Clarification on the Explanatory Notes on the provisions of the Taxation Laws (Amendment) Act, 1991 - Income Tax - 598/1991

Clarification on the Explanatory Notes on the provisions of the Taxation Laws (Amendment) Act, 1991 Circular No. 598 Dated 3/4/1991 In paragraphs 3 and 4 of Board's Circular No.591 dated 30.1.1991 (See [1991] 188 ITR (St.) 1) explaining the provisions of the Taxation Laws (Amendment) Act, 1991, it has been stated that surcharge at the enhanced rates would be payable also in cases where income-tax has to be charged under sub-section (4) of section 172 of the Income-tax Act (relating to collection of tax in respect of profits of non- residents from occasional shipping business) at the rates in force for the financial year 1990-91. Since the Finance Act, 1990, as amended by the Taxation Laws (Amendment) Act, 1991, provides that no surcharge is payable by a non-resident taxpayer, it follows that in cases where income-tax has to be charged under sub-section (4) of section 172 of the Income-tax Act, no surcharge would be payable. In view of the above, paragraphs 3 and 4 of Board's Circular No. 591 dated 30-1-1991 (See [1991] 188 ITR (St.) 1) may be read as modified accordingly. (Sd.) Anil Vivian Singh, Under Secretary, Central Board of Direct Taxes.