9911796707
TMI BlogThe Finance Act, 1983 (No. 11 of 1983)X X X X Extracts X X X X X X X X Extracts X X X X ..... r purposes of the Union ; and (b) in the cases to which Paragraph E of that Part applies, by a surcharge, calculated in each case in the manner provided therein. (2) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding six hundred rupees, in addition to total income, and the total income exceeds,--- (i) in a case to which the said Sub-Paragraph I applies, fifteen thousand rupees, and (ii) in a case to which the said Sub-Paragraph II applies, twelve thousand rupees, then,--- (a) the net agricultural income shall be taken into account, in the manner provided in clause (b) (that is to say, as if the net agricultural income were comprised in the total income after,--- (i) in a case to which the said Sub-Paragraph I applies, the first fifteen thousand rupees, and (ii) in a case to which the said Sub-Paragraph II applies, the first eight thousand rupees, of the total income but without being liable to tax), only for the purpose of charging income-tax in respect of the total income ; and (b) the income-tax chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be. (4) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income-tax Act at the rates in force, the deduction shall be made at the rates specified in Part II of the First Schedule. (5) Subject to the provisions of sub-section (6), in cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the Income-tax Act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head " Salaries " or deducted under sub-section (9) of section 80E of the said Act from any payment referred to in the said sub-section (9) or in which the " advance tax " payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et agricultural income were comprised in the total income after,--- (i) in a case to which the said Sub-Paragraph I applies, the first fifteen thousand rupees, and (ii) in a case to which the said Sub-Paragraph II applies, the first eight thousand rupees, of the total income but without being liable to tax), only for the purpose of calculating, charging or computing such income-tax or, as the case may be, " advance tax " in respect of the total income ; and (b) such income-tax or, as the case may be, " advance tax " shall be so calculated, charged or computed as follows :--- (i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or " advance tax " shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income : Provided that in a case referred to in the said Sub-Paragraph II, for the purposes of determining the amount of income-tax or " advance tax " in accordance with this sub-clause, the provisions of clause (ii) of the proviso below the said Sub-Paragraph II and the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se where the amount of the deposit so made is equal to, or exceeds, one-half of the amount of surcharge on income-tax payable by it, by one-half of the amount of surcharge payable by it ; and (ii) in a case where the amount of the deposit so made falls short of one-half of the amount of surcharge on income-tax payable by it, by the amount of the deposit. (8) For the purposes of this section and the First Schedule,--- (a) " company in which the public are substantially interested " means a company which is such a company as is referred to in section 108 of the Income-tax Act ; (b) " domestic company " means an Indian company, or any other company which, in respect of its income liable to income-tax under the Income-tax Act for the assessment year commencing on the 1st day of April, 1983, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 194 of that Act ; (c) " industrial company " means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout a further right to participate in profits) carrying not less than fifty per cent. of the voting power have been allotted unconditionally to, or acquired unconditionally by, and were throughout the relevant previous year beneficially held by--- (a) the Government, or (b) a corporation established by a Central, State or Provincial Act, or (c) any company to which this clause applies or any subsidiary company of such company where such subsidiary company fulfils the conditions laid down in clause (b) of section 108. Explanation.--- In its application to an Indian company whose business consists mainly in the construction of ships or in the manufacture or processing of goods or in mining or in the generation or distribution of electricity or any other form of power, item (B) shall have effect as if for the words " not less than fifty per cent.", the words " not less than forty per cent. " had been substituted ; '. 4. Amendment of section 9.--- In section 9 of the Income-tax Act, in sub-section (1),--- (a) in clause (i), in the Explanation, after clause (b), the following clause shall be inserted and shall be deemed always to have been inserted, namely :-- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by notification in the Official Gazette, the limit of thirty-six thousand rupees, for all the three purposes for which it has been mentioned in the foregoing provisions of this clause, up to such maximum amount : Provided also that in relation to cases in which the event (that is to say, retirement of the employee or his becoming incapacitated or termination of his employment or his death, as the case may be) on which gratuity is received had taken place before the 31st day of January, 1982, the proviso immediately preceding this proviso shall not apply and the remaining provisions of this clause shall have effect as if for the words " thirty-six thousand rupees ", at the three places where they occur, the words " thirty thousand rupees " had been substituted.' ; (c) in clause (15),--- (i) in sub-clause (iib) [directed to be inserted by clause (d) of section 4 of the Finance Act, 1982 (14 of 1982)], for the words " interest on such Capital Investment Bonds ", the words " in the case of an individual or a Hindu undivided family, interest on such Capital Investment Bonds " shall be substituted ; (ii) in sub-clause (iv),--- (1) for item (a), the following item shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified in sub-section (5) of section 11 continue to remain so invested or deposited after the 30th day of November, 1983 ; or (iii) any shares in a company (not being a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or a corporation established by or under a Central, State or Provincial Act) are held by the association after the 30th day of November, 1983 ; " ; (e) in clause (26A),--- (i) for the figures, letters and words " 1st day of April, 1983 ", the figures, letters and words " 1st day of April, 1986 " shall be substituted ; (ii) the Explanation shall be numbered and shall be deemed to have been numbered with effect from the 1st day of April, 1980, as Explanation 1 and after Explanation 1 as so numbered, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1980, namely :--- " Explanation 2.--- In this clause, references to the district of Ladakh shall be construed as references to the areas comprised in the said district on the 30th day of June, 1979 ; ". 6. Amendment of section 11.--- In section 11 of the Income-tax Act,--- (a) in sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934) ; (iv) investment in units of the Unit Trust of India established under the Unit Trust of India Act, 1963 (52 of 1963) ; (v) investment in any security for money created and issued by the Central Government or a State Government ; (vi) investment in debentures issued by, or on behalf of, any company or corporation both the principal whereof and the interest whereon are fully and unconditionally guaranteed by the Central Government or by a State Government ; (vii) investment or deposit in any Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) ; (viii) deposits with or investment in any bonds issued by a financial corporation which is engaged in providing long-term finance for industrial development in India and which is approved by the Central Government for the purposes of clause (viii) of sub-section (1) of section 36 ; (ix) deposits with or investment in any bonds issued by a public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for reside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year. Explanation.--- Where the trust or institution has any other income in addition to profits and gains of business, the provisions of clause (iii) of this proviso shall not apply unless the trust or institution maintains separate books of account in respect of such business. " ; (b) in sub-section (2), in the opening portion, for the words, brackets and letter " provisions of clause (c) " the words, brackets and letters " provisions of clause (c) and clause (d) " shall be substituted ; (c) in sub-section (4), in the opening portion, for the words " in a case where ", the words, brackets and letter " but without prejudice to the provisions contained in clause (d) of that sub-section, in a case where " shall be substituted ; (d) sub-sections (5) and (6) shall be omitted. 8. Amendment of section 16.---In section 16 of the Income-tax Act, in clause (i), for the words " five thousand rupees ", the words " six thousand rupees " shall be substituted with effect from the 1st day of April, 1984. 9. Amendment of section 24.---In section 24 of the Income-tax Act, in sub-section (1), to clause (vi), the following Explanation shall be added with effect from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment and which has been notified in this behalf by the Central Government in the Official Gazette, is installed after the 31st day of May, 1983, in any industrial undertaking referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii) of clause (b) of sub-section (2), the provisions of sub-section (1) shall have effect in relation to such machinery or plant as if for the words " twenty-five per cent. ", the words " thirty-five per cent. " had been substituted.'. 12. Amendment of section 35.-- - In section 35 of the Income-tax Act, in sub-section (2A), after the words " pays any sum ", the brackets and words " (being any sum paid with a specific direction that the sum shall not be used for the acquisition of any land or building or construction of any building) " shall be inserted with effect from the 1st day of April, 1984. 13. Amendment of section 35B.---In section 35B of the Income-tax Act, in sub-section (1), in clause (a), after the words, figures and letters " after the 29th day of February, 1968 ", the words, figures and letters " but before the 1st day of March, 1983 " shall be inserted. 14. Amendment of section 35C.--- In section 35C of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r institution to the effect that--- (a) the prescribed authority had approved the association or institution before the 1st day of March, 1983 ; and (b) the training of persons for implementing any programme of rural development had been started by the association or institution before the 1st day of March, 1983. (2B) No certificate of the nature referred to in sub-section (2) or sub-section (2A) shall be issued by any association or institution unless such association or institution has obtained from the prescribed authority authorisation in writing to issue certificates of such nature. ". 17. Amendment of section 37.--- In section 37 of the Income-tax Act,--- (a) in sub-section (2A),--- (i) for clauses (iii) and (iv), the following shall be substituted with effect from the 1st day of, April, 1984, namely :--- " (iii) on the balance of the at the rate of 1/8 per cent., profits and gains of the business or profession (computed in the manner aforesaid) so, however, that the allowance shall in no case exceed Rs. 50,000 : " ; (ii) the Explanation shall be numbered and shall be deemed to have been numbered with effect from the 1st day of April, 1976, as Exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and, where the assessee is a company, conveyance allowance paid to its directors also. (3C) Nothing contained in sub-section (3A) shall apply in respect of expenditure incurred by an assessee, being a domestic company as defined in clause (2) of section 80B, or a person (other than a company), who is resident in India in respect of expenditure incurred wholly and exclusively on--- (i) advertisement, publicity and sales promotion outside India in respect of the goods, services or facilities which the assessee deals in or provides in the course of his business ; (ii) running and maintenance of motor cars in any branch, office or agency maintained outside India for the promotion of the sale outside India of such goods, services or facilities. (3D) No disallowance under sub-section (3A) shall be made--- (i) in the case of an assessee engaged in the business of operation of aircraft, in respect of expenditure incurred on running and maintenance of such aircraft ; (ii) in the case of an assessee engaged in the business of running motor cars on hire, in respect of expenditure incurred in running and maintenance of such motor cars." ; (c) after sub-section (4), the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of June, 1983,--- (a) in clauses (a) and (b), for the portion beginning with the words " from an Indian concern " and ending with the words " with the Indian concern ", the following shall be substituted, namely :--- " from Government or an Indian concern in pursuance of an agreement made by the foreign company with Government or with the Indian concern " ; (b) after clause (b) and before the Explanation, the following clause shall be inserted, namely :--- " (c) no deduction in respect of any expenditure or allowance shall be allowed under any of the said sections in computing income by way of interest received from Government or an Indian concern on moneys borrowed or debt incurred by the Government or the Indian concern in foreign currency. " ; (c) in the Explanation, in clause (d), for the portion beginning with the words " from an Indian concern " and ending with the words " with the Indian concern ", the following shall be substituted, namely :--- " from Government or an Indian concern in pursuance of an agreement made by a foreign company with Government or the Indian concern. ". 20. Amendment of section 54E.--- In section 54E of the Income-tax Act,--- (a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in clause (iiia), after sub-clause (b), the following sub-clause shall be inserted, namely :--- " (c) in relation to any additional compensation or additional consideration received after the 28th day of February, 1983, in any of the assets referred to in clause (c) of Explanation 1 below sub-section (1) by way of initial subscription thereto ; ". 21. Amendment of section 80C.--- In section 80C of the Income-tax Act, with effect from the 1st day of April, 1984,--- (a) in sub-section (2),--- (i) for clause (b) (occurring before the Explanation), the following clause shall be substituted, namely :--- " (b) where the assessee is a Hindu undivided family,--- (i) any sums paid in the previous year by the assessee out its income chargeable to tax--- (1) to effect or to keep in force an insurance on the life of any member of the family ; or (2) as a contribution to any provident fund referred to in sub-clause (iv) of clause (a), where such contribution is to an account standing in the name of any member of the family ; or (ii) any sums deposited in the previous year by the assessee out of its income chargeable to tax in a ten-year account or a fifteen-year ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Act, after section 80HHB (directed to be inserted by section 18 of the Finance Act, 1982) (14 of 1982), the following section shall be inserted, namely :--- 80HHC. Deduction in respect of export turnover.---(1) Where the assessee, being an Indian company or a person (other than a company), who is resident in India, exports out of India during the previous year relevant to an assessment year any goods or merchandise to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, the following deductions, namely :--- (a) a deduction of an amount equal to one per cent. of the export turnover of such goods or merchandise during the previous year ; and (b) a deduction of an amount equal to five per cent. of the amount by which the export turnover of such goods or merchandise during the previous year exceeds the export turnover of such goods or merchandise during the immediately preceding previous year. (2) (a) This section applies to all goods or merchandise [other than those specified in clause (b)] if the sale proceeds of such goods or merchandise exported out of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wered craft has been commenced by such company after the 31st day of March, 1983, but before the 1st day of April, 1988 ; and (iv) it is for the time being approved for the purposes of this sub-section by the Central Government. " ; (c) in sub-section (5),--- (i) in the opening portion, after the words " hotel starts functioning ", the words " or the company commences work by way of repairs to ocean-going vessels or other powered craft " shall be inserted ; (ii) after the proviso, the following proviso shall be inserted, namely :--- ' Provided further that in the case of art assessee carrying on the business of repairs to ocean-going vessels or other powered craft, the provisions of this sub-section shall have effect as if for the words " seven assessment years ", the words " four assessment years " had been substituted.' ; (d) in sub-section (6), after the word " hotel ", at both the places where it occurs, the words " or the business of repairs to ocean-going vessels or other powered craft " shall be inserted ; (e) in sub-section (8), after the words " operation of the ship ", wherever they occur, the words " or the business of repairs to ocean-going vessels ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case may be ; or (ii) the Government or a local authority ; or (iii) a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), or a corporation established by or under a Central, State or Provincial Act (being a company or corporation engaged in supplying milk, oilseeds, fruits or vegetables, as the case may be, to the public), the whole of the amount of profits and gains of such business ; ". 31. Amendment of section 80R.--- In section 80R of the Income-tax Act, for the words " such other association or body established outside India as may be notified in this behalf by the Central Government in the Official Gazette ", the words " any other association or body established outside India " shall be substituted with effect from the 1st day of April, 1984. 32. Insertion of new Chapter VI-B.--- In the Income-tax Act, after Chapter VI-A, the following Chapter shall be inserted with effect from the 1st day of April, 1984, namely :--- " CHAPTER VI-B RESTRICTION ON CERTAIN DEDUCTIONS IN THE CASE OF COMPANIES 80VVA. Restriction on certain deduction in the case of companies.-- - (1) Notwithstanding anything contained in any ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or, as the case may be, the aggregate amount of deduction, under those provisions, be allowed in the order in which the said provisions have been specified in sub-section (2), and accordingly--- (a) deduction shall first be allowed under the provision specified in clause (i) of sub-section (2) ; and (b) if no deduction is allowable under the provision specified in the said clause (i) or the deduction allowable under that provision is less than seventy per cent. of the pre-incentive total income, deduction shall next be allowed under the provision specified in clause (ii) of sub-section (2) ; and (c) if no deduction is allowable under the provision specified in the said clause (ii), or the deduction under that provision together with the deduction allowed under the provision referred to in the said clause (i), is less than seventy per cent. of the pre-incentive total income, deduction shall next be allowed under the provision specified in clause (iii) of sub-section (2) and so on until the aggregate deduction so allowed is equal to seventy per cent. of the pre-incentive total income. (4) To the extent to which full deduction cannot be allowed in the assessment year in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eement is approved by the Central Government, " ; (c) after clause (i), the following clause shall be inserted, namely :--- " (ia) the amount of income-tax calculated on the income by way of interest referred to in clause (aa), if any, included in the total income, at the rate of twenty-five per cent. ; " ; (d) in clause (iv), for the words, brackets and letter " and clause (b) ", the words, brackets and letters " clause (aa) and clause (b) " shall be substituted ; (e) in the Explanation, after clause (b), the following clause shall be inserted, namely :--- '(bb) " foreign currency " shall have the same meaning as in the Explanation below item (g) of sub-clause (iv) of clause (15) of section 10 ;'. 36. Insertion of new Chapter XII-A.--- In the Income-tax Act, after Chapter XII, the following Chapter shall he inserted with effect from the 1st day of June, 1983, namely :--- 'CHAPTER XII-A SPECIAL PROVISIONS RELATING TO CERTAIN INCOMES OF NON-RESIDENTS 115C. Definitions.--- In this Chapter, unless the context otherwise requires,--- (a) " convertible foreign exchange " means foreign exchange which is for the time being treated by the Reserve Bank of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see, being a non-resident Indian, consists only of investment income or income by way of long-term capital gains or both, the tax payable by him on his total income shall be the amount of income-tax calculated on such total income at the rate of twenty per cent. of such income as increased by a surcharge for purposes of the Union at the rate of twelve and a half per cent. of such income-tax. (2) Where the total income of an assessee, being a non-resident Indian includes any income of the nature referred to in sub-section (1), the tax payable by him on his total income shall be--- (i) the aggregate of the income-tax and surcharge payable by him in accordance with the provisions of sub-section (1) on income of the nature referred to in that sub-section included in the total income ; plus (ii) the amount of income-tax chargeable on the total income as reduced by the amount of income of the nature referred to in sub-section (1), had the total income so reduced been his total income. 115F. Capital gains on transfer of foreign exchange assets not to be charged in certain cases.--- (1) Where, in the case of an assessee being a non-resident Indian, any long-term capital gains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an by transfer) into money. 115G. Return of income not to be filed in certain cases.--- It shall not be necessary for a non-resident Indian to furnish under sub-section (1) of section 139 a return of his income if--- (a) his total income in respect of which he is assessable under this Act during the previous year consisted only of investment income or income by way of long-term capital gains or both ; and (b) the tax deductible at source under the provisions of Chapter XVII-B has been deducted from such income. 115H. Benefit under Chapter to be available in certain cases even after the assessee becomes resident.--- Where a person, who is a non-resident Indian in any previous year, becomes assessable as resident in India in respect of the total income of any subsequent year, he may furnish to the Income-tax Officer a declaration in writing along with his return of income under section 139 for the assessment year for which he is so assessable, to the effect that the provisions of this Chapter shall continue to apply to him in relation to the investment income derived from any foreign exchange asset being an asset of the nature referred to in sub-clause (ii) or sub-cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) acquiring lands or constructing buildings for the purposes of its business in the said area ; and (iii) shifting its machinery " ; (b) in sub-section (4), for the portion beginning with the words " Where a capital asset " and ending with the words " completion of construction ", the following shall be substituted namely :--- " Where a capital asset, being machinery or plant purchased for the purposes of the business of the company in the area to which the undertaking is shifted or building or land, or any right in building or land, acquired, or as the case may be, constructed in the said area, is transferred by the company within a period of five years from the date of purchase, acquisition or, as the case may be, the date of completion of construction ". 39. Consequential amendments to certain sections.--- The following amendments (being amendments of a consequential nature) shall be made in the Income-tax Act, namely :--- (a) in sub-section (3) of section 11, for clause (b), the following clause shall be substituted, namely :--- " (b) ceases to remain invested or deposited in any of the forms or modes specified in sub-section (5), or " ; (b) in sub-sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the net wealth on the corresponding valuation date of every company, not being a company in which the public are substantially interested, at the rate of two per cent. of such net wealth. Explanation.--- For the purposes of this sub-section, " company in which the public are substantially interested " shall have the meaning assigned to it in clause (18) of section 2 of the Income-tax Act. (2) For the purposes of sub-section (1), the net wealth of a company shall be the amount by which the aggregate value of all the assists referred to in sub-section (3), wherever located, belonging to the company on the valuation date is in excess of the aggregate value of all the debts owed by the company on the valuation date which are secured on, or which have been incurred in relation to, the said assets : Provided that where any debt secured on any assets belonging to the assessee is incurred for, or ensure to, the benefit of any other person, or is not represented by any asset belonging to the assessee, the value of such debt shall not be taken into account in computing the net wealth of the assessee. (3) The assets referred to in sub-section (2) shall be the followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation or body, whether incorporated or not and whether Indian or non-Indian, which the Central Government may, having regard to the nature and object of such institution, association or body, specify by notification in the Official Gazette and every notification issued under this sub-section shall be laid, as soon as may be after it is issued, before each House of Parliament. (7) Subject to the provisions of sub-section (5), this section shall be construed as one with the Wealth-tax Act. 41. Amendment of section 5.---In section 5 of the Wealth-tax Act, in sub-section (1),--- (a) for clause (xa), the following clause shall be substituted with effect from the 1st day of April, 1984, namely :--- " (xa) in the case of an assessee who is carrying on a profession (being legal, medical, engineering or architectural profession or the profession of accountancy or such other profession as is notified by the Central Government in this behalf) and who regularly maintains books of account on the cash system of accounting, the amount of any fee due to him in respect of the services rendered by him in such professional capacity ; " ; (b) for clause (xvic) [directed to be inserted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dal, trophy or award in kind is received by the assessee from Government or from a University established by law or an institution affiliated to such University or from any such institution, association or body as is approved for the purposes of this clause by the Central Government. Explanation.--- Any approval for the purposes of this clause may be given by the Central Government so as to have effect from a date not earlier than the 1st day of April, 1983 ;". Gift-tax 42. Amendment of section 5.--- In section 5 of the Gift-tax Act, 1958 (18 of 1958), in sub-section (1).--- (a) in clause (iid) [directed to be inserted by clause (a) of section 38 of the Finance Act, 1982 (14 of 1982)], for the portion beginning with the words " savings certificates " and ending with the words " rules made thereunder ", the following shall be substituted with effect from the 1st day of April, 1984, namely :--- " any foreign exchange asset as defined in clause (b) of section 115C of the Income-tax Act ; " ; (b) in clause (iiic) [directed to be inserted by clause (b) of section 38 of the Finance Act, 1982 (14 of 1982)], for the words " of property in the form of such Capital Inve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,825 plus 60 per cent. of the exceeds Rs. 1,00,000 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 Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent. of such income-tax. Sub-Paragraph II In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1983, exceeds Rs. 15,000,---- Rates of income-tax (1) where the total income Nil; does not exceed Rs. 8,000 (2) where the total income 22 per cent. of the amount by exceeds Rs. 8,000 but does not which the total income exceeds exceed Rs. 15,000 Rs. 8,000; (3) where the total income Rs. 1,540 plus 27 per cent. of the exceeds Rs. 15,000 but does not amount by which the total exceed Rs. 20,000 income exceeds Rs. 15,000; (4) where the total income Rs. 2,890 plus 35 per cent. of the exceeds Rs. 20,000 but does not amount by which the total exceed Rs. 25,000 income exceeds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he total income Rs. 2,500 plus 15 per cent. of the exceeds Rs. 50,000 but does not amount by which the total exceed Rs. 1,00,000 income exceeds Rs. 50,000; (5) where the total income Rs. 10,000 plus 24 per cent. of the exceeds Rs. 1,00,000 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 Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent. of such income-tax. Sub-Paragraph II In the case of every 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,---- Rates of income-tax (1) where the total income Nil; does not exceed Rs. 10,000 (2) where the total income 4 per cent. of the amount by exceeds Rs. 10,000 but does not which the total income exceeds exceed Rs. 25,000 Rs. 10,000; (3) where the total income Rs. 600 plus 7 per cent. of the exceeds Rs. 25,000 but does not amount by which the total exceed Rs. 50,000 income exceeds Rs. 25,000; (4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company); and (b) eighty per cent. of the amount by which its total income exceeds Rs. 1,00,000; (ii) the income-tax payable by a domestic company, not being a company in which the public are substantially interested, which is an industrial company and the total income of which exceeds Rs. 2,00,000 shall not exceed the aggregate of--- (a) the income-tax which would have been payable by the company if its total income had been Rs. 2,00,000 (the income of Rs. 2,00,000 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. 2,00,000. 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, but before the 1st day of April, 1976, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest payable on a tax-free security (C) on the whole of the income-tax at 30 per cent. and other income surcharge at 3.75 per cent. of the amount of the income, or income-tax and surcharge on income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of this Schedule, if such income had been the total income, whichever is higher; (ii) in the case of any other person--- (A) on the whole of income-tax at 30 per cent. and income (excluding interest surcharge at 3.75 per cent. of the payable on a tax-free amount of income. security) or income-tax and surcharge on income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of this Schedule, if such income had been the total income, whichever is higher; (B) on income by way of 15 per cent. 1.875 per cent.; interest payable on a tax-free security. 2. In the case of a company--- (a) where the company is a domestic company--- (i) on income by way of 20 per cent. 1 per cent.; interest other than " Interest on securities " (ii) on any other income 21.5 per cent. 1.075 per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n income by way of 44 per cent. 2.2 per cent.; interest payable on a tax-free security (vii) on any other income 70 per cent. 3.5 per cent. Explanation.--- For the purposes of this Part, " investment income " " long-term capital gains " and " non-resident Indian " shall have the meanings assigned to them in Chapter XII-A as directed to be inserted in the Income-tax Act by section 36 of this Act. PART III Rates for calculating or charging income-tax in certain cases, deducting income-tax from income chargeable under the head " Salaries " or any payment referred to in sub-section (9) of section 80E and computing " advance tax " In cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the Income-tax Act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said Act or deducted under section 192 of the said Act from income chargeable under the head " Salaries " or deducted under sub-section (9) of section 80E of the said Act from any payment referred to in the said sub-section (9) or in which the " advance tax " payable under Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the exceeds Rs. 1,00,000 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 Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twelve and a half per cent. of such income-tax. Sub-Paragraph II In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1984, exceeds Rs. 15,000,--- Rates of income-tax (1) where the total income Nil; does not exceed Rs. 8,000 (2) where the total income 22 per cent. of the amount by exceeds Rs. 8,000 but does not which the total income exceeds exceed Rs. 15,000 Rs. 8,000; (3) where the total income Rs. 1,540 plus 27 per cent. of the exceeds Rs. 15,000 but does not amount by which the total exceed Rs. 20,000 income exceeds Rs. 15,000; (4) where the total income Rs. 2,890 plus 35 per cent. of the exceeds Rs. 20,000 but does not amount by which the total exceed Rs. 25,000 income exceeds Rs. 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Rs. 25,000; (4) where the total income Rs. 2,500 plus 15 per cent. of the exceeds Rs. 50,000 but does not amount by which the total exceed Rs. 1,00,000 income exceeds Rs. 50,000; (5) where the total income Rs. 10,000 plus 24 per cent. of the exceeds Rs. 1,00,000 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 Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twelve and a half per cent. of such income-tax. Sub-Paragraph II In the case of every 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,---- Rates of income-tax (1) where the total income Nil; does not exceed Rs. 10,000 (2) where the total income 4 per cent. of the amount by exceeds Rs. 10,000 but does not which the total income exceeds exceed Rs. 25,000 Rs. 10,000; (3) where the total income Rs. 600 plus 7 per cent. of the exceeds Rs. 25,000 but does not amount by which the total exceed Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vernment (ii) on the balance, if any, 70 per cent. of the total income 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 calculated at the rate of five per cent. of such income-tax. Explanation.--- For the purposes of this Paragraph, " industrial company " means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power or carriage, by road or inland waterways, of passengers or goods or in the construction of ships or in the execution of projects or in the manufacture or processing of goods or in mining. Note.--- For the purposes of this Explanation,---- (i) a company shall be deemed to be mainly engaged in the business of generation or distribution of electricity or any other form of power or carriage, by road or inland waterways, of passengers or goods or in the construction of ships or in the execution of projects or in the manufacture or processing of goods or in mining, if the income attributable to any one or more of the aforesaid activities included in its total income of the previous year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al income and that the words, figures and letter " and before making any deduction under Chapter VI-A " shall be omitted. Rule 4.--- Notwithstanding anything contained in any other provisions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent. of such income shall be regarded as the agricultural income of the assessee. Rule 5.--- Where the assessee is a partner of a registered firm or an unregistered firm assessed as a registered firm under clause (b) of section 183 of the Income-tax Act, which in the previous year has any agricultural income, or is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of the said section 183 and which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an unregistered firm but has any agricultural income, then, the agricultural income or loss of the firm shall be computed in accordance with these rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 1st day of April, 1978, or the 1st day of April, 1979, or the 1st day of April, 1980, or the 1st day of April, 1981, or the 1st day of April, 1982, is a loss, then, for the purposes of sub-section (2) 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, 1975, 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, 1976, or the 1st day of April, 1977, or the 1st day of April, 1978, or the 1st day of April, 1979, or the 1st day of April, 1980, or the 1st day of April, 1981, or the 1st day of April, 1982, (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1976, 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, 1977, or the 1st day of April, 1978, or the 1st day of April, 1979, or the 1st day of April, 1980, or the 1st day of April, 1981, or the 1st day of April, 1982, (iii) th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous year, in such other period, 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 years commencing on the 1st day of April 1976, or the 1st day of April, 1977, or the 1st day of April, 1978, or the 1st day of April, 1979, or the 1st day of April, 1980, or the 1st day of April, 1981 or the 1st day of April, 1982, or the 1st day of April, 1983, is a loss, then, for the purposes of sub-section (6) 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, 1976, 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, 1977, or the 1st day of April, 1978, or the 1st day of April, 1979, or the 1st day of April, 1980, or the 1st day of April, 1981, or the 1st day of April, 1982, or the 1st day of April, 1983, (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1977, to the extent, if any, such loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commencing on the 1st day of April, 1984, or the period aforesaid. (3) Where a change has occurred in the constitution of a firm, nothing in sub-rule (1) or sub-rule (2) shall entitle the firm to set off so much of the loss proportionate to the share of a retired or deceased partner computed in the manner laid down in sub-section (1), sub-section (2) and sub-section (3) of section 67 of the Income-tax Act as exceeds his share of profits, if any, of the previous year in the firm, or entitle any partner to the benefit of any portion of the said loss (computed in the manner aforesaid), which is not apportionable to him. (4) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2). (5) Notwithstanding anything contained in this rule, no loss which has not been determined by the Income-tax Officer under the provisions of these rules or the rules contained in Part IV of the First Schedule to the Finance Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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