Section 31 - Substitute of new section for section 280X - Finance Act, 1966

31. Substitute of new section for section 280X For section 280X of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 1967, namely:- '280X. Liability to pay additional income-tax in certain cases.- (1) Where in relation to the assessment year commencing on the 1st day of April, 1967 or any subsequent assessment year, a depositor does not make any annuity deposit during the financial year immediately preceding such assessment, year or such further period as may be allowed by the Income-tax Officer under the proviso to clause (ii) of sub-section (2) of section 280C, or the amount of annuity deposit made by him during the financial year or further period aforesaid falls short of the annuity deposit required to be made (which short-fall is hereafter, in this section, referred to as deficiency), he shall, in addition to the income-tax payable by him for that assessment year, be liable to a further amount of income-tax calculated in the manner specified in sub-section (2): Provided that nothing contained in this section shall apply in a case where- (a) such depositor is more than seventy years of age on the last day of the previous year relevant to the assessment year: or (b) the total income of such depositor of the previous year relevant to the assessment year (the total income for this purpose being computed without making any allowance under section 280O) does not exceed twenty-five thousand rupees. (2) The further amount of income-tax referred to in sub-section (1) shall be- (i) in a cage where the depositor does not make any annuity deposit, a sum equal to fifty per cent. of the amount by which the amount of annuity deposit required to be made in respect of that assessment year exceeds the difference between- (a) the tax payable by him on his total income, and (b) the tax that would have been payable had his total income been reduced by the amount of annuity deposit required to be made; (ii) In a case where the amount of annuity deposit made by him falls short of the annuity deposit required to be made, a sum equal to fifty per cent. of the amount by which the amount of the deficiency exceeds the difference between- (a) the tax payable by him on his total income, and (b) the tax that would have been payable had his total income been reduced by the amount of the deficiency. Explanation.-In this section, the expression annuity deposit required to be made shall mean- (i) the amount of annuity deposit calculated on the adjusted total income of the depositor at the rate or rates specified in the Finance Act of the relevant year, or (ii) the amount by which the total income of the depositor for the relevant assessment year (such total income being computed without making any allowance under section 280O) exceeds twenty-five thousand rupees, whichever is less,'.