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TMI BlogThe Finance Act, 1986X X X X Extracts X X X X X X X X Extracts X X X X ..... at where an assessee, being a company, has made, during the financial year commencing on the 1st day of April, 1985, any deposit with the Industrial Development Bank of India established under the Industrial Development Bank of India Act, 1964 (18 of 1964), under the Companies Deposits (Surcharge on Income-tax) Scheme, 1985, then, the surcharge on income-tax payable by the company,-- (a) in a case where the amount of the deposit so made is equal to, or exceeds, the amount of surcharge on income-tax payable by it, shall be nil ; and (b) in a case where the amount of the deposit so made falls short of the amount of surcharge on income-tax payable by it, shall be reduced by the amount of the deposit. (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, eighteen thousand rupees, and (ii) in a case to which the said Sub-Paragraph II applies, twelve thousand rupees, then,-- (a) the net agricu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct 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 or, as the case may be, " advance tax " shall be so calculated, charged, deducted or computed at the rate or rates specified in Part III of the First Schedule : Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (1A) of section 161 or section 164 or section 164A or section 167A of the Income-tax Act apply, " advance tax " shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income as so increased at the rates specified in the said Sub-Paragraph I or, as the case may be, the said Sub-Paragraph II, as if the net agricultural income as so increased were the total income ; (iii) the amount of income-tax or " advance tax " determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, " advance tax " determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, " advance tax " in respect of the total income. (7) 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, 1986, 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be substituted with effect from the 1st day of April, 1987, namely :-- " a sum equal to thirty per cent. of the salary or ten thousand rupees, whichever is less ". 5. Amendment of section 23.--In section 23 of the Income-tax Act, with effect from the 1st day of April, 1987,-- (a) for sub-section (2), the following sub-section shall be substituted, namely :-- (2) Where the property consists of-- (a) a house or part of a house in the occupation of the owner for the purposes of his own residence,-- (i) which is not actually let during any part of the previous year benefit therefrom is derived by the owner, the annual value of such house or part of the house shall be taken to be nil ; (ii) which is let during any part or parts of the previous year, that part of the annual value (annual value being determined in the same manner as if the property had been let) which is proportionate to the period during which the property is in the occupation of the owner for the purposes of his own residence, or, as the case may be, where such property is let out in parts, that portion of the annual value appropriate to any part which was occupied by the owner for his own residence, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l apply to the allowance of a deduction under clause (vi) of sub-section (1) of an amount not exceeding five thousand rupees in respect of the property of the nature referred to in sub-clause (i) of clause (a) of sub-section (2) of section 23. (3) The total amount deductible under sub-section (1) in respect of property of the nature referred to in sub-clause (ii) of clause (a) of sub-section (2) of section 23 shall not exceed the annual value of the property as determined under that section. ". 7. Amendment of section 32A.--In section 32A of the Income-tax Act,-- (a) in sub-section (2),-- (i) in clause (c), for the figures, letters and words " 1st day of April, 1988, " the figures, letters and words " 1st day of April, 1987, " shall be substituted with effect from the 1st day of April, 1987 ; (ii) in clause (2) of the Explanation, for sub-clauses (i) and (ii), the following sub-clauses shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1985, namely :-- "(i) in a case where the previous year ends before the 1st day of August, 1980, ten lakh rupees ; (ii) in a case where the previous year ends after the 31st day of J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of any article or thing specified in the list in the Eleventh Schedule carried on by an industrial undertaking, which is not a small-scale industrial undertaking as defined in section 80HHA ; (b) the business of leasing or hiring of machinery or plant to an industrial undertaking, other than a small-scale industrial undertaking as defined in section 80HHA, engaged in the business of construction, manufacture or production of any article or thing specified in the list in the Eleventh Schedule ; (ii) " new ship " or " new aircraft " or " new machinery or plant " shall have the same meanings as in the Explanation to clause (vi) of sub-section (1) of section 32. (3) The profits of eligible business or profession of an assessee for the purposes of sub-section (1) shall,-- (a) in a case where separate accounts in respect of such eligible business or profession are maintained, be an amount arrived at after deducting an amount equal to the depreciation computed in accordance with the provisions of sub-section (1) of section 32 from the amounts of profits computed in accordance with the requirements of Parts II and III of the Sixth Schedule to the Companies Act, 1956 (1 of 1956), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordance with the scheme, either wholly or in part, within that previous year, the whole of such amount or, as the case may be, part thereof which is not so utilised shall be deemed to be the profits and gains of business or profession of that previous year and shall accordingly be chargeable to income-tax as the income of that previous year. (7) Where any asset acquired in accordance with the scheme is sold or otherwise transferred in any previous year by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired, such part of the cost of such asset as is relatable to the deductions allowed under sub-section (1) shall be deemed to be the profits and gains of business or profession of the previous year in which the asset is sold or otherwise transferred and shall accordingly be chargeable to income-tax as the income of that previous year : Provided that nothing in this sub-section shall apply-- (i) where the asset is sold or otherwise transferred by the assessee to Government, a local authority, a corporation established by or under a Central, State or Provincial Act or a Government company as defined in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fect from the 1st day of April 1974, namely :-- " Explanation 8.--For the removal of doubts, it is hereby declared that where any amount is paid or is payable as interest in connection with the acquisition of an asset, so much of such amount as is relatable to any period after such asset is first put to use shall not be included, and shall be deemed never to have been included, in the actual cost of such asset. ". 10. Amendment of section 50.--In section 50 of the Income-tax Act, in clause (2), for the figures, letters and words " 1st day of January, 1964 ", the figures, letters and words " 1st day of April, 1974 " shall be substituted with effect from the 1st day of April, 1987. 11. Amendment of section 54.--In section 54 of the Income-tax Act, with effect from the 1st day of April, 1987,-- (a) in sub-section (1), for the words " one year before or after the date on which the transfer took place purchased ", the words "one year before or two years after the date on which the transfer took place purchased" shall be substituted ; (b) in sub-section (2), for the words " one year before or after the date of receipt of the additional compensation purchased ", the words "one y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of section 74.--In section 74 of the Income-tax Act, in sub-section (1), in the proviso to clause (a), for the words " five thousand rupees ", the words " ten thousand rupees " shall be substituted with effect from the 1st day of April, 1987. 16. Amendment of section 74A.--In section 74A of the Income-tax Act, with effect from the 1st day of April, 1987,-- (a) sub-sections (1) and (2) shall be omitted ; (b) in sub-section (3),-- (i) in the opening portion,-- (A) the words " Where for any assessment year, " shall be omitted ; (B) for the portion beginning with the words " the net result of the computation " and ending with the words " owning and maintaining race horses ", the following shall be substituted, namely :-- "the amount of loss incurred by the assessee in the activity of owning and maintaining race horses in any assessment year shall not be set off against income, if any, from any source other than the activity of owning and maintaining race horses in that year and" ; (ii) in clause (a), for the words, brackets, letter and figure " from the source specified in clause (c) of sub-section (2) ", the words " from the activity of owning and maintaining race ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company " means any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) ; (b) sub-section (2) shall be omitted. 21. Substitution of new section for section 80M.--For section 80M of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 1987, namely :-- " 80M. Deduction in respect of certain inter-corporate dividends.--Where the gross total income of an assessee, being a domestic company, includes any income by way of dividends from a domestic company, there shall be allowed, in computing the total income of the assessee, a deduction from such income by way of dividends of an amount equal to sixty per cent. of such income. ". 22. Omission of section 80S.--Section 80S of the Income-tax Act shall be omitted with effect from the 1st day of April, 1987. 23. Amendment of section 80T.--In section 80T of the Income-tax Act, with effect from the 1st day of April, 1987,-- (i) for the words " five thousand rupees ", wherever they occur, the words " ten thousand rupees " shall be substituted ; (ii) in clause (b), for the port ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal income been reduced by the amount of income referred to in clause (i). Explanation.--For the purposes of this section, " horse race " shall have the same meaning as in section 74A.'. 27. Insertion of new section 133B.--In the Income-tax Act, after section 133A, the following section shall be inserted, namely :-- '133B. Power to collect certain information.--(1) Notwithstanding anything contained in any other provision of this Act, an income-tax authority may, for the purpose of collecting any information which may be useful for, or relevant to, the purposes of this Act, enter-- (a) any building or place within the limits, of the area assigned to such authority, or (b) any building or place occupied by any person in respect of whom he exercises jurisdiction, at which a business or profession is carried on, whether such place be principal place or not of such business or profession, and require any proprietor, employee or any other person who may at that time and place be attending in any manner to, or helping in, the carrying on of such business or profession to furnish such information as may be prescribed. (2) An income-tax authority may enter any place of busine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94BB.--In section 194BB of the Income-tax Act, for the words " two thousand five hundred rupees ", the words " five thousand rupees " shall be substituted with effect from the 1st day of June, 1986. 32. Amendment of section 204.--In section 204 of the Income-tax Act, with effect from the 1st day of June, 1986,-- (a) after clause (ii), the following clause shall be inserted, namely :-- "(iia) in the case of any sum payable to a non-resident Indian, being any sum representing consideration for the transfer by him of any foreign exchange asset, which is not a short-term capital asset, the authorised dealer responsible for remitting such sum to the non-resident Indian or for crediting such sum to his Non-resident (External) Account maintained in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made thereunder ; " ; (b) the following Explanation shall be added at the end, namely :-- 'Explanation.--For the purposes of this section,-- (a) " non-resident Indian " and " foreign exchange asset " shall have the meanings assigned to them in Chapter XII-A ; (b) " authorised dealer " shall have the meaning assigned to it in clause (b) of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or transfer ; (B) in a case where the consideration for the transfer consists of rent only, the aggregate of the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the agreement for transfer ; (C) in a case where the consideration for the transfer consists of premium and rent, the aggregate of the amount of the premium, the moneys (if any) payable by way of rent and the amounts for the service or things forming part of or constituting the rent, as specified in the agreement for transfer ; and where the whole or any part of the consideration for such transfer is payable on any date or dates falling after the date of such agreement for transfer, the value of the consideration payable after such date shall be deemed to be the discounted value of such consideration, as on the date of such agreement for transfer, determined by adopting such rate of interest as may be prescribed in this behalf ; (2) in relation to any immovable property in respect of which an agreement for transfer is made, being immovable property of the nature referred to in sub-clause (ii) of clause (d), means,-- (i) in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration payable on account of the vesting of that property in the Central Government under this Chapter ; (f) " transfer, "-- (i) in relation to any immovable property referred to in sub-clause (i) of clause (d), means transfer of such property by way of sale or exchange or lease for a term of not less than twelve years, and includes allowing the possession of such property to be taken or retained in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882). Explanation.--For the purposes of this sub-clause, a lease which provides for the extension of the term thereof by a further term or terms shall be deemed to be a lease for a term of not less than twelve years, if the aggregate of the term for which such lease is to be granted and the further term or terms for which it can be so extended is not less than twelve years ; (ii) in relation to any immovable property of the nature referred to in sub-clause (ii) of clause (d), means the doing of anything (whether by way of admitting as a member of or by way of transfer of shares in a co-operative society or company or other association of persons or by way of any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een the person who intends transferring the immovable property (hereinafter referred to as the transferor) and the person to whom it is proposed to be transferred (hereinafter referred to as the transferee) in accordance with the provisions of sub-section (2) at least three months before the intended date of transfer. (2) The agreement referred to in sub-section (1) shall be reduced to writing in the form of a statement by each of the parties to such transfer or by any of the parties to such transfer acting on behalf of himself and on behalf of the other parties. (3) Every statement referred to in sub-section (2) shall,-- (i) be in the prescribed form ; (ii) set forth such particulars as may be prescribed ; and (iii) be verified in the prescribed manner ; and shall be furnished to the appropriate authority in such manner and within such time as may be prescribed, by each of the parties to such transaction or by any of the parties to such transaction acting on behalf of himself and on behalf of the other parties. 269UD. Order by appropriate authority for purchase by Central Government of immovable property.--(1) The appropriate authority, after the receipt of the state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ails to comply with the provisions of sub-section (2), the appropriate authority or other person duly authorised by it under that sub-section may take possession of the immovable property and may, for that purpose, use such force as may be necessary. (4) Notwithstanding anything contained in sub-section (2), the appropriate authority may, for the purpose of taking possession of any property referred to in sub-section (1), requisition the services of any police officer to assist him and it shall be the duty of such officer to comply with such requisition. (5) For the removal of doubts, it is hereby declared that nothing in this section shall operate to discharge the transferor or any other person (not being the Central Government) from liability in respect of any encumbrances on the property and, notwithstanding anything contained in any other law for the time being in force, such liability may be enforced against the transferor or such other person. (6) Where an order under sub-section (1) of section 269UD is made in respect of an immovable property, being rights of the nature referred to in sub-clause (ii) of clause (d) of section 269UA, such order shall have the effect of-- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n lieu of the payment of the amount of consideration, set off the amount of consideration or any part thereof against such liability or sum, after giving an intimation in this behalf to the person entitled to the consideration. (2) Notwithstanding anything contained in sub-section (1), if any dispute arises as to the apportionment of the amount of consideration amongst persons claiming to be entitled thereto, the Central Government shall deposit with the appropriate authority the amount of consideration required to be tendered under sub-section (1) within the period specified therein. (3) Notwithstanding anything contained in sub-section (1), if the person entitled to the amount of consideration does not consent to receive it, or if there is any dispute as to the title to receive the amount of consideration, the Central Government shall deposit with the appropriate authority the amount of consideration required to be tendered under sub-section (1) within the period specified therein : Provided that nothing herein contained shall affect the liability of any person who may receive the whole or any part of the amount of consideration for any immovable property vested in the Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the property at the time of its vesting in the Central Government under section 269UE. 269UI. Powers of the appropriate authority.--The appropriate authority shall have, for the purposes of this Chapter, all the powers that a Commissioner of Income-tax has for the purposes of this Act under section 131. 269UJ. Rectification of mistakes.--With a view to rectifying any mistake apparent from the record, the appropriate authority may amend any order made by it under this Chapter, either on its own motion or on the mistake being brought to its notice by any person affected by the order : Provided that if any such amendment is likely to affect any person prejudicially, it shall not be made without giving to such person a reasonable opportunity of being heard : Provided further that no amendment shall be made under this section after the expiry of six months from the end of the month in which the order sought to be amended was made. 269UK. Restrictions on revocation or alteration of certain agreements for the transfer of immovable property or on transfer of certain immovable property.--(1) Notwithstanding anything contained in any other law for the time being in force, no pers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (1) or, as the case may be, sub-section (2) and deliver copies thereof to the transferor and the transferee. 269UM. Immunity to transferor against claims of transferee for transfer.-- Notwithstanding anything contained in any other law or in any instrument or any agreement for the time being in force, when an order for the purchase of any immovable property by the Central Government is made under this Chapter, no claim by the transferee shall lie against the transferor by reason of such transfer being not in accordance with the agreement for the transfer of the immovable property entered into between the transferor and the transferee : Provided that nothing contained in this section shall apply if the order for the purchase of the immovable property by the Central Government is abrogated under sub-section (1) of section 269UH. 269UN. Order of appropriate authority to be final and conclusive.-- Save a otherwise provided in this Chapter, any order made under sub-section (1) of section 269UD or any order made under sub-section (2) of section 269UF shall be final and conclusive and shall not be called in question in any proceeding under this Act or under any other l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gures and letter " or section 80K " shall be omitted ; (ii) the words, figures and letter " or section 80S " shall be omitted ; (iii) the words, figures and letters " or section 80TT " shall be omitted ; (b) in section 80VVA, in sub-section (2),-- (i) in clause (xiiia) shall be renumbered as clause (xiiib), and before clause (xiiib) as so renumbered, the following clause shall be inserted, namely :-- " (xiiia) section 32AB ; " ; (ii) clause (xxiv) shall be omitted ; (c) in section 197,-- (i) in sub-section (1), in clause (a), the figures and letters ", 194B, 194BB " shall be omitted ; (ii) sub-section (3) shall be omitted. (d) in the Eleventh Schedule, after the words, figures and letter " See section 32A, ", the word, figures and letters " section 32AB " shall be inserted. Wealth-tax 40. Amendment of Act 27 of 1957.--In section 5 of the Wealth-tax Act, 1957,-- (a) in sub-section (1),-- (i) after clause (xvid), the following clause shall be inserted, namely :-- ' (xvie) in the case of an individual or a Hindu undivided family, such debentures issued by a public sector company, as the Central Government may, by notification in the Official Gazette, spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year commencing on and from the 1st day of April, 1987, gift-tax in respect of the gifts, if any, made by a person during the previous year, at the rate of thirty per cent. on the value of all taxable gifts.". 42. Amendment of section 5.--In section 5 of the Gift-tax Act, with effect from the 1st day of April, 1987,-- (a) in sub-section (1), clause (iiia), (vi), (viii), (ix), (xiv) and (xvi) shall be omitted ; (b) in sub-section (1A), the words, brackets and figures " or clause (vi) " shall be omitted ; (c) in sub-section (2), for the words " five thousand ", the words " twenty thousand " shall be substituted ; (d) sub-section 3 shall be omitted. 43. Omission of section 6A.--Section 6A of the Gift-tax Act shall be omitted with effect from the 1st day of April, 1987. 44. Amendment of section 18.--In section 18 of the Gift-tax Act, with effect from the 1st day of April, 1987,-- (a) in the opening portion, for the words, figure and letter " or, in a case where the provisions of section 6A are applicable to a gift, in the manner specified in that section ", the words, brackets and figures " or at the rate specified in sub-section (2) of section 3 " shall be substitute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly 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, 1986, exceeds Rs. 18,000,--- Rates of income-tax (1) where the total income Nil does not exceed Rs. 12,000 (2) where the total income 25 per cent. of the amount by exceeds Rs. 12,000 but does not which the total income exceeds exceed Rs. 20,000 Rs. 12,000 (3) where the total income Rs. 2,000 plus 30 per cent. of the exceeds Rs. 20,000 but does not amount by which the total exceed Rs. 40,000 income exceeds Rs. 20,000 (4) where the total income Rs. 8,000 plus 40 per cent. of the exceeds Rs. 40,000 but does not amount by which the total exceed Rs. 60,000 income exceeds Rs. 40,000 Paragraph B In the case of every co-operative society,----- Rates of income-tax (1) where the total income 15 per cent. of the total income; does not exceed Rs. 10,000 (2) where the total income Rs. 1,500 plus 25 per cent. of the exceeds Rs. 10,000 but does not amount by which the total exceed Rs. 20,000 income exceeds Rs. 10,000 (3) where the total income Rs. 4,000 plus 40 per cent. of the exceeds Rs. 20,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rate of income-tax On the whole of the total income 50 per cent. Paragraph E In the case of a company,----- Rates of income-tax I. In the case of a domestic company,---- (1) where the company is a company 50 per cent. of the total income; in which the public are substantially interested (2) where the company is not a company in which the public are substantially interested----- (i) in the case of a trading 60 per cent. of the total income; company or an investment company (ii) in any other case 55 per cent. of the total income. II. In the case of a company other than a domestic company,----- (i) on so much of the total income as consists of---- (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961, but before the 1st day of April, 1976, or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964, but before the 1st day of April, 1976, and where such agreement 50 per cent.; has, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayable amount of the income, on a tax-free security) or 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 15 per cent.; of 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.; interest other than " Interest on securities " (ii) on any other income 21.5 per cent.; (excluding interest payable on tax-free security) (b) where the company is not a domestic company--- (i) on income by way of dividends 25 per cent.; payable by any domestic company (ii) on income by way of interest 25 per cent.; payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (iii) on income by way of 30 per cent.; royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976, where such royalty is in consideration for the tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase may be, " advance tax " [not being " advance tax " in respect of any income chargeable to tax under Chapter XII or Chapter XII-A or sub-section (1A) of section 161 or section 164 or section 164A or section 167A of the Income-tax Act at the rates as specified in that Chapter or section), shall be so calculated, charged, deducted or computed at the following rate or rates:--- Paragraph A Sub-Paragraph I In the case of every individual or Hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which Sub-Paragraph II of this Paragraph or any other Paragraph of this Part applies,---- Rates of income-tax (1) Where the total income Nil; does not exceed Rs. 18,000 (2) Where the total income 25 per cent. of the amount by exceeds Rs. 18,000 but does not which the total income exceeds exceed Rs. 25,000 Rs. 18,000; (3) Where the total income Rs. 1,750 plus 30 per cent. of the exceeds Rs. 25,000 but does not amount by which the total income exceed Rs. 50,000 exceeds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eds Rs. 25,000 but does not amount by which the total income exceed Rs. 50,000 exceeds 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 income exceed Rs. 1,00,000 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. 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 income exceed Rs. 50,000 exceeds Rs. 25,000; (4) Where the total income Rs. 2,350 plus 13 per cent. of the exceeds Rs. 50,000 but does not amount by which the total income exceed Rs. 1,00,000 exceeds Rs. 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1) of section 2 of the Income-tax Act [other than income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head " Profits and gains of business or profession " and the provisions of sections 30, 31, 32, 34, 36, 37, 38, 40, 40A [other than sub-sections (3) and (4) thereof ], 41, 43 and 43A of the Income-tax Act shall, so far as may be, apply accordingly. Rule 3.---Agricultural income of the nature referred to in sub-clause (c) of clause (1) of section 2 of the Income-tax Act, being income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head " Income from house property " and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly: Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. Rule 7.---Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income: Provided that where the assessee is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of section 183 of the Income-tax Act or is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the firm, association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income. Rule 8.---Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income. Rule 9.---(1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1986, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous year relevant to the assessment year commencing on the 1st day of April, 1983, or the 1st day of April, 1984, or the 1st day of April, 1985, (vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1983, 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, 1984, or the 1st day of April, 1985, (vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1984, 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, 1985, and (viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1985, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1986. (2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st day of April, 1984, or the 1st day of April, 1985, or the 1st day of April, 1986, (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1983, 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, 1984, or the 1st day of April, 1985, or the 1st day of April, 1986, (vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1984, 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, 1985, or the 1st day of April, 1986, (vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1985, 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, 1986, and (viii) the loss so computed for the previous year relevant to the assessment year commencing on th ..... 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