Section 2 - Income-Tax - Finance Act, 1998

2. Income-Tax The provisions of section 2 of, and the First Schedule to, the Finance Act, 1997 (26 of 1997), 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, 1998, as they apply in relation to income-tax for tire assessment year or, as the case may be, the : financial year commencing on the 1st April, 1997, with the following modifications, namely : (a) in section 2, - (i) for the figures 1997 , wherever they occur, the figures 1998 shall be substituted; (ii) in sub-section (1), the words and letter and such tax shall he increased in the cases to which Paragraph E of that Part applies, by a surcharge, calculated in the manner provided therein shall be omitted; (iii) in sub-section (3), the first and second proviso shall be omitted; (b) in the First Schedule,- (i) For Part I, the following Part shall be substituted, namely; PART I Income-tax Paragraph A In the case of every individual or Hindu undivided family or 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. 40.000 Nil; (2) where the total income exceeds Rs. 40,000 but does not exceeds Rs. 60,000 10 per cent of the amount by which the total income exceeds Rs. 40,000; (3) where the total income exceeds Rs. 60,000 but does not exceed Rs. 1,50,000 Rs. 2,000 plus 20 per cent of amount by which the total income exceeds Rs. 60,000. (4) where the total income exceeds Rs. 1,50,000 Rs. 20,000 plus 30 per cent of the amount by which the total income exceeds Rs. 1,50.000 Paragraph B In the case of every co-operative society,- Rates of income-tax (1) where the total income does not exceed Rs. 10,000 10 per cent of the total income; (2) where the total income exceeds Rs. 10,000 but dues Not exceed Rs. 20,000 Rs. 1,000 plus 20 per cent of the amount by which the total income (3) where the total income exceeds Rs. 20,000 Rs. 3,000 plus 35 per cent of the amount by which the total income exceeds Rs. 20,000. Paragraph C In the case of every firm,- Rate of income-tax On the whole of the total income 35 per cent Paragraph D In the case of every local authority,- Rate of income-tax On the whole of the total income 30 per cent Paragraph E In the case of a company, - I. In the case of a domestic company 35 per cent of the total income; II. In the case of a company, other than a domestic company,- (i) on so much of the total income as consists of - (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976, or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government 50 per cent; (ii) on the balance, if any, of the total Income 48 per cent; (ii) in Part IV, in rule 8,- (A) for sub-rules (l) and (2), the following sub-rules shall be substituted, namely : (1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1 st April, 1998, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment year commencing on the 1st day of April, 1990 or the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997, is a loss, then, for the purposes of sub-section (2) of this Act,- (i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1990, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1991 or the 1st day of April. 1992 or the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 of the 1st day of April, 1996 or the 1st day of April, 1997, (ii) the Loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1991, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997. (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1992, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 of the 1st day of April, 1997, (iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1993, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997 (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1994, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1995 or the 1st day of April 1996 or the 1st day of April, 1997, (vi) the loss so computed for the previous year relevant to the assessment Year commencing on the 1st day of April, 1995, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1996 or the 1st day of April, 1997, (vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1996, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on 1st day of April, 1997, (viii) the loss so computed for the previous year relevant to the assessment year commencing on 1st day of April, 1997, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1998. (2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1999 or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than that previous year, in such other period, any agricultural income and the net result of the computation of agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1991 or the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April. 1996 or the 1st day of April, 1997 or the 1st day of April, 1998 is a loss, then, for the purposes of subsection (9) of section 2 of this Act, - (i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1991, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1992 or the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st day of April, 1998, (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1992, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1993 or the 1st day of April, 1994 or the 1st day of April, 1995 of the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st day of April, 1998, (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1993, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1994 or the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st day of April, 1998, (iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1994, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1995 or the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st day of April, 1998, (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1995, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1996 or the 1st day of April, 1997 or the 1st day of April, 1998, (vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1996, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1997 or the 1st day of April, 1998, (vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1997, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 1998, (viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1998, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1999. (B) for sub-rule (4), the following sub-rule shall be substituted, namely : (4) Notwithstanding anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in Part IV of the First Schedule to the Finance Act, 1990 (12 of 1990), or of the First Schedule to the Finance (No. 2) Act, 1991 (49 of 199 1), or of the First Schedule to the Finance Act, 1992 (18 of 1992), or the First Schedule to the Finance Act, 1993 (38 of 1993), or of the First Schedule to the Finance Act, 1994 (32 of 1994), or of the First Schedule to the Finance Act, 1995 (22 of 1995), or of the First Schedule to the Finance (No. 2) Act, 1996 (33 of 1996), or of the First Schedule to the Finance Act 1997 (26 of 1997), shall be set off under sub-rule (l) or, as the case may be, sub-rule (2). RAGHBIR SINGH, Secy. to the Govt. of India.