Section 2 - Income-tax - Finance Act, 1971

2. Income-tax The provisions of section 2 of, and the First Schedule to, the Finance Act, 1970(19 of 1970), shall apply in relation to income-tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 1971, as they apply in relation to income-tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 1970, with the following modifications, namely:- (a) in section 2,- (i) for the figures 1970 , wherever they occur, the figures 1971 shall be substituted; (ii) for sub-section (3), the following sub-section shall be substituted, namely:- (3) In cases to which Chapter XII or section 164 of the Income-tax Act, 1961(43 of 1961.) (hereinafter referred to as the Income-tax Act) applies, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (I) or the rates as specified in that Chapter or section, as the case may be. ; (iii) in sub-section (5), the following proviso shall be inserted at the end, namely:- 'Provided that in respect of any income chargeable to tax under section 164 of the Income-tax Act at the rate of sixty-five per cent., advance tax shall be computed at that rate.'; (b) in the First Schedule,- (i) in Part I,- (1) for Paragraph A, the following Paragraph shall be substituted, namely:- Paragraph A 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 (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,- Rates of income-tax. (1) where the total income does not exceed Rs. 5,000 Nil; (2) where the total income exceeds Rs. 5,000 but does not exceed Rs. 10,000. 10 per cent. of the amount by which the total income exceeds Rs. 5,000; (3) where the total income exceeds Rs. 10,000 but, does not exceed Rs. 15,000 Rs. 500 plus 17 per cent. of the amount by which the total income exceeds Rs. 10,000; (4) where the total income exceeds Rs. 15,000 but does not exceed Rs. 20,000 Rs. 1,350 plus 23 per cent. of the amount by which the total' income exceeds Rs. 15,000; (5) where the total income exceeds Rs. 20,000 but does not exceed Rs. 25,000 Rs. 2,500 plus 30 per cent. of the amount by which the total income exceeds Rs. 20,000; (6) where the total income exceeds Rs. 25,000 but does not exceed Rs. 30,000 Rs. 4,000 plus 40 per cent. of the amount by which the total income exceeds Rs. 25,000; (7) where the total income exceeds Rs. 30,000 but does not exceed Rs. 40,000 Rs. 6,000 plus 50 per cent of the amount by which the total income exceeds Rs. 30,000; (8) where the total income exceeds Rs. 40,000 but does not exceed Rs. 60,000 Rs. 11,000 plus 60 per cent of the amount by which the toad income exceeds Rs. 40,000; (9) where the total income exceeds Rs. 60,000 but does not exceed Rs. 80,000 Rs. 23,000 plus 70 per cent. of the amount by which the total income exceeds Rs. 60,000; (10) where the total income exceeds Rs. 80,000 but does not exceed Rs. 1,00,000 Rs. 37,000 plus 75 per cent. of the amount by which the total income exceeds Rs. 80,000; (11) where the total income exceeds Rs. 1,00,000 but does not exceed Rs. 2,00,000 Rs. 52,000 plus 80 per cent. of the amount by which the total income exceeds Rs. 1,00,000; (12) where the total income exceeds Rs. 2,00,000 Rs. 1,32,000 plus 85 per cent. of the amount by which the total income exceeds Rs. 2,00,000: Provided that for the purposes of this Paragraph, in the case of a Hindu undivided family which at any time during the previous year satisfies either of the following two conditions, namely:- (a) that it has at least two members entitled to claim partition who are not less than eighteen years of age, or (b) that it has at least two members entitled to claim partition who are not lineally descended one from the other and who are not lineally descended from any other living member of the family,- (i) no income-tax shall be payable on a total income not exceeding Rs. 7,000; (ii) where the total income exceeds Rs. 7,000 but does not exceed Rs. 7,660, the income-tax payable thereon shall not exceed forty per cent. of the amount by which the total income exceeds Rs. 7,000. Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent. of such income-tax. ; (2) in Paragraph C, the following Explanation shall be (inserted at the end, namely:- 'Explanation.-For the purposes of this Paragraph, registered firm includes an unregistered firm assessed as a registered firm under clause (b) of section 183 of the Income-tax Act.'; (ii) in Part III,- (1) in the opening portion, after the words 'as the case may be, advance tax ', the brackets, words and figures ' (not being advance tax in respect of any income chargeable to tax under section 164 of the Income-tax Act at the rate of sixty-five per cent.)' shall be inserted; (2) in Paragraph A, for the figures 1971 occurring in the proviso, the figures 1972 shall be substituted; (3) in Paragraph C, the following Explanation shall be inserted at the end, namely:- 'Explanation.-For the purposes of this Paragraph, registered firm includes an unregistered firm assessed as a registered firm under clause (b) of section 183 of the Income-tax Act.'.