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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 ..... g 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 Finance Act, 1972 for purposes of deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the case of individuals during the financial year 1973-74 and also for computation of "advance tax" payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comes 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 determining such rate is explained in paragraphs 12 to 14 of this circular. Finance Act, 1973 7. Hindu undivided famili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 in the case of the Life Insurance Corporation of India and other companies for purposes of computation of "advance tax" payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-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 and companies are thus outside the purview of the Scheme. 2. The Scheme will, during the financial year 1973-74, apply only for the purposes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egories 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 rate of 15 per cent while surcharge on income-tax on the net agricultural income as increased by Rs. 5,000 would have been calculated at the rate of 10 per cent. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 3,000 Income-tax on aggregate of Rs. 10,000 500 Surcharge at 10% 50 Income-tax (including surcharge) on aggregate income [I.T. Rs. 500+SC Rs. 50) 550(A) Income-tax on net agricultural income as increased by Rs. 5,000 (i.e. Rs. 8,000) 300 Surcharge at 10% 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 performed other than the process of the nature referred to in (2) above. 3. Income derived from any building owned and occupied by the receiver of rent or revenue of such land, or occupied by the cultivator or the receiver of rent-in-kind, provided the building is used as a dwelling house or as a store-house or other out-building. Finance Act, 1973 16. Rent or revenue derived from agricultural land will be computed on the same basis as is adopted for computation of income chargeable under the head "Income from other sources" under sections 57 to 59. The broad effect of this provision will be that any expenditure (not being in the nature of capital expenditure or personal expenses of the taxpayer) lai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 one-half of the annual value or Rs. 1,800, whichever is less, subject to overall ceiling of 10 per cent of his other agricultural income. Thus, the annual value of the agricultural house property which is occupied by the owner thereof for his own residence will in no case exceed 10 per cent of his other agricultural income computed in accordance with the rules specified in Part IV of the First Schedule to the Finance Act, 1973. [Rule 3] Finance Act, 1973 19. Where a taxpayer derives income from the business of sale of tea grown or manufactured by him in India, 60 per cent of the income from such business as computed in accordance with rule 8 of the Income-tax Rules will be regarded as the agricultural income of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 derived by unregistered firm, association of persons or body of individuals having total income exceeding Rs. 5,000, as also his share in the agricultural income or loss of an association of persons or body of individuals which has no income chargeable to tax under the Income-tax Act or has total income not exceeding Rs. 5,000 but has any agricultural income will be computed as explained in Paragraph 20 of this circular. 3. Losses incurred in respect of agricultural income from various sources will be set off against gains from agriculture from other sources in accordance with and subject to the provisions of rule 7. 4. The income or losses from various sources of agricultural income will then be aggregated and from the aggregate so arrived a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 for Raising Additional Revenue Finance Act, 1973 Enlargement of the scope of "short-term" capital gains 27. Under the provisions of the Income-tax Act prior to its amendment by the Finance Act, 1973, gains arising from the transfer of a capital asset held by the taxpayer for not more than twenty-four months prior to the date of the transfer were treated as capital gains relating to "short-term capital assets" and were chargeable to tax as ordinary income. Gains arising from the transfer of capital assets held by the taxpayer for more than twenty-four months prior to the date of the transfer were treated as "long-term" capital gains, and charged to tax on a concessional basis. The relevant provision in section 2(42A) has been amended by the Finance Act, 1973 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dments 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 taxpayer for the purpose of calculating tax payable in respect of interest on National Savings Certificates (First Issue) of the Bank Series of such certificates. Finance Act, 1973 30. These amendments have come into force with effect from 1-4-1972 and accordingly apply in relation to the assessment year 1972-73 and subsequent years. [Sections 4, 11 and 14 of the Finance Act] ENLARGEMENT OF THE SCOPE OF PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE Finance Act, 1973 31. The Finance Act, 1973 has introduced a new section 194D and has amended section 194C with a view to widening the area of collection of income-tax by deduction at source. The substance of the new provisions is explained below: Finance Act, 1973 Deduction of income-tax from payments in respect of insuran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 authorised to permit, in special cases and with the approval of the Inspecting Assistant Commissioner, any person to pay the income-tax deducted from insurance commission to the credit of the Central Government quarterly on 15th July, 15th October, 15th January and 15th April. 6. The person responsible for making deduction of income-tax under section 194D is required to issue a certificate showing therein the amount of the insurance commission credited or paid, the amount of tax deducted at source, etc., in Form No. 19D prescribed in the Income-tax Rules. 7. It is open to taxpayers, other than companies, to make an application to the Income-tax Officer concerned and obtain from him a certificate authorising the payer to deduct tax at such lower rate or deduct no tax as may be appropriate in his case. The application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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. [Section16 of the Finance Act] DEDUCTION IN RESPECT OF CERTAIN PAYMENTS Finance Act, 1973 Further incentive for effective long-term savings through specified media - Section 80C 34. Under the provisions of section 80C, tax relief is allowed in respect of long-term savings effected by certain categories of taxpayers out of their taxable income. In the case of an individual, long-term savings through life insurance or deferred annuity policies on the life of the individual, his spouse or children, certain provident funds and superannuation funds, Unit-linked Insurance Plan and 10-Year and 15-Year Cumulative Time Deposit Accounts qualify for tax relief. In the case of Hindu undivided families, long-term savings effected through insurance policies on the life o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars. [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 donations made by him to certain funds or charitable institutions, or for the repair or renovation of any temple, mosque, gurdwara, church or other place of worship, which is notified by the Central Government in the Official Gazette to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout any State or States. The deduction is equal to 50 per cent of the amount of the qualifying donations in the case of a company and 55 per cent of such amount in the case of other categories of taxpayers. Donations made by taxpayers to sports associations and institutions, however, do not qualify for tax relief under this provision as the mere promotion of any game or sport is not regarded as a "charitable purpose". With a view to providing an incentive to taxpayers to make more liberal donations to associations and instituti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfer 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 building is compulsorily acquired may sometimes not be in a position to purchase other land or building or construct other building for the purposes of shifting or re-establishing the industrial undertaking or setting up another industrial undertaking before the completion of the assessment for the assessment year in which the capital gain arising from compulsory acquisition of his land or building is charged to tax. In such cases, capital gain arising on compulsory acquisition will have to be included in the assessment of the taxpayer for the relevant assessment year. However, if after completion of the assessment, the taxpayer purchases another land or building or constructs a new building within the specified period of three years, it is but fair that the benefit of the tax concession should be allowed to him by amending the assessment order made earlier. Accordingly, section 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m 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 Finance Act] Finance Act, 1973 Withdrawal of existing condition regarding number and types of rooms, etc., for purposes of "tax holiday" concession in the case of approved hotels 42. Under section 80J, Indian companies carrying on the business of a hotel approved by the Central Government are entitled to the 5-year "tax holiday" concession, if they fulfil certain conditions specified in this behalf in the Income-tax Act. One of the conditions laid down in the law is that the hotel should have such number and types of guest rooms and should provide such amenities as may be prescribed in rules made by the Central Board of Direct Taxes, having regard to the population and the tourist importance of the place in which the hotel is located. Rule 18 of the Income-tax Rules, made by the Central Board of Direct Taxes provides that a hotel should have not less than 50 guest rooms with attached bath-rooms eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the weighted deduction. As such an interpretation of the relevant provisions would not be in conformity with the intention underlying these provisions, section 35B has been amended so as to make it clear that expenditure incurred by a taxpayer engaged in the business of operating any ship or other vessel, aircraft or vehicle, or the carriage of, or making arrangements for the carriage of, passengers, livestock, mail or goods, on or in relation to such operations, carriage or arrangements for carriage will not be regarded as expenditure incurred on the supply outside India of goods, services or facilities. Finance Act, 1973 46. This amendment has come into force retrospectively from 1-4-1968, i.e., the date from which section 35B was introduced in the Income-tax Act. [Section 5 of the Finance Act] Finance Act, 1973 Amendment of provisions relating to levy of additional tax on undistributed income in the case of cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alth-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 no member with independent net wealth exceeding Rs. 1 lakh. The rates of ordinary wealth-tax applicable in the case of such Hindu undivided families will be as follows : - on the first Rs. 5,00,000 of net wealth 2% - on the next Rs. 5,00,000 of net wealth 3% - on the balance of net wealth, i.e., net wealth in excess of Rs. 10,00,000 8% No wealth-tax will, however, be payable in a case where the net wealth of the Hindu undivided family does not exceed Rs. 2 lakhs. It is also being provided, by way of marginal relief, that ordinary wealth-tax payable shall not exceed 10 per cent of the amount by which the net wealth exceeds Rs. 2 lakhs. Finance Act, 1973 50. The new rate schedule in the case of Hindu undivided families having one or more members with independent net wealth exceeding Rs. 1 lakh will take effect from 1-4-1974 and will accordingly apply in relation to assessment year 1974-75 and subsequent years. The rates of wealth-tax in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 security for the purposes of obtaining short-term loans or even bank overdraft. As such an interpretation would be contrary to the underlying intention, the First and Second Schedules have been amended in order to clarify that the debentures of a company will be taken into account for computing its capital for the purposes of surtax only if they are issued to the public and, according to the terms and conditions of their issue, are not redeemable before the expiry of a period of seven years. Finance Act, 1973 54. These amendments will take effect from 1-4-1974 and will accordingly apply in relation to the assessments for the assessment year 1974-75 and subsequent years. [Section 22 of the Finance Act] Miscellaneous Provisions Finance Act, 1973 Exemption from tax of the income of the Credit Guarantee Corporation of India Ltd. 55. The Credit Guarantee Corporation of India Ltd. is registered as a company under the Companies Act, 1956. Approximately 55 per cent of its paid-up capital is held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 e ..... 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Surcharges on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the Union calculated as specified hereunder : (a) in the case of a registered firm whose total income includes income derived from a profession carried on by it and the income so included is not less than fifty-one per cent of such total income, a surcharge calculated at the rate of ten per cent of the amount of income-tax computed at the rate hereinbefore specified; (b) in the case of any other registered firm, a surcharge calculated at the rate of twenty per cent of the amount of income-tax computed at the rate hereinbefore specified ; and (c) a special surcharge calculated at the rate of fifteen per cent on the aggregate of the following amounts, namely : (i) the amount of income-tax computed at the rate hereinbefore specified; and (ii) the amount of the surcharge calculated in accordance with clause (a), or as the case may be, clause (b). 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 Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xceeds Rs. 50,000. 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 an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March, 1961, or (b) fees for rendering technical services received from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 29th day of February, 1964, 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 - 70 per cent. 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. Annexure II Rates for calculating or charging Income-tax in certain cases, deducting income-tax at source from "Salaries" and retirement annuities and computing "Advance tax" during the financial year 1973-74 A. Taxpayers other than Companies 1. Individuals, Hindu undivided families (other than Hindu undivided families which have at least one member whose total income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exceed Rs. 15,000 - 10 per cent ; (b) in any other case - 15 per cent : Provided that the amount of surcharge payable shall, in no case, exceed the aggregate of the following sums, namely : (i) an amount calculated at the rate of 10 per cent on the amount of income-tax on an income of Rs. 15,000, if such income had been the total income (the income of Rs. 15,000, for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the person concerned); and (ii) 40 per cent of the amount by which the total income exceeds Rs. 15,000. 2. Hindu undivided families which have at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1974 exceeds Rs. 5,000,— 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 17 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. 850 plus 23 per cent of the amount by which the total income exceeds Rs. 10,000; ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 income exceeds Rs. 1,00,000 Rs. 8,100 plus 20 per cent of the amount by which the total income exceeds Rs. 1,00,000; Surcharges on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the Union calculated as specified hereunder : (a) in the case of a registered firm whose total income includes income derived from a profession carried on by it and the income so included is not less than fifty-one per cent of such total income, a surcharge calculated at the rate of ten per cent of the amount of income-tax computed at the rate hereinbefore specified; (b) in the case of any other registered firm, a surcharge calculated at the rate of twenty per cent of the amount of income-tax comput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax payable by a domestic company being a company in which the public are substantially interested, the total income of which exceeds Rs. 1,00,000 shall not exceed the aggregate of— (a) the income-tax which would have been payable by the company if its income had been Rs. 1,00,000 (the income of Rs. 1,00,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and (b) eighty per cent of the amount by which its total income exceeds Rs. 1,00,000. 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 an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March, 1961, or (b) fees for rendering technical services from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 29th day of February, 1964, 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 - 70 per cent. Surcharge on income-tax The amount of income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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