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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No. 6] NEW DELHI, WEDNESDAY, FEBRUARY 29, 1984/PHALGUNA 10, 1905

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

LOK SABHA

The following Bill was introduced in Lok Sabha on the 29th February,

1984:—

B I LL N O. 11 OF 1984

A Bill to give effect to the financial proposals of the Central Government for the

financial year 1984-85,

BE ft enacted by Parliament in the Thirty-fifth Year of the Republic

of India as follows:—

CHAPTER I

PBELIMINARY

1. (1) This Act may be called the Finance Act, 1984.

Short title and com- mencement.

(2) Save as otherwise provided in this Act, sections 2 to 34 and section

54 shall be deemed to have come into force on the 1st day of April, 1984.

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, 1984, income-tax shall be charged at the rates specified in P a rt I of the First Schedule and shall be increased, —

(a) in the cases to which Paragraphs A, B, C and D of that P a rt apply,

by a surcharge for purposes of the Union; and

[b] in the cases to which Paragraph E of that Part applies, by a surcharge, calculated in each case in the manner provided therein:

18 of 1964.

Provided that where an assessee, being a company, has made, 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 the Companies Deposits (Surcharge on Income-tax) Scheme, 1983, then, the surcharge on income-tax payable by the company,—

(a) 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, shall be reduced by one-half of the amount of surcharge payable by it; and

( 1 )

[6) 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, shall bo reduced by the amount of the deposit.

(Z) 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, —

U) In a case to which the aald Sub-Paragraph I applies, fifteen thousand

rupees, and

(*A.) 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 (6) fthat Is to say, as If the net agricultural Income were comprised in the total Income after,—

U) in a case to which the aald Sub-Paragraph I applies, the first fifteen

thousand rupees, and

[li] (n a case to which the said Sub-Paragraph II applies, the first eight

thousand rupees,

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

(b) the Income-tax chargeable shall be calculated as follows:—

(f) the total Income and the net agricultural Income shall be aggregated and flie amount of Income-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-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-Paragraph II, for the

purpose of determining the amount of Income-tax In accordance with this sub-clause, the provisions W clause [U.) of the proviso below Sub-Paragraph II and the provisions relating to surcharge on Income-tax in the said Sub-Para- graph II shall not applyj

l-u} the net agricultural Income shall be increased, ~

\k) In a cage to whloh the said Sub-Paragraph I applies, by a sum of

fifteen thousand rupees; and

(8) 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 aatd 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 aub-clause, the provisions of clause IU) 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 applyj

[Ajli) the amount of income-tax determined In accordance with sub-clause IU shall be reduced by the amount of Income-tax determined In accordance with sub-uliuse [i$:

Provided that in a c a se r e f e r r ed to In the said S u b - P a r a g r a ph IT, where the s um so a r r i v ed at e x c e e ds sixty p er cent, of the amount by which the

total income exceeds twelve thousand r u p e e s, the e x c e ss shall be d i s r e g a r d e d;

liv) the amount of Income-tax d e t e r m i n ed In accordance with s u b - c l a u se [ill] shall be i n c r e a s ed by a s u r c h a r ge for p u r p o s es of the Union calculated at the r a te of twelve and a half p er cent, of such Income-tax and the sum so a r r i v ed at shall be the Income-tax in r e s p e ct of the total income.

(3) In c a s es to which the p r o v i s i o ns of Chapter XII or Chapter XIIA or section 43 of 1961.

164 or section 164A or section 167A of the I n c o m e - t ax Act, 1961 (hereinafter r e f e r r ed to as the I n c o m e - t ax Act) apply, the tax c h a r g e a b le shall be d e t e r m i n ed as provided Its that Chapter or that section, and with r e f e r e n ce to the r a t es Imposed by s u b - s e c t i on ( ?) or the r a t es as Bpeclfied In that Chapter or section, as the c a se may b e.

[4) In c a s es In whloh tax has to be deducted under sections 193, 194, 194A,

194B, 194BB, 194D and 195 of the Income-tax Act at the r a t es in f o r c e, the deduction shall be m a de at the r a t es specified In P a rt II of the F i r st Schedule.

(5) Subject to the p r o v i s i o ns of s u b - s e c t i on (6), In c a s es in which income-tax has to be calculated under the first p r o v i so to s u b - s e c t i on (5j of section 132 of the Income-tax Act or charged under s u b - s e c t i on (4) of section 172 or s u b - s e c t i on (2) of section 174 or section 175 or s u b - s e c t i on (Z) of section 176 of the said Act or deducted under section 192 of the said Act from Income chargeable under the head " S a l a r i e s" or deducted under s u b - s e c t i on (y) of section 80E of the said Act from any payment r e f e r r ed to In the said s u b - s e c t i on (9] or In which the "advanco t a x" payable under Chapter XVII-C of the said Act has to be computed, at the r a te or r a t es In f o r c e, s u ch i n c o m e - t ax o r, as t he c a se m ay b e, " a d v a n ce t a x" s h a ll be HO c a l c u l a t e d, •

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 sub-section ( /A) of section 161 or section 164 or section 164A or section 167 A 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 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 the company, —

(l\ In a case where the amount of the deposit so made is equal to or exceeds the amount of surcharge on Income-tax payable by It, shall he nJ.t\aaA

[^i] in a case where the amount of the deposit so made falls short of the

amount of surcharge on Income-tax payable by It, shall be reduced by the amount of the deposit.

U) 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

[ii) in a case to which the said Sub-Paragraph n applies, twelve thousand rupees,

then, in calculating Income-tax under the first proviso to sub-section (5) of ooctlon 132 of the Income-tax Act or In oharglng Income-tax under sub-section [Z) of

9ection 174 or section 175 or sub-section [2) of section 176 of the aaid 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 (fa) Qhat is to say, as if the net agricultural Income were comprised In the total income after, —

[li In a case to which the said Sub-Paragraph I applies, the first fifteen

thousand rupees, and

[H] 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 tajQ, only for the purpose of calculating, charging or computing such Income-tax or, as tlie case may be, "advance tax" in respect of the total Income; and

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

calculated, charged or computed as follows:—

W 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-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-Paragraph II, for the purposes of determining the amount of income-tax or "advance tax" in accor- dance with this sub-clause, the provisions of clause [u) of the proviso below the said Sub-Paragraph II and the provisions relating to surcharge on income- tax in the said Sub-Paragraph n shall not applyj

(^,) the net agricultural income shall be Increased,—

iA) in a case to which the said Sub-Paragraph I applies, by a sum of

fifteen thousand rupees; and

(2) in a case to which the said Sub-Paragraph II applies, by a sum

of eight thousand rupees,

and the amount of inoome-tax or "advance tax" shall be determined In respect of the net agricultural Income as so Increased at the rates specified In the said Sub-Paragraph I or, as the caae may be, the said Sub-Paragraph II, as if the net agricultural Income as ao increased were the total income:

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

purposes of determining the amount of Income-tax or "advance tax" In accordance with this sub-clause, the provisions of clause [j.L] of the proviso below the said Sub-Paragraph n and the provisions relating to surcharge on Income-tax in the said Sub-Paragraph II shall not apply;

[^U.) 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 (it);

Provided that In a case referred to In the oald 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;

[AV] the amount of Income-tax or "advance tax" determined In accordance

with sub-clause [iu] 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 or, as the case may be, "advance tax" and the sum so arrived at shall be the Income-tax or, aa the case may be, 'advance tax" in respect of the total Income,

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

18 of 1964.

commencing on the 3at day of April, 1984, any deposit with the Industrial Develop- ment Bank of Indta established under the Industrial Developmant 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 bj' the company for the assessment year commencing on the lat day of April, 1985, —

(i) In a caae where the amount of the deposit so made Is equal to or exceeds the amount of surcharge on income-tax payable by it, shall be niJL.; and

Hi) in a case where the amount of tho deposit so made falls short of the amount cf surcharge on Income-tax payable by It, shall be reduced by the amount of tho deposit,

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

(a) "company In which the public are substantially Interested" -means a company which ts such a company as is referred to in section 108 of the Income-tax Aoti

16) "domestic company" means an Indian company, or any other company which, In respect of Its Income liable to Income-tax under the Inuome-tax Act for tho assessment year commencing on the 1st day of April, 1984, has made the prescribed arrangements for the declaration and payment within India of the dividends (Inoluding dividends on preference shares) payable out of gm.-h income In accordance with the provisions of section 194 of that Act;

(c) "industrial company" means a company which Is mainly engaged In the business of generation or distribution of electricity or any other form of power or In the 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.

Exptntiatwn. ~— For the purposes of this clause, —

U.) a company shall be deemed to be mainly engaged In the business of generation or distribution of electricity or any other form of power or in the 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) la not less than fifty-one per cent, of such total Income;

(•ii) "project" means a project for the construction of a building, road, dam, bridge or other structure or assembly or installation of any machinery or plant;

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

(a) "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;

(jj) "tax-free security" means any security of the Central Government 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 Governmenti

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

CHAPTER HI

DIRECT TAXES

lnc.ome.-tax

Amendment of

section 10.

3. In section 10 of the Income-tax Act, In clause (30), after the words "tea bushea", the worda "or for rejuvenation or consolidation of areas uaed for cultiva- tion of tea" shall be Inserted with effect from the lat day of April, 1985.

4. In section 11 of the Income-tax Act, in sub-section (5), after clause (x)

Amendniant of

lection 11.

and the Explanation thereto, the following clause shall be Inserted with effect from the 1st day of April, 1985, namely:—

"[XfC) deposits with the Industrial Development Bank of India established

l& of 1964.

under the Industrial Development Bank of India Act, 1964;".

5. In section 33B of the Income-tax Act, before the Biffcunatlon, the following

Amendment of

•action 33B.

proviso shall be inserted with effect from the 1st day of April, 1985, namely:—

"Provided that no deduction under this section shall be allowed in relation

to the assessment year commencing on the 1st day of April, 1985 or any subsequent assessment year. ".

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

Ammdment of

•action 35.

(a) In sub-section (Z) , in clause (ia),—

[•0 before the Explanation, the following proviso shall be Inserted, namely:-

"Provided that no deduction shall be admissible under this clause in respect of any expenditure incurred on the acquisition of any land, whether the land is acquired as such or as part of any property, after the 29th day of February, 1984. ";

[•CO the Explanation shall be numbered as txptamtun 1 and after Exp&ira&OH / aa so numbered, the following Exportation shall be Inserted, namely:—

'bqptamtion Z. •— For the purposes of this clause,—

(a) "land" includes any interest in land; and

(fa) the acquisition of any land shall be deemed to have been made by

16 of 1908.

4 of 1882-

the assessee on the date on which the instrument of transfer of such land to him has been registered under the Registration Act, 1908, or where he has taken or retained the possession of such land or any part thereof in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882, the date on which he has so taken or retained possession of such land or part;';

(6) In sub-section (2A), for the words "Where the assessee pays any sum" the

words, figures and letters "Where, before the 1st day of March, 1984, the assessee pays any sum" shall be substituted;

(c) in sub-section (28), in olause [a], for the words "Where an aasessee has Incurred any expenditure", the words, figures and letters "Where, before the 1st day of March, 1984, an assessee has incurred any expenditure" shall be substituted.

7. In section 35C of the Income-tax Act, in sub-section (1), in clause (a), after AuaodBfet of McUon 35C.

the words, figures and letters "after the 29th day of February, 1968", the words, figures and letters "but before the 1st day of March, 1984" shall be Inserted.

8. In section 36 of the Inoome-tax Act, In sub-section (1), In clause (Ua), after Amendnnt of •action 36.

the words "payment of any salary", the words, figures and letters "for any period of employment before the lat day of March, 1984" shall bs inserted.

9. In section 40 of the Income-tax Act, In clause (c), with effect from the let day Amendment of section 40.

of April, 1985,—

(a) in sub-clause (A), for the words "seventy-two thousand rupees", the words "one hundred and two thousand rupees" shall be substituted;

(fa) in sub-cla>ise (8), for the words "six thousand rupees", the words "eight thousand five hundred rupees" shall be substituted.

10. In section 40A of the Income-tax Act, —

Amendmwt of

section 40A,

(a) in sub-section (5), in clause (c), in sub-clause (4), with effect from the 1st day of April, 1985,—

(X) for the words "five thousand rupees", the words "seven thousand five

hundred rupees" shall be substituted;

1*0 for the words "sixty thousand rupees", the words "ninety thousand

rupees" shall be substituted;

(JM) after the proviso, the following proviso shall be inserted, nomelyt—

'Provided further that in relation to any month or part thereof comprised In any such previous year as is relevant to the assessment year commencing on the let day of April, 1985F or any subsequent assessment year, the reference to "five thousand rupees" in the preceding proviso shall be construed as a reference to "seven thousand five hundred rupees".

(b) in sub- section [6], for the words "sixty thousand rupees", the words "ninety thousand rupees" shall be substituted with effect from the 1st day of April, 1985;

Id after sub-section [$), the following sub-seotlon shall be Inserted and shall be deemed to have been inserted with effect from the lflt day of April, 1980, namely:—

"(9) No deduction shall be allowed in respect of any sum paid by the assessee as an employer towards the setting up of, or as contribution to, any fund or trust for any purpose, except where such- sum Is so paid,for the purposes and to the extent provided by or under clause (-tv) or clause (v) of sub-section (/) of section 36 or, as required by or under any other law for the time being in force. ".

11- After section 44AA of the Income-tax Act, the following section shall be

inserted with effect from the l et day of April, 1985, namely:—

InMrtloti of

new section

44AB.

'44AB. Every person, —

la) carrying on business shall, If his total aales. turnover or gross receipts,

Audit of

•ccounU of

certain ptt"on"

certyini on

bualuM* ot

piofasrto*.

as the case may be, In business exceed or exceeds twenty lakh rupees in any previous year or years relevant to the assessment year commencing on the 1st day of April, 1985 or any subsequent assessment year; or

(b) carrying on profession shall, If hie gross receipts in profession exceed ten lakh rupees in any previous year or years relevant to the assessment year commencing on the 1st day of April, 1985 or any subsequent Assessment year,

get his accounts of such previous year or years audited by an accountant before the specified date and obtain before that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed:

Provided that In a c aw whore such person la required by or under any other law to get his accounts audited by an accountant, It shall be sufficient compliance with

the provisions of this section If such person gets the accounts of such business or profession audited under such law before the specified date and obtains before lliBt date the report of the audit as required under suoh other law and a further report in the form prescribed under this section.

Explanation. — For the purposes of this section, —

(•£) "accountant" shall have the same meaning as iD the foptoiotutfi below sub-section (2) of section 28B|

IXt) "specified date", In relation to the accounts of the previous year or

years relevant to an assessment year, meana the date of the expiry of four months from the end of the previous year or, where there is more than one previous year, from the end of the previous year which expired last Jbefore the commencem"T>t of the ^sfl^ssmf-nt yeav, or the 30th day of June of the assessment yen¹, whic^evtr lf" later.".

12. Irt flection 8QCC of the Income-tax Act, in sub-section (3) ,for clause (cj, Amendment of unction gOCC,

the following clause, shall be substituted, namely, ~

"(cj the shares forming part of the issue are offered for subscription to

tbo public and such offer for subscription is made by th" company before the 1st day of March, 1984;".

13. Section 80D of the Income-tax Act shall be omitted with effect from the Omission of •action HOC let day of April, 1986.

Ammdnxmt of

••ctton SOE.

14. In section 80E of the Income-tax Act, in sub-section (/), after the words "he has paid", the words, figures and letters ", before the 1st day of March, 1984, " Bhall be Inserted.

15. In section 80L of the Income-tax Act, In sub-section (1), with effect

Amendment of

•pctiod SOL-

from the 1st day of April, 1985,—

(a) after clause lie), the following clause shall be inserted, namely :--

" I^Ua) Interest on deposits under such National Deposit Scheme a" may be framed by the Central Government and notified by It in thlB behalf in the Official Gazette;";

(6) In clause l&Ui, for the words "under any scheme", the wordn

"under any other soheme" shall be substituted;

(c) the following provliso shall be Inserted at the end, namely:—

"Provided that where the gross total lnoome of the assessee Includes any income by way of interest on any deposits referred to In clause (Ua) or lnoome in respect of units referred to In clause (vi, there shall be allowed In computing the total Income of the assessee a further deduction of an amount equal to so much of such lnoome as has not been allowed by way of deduction under the foregoing provisions of this sub-section; so, however, that the amount of such further deduction shall not exceed three thousand rupees. ".

16. In section 80M of the Income-tax Act, In sub-section (!), with

AmMdnmt of

Mctlon 80H.

effect from the 1st day of April, 1986, —

(a) for the words "an amount equal to—", the words "an amount equal

to sixty per cent, of moh Income. " shall be substituted;

(6) clauses [a) and (6) shall be omitted.

17. lu section 80N of the Income-tax Act, for the words "a deduction

of the whole of the Income", the words "a deduction of an amount equal

to fifty per cent, of the income" shall be substituted with effect from the 1st day of April, 1985.

18. In section 80O of the Income-tax Act, for the words "a deduction

Amendment of

section 80O.

of the whole of the income", the words "a deduction of an amount equal to fifty per cent, of the income" shall be substituted with effect from the 1st day of April, 1985.

19. Section 80U of the Income-tax Act shall be numbered as sub-

Amendment of

section SOU.

section U) with effect from the 1st day of April, 1985, and,—

(a) In sub-section (1) as so numbered, in clause (li), after the words

and brackets "a permanent physical disability (other than blindness) ", the words "being a permanent physical disability specified in the rules made in this behalf by the Board, and" shall be inserted with effect from the 1st day of April, 1985;

(6) after sub-section (I) as so numbered, the following sub-section

shall be inserted with effect from the 1st day of April, 1985, namely:—

"(2) The Board shall, in making any rules for specifying any

disability for the purposes of clause [IQ of sub-section (I), have regard to the nature of Buch disability and the effect which suoh disability is likely to have on the capacity of a person subject thereto, or suffering therefrom, to engage in a gainful employment or occupation.".

Amendment of

section 161.

20. In section 161 of the Income-tax Act, after sub-section (J), the following Bub-sectlon shall be Inserted with effect from the 1st day of April, 1985, namely:—

'(/A) Notwithstanding anything contained In sub-section (1), where any Income in respect of which the person mentioned in clause (

Provided that the provisions of this sub-section shall not apply where

such profits and gains are receivable under a trust declared by any person by will exclusively for the benefit of any relative dependent on him for support and maintenance, and such trust is the only trust so declared by him.

Exp6wo&£>n.'— For the purposes of this Bub-sectlon, "maximum

marginal rate" shall have the meaning assigned to It in Exptamtian 1 below sub-section (3) of section 164.

21. In section 164 of the Income-tax Act, with effect from the 1st

Amandin"ot of

section 164.

day of April, 1985,-

[a) In eub~ section (1), after the proviso, the following proviso

shall be Inserted, namely :—

"Provided further that where any Income in respect of which the person mentioned In clause (^y) of sub-section (J) of section 160 Is liable as representative assesses consists of, or includes, profits and gains of business, the preceding proviso shall apply only if such profits and gains are receivable under a trust declared by any person by will exclusively for the benefit of any relative dependent on him for support and maintenance, and such trust is the only trust so declared by him. ";

(6) to sab-section (2), the following proviso shall be added, namely:—

"Provided that In a case where the whole or any part of the relevant Income Is not exompt under section 11 or section 12 by virtue of the provisions contained In clause (c) or clause (cfl of sub-section (I) of section 13, tax shall be charged on the relevant Income or part of relevant income at the maximum marginal rate. ";

(c) In sub-section (3), after the proviso and before Explanation 1,

the following provisos shall be Inserted, namely:—

'"Provided further that where the relevant Income consists of, or includes, profits and gains of business, the preceding proviso shall apply only If the income is receivable under a trust declared by any person by will exclusively for the benefit of any relative dependent on him for support and maintenance, and such trust Is the only trust so declared by hi£n:

Provided also that In a case where the whole or any part of the relevant income is not exempt under section 11 or section 12 by virtue of the provisions contained In clause (c) or clause (<# of sub-section (I) of section 13, tax shall be charged on the relevant income or part of relevant income at the maximum marginal r a t e. ".

Amendment of

section 193.

22. In section 193 of the Income-tax Act, in the proviso, after clause (-a*), the following clause shall be inserted with effect from the 1st day of June, 1984, namely:—

"(v) any interest payable to an individual, who Is resident in

India, on debentures issued by a company in which the public are substantially Interested, being debentures listed on a recognised stock exchange In India in accordance with the Securities Contracts (Regulation) Act, 1956, and any rules made thereunder, if —

42 of 1956.

(a) the interest is paid by the company by an account payee

cheque; and

(fa) the amount of such interest or, as the case may be, the

aggregate of the amounts of such Interest paid or likely to be paid during the financial year by the company to such individual does not exceed one thousand rupees. "

Amendment of

section 194.

23. In section 194 of the Income-tax Act, for the first proviso, the following proviso shall be substituted with effect from the 1st day of June, 1984, namely:—

'Provided that no such deduction shall be made in the case of a

shareholder, being an individual, who is resident In India, of a company In which the public are substantially interested, if —

(a) the dividend is paid by such company by an account payee

cheque; and

Ifaj the amount of such dividend or, as the case may be, the

aggregate of the amounts of such dividend distributed or paid or likely to be distributed or paid during the financial year by the company to the shareholder does not exceed one thousand rupees:".

24. In section 252 of the Income-tax Act,-—

("j after sub-section (4), the following sub-section shall be Inserted, namely:—

"(44) The Central Government may appoint one of the Vice-Presidents

of, the Appellate Tribunal to be the Senior Vice-President thereof.";

\oi in suo-section w, lor tne words "A Vice-President", the words "The

Senior Vice-President or a Vice-President" shall be substituted.

25. In section 269C of the Income-tax Act, In sub-section (1), for

Amendment of sectjon 269C.

the wordu "twenty-five thousand rupees", the words "fifty thousand rupees" shall be substituted with effect from the 1st day of June, 1984.

Amendment of section 269F.

26. In section 269F of the Income-tax Act, In sub-section 16), in clause la), for the words "twenty-five thousand rupees", the words "fifty thousand rupees" shall be substituted with effect from the 1st

27. In section 269P of the Income-tax Act, in sub-section ' ! ), In the proviso,

Amendment of section ?/iQP.

for the words "ten thousand rupees", the words "twenty-five thousand rupees" shall ae substituted with effect from the 1st day of June, 1984.

28. In Chapter XXB of the Income-tax Act, —

Insertion of new section 269SS. [a.) In the heading, for the words "MODE OF REPAYMENT", the words

MODE OF ACCEPTANCE, PAYMENT OH HEPAYMQ(T" shall be substituted;

(6) before section 269T, the following section shall be Inserted, namely: —

'269SS. No person shall, after the 30th day of June, 1984,take or accept

Mode of takinp, or accepting certain loans and deposit¹*.

from any other person (hereafter In this section referred to as the depositor) any loan or deposit otherwise than by an account payee cheque or account payee bank draft If, —

(a) the amount of tuxch loan or deposit or the aggregate amount of such

loan and deposit; or

(6) on the date of taking or accepting such loan or deposit, any loan or

deposit taken or accepted earlier by such person from the depositor Is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid; or

(c) the amount or the aggregate amount referred to In clause (a)

together with the amount or the aggregate amount referred to In clause (6;?

Is ten thousand rupees or m o r e:

Provided that the provisions of this section shall not apply to any loan or deposit taken or accepted from, or any loan or deposit taken or accepted by, —

[a] Government;

(6) any banking company, post office savings bank or co-operative bank;

(c) any corporation established by a Central, State or Provincial Act;

[d] any Government company as defined In section 617 of the

1 of 1956.

Companies Act, 1956;

(c) such other Institution, association or body or class of Institutions, associations or bodies which the Central Government may, for reasons to be recorded In writing, notify In this behalf In the Official Gazette.

ExpZamtuM. For the purposes of this section,—

[1] "banking company" shall have the meaning assigned to It

In clause (a) of the Explanation to aab-gectlon (£| of section 40A;

(.u.) co-operative bank shall have the meaning assigned to

10 of 1049.

it in Part V of the Banking Regulation Act, 1949;

[Hi] "loan or deposit" means loan or deposit of money.'.

29. In section 269T of the Income-tax Act, in the Explanation, after clause [I] , the Amendment of section 269T. following clause shall be Inserted, namely: —

' Ua) "co-operative bank" shall have the meaning assigned to it in Part Vof the Banking Regulation Act, 1949;'.

10 of 1949

30. In the Income-tax Act, alter section 271A, the following section shall be inserted with effect from the 1st day of April, 1985, namely:—

Insertion of new section 271B.

"271B. If any person fails, without reasonable cause, to get his accounts Failure to get accounts audited.

audited In respect of any previous year or years relevant to an assessment year or obtain a report of such audit as required under section 44AB, the Income- tax Officer may direct that such person shall pay, by way of penalty, a sum equal to one-half per cent of the total sales, turnover or gross receipts, ae the case may be, in business, or of the gross receipts in profession, in such previous year or years or a sum of one hundred thousand rupees, whichever is less. ".

31. In the Income-tax Act, after section 276D, the following section shall be Inserted, namely:—

Insertion of

new section

276 DD.

"276DD. If a person, without reasonable cause or excuse, takes or accepts Penalty for contravention of section 269SS.

any loan or deposit in contravention of the provisions of section 269SS, he shall be punishable with imprisonment for a term which may extend to two years and shall also be liable to fine equal to the amount of such loan or deposit. ".

32. In section 281A of the Income-tax Act,—

(a) In sub-Bection (I), for the portion beginning with the words "the real owner of such property unless, —" and ending with the words "to the Income-tax Officer", the following shall be substituted, namely:—

"the real owner of such property unless notice in the prescribed form and containing the prescribed particulars in respect of the property has been given by the claimant within a period of one year from the date of acquisition of the property to the Commissioner ";

(fa) after sub-section (/), the following sub-3eotions shall be inserted, namely:—

"(1A) Where any such property is acquired by the claimant before the 1st day of March, 1984, the provisions of sub-section (/) shall be deemed to have been fulfilled if notice in the prescribed form and containing the prescribed particulars in respect of the property la given by the claimant,within a period of one year from the said date,to the Commissioner.

[\&\ Notwithstanding anything contained in sub-section U) or sub-section (JA|, in relation to any suit relating to any immovable property of a value not exceeding fifty thousand rupees, the provisions of sub-section (1) or, as the oase may be, eub-section (JA) shall be deemed to have been fulfilled If, at any time before the suit, notice In the prescribed form and containing the prescribed particulars in respect of the property has been given by the claimant to the Commissioner. ";

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

"(2) The Commissioner shall, on an application made in the prescribed manner, by the claimant or any person acting on his behalf or claiming under him, and on payment of the prescribed feea, issue, for the purposes of a suit

referred to in sub-section (I), a certified copy of any notice given by the claim- ant under sub-section (1) or sub-section (IA) or sub-section (Jd), within fourteen days from the date of receipt of the application. ".

Amwubncn

Ninth

Schedule.

33. In the Ninth Schedule to the Income-tax Act, for the brackets, words, figures and letters "/Sea section 32( J) (ui) and section 80M (J) (a) {I)]", the brackets, words and figures "[See. section 32 (J) (w]J" shall be substituted with effect from the 1st day of April, 19B6.

blzaltk-tax

34. In the Wealth-tax Act, 1957,wtth effect from the 1st day of April, 1985, -

Amwdarint

Act 27 of

[a] In section 5, —

[i] in sub-section (/),—

(J) in clause [AM), in the proviso, for the words "one hundred thousand rupees", at both the places where they occur, the words "two hundred thousand rupees" shall be substituted;

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

"(xxitt) any deposits under such National Deposit Scheme as may be framed by the Central Government and notified by it in this behalf In the Official Gazette;"j

(3) after clause (xxu&L the following clause shall be inserted, namely:—

"(xxuua) any deposits with the Industrial Development Bank of India IB of 1964.

established under the Industrial Development Bank of India Act, 1964;"1

[HI in sub-section (JA),-

(1) for the brackets and figures "(xxut), (xxuicj,", the brackets, figures and letters "(jocya), (xxuO , [xxulQ , [xxuua)," shall be substituted;

(2) for the words "one hundred and sixty-five thousand rupees", at both the places where they occur, the words "two hundred and sixty-five thousand rupees" shall be substituted;

(3) after the proviso, the following proviso shall be inserted, namelyi—

"Provided further that where the assets of the assessee include any assets, being units referred to in clause [XXJ] or any deposits referred to in clause (xxua), wealth-tax shall not be payable by the aseeeeee in respect of, and there shall not be included in the net wealth of the assessee, ao much of the value of such assets as has not been excluded from the net wealth of the assessee under this sub-section; so, however, that the value of the assets excluded under this proviso shall not exceed thirty-five thousand rupees. ";

[ICQ In qub-section (3), for the brackets and figures "(xxut), [xxM] .", the brackets, figures and letters "(xxm), (went), (xxuiO, (xxwafl)," shall be substituted;

(6) In section 2 1 A ,-

(1) for the portion beginning with the brackets, figure and words MU) *ny part of such property" and ending with the words "beneficial to the revenuei", the following shall be substituted, namely:—

"(•i) any part of such property or any Income of such trust _/"whether derived from such property or from voluntary contribution* referred to In

sub-clause [Ua) of clause 124) of section 2 of the Income-tax Act_7ls used or applied, directly or indirectly, for the benefit of any person referred to In sub-section (3) of section 13 of the Income-tax Act, or

(-".) any part of the Income of the trusts/whether derived from such property or from voluntary contributions referred to in sub-clause \Ua\ of clause (14) of section 2 of the Income-tax ActJ, being a trust created on or after the 1st day of April, 1962, enures, directly or indirectly, for the benefit of any person referred to in sub-section (3) of section 13 of the said Act, or

(Hi) any funds of the trust are Invested or deposited, or any shares in a company are held by the trust, in contravention of the provisions of clause (d) of sub-section (I) of section 13 of the Income-tax Act,

wealth-tax shall be leviable upon, and recoverable from, the trustee or manager (by whatever name called) In respect of the property held by him under trust at the maximum marginal rate:";

(2) in the Exf&mtam. below the second proviso, after clause (a), the

following clause shall be inserted, namely: —

'[aa] "maximum marginal rate" means the rate of wealth-tax applicable

in relation to the highest slab of wealth in the case of an individual as speci- fied In Part I of Schedule I;'.

CHAPTER IV

JNDIBECT TAXES

Custom

35. The Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff

•sendment of -t 51 of 1975.

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

36. (I) In the case of goods mentioned In the First Schedule to the Customs Tariff

Auxiliary dutias of customs.

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, cf 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).

52 of IP62

KZ) Sub-section (J) shall cease to have effect after the 3lst day of March, 1985,

10 of 1897- except as respects things done or omitted to be done before such coseer; and section 6 of the General Clauses Act, 1897, shall apply upon such eesser ae If the said sub- section had then been repealed by a Central Act.

(3) The auxiliary duties of customs referred to in sub-section (?) shall bo 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.

14) The provisions of the Customs Act and the rules and regulations made there- under, 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 dutlea of customs leviable under this section in respect of any goods as they apply In relation to the levy and collection of the duties of customs on such goods under that Act or*.nose ruleB and regulations, as the case may be,

37. In section 28 of the Customs Act, In sub-section (7 /,after the proviso, the

tnendoiMit of ectlon 28-

following txf&watwH shall be Inserted, namely:-

" bipCamtum. — Where the service of the notice is stayed by an order of a

Court, the period of such stay shall be excluded in computing the aforesaid period of one year or six months or five years, as the case may be. ".

38. In section 61 of the Customs Act, to sub-section 12), the following proviso shall Amendment of section 61.

be added, namely: —

'"Provided that the Board ma\, if it considers it necessarv no to Jo in the public interest, waive, by special order and under circumstances of an exceptional nature to be specified in such order, the whole or part of any interest payable under this sub-section in respect of any warehoused goods. ".

39. In section 129 of the Customs Act, —

Amendment of •auction 129.

(j) for sub-section U). ttie following sub-sections shall be substituted, namely:—

"(2) A Judicial member shall be a person who has for at least ten w a rs held a. judicial office in the territory of India or'who has been a member of thu Central Legal Service and has held a post in Grade I of that service or any equivalent or higher post for at least throe Years, or who has been an advocate lor at least ten years.

bopSamjUon• — For the purposes of this sub-seetionf —

[•I] in computing the period during which a person has held judicial office in the territory of India, there shall be included any period, after he has held anv judicial office, during which the person has been an advocate or has held the office of a member of a tribunal or any post, under the .Union or a State, requiring special knowledge of law;

(X/t) in computing the period during which a person has been an advocate, there shall be included any period during which the person his held a Judicial office or the office of a member of a tribunal or anv post, under the Union or a Stnte, requiring special knowledge of law after he became an advocate.

(M) A technical member shall be a person who has been a member of the Indian Customs and Central Excise Service, Group A, and has held the post of Collector of Customs or Central Kxclse or any equivalent or higher post for at least three years. ";

(6) after sub-section (•"/" 'he following sub-section shall be inserted,

namely:—

"(4t\] The Central Government may appoint one of ihc Vice-Presidents o£ the Appellate Tribunal to be the Senior Vicc-President thereof.";

(c) in sub-section [$), for the words "The Vice-President", the words

"The Senior Vice-President or a Vice-President" shall be substituted.

40. In section 129A of the Customs Act,—-

Amendment of

section 129A.

(a) In sub-section I 1) in the proviso, for the words "Provided that", the follow- ing shall be substituted, namely.-—

"Provided (hat. no appeal shall lie to the Appellate Tribunal and the Appellate Tribunal shall not have jurisdiction to decide any appeal in respect of any order referred to in clause (t>) if such order relates to, —

(a) any goods Imported as baggage}

(fa) any goods loaded in a conveyance for Importation into India, but which are nol unloaded at their place of destination In India, or so much of the quantity of such goods as has not been unloaded at any auch destination if goods unloaded at such destination a re short oi the quantity required to be unloaded at that destination;

la) payment of drawback as provided in Chapter X, and the rules made thereunder.

Provided further that!¹.

[b] after sub-section ( 1 ),the following sub-section shall be Inserted, namely: —

" (IA) Every appeal against any order of the nature referred to In the first proviso to sub-section (/) .which is pending immediately before the commence- ment of section 40 of the Finance Act, 1984, before the Appellate Tribunal and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on such commencement to the Central Government and the Central Government shall deal with such appeal or matter under section 129DD as if such appeal or matter were an application or a matter arising out of an application made to it under that section. ".

41. In section 129C of the Customs Act, in sub-section (4), for the words "ten mandment of Mcuon 129C. thousand rupees", the words "fifty thousand rupees" shall be substituted.

mandinent ol

42. In section 129D of the Customs A c t, in sub-section (3) r for the words "two

•ctloo 129D.

years", the words "one year" shall be substituted,

43. After section 129Dof the Customs Act, the following section shall be inserted,

nicnion ol

_m •action

namely:—

l " D B.

•vision by

Jentrtl

Jov"nun*t>t.

• 129DD. []) The Central Government may, on the application of any person aggrieved by any order passed under section 128A, where the order is of the nature referred to in the first proviso to sub-section (I) of section 129A, annul or modify such order.

Exptantiwn. — For the purposes of this sub-section, 'order passed under section 128A"includes an order passed under that section before the commencement of section 40 of the Finance Act, 1984, against which an appeal has not been preferred before s-uch commencement and could have been, if the said section had not come into force, preferred after such commence- ment, to the Appellate Tribunal.

(2) An application under sub-section (J) shall be made within three months

from the date of the communication to the applicant of the order against which the application Is being made:

Provided that the Central Government may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the aforesaid period of three months, allow it to be presented within a further period of three months.

(3) An application under sub-section (I) shall be in such form and shall be verified in such manner as may be specified by rules made in this behalf and shall be acoompanied by a fee of two hundred rupees.

(4) The Central Government may, of its own motion, annul or modify

any order referred to in sub-section ( I) .

(5) No order enhancing any penalty or fine in lieu of confiscation or

confiscating goods of greater value shall be passed under this section,—

(a) in any case in which an order passed under section 128A has enhanced any penalty or fine in lieu of confiscation or has confis- cated goods of greater value, and

lb)in any other case, unless the person affected by the proposed

order has been given notice to show cause against it within one year from the date of the order sought to be annulled or modified.

(6) Where the Central Government is of opinion that any duty of customs

has not been levied or has been short-levied, no order levying or enhancing the duty shall be made under this section unless the person affected by the proposed order in given notice to show cause against It within the time limit specified in section 2 * .' -

Excise

1 of 1944.

A"*dm*tt of 44. In section 2 of the Central Excises and Salt Act, 1944 (heroin- after referred to as the Central Excises Act),in clause [Q, after sub-clause (WAA.) , the following sub-clause shall be inserted, namely:—

*r(-tx) in relation to artificial or synthetic reaina and plastic materials,

includes their conversion into moulding powders;",

45. In sections of the Central Excises Act, in sub-section (JJ^in theproviso,—

Amandmmt of section 3.

(a) for the words "excisable goods which are produced or manufactured

in a froe trade zone and brought to any other place in India shall be an

amount equal to", the following shall bo substituted, namely:—

"excisable goods which are produced or manufactured,—

W} in a free trade zone and brought to any other place In India; or

[li] by a hundred per cent, export-oriented undertaking and allowed

to be sold in India,

shall be an amount equal to'LJ

(b\ for Bfftomtim Z, the following ExptanXlm shall be substituted,

namely:—

'&ptot"twri 2. — In this proviso, —

U) "tree trade asone" means the Kandla 7 r s# Trade Zone tod the

Santa Cruz Electronics Export Processing Zone and includes any

other free trade zone which the Central Government may, by

notification in the Official Gazette, specify 1A this behalf;

[10 "hundred per cent, export-oriented undertaking" means

49 of m i.

an undertaking which has beejL approved as a hundred per oent.

export-oriented undertaking by the Board appointed in this behalf

by the Central Government in flxarciae of the powers conferred

by section 14 of the Industries (Development and Regulation)

Act, 1951, and the rules made under that Act.-'.

Amandmfnt of

••CtlOD 4.

SI of 1975.

4*. In "ub-section \4) of section 4 of the Central Excises Act, in Bub-olause

[iQ of clause (d), in the Explanation, in clause U), for the words "or reduction of

duty of excise on such goods equal to, any duty of exoise already paid", the words

and figures "orreduction of duty of excise under such Act on such foods equal to,

any duty of excise under such Act, or the additional duty under section 3 of the

Customs Tariff Act, 1976, already paid" shall be substituted.

47. In section 35Bof the Central ExciseB Act,—

Amandmwt of Mctlon 3SB.

(a) in sub-Bection (\), in the proviso, for the WOKIE "Provided that", the

following shall be substituted, namely:—

"Provided that no appeal shall lie to the Appellate Tribunal and the

Appellate Tribunal shall not have jurisdiction to decide any appeal in

respect of any order referred to in clause (6) if such order relates t o ,—

(a) a case of loaa of goods, where the loss occurs in transit from a

factory to a warehouse or to another factory, or from one warehouse to

another, or during the course of processing of the goods in a warehouse

or In storage, whether in a factory or In a warehouse;

(b) a rebate of duty of excise on goods exported to any country o".

territory outside India or on excisable materials used la the manu-

facture of goods which are exported to any country or territory out-

side India;

(c) goods exported outside India (except to Nepal or Bhutan) without

payment of duty;

Provided further t h a t ";

(6) after sub-section (I), the following sub-section shall be inserted,

namely:—

''(1A) Every appeal atjain.st any order of the nature referred to in

the first proviso lo vjb-scction [I] , which is pending immediately

before the commencement of section 47 of the Finance Act, 1984, before

the Appellate Tribun-tl and any matter arising out of, or connected with,

such appeal urd which is so [jendiri^ khuJl Ktand transferred on such

conimcncement to lbs Central Government, and the Central Government

Khali deal with such appeal or matter under section 35EE as if such appeal

or mutter were an application or a matter arlBing out of an application

made to it under thctf section. ".

48. In section 35D of the Central Kxciscs Act, in sub-section (3), for

Amendment of

section 35D.

the words "ten thousand rupees", the words "fifty thousand rupees" shall be substituted.

49. In section 3HE of the Central E>:cist£" Act, in sub section (3) , lor tho words Amandmont of section 35E. "two y e a r s ", the words ''one y e a r" shall b"- subs>uiuind.

SO- After section 35E of the Central Excises Act, the following section shall be

Inserted, namely:—

Insertion of

new section

35EE.

35EE. (I) The Central Government may, on the application o( ;iny person

Revision by

Ci-ntml

Government,

aggrieved by any order passed under section 3SA, where the order is of the nature referred to in the first proviso lo sub-section (,11 of section 3511, annul or modify such older.

Explanation-~-¥ or Ihe purposes of this sub-section, "order pn.SM d under

section 3SA" Include* an order passed under that section hrforc the commencement of section 47 of the Finance Act, 1984 against which .in appeal has not been p r e- ferred before ouch commencement and could have been, if the said section h;ul not come into force, preferred after.such commencement, to the Appell.iie Tribunal.

[Z) An application under sub-section ID •hall be made within three months from the date of the communication to the applicant of the order against which the appli- cation Is being made:

Provided that the Central Government may. If It is satisfied that the applicant

was prevented by sufficient cause from presenting the application within the afore- said period of three months, allow it to be presented within a further period of

three months.

(3) An application under Bub-section (1) shall be In such form and shall be

verified in such manner as may be specified by rules made In this behalf and shall be accompanied by a fee of two hundred rupees.

(4) The Central Government may, of its own motion, annul or modify any order referred to in sub-section (I),

(5) No order enhancing any penalty or fine in lieu of confiscation or confiscating goods of greater value shall be passed under this section,—

(iO in any case In which an order passed under section 35A has enhanced

any penalty or fine in lieu of confiscation or has confiscated goods of greater

value, and

(6) in any other case, unless the person affected by the proposed order hao been given notice to show cause against It within one year from the date of the order sought to be annulled or modified.

(6) Where the Central Government is o£ opinion that any duty of excise lias not been levied or has been short-levied, no order levying or enhancing the duly shall be made under this section unless the person affected by the proposed order is given notice to show cause against it within the time limit specified in section 11A.'¹.

51. The F i r st Schedule to the Central Excises Act,—

Amendment of First Schedule.

[a] s h a ll be a m e n d ed in t he m a n n er specified in t he T h i rd Schedule; and

[b] s h a l l, with effect from such date as the Cent m l ' G o v e r n m e nt m a y, by n o t i f i- cation in t he Official G a z e t t e, a p p o i n t, be a l so a m e n d ed in the m a n n er specified in the F o u r th S c h e d u l e.

52. (I) In t he c a se of goods c h a r g e a b le v.lth a duty of e x c i se u n d er the C e n t r al

Special diMios of excise, 10 of 1897.

Ameodojant ok Act 58 of 1957 Amendment o Act 52 of JC- [b) in Exptanatian I , -

lb) in sub-section (3) of section 82, for the words "two yearn", the words "one year" shall be substituted.

Vzctnna.jU.on undeA the. PkoV'U'ional

Colle.vUon o& Taxu Ac*J93J.

It Is hereby declared that tt Is expedient In the public Interest that the provisions of clauses 35, 36, 44 and 46, sub-clause (a) of clause 51 (except Part I of the Third Schedule) and clauses 52 and 53 of this Bill shall have Immediate effect under the Provisional Collection of Taxes Act, 1931.

16 of 1931.

THE FIRST SCHEDULE

(See. section 2)

PAHT I

INCMME-TAX AND SimCHAHGE ON INCOME-TAX

Vtxha.QKa.ph. A

Sub-PaAn.QA.aph I

In the case of every individual or Hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial Juridical person referred to in sub-clause [vU.) 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, -

Rated o$ J.n

(1) where the total income Hoes not exceed M£;

Ra. 15,000

(2) where the total income exceeds R s. 15, 000 26 per cent.of the amount by which the total income but doea not exceed RB. 20,000 exceeds R J B . 1 5 , 0 0 0;

(3) where the total income exceeds Rs.20,000 Rs. 1,260 p&a 30 per cent, of the amouMbv which but does not exceed Rg.25.000

the total income exceeds Rs.20,000;

(4) where the total income exceeds Re. 25, 000 Rs. 2 ,750 pti6 35 per cent, of the amount by which but does not exceed Rs. 30,000

the total income exceeds Rs. 25,000;

(5) where the total Income exceeds Rs.30,000 RB. 4,500 p^ 40 per cent, of the amount by which but does not exceed Hs.50,000

the total income exceeds Rs. 30,000;

(6) where the total income exceeds R s. 50, 000 R B. 12,500 ptu& 50 per cent, of the amount by which but does not exceed RB. 60,000

the total income exceedu R s. 50,000;

(7) where the total income exceeds Rs.60,000 Rs. 17,500 pfui 52.5 per cent, of the amount by but does not exceed Rs. 70,000 which the total income exceeds R8.60,000;

(8) where the total income exceeds Rs.70,000 Rs. 22,750 p&w 55 per cent, of the amount by which but does not exceed Rs. 85,000

the total income exceeds R". 70,000;

(9) where the total Income exceeds Rs.85, 000 Rs. 31,000 ptub 57. 5 per cent, of the amount by but does not exceed Rs. 1, 00, 000 which the total Income exceeds Rs. 85, 000;

(10) where the total income exceeds Rs. 39,625 ptui, 6 0 p er cent, of the amount by which Rs. 1,00,000

the total income exceeds Rs. 1,00,000.

ZafichoAQZ on Incom-tax.

The amount of income-tax computed in accordance with the preceding provision^ of this 3ub-Para- graph 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~Pa.Aja.gia.pli 11

In the case of every Hindu undivided family which at any time during the previous year hao 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, —

Ratej 0(J intomi-iax

(1) where the total income does not exceed Hit;

Re, 8,000

(2) where the total income exceeds RB. 8,000 22 per cent, of the amount by which the total l n- but doe* not exceed RB. IB,000 come exceeds RB. 8,000;

(3) where the total Income exceeds R B. 15,000 R B. 1,540 pbu, 27 per cent, of the amount by which but does not exceed R". 20,000

the total income exceed* R". Ifi,000;

(4) where the total income exceeds Ra. 20,000 Rs. 2,890 pfaA 35 per cent, of the amount by which but does not exceed Rs. 25, 000

the total income exceeds R8. 20,000;

(5) where the total income exceeds Rs.25,000 Rs4,640pftJi 40per cent, of the amount by which but does not exceed Rs. 30,000

the total income exceeds Rs. 25,000;

(6) where the total income exceeds Rs.30,000 Rs. 6,640 piu& 50 per cent, of the amount by which but does not exceed Rs. 50,000

the total income exceeds Rs. 30,000;

(7) where the total income exceeds R s. 50, 000 Rs. 16,640 pfui 60 per cent, of the amount by

which the total income exceeds Rs, 50, 000:

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

U.) no Income-tax shall be payable on a total income not exceeding Rs. 12,000;

[li] where the total income exceeds Rs, 12,000 but does not exceed RB. 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.

SuAchaAge. on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Para- graph shall be increased by a surcharge for purposes of the Union calculated at the rate of twelve and a half per ct-nt. of such income-tax.

Paiagnaph A

In the case of every co-operative society, —

RatQA 0(5 income.-tax.

    (1)  where  the  total  income  does  not  exceed        15 per  cent,  of  the  total  income;
Ra.10,000
    (2)  where  the  total  income  exceeds  Ra.  10, 000    Ra.  1,500  pfoj  25 per  cent,  of  the  amount  by  which
but  does  not  exceed  Rs. 20, 000                          the  total  income  exceeds  RB.  10, 000;
    (3)  where  the  total  income  exceeds  Rs.20,000       RB. 4,000p&t4  40 per  cent,  of  the  amount  by  which
                                                             the  total  income  exceeds  Rs. 20,000.

SuAchaAge. on incorm-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph ehall 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.

PamxgKapk C

Sab-VaKagiaph 1

In the case of every registered firm, not being a case to which Sub-Paragraph II of this Paragraph applies, —

Ra-tea o$ incon\n.-tax

(1) where the total income does not exceed Hit;

Rs.10,000

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

(3) where the total income exceeds Rs.25,000 RB. 750 ptm, 7 per cent, of the amount by which but does not exceed Rs. 50,000

the total income exceedB Rs. 25,000;

(4) where the total income exceeds Rs.50,000 Rs.2,500p&LS 15 per cent, of the amount by which but does not exceed Rs. 1,00,000

the total income exceeds Rs. 50,000;

(5) where the total Income exceeds R s. 1,00,000 Rs. 10,000 pbik 24 per cent, of the amount by which

the total income exceeds Rs. 1,00,000.

SuAchaAgz on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Para- graph 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-Paiagiaph 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 ouch total income, —

Roto oft wsomz-tax.

(1) where the total income does not exceed Wo£;

Rs. 10,000

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

(3) where the total income exceeds RB.2f>,000 Rs.600p&x6 7 per cent, of the ;imount by which but does not exceed Rs. 50,000

the total income exceeds Ra. -5,000;

(4) where the total income exceeds R s. 50, 000 Rs. 2 ,350 p£os 13 per cent, of the amount by but does not exceed Rs. 1,00,000 which the total income exceeds Rs, 50,000;

(5) where the total income exceeds R s. 1,00,000 Rs. 8,850p&.& ^ p e r c e n t, of the amount hy

which the total income exceeds Rs, 1,00,000.

Su/tctoflC on •iytcarc-&ot

The amount of income-tax computed In accordance with the preceding provisions of this Suh-Para- graph shall be increased by a surcharge for purposes of the Union calculated ;it the rate of twelve and a half per cent, of such income-tax.

ExptamXiuon. — For the purposes of this Paragraph, ''registered firm" Includes an unregistered firm assessed as a registered firm under clause (fa) of section 183 of the Income-tax Act.

In the case of every local authority, —

Rate, o-fa income.-tax

On the whole of the total income 50 pe r cent.

SaA.ch.aAge, on income.-tax

The amount nf income-tax computed in accordance with the preceding proviwuma 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,

, , „ Van.aqn.aph E

In the case of a company, —

Ratio, o£ income. tjx

I. In the case of a domestic company,—

(1) where the company is a company in which 55 per cent, of the total Income;

the public are substantially interested

(2) where the company is not a company in

which the public are substantially interested —

(i) in the caae of an industrial company 00 per cent, of the total income;

(-U.) In any othe:' case 65 per cent.of the total income.

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

[$ on so much of the total Income as consists of —

(a) royalties received from Government or

an Indian concern in pursuance of an agree- ment made by It with the Government or the Indian concern after the 3let day of March, 1901 but before the 1st day of April, 1976, or

(6) fees for rendering technical services received from Government or an Indian con- cern in pursuance of an agreement made by It with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976,

and where such agreement has, in either case, 50 per cent.;

been approved by the Central Government

1-cc) on the balance, if any, of the total 70 per cent,

income

SuAchatgiL on lnc.oim.-tax

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

PART II

Ra£z& ^OK deduction o& tax at 60UAC.IL in c2Ateu.n caidA

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

Income-tax Rate of Rate of Income-tax surcharge

i. In the case of a person other than a oompany —

(a) where the person is resident in India —

[^) on income by way of interest other 10 per cent. Hit;

than "Interest on securities"

[ti\ on income by way of winnings from 30 per cent. 3. 75 per cent;

lotteries and crossword puzzles

[-CLQ on income by way of winnings from 30 per cent. 3. 75 per cent;

horse races

l-cv) on income by way of Insurance 10 per cent. fxt£;

commission

(u) on income by way of interest pay- 10 per cent. mji-

able on

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

(8) any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

42 of 1956.

|C) any debentures issued by a com- pany where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1966, and any rules made thereunder

(IRJ on any other income (excluding in- 20 per cent. 2. 5 per cent.;

terest payable on a tax-free security)

(b) where the peraon is not resident in

India —

[i) in the case of a non-resident Indian—

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

term capital gains

IB) on income by way of interest 15 per cent. 1.875 per cent.;

payable on a tax-free security

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

per ocnt. of the amount of the income,

or

Income-tax and surcharge on Income-tax In res- pect of the income at the rates prescribed In Sub-Paragraph I of Paragraph A of Part in of this Schedule, If such Income had been the total Income,

whichever Is higher;

Income-tax Rate of Rate of i n c o m e ^\ surcharge

[Li] in the case of any other person —

(A) on the whole of the income (ex clud- income-tax at 30 per cent, and surcharge at 3.75 ing interest payable on a tax-free security) per cent, of the amount of income,

or

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

whichever is higher;

1.875 per c e nt

15 per cent.

(B) on income by way of interest

payable on a tax-free security

2. In the case of a company —

(a) where the company Is a domestic

company —

1 per cent;

20 per cent.

[-0 on Income by way of Interest other

than "Interest on securities"

1. 075 per cent.;

21.5 per cent.

[AA] on any other income (excluding

interest payable on a tax-free security)

(6) where the company is not a domestic

company —

25 per cent.

[•i] on Income by way of dividends pay-

Nit;

able by any domestic company

M<£;

25 per cent.

[jJJi on income by way of interest payable

by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency

(•UX.) on Income by way of loyalty payable by Government or an Indian con- cern in pursuance of an agre'ement made by It with the Government or the Indian concern after the 31st day of March, 1976, where such royalty is in consideration 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 (JA) of section 115A of the Income-tax Act, to the Indian concern

HO.;

40 per cent,

[iu) on income by way of royalty [not being royalty of the nature referred to In Bub-item (fr) [AM)] 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 has been approved by the Central Government, —

(AJ where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976

(B) where the agreement is made after the 31st day of March, 1976 —

Income-tax

Rate of Rate of income-tax surcharge

,

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

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 speci- fication relating to any patent, i n- vention, model, design, secret, formula or process, or trade mark or similar property

(2) on the balance, if any, of such -10 per cent. Kit.;

income

(\j) 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 percent;

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

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

after the 31st day of March, 1976

[\ji) on income by way of interest 44 per cent. 2. 2 per cent;

payable on a tax-free security

(uu.) on any other income 70 per cent. 3.5 per cent.

Expiamtwn. — For the purposes of this Part, 'investment income", "long-term capital gains" and "non-resident Indian" shall have the meanings assigned to them in Chapter XII-A of the Income-tax Act.

PART III

RaA hoi calculating on changing income.-tax in ceM∈ COAVA , deducting lnc.ome.~tax ^nom

Income, chan.ge.able. undeA the. he.ad "Salaiiu" on any payment ne.l

oi fiction 80E and computing "advance, tax".

In caseB 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 (?) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deducted under section 192 of the aald Act from income chargeable under the head "Salaries" or Heducted under suh-section (9) of section SOE 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 he computed, at the rate or rates in force, such income-tax or, as the case mny be, "advance tax' /not being "advance tax" in respect of any in- come chargeable to tax under Chapter XII or Chapter XII-A or sub-section (/A) of section lei or section 164 or section 164A or section 167A of the Income-tax Act at the rales as specified in that Chapter or Bectiony, shall be so calculated, charged, deducted or computed at the following rate or rates:—

Panagnaph A

Sub-PanaQiaph I

In the case of every individual or Hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial Juridical person referred to in sub-clause [uiQ 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, —

Ratte o{j incomz-tax

(1) where the total income does not exceed Kit;

Rs.15.000

(2) where the total Income exceeds 20 per cent, of-the amount by which the total income Ro.15,000 but aoes not exceed Rs.20.000 exceeds Rs.15,000;

     (3)  where  the  total  income  exceeds                R s . l , 0 0 0 p £ ui  25 per  cent,  of  the  amount  by  which
Y R S . 2 0 , 0 00  but  does  not  exceed  Rs.25,000      the  total  Income  exceeds  Rs.20,000;
     (4)  where  the  total  income  exceeds                R s . 2 , 2 50  plub  30 per  cent,  of  the  amount  by  which
 Rs.25,000  but  does  not  exceed  Rs  30,000              the  total  income  exceeds  R s . 2 5 , 0 0 0;
     (5)  where  the  total  income  exceeds                R s . 3 , 7 5 0 p £ ui  35 per  cent,  of  the  amount  by  which
 Rs.30,000  but  does  not  exceed  Rs.40,000               the  total  income  e x c e ed  Rs.30,000;
     (6)  where  the  total  income  exceeds                Rs. 7, 250.plus 40 per  cent,  of  the  amount  by  which
 R B . 4 0 , 0 00  hut  does  not  exceed  Rs.50,000        the  tofcil  income  exceeds  Rs. 40, UO0;
     (7)  where  the  total  income  exceeds                Rs. 11,250  pZui  45  per  cent,  of  the  amount  by  which
 Rs.50,000  but  does  not  exceed  R s . 7 0, 000          the  total  income  exceeds  Rs. 50,000;
     (8)  wheie  the  total  income  exceeds                Rs. 20,250  plu.4  50 per  cent,of  the  amount  by  which
 Rs.70,000  but  dpes  not  exceed  R s. 1,00,000           the  total  income  exceeds  R s . 7 0 , 0 0 0;
     (9)  where  the  total  income  exceeds                Rs.35,250  plu&  55 per  cent.of  the  amount  by  which
 Rs.  1,00,000                                              the  total  income  exceeds  Rs.  1,00,000.

Su^iahaKge. on incomz-tax

The amount of income-tax computed in accordance with the preceding provisions of this Sub- Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twelve and a half per cent of such income-tax.

Sab-Panagnaph II

In the case of every Hindu undivided family which at any time during the previous \ e ar has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st. day of April, 1985 exceeds Rs.15,000,—

Rate.4 u^ income.-tax

(1) w h e re the total i n c o me d o es not exceed bu£}

Rs. 8,000

(2) where the total income exceeds 212 per cont.of the amount by which the total R s. 8,000 but does not exceed Rs. ]5,uoo income exceeds R s , 8 , 0 0 0;

(3) where the total income exceeds R s. 1,540 p&ia 27 per cent.of the amount by which Rs.15,000 but does not exceed Rs.20,000 the total income exceeds Rs.15,00(3;

(4) where the total income exceeds Re. 2,890 p&a35 per cent, of the amount by which Re.20,000 but does not exceed Re. 25,000 the total income exceeds Re.20,000;

(5) where the total income exceeds Rs.4,640 p6<4 40 per cent, of the amount by which Re.25,000 but does not exceed R s. 30,000 the total income exceeds Rs.25,000i

(6) where the total income exceeds Rs.6,640 p&4 50 per cent, of the amount by which Its. 30,000 but does not exceed R s, 50,000 the totalinoome exceeds R s . 3 0 , 0 0 0;

(7) where the total income exceeds Rs.16,640 p&W 60 per cent, of the amount by which Rs.50,000

the total income exceeds R s . 5 0 , 0 0 0:

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

U) no income-tax shall be payable on a total income not exceeding Rs.12,000;

[H] where the total income exceeds Rs.12,000 but does not exceed R s. 17,610, the income-tax payable thereon shall not exceed forty per cent, of the amount.by which-tho total income exceeds Rs.12,000.

SuA.chaA.gz on income.-tax.

The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of tho Union calculated at the rate of twelve and a half per cent.of such income-tax.

Paiag-iaph 8

In the case of every co-operative society,—

Ra^Ci o^ income.-tax

(1) where the total income does not exceed 13 per cent, of the total income;

Rs.10,000

(2) where the total income exceeds R s. 1,300 p&u, 25 per cent, of the amount by which Rs.10,000 but does not exceed R s. 20,000 t he total income exceeds Rs.10,000;

(3) where the total income exceeds Rs.4,000 piiM 40 per cent, of the amount by which Rs.20,000

the total income exceeds Rs.20,000,

SiuAdkaAQt, on 'income.-tax.

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge for purposes of the Utuon calculated at the rate of twelve and a half per cent, of such income-tax.

Pax.agia.nh. C

Sub-Paiaqiaph I

In the case of every registered firm, not being a case to which Sub-Paragraph Ji of this Paragraph applies, —

RateA O(J -income-tax.

(1) w h * re t he total i n c o me does not <'xcc<-jil Hit;

Rs.W.OOO!

(2) w^bere t he total i n c o me e x c e e ds 5 p er cent, of t he amount by which the total R s . 1 0 , 0 00 but d o es not exceed R s. 2 5 , 0 00 i n c o me e x c e e ds R s . 1 0 , 0 0 0;

(3) where the total income exceeds Rs.750 ptuA 7 per cent, of the amount by which Rs.25,000 but does not exceed Rs. 50,000 the total income exceeds Ha. 20, 000:

(4) where the total Income exceeds Rs.2,500 pfat, Vj per cent, of the amount by which Rs. 50,000 but does not exceed Rs.1,00,000 the total income exceeds Its.50,000;

(5) where the total income exceeds Rs. 10,000 p&w 24 per cent, of the amount by which Rs.1,00,000

the total income exceeds* Rs. 1,00,000.

Su.ichaA.giL on -income-tax

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

Sutx-PaAOLgiayh 11

In the case of every registered firm whose total income include*) Income derived from a profession carried on by it and the Income so included iw not less than fifty-one per cent, of such total Income,—

RatfA O(J -income-tax

(1) where the total income does not exceod nil;

Rs.10,000

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

(3) where the total Income exceeds Re. 600 ptu6 7 per cent, of the amount by which "" Rs.25,000 but does not exceed Rs. 50,000 total income exceeds Ro. 25,000;

(4) where the total Income exceeds RB.2,350 ptu& 13 per cent, of the amount by which Rs.50,000 but does not exceed Rs.1,00,000 the total Income exceeds Re.50,000;

(5) where the total Income exceeds Rs. 8,850 pLu 22 per cent, of the amount by which Rs.1,00,000

the total Income exceeds Rs.1,00,000.

SuA.cha.ige. on lntom.-X.ax

The amount of Income-tax computed la accordance with the preceding provisions of this Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rale of twelve and a half per cent- of auoh income-tax.

Exptomtijon--— For the purposes of this Paragraph, "registered firm "includes an unregistered firm assessed ae a registered firm under clause (fa) of section 183 of the Income-tax Act.

Va.ha.QKa.ph V

In the cane of every local authority ,—

Rate o£ incoma-tax

On the whole of the total Income 50 per cent.

Su.idn.oAgz on lnc.omQ.-tax

The amount of Income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twelve and a half per cent, of such income-tax.

VaAaQiaph E

In the case of a company. —

Rare* a{j income.-tax

I. In the case of a domestic company^—

(1) where the company i& a company in 55 per cent, of the total income;

which the public are substantially interested

(2) where the company is not a company

in which the public are substantially interested—

(i) in the case of an industrial company 60 per '-eat. of the total income;

l-uj in any other case 65 per cent, of the total income-.

IL In the case of a company other than a domestic company,—

tO on BO much of the total income un

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 after tho 31st day of March, 1961 but before the I at duy of April, 1976, or

16) fees for rendering technical aorviceu

received from Government or an Indian concern in pursuance of an agreement made by It with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976,

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

to.) on the balance, if any, of the total 70 per, cent.

Income

Sun.chai.gz on income-tax

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

PART IV

/ " S ee section 2(8)(e)7

BULKS roa c OMPUYATION OF HKT AGRICULTURAL INCOME

ftite 1. — Agricultural income of the nature referred to In sub-clause (a) of clause m of section 2 of the Income-ta* Act shall be computed as if it were Income chargeable to Income-tax under that Act under the head "Jhoome from other sources" and the provisions of sections 57 to 59 of that Act shall, BO far as may be, apply accordingly*

Provided that sub-Bectiou(2) of section 58 shall apply subject to the modification that the roferenee to section 40A therein flhfill be construed ao not Including a referenoo to Bub-sectlons (3) and (4) of section 40A.

Jhte. 2. — Agricultural income of the nature referred to iu Bub-clause (6) or sub-clause (c) of clause (/) of flection 2 of the Income-tax Act pother 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 rentr In-kind referred to la the said 8ub-claufle(£j7 shall bo computed as if it were income chargeable to income-tax under that Act, under the head "Profita and gains of business or profession "and the provisions of sections 30, 31, 32, 34, 36, 37, 38, 40, 40A j/fither than sub-sections (3) and [4) thereof, 41,43 and 43A of the Income-tax Act shall, so far as may bo, apply accordingly.

KW!e 3. — Agricultural income of the nature referred to In sub-clause (c) of clause (/) 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 [t] shall be computed as if it were income chargeable to income-tax under that Apt under the head "Income from house property "and the provielons 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 Bhali apply subject 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 VlA"shall be omitted.

Rife 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 iu India, suoh income shall be computed in accordance with rule S of the Income-tax Rules, 1962, and sixty per cent, of suoh income shall be regarded as the agricultural income of the assessee.

Rite 5. — Where the assosaeo is a partner of a registered firm or an unregistered firm assessed aa a registered firm under clause (6) of section 183 of the Income-tax Apt, 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 (6) of the said section 183 and which in the previous year has either no inoome chargeable to tax under the Inoome-tax Act or haa total income not exceeding the maximum amount not chargeable to tax in the case of an unregistered firm but has any agricultural income, then, the agricultural income or loss of the firm shall be computed in accordance with these ruleB and his share in the agricultural inoome or loss of the firm shall be computed in the manner laid down in sub- section (J), sub-section (2) and sub-section (3) of section 67 of the Inoome-tax Act and the chare so computed shall be regarded as tha agricultural income or loss of the assessee.

Me. fl. — Where the aBBessee is a member of an association of persons or a body of individuals- (other than u. Hindu undivided family, a company or a firm) which in the previous year has either no Inoome chargeable to tax under the Income-tax Act or haa total inoome not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of Individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income, then, the agricultural income or Jose o/ the association or body shall be computed in accordance with theee rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural inoome or loss of the assossee-

9u£z 7, — Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loaa shall be set off against the inoome 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 (6) of section 183 of the Income-tax Act or is a member of an assoclap tion of peroone or a body of individuals and the share of the assessee in the agricultural inoome 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.

fa& 8, — Any sum payable by the asaessee on account of any tax levied by the State-Government on the agricultural income shall be deducted in computing the agricultural Income.

ftife 9. -(/) Where the assesses has, in the previous year relevant to the assessment year commenc- ing on the 1st day off April, 1984, any agricultural income and the net result of the computation of the agricultural inoome of the assessee for any one or more of the previous years relevant to the assess- ment years commencing on the 1st day of April, 1D78 or the let day of April, 1377 or the 1st day of AprilB 1*78 or the lot day of April* 1979 or the 1st day of April, 1980 or the 1st day of April, 1981 or the l"t day of April, 1982 or the 1st day of April, 1983, is a loss, then, for the purposes of aub-fleotlon (2) of Motion 2 of this Act,—

(,i) the loos 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 get off against the agricul- tural income for the previous year relevant to the assessment year 'joramencing on the 1st day of April, 1977'or the 1st day of April, 1S78 or tbo l et day of April, 1979 or the lat daj of April, 1980 or the 1st day of April, 1981 or the l et day of April, 1982 or the 1st day of April, 1983,

,[li) the losa 90 computed for the previous year relevant to the assessment year cc-mmem-Jiii;

on the l et day of April, 1S77, to the extent, if any, such Loss hao not been set off against the agricultural income for the previous year relevant to the assessment year commencing im the 1st day of April, IWb or the 1st day of April, 1979 or the l et day of April, 1980 or the 1st day of April, 1981 or the 1st day of April. 1982 or the l at day of April, 1983,

titi) the; loss eo computed for the previous y_>ar relevant to the assessment year comnnancing on the l at day of April, 1978, to the extent, if any, such loaa has not been get off agatwst the "gricul~ turol Income for the previous year relevant to the assessment yetr commencing -m the 1st day of April, 1979 or the 1st day of April, 1980 or the lat day of April, 19*1 or the l at day of April, 1982 or the 1st day of April, 1983,

\iu) the loss so computed for the previous year relevant to the assessment year commencing on the l et day of April, 1079, 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 lflt day of April, 1980 or Uie 1st doy of April, 1381 or the 1st day of April, 1982 or the 1st day of April, 1983,

(u) the loss BO computed lor 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 u^ricul- tural income for the previous year relevant to the assessment year commencing on the" 1st day of April, 1 981 or the 1st day of April, 1982 or the 1st day of April, 1983,

(UL) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of AprO, 1961, to the extent, if any, such loss h'is not been set off against the agricul- tural income for the previous year relevant to the assessment year commencing on the l et day of April, 1982 or the 1st day of April, 1983,

[vti.) the loss so computed for the previous year relevant to the assessment year commencing en the 1st day of April, 1982, to the extent, if any, such loss has not been eet off against the a g r l c J- tural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1983, and

[viu) the loss so computed for the previous year relevant to the assessment year commencing on the lflt day of April, 1983,

shall bo set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the l et day of April, 1984,

(2) Where the assesses has, in the previous year relevant to the assessment year commencing on the 1st day of April, MK5 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 agrlculturalinconne and the net result of the computation of the agricultural income of tho asseasee for any one or more of the previous years relevant to the assessment years commencing on the 1 st day of April, 1977 or the 1st day of April, 1978 or the ist day of April, 1979 or the 1st day of April, 1980 or the l 3t day of April, 1981 or the list day of April, 1982 or the 1st day of April, 1983 or the 1st day o<" April, 1984, is a loss, then, for the purposes of sub-section [6] of section 2 of th.it* A c t ,-

W the loss so computed for tne previous year relevant to the assessment year commencing on the lat 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 asseesment year commencing on the 1st day of April, 1978 or the 1st day of April, 1979 ot the 1st day of April, 1 980 or the 1st day of April, 1981 or the 1st day of April, 1982 or the 1st day of April, 1983 or the 1st day of April, 1984,

UVc) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 197W, 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 Aprilr 1980 or the lilt day of April,•! 9R1 or the 1 st day of April, 1982 or the l et day -if April, 198?, or the 1st day of April, 1984,

(•iitj the loss 00 compute! for the previous year relevant to the assessment year commencing on the 1st day oi April, 197 9, 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 or the 1 at day of April, 1981 or the 1st day of April, 1S82 or the 1st day of April, 1983 or the 1st day of April, 1984,

(.oi) 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, auch loss has not been set off against tiie 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 or the 1st day of April, 1984,

(i/) the loss so computed for the previous year relevant to the assessment year commencing on the 1 st 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, 1 982 or the 1st day of April, 1983 or the l et day of April, 1984,

(iw.) the loss so computed for tho previous year relevant to the aasessment year commencing on the 1st day of April, 1982, to the extent, if any, such loss has pot been set off against the agricul- tural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1933 or the 1 at day of April, 1984,

[ua.) the loss so computed for the previous year relevant to the aasessment year commencing on the 1st day of April, 1983, 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, 1984, and

|uiii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1984,

ehflil bo 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, 1985 or the period aforesaid.

(3) Where a change has occurred in the constitution of a firm, nothing in sub-rule (/) or sub-rule (2) shall entitle tho firm to set off eo much of the loss proportionate to the shar'e of a retired or deceased partner computed in the manner laid down in sub-section [/)jsub-section (2) and sub-section (3) of section 67 of the Income-tax Act as exceeds his share of profitw, if any, of the previous year in the firm, or entitle any partner to the benefit of any portion of the said loss (confuted in the manner aforesaid) which 1B not apportionable to him,

(4) Where any person deriving any agricultural income from any source has been succeeded in sucl capacity by another person, otherwise than by inheritance, nothing in sub-rule (J) or sub-rule (2) shall entitle any person, other than the person Incurring tho losa, to have it set off under sub-rule (;) or, a" the case may be, sub-rule (2),

(5] Notwithstanding anything contained in this rule, no loss which has not been determined by the 66 of 1976, 2Bof 1977. 19 of 1978- 21 of 1979. 44 of logo. 16 of 198 L 14 of 1982 11 of 1S"3.

Inoome-tax Officer under the provisions of these rules or the rules contained In P a rt TV of the FirstSchedule to the Finance Act, 1976, or of the F i r st Schedule to the Finance (No.2) Act, 1977, or of the Schedule to the Finance Act, 1978, or of the F i r st Schedule to the Finance Act, 1979,01' of the F i r st Schedule to the Finance (No. 2) Act, i960, or of the F i r st Schedule to the Finance Act, 1981, or of the F i r st Schedule to the Finance Act, 1982,or of the First Schedule to the Finance Act, 1983, shall be set off under sub-rule (/) or, as the case may be, sub-rule (2).

fcl& 10. — Where the net.result of the computation made in accordance with these rules Is a lose, the loos so computed shall be Ignored and the net agricultural income shall be deemed to be not, m

RjJte 11. — The provisions of the Income-tax Act relating to procedure for assessment (including the provisions of section 288A relating to rounding off of Income) shaU,wlth the necessary modifica- tions, apply In relation to the computation of the net agricultural Income of the assessee am they apply In relation to tho assessment of the total Income.

fo& 12. — For the purposes of computing the net agricultural income of the assessee, the Inoome-tax Officer shall have the same powers as he has under the Inoome-tax Aot for the purposes of assessment of the total income.

THE SECOND SCHEDULE

!SG£ section 35)

PART I

In the Ftrat Schedule to the Customs Tariff Act,—

(I) in Heading; No. 26. 02/04, for the entry In column (3), the entry "100% ** shall be substituted;

[U) in sub-heading No. (1) of Heading No. 27.10, for the entry in column (3), the entry "100%" shall. l"e substituted;

[,IJ1\ in Heading No. 27.12/13, for the entry in column (3), the entry "100%" shall be substituted;

(^v) in sub-heading No, (2) of Heading No. 53. 01/05, for the entry in column (3), the entry "100% p£uA Rfl. 10 per kilogram" shall be substituted;

lu) In Heading No. 98. 01/02, for the entry In column (3), the entry "200%" shall be substituted.

PART II

Heading Sub-heading No. and description of Rate of duty Duration when No.

article Standard Preferential rates of duty are

Areas protective

In the First Schedule to the Customs Tariff Act, for Heading No. 92.01/13,

the following Heading shall be substituted, namelyt-

"92. 01/13 Musloal instruments; Instruments and appli-

ances for recording or reproducing sound or both; television Image and sound recorders or reproducers) decoy calls and moutk-blown sound-signalling Instruments; parts and accessories of the above articles; prepared media for sound or similar recording; sound- recorded or similar media 100%

THE THIRD SCHEDULE

/See section 51 (a) 7

PART I

In the F i r st Schedule to th" Central Excises Act,—

W Item No. IF shall be omitted;

[ii) Item No. 11B shall be omitted; (IU.) Item No. 22D shall be omitted; (•iy) Item No. 23D shall be omitted; (u) Item No. 24 shall be omitted.

PART H

Item No. Description of goods Rate of duty __!!}

(2)

. J3J In the Flrs% Schedule to the Central Excises Act,—

U) In Item No. 4, under "II. Manufactured tobacco ", for sub-Item

(5), the following sub-Item shall be substituted, namely:—

'(J) Chewing tobacco, Including preparations commonly known as Thirty per cent

Item No. Description of goods Hate of <)uty 1 _(1)

(2)

..(3)

W tyres

[U) tubes and flaps

O n t! t t v n's a nd n nd t l vo hundred rupees per tyro. Sixty psr cent. ad vftfGtem,

II. Tyres for cycles and eyclo rickshaws —

( 1) tyreg

(2) tubes

Sixty ]"'.ise per lyre or fifteen per cent. ad w?o"Jim, whichever Is highar. Thirty pals*} per tube or fifteen pur tonf.

evcr is hlghor,

III Tyres for vehicles or equipments designed for use off Sixty per c.'snt,

the road

IV. All other tyres

ad ******* Twonty^fivt. j.er osnt.

Fxp&mtiM I "Motor vehicles" means all mechanically

propelled vehicles, other than tractors, designed for uye upon vo-^U,

&p&mdCtm Zf. — "Motor vehlclea", "tractors. Including c^rl-

cultural tractora" and "trailers" ahall Include a chaaslg; but shall not Include a vehicle running upon fixed r a i l s . ';

l-UQ In Item No. 59, for sub-Items (1) and (2), the following sub-

Items shall be substituted, namely:—

"(1) Magnetic tapes of width not exceeding 6. 5 millimetres Tv/cuty-flve per

for sound recording, whether In spools or In reels or In any cent. other form or packing, but excluding cassette tapes. ad va&Wn.

(2) Sound recorded -magnetic tapes of width not exceeding Twenty-five

6.5 millimetres, whether In spools or In reels or In any other P"r cent, form or packing, but excluding sound recorded cassette tapes. od vatotcnii .

THE FOURTH SCHEDULE

[Set. section 51 (6[_7

Description of goods

[tern No.

Rate of duty (3)

( 1)

(2)

In the First Schedule to the Central Excises Act,—

for Item No. 26A, the following Item aholl be substituted, namely:—

W

'26 A. COPPER AND PRODUCTS THEREOF —

"Copper" shall Include any alloy in which copper predominates

b;

y weight over each of the other metals.

(1) Unwrought copper in any form (refined or not including Five thousand and six hundred rupees per metrlo tonne.

blister copper and cement copper), including ingota, notched bars, wire bars, blocks, slabs, billets, shots, pellets, cathodes and cakes.

Exploration "—- This sub-Item Includes wire bars and

billets with their ends tapered or otherwise worked simply to facilitate their entry Into machines for converting them into, for example, wire rods or tubes.

(2) Waste and scrap of copper.

Five thousand and six hundred rupees per metric tonne.

(3) Wrought bars, rods (including wire rode), angles,

shapes and sections, of copper-

[-c] Wrought bars and rods (including wire rods) of

copper.

Five thousand and six hundred rupees per metric tonne.

(ii) Wrought angles, shapes and sections of copper.

Six thousand and thrae hundred rupees per metric tonne.

(4) Castings, not otherwise specified.

Five thousand and six hundred rupees per metric tonne.

(5) Copper wire.

Twenty per cent. ad valonem.

(6) Wrought plates, sheets, blanks (including circles)

and strips of copper.

Six thousand and three hundred rupees per metric tonne.

BqpiamXlon. — In this sub-Item, "blank" means a piece

of plate, sheet or strip, in any shape, including a circle, prepared for subsequent fabrication.

(7) Copper foil.

Stx thousand and three hundred rupees per metric tonne.

(8) Copper powders (excluding cement copper) and

flakes.

Twenty per cent. ad vaionen.

(9) Pipes and tubes of copper.

Twenty-eight per cent. ad vatowm.

(10) Sheila and blanks for pipes and tube si hollow

sections of copper.

Twenty-eight per cent, ad va/tonem.

Item No. _ _ _ _ _ „ _ _„ Description of goods Rate of duty

£) ;

(2)

(i) ~. Bf.fHamXJ.cn. _- In tnis Item, —

{4) "waste and acrap" means waste and scrap metal fit only for the recovery of metal by remeltlng or for use in the manufacture of chemicals, but does not include slag, droas, acallngs, ash and other cuprous residues;

Let) "wrought bars and rods (Including wire rods)"

means

(a) any extruded, rolled, drawn or forged products of solid section,

of which the width or the maximum cross-sectional dimen- sion exceeds 6 millimetres and which, if they are flat, have a thickness exceeding one-tenth of the width; or

ib) any cast or wintered products, of the same forms

and dimensions,which have been subsequently worked after production (otherwise than by alrnple trimming or de- scaling), provided that they have not thereby assumed the character of any article or product falling under any other Item;

[lu.\ "wrought angles, shapes and sections" means

(a) any extruded, rolled, drawn or forged products of solid section

(other than round, rectangular, square and hexagonal), of which the width or the maximum cross-sectional dimension exceeds 6 millimetres and which, if they are flat, have a thickness exceeding one-tenth of the width; or

(fa) any cast or sintered products, of the same forms and

dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-acallng), provided that they have not thereby assumed the character of any article or product falling under any other Item;

(.&>) "wire" means any rolled, extruded or drawn product of

solid and uniform cross-section, of which no cross-sectional dimension exceeds 6 millimetres, but does not Include electric wires and cables, falling under Item No. 33B;

(v) "plate" means a flat product whose thickness exceeds

10 millimetres and the width exceeds 300 millimetres;

[vi] ""sheet" means a flat product, cut to length, whose

thickness exceeds 0.15 millimetre but does not exceed 10 milllmetres^and the width exceeds 300 millimetres;

[\UA.) "strip" means a flat product whose thickness exceeds

0.15 millimetre but does not exceed 10 mlllimetres,of any width and generally not cut to length and usually in collj

(ua*J "foil" means a flat product of thickness (excluding any backing) not exceeding 0.15 mllllmetre^of any width, generally not out to length and usually In coll, whether or not embossed, cut to shape, perforated, coated, printed or backed with paper or other reinforcing material;

(xx) "powders and flakes" means all types of powders and

flakes, but does not include cement copper and powders and flakes prepared aa colours, pigments, paints or QM llk*|

\x\ "pipes and tub**" means a hollow product of uniform

orosii-section and wall thickness having a continuous peri-

phery produoad by drawing, carting or extrusion proo*M|

Item No. Description of goods Rate of duty ~~~~ (lj

(2)

, (3)

(xi) "shells and blanks" means a hollow cylinder pro- duced by extrusion, rotary piercing or casting for subse- quent drawing Into pipe or tubet

(xil) "hollow section" means a section which i3 normally

extruded, drawn or cast, the cross-section of which comple- tely encloses a void or voids, ';

[ii] for Item No. 26B, the following Item shall be substituted,

namely:—

'26B. ZINC AND PRODUCTS THEREOF—

"Zinc" shall include any alloy in which zinc predominates

by weight over each of the other metals.

(1) Unwrought zinc In any form Including blocks, plates, Three thousand two ingots, cakes, bars, billets, hard or soft slabs, cathodes, hundred and seventy- anodes, pellets, spelter and broken zinc.

five rupees per metric tonne.

(2) Waste and scrap of zinc.

Three thousand two hundred and seventy- five rupees per metric tonne.

(3) Wrought bars, rods (including wire rods), angles,

shapes and sections of zinc; zinc wire.

[i] Wrought bars and rods (including wire rods) of zinc. Three thousand two

hundred and eeventy- five rupees per metric tonne.

liQ Wrought angles, shapes and sections of zinc and Three thousand zinc wire.

eight hundred rupees per metric tonne.

(4) Wrought plates, sheets, blanks (Including circles, but Three thousand eight excluding calots) and strips of zinc; zinc foil. hundred rupees per

metric tonne.

Explanation.T- In this sub-Item, "blank™ means a piece

of plate, sheet or gtrlp in any shape, including a circle,, prepared for subsequent fabrication.

(5) Zinc calota.

Four thousand seven hundred and fifty rupees per metric tonne.

(6) Zinc powders mid flakes.

Twenty p"r cent.

advdhyian.

(7) Pipes and tubes of zinc.

Forty-five per cent. ad vat&um.

(8) Shells and blanks for pipes and tubes; hollow Forty-five per cent, sections of zinc.

cd. valonem.

txptamtwn.^. In this Item,—

[1] "waste and scrap" means waste and scrap metal

fit only for the recovery of metal by remeltlng or tor use In the manufacture of chemicals, and includes dross and ash;

Item No. Description of goods

Rate of duty (3) ( 1)

(2)

[•H] "wrought bars and rod3 (Including wire rods)" weans

(a) any extruded, rolled, drawn or forged products of solid

section, of which the width or the -maximum crosa- aectlonal dimension exceeds 6 millimetres and which, If they are flat, have a thickness exceeding one-tenth of the width; or

(6) any cast or sintered products, of the same forms

and dimensions, which have been subsequently worked after production (otherwise than by simple trimming or de-seal ing), provided that they have not thereby assumed the character of any article or product fall- Ing under any other Item;

[UA] "wrought angles, shapes and sections" means

la) any extruded, rolled, drawn or forged products of solid sec-

tion (other than round, rectangular, square and hexagonal), of which the width or the maximum cross-sectional dimension exceeds 6 millimetres and which, if they are flat, have a thickness exceeding one- tenth of the wtdthj or

(6) any cast or sintered products, of the same

forms and dimensions, which have been subsequen- tly worked after production (otherwise than by simple trimming or de-scaling^provlded that they have not thereby assumed the character of any article or product falling under any other Item;

(-4/) "wire" means any rolled, extruded or drawn

product of solid and uniform cross-section, of which no cross-sectional dimension exceeds 6 millimetres;

lv) "plate" means a flat product, cut to length, whose

thickness exceeds 10 millimetres and width exceeds 500 millimetres;

(tic) "sheet" means a flat product whose thickness

exceeds 0.15 millimetre, but does not exceed 10 millimetres,and width exceeds 500 millimetres;

(uu.) "strip" means a flat product, generally not cut to length, whose thickness exceeds 0.15 millimetre but does not exceed 10 millimetres, and width does not exceed 500 millimetres;

[\till) "foil" means a flat product whose thickness

(excluding any backing) not exceeding 0.15 millimetre, whether or not embossed, cut to shape, perforated, coated, printed or backed with paper or other reinforcing material;

(-60 "powders and flakes" means all types of powders and flakes, Including dust, but excluding powders and flakes prepared an colours, pigments, patnta or the llkej

(x) "pipes and tubes" means a hollow product of uniform

cross-section having a continuous periphery produced by drawing, casting or extrusion proceast

(xt) "hollow-section" means a section which Is normally

extruded, drawn or cast and the cross-section of which

Item No.

Description of gooda

(2)

Rat" of duty (3)

( 1)

WXc) for Item No. 27, the following Item shrill }y. substituted,

namely:—

'27. A LUMIN1UM AND PRODUCTS THEREOF-

" Aluminium" shall Include any alloy In which alum In INTO predominates by weight over each of the other tnetaJs.

Fifty per cent.

(1) Unwrought aluminium In any form Including Ingots, pigs, blocks, billets, slabs, notched bars, wire hars, shots and pellets.

ad vafanem p& JA four t.fco"flft7iri ruppfis p*?f m c l r ic tonne.

(2) Waste and scrap of aluminium.

Fifty per cent.

ad wdfonm pfki

four thousand

rupees per

metric tonne.

(3) Wrought bar a, rods (Including wire rods), angles,

Fifty per cent.

shapes and sections of aluminium.

ad va&otiem P£UA

four thousand

rupees per

metric tonne.

(4) Castings, not otherwise specified.

Fifty per cent.

ad vaSofimptM

four thousand

rupees per metric

tonne.

(5) Aluminium wire

Fifty per cent.

ad uotocmpⅈ

four thousand

rupees per

metric tonne.

(8) Wrought plates, sheets, blanks (Including circles)

and strips of aluminium.

Fifty per cent.

ad vatonemptuA

four thousand

rupees per

metric tonne.

bqofawtijxi .— In thla sub-Item, "blank" means a piece

of plate, sheet or strip in any shape, Including a circle,

prepared for subsequent fabrication.

(7) Aluminium foil.

Fifty per cent.

ad \xjlonm p£u&

four thousand

rupees per

metric tonne.

(0) Aluminium powders and flakes.

Fifty per cent.

ad wrfoton ptui

four thousand

rupeea per

metric tonne.

ExftanUim.*— Thla nub-Item Includes aluminium powdera

mixed with oth*r base metal powders, but does not

Include powdara or flakes, prepared a* pigment paste,

oolonra, patnta or tha like. -

ItSm

No. Description of goods

Rate of duty

(3)

(2)

<*>

(0) Pipes and tubes of aluminium.

Fifty per cent,

ad valytmp£u&

four thousand

rupees per

metric tonne.

(10) Sheila and blanks for pipes and tubes; hollow

sections of aluminium,

Fifty per oent. ad \oto>mptw> four thousand rupees per metric tonne.

(11) Containers, plain, lacquered or printed or

lacquered and printed.

Fifty per cent.

ad vaionm p&a

four thousand

rupees per

metric tonne,

atim.>— In this Item, —

"waste and scrap" means waste and scrap metal fl

W

for the recovery of metal by remeltlng or for uae

manufacture of chemicals, but does not Include slui

dross, seal Ings, skimmings, ash and other residue

t only

In the

dge,

"s;

8

) "wrought bars, rods (Including wire rods)" meant

We

(a) any extruded, rolled, drawn or forged product!

which the width or the maximum cross-sectlona

sion exceeds 6 millimetres and which, if they ai

have a thickness exceeding one-tenth of the widt

) of solid section, of

1 dlmen-

e flat,

h; or

ns and

i after

>r de-

lumed

ider any

(b) any cast or sintered products, of the same fon

dimensions which have been subsequently worke*

production (otherwise than by simple trimming c

scaling), provided that they have not thereby asc

the character of any article or product falling m

other Items

"wrought angles, shapes and sections" means

t) any extruded, rolled, drawn or forged products

(<

of solid section (other than

ilch the width

ids 6 millimetres

edlng one-

round, rectangular, square and hexagonal), of wt

or the maximum cross-sectional dimension "xce"

and which, If they are flat, have a. thlokness exce

.tenth of the width) or

s and dlmen-

ir production

:), provided

of any article

b) any cast or sintered products, of the same form

slons, which have been subsequently worked aft*

(otherwise than by simple trimming or de-scaling

that they have not thereby assumed the character

or product falling under any other Item;

a

0

of solid and

dimension

wires and

0

"wire" means rolled, extruded or drawn product,

Blform cross-section, of which no cross-sectional

xceeda 6 mllllTnetres|but does not Include electric '

able* falling under Item No. 33B;

generally

"plate" means a flat product of rectangular section,

ut to length, whose thickness Is 6 millimetres and 1

above 1

M ' c

0

a, generally

itre but Is below

6

"sheet" means a flat product of rectangular sectloi

ut to length, whose thickness exceeds 0. IS mUlimc

millimetre* 1

Item No. Description of goods

Rate of duty

(3)

{ 1)

(2)

{wl) "strip" means a product of rectangular section, supplied In

coll or flat form, of thickness exceeding 0,15 millimetre but

below 6 millimetres,with length more than eight times the width;

(uw-ci "foil" means a flat product of rectangular section, of

thickness (excluding any backing) not exceeding 0.15 millimetre,

whether or not embossed, cut to shape, perforated, coated,

printed or backed with paper or other reinforcing material;

(-tx) "pipes and tubes" means a hollow product of uniform cross-

section having a continuous periphery produced by drawing,

casting, extrusion or welding process;

(x) "hollow section" means a section which la normally extruded,

drawn or cast and the cross-section of which completely encloses

a void or voids;

(XA) "container" means containers ordinarily intended for packaging

of goods for sale, including collapsible tubes, casks, drums,

cans, boxes, gas cylinders and pressure containers, whether

In assembled or unassembled condition and containers known

commercially as flattened or folded containers, 'i

[w] for Item No. 27A, the following Item shall be substituted, namely:—

'27A. LEAD AND PRODUCTS THEREOF-

"Lead" shall Include any alloy in which lead predominates by

weight over each of the other metals.

(1) Unwrought lead (Including argentiferous lead). Including

Ingots, pigs, blocks, anodes, slabs, cakes and cast sticks,

Eight hundred and

forty rupees per

metric tonne.

(2) Waste and scrap of lead.

Eight hundred and

forty rupees per

metric tonne.

Expfarattcn. —In this sub-Item, "waste and sorap"means

waste and scrap metal fit only for the recovery of

metal by remeltlng or for use tn the manufacture of

chemicals, but does not Include slag, ash and other residues.

Twenty per cent.

(3) Pipes and tubes of lead.

ad vafryiem.

(4) Shells and blanks for pipes and tubes.

Twenty per cent.

cdvatonm.

One thousand rupees

per metric tonne.'.

(5) Wrought lead In the form of bars, rods, angles,

sections, •napes, wires, plates, sheets, circles,

strips and folia.

THE FIFTH SCHEDULE

(See. section 53)

Item No. In the First

Schedule to the Central

Excises and Salt Act, 1944 Description of goods

Rate of duty

<3)

(1)

(2)

In the First Schedule to the Additional Duties of Excise Act,\i

(^) in Item No. 4, under "H. \lan^pcAmsd -ftfacco-",—

(a) for the entry In the third column against sub-Item (2), the

entry 'Two hundred and sixty rupees per thousand or one hundred

and aeventy-f tve per cent, '_ ad vatohm phii twelve rupees per thousand,

whichever Is higher. " shall be substituted)

(b) for sub-Item (5), the following sub-Item shall be substituted,

namely:—

'(5) Chewing tobacco, tnoluding preparations commonly known

Ten p"r cent. advatanm.

a* "0kwa VaiaLjt'r "KimtT, Ttofeto", "Tandcf, H$ukto!' ami "SuMi"

(-a.) tn Item No. 22, for each of the entries In the third column against

sub-Items (1) (a) and (1) (6), the entry "Ten per cent, ad \xfanem ptu6

rupees two per square metre. " shall be substituted.

STATEMENT OF OBJECTS AND REASONS

The object of the Bill 1B to give effect to the financial proposals of the

Central Government for the financial year 1984-85. The notes on clauses

explain the various provisions contained In the Bill.

PRANAB MUKHERJEE.

Ntw DBUI-

The 29tH February, 1984.

PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117

AND 274 OF THE CONSTITUTION OF INDIA

Copy of letter No. F. 3(l)-B(D)/84 dated the 29th February, 1984

from Shrl Pranab Mukher jee, Minister of Finance, to the Secretary-

General, Lok Sabha*.

The President, having been Informed of the subject matter of the

proposed Bill, recommends under clauses (1) and (3) of article 117,

read with olause (1) of article 274, of the Constitution of India, the

Introduction of the Finance Bill, 1984 to the Lok Sabha and also re-

commends to the Lok Sabha the consideration of the Bill.

2. The Bill will be Introduced In the Lok Sabha Immediately

after the presentation of the Budget on the 29th February, 1984.

Wolfed on ctauAe.6

Clause 2, read with the First Schedule to the Bill, seeks to prescribe the rates at which Income-tax (Including surcharge thereon) is to be levied on Incomes chargeable to tax for the assessment year 1984-85, Further, it lays down the rates at which tax is to be deducted at source during the financial year 1984-85 from Incomes subject to such deduction under the Income-tax Act; and the rates at which "advanoe tax" is to be paid and tax la to be calculated and charged In special cases for the financial year 1984-86,

Rates of income-tax for the assessment year 1984-85:

Part I of the First Schedule to the Bill specifies the rates of income-tax (including surcharge) on incomes liable to tax for the assessment year 1984-85. These rates are the same as those specified in Part III of the First Schedule to the Finance Act, 1983, for the purposes of deduction of tax at source from "Salaries" and for computation of "advance tax" payable during the financial year 1983-84.

Where a company has made any deposit during the financial year 1983-84 under the Companies Deposits (Surcharge on Income-tax) Scheme, 1983, with the Industrial Development Bank of India, the amount of surcharge on income-tax payable by it for the assessment year 1984-85 will be reduced by the amount of the deposit so made, subject to a maximum of one-half of the amount of surcharge payable by it.

Rates for deduction of tax at source during the financial year 1984-86 from income other than "Salaries";

Part II of the First Schedule to the Bill specifies the rates at which income-tax (including surcharge where applicable) Is to be deducted at source during the financial year 1984-85 from incomes other than "Salarlea" and retirement annuities under section 80E(9) of the Income-tax Act. The rates specified in this Part for deduction of tax at source are the same as those specified in Part II of the First Schedule to the Finance Act, 1983, for the purposes of deduction of tax at source during the financial year 1983-84.

Rates for deduction of tax at source from "Salaries" and retirement annuities, computation of "advance tax" and charging of income-tax in special cases during the financial year 1984-85:

Part III of the First Schedule to the Bill specifies the rates at which income-tax (Including surcharge) is to be deducted at source from "Salaries" and retirement annuities referred to In section 80E(9) of the Income-tax Act and also the rates at which "advance tax" is to be paid and income-tax Is to be calculated or charged in special cases for the financial year 1984-85.

With the exception of the rate schedule applicable to individuals, Hindu undivided families (other than those with one or more members having income exceeding the exemption limit), unregistered firms, etc., the rates of tax applicable to other categories of taxpayers (including companies) are the same as those specified in Part I of the First Schedule to the Bill for the assessment of incomes liable to tax for the assessment year 1984-85. However, the rate schedule applicable to individuals, Hindu undivided families (other than those with one or more members having Income exceeding the exemption limit), unregistered firms, etc., has been replaced by a new rate schedule. Under the new rate schedule, the tax rate applicable to the income slab of Rs. 15,001 - Rs. 20, 000 has been reduced from 25 per cent, to 20 per cent, and the tax rate applicable to incomes above Rs. 1 lakh has been reduced from 60 per cent, to 56 per cent. The tax rates In the intermediate slalas have also been revised suitably.

The surcharge on income-tax in the case of all non-corporate assessees will continue to be charged at the rate of 12. 5 per cent, of such income-tax.

The surcharge on income-tax In the case of all categories of companies will also continue to be charged at the rat© of 5 per cent, of such income-tax. Companies will, however, have the option of making a deposit with the Industrial Development Bank of India (under a scheme to be notified by the Central Government) in lieu of payment of the entire amount of such surcharge.

Clause 3 seeks to amend clause (30) of dection 10 of the Income-tax Act.

Under the existing provisions, any subsidy, received from or through the Tea Board.under a Scheme notified by the Central Government for replacement or replantation of tea bushes by an assessee who carries on the business of growing and manufacturing tea in India is exempt from tax.

Under the proposed amendment, any subsidy received from the Tea Board under a scheme, notified by the Central Government, for rejuvenation or consolidation of areas used for cultivation of teA will also be exempt from tax.

This amendment will take effect from 1st April, 1985, and will, accordingly,apply In relation to the assessment year 1985-86 and subsequent years.

Clause 4 seeks to amend sub-section (5) of section 11 of the Income-tax Act relating to Income from property held under trust tor charitable or religious purposes.

Sub-section ^5) of the said section specifies the forms and modes of Investing trust funds. The proposed amendment seeks to include deposits with the Industrial Development Bank of India as one of the forms and modet-s of investing or depositing trust funds.

This amendment will take effect from 1st April, 1985,and will, accordingly, apply In relation to the assessment year 1985-8H and subsequent years.

Clause 5 seeks to amend section 33B of the Income-tax Act relating to rehabilitation allowance.

Under the existing provisions, a deduction In respect of rehabilitation allowance Is allowed for facilitating the re-establishment, reconstruction or revival of the business of an Industrial undertaking in India which is discontinued because of extensive damage to, or destruction of, Its building, machinery, plant or furniture as a direct result of natural calamities (such as flood, cyclone, earthquake, etc. ), riot or civil disturbance, accidental fire or explosion or enemy action.

tinder the proposed amendment, no deduction will be allowed under this provision in relation to the assessment year commencing on the 1st day of April, 1985 or any subsequent assessment year.

This amendment will take effect from 1st April, 1985.

Clause 6 seeks to amend section 35 of the Income-tax Act relating to deduction In respect of expendi- ture on scientific research.

Under the existing provisions in section 35(2) (la) the whole of the capital expenditure incurred by an assessee on scientific research related to the business carried on by him is allowod as a deduction in computing the taxable profits of the business of the year in which such expenditure is incurred. Sub-clause (a)(i) seeks to provide that the above deduction will not be available In respect of capital expenditure incurred on the acquisition of any land after the 29th February, 1984.

Sub-clause (a)(ll) seeks to insert an Explanation to provide that, for the purposes of this clause, land would include any interest in land and shall be deemed to have been acquired on the date on which the document purporting to transfer the land Is registered under the Registration Act, 1908, and where the possession of any land has been obtained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882, on the date on which such possession was obtained.

Sub-clause (b) seeks to amend sub-section (2A) of this section. Under the existing provisions, a weighted deduction equal to one and one-third times the sum paid by a taxpayer to a scientific research association or university or college or other institution or to a public sector company to be used for scientific research undertaken under a programme approved by the prescribed authority is allowed in computing the taxable profits of the business of the year In which such expenditure is incurred. Under the proposed amendment, the weighted deduction will not be allowed In respect of such sums paid after the 29th February, 1984.

Sub-clause (c) seeks to amend sub-section (2B) of this section. Under the existing provisions, a weighted deduction equal to one and one-fourth times the amount of expenditure Incurred by a taxpayer on scientific research undertaken under a programme approved by the prescribed authority is allowed In computing the taxable profits of the business of the year In which such expenditure is Incurred. Under the proposed amendment, the weighted deduction will not be allowed in respect of such expenditure incurred after the 29th February, 1984.

These amendments will take effect from 1st April, 1984.

Clause 7 seeks to amend section 35C of the Income-tax Act relating to agricultural development allowance.

Under the existing provisions, a company or a co-operative society which uses the products of agriculture, animal husbandry or dairy or poultry farming as raw material or processes such products

Is eligible for a deduction of the expenditure incurred, whether directly or through an approved associa- tion or body, in the provision of agricultural inputs and extension services to cultivators, growers or producers of such products.

Under the proposed amendment, no deduction under this provision will be allowed in relation to expenditure incurred after the 29th February, 1984,

This amendment will take effect from 1st April, 19 84.

Clause 8 seeks to amend clause (Ua) of sub-section (1) of section 36 of the Income-tax Act.

Under the existing provisions, a weighted deduction equal to one and one-third times the amount of the expenditure incurred on payment of any salary to an employee who is totally blind or suffers from a permanent physical disability is allowed in computing the taxable profits. Under the proposed amend- ment, the weighted deduction will not be allowed in respect of salary paid for any period of employment after the 29th day of February, 1984.

This amendment will take effect from 1st April, 1984.

Clause 9 seeks to amend section 40 of thu Income-tax Act relating to amounts not deductible la the computation of business income.

Under section 40 (c), expenditure incurred by a company on the provision of any remuneration or benefit or amenity to a director or a person who has a substantial interest tn the company or to a relative of the director or of such person, and the expenditure or allowance In respect of any assets of the oompatiy which are used by such persons for their own purposes or benefit, is not allowable as a deduction In comput- ing the taxable profits of the company, to the extent such expenditure or allowance is, in the opinion of the Tncome-tax Officer, exceaelve or unreasonable. The aggregate of such expenditure and allowance Is further subject to an overall eel" 'ng limit of Rs. 72,000 in a year, tn respect of any one director or person who has a substantial interest in ihe company or a relative of the director or such person. Where such expenditure or allowance relates to only a part of the year, the monetary ceiling is the amount calculated at the rate of Rs.6, 000 per month or part of a month comprised In the period to which the expenditure or allowance relates.

The proposed amendment seeks to raise the overall monetary ceiling of Rs,72, 000 to Rs. 1, 02, 000 and the monthly ceiling of Rs. 6, 000 to Rs. 8, 500.

This amendment will take effect on 1st April, 1985, and will, accordingly, apply in relation to the assessment year 1985-86 and subsequent years.

Clause 10 seeks to amend section 40A of the Income-tax Act relating to payments not deductible In certain oircumstances.

Sub-clauses (a) and (b) seek to amend sub-sections (5) and (6) respectively of section 40A. Section 40A(5) places certain ceiling limits on the deductible amount of expenditure incurred by a taxpayer on account of payment of salary to any employee or a former employee or In providing any perquisite, etc., to any such employee. Under this provision, expenditure Incurred by an assessee on payment of salary to an employee in respect of the period of his employment in India during the relevant year will not be allowed as deduction in computing the taxable profits of the employer to the extent it exceeds an amount calculated at the rate of Rs.5, 000 for each month or part of a month. In the case of a person who ceases or ceased to be the employee of the taxpayer during the relevant accounting year or any earlier year, the ceiling limit Is Rs.60, 000 per annum. Further, the aggregate of expenditure incurred by an aaseseee in providing any perquisite to an employee and the amount of expenditure or allowance (such as depreciation allowance) in reapect of the assets of the assessee used by the employee for his own purpose or benefit is not allowed as deduction in computing the profits of the business or profession to the extent it exceeds 20% of the amount of salary paid to the employee or an amount calculated at the rate of Rs. 1, 000 for each month or part thereof comprised In the period of employment, whichever Is less.

Where the assessee has incurred any expenditure on payment of fees for services rendered by a person who, at any time during the 24 months immediately preceding the relevant year, was an employee of the asaessee, section 40A(6) provides that such expenditure by way of fees, or where the assessee has also paid any salary to such person during the relevant year, the aggregate expenditure on the payment of such fees and salary shall not exceed Rs.60,000.

The proposed amendments to sub-sections (5) and (6) of section 40A seek to raise the monetary limits aforesaid from Rs.5, 000 to Ks.7,500 per month and the annual ceiling of RB.60, 000 to Re. 90, 000.

These amendments will take effect from 1st April, 1985, and will, accordingly, apply in relation to the assessment year 1985-86 and subsequent years.

Sub-clause (c) seeks to insert a new sub-section (9) in section 40A. The proposed sub-section provides that no deduction bhall be allowed in the computation of taxable profits in reepect of any aum paid by the assessee as an employer towards the setting up of, or as contribution to, any fund or trust for any purpose, except where such sum is paid or contributed (within the limits laid down under the relevant provisions) to a recognised provident fund or an approved gratuity fi'nd or an approved superannuation fund or for the purposes and to the extent required by or under any other law.

The proposed provision will take effect retrospectively from 1st April, 1980, and will, accordingly, apply in relation to the assessment year 1960-81 and subsequent years.

Clause 11 seeks to insert a new section 44AB in the Income-tax Act relating to audit of accounts of certain persons carrying on business or profession.

The proposed provision seeks to make it obligatory for a person carrying on business to get his accounts audited before the "specified date" by an aocountant, if the total sales, turnover or gross receipts in busin- ess for the previous year or years exceeds or exceed twenty lakh rupees. A person carrying on profession will also have to get his accounte audited before the said date if his gross receipts In profession for the previous year or years exceeds or exceed ten lakh rupees. Such persons will also be required to obtain before the specified date ft report of the audit in the prescribed form. These requirements will apply only in relation to the accounts lor the previous year or years relevant to any assessment year commencing on 1st April, 1985 or any subsequent assessment year.

In cases where the accounts of a person are requried to be audited by or under any other law, It will suffice If the person gets his accounts audited under such other law before the specified date and also obtains before the said date the report of audit in the prescribed form, in addition to the report of audit required under such other law.

The expression "accountant", for the purposes of this provision, will have the same meaning aB In the Explanation below section 288(2) of the Income-tax Act. The expression "specified date", in relation to the accounts of the previous year or years relevant to any assessment year, means the date of the expiry of four months from the end of that year or where there Is more than one previous year, from the end of the previous year which expired laBt before me commencement of that assessment year or the 30th June of such assessment year, whichever date falls later.

The proposed amendment will take effect from 1st April, 1985^ and will, accordingly, apply in relation to the assessment year 1985-86 and subsequent years.

Clause 12 seeks to amend sub-section (3) of section 80CC of the Inoome-tax Aot.

Under the existing provisions, where certain specified categories of aeseeeees purchase new equity shares out of their income chargeable to tax, they are allowed a deduction, in the computation of their total Income, of an amount equal to 50 per cent, of the cost of the shares so purohased. Where such cost exceeds RB.20, 000, the amount with reference to which the deduction le allowed is limited to Re.20,000.

Under the proposed amendment, no deduotlon will be available with reference to the cost of any shares offered for public subscription after the 29th February, 1984.

This amendment will take effect from 1st April, 1984.

Clause 13 seeks to omit, with effect from 1st April, 1985, section 80D of the Income-tax Act relating to deduction In respect of medical treatment of handicapped dependants. The deduction will not, therefore, e available for the assessment year 1985-86 and subsequent assessment years.

Clause 14 seeks to amend section 80E of the Income-tax Act relating to deduction In respect of payment for securing retirement annuities.

Under the existing provisions, an Indian citizen who Is resident in India and is a partner of a registered firm rendering professional service as a chartered accountant, solicitor, lawyer, arohitect, or such

other professional service notified by the Central Government, Is entitled, subject to certain conditions, to ^deduction, in the computation of hia total income, in respect of the amount paid by him as premium unaer an approved contract for the purpose of securing for him a life annuity in old age.

Under the proposed amendment, no deduction will be allowed under this provision In relation to the amount paid as premium after the i!9th February, 1984.

This amendment will take offectfrora 1st April, 1984.

Clause 15 seeks to amend section 80L of the Income-tax Act relating to deductions in respect of income from specified financial assets.

Under the existing provisions, Income from investment in specified financial assets (including unite of the Unit Trust of India) is deducted in computing the taxable income. The aggregate amount of the deduction under this provision is limited to Rs.7, 000. In addition, a further deduction of an amount up to Rs.3, 000 is allowed under the Unit Trust of India Act In respect of income from units of the Unit Trust of India.

The amendment under sub-clauso (a) seeks to Include, in the categories of income qualifying for deduction under section 80L, any interest on deposits under any such National Depoelt Scheme as may be framed by the Central Government and notified by it in this behalf in the Official Gazette.

The amendment under sub-clause (I)) is consequential to the amendment under sub-clause (a).

The amendment under sub-clause (0) seeks to insert a proviso to section 80L to the effect that where the gross total income of the assessee includes any income by way of interest on any deposits under any notified National Deposit Scheme or any income in respect of units of the Unit Trust of India, the assessee shall be entitled, In addition to the deduction of Rs. 7, 000 under the main provision, a further deduction of an amount equal to so much of the income from the aforesaid assets as has not been allowed as deduction under the main provision, subject to a maximum of Rs.3, 000.

The proposed amendments will take effect from 1st April, 1985, and will, accordingly, apply in relation to the assessment year 1985-86 and subsequent years.

Clause 16 seeks to amend section 80M of the Income-tax Act relating to deduction In respect of certain inter-corporate dividends.

Under the existing provisions, whore the gross total Income cf a domestic company Includes any Income by way of dividends from a domestic company, a deduction Is allowed In computing its total Income of an amount equal to, -

(a) the whole of Buch income, if the dividend income is derived from a domestic company exclusively

or almost exclusively engaged In the manufacture of any one or more of the specified priority articles; and

(b) sixty per cent, of such Income in any other case.

The proposed amendment seeks to introduce a uniform rate of deduction of sixty per cent, for all inter'

corporate dividends.

This amendment will take effect from 1st April, 1985, and will, accordingly, apply In relation to the

assessment year 1985-86 and subsequent years.

Clause 17 seeks to amend section SON of the Income-tax Act relating to deduction In respect of dividends

received from cortain foreign companies.

Under the existing provisions, an Indian company deriving income by way of dividends on shares

allotted to it in a foreign company In consideration for the provision of technical ^know-how" or technical

services to such company is entitled to a deduction of the whole of such Income by way of dividends In the

computation of the taxable Income to the extent such Income Is received In or la brought Into India by the

taxpayer In accordance with the law regulating payments and dealings In foreign exchange. The proposed

amendment seeks to restrict this deduction to fifty per cent, of such Income.

This amendment will take effect from 1st April, 1985, and will, accordingly, apply in relation to the

assessment year 1985-86 and subsequent yearB .

Rate of duty Item No. Description of goods

( 1)

(2)

<*>

{AM.) for Item No. 27, the following Item shall be substituted,

namely:—

!27. ALUMINIUM AND PRODUCTS THEREOF-

"Aluminium" shall include any alloy in which aluminium

predominates by weight over each of the other metals.

Fifty per cent.

ad vatotet* p6vu4 four thei'&ajid (1) Unwrought aluminium in any form including ingots, pigs, blocks, billets, slabs, notched bars, wire bars, shots and pellets.

rupees pf"f meirjo tonne.

(2) Waste and scrap of aluminium.

Fifty per cent. ad vaEonm c&i four thousand rupees per metric tonne.

(3) Wrought bars, rods (including wire rods), angles,

shapes and sections of aluminium.

Fifty per cent. ad ustoaasi pfiui four thousand rupees per metric tonne.

(4) Castings, not otherwise specified.

Fifty per cent. od va£cwmp(u6 four thousand rupees per metric tonne.

(5) Aluminium wire

Fifty per cent. ad \x£onmpbi& four thousand rupees per metric tonne.

(6) Wrought plates, sheets, blanks (including circles)

and strips of aluminium.

Fifty per cent. ad vaionem ptut> four thousand rupees per metric tonne.

Explanation .— In this sub-Item, "blank" means a piece

of plate, sheet or strip in any shape, including a circle, prepared for subsequent fabrication.

(7) Aluminium foil.

Fifty per cent. ad vaionmptut, four thousand rupees per metric tonne.

(8) Aluminium powders and flakes.

Fifty per cent. ad \xiohmpliJ& four thousand rupees per metric tonne.

Biptemttm.*— This sub-Item includes aluminium powders mixed with other base metal powders, but does not Include powders or flakes, prepared as pigment paste, colours, paints or the like..

-iserson or where the individual shares of the persons on whose behalf orforwhose benefit such Income is receivable are indeterminate or unknown, tax shall be charged on the relevant income at the maximum marirlr>3l ratet Yhr¹ proviso to sab-section (1) of section IC4 provides thai: in the four types of oases specified the'-'fi.:', the relevant in coir, e will not be charged to tax at the maximum marginal rate, bul tax on &\cb • ".conrie shall hr- charged as if i! were the total Income of a:> association of persons,

T he n ew p r o v i so s e e ks tc p r o v i de t h at in A c a se w h e re t he v / h c le or a ny • o a rf - if t he a f o r e s a id i n o r r ^e of an f i s s a v l ' i i l on of p o re e ns t a r .d n ot ?t " / .- T i i a x i B T i i r r; n a r j X ' r . rl r - i tc r r- i s . - ; - '; ' • ' o v . ' :- ? '. s ' - c l i . c ;i J < > 4 { 3/ of t he

Clause 23 seeks to amend section 194 of me Income-tax Act relating to deduction of tnx at source In respect of dividends paid.

Under the existing provisions, the principal officer of an Indian company or a company which has made the prescribed arrangements for the declaration and payment of dividends (Including dividends on preference shares) within India Is required to deduct Income-tax from the amount of such dividend at the rates in fprce.

The proposed amendment seeks to provide that In the case of a share holder being an Individual, resident In India, no tax need be deducted at source from such dividend Income where the dividend la paid by a company In which the public are substantially Interested; the aggregate amount of such dividend paid does not exceed one thousand rupees; and the dividend Is paid by the company by an account payee cheque drawn on a bank.

This amendment will take effect from 1st June, 1984.

Clause 24 of the Bill seeks to amend section 252 of the Incpme-tax Act.

Sub-clause (a) of this clause seeks to insert a new sub-section (4A) In this section so as to empower the Central Government to appoint one of the VIce-Presidents of the Appellate Tribunal to be the Senior Vice-President thereof.

Sub-clause (b) seeks to make a consequential amendment in sub-section (5) of this section to provide that the Senior Vice-President of the Appellate Tribunal shall also exercise such of the powers and perform such of the functions of the President of the Appellate Tribunal as may be delegated to him by the President by a general or special order In writing.

These amendments will take effect from 1st April, 1984.

Clause 25 seeks to amend section 269C of the Income-tax Act relating to Immovable property In respect of which proceedings for acquisition may be taken.

Under the existing provisions, the Central Government Is, subject to the fulfilment of certain conditions, empowered to acquire any Immovable property having a fair market value exceeding Rs.25,000 In cases where the declared consideration for the transfer of the property Is less than the fair market value of the property on the date of transfer.

The proposed amendment seeks to raise the aforesaid monetary limit to Rs.60,000. This amendment will take effect from 1st June, 1984. Clause 26 seeks to amend section 269F of the Income-tax Act relating to the hearing of objections In respect of proceedings for the acquisition of Immovable property under Chapter XXA of the Act. The proposed amendment is consequential to the amendment of section 269C of the Income-tax Act effected by clause 25.

This amendment will take effect from 1st June, 1984.

Clause 27 seeks to amend section 269P of the Income-tax Act relating to the statement to be furnished In respect of transfers of Immovable property.

Under the existing provisions, any person presenting a document for transferring any immovable property for an apparent consideration exceeding Rs.10,000 is required to furnish to the registering officer a statement in the prescribed form in duplicate in respect of such transfer.

The proposed amendment seeks to provide that such statements will have to be filed before the registering officers only In cases where the apparent consideration exceeds Rs.25,000.

This amendment will take effect from 1st June, 1984. Clause 28 seeks to Insert a new section 269SS in the Income-tax Act relating to the mode of taking or accepting certain loans and deposits.

The proposed provision seeks to provide that, after 30th June, 1984, no person shall accept any loan or deposit from any other person of ten thousand rupees or more except by account payee cheque or account payee bank draft. This requirement will also apply In cases where, on the date of taking or accepting a loan or deposit from a person, any earlier loan or depooit taken or accepted from the same person and remaining unpaid on that date, Is ten thousand rupees or more.

The proposed requirement will also apply If the aggregate amount of such earlier loan or deposit and

the amount of loan or deposit proposed to be taken or accepted from that person Is ten thousand rupees

or more.

The proposed requirement will, however, not apply to any loan or deposit taken or accepted from, or

any loan or deposit taken from or accepted by Government, any banking company, post office savings

bank or any co-operative bank; any corporation established by a Central, State or Provincial Act; or any Government company as defined In section 617 of the Companies Act, 1956, The provisions of the new section will also not apply to any loan or deposit taken, or accepted from, or any loan or deposit taken from, or accepted by, any institution, association or body or class of institutions, associations or bodies, which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette.

For the purposes of this provision, the expression "banking company" will have the meaning assigned to it In clause (a) of the Explanation to section 40A(8) of the Income-tax Act. The expression "co-operative bank" will have the meaning assigned to it In Part V of the Banking Regulation Act, 1949, and the expres- sion 'loan or deposit" will mean any loan or deposit of money.

The proposed provision will take effect from 1st April, 1984, but as staled earlier, the requirement laid down under the proposed section will apply only in relation to loans and deposits taken or accepted after 30th June, 1984.

Clause 29 aeeks to amend section 269T of the Income-tax Act relating to mode of repayment of certain deposits by banking companies, co-operative banks, etc.

Under the proposed amendment, the expression i'co~operative bank" Is proposed to be defined as having the same meaning as is assigned to It In Part V of the Banking Regulation Act, 1949.

This amendment will take effect from 1st April, 1984.

Clause 30 seeks to Insert anew section 271B In the Income-tax Act relating to failure to get accounts audited.

The proposed provision seeks to provide that If any person falls, without reasonable cause, to get his accounts audited In respect of any year or obtain a report of such audit as required under new section 44AB (proppsed to be Inserted In the Income-tax Act by clause 11 of the Bill), the Income-tax Officer may Impose a penalty equal to one-half per cent, of the total sales, turnover or gross receipts, aa the case may be, In the business, or of the gross receipts in the profession, In the relevant year, subject to a maximum of Rse 1,00,000.

The proposed amendment will take effect from 1st April, 1985,and will, accordingly, apply in relation to the assessment year 1985-86 and subsequent years.

Clause 31 seeks to Insert a new section 276DD In the Income-tax Act which provides for a penalty for contravention of section 269SS.

Under the proposed new section, If any person, without reasonable cause or excuse, takes or accepts any loan or deposit In contravention of the provisions of new section 269SS, he shall be punishable with Imprisonment for two years and shall also be liable to fine equal to the amount of such loan or deposit.

This amendment will take effect from 1st April, 1984.

Clause 32 seeks to amend section 281A of the Income-tax Act relating to effect of failure to furnish Information in respect of properties held benamt.

Sub-clause (a) seeks to amend sub-section (1) of section 281 A.

Under the existing provisions, the real owner of any property held benaml or any person acting on his behalf Is debarred from Instituting any sutt In any court to enforce any right In respect of any property held benaml unless the Income from such property or the property Itself has been disclosed In any return of Income or net wealth by the claimant or a notice In the prescribed form and containing the prescribed particulars In respect of the property has been given by him to the Income-tax Officer, The existing provisions do not lay down any time limit for such disclosure In the return of Income or net wealth or for giving a notice In the prescribed form to the Income-tax Officer.

It Is proposed to replace the existing option of making a disclosure in the return of Income or net wealth and replace It by a provision for giving notice In the prescribed form within a specified period. Hence, under the amended provisions of sub-section (1), the real owner of the property will be required in all cases to give a notice In the prescribed form containing the prescribed particulars In respect of the property within a period of one year from the date of acquisition of the property to the Commissioner of Income-tax,

Sub-clause (b) s e e ks to i n s e rt two new s u h - s e c t i o ns in section 291A, New s u b - s e c t i on (1A) s e e ks to cover f*as8S where such berrarrj acquisition of p r o p e r ty is m a de before the introduction of the Finance BUI, The nen- s u b - s e c t i on accordingly p r o v i d es that where ^r.y such p r o p e r ty is a c q u i r ed by t'.ie c l a i m a nt before 1st **archs 1984, the r e q u i r e m e nt of the a-nonded s u b - s e c t i on (1) of section 231A shall be d e e d ed to have b^on f u l ^ ' I ea if notice in the p r e s c r i b ed I'OHTI and eonty.:r.i.ng the p r e s c r i b ed p a r t i c u l a rs in r e s p e ct cf the prope"-^ is given by *he c l a i m a nt u-ith'n a p e r i oa of one y e ar from that date to the Cc-minissioner of I n c o m e - t a x,

New svi! section (IB- c ? r v es cat an exception tc t h" p r o v i s i o ns contained in V\e amended s u b - s e c t i cn (I) and the new Fsvih-L-eciior> n A) i" -:ases where ,-he whie of any suit relating to ary in-movable p r o p e r ty does S\Q'C exceed Rsc '?". 0^0, Nov." sub-section {IB", p r o v i d es that in such case-3 the f f o r e s a ic p r o v i s i o ns shall be deemed to b a iv r.fen fuliiiied if, at aru tinv; before the .suit, notice In the prtsorihecl form and containing the p r e s c r i b ed p a i t i c u l a rs in r e s p e ct of the p r o p e r ty is given by :h"? f iaimanl to the C o m m i s- s i o n er of I n c o m e - t a x.

Sub-clause (b) of tr.is clause seeks to amend section 2IA of she Acf.

Siib-clausc (h>(l) seeks to provi.io that where any prvpcrly is neU under rru<-? fo' any <.-jHic purpose a charitable or religious Nature in India, tax shall K leviable upon ard recoverable Jiv/m the trustee or T arrive r in respect of the property held by birrs under trusc -it the "TDasitr \~.-> T. "'nana! r-;?c-'! if the trust icrfcits exemption by reason of :x:-y of the following iactcrs, 'is-mely; —

(i) any part of ihe trust's property or any Licorrts of the trust, r.el'Jumg iriuoT^e by WE.V ->i voluntary contributions is used or sppited, directly cr ''adireetly. for me b-iutfit of any pert or referred to in section. 13(3) of the Income-tax Actt e.g., me s;Wor, t*h? trys.'.ee,, i-*\eir relatives, Gtc.; or

f ii) ar"y part of the income of the trust,. .,-re,.iea ;>n o.- ^fter 1st vr>-- is 6 2. ;--,?judii:,z Income ty waj- of voluntary contributions, errarsf% direct) y or ini2:'reerh-., fcr the b^e^'ii •-;>? any of the person referred to in section I3(''> of the Iricorvse-tSA Ace, cr-

(iil) Sdiy funds of the trust are invested err oepositcd cr any snarss in C: cc inpany are ae!d by firi treat in cci travention of the invest™-.-nt Odtttsrii foi* trust funds laid dov.*n irs clause (dj 01 sub-section (1) read v.fih sub-section {?), of section i

Si.b-ciause (b){£.) seeks to amend the fxp-anation below the second proviso ;o ".'us section. The proposetl amendment Peeks fc< provide that lae expression ''maxio'-um marpnal rt<\a" #cul'j maun the rate of wealth-tax- appiirable in relation io the tilghe^t slab oF wealth In trie case ol a.u inaiv^duai '-',s specified in Part I of Schedule I to the Wealth-tax Act..

These amendments vill take effect fjcam :"t ApriXv iS83?ard wiil, acoorcuianyv Rpnly in reVition to the assesSTnent ye&x* 1S£5-B6 and subsequenc years.

Clause 35 read with the Second Schedule s'-sks to atrsend the Customs Tar:ff Act, i975,to -

(i) raise the rate <:-f basic cusicms duty (standard) cw slag, ash aisd residues containing meu-Js or metallic -compounds;

(ii) raise it rate of basic customs duty (standard) on certain categories of petrel"im oils a

(iii) raise the rate of basic customs duty (standard) on petroleum jelly and csriait mineral wutes;

(iv) raise the rate of basic customs duty (standard) on wools raw and wool tops;

(v) raise the rate of basic custo?ns cfcjty

(vi) revise the description of Heading No. 92„ 01/13 relating to -musical instraments^e^c.

Clause 36.seeks to levy up to the £Ist March, 1^35, auxiliary duties of ciatomss OK ail Imported goods at the rate of 50 per ceat, of their ifaliie.

€Ttause-'37-seeks to Insert ®i £xp^anatj^s, in smfcc-seotioi {1} of section 28 oi the Castojna Act l^ovidli^ for the exclusion of the period of stay mv"?r a court order in rele&lon. to compatatloa o£ time-limit for the service of notice fox 3lort le\ry; srroasous refund., etc,

Clause 28 seeks to add a proviso to sub-sectloa (2) "f section 61 of &a Customs Act eaabltog lae Beard to waive the Interest payable on warehoused gsoc'^ 'in pufeHie Intsrest &i0i uadesj exceptional cU'ciiiBEt slices.

Clause 39 seete to sabstttute sub--section (2) ©f section 12S of die Customs Afcfc by twe &ew s"ib~ serttous. Under the first amendment, it Is propose! to provL'-e tbut a perscti shall qu^Jiiy foi" apyslBt- m®Bt ss a Judicial member of the Cuatomse Excise and Gold (Ctoutrol) App"?iat* Trtlboiiai If ha '*•?& for at least ten 'ye''"ta'neld a judtdal'offiles is t ie tsrrttory of Irfia e? has te"s a member ©f tfe® Cutttral

Legal Service and has held a post In Grade I of that Service or any equivalent or higher poet for at least three years, A person who has been an advocate for at least ten years will continue to be eligible for such appointment as hitherto. For this purpose, In computing the period during which such a person haa held a judicial office, any period during which he has been an advocate or has held the office of a member of a tribunal or any post under the Union or State requiring special knowledge of law after he haa held any Judicial office will be Included. Similarly, In computing the period during which a person has been an advocate of a High Court, any period during which he has held a Judicial office or the office of a member of a tribunal or any post under the Union or State requiring special knowledge of law after he became an advocate will also be Included.

Under the second amendment, it Is proposed to provide that a person who has been a member of the Indian Customs and Central Excise Service, Group A and has held the post of Collector of Customs or Central Excise or any equivalent or higher post for at least three years will qualify for appointment as a technical member in the Appellate Tribunal.

Provision 19 alao being made for the appointment of a Senior Vice-President of the Appellate Tribunal.

Clause 40 seeks to exclude from the Jurisdiction of the Appellate Tribunal, customs cases relating to-

la) goods Imported as baggage,

(b) short-landed goods,

(c) payment of drawback.

Clause 41 seeks to raise the monetary limit of the customs cases to be decided by single member Benches of the Appellate Tribunal from Bs. 10, 000 to Hs, 50, 000.

Clause 42 provides for reduction In the time limit for seeking revision of the orders of the subordinate authorities by the Board/Collector.

Clause 43 seeks to provide for revision by the Central Government of the types of cases excluded from the Jurisdiction of the Appellate Tribunal under clause 40 of the BUI. The provisions are on the lines of the provisions which existed prior to the setting up of the Appellate Tribunal.

Clause 44 seeks to amend clause (f) of section 2 of the Central Excises Act to specifically include conversion of artificial or synthetic realns and plastic materials into moulding powder in the definition of "manufacture" in relation to artificial or synthetic resins and plastic materials covered under Item No. 1BA of the First Schedule to the Act.

Clause 45 seeks to amend section 3 of the Central Excises Act to provide for the levy of duty of excise on excisable goods produced or manufactured by a 100% export oriented unit and sold in India equal to the duties of customs leviable on importation of the like goods from abroad.

Clause 46 seeks to amend Explanation to section 4(4)(d)(ii) of the Central Excises Act to provide that in computing the amount of duty of excise deductible from the cum-duty price under any Act, the effective amount of duty of excise payable on goods under assessment shall not include the effect of the notification providing for set-off or proforma credit of the duty under the relevant Act but also the additional duty leviable under the Customs Tariff Act, 1975, already paid on the raw materials and component parts used in the production or manufacture of such goods.

Clause 47 seeks to exclude from the Jurisdiction of the Appellate Tribunal, central excise cases relating to ~

(a) goods lost in transit/storage, (b) goods exported under rebate of duty, (c) goods exported without payment of duty.

Clause 48 seeks to raise the monetary limit of the central excise cases to be decided by single member Bencheo of the Appellate Tribunal from Re. 10,000 to Rs. 50,000.

Clause 49 provides for reduction in the time limit for seeking revision of the orders of the subordinate authorities by the Board/Collector.

Clause 50 seeks to provide for revision by the Central Government of the types of cases excluded from the jurisdiction of the Appellate Tribunal under clause 47 of the Bill. The provisions are on the lines of the provisions which existed prior to the setting up of the Appellate Tribunal.

Clause 51 seeks to amend the First Schedule to the Central Excises Act.

Sub-clause (a) of this clause read with th" Third Schedule seeks to amend the First Schedule to the Central Excises Act to —

(a) omit Item Nos. IF, 11B, 22D, 23D and 24; (b) amend the description of sub-?tem 11(5) of Item No. 4 relating to chewing tobacco to specifically include certain tobacco preparations within its scope;

(c) amend the description of Item No. 16 relating to tyres to fix the specific rates of duties on cer specified varieties of tyres;

(d) amend the description of sub-Items (1) and (2) of Item No. 59 relating to magnetic tapes and sound-recorded magnetic tapes to widen the scope of the sub-items.

Sub-clause (b) of this clause, read with the Fourth Schedule also seeks to amend the First Schedule to the Central Excises Act to broadly align the excise classification in respect of copper, zinc, aluminium and lead with the corresponding customs classification.

This amendment will come into force from a date to be notified by the Central Government.

Clause 52 seeks to levy Up to the 31st day of March, 1985, special duties of excise on all excisable goods at the rate of 10% of the duty leviable under the Central Excises Act, read with any notification for the time being in force issued by the Central Government in relation to the duties so chargeable, other than a notification providing for set-off or proforma credit of the excise duty or the additional duty leviable under the Customs Tariff Act, 1975, already paid on the raw materials and component parts used in the production or manufacture of such goods.

Clause 53 read with the Fifth Schedule seeks to amend the FirBt Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 to change or amend the description of —

(1) sub-Item No. 11(2) of Item No, 4 relating to cigarettes to revise the rate of duty;

(2) sub-Item No. It(5) of Item No. 4 relating to chewing tobacco to specifically include certain tobacco preparations within its scope;

(3) Item No. 22 relating to man-made fabrics to revise the rate of duty.

Clause 54 seeks to amend section 32 of the Unit Trust of India Act, 1963, relating to income-tax and other taxes.

Sub-clause (a) seeks to omit clause (b) and clause (ba) of sub-section (1) of section 32 of the said Act. The omission of these two clauses is consequential to the amendments proposed under clause 15 and clause 34 of the Bill respectively.

Sub-clause (b) seeks to amend Explanation 1 to section 32(1) of the said Act. The amendments under this sub-clause are consequential to the omission of clause (b) and clause (ba) of section 32(1) of the Unit Trust of India Act under sub-clause (a) of this clause.

The proposed amendments will take effect from 1st April, 1985,and will, accordingly, apply in relation to the assessment year 1986-86 and subsequent years.

Clause 55 seeks to amend the Gold (Control) Act, 1968 - (a) to raise the monetary limit of the gold control cases lo be decided by single member Benches of the Appllate Tribunal from Rs. 10,000 to Rs. 50,000;and

(b) to reduce the time limit for seeking revision of the orders of the subordinate authorities by the Administrator/Collector from two years to one year.

FINANCIAL MEMORANDUM

Clause 24 of the Bill which seeks to insert a new sub-section (4A) In section 252 of the Income-

tax Act, 1961, empowers the Central Government to appoint one of the Vice-Presidents of the Income-

tax Appellate Tribunal to be the Senior Vice-President thereof. As the intention ia only to convert one

of the posts of Vice-Presidents Into that of Senior Vice-President, the expenditure Involved will be

to the extent of the difference in the salary of a Vice-President and a Senior Vice-President, which is

Re.250 per month. Thus the recurring expenditure on account of this provision would be Rs,3,000 per

year.

2. Clause 39(b) of the Bill which seeks to Insert a new sub-section (4A) in section 129 of the Customs

Act, 1962, empowers the Central Government to appoint one of the Vice-presidents of the Customs,

Excise and Gold (Cqptrol) Appellate Tribunal to be the Senior Vice-President thereof. As the Intention

Is only to convert one of the poets of Vice-Presidents into that of Senior Vice-Preflideut, the expendi-

ture Involved will be to the extent of the difference in the salary of a Vice-President and a Senior Vice-

President, which Is Ra.250 per month. Thus, the recurring expenditure on account of this provision

would be Rs.3,000 per year.

3. Clause 41 of the Bill relating to the Customs Act, 1962t clause 48 of the Bill relating to the

Central Excises and Salt Act, 1944 and clause 55(ja) of the Bill relating to the Gold (Control)Act,

1368, seek to enhance the powers of the single member Benches of the Customs, Excise and Gold

(Control) Appellate Tribunal. As a sequel to this proposal, the machinery of departmental

representatives would need to be strengthened. For this purpose, the creation of the following posts

is envisaged. The annual recurring expenditure in this regard is as follows:

Annual

expenditure

N O D.

Post

S.No.

Average

annual

expenditure

per Dost

_

Rs.

Rs.

1.

1

4 4

2. 3. 4. 6.

4 4

4

6. 7.

Chief Departmental Representative

Senior Departmental Representative

Junior Departmental Representative

Personal Assistant^tenographer

Upper Division Clerk

lower Division Clerk

Peon/Sepoy

4

49.000

40,700

32,200

16,700

13,100

10,400

7,300

Total

49,000

1,62,800

1,28,800

66,800

62,400

41,600

29,200

'6,30,600

4. Clauses 43 and 80 of the Bill seek to insert two new sections 129DD and 35EE in the Customs

Act, 1862 and the Central Excises and Salt Act, 1944,respectively which Invest the Central Government

with powers of revision against certain orders passed by the Collector of Customs (Appeals) or, as the

ease may be, the Collector of Central Excise (Appeals). It in proposed to utilise the existing machinery

for exercising the power* of revision under the aforesaid new sections. As such, no expenditure Is like!

to b* Involved when these new proviuions are enacted and brought Into operation.

6. The provisions of the Bill do not Involve any other expenditure of a recurring or non-recurring

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 2(7) of the Bill provides that if a company makes a deposit with the Industrial Development Bank of India in accordance with any scheme framed hy the Central Government, the surcharge on income-tax payable by the company will be reduced to the extent mentioned in the said sub-clause. The scheme to be framed by the Central Government will contain details as to the manner of making such deposits, the period for which such deposits may be made and other connected matters of detail.

Clause 15(a) of the Bill seeks to Insert a new clause (Ha) In sub-section (1) of section "0L of the Income- tax Act, 1961 which seeks to include Interest on deposits under such National Deposit Scheme framed by the Central Government aa may be notified by it In the Official Gazette as one of the categories of income qualifying for deduction under this section.

Clause 19(a) of the Bill seeks to provide that the permanent physical disability which would entitle an assessee to get deduction under section 80U of the Income-tax Act will henceforth bo only euch permanent physical disability of a type as may bu specified by the Central Board of Direct Taxes by rules made in this behalf. Sub-clause (b) of this clause also provides that in making any rules for specifying any disability under this section, the Board will take into account the nature of such disability and the effect which such disability ie likely to have on the capacity of the person Bubject thereto or suffering therefrom to engage in a gainful employment or occupation.

Clause 28 of the Bill seeks to Insert a new section 269SS in the Income-tax Act which provides that no person shall take or accept any loan or deposit otherwise than by an account payee cheque or account payee bank draft if the amount of such loan or deposit is ten thousand rupeea or more. The provisions of this section shall not apply to any loan or deposit taken from or accepted by, Government, banking company, etc., and such institu- tion, association or body, or class of Institutions, associations or bodies which the Central Government may, for reasons to be recorded In writing, notify in this behalf in the Official Gazette.

Clause 32 of the Bill seeks to amend section 281A of the Income-tax Act rolatlng to the effect of failure to furnish information in respect of properties held benaml. By an amendment to sub-section (1) of this section, it is proposed to replace the existing option of making a disclosure in the return of Income or net wealth or giving a notice to the Income-tax Officer before Instituting any suit in any court to enforce any right In respect ot property held benaml by a provision for giving notice within one year of the date of acquisition of the property to the Commissioner in the form to be prescribed by rules made by the Central Board of Direct Taxes under the Act and containing such particulars to be specified by the Board In such rules. New sub-section (LA) proposed to be inserted in this section provides that the prescribed notice containing the prescribed particulars required to be made under sub-section (1) aforesaid shall, In respect of any property acquired before 1st March, 1084, be deemed to have been fulfilled If such notice containing the particulars Is given to the Commissioner within a period of one year from that date. New sub-section (IB) provides that the aforesaid provisions of sub-section (1) and sub-section (1A) shall be deemed to have been fulfilled in respect of any suit relating to any immovable property of a value not exceeding Ra. 60,000 if notice in the prescribed form containing prescribed particulars in respect of the property is given by the claimant to the Commissioner at any time before the suit. The new sub-section (2) to this /section empowers the Commissioner, on an application made by the claimant In the manner prescribed by rules and on payment of the fees specified in such rules, to furnish a certified copy of any notice given by him under the aforesaid provisions.

Clause 34(a)(i)(2) of the Bill seeks to insert a new clause (xxva) in section 5(1) of the Wealth-tax Act. The new clause (xxva) proposes to provide for exemption In respect of any deposits under such National Deposit Scheme as may be framed by the Central Government and notified by it in this behalf In the Official Gazette,

Clause 43 of the Bill seeks to Insert a new section 129DD In the Customs Aot, 1962, This new section seeks to invest the Central Government with powers of revision In respect of certain orders passed by the Collector of Customs (Appeals) under section 128A of the Act on an application made by the person aggrieved by the order. Sub- section (3) of this section requires such application to be made In such form and shall bo verified In such manner as may be specified by rules made In this behalf by the Central Government,

Clause 50 of the Bill seeks to insert a new section 35EE in the Central Excises and Salt Act, 1944. This new section seeks to Invest the Central Government with powers of revision in respect of certain orders passed by the Collector of Central Excise (Appeals) under section 36A of that Act on an application made by the person aggrieved

by the order. Sub-section (3) of this section requires such application to be made In such form and shall bo verified In such manner as may be specified by rules made In this behalf by the Central Govornmont.

The delegation of legislative power under the afore-mentioned provisions relates to matters of procedure or administrative detail or to matters in respect of whloh it Is not practicable to make detailed provisions. Hence the delegation of legislative power is of a normal character.

SUBHASH C. KASIIYAP

Sec re tary -Gen eral.