause (b) 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 1st 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 Cen- tral Government.";

(ii) in the Explanation, for the words, brackets, figures and letter "this sub-section and sub-sections (2B) and (4)", the words, brackets, figures and letters "this sub-section and sub-sections (2B), (2C) and (4)" shall be substituted with effect from the 1st day of June, 1983;

(b) after sub-section (2B), 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 aft^r

BW\ 1] THE GAZETTE OF INDIA EXTRAORDINARY i3

the 31st day of May, 1983 in any industrial undertaking 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-section (1) shall 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.'.

Amend- ment of section 35.

12. Infection 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, 1964.

Amend- ment of section 35B.

13. In section 35B of the Income-tax Act, in sub-section (1), in clause (a), after the words, figures and letters "alter the 29th day of February, 1968", the words, figures and letters "but before the 1st day of March, 1983" shall be inserted.

14. In section 35C of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 1984,—

Amend- ment of section SBC.

(a) in clause (a), the words "a sum equal to one and one-fifth times" shall be omitted;

(b) in the Explanation, for the words "expenditure with refer- ence 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 35CC of the Income-tax Act, in sub-section (1), after the proviso, the following proviso shall be inserted, namely: —

Amend- ment of section 3BCC.

"Provided further that the prescribed authority shall not ap- prove any programme unless such programme is a programme fall- ing within any such class or category of programmes of rural deve- lopment as may be specified by the Central Government in this behalf.",

16. In section 36CCA of the Income-tax Act,—

Amend- ment of section 35CCA.

(a) in sub-section (1),—

(i) in clause (b), the word "or" shall be added at the end;

(ii) after clause (b), the following clause shall be inserted, namely: —

" (c) to a rural development fund set up and notified by the Central Government in this behalf,";

(b) for sub-section (2), the following sub-sections shall be sub- stituted, namely: —

"(2) The deduction under clause (a) of sub-section (1) shall not be allowed in respect of expenditure by way of payment of

16 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT I t-

any sum to any association or institution referred to in the said clause unless the assessee furnishes a certificate from such asso- ciation or institution to the effect that—

(o) the programme of rural development had been approved by the prescribed authority before the 1st day of March, 1983; and

(b) where such payment is made after the 28th day of February, 1983, such programme involves work by way of construction of any building or other structure (whether for use as a dispensary, school, training or welfare centre, workshop or for any other purpose) 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 the 1st day of March, 1983.

(2A) The deduction under clause (b) of sub-section (I) 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—

(a) the prescribed authority had approved the association

or Institution before the 1st day of March, 1983; and

(b) the training of persons for implementing any pro- gramme of rural development had been started by the asso- ciation or institution before the 1st day of March, 1983.

(2B) No certificate of the nature referred to in sub-section (2) or sub-section (2A) shall be issued by any association or institution unless such association or institution has obtained from the prescribed authority authorisation in writing to issue csrtifl- cates of such nature.".

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

Amend, ment of section 87.

(a) hi sub-section (2A),-~

(i) for clauses (Hi) and (lv), the following shall be sub-

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

"(Hi) on the balance of the profits at the rate and gains of the business or profes- of I per sion (computed in the manner aforesaid) cent., so, however, that the allowance shall in no case exceed Rs. 50,000:";

(ii) the Explanation shall be numbered and shall be deemed to have been numbered with effect from the 1st day of April, 1976 as Explanation 1 and after Explanation 1 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:—

'Explanation 2.—For the removal of doubts, it is hereby declared that for the purposes of this sub-section and sub- section (2B), as it stood before the 1st day of April, 1977,

SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY ij

"entertainment expenditure" includes expenditure on provi- sion of hospitality of every kind by the assessee to any per- son, whether by way of provision of food or beverages or In any other manner whatsoever and whether or not such pro- vision 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 the assessee to his em- ployees 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 1st day of April, 1984, namely: —

'(3A) Notwithstanding anything contained in sub-section (1), where the expenditure or, as the case may be, the aggregate expenditure incurred by an assessee on any one or more of the items specified in sub-section (3B) exceeds one hundred thousand rupees, twenty per cent, of such excess shall not be allowed as deduction in computing the income chargeable under the head "Profits and gains of business or profession".

(3B) The expenditure referred to in sub-section (3A) is that

incurred on—

(!) advertisement, publicity and sales promotion; or

(ii) running and maintenance of aircraft and motor

cars; or

(Hi) payments made to hotels.

'Explanation,—For the purposes of sub-sections (3A) and

(3B),~

(a) the expenditure specified in clause (i) to clause (III)

of sub-section (3B) shall be the aggregate amount of expen- diture Incurred by the assessee as reduced by so much of such expenditure as is not allowed under any other provision of this Act;

(b) expenditure on advertisement, publicity and salei promotion 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,—

(i) expenditure incurred on chartering any aircraft and expenditure on hire charges for engaging cars plied for hire;

(ii) conveyance allowance paid to employees and, where the assessee 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 & domestic company as denned in clause (2) of section 80B, or a person (other than a company) who is resident in India in respect of expenditure incurred wholly and exclusively on—

(i) advertiaement, publicity and sales promotion outside India in respect of the goods, services or facilities which the assesaee deals in or provides in the course of his business;

(ii) running and maintenance of motor cars in any branch, office or agency maintained outside India for the promotion of the sale outside India of such goods, services or facilities.

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

(i) in the case of an assessee engaged in the business of operation of aircraft, in respect of expenditure incurred on running and maintenance of such aircraft;

(ii) in the case of an assessee engaged in the business of running motor cars on hire, in respect of expenditure in- curred in running and maintenance of such motor cars.';

(c) after sub-section (4), the following sub-section shall be in- serted 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 declared 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 (including any employee or, where the assessee is a company, also any director of, or the holder of any other office in, the com- pany) on tour or visit to the place at which such accommodation is situated, is accommodation in the nature of a guest house within the meaning of sub-section (4).".

18. In the Income-tax Act, after section 43A, the following section shall be inserted with effect from the 1st day of April, 1984, namely: —

Insertion of new section 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 assessee by way of tax or duty Certain deduc- tions to be only on actual payment.

under any law for the time being in force, or

(b) any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or 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.

Explanation.—For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (a) or clause (b) of this section is allowed in computing the income referred to in section 28 of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 1983 or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be en- titled to any deduction under this section in respect of such sum in computing the income of the previous year in which the aum is actually paid by him.".

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

day of June, 1983,—

Amend, ment of lection 44D.

(a) in clauses (a) and (b), 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";

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

clause shall be inserted, namely:—

" (c) no deduction in respect of any expenditure or allowance shall be allowed under any of the said 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 Explanation, in clause (d), 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 Indian concern".

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

(a) in sub-section (1),—

Amend- ment of section ME.

(i) after clause (b) and before Explanation 1, the following

proviso shall be inserted, namely:—

"Provided that in a case where the original asset Is transferred after the 28th day of February, 1983, the provi- sions 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.";

(n) 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), the following clause shall be inserted, namely: —

" (c) in a case where the original asset is transferred after the 28th day of February, 1983, any of the follow- ing 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.

(U) special series of units of the Unit Trust of India established under the Unit Trust of India Act. 1963, which the Central Government may, bv noti- fication in the Official Gazette, specify in this be- half;

(Hi) such National Rural Development Bonds as have been notified under clause (b) of Erplawn- twn 1 or as may be notified in this behalf under this clause by the Central Government;

L of 1956.

(iv) such debentures issued by the Housing and Urban Development Corporation Limited (a Government company as defined in section 617 of the Companies Act, 1956), as the Central Govern- ment may, by notification in the Official Gazette, specify in this behalf.";

(b) in sub-section (2), the Explanation shall be numbered as Explanation 1 and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely: —

"Explanation 2.—In a case where the original asset is trans- ferred after the 28th day of February, 1983 and the aasessee invests the whole or any part of the net consideration in respect of the original asset in any new asset and such assess.ee 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 clause (Uia), after sub-clause (b), the following sub-clause 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 (1) by way of initial subscription thereto;".

21. In section 80C of the Income-tax Act, with effect from the 1st day of April, 1984,—

Amend- ment of section 80C.

(a) in sub-section (2),—

(i) for clause (b) (occurring before the Explanation), the following clause shall be substituted, namely: —

"(b) where the assessee is a Hindu undivided family,—

(i) any sums paid in the previous year by the

assessee out of its income chargeable to tax—

(1) 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 (iu) of clause (a)f where such contribution is to an account standing in the name of any member of the family; or

(ii) any sums deposited in the previous year by the assessee out of its 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 (b), for the word, brackets and letter "clause (b)", the words, brackets, figure and letter "sub-clause (i) of clause (b)" shall be substituted;

(b) in sub-Section (4), for clauses (i) to (iw), the following clauses shall be substituted, namely:—

" (I) 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 (g) of sub-section (2), forty thousand rupees.".

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

Amend- ment of section 80QG.

"Provided that nothing in this Section shall apply to an assessee in any case where any residential accommodation is,—

(i) 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 hia business or profession; or

(ii) owned by the assesses at any other place, being accommodation In the occupation of the assessee, the value of which Is to be determined under clause (i) or, as the case may be, clause (ii) of sub-section (2) of section 23.".

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

(a) In clause (b), 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.";

(b) after clause (c), the following clause shall be inserted,

namely: —

" (d) any sum paid by the assessee in the previous year to a rural development fund set up and notified by the Central Government for the purposes of clause (c) of sub-section (I) of section 35CCA.".

14 of 1982, 24. In the Income-tax Act, after section 80HHB (directed to be insert- ed by section 18 of the Finance Act, 1982), the following section shall be Inserted, namely: —

Insertion of new section 80 HHC.

Deduc- tion in respect of ex- port turn- over,

'80HHC. (1) Where the assessee, being an Indian company or a person (other than a company) who is resident in India, exports out of India during the previous year relevant to an assessment year any goods or merchandise to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, the following deductions, namely: —

i

(a) a deduction of an amount equal to one per cent, of the export turnover of such goods or merchandise during the pre- vious year; and

(b) a deduction of an amount equal to five per cent, of the amount by which the export turnover of such goods or merchan- dise during the previous year exceeds the export turnover of such 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 (b)] If the sale proceeds of such goods or merchandise exported out of India are receivable by the assessee in convertible foreign exchange.

(b) The goods or merchandise referred to in clause (a) are the

following, namely: —

(i) agricultural primary commodities, not being produce of

plantations;

(ii) mineral oil;

(Hi) minerals and ores; and

(iv) such other goods or merchandise as the Central Gov- ernment may, by notification in the Official Gazette, specify In this behalf.

(3) No deduction under clause (b) of sub-section (1) shall be allowed unless the assessee 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 Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973, and any rules made thereunder;

(b) "export turnover" means the sale proceeds of any goods or merchandise exported out of India, but does not include freight or insurance attributable to the transport of the goods or merchandise beyond the customs station as defined in the Customs Act, 1962.*.

02 of IP 12.

25. In section 80-1 of the Income-tax Act, with effect from the 1st lay of April, 1984,—

Amend- ment of section 80-L (a) In sub-section (I),—

(1) 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 havt 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), the following sub-section shall be inserted, namely: —

"(4A) This section applies to the business of repairs to ocean-going vessels or other powered craft which fulfils all the following conditions, namely: —

(i) the business is not formed by the splitting up, or the re-construction, of a business already in existence;

(ii) it 1B not formed by the transfer to a new business of machinery or plant previously used for any purpose;

(Hi) 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

(iu) it Is for the time being approved for the purposes

of this sub-section by the Central Government.";

(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 assesaee 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" shall be inserted;

(e) in sub-section (8), after the words "operation of the ship", wherever they occur, the words "or the business of repairs to ocean- going vessels or other powered craft" shall be inserted;

(f) In 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. In section 80JJ of the Income-tax Act, with effect from the 1st day

of April, 1984,—

Amend- ment of section 80JJ.

(a) in clause (b), for the word "one-fifth", the words "fifteen

per cent." shall be substituted;

(b) in the proviso, for the words "seventy-five thousand rupees", the words "one hundred thousand rupees" shall be substi- tuted.

27. Section 80JJA of the Income-tax Act shall be omitted with effect

from the 1st day of April, 1984.

Omission of section 80JJA.

28. In section SOL of the Income-tax Act, in sub-section (1), with

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

Amend, ment of section 80L.

(o) after clause (vi), 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;";

(b) for the portion beginning with the words "a deduction as specified hereunder" and ending with the words "shall not exceed

14 of 1982.

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.—

(2) 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 the 1st day of April, 1984-

OmisBion of section 80MM.

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

Amend- ment of flection 80P.

"(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 co-operative society, being a society engaged in the business of supplying milk, oilseeds, fruits or vegetables, •as the case may be; or

(ii) the Government or a local authority; or

1 at 1956.

(iii) 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 corpora- tion 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 o£ such business;".

Amend- ment of section SOB.

31. In section 80R of the Income-tax Act, for the words "such other association 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 substi- tuted with effect from the 1st day of April, 1984.

32. In. the Income-tax Act, after Chapter VIA, the following Chapter

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

Insertion otnow Chapter VII.

"CHAPTER VIB

RESTRICTION ON CEHTAIN DEDUCTIONS IN THE CASE OF COMPANIES

Restriction on. certain deduc- tions In tho case of com- panlOT.

80WA. (1) Notwithstanding anything contained in any other provision of this Act, where in the case of an assessee being a company, the amount or, as the case 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 pre-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 specifi- ed in sub-section (3), to seventy per cent, of the pre-Incentive total income.

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

following, namely: —

(i) clause (Hi) of sub-section (1) of section 35;

(ii) clause (ia) of sub-section (2) 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 (2B) of section 35, to the extent to which the deduction under the said sub-section exceeds the expenditure incurred by the assessee;

(v) section 35C;

(vi) section 35CC;

(vli) section 35CCA;

(viii) section 35CCB;

(ix) clause (ii) of sub-section (2) of section 33;

(x) clause (ii) of sub-section (2) of section 33A;

(xi) sub-section (1), or, as the case may be, sub-section (1),

read with clause (1) of sub-section (2) of section 33A;

(xii) clause (ii) of sub-section (3) of section 32A;

(xiii) sub-section (1), or, as the case may be, sub-section

(1), read with clause (i) of sub-section (3) of section 32A;

(xiv) section 80G;

(xv) clause (b) of subjection" (2) of section 80GGA;

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

(xvii) section 80HH;

(xviii) section 80HHA;

(xix) section 80HHB;

(xx) section 80HHC;

(xxi) section 80-1;

(xxii) section 80J;

(xxiii) section 80JJ; (xxiv) section 80K; (xxv) section 80M; (xxvi) section 80N; (xxvii) section 80O; and (xannii) section 80QQ.

(3) The deduction under the provisions specified in sub-section (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-section (2); and

(b) if no deduction is allowable under the provision specified in the said clause (i) or the deduction allowable under that pro- vision is less than seventy per cent, of the pre-incentive total income, deduction shall next be allowed under the provision specified in clause (u) of sub-section (2); and

(c) if no deduction is allowable under the provision specified in the said clause (it), or the deduction under that provision to- gether 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 (iii) 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 which full deduction cannot be allowed in the assessment year in respect of any provision specified in sub- section (2), by virtue only of the restriction under eub-aection (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 assessee under the said provision for the next following assessment year and be deemed to be part of the deduction admissible to the assessee under the said provision for that year or, it 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. Section 89A of the Income-tax Act shall be omitted.

Omission of section 89A.

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

Amend- ment of section 109.

'Explanation.—In this clause and in sub-clause (.3) of clause (Hi), the expression "provision of technical know-how" means,—

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

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

(in) the use of any patent, invention, model, design, secret formula or process or similar property;

(iv) the imparting of any Information concerning Industrial, commercial or scientific knowledge, experience or skill;'.

35. In section 115A of the Income-tax Act, In sub-section (1), with effect from the 1st day of June, 1983,—

Amend- ment of section 115A.

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

!

" (aa) interest received from Government or an Indian con- cern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency; or";

(b) for clause (b), the following clause shall be substituted, namely:—

|

"(b) royalty or fees for technical services received from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or the Indian concern after the 31st day of March, 1976, and where such agree- ment is with an Indian concern, such agreement is approved by the Central Government,";

(c) after clause (i), 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.;";

(d) in clause (iv), for the words, brackets and letter "and clause (b)", the words, brackets and letters ", clause (an) and clause (b)" shall be substituted;

(e) in the Explanation, after clause (b), the following clause shall be Inserted, namely: —

'(bb) "foreign currency" shall have the same meaning aa in the Explanation below Item (g) of sub-clause; (w) of clause (75) of section 10;'.

36. In the Income-tax Act, after Chapter XII, the following Chapter shall be inserted with effect from the 1st day of June, 1983, namely: —

•CHAPTER XII-A

Insertion of new Chapter xn-A.

SPECIAI, PROVISIONS RELATING TO CERTAIN INCOMES OF NON-RESIDENTS

115C. In this Chapter, unless the context otherwise requires,— Defini- tions.

fa) "convertible foreifffl exchange" means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Regulation Act, 1973, and finy rules msde thereunder;

46 of 18T3.

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

(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;

(f) "specified asset" means any of the following assets, namely: —

(i) shares in an Indian company;

(ii) debentures issued by an Indian company which is not a 1 of 1956.

private company as denned in the Companies Act, 1.956;

(iii) deposits with an Indian company which is not a private 1 of 1956.

company as denned in the Companies Act, 1956;

(iu) any security of the Central Government as defined in clause (2) of section 2 of the Public Debt Act, 1944;

18 of 1944.

(ui such other assets as the Central Government may specify in this behalf by notification in the Official Gazette.

115D. (I) No deduction in respect of any expenditure or allow- ance shall be allowed under any provision of this Act in computing the investment income of a non-resident Indian,

(2) Where in the case of an assessee, being 'a non-resident Indian,—

Special provision for com- putation of total income of non- residents.

(a) the gross total income consists only of investment income or income by way of long-term capital gains or both, no deduction shall be allowed to the assessee \mder Chapter VIA;

(h) the gross total income includes any income referred to in clause (a), the gross total income shall be reduced by the amount of such income and the deductions under Chapter VIA shall be allowed as if the gross total income as so reduced were the gross total in- come of the assessee.

Tax on invest- ment income and long- term capital gains.

115E. (J) Where the total income of an assessee, 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 his total income shall be the amount of income-tax calculated on such total income at the rate of twenty per cent, of such income as increased by a surcharge for purposes of the Union at the rate of twelve and a half per cent, of ffiich income-tax,

(2) Where the total income of an assesses, being a non-resident Indian includes any income of the nature referred to in sub-section (1), the tax payable by him on his total income shall be—

(t) the aggregate of the income-tax and surcharge payable by him in accordance with the provisions of sub-section (I) on income of the nature referred tq in that sub-section included in the total income; plus

(it) the amount of income-tax chargeable on the total income as reduced by the amount of income of the nature referred to in sub- section (I), had the total income so reduced been his total income.

Capital gains on transfer of foreign exchange assets not to be charged In certain cases.

115F. (2) Where, in the case of an assessee being a non-resident 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 assessee 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 (4B)t of section 10 (such specified asset or such deposit in the Account aforesaid or such savings certificates being hereafter in this section referred to as the new asset), the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,—

(a) if the cost of the new asset ig not less than the net considera- tion in respect of the original asset, the whole of such capital gain shall not be charged under section 45;

(b) 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 as the cost of acquisition of the new asset bears to the net consideration shall not be charged under section 45.

Explanation.—For the purposes of this sub-section,—

(i) "cost", in relation to any new asset, being a deposit referred

to in clause (4A) of section 10 or referred to in sub-clause (in), or specified under sub-clause (v), of clause (/) of section 115C, means the amount of such deposit;

(ii) "net consideration", in relation to the transfer of the original asset, means the full value of the consideration received or accruing as a result of the transfer of such asset aa reduced by any expendi- ture incurred wholly and exclusively Jn connection with such transfer.

(2) Where the new asset is transferred or converted (otherwise than by transfer) into money, within a period of three years from the date of its acquisition, the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the ba"is of the cost of such new asset as provided in clause (a) or, as the case may bt\ clause (b) of 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 130 a return of his income If—•

Return of income not to be filed in certain cases.

(a) his total income in respect of which he is assessable under this Act during the previous year consisted only of investment in- come or income by way of long-term capital gains or both; and

(b) the tax deductible at source under the provisions of Chap-

ter XVII-B has been deducted from such income.

Benefit iTnder Chapter to be available in certain cases even after the assessee becomes resident.

115H. Where a person, who is a non-resident Indian in any- previous year, becomes assessable as resident in India in respect of the total income of any subsequent year, he may furnish to the Income- tax Officer a declaration in writing along with his return of income under section 139 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 to the investment income derived from any foreign exchange asset being an asset of the nature referred to in sub-clause (ii) or sub-clause (in) or sub-clause (w) or sub-clause (v) of clause (f) of section 115C; 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 subsequent assessment year until the transfer or conversion (otherwise than by transfer) Into money of such assets.

Chapter not to apply If the assessee so chooses. 115-1. 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 year and if he does so, the provisions of this 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 section 164 of the Income-tax Act, with effect from the 1st day

of April, 1984,—

Amend- ment of section 164.

(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 (4A) 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 (4A) of section 11," shall be inserted,

38. In section 280ZA of the Income-tax Act, with effect from the lsi

day of April, 1984,—

Amend- ment of section 280ZA.

(a) in sub-section (2), for the portion beginning with the words "arising from the transfer" and ending with the words "shifting its machinery", the following shall be substituted, namely: —

"arising from the transfer of capital assets, being machinery or plant or buildings or lands or any rights in buildings 01 lands used for the purposes of the business of the said under- taking in the urban area, effected In the course of or in conse- quence of the shifting of such industrial undertaking namely: —

(a) the amount of expenditure Incurred by the com

pany In—

(i) purchasing new machinery or plant for the purposes of the business of the company in the area t< which the undertaking Is shifted;

(U) acquiring lands or constructing building:

for the purposes of Its business in the said area; and

(in) shifting Its machinery";

(b) In sub-section (4), for the portion beginning w i th t he words "Where a capital 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 com- pany In the area to which the undertaking is shifted or building or land, or any right in building or land, acquired, or as t he case may be, constructed in the said area, is transferred by the company within a period of five years from the date of purchase, acquisition or, as the case may be, the date of completion of construc- tion".

39. The following amendments (being amendments of a consequen- tial nature) shall be made in t he Income-tax Act, namely: —

Conse- quential amend-

(a) in sub-section (3) of section 11, for clause (b), the follow- ing clause shall be substituted, namely: —

nents to ertaln ections.

" (b) ceases to remain invested or deposited in any of the forms or modes specified in sub-section (5), or";

(b) in sub-section (3) of section 80A—

(i) after the words, figures and letters "or section 80HHB", the words, figures and letters "or section 80HHC" shall be in- serted;

(ii) the words, figures and letters "or section 80JJA" shall be omitted with effect from the 1st day of April, 1984;

(c) in sub-section (5) of section 80G, to clause (i), the following proviso shall be added with effect from the 1st day of April, 1984, namely: —

"Provided that w h e re an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income u n d er the provisions of section 11 shall not apply in relation to such income if,—

(a) t he institution or fund maintains separate books of account in respect of such business;

(b) the donations m a de to the institution or fund are not used by it, directly or indirectly, for the purposes of such busi- ness; and

(c) the institution or fund issues to the person making the donation a certificate to t he effect that it maintains sepa- r a te books of account in respect of such business and t h at t he donations received by it will not be used, directly or indirectly, for the purposes of such business;";

(d) in sub-section (3) of section 80P—

(i) after the words, figures and letters "or section 80HHB", the words, figures and letters "or section 80HHC" shall be In- serted;

(ii) the words, figures and letters "or section 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 80JJ and section BOJJA", the words, figures and letters "section 80J and section 8OJJ" shall be substituted with effect from the 1st day of April, 1984.

Wealth-tax

13 of i960. 27 of 1957.

Revival Of levy of wealth- tax in the case of closely- held companies.

40. (1) Notwithstanding anything contained in section 13 of the Finance Act, 1960, relating to exemption of companies from levy of wealth-tax under the Wealth-tax Act, 1957 (hereinafter referred to as the Wealth-tax Act), wealth-tax shall be charged under the Wealth-tax Act for every assessment year commencing on and from the 1st day of April, 1984 in respect of the net wealth on the corresponding valuation date of every company, not being a company in which the public are substantially interested, at the rate of two per cent, of such net wealth.

Explanation.—For the purposes of this sub-section, "company In which the public are substantially interested" shall have the meaning assigned to it in clause (18) of section 2 of the Income-tax Act.

(2) For the purposes of sub-section (2), the net wealth of a com- pany shall be the amount by which the aggregate value of all the assets referred to in sub-section (3), wherever located, belonging to the com- pany on the valuation date is in excess of the aggregate value of all the debts owed by the company on the valuation date which are secured on, or which have been incurred in relation to, the said assets:

Provided that where any debt secured on any asset belonging to the assessee is incurred for, or enures to, the benefit of any other person, or is not represented by any asset belonging to the assessee, the value of such debt shall not be taken into account in computing the net wealth of the assessee.

(3) The assets referred to in sub-section (2) shall be the following, namely: —

(i) gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals;

(ii) precious or semi-precious stones whether or not set in any furniture, utensil or other article or worked or sewn into any wear- ing apparel;

(Hi) ornaments made of gold, silver, platinum or any other pre- cious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not worked or sewn into any wearing apparel; (iv) utensils made of gold, silver, platinum or any other pre- cious metal or any alloy containing one or more of such precious metals;

(v) land other than agricultural land; (vi) building or land appurtenant thereto, other than building or part thereof used by the assessee as factory, godown, warehouse, hotel or office for the purposes of its business or as residential

accommodation for its employees or as a hospital, creche, school, can- teen, library, recreation"\ centre, shelter, rest-room or lunch room mainly for the welfarr ox its employees and the land appurtenant to such building or part:

Provided that each such employee is an employee whose income (exclusive of the value of all benefits or amenities not provided for by way of monetary payment) chargeable under the head "Salaries" under the Income-tax Act does not exceed eighteen thousand rupees;

(vii) motor-cars; and

(viii) any other asset which is acquired or represented by a debt secured on any one or more of the assets referred to in clause (i) to . clause (vii).

:

(4) The value of any asset specified in sub-section (3) shall, sub- ject to the provisions of sub-section (3) of section 7 of the Wealth-tax Act, be estimated to be the price which, in the opinion of the Wealth-tax Officer, it would fetch if sold in the open market on the valuation date.

(5) For the purposes of the levy of wealth-tax under the Wealth-tax

Act, in pursuance of the provisions of this section,—

(a) section 5, clause (a) of sub-section (2) of section 7 and clause (d) of section 45 of that Act and Part II of Schedule I to that Act shall not apply and shall have no effect,

(b) the remaining provisions of that Act shall be construed so

as to be in conformity with the provisions of this section.

(6) Nothing in this section shall apply to any institution, associa- tion or body, whether incorporated or not and whether Indian or non- Indian, which the Central Government may, having regard to the nature and object of such institution, association or body, specify by notification in the Official Gazette and every notification issued under this sub-section shall be laid, as soon as may be after it is issued, before each House of Parliament.

(7) Subject to the provisions of sub-section (5), this section shall

be construed as one with the Wealth-tax Act.

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

(a) for clause (xa), the following clause shall be substituted

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

Amend- ment of flrec- tlon 5.

"(xa) in the case of an assessee who is carrying on a pro- fession (being legal, medical, engineering or architectural pro- fession or the profession of accountancy or such other profes- sion as Is notified by the Central Government In this behalf) and who regularly maintains books of account on the cash sys- tem of accounting, the amount of any fee due to him In respect of the services rendered by him in such professional capacity;";

(b) for clause (xvic) [directed to be inserted by sub-clause (v)

14 of 1982.

of clause (a) of section 34 of the Finance Act, 1982], the following clauses shall be substituted with effect from the 1st day of April, 19&4, namely: —

'(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,—

(a) a person shall be deemed to be of Indian origin if h€

or either of his parents or any of his grand-parents was born in undivided India;

(b) an individual shall be deemed to be not resident in India during the year ending on the valuation date if in respect of that year the individual is not resident in India within the meaning of the Income-tax Act;

(c) "foreign exchange asset" shall have the meaning assigned to it in clause (b) of section 115C of the Income- tax Act;

(xvica) in the case of an individual, being a citizen of India or a person of Indian origin who is resident in India, during the year ending on the valuation date, any foreign exchange asset [being an asset referred to in sub-clause (ii) or sub-clause (in) or sub-clause (iv) or sub-clause (v) of clause (/) of section 115C of the Income-tax Act], where such asset was not includable by virtue of the provisions of clause (xvic) in computing his net wealth on any earlier valuation date.

Explanation.—For the purposes of this clause,—

(a) an individual shall be deemed to be resident in India during the year ending on the valuation date if in respect of that year the individual is resident in India within the meaning of the Income-tax Act;

(b) the expressions "person of Indian origin" and "foreign exchange asset" shall have the same meanings as in the Explanation below clause (xvic);';

(c) in clause (xuid) [directed to be inserted by sub-clause (v)

14 of 1982.

of clause (a) of section 34 of the Finance Act, 1982], for the words "such Capital Investment Bonds", the words "in the case of an in- dividual or a Hindu undivided family, such Capital Investment Bonds" shall be substituted;

(d) after clause (xviii), the following clause uhall be inserted,

namely: —

" (xviiia) any property being a medal, trophy or an award in kind received by the assessee for any attainment, work or contribution in any field if such medal, trophy or award in kind is received by the assessee from Government or from a Univer- sity established by law or an institution affiliated to such Uni- versity or from any such institution, association or body as is approved for the purposes of this clause by the Central Govern- ment,

Explanation.—Any approval for the purposes of this clause may be given by the Central Government so as to have effect from a date not earlier than the "1st day of April, 1983;".

G if Utax

18 of 1958.

42. In section 5 of the Gift-tax Act, 1958, in sub-section (1)~

Amend, ment of pectlqn 5, 14 of 1982,

(a) In clause (iid) [directed to be inserted by clause (a) of. section 38 of the Finance Act, 1982], for the portion beginning with the words "savings certifies,^" and ending with i 3G] THE GAZETTE OF INDIA EXTRAORDINARY ["PART I t-

made thereunder", the following shall be substituted with effect from the 1st day of April, 1984, namely: —

"any foreign exchange asset as denned in clause (b) or section 115C of the Income-tax Act";

(b) in clause (iiic) [directed to be inserted by cu*

14 of 1982.

section 38 of the Finance Act, 1982], for the words "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 such Capital Investment Bonds" shall be substituted.

Interest-tax

45 of 1974.

43. In section 4 of the Interest-tax Act, 1974, the following proviso shall be inserted at the end, namely: —

Amend,

ment of

section

4.

"Provided that the rate at which interest-tax snail be charged in respect of any chargeable interest accruing or arising after the 31st day of March, 1983 shall be three and a half per cent, of sucE chargeable interest.".

CHAPTER IV

INDIRECT TAXES

Customs

44. The Customs Tariff Act, 1975 (hereinafter referred to as the Cus- Amend- ment of Act 51 of 1973.

toms Tariff Act), shall be amended in the manner specified in the Second Schedule.

Auxiliary

duties of

customs.

45. (1) In the c^se of goods mentioned in the First Schedule to the Customs Tariff Act, or in that Schedule, as amended from time to time, there shall be levied and collected as an auxiliary duty of customs an amount equal to fifty per cent, of the value of the goods as determined in accordance with the provisions of section 14 of the Customs Act, 1962 (hereinafter referred to as the Customs Act).

(2) Sub-section (2) shall cease to have effect after the ai&t day of March, 1984, except as respects things done or omitted to be done be- ore such cesser; and section 6 of the General Clauses Act, 1897, shall apply upon such cesser as if the said sub-section had then been repea- led by a Central Act.

(3) The auxiliary duties of customs referred to in sub-section (I) shall be in addition to any duties of customs chargeable on such goods under the Customs Act, or any other law for the time being in force.

(4) The provisions of the Customs Act and the rules and regulations made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the auxiliary duties of customs leviable under this section In respect of any goods as fhey apply in relation to the levy and collec- tion of the duties of customs on such goods under that Act or those rules and regulations, as the case may be.

Amend,

ment of

section 2.

46. In section 2 of the Customs Act, in clause (12), after the words "a customs port", the words, brackets and letters ", and includes a place appointed under clause (aa) of that section to be an- inland container depot" shall be inserted.

47. In section 7 of the Customs Act, aftrr clause (a), the following

riause shall be inserted, namely: —

Amend, ment of Section 7.

"(da) the places which alone shall b VSEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3y

48. In section 23 of the Customs Act, in sub-section (1),—

(a) for the words "Where it is shown", the words and figure; "Without prejudice to the provisions of section 13, where it is shown" shall be substituted;

(b) after the words "have been lost", the brackets and words

" (otherwise than as a result of pilferage)" shall be inserted.

49. In section 25 of the Customs Act, after sub-section (2), the fol- lowing sub-section and Explanation shall be inserted, namely: —

Amend- ment of section 25.

'(3) An exemption under sub-section (1) or sub-section (2) in respect of any goods from any part of the duty of customs leviable thereon (the duty of customs leviable thereon being hereinafter referred to as the statutory duty) may be granted by providing for the levy of a duty on such goods at a rate expressed in a forma or method different from the form or method in which the statutory duty is leviable and any exemption granted in relation to any goods in the manner provided in this sub-section shall have effect subject to the condition that the duty of customs chargeable on such goods shall in no case exceed the statutory duty.

Explanation.—"Form or method", in relation to a rate of duty of customs, means the basis, namely, valuation, weight, number, length, area, volume or other measure with reference to which the duty is leviable.'.

50. Section 61 of the Customs Act shall be numbered as sub-section (I) thereof, and—

Amend- ment of section 61.

(a) in sub-section (1), as so numbered, for the words "three years" and "one year", wherever they occur [except the second place at which the words "one year" occur in sub-clause (n) of that sub-section], the words "one year" and "three months" shall, respec- tively, be substituted and for the words "one year" at the second place where they occur in the said sub-clause (ii), the words "six months" shall be substituted;

(b) after sub-section (1) as so numbered, the Hollowing sub-

section shall be inserted, namely: —

"(2) Where any warehoused goods remain in a warehouse beyond the period of one year or three months specified 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 as 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, as the case may be, three months, till the date of the clearance of the goods from the warehouse.".

Amei ment of section 74, 51. In section 74 of the Customs Act, in sub-section (1), for the words "exported to any place outside India", the words and figures "entered for export and the proper officer makes an order permitting clearance and loading of the goods for exportation under section 51" shall be substituted.

Amend- ment of section 73.

52. In section 75 of the Customs Act, in sub-section (1), for the words "and exported to any place outside? India,", the words and figures ", being goods which have been entered for export and in respect of which an order permitting the clearance and loading thereof for expor- tation has been made under section 51 by the proper officer," shall be

substituted.

53. In section 76 of the Customs Act, in sub-section (1),—

(a) clause (a) shall be omitted;

Amend- ment of section 76.

(b) in clause (c), for the words "five rupees", the words "fifty

rupees" shall be substituted.

Excise

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

(hereinafter referred to as the Central Excises Act),—

Amend- ment of Act 1 of 1944.

(a) shall be amended in the manner specified in the Third

Schedule; and

(b) shall, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, be also amended in the manner specified in the Fourth Schedule.

55. (1) In the case of goods chargeable with a duty of excise under

Special duties of excise.

the Central Excises Act, 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 of 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 in the production or manufacture of such goods), there shall be levied and collected a special duty of excise equal to ten per cent, of the amount so chargeable on such goods.

10 of 1897.

(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1984, except as respects things done or omitted to be done before such cesser; and section 6 of the General Clauses Act, 1897, shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.

(3) The special duties of excise referred to in sub-section (1) shall be in addition to any duties of excise chargeable on such goods under the Central Excises Act, or any other law for the time being in force-

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

56. The Additional Duties of Excise (Goods of Special Importance) Act, 1957 (hereinafter referred to as the Additional Duties of Excise Act), shall be amended in the manner specified in the Fifth Schedule.

Amend- ment of Act 58 of 1957.

57. In section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, for sub-section (1), the following sub-section shall be substituted, namely: —

Amend- ment of Act 40 of 1978.

1 of 1944.

"(1) When goods of the description mentioned in the Schedule chargeable with a duty of excise under the Central Excises and Salt Act, 1944, 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 of duty of excise under the said Act on such goods equal to, any duty of excise under the aaid Act, or the additional duty under section 3 of the Customs

Tariff Act, 1975, already paid on the raw material used in the pro- duction or manufacture o£ such goods), are assessed to duty, there shall be levied and collected a duty of excise equal to fifteen per cent, of the total amount so chargeable on such goods.".

CHAPTER V

MISCELLANEOUS

58. In the First Schedule to the Indian Post Office Act, 1898, for the sub-heading "Parcels" and the entries thereunder, the following shall be substituted, namely: —

Amend- ment of Act 6 of 1898.

"Parcels

For a weight not exceeding five

hundred grams Rs. 3,00

For every five hundred grams or fraction thereof, exceeding five

¹ hundred grams Rs. 3.00.".

59. In the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974,—

(a) in section 3,—

Amend, ment of Act 38 of 1974.

(i) in sub-section (1), for the figures, letters and wordl "1st day of April, 1984", the figures, letters and words "1st day of April, 1986" shall be substituted;

(ii) in sub-section (3), for the words "seventy years", the words "sixty-five years" shall be substituted with effect from the 1st day of June, 1983;

(b) in section 4,—

(i) in sub-section (2), in clause (iv), for the words, figures and letters "and the assessment year commencing on the 1st day of April, 1983", the words, brackets, figures and letters "and every subsequent assessment year (not being an assessment year commencing on or after the 1st day of April, 1986)" shall be substituted;

(ii) in sub-section (3), after the words, brackets and figures "clause (24) of section ^", wherever they occur, the words, brackets, letters and figures "and in clause (c) of section 115C" shall be inserted with effect from the 1st day of June, 1983;

(c) in section 6, in sub-section (2), after the words, brackets and figures "clause (24) of section 2", at both the places where they occur, the words, brackets, letters and figures "and in clause (e) of section 115C" shall be inserted with effect from the 1st day of June, 1983;

(d) in section 8, in sub-section (1A), for clauses (i) and (ii), the following clauses shall be substituted with effect from the 1st day of June, 1983, namely: —

"(i) where such individual has attained the age of sixty-five years before the 1st day of April, 1983, on the 1st day of June, 1983; and

(ii) in any other case, on the first day of the financial year immediately succeeding the financial year in which such in- dividual attained sixty-five years of age.".

THE FIRST SCHEDULE

(See section 2)

PART I

INCOME-TAX AND SURCHARGE ON INCOME-TAX

Paragraph A

Sub-Paragraph I

In the case of every Individual or Hindu undivided family or un- registered firm or other association of persons or body of Individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (32) of section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies,—

Rates of income-tax

(1) where the total income doeg

Nil;

not exceed Rs. 15,000

(2) where the total income exceeds but does not exceed

30 per cent, of the amount by which the total income exceeds Rs. 15,000;

Rs. 15,000 Rs. 25,000

per

of the income

cent, total

the total income exceeds but does not exceed

the

(3) where Rs. 25,000 Rs. 30,000

Rs. 3,000 plus 34 amount by which 1 exceeds Rs. 25,000;

(4) where

per the

cent, total

the total income exceeds but does not exceed

of the Income Rs. 30,000 Rs. 50,000

Ra. 4,700 plus 40 amount by which exceeds Ra. 30,000;

(5) where the total income exceeds but does not exceed

of the Income

per the

cent, total

Rs. 50,000 Rs. 60,000

Rs. 12,700 plus 50 amount by which exceeds Rs. 50,000;

per

the total Income ex- 000 but does not exceed

of the Income

cent, total

;he

(6) where ceeds Ra. 60, Rs. 70,000

Rs. 17,700 plus 52.5 amount by which 1 exceeds Rs. 60,000;

per

the total Income ex- 300 but does not exceed

of the income

cent, total

the

(7) where ceeds Rs. 70,1 Rs. 85,000

Rs. 22,930 plus 55 amount by which exceeds Rs. 70,000;

Rs. 31,200 plus 57.1

(8) where the total income exceeds but doeg not exceed

^ent. of income

i per i total

Rs, 85,000 Rs. 1,00,000

the amount by which the exceeds Rs. 85,000;

(9) where the total income exceeds

per

of the income Rs. 1,00,000

cent, total

the

Rs. 39,823 plus 60 amount by which exceeds Rs. 1,00,000.

Surcharge on income-tax

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

Sub-Paragraph 11

In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1983 exceeds Rs. 15,000,—

Rates of income-tax

Nil;

(1) where the total income does

not exceed Rs. 8,000

(2) where ttie

but

exceeds exceed

total income : does not

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

Rs. 8,000 Ra. 15,000

per cent

(3) where

. of the income

the total

exceeds exceed

total income does not

the but

Rs. 1,540 plug 27 amount by which exceeds Rs. 15,000;

Rs. 15,000 Rs. 20,000

per cent.

(4) where

of the income

the total

exceeds exceed

total income does not

the but

Rs. 2,890 plus 35 amount by which exceeds Rs. 20,000;

Rs. 20,000 Rs. 25,000

per cent,

(5) where

of the income

the total

exceeds exceed

total income does not

the but

Rs. 4,640 plus 40 amount by which exceeds Rs. 25,000;

Rs. 25,000 Rs. 30,000

(6) where

of tne Income

per cent, the total

exceeds exceed

the but

total income does not

Rs. 6,640 plus 50 amount by which exceeds Rs. 30,000;

Rs. 30,000 Rs. 50,000

exceeds

(7) where the total income

per cent, the total

of the income

Rs. 30,000

Rs. 16,640 plus 60 amount by which exceeds Rs. 50,000:

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

(i) no income-tax shall be r payable on a total income no

exceeding Rs. 12,000;

(ii) where the total income exceeds Rs. 12,000 but does no exceed Rs. 17,610, the income-tax payable thereon shall not exeeei forty per cent, of the amount by which the total income exceed Rs. 12,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preced ing provisions of this Sub-Paragraph shall be increased by a surchargt for purposes of the Union calculated at the rate of ten per cent, of suet income-tax.

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

income;

the total

15 per cent, of

(1) where the total income does

not exceed Rs. 10,000

per

cent.

income exceeds not exceed

of the income

Rs. 1,500 plus 25 amount by which the total exceeds Rs. 10,000;

(2) where the total Ra. 10,000 but doA R3. 20,000

income exceeds

(3} where the total

per the

of the income

cent. total

Bfl. 20,000

Rs. 4,000 plus 40 amount by which exceeds Rs. 20,000.

Surcharge on income-tax

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

Paragraph C

Sub-Paragraph I

In the case of every- registered firm, not being a case to which Sub-

Paragraph II of this Paragraph applies,—

Rates of income-tax

(1) where the total income does Nil;

not exceed Rs. 10,000

(2) where tlie total Income exceeds Rs. 10,000 but does not exceed Rs, 25,000

(3) where the total income exceeds Rs. 26,000 but does not exceed Rs. 50,000

(4) where the total income exceeds Ra. 50,000 but does not exceed Rs. 1,00,000

(5) where the total income exceeds Rs. 1,00,000

5 per cent, of the amount by whicl the total Income exceeds Rs. 10,000

Rs. 750 plus 7 per cent, of the amoun by which the total income exceed R* 25,000;

Rs. 2,500 plus 15 per cent, of th amount by which the total incom exceeds Bs. 50,000;

Rs. 10,000 plus 24 per cent, of th< amount by which the total incOm* exceeds Rs. 1,00,000.

Surcharge on income-tax

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

Sub-Paragraph 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 such total income,—

Rates of i?

icome-tax

(1) where the total income does not Nil;

exceed Rs. 10,000

(2) where the total Income exceeds Rs. 10,000 but does not exceed Rs. 25,000

(3) where the total income exceeds Rs. 25,000 but does not exceed Us. 60,000

(4) where the total income exceeds Rs. 60,000 but does not exceed Ba. 1,00,000

C8) wtiere the total income exceeds Ri. 1,00,900

4 per cent, of the amount by which the total income exceeds Rs. 10,000;

Rs. 600 plus 7 per cent, of the amount by which the total income exceeds Rs. 25,000;

Rs. 2,350 plus J,3 per cent, of the amount by which the total Income exceeds Rs. 60,000;

Rs. 8,850 plus 22 per cent, of the amount by which the total income excevdg St. 1,00,000,

Surchaige on income-tax

The amount of income-tax computed in accordance with the preced- ing provisions of this Sub-Paragraph sHall be increased by a surchnrce for purposes of the Union calculated at the rate of ten per cent, of such income-tax.

Explanation.—For the purposes of this Paragraph, "registered firm" includes an unregistered firm assessed as a registered firm under clause (b) oi section 183 of the Income-tax Act.

Paragraph D

In the case of every local authority,—

Rote of income-tax

On 1Sie whole of the total income 50 per cent.

Surcharge on income-tax

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

Paragraph E

In the case of a company,—

Rates of income-tax

I. In the case of a domestic company,—

(1) where the company is a company in which the public are subs-

tantially interested,—

(1) in a case where the total in- 45 per cent. of the total income-

come does not exceed Rs. 1,00,000

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

income exceeds Rs. 1,00,000

(2) where the company is not a company in which the public are

substantially interested,—

(i) in the case of an industrial

(a) where the total income 55 p cr Cttnt of t]je t o t a] inCome;

does not exceed Hs- 2,00,000

(b) where the total income ⁶" p er c e n t- of the total income;

exceeds Rs. 2,00,000

(ii) in any other case M per cent. oi the total income;

Provided that—

(i) the income-tax payable by a domestic company, being a company in which the public are substantially interested, the total income of which exceeds Rs. 1,00,000, shall not exceed the aggre- gate of—

(a) the income-tax which would have been payable by the company if its total income had been Rs. 1,00,000 (the income of Rs. 1,00,009 for this purpose being computed as. if. such, income

included income from various sources in the same proportion as the total income of the company); and

(b) eighty per cent, of the amount by which its total income exceeds Rs. 1,00,000;

(ii) the income-tax payable by a domestic company, not being a company in which the public are substantially interested, which is an industrial company and the total income of which exceeds Rs. 2,00,000, shall not exceed the aggregate of—

(a) the income-tax which would have been payable by the company if its total income had been Rs. 2,00,000 (the income of Rs. 2,00,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and

(b) eighty per cent, of the amount by which its total Income exceeds Rs. 2,00,000.

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

(0 on so much of the total

income as consists of—

(a.) royalties received. from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March, 1961 but before the 1"* day of April, 1976, or

(b) fee3 for rendering techni- cal services received from an Indian concern in pursuance of an agreement made °y *t w i th the Indian concern after the 29th day of February, 1994 but before the 1st day of April, 1&76,

and where such agreement has, in 59 p er cent.; either case, been approved by the Central Government

(JO on the balance, if any, of 70 per cent,

the total income

Surcharge on income-tax

Thf amount of income-tax computed in accordance with the preced- ing pi ovisions of this Paragraph shall be increased by a surcharge calcu- lated .nt the rate of two and a half per cent, of such income-tax.

PART II

Rotes for deduction of tax at source in certain cases

In Oiery case in which under the provisions of sections 193, 104, 194A, 194B, UI4BB, 194D and 105 of the Income-tax Act, tax is to be deducted

at the rates in force, deduction shall be made from the income subject to deduction at the following rates: —

Income-tax Rate of Rate of

income-tax surcharge

1. In the case of a person other than a company—

(") where the person is resident in India—

(i) on income by way of interest 10 per cent. Nil;

Other than "Interest on securities"

(ii) on income by way of winnings 3Q p er cent. 3.75 per cent.;

from lotteries and crossword puzzles

(Hi) on income by way of winnings 30 per cent. 3.75 per cent.;

from horse races

(iv) on income by way of insurance 10 per cent. Nil;

commission

(v) on Income by way of interest 10 per cent. Nil;

payable on

(A) any security, other than a tax- free security, of the Central or a State Government;

(B) any debentures or other securities

for money issued by or on behalf of any local authority or a corporation esta- blished by a Central, State or Provincial Act;

42 of 1956.

(C) any debentures issued by a com- pany where such debentures arc listed in a recognised stock exchange in India in accordance with the Securities Con- tracts (Regulation) Act, 1956, and any rules made thereunder

00 on any other income (excluding 20 per cent. 2.5 per cent, interest payable on a tax-free security),

(6) where the person is not resident in

India—

(i) in the case of a non-resident

Indian—

(A) on investment income and 20 per cent. 2.5 per cent.;

long-term capital gains

(B) on income V>y way of 1; pcr c e nt. 1.875 per cent.;

interest payable on a tax-free se- curity

income

(C) on the whole of the other income-tax at 30 per cent, and surcharge at 3.75 per cent, of the amount of the income,

or

income-tax and surcharge on income-tax in respect of the income at the rates

Income-tax Rate of Rate of income-tax surcharge

prescribed in Sub-Paragraph I of Para- graph A of Part III of this Schedule, if such income had been the total income,

whichever is higher;

(ii) in the case of any other person—

c e nt £ rf ^

, „. , , , . , , . income-tax at 30 per cent, and surcharge (A) on the whole of mcome (exdud- Ing Interest payable on a tax-free secon- ty)

or

income-tax and surcharge on income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Para- graph A of Part in of this Schedule, if such income had been the total income,

whichever is higher;

(B) on income by way of interest

,

payable on a tax-free security 15 per cent. 1.875 per cent;

2. In the case of a company—

(a) where the company is a domestic

company—

(i) on income by way of interest 20 per cent. 1 per cent.;

other than "Interest on securities"

(li) on any other income (excluding 21.5 per cent. ' '" ' 1.075 per cent.;

Interest payable on a tax-free security)

(6) where the company is not a do-

mestic company—

(0 on income by way of dividend 25 per cent. Nil;

payable by any domestic company

(") on income by way of interest 25 per cent. Nil;

payable by Government or an Indian concern on moneys borrowed or debt in- curred by Government or the Indian con- cern in foreign currency

("0 on income by way of royalty 40 per cent. Nil;

payable by Government or an Indian con- cern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in considera- tion 'for the transfer of all or any rights (including the granting of a licence) In respect of copyright in any book on a subject referred to in the proviso to sub- section (IA) of section 115A of the In- come-tax Act, to the Indian concern n r____-r^_- — —— ' " " —"

Income-tax

Rate of Rate of income-tax surcharge

(iv) on income by way of royalty [not being royalty of the nature referred to in sub-item (fi)(Ki)] payable by Govern- ment or an Indian concern in pursuance of an agreement made by It with the Government or the Indian concern and which hag been approved by the Central Government,—

(A) where the agreement is made 50 per cent. 2.5 per cent.;

after the 31fit day of March, 1961 but before the 1st day of April, 1976

(B> where the agreement ia made after the 31st day of March. 1976—

(1) on so much of the amount of 20 per cent. Nil;

such income as consists of lump sum consideration for the transfer outside India of, or the imparting of informa- tion outside India in respect of, any* data, documentation, drawing or sped' fication relating to any patent, in- vention, model, design, secret formula or process, or trade mark or simi- lar property

(2) on the balance, if any, of such 40 per cent. W;

income

(v) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Govern- ment or the Indian concern and which has been approved by the Central Govern- ment—

(A) where the agreement is made 50 per cent. 2.5 per cent;

after the 29th day of February, 1964 but before the 1st day of April, 1976

(B) where the agreement is made " 40 per cent. Nil;

after the 31st day of March, 1976

(vl) on income by way of interest 44 per cent. 2.2 per cent.;

payable on a tax-free security

(WO on any other income ™ per cent. 3.5 per cent

ExPlanation.-For the purposes of this Part, "investment income , ^ong-terrTapital gains" and "non-resident Indian" shall have the mean- ings a s ^ ed to them in Chapter XH-A aS directed to be mserted ui the Income-tax Act by section 36 of this Act.

PART III Rate* for calculating or charging income-tax in certain cases, deducing incZXx from income chargeable under the head "Salaries" or any payment referred to in sub-section (9) of section 80E and computing

"advance tax".

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

proviso to subjection (5) of section 132 of the Income-tax Act or charged

under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deduct- ed under section 192 of the said Act from income chargeable under the head "Salaries" or deducted under sub-section (9) of section 80E of the said Act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" (not being "advance tax" in respect of any income chargeable to tax under Chapter XII or Chapter XII-A or section 104 or section 164A or section 167A of the Income-tax Act at the rates as specified in that Chapter or section), shall be so calculated, charged, deducted or computed at the following rate or rates:—

Paragraph A

Sub-Paragraph I

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

Kates of zncome-tax

(1) where the total income does Nil;

not exceed Rs. 15,000

(2) where tfie total income exceeds Ha. 15,000 but does not exceed Rs. 20,000

(3) where the total income exceeds Rs. 20,000 but does not exceed Rs. 25,000

(4) where the total Income exceeds Rs, 25,000 but does not exceed Rs. 30,000

(6) where the total income exceeds Rs. 30,000 but does not exceed Ra. 60,000

(6) where the total income exceeds Rs. 60,000 but does not exceed Ra. 60,000

(7) where the total income exceeds Rs. 60,000 but does not exceed Rs. 70,000

(8) where the total income exceeds Rs, 70,000 but does not exceed Rs. 65,000

(9) where the total Income exceeds

Rs. 85,000 but does not exceed Rs. 1,00,000

(10) where the total Income exceeds

Rs. 1,00,000

25 per cent, of the amount by which the total income exceeds Rs. 15,000;

Rs. 1,250 plus 30 per cent, of the amount by which the total income exceeds Rs. 20,000;

Rs. 2,750 plus 35 per cent, of the amount by which tfie total income exceeds Rs. 25,000;

Rs. 4,500 plus 40 per cent, of the amount by which the total incomo exceeds Bs. 30,000;

Rs. 12,500 plus 50 per cent, of the amount by which the total income exceeds Rs. 50,000;

Rs. 17,500 plus 52.5 per cent, of the amount by which the , total income exceeds Rs. 60,000;

Rs. 22,750 plus 55 per cent, of the amount by which the total income exreeds Rs. 70,000;

Rs. 31,000 plus 57.5 per cent. of the amount by which the total income exceeds Rs. 85,000;

Rs. 39,625 plus 60 per cent, of the amount by which the total income exceed8 B* 1,00,000.

Surcharge on income-tax

Th" amount of income-tax computed in accordance with the preced- ing 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.

Sub-Paragraph II

In the case of every Hindu undivided family which at any tlmft during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1984 exceeds Rs. 15,000,—

Rates 0/ income-tax

(1) where the total Income does Nil;

not exceed Rs. 8,000

(2) where the total income exceeds Rs. 8,000 but does . not exceed Ka 15,000

(3) where the total income exceeds Rs. 16,000 but does not exceed Rs. 20,000

(4) where the total income exceeds Rs. 20,000 but does not exceed Rs. 25,000

(5) where the total income exceeds Rs. 25,000 • but doeg not exceed Rs. 80,000

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

(7) where the total income exceeds Rs. 50,000

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

Rs. 1,540 plus 27 per cent, of the amount by which the total income exceeds Ra 15,000;

Rs. 2,890 plus 35 per cent, of the amount by which the total income exceeds Rs. 20,000;

Rs. 4,640 plus 40 per cent. of the amount by which the total income exceeds Rs. 25,000; Ra. 6,840 plus 50 per cent, of the amount by which the total income exceeds Rs. 30,000; Rs. 16,640 plus 60 per cent, of *h* amount by which the total incom* exceeds Rs, 50,000:

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

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

exceeding Rs. 12,000;

(ti) 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 which the total income exceeds Rs. 12,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preced- ing provisions of thi^ 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.

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

(1) where the total income does 15 per tent, ol the total income;

not exceed Rs. 10,000

(2) where the total Income exceeds Rs. 1,500 plus 25 per cent, of the Ra. 10,000 but does not exceed amount by which the total income Rs. 20,000

exceeds Ks. 10,000;

I?s. 20,000

(3) where the total income exceeds R's. 4,000 plus 40 per cent, of th" amount by which the total income exceeds Rs. 20,000.

Surcharge on income-tax

The amount of income-tax computed In accordance with the preced- ing provisions of this Paragraph shall be increased by a surcharge for pur- poses of the Union calculated at the rate of twelve and a half per cent, of such income-tax.

Paragraph C

Sub-Paragraph I

In the case of every registered firm, not being a case to which Sub.

Paragraph II of this Paragraph applies,—

Rates of income-tax

(1) where the total Income dues Nil;

not exceed Rs, 10,000

(2) where the total income exceeds 5 per cent, of the amount by which Ra. 10,000 but does not exceed. the total income exceeds Rs. 10,00'J; Rs. 25,000

(3) where the total income exceeds R*- 750 plus 7 per .cent, of the Rs. 25,000 but does not exceed amount by which the total Income Tin. 50,000 ^i i tl B exceeds Rs. 25,000;

(4) where the total income exceeds Rs. 2,000 plus 15 per cent, of the Rs. 50,000 but does not exceed amount by which the total income RE. 1,00,000

exceeds Rs. 50,000;

Rs 100 000

(5) where the total Income nxceeis Ks. 10,000 plus 24 per cent, of th" amount by which the total income exceeds Ra. 1,00,000.

' '

Surcharge on income-tax

The amount of income-tax computed In accordance with the preced- ing 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.

Sub.Paragraph II

In the case of every registered firm whose total income deludes in- come derived from a profession carried on by it and the income so included is not less than fifty-one per cent, of such total income,—

Rates of income-tax

(1) where the total income does Nil;

not exceed Rs. 10,000

(2) where the total income

exceeds Rs.10,000 but does not ex- 4 per cent, of the amount by which the total income exceeds Rs. 10,000, ceed Rs. 25,000

Rs, 600 plus 7 per cent, of the amount by which the total incoan (3) where the total income exceeds Rs, 25,000 but does not exceed Ks. 50,000

exceeds Rs. 25,000;

(i) where the total income exceeds Rs. 50,000 but does not exceed Rs. 1,00,000

Rs. 2,350 plus 13 per cent, ol t.;o amount by which the total incocae esveeds Rg. 50,000;

'5) where tho total income exceeds

Rs, 1,00,000

Rs. 8,850 plus 22 per cent. of the amount by which th0 total income exceeds Rs. 1.00,006.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preced- ing 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 pei cent, of such income-tax.

Explanation.—For 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,—

Hate of income-tax

On the whole of the total income 50 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preced- ing 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.

Paragmpli E

In the case of a company,—

Rates of income-tax

I. In the case of a domestic company—

(1) where the company is a com- 55 per cent, of the total income;

pony in which the public are substan- tially Interested

(2) where the company is not a company in which the public are substantially interested—

(1) in the case of an Industrial fiO per cent, of the total income;

enmpany

(tf> in any other case 65 per cent, of the total income.

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

(1) on so much of the total

fncome as consists of—

(a) royalties received from Government or an Indian concern In pursuance of an agreement made by it with the Government or the Indian concern aftar tho 31st day of March, 1961 but be- fore the 1st day of April, 1976, or

(b) fees for rendering techni- cal services received from Gov- ernment or an Indian, concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th dey of February 1964 but before the 1st day of April, 1976.

and where such agreement has, in ei- 50 jjer cent.; ther case, been approved by the Central Government

(11) on the balance, if any, of the 70 per cent,

total income

Surcharge on income-tax

The amount of income-tax computed in accordance with the preced- ing provisions of this Paragraph shall be increased by a surcharge calculated at the rate of five per cent, of such income-tax.

Ea?planation.—FoT the purposes of this Paragraph, "industrial com- pany" means a company 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 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, if the income attributable 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 the Income-tax Act) is not less than fifty-one per cent, of such total income;

(ii) "pro.iect" means a project for the construction of a build- ing, road, dam, bridge or other structure or assembly or installation of any machinery or plant.

PART IV

[See section 2(7) (e)]

RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME

Rule 1.—Agricultural income of the nature referred to in sub-clause (a) of clause (1) of section (2) of the Income-tax Act shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from other sources" and the provisions of sections 57 to 59 of that Act shall, so far as may be, 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 cons- trued as not including a reference to sub-sections (3) arid. (4) of section 40A.

Rule 2.—Agricultural income of the nature referred to in sub- clause (b) or sub-clause (c) of clause (1) 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 cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed 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], 41, 43 and 43A of the Income- tax Act shall, so far as may be, apply accordingly.

Rule 3.—Agricultural income of the nature referred to in sub-clause (c) of clause (1) of 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 in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head "In- come 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 sub- ject to the modifications that the references to "total income" therein shall be construed as references to net agricultural income and that the words, figures and letter "and before making any deduction under Chapter VIA" shall be omitted.

Rule 4.—Notwithstanding anything contained in any other provisions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent, of such income shall be regarded as the agricultural in- come of the assessee.

Rule 5.—Where the assessee is a partner of a registered firm or an unregistered firm assessed as a registered firm under clause (b) of sec- tion 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 (b) of the said sec- tion 183 and which in the previous year has either no income chargeable to tax imder 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 hag 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 agricultural income or loss of the firm shall be computed in the manner laid down in sub-section (1), sub-section (2), and sub- section (3) of section 67 of the Income-tax Act and the shore KO com- puted shall be regarded as the agricultural income or loss of the assessee.

Rule 6.—Where the- sssessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a com- pany or a firm) which in the previous year has either no income charce- able 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 fother than ft Hindu undivided family, a company or a firm) but has any agricultural Income, then, the

agricultural income ur loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agri- cultural income ur lo:;s 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 any source of agricultural income is a loss, such loss shall 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 (b) of section 103 of the Income-tax Act or is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the firm, association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 8.—Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.

Rule 9.— (1) Where he assesses has, in the previous year relevant to the assessment year commencing on the lt-t day of April, 1983, any agricultural income and the net result of the computation of the agri- cultural 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, 1375 or the 1st day of April, 1P76 or the 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day nf April, 1970 or the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of April, 1982, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act,—

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1975, to the extent, if any, such loss has not been set off against the agricul- tural income for the previous year relevant to the assessment year commencing on 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, 1979¹ or the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of April, 1982,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1976, to the extent, if any, such loss has not been set off against the agricul- tural 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,

(Hi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1977, to the extent, if any, such loss has not been set off against the agricul- tural 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,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 197a, to the extent, if any, such loss has not been set off against the agricul- tural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1979 or the 1st day of April, 1980 or the 1st day of April, 19til or the 1st day of April, 1982,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1979, to the extent, if any, such loss has not been set off against the agricul- tural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1980 or the 1st day of April, 1"81 or the 1st day of April, 1982,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1980, to the extent, if any, such loss has not been set off against the agricul- tural 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,

(vii) the loss so computed for the previous year relevant to the assessment year commencing ®n the 1st day of April, 1981, to the extent, if any, such loss has not been set off against the agricul- tural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1982, and

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1982,

shall be set off against the agricultural income of the assessee for the previous year relevant 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 commencing 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 previous year, in such other period, 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 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 day of April, 1982 or the 1st day of April, 1983, is a loss, then, for the purposes of sub-section (6) of section 2 of this Act,—

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1976, to the extent, if any, such loss has not been set off against the agricul- tural 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,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1977, to

the extent, if any, such loss has not been set off against the agricul- tural 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,

(in) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1978, to the extent, if any, such loss has not been set off against the •agricul- tural income for the previous year relevant to the assessment year commencing 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 or the 1st day of April, 1983,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1979, to the extent, if any, such loss has not been set off against the agricul- tural income for the previous year relevant to the assessment year commencing on the 1st day of April, 19(80 or the 1st day of April, 1981 or the 1st day of April, 1982 or the 1st day of April, 1983,

(u) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1980, to the extent, if any, such loss has not been set off against the agricul- tural 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,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1981, to the extent, if any, such loss has not been set off against the agricul- tural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1982 or the 1st day of April, 1983,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1981, to the extent, if any, such loss has not been set off against the agricul- tural Income for the previous year relevant to the assessment year commencing on the 1st day of April, 1983,

(uiii) the loss so computed for the previous year relevant to

the assessment year commencing on the 1st day of April, 1903,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1984, or the period aforesaid,

(3) Where a change has occurred in the constitution of a firm, nothing In sub-rule (1) or sub-rule (2) shall entitle the firm to set off so much of the loss proportionate to the share of a retired or deceased partner computed in the manner laid down in sub-section (1), sub-section (2) and sub-section (3) of section 67 of the Income-tax Act as exceeds his share of profits, if any, of the previous year in the firm, or entitle any partner to the benefit of any portion of the said loss (computed in the manner aforesaid) which is not apportlonable to him.

(4) Where any person deriving any agricultural income from any •ource has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (2) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set oft under gub-rule (1) or, as the case may be, sub-rule (2).

(5) Notwithstanding anything contained in this rule, no loss which has 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 25 of 1975. to t ne F in a n ce Act, 1975, or of the First Schedule to the Finance Act,

ff S W⁶> or of t he F i r st S c h e d u le lo t l le Finance (No. 2) Act, 1977, or of the 29 °o 19 of 1978. Schedule to the Finance Act, 1973, or of the First Schedule to the 21 of 1979. Finance Act, 1979, or of the First Schedule to the Finance (No. 2) Act, 44 of 1980. 1980, or of the First Schedule to thu Finance Act, 1981, or of the First 16 of 1981. Schedule to the Finance Act, 1932, shall be set off under sub-rule (1) ' or, as the case may be, sub-rule (2).

Rule 10.—Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 11—The provisions 0! 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 agticuliural income of the assessee 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 assessee, the Income-tax Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.

THE SECOND SCHEDULE

(See section 44)

PART I

In the First Schedule to the Customs Tariff Act,—

(i) in Heading No. 08.01/13,—

(1) in sub-heading No, (1), for the entries in column* (3) and (4), the entries "200%" and "190%" shall, respectively, bo substituted;

(2) in sub-heading No. (3), for the entries In columns (3) and (4), the entries "200%" and "190%" shall, respectively, be substituted;

(3) in sub-heading No, (4), for the entries in columns (9) and (4), the entries "200%" and "190%" shall, respectively, bo substituted;

(4) in sub-heading No, (5), for the entries in columns (3) and (4), the entries "200%" and "190%" shall, respectively, be substituted;

(ii) in Heading No. 25.01/32,—

(1) in sub-heading No. (1), for the entry in column (3),

the entry "100%" shall be substituted;

(2) in subJieading No. (2), for the entry in column (3),

the entry "60%" 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;

(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;

(6) in sub-heading No. (8), 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 "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 sub-heading No. (10), for the entry in column (3),

the entry "100%" shall be substituted;

(Hi) In Heading No. 28.01/58,—

(1) In sub-heading No. (1), for the entry in column (£)',

the tntry "100%" 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 entry in column (3), the entry "100%" shall be substituted;

(4) in sub-heading No. (4), for the entry in column (3), the entry "60%" shall be substituted;

(5) in sub-heading No. (5), for the entry in column (3), the entry "100%" shall be substituted;

(6) 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 entry In column (3), the entry "100%" shall be substituted;

(8) 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 sub-heading No. (10), for the entry in column (3), the entry "10O%" shall be substituted;

(11) in sub-heading No. (11), for the entry in column (3), the entry "100%" shall be substituted;

(12) in sub-heading No. (12), for the entry in column (3), the entry "100%" shall be substituted;

(13) in 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%" shall, 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 "60%." shall be substituted;

(5) in sub-heading No. (5), for the entry in column (3), the entry "100%" shall be substituted;

(6) in sub-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;

(S) 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 "100%" shall be substituted;

(10) in sub-hearlinw No. (10), for the entry in column (3),

the entry "100%" shall be substituted;

(11) in sub-heading No. (11), for the entry n column (3),

the entry "10&%" shall be substituted;

(12) in sub-heading No. (12), for the entry in column (3), the entry "100*%" shall be substituted;

(13) in sub-heading No. (13), for the entries in columns (3) and (4), the entries "100%" and "90%" shall, respectively, be substituted;

(14) in sub-heading No. (14), for the entry in column (3),

the entry "100%" shall be substituted;

(15) in sub-heading No. (15), for the entries in columns (3) and (4), the entries "100%" and "94%" shall, respectively, be substituted;

(16) in sub-heading No. (16), for the entries in columns (3) and (4), the entries "100%" and "94%" shall, respectively, be substituted;

(17) in sub-heading No. (17), for the entries in columns (3) and (4), the entries "100%" and "94%" shall, respectively, be substituted;

(18) in sub-heading No. (19), for the entry in column (3).

the entry "100%" shall be substituted;

(19) in sub-heading No. (21), for the entry in column (3),

the entry "150%" shall be substituted;

(20) in sub-heading No. (22), for the entry in column (3),

the entry "150'%" shall be substituted;

(v) in Heading No. 30.01, for the entries in columns (3) and (4), the entries "100%" and "90%" shall, respectively, be substituted;

(vi) in Heading No. 30.02, for the entries in columns (3) and (4), the entries "100%" and "90%" shall, respectively, be substituted;

(mi) in Heading No. 3003,—

(1) in sub-heading"No. (1), for the entries in columns (3) and (4), the entries "100%" and "90%" shall, respectively, be substituted;

(2) in sub-heading No, (2), for the entries in columns (3) and (4), the entries "Rs. 24 per litre or 100% whichever is higher plus Rs. 5 per litre" and "Rs, 24 per litre or 100% whichever Is higher plus Rs. 5 per litre" shall, respectively, be substituted;

(viii) in Heading No. 30,04]05, for the entry in column (3), the entry "100%" shall be substituted;

(ix) in Heading No. 32.01/03,—

(1) in sub-heading No, (1), for the entry in column (3),

the entry "100'%" shall be substituted;

(2) jn sub-heading No. (2), for the entries in columns (3) and (4), the entries "100%" and "90%" shall, respectively, be substituted;

(3) in sub-heading No. (3), for the entry in column (3).

the entry "60%" shall be substituted;

(x) in Pleading No. 32.04/12,—

(1) m sub-heading No (J>, for the entry in column (3), the entry "150%" shall be 5uL*,Lituted;

(2) in sub-heading No. (4), for the entry in column (3), the entry "150%" shall be substituted;

(3) in sub-heading Nn (5), for the entry in column (3), the entry "150%" shall be substituted;

(4) m sub heading No, (r>), for the entry m column (3), the entry "150%" shall be substituted;

(5) in sub heading No (7), for the entries in columns (3) and (4), the entiie, "i,K0'^ " and "140%" shall, respectively, be substituted;

(xi) in Heading No 32 1H f-or the entry in column (3), the entry "100%" shall be subslituted;

(xu) in Headinj No 33 01/06 -

(1) in bub-hea^iiiif No (¹>, for

and (4), +h- --><-i^ ' I rT " n- "* "nOf7 " r ¹-¹l ^=r)pctivcly, be vh^tituted:

(5) In sub-heading No. (5), for the entries in columns (3) and (4), the entries "100%" and "90%" shall, respectively, b" substituted;

i

(6) in sub-heading No. (6), for the entries in columns (3) and (4), the entries "100%" and "90%" shall, respectively, b" substituted;

I

(7) 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), th" entry "60%" shall be substituted;

(9) in sub-heading No. (9), for the entries in columns (3) and (4), the entries "100%" and "90%" shall, respectively, ba substituted;

'(xvii) in Heading No. 39.01/OS, for the entry in column (3), tbt

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 column (3), th" entry "150% plus Rs. 30 per kilogram" shall be substituted;

(xx) in Heading No. 73.01, for the entry in column (3), tlit entry "60%" shall be substituted;

(xxi) in Heading No. 73.02, for the entry in column (3), th© entry "60%" shall be substituted;

(xocil) in Heading No. 73.03/05, for the entry in column (3)', tlit 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 "60%" shall be substituted;

(2) in sub-heading No, (2), for the entry in column (3), the entry "100%" shall be substituted;

(xxiv) in Heading No. 73.08, for the entry in column (3), the entry "60%" shall be substituted^

(xxv) in Heading No. 73.09, for the entry in column (3), th" entry "60%" shall be substituted;

(xxvi) in Heading No. 73.10, for the entry in column (3), the entry "60%" shall be subsrtituted;

(xxvii) in Heading No. 73.11, for the entry in column (3), the entry "60%" shall be substituted;

(xxviti) in Heading No. 73.12, for the entry in column (3), the entry "60%" shall be substituted;

(xxix) in Heading No. 73.13,—

(1) in sub-heading No. (1), for the entry in column (3), the antry "100%" shall be substituted;

(2) in mib-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 entry "60%" shall be substituted;

(xxxi) in sub-heading No. (1) of Heading No. 73.16, for the entry in column (3), the entry "60%" shall be substituted;

(xxxii) in Heading No. 73.17/19,—

(I) in sub-heading No. (1) (i), for the entry in column (3), the entry "100%" shall be substituted;

(2) in sub-heading No. (1) (ii), for the entry in column (3), the entry "60%" shall be substituted;

(3) in sub-heading No. (l)(iii), for the entry in column (3), the entry "60%" shall be substituted;

(4) in sub-heading No. (1) (iv), for the entry in column (3), the entry "60%" 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 column (3), the entry "60%" shall be substituted;

(xxxv) in sub-heading No. (1) of Heading No. 73.22/23, for the entry in column (3), the entry "100%" shall be substituted;

(xxxvi) in Heading No. 73.24, for the entry in column (3), the entry "60%" shall be substituted;

(xxxvii) in sub-heading No. (1) of Heading No. 73.25, for the entry in column (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;

(xaxcix) 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. 73.29,—

(1) in sub-heading No. (1) (i), for the entry in column (3), the entry "100%" shall be substituted;

(2) in sub-heading No. (1) (ii), for the entry in column (3), the entry "60%" shall be substituted;

(xli) In Heading No. 73.30, for the entry in column (3), the entry "60%" shall be substituted;

(xlii) in Heading No. 73.31, for the entry in column (3), tho entry "100%" shall be substituted;

(xliii) in Heading No. 73.32, for the entry in column (3), the ©ntry "100%" shall be substituted;

(xliv) in sub-heading No. (1) of Heading No. 73.33/40, for the atttry in column (3), th" entry "150%" shall be substituted;

(xlv) in Heading No. 76.01,—

(1) in suta-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 "60%" shall be substituted;

(xlvi) in Heading No. 76.02, for the entry in column (3), the

entry "100%" shall be substituted;

(xlvii) in sub-heading No. (J) of Heading No. 76.03/04, for the entry in column (3), the entry "100%" shall be substituted;

(xiviii) in Heading No. 76.05, for the entry in column (3), the

entry "100%'n shall be substituted;

(xZia?) in Heading No. 76.06107, for the entry in column (3), the entry "100%" shall be substituted;

(I) in Heading Nc. 76.0" j 16, for the entry in column (3), the entry "100%" shall be substituted;

(It) in Heading No. 78.01,—

(2) 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 en|try In column (3), the entry "100%" shall be substituted;

(Hi) in Heading No. 78.02)06, for the entry in column (3), tha entry "100%" shall be substituted;

(liii) in Heading No. 79.01,—

(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;

(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) in Heading No. 7£>.04[06, for the entry in column (3), the entry "100%" shall be substituted;

(Ivii) in sub-heading No. (2) of Heading No. 84.11, for the entry in column (3), the entry "100%" shall be substituted;

(Iviii) in Heading No. 84.12, for the entry in column (3), the entry "100%" shall be substituted;

(lix) in sub-heading No. (1) of Heading No. 84.15, for the entry in column (3), the entry "100%" .shall be substituted;

(Ix) in sub-heading No. (5) of Heading No. 85.18/27, for the entry in column (3), the entry "100%" small be substituted.

PART II

Rate of duty Standard Preferential

Sub-heading No. and description of article

Heading No.

Areas

Duration when rates of duty "re pro- tective

(0 (a) (3) (4) (5)

In the First Schedule to the Customs Tariff Act> in Heading No. 29-01/45, after sub-heading No. (22), the following sub-heading shall be inserted, namely: —

"(23) Terephthalic Acid 150%

THE THIRD SCHEDULE

[See section 54(a)]

PART I

In the First Schedule to the Central Excises Act—

(i) In Item No. 4, under "II. Manufactured tobacco—", for the entry in the third column against sub-Item (2), the entry "Four hundred and forty rupees per thousand or three hundred per cent, ad valorem plus twenty rupees per thousand, whichever is higher." shall be substituted;

(ii) in Item No. 18, for the entries in the third column against sub-items I (ii), II (i) (a) and II (i) (b), the entries "Ten rupees per kilogram.", "Ninety-five rupees per kilogram." and "One hundred and five rupees per kilogram." shall, respectively, be substituted;

(Hi) in Item No. 68, for the entry in the third column, the

entry "Ten per cent, ad valorem." shall be substituted.

PART II

Item No.

Description of goods

Rate of duty

(2)

(3)

(1)

In the First Schedule to the Central Excises Act,—

(1) for Item No. ID, the following Item shall be substituted, namely: —

"ID. AERATED WATERS, WHETHER OR NOT FLAVOURED OR SWEETENED AND WHETHER OR NOT CONTAINING VEGET- ABLE OR FRUIT JUICE OR FRUIT PULP—

(1) Aerated waters which are

only charged with carbon dioxide gas under pressure and which contain no other added ingredi- ent—

(a) for each unit container Twenty paise.

containing 200 millilitres or leas

(b) for each unit container Twenty paise plus ten paise for containing more than 200 milli- every 100 millilitres or fraction there- litres

of in excess of 200 millilitres.

(c) others Forty per cent, ad valorem.

1

Iteir Wo,

Description of goods

Rate of duty

(2)

(1)

(3)

(2) Aerated waters other than those falling under sub- Item (1) —

(a) for each unit container Sixty paise

containing 200 millilltres or less

(b) for each unit container Sixty paise plus thirty paise for containing more than 200 milll- every 100 millilltres or fraction litres

thereof in excess of 200 millilitres.

(c) others Sixty per cent, ad valorem.";

fii) in Item No. 16, for sub-Item I, the following sub-Item shall be substituted, namely:

"I. (1) Tyres for motor vehi- cles; and tyros for vehicles or equipments, designed for use off the road—

(a) tyres for two-wheeled Twenty-five per cent, ad valorem, motor vehicles, namely, scooters, motor-cycles, mopeds and auto- cycles

(b) others Sixty per cent, ad valorem.

(2) Tyres for tractors, includ- Twenty-five per cent, ad valorem.

ing agricultural tractors.

(3) Tyres for trailers—

(a) of sizes, namely, 7.50-16 Twenty-five per cent, ad valorem. and 9.nO-]6. (b) others Sixty per cent, ad valorem.";

W) in Item No. 17,—

(a) for sub-Items (1) and (2), the following sub-Item shall be

substituted, namely: —

"(1) Paper and paper board, Ten per cent, ad valorem plug two (including paper or paper thousand and five hundred rupees per boards which have been sub- metric tonne.'; jected to varlou3 treatments such as coating, impregnating, corrugation, creping and design printing), not elsewhere speci- fied.

(b) sub-Items (3) and' (4) shall be renumbered as sub-

Items (2) and (3) respectively;

(iv) in Ttem No. 23, for sub-Item (1), the following sub-Item shall be substituted, namely: —

"(1) Grey portland cement (in- Two hundred and fifty rupees per eluding ordinary portion^ cement, metric tonne"; portland-pozzolana cement and Portland slag cement), masonry cement, rapid hardening cement, low heat cement and waterproof (hydrophobic) cement.

Description of goods

Item No.

Rate of duty

(2)

(3)

(1)

(u) In Item No. 30, for sub-Item D, (the following sub-Item shall be

substituted, namely: —

"D. Parts of electric motors Twenty per cent, ad valorem.";

(including diecast rotors).

(vi) in Item No. 34, under "I. Motor Vehicles—", for sub-Item

(2), ithe following sub-Item shall be substituted, namely: —

"(2) Motor vehicles of engine capacity not exceeding 2500 cubic centimetres—

(t) Motor vehicles with

body—

(a) saloon cars Five per cent, ad valorem plus

sixteen thousand rupees per car,

(b) others Twenty-five per cent, ad valorem.

(11) Other motor vehicles Thirty per cent, ad valorem".

(Including chassis whether or not with cab).

THE FOURTH SCHEDULE

[See section 54(b)]

1

Iten No

Description of goods

Rate of duty

(2>

(3)

(1)

In

titral Excises Act,—

the First Schedule to the Ceo

tern, shall be substituted, namely: —

( i) for Item No. 25, the following H

'25. IRON AND STEEL, AND ] PRODUCTS THEREOF, THE FOL- ] LOWING, NAMELY: —

Seventy rupees per metric tonne.

(1) Pig iron, cast Iron and splegeleisen in pigs, blocks, lumps and similar forms; and molten iron

Ten per cent, ad valorem.

(2) Ferro-alloys

(3) Waste and scrap

Seventy rupees per metric tonne.

(i) of iron

(it) of steel

Three hundred and fifty rupees per metric tonne.

(4) Shot and angular grit, whether or not graded: and wire pellets

(1) of iron

Seventy rupees per metric tonne.

(ii) of steel

(5) Iron or steel powders;

Seven hundred and fifty rupees per metric tonne. Ten per cent, ad valorem.

sponge iron or steel

(6) Puddled bars, pilings, ingots, blocks, lumps and simi- lar forms of iron or steel

(i) puddled bars and pilings

Seventy rupees per metric tonne.

of iron

(ii) ingots, blocks, lumps Three hundred and fifty rupees per metric tonne.

and similar forms of steel

(Hi) not elsewhere specified Three hundred and fifty rupees per metric tonne.

(7) Blooms, billets, slabs and sheet bars (including tinplate bars) and hoe bars

Seventy rupees per metric tonne.

(i) of iron

(11) of steel

Three hundred and fifty rupees per metric tonne.

Three hundred and fifty rupee* per metric tonne.

(8) Pieces roughly shaped by rolling or forging of iron or steel, not elsewhere specified

l

Description of goods Iten No

(2)

(1)

(9) Bars (Including flats) and rods (including wire rods) of iron or steel, rolled, forged, ex- truded, formed, finished, whether in straight lengths or in coils; hollow mining drill steel

(1) flats

(li) others

(10) Railway track construc- t ion material, the following;

Rails, sleepers and sleeper bars

(11) Angles, shapes and sec- t iong of iron or steel, not else- where specified, other than slotted angles and slotted channels, rol- led, forged, extruded, formed, finished; sheet piling of iron or steel whether or not drilled, punched or made from assembled elements

(12) Hoops, strips and skelp of Iron or steel, whether galvanised or not

({) hoops and strips

"i) skelp

(13) Coils for re-rolling, sheets, plates, and universal plates of iron or steel, hot or cold-rolled, whe- ther galvanised or not; forms such as ridges, channels (other than slotted channels), rain- water pipes and their fittings made from sheets, plates, or uni- versal plates; and tin plate and tinned, lacquered or varnished sheets Including tin taggers and cuttings of such plates, sheets or taggers—

(i) galvanised sheets, plates and forms

(it) tin plate and tinned sheets Including tin taggers and cuttings of such plates, sheets or taggers

(iii) lacquered sheets, var- nished sheets including cut- tings of lacquered sheets an<3 varnished sheets

Rate of duty

(3)

One thousand three hundred and fifty rupees per metric tonne.

Three hundred and flfly rupees per meitric 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.

One thousand three hundred and 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.

i

Item

Rate of duty

JNo.

Description of goods

(3)

(2)

(1)

(if) others

On© thousand three hundred and fifty rupees per metric tonne.

(14) Iron or steel wire, whether Three hundred and fifty rupees per metric tonne.

or not coated but not insulated

(15) Tubes and pipes and 1 blanks therefor, of iron or steel, r oiled, forged, spun, castt drawn, mnealed, 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 eteel,

not otherwise specified

(i) of iron

Seventy rupees per metric tonne.

{ii) of steel

Seven hundred and flity rupees per metric tonne.

Vxplamtion.—In this Item,— J

rast iron and spiegeleisen;

' mean ferrous products containing, of carbon, and which may contain lements within the weight limits (i) "iron" includes pig iron, < (ii) "pig iron" and "cast iron¹ by weight, 1.9 per cent* or more one or more of the following e specified:

jsphorous, t. silicon, t. manganese, nt. chromium, t. tungsten, and

less than 15 per cent. ph< not more than 8 per cen not more than 6 per cen not more than 30 per ce not more than 40 per cen

an aggregate of not more than 1 (for example, nickel, copper, alur denum) but does not includi distorting tool steels" containing carbon and having the character

0 per cent, of other alloy elements ninium, titanium, vanadium, molyb- e ferrous alloys known as "non- by weight, 1.9 per cent., or more of •istica of steel;

(Hi) "spiegeleisen" means ferrous products containing, by Lit not more than 30 per cent, of ning to the specifications mentioned weight, more than 6 per cent, bi manganese and otherwise confon in (ii) above;

(iv) "ferro-alloys" means alloys of Iron (other than master lalleable and are commonly used as ire of ferrous metals and which r together:

alloys) which are not usefully n raw material in the manufactt contain, by weight, separately oi

silicon, or

more than 8 per cent, of

E manganese, or

mors than 30 per cent, oi

of chromium, or

of tungsten, or

more than 30 per cent, more than 40 per cent.

a total of more than 10 per cen minium, titanium, vanadium, coj

t. of other alloy elements (alu- >pert 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 less 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—

(i) by shingling balls of puddled iron to remove the slag

arising during puddling, or

(il) 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

casting into moulds;

(mi) "blooms" and "billets" mean semi-finished products of rectangular section, of a cross-sectional area exceeding 1,225 square millimetres and of such dimensions that the thickness exceeds one- quarter of the width;

(viii) "slabs" and "sheet bars (including tinplate bars)" mean

semi-finished products of rectangular section, of a thickness not less than 6 millimetres, of width not less than 150 millimetres and of such dimensions that the thickness does not exceed one-quarter of the width;

(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 include slag, ash and other residues;

(x) "hollow mining drill steel" means steel hollow bars of any cross-section, suitable for mining drills, of which the greatest ex- ternal dimension exceeds 15 millimetres but does not exceed 50 millimetres, and of which the 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-sections in the form of circles, segments of circles, ovals, isosceles triangles, rectangles, hexagons, octagons or quadrilaterals with only two sides parallel and the other two sides equal, and which are not hollow;

(xii) "skelp" means hot-rolled narrow strip of width not exceed- ing 600 millimetres with rolled (square, slightly round or bevelled) edge;

(xiii) "hoops" means hot-rolled flat products in rectangular cross-section of thickness less than 3 millimetres and width less than 75 millimetres;

(xiv) "strips" means hot or cold-rolled products, rolled approxi- mately in rectangular cross-section of thickness usually 10 millimetres and below with mill, rolled, trimmed or sheared edges and supplied in coil or flattened coil (straight length) form but excludes hoop and skelp;

(xv) "coils for re-rolling" means coiled 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 but not exceeding 100 millimetres, and of a width exceeding 150 millimetres but not exceeding 1,200 millimetres;

(xvii) "plate" means a hot or cold-rolled flat product, rolled from an ingot or slab or sheet bar or produced by cold reduction of coils, in rectangular cross-section 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;

(xix) "wire" means cold drawn products of solid section of any cross-sectional shape, of which no cross-sectional dimension exceeds 13 millimetres;

(xx) "bars (including flats) and rods (including wire rods)" moans products of solid section which do not conform to the entirety of any of the definitions at (vii), (viii), (xii), (xiii), (xiv), (xv), (xvi), (xvii), (xviii) and (xix) above, and which have cross-sections in the shape'of circles, segments of circles, ovals, isosceles triangles, rectangles, hexagons, octagons or quadrilaterals with only two sides parallel and the other sides equal;

(xxi) "flats" 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 over, width 400 millimetres and below and supplied in straight lengths and in- cludes flat bars wilh bulb that has swelling on one or two faces of the same edge and a width of less than 400 millimetres.'; (ii) Item Nos. 26, 26AA and 28 shall be omitted.

THE FIFTH SCHEDULE

(See section 56)

In the First Schedule to the Additional Duties of Excise Act,—

(0 in Item No. 4, under "II- Manufactured tobacco—", for the entry in the third column against sub-Item (2), the entry "One hundred and sixty rupees per thousand or one hundred and ten per cent, ad valorem plus ten rupees per thousand, whichever is higher." shall be substituted;

(ii) in Item No. 19, for each of the entries in the third column against sub-Items III and IV, the entry "The duty for the time being leviable on the base fabrics, if not already paid, plus ten per cent, ad valorem." shall be substituted;

(Hi) in Item No. 22, for each of the entries in the third column against sub-Items (3) and (4), the entry L'The duty for the time being leviable on the base fabrics, if not already paid, plus ten per cent, ad valorem." shall be substituted.

R. V. S. PERI SASTRI,

Secy, to the Govt. of India

PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD,

NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS. DELHI, 1 9 83