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TMI BlogAmendments at a glance, Rate structure, Amendments to Income-tax Act , wealth-tax Act, Gift-tax Act, Amendments to Companies (Profits) Surtax Act , Miscellaneous provisionsX X X X Extracts X X X X X X X X Extracts X X X X ..... or deduction of tax at source during the financial year 1973-74 from incomes, other than "salaries" and retirement annuities payable to partners of registered firms engaged in specified professions, are set forth in Part II of the First Schedule to the Finance Act, 1973. In the context of the provision made in the Income-tax Act for deduction of income-tax at source from insurance commission, the Finance Act, 1973 lays down the rates for deduction of income-tax not only from interest on securities, other categories of interest, dividends, winnings from lotteries and crossword puzzles and other categories of non-salary income of non-residents, but also for deduction of tax at source from income by way of insurance commission. Under another amendment made in the Income-tax Act, co-operative societies have been included in the categories of persons who are required to deduct tax at source from payments made to contractors in respect of works and labour contracts. The rates for deduction of tax at source prescribed in the Finance Act, 1973 in respect of the categories of income which are already liable to such tax are the same as specified in Part II of the First Schedule to the Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erative societies to sub-contractors, where the payment is made before 1-6-1973. As the rates for deduction of income-tax at source in respect of payments to contractors and sub-contractors have been laid down in the Income-tax Act, no specific provision in this regard has been made in Part II of the First Schedule to the Finance Act, 1973. The provisions of section 194C as explained in paragraph 11 of the Board's Circular No. 108, dated 20-3-1973 will apply in relation to deduction of income-tax from payments made by co-operative societies to contractors, or by contractors obtaining contracts from co-operative societies to sub-contractors, as they apply in relation to contracts granted by the Government, statutory corporations, companies and local authorities. Finance Act, 1973 Rates for deduction of tax at source from "salaries", computation of "advance tax" and charging of income-tax in special cases during the financial year 1973-74 5. Individuals, Hindu undivided families (other than those having one or more members with independent total income exceeding Rs. 5,000) and all other non-corporate taxpayers - The rates for deduction of tax at source from "salaries" in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded families having total income between Rs. 5,000 and Rs. 7,000 will now be chargeable to tax on current incomes where accelerated assessment is made under the first proviso to section 132(5) or section 175 or section 176(2). Further, non-resident Hindu undivided families having total income between Rs. 5,000 and Rs. 7,000 who were hitherto not liable to pay "'advance tax" will now be covered by the scheme of "advance tax". In the case of Hindu undivided families having one or more members with independent total income exceeding Rs. 5,000, however, a separate rate schedule has been prescribed in Sub-Paragraph II of Paragraph A of Part III of the First Schedule. The provisions of this Schedule have been explained in paragraph 7 below: Finance Act, 1973 6. A special provision has also been made for taking into account the net agricultural income of individuals, Hindu undivided families, unregistered firms, associations of persons, bodies of individuals and artificial juridical persons for determination of the rate to be applied to their total income if such total income exceeds Rs. 5,000. The manner in which the net agricultural income will be taken into account for determin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... least one member whose total income of the previous year relevant to the assessment year 1974-75 exceeds Rs. 5,000. Since the Income-tax Officer will not be in a position to know whether the aforesaid condition is fulfilled, the order under section 210 requiring the Hindu undivided family to pay advance tax will be on the basis of the rates specified in Sub-Paragraph I of the aforesaid Paragraph. Where, however, the assessee furnishes an estimate of his current income and the advance tax is payable by him on that income under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (3A) of section 212, income-tax will be calculated on the basis of the rates specified in the said Sub-Paragraph I or Sub-Paragraph II depending on whether or not the Hindu undivided family has at least one member whose total income of the previous year relevant to the assessment year 1974-75 exceeds Rs. 5,000. Necessary amendment has been made in Form No. 29 for furnishing the estimate of advance tax under the Income-tax (Third Amendment) Rules, 1973. Finance Act, 1973 9. Life Insurance Corporation of India and other companies - The rates of income-tax (including surcharge) applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of taxpayers). These provisions will apply during the financial year 1973-74 for the purposes of calculating "advance tax" and for charging income-tax in special cases, that is to say, for calculation of income-tax under section 132(5) on undisclosed income represented by seized assets, assessment under section 174(2) in the case of persons leaving India, assessment under section 175 in the case of persons likely to transfer property to avoid tax and assessment of profits of a discontinued business under section 176(2). The "net agricultural income" has been defined in section 2(7)(e) of the Finance Act, 1973 to mean the total amount of agricultural income, from whatever source derived, of a person computed in accordance with the rules contained in Part IV of the First Schedule to the Finance Act, 1973. The following points need special mention: 1. The scheme of partially integrated taxation of non-agricultural income with income derived from agriculture applies only in the case of individuals, Hindu undivided families, unregistered firms, associations of persons, bodies of individuals and artificial juridical persons. Registered firms, co-operative societies, local authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... increased by Rs. 5,000 will be calculated at the rate specified in Sub-Paragraph II of Paragraph A of Part III of the First Schedule. In the case of other categories of taxpayers covered by the Scheme, such calculations will be made in accordance with the rate schedule in Sub-Paragraph I of the said Paragraph A. Finance Act, 1973 13. Surcharge on income-tax in the case of individuals, Hindu undivided families having no member with independent total income exceeding Rs. 5,000 unregistered firms, etc., is levied on a differential basis depending upon the taxpayer's total income. Where the total income does not exceed Rs. 15,000, the surcharge on income-tax is calculated at the rate of 10 per cent and where the total income exceeds Rs. 15,000, the surcharge is calculated at the rate of 15 per cent. The provisions for the levy of surcharge at differential rates would have caused some difficulty in cases where the net agricultural income of a taxpayer did not exceed Rs. 10,000, but the aggregate of the agricultural and non-agricultural income exceeded Rs. 15,000. This is because, in such cases the surcharge on income-tax on the aggregate income would have been calculated at the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision for calculating surcharge in the case of Hindu undivided families having one or more members with independent total income exceeding Rs. 5,000 has been made as in the case of such Hindu undivided families the rate of surcharge has been fixed at a uniform rate of 15 per cent irrespective of the quantum of the total income. Finance Act, 1973 14. In order to determine the tax liability in the case of individuals, Hindu undivided families, etc., having agricultural income, total income will first be determined after allowing all deductions (including deductions under Chapter VIA of the Income-tax Act), net agricultural income will be computed in accordance with the rules in Part IV of the First Schedule to the Finance Act, 1973, and then income-tax is calculated as explained in paragraphs 12 and 13. The operation of these provisions is illustrated in the following examples: Example I Rs. Total income 4,000 Net agricultural income 1,00,000 No income-tax is payable as the total income does not exceed Rs. 5,000. EXAMPLE II Total income 7,000 Net agricultural income 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agricultural income as increased by Rs. 5,000 [I.T. Rs. 2,500+S.C. Rs. 375] 2,875(B) Tax payable by the taxpayer (A-B) [I.T. Rs. 1,500+S.C. Rs. 225] 1,725 Finance Act, 1973 15. Computation of net agricultural income - For purposes of calculating the tax in the case of individuals, Hindu undivided families, unregistered firms, associations of persons, bodies of individuals and artificial juridical persons who have net agricultural income in addition to the total income, the net agricultural income will be computed in accordance with the rules specified in Part IV of the First Schedule to the Finance Act, 1973. "Agricultural income" can broadly be classified as under: 1. Rent or revenue derived from land which is situated in India and is used for agricultural purposes. 2. Income derived from such land by (i) agricultural; or (ii) the performance by a cultivator or receiver of rent-in-kind of any process ordinarily employed by a cultivator or receiver of rent-in-kind to render the produce raised or received by him fit to be taken to market; or (iii) the sale by such person of the produce raised or received by him in respect of which no process has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble in respect of buildings, plant and machinery and furniture used for the purposes of agricultural operations at the rates prescribed in the Income-tax Rules. Land revenue paid by the taxpayer will qualify for deduction. Deduction will also be allowed in respect of animals which are used for agricultural operations and have died or become useless for such purposes. Further, expenditure incurred wholly and exclusively for purposes of carrying on agricultural operations will not be disallowed merely because the payment in respect thereof has not been made by crossed cheque or crossed bank draft. [Rule 2] Finance Act, 1973 18. Income derived from agricultural house property which is used as dwelling house by the receiver of rent or revenue or by the cultivator or the receiver of rent-in-kind will be computed as if such income is chargeable to tax under the head "Income from house property" and the provisions of sections 23 to 27 will apply accordingly. It has been specifically provided that where agricultural house property is occupied by the owner for purposes of his own residence, the annual letting value of such property will be computed after allowing deduction equal to on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registered firm under section 183(b) or in the agricultural loss of an association of persons or body of individuals. [Rule 7] Finance Act, 1973 22. Any sum payable by the taxpayer on account of any tax levied by a State Government on agricultural income will be allowed as deduction. [Rule 8] Finance Act, 1973 23. Where the net result of the computation of agricultural income from various sources as stated above is a loss, the loss will be disregarded and the net agricultural income of the taxpayer for the purposes of the rate schedule shall be taken at nil. Finance Act, 1973 24. The various steps involved in the computation of net agricultural income may, therefore, be summarised as follows: 1. Agricultural income of the nature referred to in sub-clause (a) or sub-clause (b) or sub-clause (c) of clause (1) of section 2 shall first be computed separately as indicated in paragraphs 16,17 and 18 of this circular. Agricultural income from the business of sale of tea grown or manufactured by him in India will, however, be computed in accordance with rule 8 of the Income-tax Rules, as explained in paragraph 19. 2. The taxpayer's share in the agricultural income de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cultural income derived from assets transferred by an individual to his spouse or minor children will not form part of his net agricultural income. Finance Act, 1973 26. The Finance Act, 1973 does not contain any provisions enjoining the Income-tax Officer to make enquiries regarding the agricultural income of the assessee for the purposes of computing the "advance tax" payable by him under section 209. As the Income-tax Officer will also have no information regarding the net agricultural income of the assessee for the previous year relevant to the assessment year 1974-75, he will have to compute the advance tax payable by the assessee on the basis of the information on record, i.e., without taking into account the net agricultural income which the assessee may have in addition to his total income. Notices under section 210 will, therefore, be issued on that basis. Where, however, the assessees file estimate of advance tax under sub-section (1), (2), (3) or (3A) of section 212, they will have to take their net agricultural income if any, into account in calculating the advance tax payable by them during the financial year 1973-74. Amendments to Income-Tax Act Measures ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in any corporation owned or controlled by the Government) of the management of the business or property of a taxpayer will be chargeable to income-tax as profits and gains of business. Management compensation paid by the Government for taking over the management of insurance companies will be liable to tax as profits and gains of business other than the business of insurance. In other words, the profits and gains of insurance business in the case of such companies will be computed in accordance with the rules contained in the First Schedule to the Income-tax Act, while the taxable amount of management compensation will be determined under the provisions contained in Chapter IVD in the same manner as profits and gains of a business other than insurance business.Consequential amendments have also been made in sections 80S and 112A. The effect of the amendment made in section 80S is that the deduction of 25 per cent allowed in computing the income by way of compensation for termination of managing agency, etc., will not be admissible in relation to management compensation. The amendment to section 112A secures that the management compensation is included in the total income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is earlier. 2. No tax will be deducted at source where the amount is credited or paid before 1-6-1973. 3. Income-tax will be deductible from the amounts credited or paid after 31-5-1973 even if the relevant amount accrued on or before that date. 4. In view of the existing provision in section 288B, the amount of tax to be deducted at source will be rounded off to the nearest rupee by ignoring amounts less than 50 paise and increasing the amounts of 50 paise or more to one rupee; 5. The tax deducted by, or on behalf of, the Government should be paid to the credit of the Central Government on the same day by book adjustment. In other cases, the tax deducted at source is required to be paid to the credit of the Central Government within the following time limits : (a) where the sum is credited by a person carrying on a business or profession to the account of the payee as on the date up to which the accounts of such business or profession are made, within two months of the expiration of the month in which that date falls ; (b) in any other case, within one week from the last day of the month in which the deduction is made The Income-tax Officer has, however, been au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n payments made by the Central Government or any State Government, local authorities, statutory corporations and companies to resident contractors engaged for carrying out any work or for supplying labour for carrying out such work, at the rate of 2 per cent of such payments. Similarly, deduction is made from payments made by contractors, other than individuals and Hindu undivided families, to resident sub-contractors at the rate of 1 per cent of the payment. No deduction is, however, required to be made if the consideration for the contract or the sub-contract does not exceed rupees five thousand. Section 194C has been amended with a view to including co-operative societies in the categories of persons who are required to deduct tax at source from payments made by them to contractors. As explained in paragraph 4(b) of this circular, the provisions of section 194C as explained in paragraph 11 of the Board's Circular No. 108, dated 20-3-1973 will apply in relation to deduction of income-tax from payments made by co-operative societies to contractors or by contractors obtaining contracts from co-operative societies to sub-contractors, as they apply in relation to contracts granted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e income. In the case of a person who saves Rs. 2,000 or more, the amount of deduction stands increased by Rs. 500 as compared to the position existing hitherto. 2. Sums paid under a contract of deferred annuity hitherto qualified for deduction even in cases where the contract for deferred annuity contained a provision for the exercise by the insured of an option to receive cash payments in lieu of the payment of annuity. It has now been specifically provided that payments made under contracts of deferred annuities will qualify for tax concessions only if the contract does not contain a provision for the exercise by the insured of an option to receive the cash payment in lieu of the payment of the annuity. These amendments will take effect from 1-4-1974 and will accordingly apply to the assessments for the assessment year 1974-75 and subsequent years. [Section 8 of the Finance Act] Finance Act, 1973 Tax concession in respect of donations made to sports associations and institutions - Section 80G 35. Under section 80G, a taxpayer is entitled, subject to certain conditions, to a deduction in the computation of his taxable income of a specified percentage of the donat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpayer purchases any other land or building or constructs any other building, within three years from the date of compulsory acquisition, for the purposes of shifting or re-establishing the industrial undertaking or setting up another industrial undertaking. In such cases, the capital gain will not be charged to tax to the extent it is utilised for purchasing or, as the case may be, constructing the new asset. In other words, in a case where the amount of the capital gain exceeds the cost of purchase or construction, only the excess amount will be chargeable to tax. Where the new asset is transferred within a period of three years of its purchase or construction, then, for the purposes of determining the amount of capital gain arising from the transfer of the new asset (i) the cost of the new asset will be taken at nil if the amount of the capital gain arising from the transfer of the old asset exceeded the cost of new asset ; and (ii) the cost of the new asset will be reduced by the amount of the capital gain arising from the transfer of the old asset if such capital gain was equal to or less than the cost of the new asset. Finance Act, 1973 38. A taxpayer whose land or bui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the new land, only the excess is chargeable to tax. A taxpayer may sometimes not be in a position to purchase another agricultural land before the completion of the assessment for the assessment year in which the capital gain arising from the transfer of agricultural land is charged to tax. With a view to ensuring that the existing tax concession is not denied in cases where the new land is purchased by the taxpayer after the completion of the assessment for the relevant assessment year, but within the specified period of two years, a specific provision has been made in the Income-tax Act, that, in such cases, the Income-tax Officer will amend the order of assessment so as to exclude the amount of capital gain not chargeable to tax. For the purposes of this provision, the four-year period of limitation for amending the order of assessment laid down in the Income-tax Act will be reckoned from the date of the assessment order for the year in which the capital gain is charged to tax. Finance Act, 1973 41. This amendment has come into force retrospectively from 1-4-1970, that is, the date from which section 54B was inserted by the Finance Act, 1970. [Section 15(a) of the Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt equal to 11/3rd times the amount of the qualifying expenditure. One of the heads of expenditure specified in the relevant provision as qualifying for the weighted deduction relates to expenditure incurred on "distribution, supply or provision outside India" of the goods, services or facilities dealt in or provided by the taxpayer in the course of his business. Another head of expenditure qualifying for the weighted deduction relates to expenditure incurred on "performance of services outside India" in connection with, or incidental to, the execution of any contract for the supply outside India of such goods, services or facilities. Finance Act, 1973 45. These provisions are susceptible of the interpretation that in the case of taxpayers engaged in the business of operating ships or aircraft, expenditure incurred on the transportation outside India of passengers, cargo, etc. (e.g., expenditure on the purchase of fuel and lubricants), will qualify for the weighted deduction. Similarly, it is also possible for a travel agent to claim that expenditure incurred by him on the carriage of, or making arrangement for the carriage of, passengers outside India, is also eligible for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngly apply in relation to the assessment year 1974-75 and subsequent years. [Sections 12 and 13 of the Finance Act] Amendment to Wealth-tax Act Finance Act, 1973 Separate rate schedule for ordinary wealth-tax in the case of certain Hindu undivided families 49. Under the existing provisions of the Wealth-tax Act, the rates of ordinary wealth-tax in the case of individuals and Hindu undivided families range from 1 per cent on the first slab of net wealth up to Rs. 5 lakhs to a maximum of 8 per cent on the slab of net wealth over Rs. 15 lakhs. No wealth-tax is, however, payable where the net wealth does not exceed Rs. 1 lakh in the case of an individual and Rs. 2 lakhs in the case of a Hindu undivided family. A new rate schedule of ordinary wealth-tax has been prescribed in the case of Hindu undivided families having one or more members with independent net wealth exceeding Rs. 1 lakh, i.e., the maximum amount not chargeable to wealth-tax in the case of an individual. Under the new rate schedule, the rate of tax applicable on various slabs of net wealth is the same as the rate of tax applicable to the next higher slab in the case of Hindu undivided families having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance Act] Amendments to Companies (Profits) Surtax Act Finance Act, 1973 Exclusion of debentures, other than long-term debentures, from the capital base 53. Under the Companies (Profits) Surtax Act (hereinafter referred to as "the Surtax Act"), surtax is levied at specified rates on so much of the chargeable profits of a company as exceeds the statutory deduction. The term "statutory deduction" means an amount equal to 10 per cent of the capital of the company as computed in accordance with the relevant provisions of that Act or an amount of Rs. 2 lakhs, whichever is greater. Broadly, the capital of a company is taken to be the aggregate, as on the first day of the relevant accounting year, of (i) its paid-up share capital ; (ii) its reserves (including development rebate reserve); (iii) its debentures, if any ; and (iv) any moneys borrowed on a long-term basis from Government or other specified sources. A doubt had been raised that in the absence of a specific definition of the word "debentures" in the Surtax Act, it would be construed widely to include even a bond or other document executed by a company as an acknowledgement of an existing debt or as a collateral s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome 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 total 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere the total income exceeds Rs. 10,000 but does not exceed Rs. 20,000 Rs. 1,500 plus 25 per cent of the amount by which the total income exceeds Rs. 10,000 (3) where the total income exceeds Rs. 20,000 Rs. 4,000 plus 40 per cent of the amount by which the total income exceeds Rs. 20,000 Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent of such income-tax. 3. Registered firms Rates of income-tax (1) where the total income does not exceed Rs. 10,000 Nil; (2) where the total income exceeds Rs. 10,000 but does not exceed Rs. 25,000 4 per cent of the amount by which the total income exceeds Rs. 10,000 (3) where the total income exceeds Rs. 25,000 but does not exceed Rs. 50,000 Rs. 600 plus 6 per cent of the amount by which the total income exceeds Rs. 25,000; (4) where the total income exceeds Rs. 50,000 but does not exceed Rs. 1,00,000 Rs. 2,100 plus 12 per cent of the amount by which the total income exceeds Rs. 50,000; (5) where the total i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax. 2. In the case of a company, other than the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956,— Rates of income-tax I. In the case of a domestic company— (I) where the company is a company in which the public are substantially interested- (i) in a case where the total income does not exceeds Rs. 50,000 45 per cent of the total income; (ii) in a case where the total income does not exceed Rs. 50,000 55 per cent of the total income; (2) where the company is not a company in which the public are substantially interested- (i) in the case of an industrial company- (a) on so much of the total income as does not exceed Rs. 10,00,000 55 per cent; (b) on the balance, if any, of the total income 60 per cent; (ii) in any other case 65 per cent of the total income: Provided that the income-tax payable by a domestic company being a company in which the public are substantially interested, the total income of which exceeds Rs. 50,000 shall not exceed the aggregate of— (a) the income-tax which would have been pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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 total 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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.42,000 plus 70 per cent of the amount by which the total income exceeds Rs. 40,000; (9) where the total income exceeds Rs. 60,000 but does not exceed Rs. 80,000 Rs.28,000 plus 75 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. 43,000 plus 80 per cent of the amount by which the total income exceeds Rs. 80,000; (11) where the total income exceeds Rs. 1,00,000 Rs. 59,000 plus 85 per cent of the amount by which the total income exceeds Rs. 1,00,000; 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 fifteen per cent of such income-tax. 3. Co-operative societies Rates of income-tax (1) where the total income does not exceed Rs. 10,000 15 per cent of the total income; (2) where the total income exceeds Rs, 10,000 but do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m" includes an unregistered firm assessed as a registered firm under clause (b) of section 183 of the Income-tax Act. 5. Local authorities Rate of income-tax On the whole of the total income - 50 per cent. Surcharge on income-tax The amount of income-tax computed at the rates hereinbefore specified shall be increased by a surcharge for the purposes of the Union calculated at the rate of fifteen per cent of such income-tax.B. Companies 1. In the case of the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956,— Rates of income-tax (i) on that part of its total income which consists of profits and gains from life insurance business 52.5 per cent; (ii) on the balance, if any, of the total income the rate of income-tax applicable, in accordance with Paragraph F of this part, to the total income of domestic company which is a company in which the public are substantially interested. Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge calculated at the rate of five per cent of such income-tax. 2. In the case of a c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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