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FINANCE (NO. 2) ACT, 1980
44 of 1980
21st August 1980
An Act to give effect to the financial proposals of the Central Government for the financial year 1980-81 Be it enacted by Parliament in the Thirty-first year of the Republic of India as follows :-
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The Finance (No. 2) Act. 1980.
(2) Save as otherwise provided in this Act.Sections 2-to43-and Ss.52-and53-shall be deemed to have come into force on the 1st day of April, 1980.
SECTION 02: INCOME TAX
(1) Subject to the provisions of sub-sections (2) and (3). for the assessment year commencing on the 1st day of April. 1980, income-tax shall be charged at the rates specified in Part I of the First Schedule and shall be increased.-
(a) in the cases to which Paragraphs A, B, C and d of that part apply, by a surcharge for 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, in addition to total income, and the total income exceeds ten 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 the first eight thousand rupees of the total income but without being liable to tax), only for the purposes of charging income-tax in respect of the total income; and
(b) the income-tax chargeable shall be calculated as follows :-~
(i) the total income and the net aggricultural income shall be aggregated and the amount of income-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 it such aggregate income were the total income: Provided that for the purposes of determining the amount of income-tax in accordance with this sub-clause, the provisions of Cl. (ii) of the proviso below sub -paragraph 1 or, as the case may be. sub-paragraph II of the said paragraph A and the provisions relating io surcharge or income-tax in the said sub -paragraphs shall not apply; (ii) the net agricultural income shall be increased by a sum of eight thousand rupees and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in sub-paragraph I or, as the case may be, sub -paragraph II of lhc said paragraph A, as if the net agricultural income as so increased were the total income : Provided that for the purposes ot determining the amount of income-tax in accordance with this sub-clause, the provisions of Clause (i) and Clause (ii) of the proviso below sub-paragraph I or as lhc case may be, sub-paragraph II of the said paragraph A and provisions relating to surcharge on incometax in the said sub -paragraphs shall not apply.
(iii) the amount of income-tax determined in accordance with sub-cl, (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii): Provided that where the sum so arrived at exceeds sixty per cent. of the amount by which the total
income exceeds ten thousand rupees, the excess shall be disregarded; (iv) the amount of income-tax determined in accordance with sub-clause (iii) shall be increased by a surcharge for purposes of the Union calculated at the rate of twenty per cent. of such income-tax and the sum so arrived at shall be the income-lax in respect of the total income.
(3) In cases to which the provisions of Chapter XII ofSection 164 of lhe Income-tax Act, 1961 (43 of 1961)- (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 lhc rates imposed by sub -sec. (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 underSections 193-,194-,194A-,194B-,194BB -,194D-and195 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 tlic provisions of sub-section (6). in cases in which income-tax has to be calculated under the first proviso to sub -section (5) ofSection 132 of the income-lax Act-or charged under sub-section (4) ofSection 172-or subsection (2) ofSection 174 -orsection 175-or sub-section (2) ofSection 176 -of the said Act or deducted underSec. 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 tlic said sub-section (9) or in which the "advance tax' payable under Chapter XVII-C of the said Act has to be connoted, 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 orsection 164 of the Income- tax Actapply, "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. (6) In the cases to which sub-paragraph I or sub-paragraph II of paragraph A of Part III of the First Schedule applies,
where the assessee has in the previous year or if by virtue of any provision of the Income-lax Act income-tax is to be charged in respect of the income of a period other than the previous year in such period, any net agricultural income exceeding six hundred rupees, in addition to total income and the total income exceeds twelve thousand rupees, then, in calculating income-tax under the first proviso to sub-section (5) ofSection 132 of the income-tax Act-or in charging income-tax under sub-section (2) ofSection 174-orSection 175-or sub-section (2) ofSection 176-of the said Act or in computing the "advance tax" payable under Chapter XVII-C of the said Act. at the rate or rates in force. - (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 the first eight thousand rupees of the total income but without being liable to tax), only for the purposes 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-lax 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 for the purposes of determining the amount of income-tax or "advance tax" in accordance with this sub-clause, the provisions of Cl. (ii) of the proviso below sub-paragraph I or. as the
case may be. sub-para. II of the said paragraph A and the provisions relating to surcharge on income-tax in the said sub-paragraphs shall not apply:
(ii) the net agricultural income shall be increased by a sum of eight thousand rupees and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in sub-paragraph I or, as the case may be. sub-paragraph II of the said Paragraph A. as if the net agricultural income as so increased were the total income : Provided that for the purposes of determining the amount of income-tax or "advance tax" in accordance with this sub-clause, the provisions of Cl. (i) and Clause (ii) of the proviso below sub -para. I or, as the case may be sub-paragraph II of the said Paragraph A and the provisions relating to surcharge on income- tax in the said sub-paragraphs shall not apply: (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): Provided that where the sum so arrived at exceeds sixty per cent. of the amount by which the total income exceeds twelve thousand rupees, the excess sliall be disregarded; (iv) the amount of income-tax or "advance tax" determined in accordance with sub- clause (iii). shall be increased by a surcharge for purposes of the Union calculated t the rate of ten per cent. of such income-tax or. as the case may be, "advance tax" 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 inSection 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. 1980, 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 ofSec. 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 or in the construction of ships or in the manufacture or processing of goods or in mining. Explanation.-- For the purposes of this clause, 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 in the construction of ships 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 (as computed before making any deduction under Chapter VIA of the Income-tax Act) is not less than fifty-one per cent. of such total income,
(d) "insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance):
(e) "net agricultural income", in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in pan IV of the First Schedule, (f) "tax-free security" means any security of the Central Government issued or declared to be income-tax free or any security of a State Government issued income-tax free, the income-tax whereon is payable by the State Government: (g) all other words and expressions used in this section or in the First Schedule but not defined in this sub -section and defined in the Income-tax Act shall have the meanings respectively assigned to them in that Act.
SECTION 03: 3--35 3
Of this Act amended Ss.2-,10-,32-,35-,35B-,37-,41-,80C-,80FF-,80G-,80J-,80JJ-,80L-,80RR-,80T- 80TT-,8OU-,143-,155-,171-,208-,209A-,212-,215-,273- and Sch. IV of I.T. Act, Ss. 80AA. 80AB and 801 were inserted in the I.-T Act by this Act. S. 35 dealt with some consequential amendments in the I.- T Act. All these have been incorporated in the principal Act and hence not printed here.
SECTION 36: 36 - 41
Amendments incorporated inthe Wealth-tax Act. 1957 (27 of 1957)
SECTION 42: AMENDMENT OF ACT 18 OF 1958
(Incorporated in the Principal Act. Hence not printed].
SECTION 43: AMENDMENT OF ACT 45 OF 1974
(1) Amendments isS. 2 of the Income-tax Act.-1974 (45 of 1974) 'have been incorporated in the Act.
(2) inSection 6-, in sub-section (2). for the words, figures and letters "after the 28th day of February, 1978",the words, figures and letters, "during the period commencing on the 1st day of March, 1978 and ending with the 30th day of June, 1980" shall be submitted with effect from the 1st day of Sept., 1980.
SECTION 44: SAVING IN CERTAIN CASES
Where before the 18th day of June, 1980 (being the date on which the Finance (N0.2) Bill, 1980 was introduced), the Supreme Court has, on an appeal or a reference in respect of the assessment of an asscssee for any particular assessment year. held that the deduction underSection 80-M-is to be allowed in a manner different from that provided inSec. 80AA of the Income-tax Act-, as inserted by section 12 of this Act, then nothing contained in the saidSection 80AA-shall apply to the assessment of such asscssee for that particular assessment year.
SECTION 45: AMENDMENT OF ACT 51 OF 1975.
[Amendments incorporated in the Customs Tariff Act, 1975].
SECTION 46: AMENDMENTS INCORPORATED IN THE CENTRAL EXCISES AND SALT ACT, 1944.
SECTION 47: AMENDMENT OF ACT 13 OF 1980
[Incorporated]
SECTION 48: AMENDMENT OF ACT 58 OF 1957
TheAdditional Duties of Excise (Goods of Special Importance) Act. 1957(hereinafter referred to as the Additional Duties of Excise Act), shall be amended in the manner specified in the Fourth Schedule.
SECTION 49: AMENDMENT OF ACT 25 OF 1978
In the Customs. Central Excises and Salt and Central Boards of Revenue (Amendment) Act. 1978, in new Section 11-B, as directed by Section 21 of that Act to be inserted in the Central Excises Act.-
(a) in sub-section ( 1 ).--
(i) for the words "from the date of payment of duty" occurring in the opening portion. the words "from the relevant dale" shall be substituted:
(ii) the Explanation shall be omitted:
(b) for the Explanation at the end the following Explanation shall be substituted. namely:-
'Explanation.- For the purposes of this section.-
(A) "refund" includes rebate of duty of excise on excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India;
(B) "relevant date" means.--
(a) in the case of goods exported out of India where a refund of excise duty paid is available in respect of the goods themselves or, as the case may be, the excisable materials used in the manufacture of such goods.-
(i) if the goods are exported by sea or air, the date on which the ship or the aircraft in which such goods arc loaded, leaves India, or
(ii) if the goods are exported by land, the date on which such goods pass the frontier, or
(iii) if the goods are exponed by post. the date of despatch of goods by the Post Office concened to a place outside India,
(b) in the case of goods returned for being remade. refined reconditioned, or subjected to any other similar process, in any factory, the date of entry into the factory for the purposes aforesaid:
(c) in the case of goods to which banderols are required to be affixed if removed for home consumption but not so required when exported outside India, if returned to a factory after having been removed from such factory for export out of India, the date of entry into the factory;
(d) in a case where a manufacturer is required to pay a sum, for a certain period, on the basis of the rate fixed by the Central Government by notification in the Official Gazette in full discharge of his liability for the duty leviable on his production of certain goods, if after the manufacturer has made the payment on the basis of such rate for any period but before the expiry of that period such rate is reduced, the date of such reduction;
(e) in a case where duty of excise is paid provisionally under this Act or the rules made thereunder, the date of adjustment of duty after the final assessment thereof:
(f)) in any other case. the date of payment of duly.
SECTION 50: AMENDMENT ACT 52 OF 1962 ETC. TO PROVIDE FOR AN APPELLATE TRIBUNAL
(1) The amendments directed in the fifth Schedule being amendments to provide for an Appellate Tribunal under theCustoms Act, 1962-, the Central Excises Act and the Gold (Control) Act. 1968 (45 of 1968) and for matters connected therewith, made in the said Acts.
(2) The amendments directed to be made by sub-section (1) shall come into force on such date as the Central Government may by notification in the Official Gazette, appoint: and different dates may be appointed for the amendments to different Acts.
(3) If any difficulty arises in giving effect to the provisions of any Act referred to in sub- section
(1), as amended by the amendments thereto directed in the Fifth Schedule (particularly in relation to the transition to the provisions of that Act as so amended), the Central Government may, by general or special order, do anything not inconsistent with such provisions as so amended which appears to be necessary or expedient for the purposes of removing the difficulty: Provided that no such order shall be made after the expiry- of two years from the date on which such amendments came into force.
SECTION 51: AMENDMENT OF ACT 6 OF 1898.
[Incorporated in the principal Act,]
SECTION 52: AMENDMENT OF ACT 32 OF 1971
[Incorporated in principal Act]
SECTION 53: AMENDMENT OF ACT 38 OF 1974
[Incorporated in principal Act]
SECTION 54: REPEAL
Section 2 of the Finance Act. 1980-(13 of 1980), is hereby repealed and shall be deemed never to have been enacted. [Incorporated in principal Act]
SCHEDULE 1: 1
(Seesection 2-)PART 1 INCOME-TAX AND SURCHARGE ON INCOME-TAX Paragraph A Sub-Paragraph 1 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 cl. (31) ofsection 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 does not exceed Nil: Rs. 8,000 (2) where the total income exceeds Rs. 8,000 15 per cent. of the amount by which the total income but does not exceed Rs. 15,000 exceeds Rs. 8,000; (3) where the total income exceeds Rs. 15.000 Rs. 1,050 plus 18 per cent. of the amount by but does not exceed Rs. 20,000 which the total income exceeds Rupees 15,000; (4) where the total income exceeds Rs. 20,000 Rs. 1.950 plus 25 per cent. of the amount by but does not exceed Rs. 25,000 which the total income exceeds Rupees 20,000; (5) where the total income exceeds Rs. 25,000 Rs. 3,200 plus 30 per cent. of the amount by but does not exceed Rs. 30,000 which the total income exceeds Rupees 25,000; (6) where the total income exceeds Rs. 30,000 Rs. 4.700 plus 40 per cent. of the amount by but does not exceed Rs. 50,000 which the total income exceeds Rupees 30,000; (7) where the total income exceeds Rs. 50.000 Rs. 12,700 plus 50 per cent. of the amount by hut does not exceed Rs. 70,000 which the total income exceeds Rupees 50,000; (8) where the total income exceeds Rs. 70,000 Rs. 22.700 plus 55 per cent. of the amount by but does not exceed Rs. 1.00,000 which the total income exceeds Rupees 70,000; (9) where the total income exceeds Rs. 1,00,000 Rs. 39,200 plus 60 per cent. of the amount by which the total income exceeds Rupees 1,00,000. Provided that for the purposes of the Sub-Paragraph, --- (i) no income-tax shall be payable on a total income not exceeding Rs. 10,000: (ii) where the total income exceeds Rs. 10,000 but does not exceed Rs. 12,000, the income-tax payable thereon shall not exceed thirty per cent. of the amount hy which the total income exceeds Rs. 10,000. 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 twenty 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, 1980 exceeds Rs. 10.000,- Rates of income-tax (1) where the total income does not exceed Nil: Rs. 8,000 (2) where the total income exceeds Rs. 8,000 18 per cent. of the amount by which the total income but does not exceed Rs. 15,000 exceeds Rs. 8,000; (3) where the total income exceeds Rs. 15,000 Rs. 1,260 plus 20 per cent. of the amount by but does not exceed Rs. 20.000 which the total income exceeds Rupees 15.000: (4) where the total income exceeds Rs. 20.000 Rs. 2,510 plus 30 per cent. of the amount by but does not exceed Rs. 25,000 which the total income exceeds Rupees 20,000; (5) where the total income exceeds Rs. 25,000 Rs. 4.010 plus 40 per cent. of the amount by but does not exceed Rs. 30,000 which the total income exceeds Rupees 25.000; (6) where the total income exceeds Rs. 30,000 Rs. 6.010 plus 50 per cent. of the amount by but does not exceed Rs. 50,000 which the total income exceeds Rupees 30.000; (7) where the total income exceeds Rs. 50.000 Rs. 16,010 plus 55 [per cent. of the amount by but does not exceed Rs. 70.000 which the total income exceeds Rupees 50,000; (8) where the total income exceeds Rs. 70,000 Rs. 27.010 plus 60 pel cent. of the amount by which the total income exceeds Rupees 70,000 Provided that for the purposes of the Sub-Paragraph.- - - (i) no income-tax shall he payable on a total income nut exceeding Rs- 10.000; (ii) where the total income exceeds Rs. 10,000 but does not exceed Rs. 13.000. the income-tax payable thereon shall not exceed thirty per cent. of the amount by which the total income exceeds Rs. 10,000. 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 twenty per cent. of such income-tax. Paragraph B In the case of every co-operative society. -- Rates of income-tax (1) where the total income exceeds 15 per cent. of the total income: Rs. 10.000 (2) where the total income exceeds Rs. 10.000 Rs. 1,500 plus 25 per cent of the amount by but does not exceed Rs. 20.000 which the total income exceeds Rupees 10,000; (3) where the total income exceeds Rs. 20,000 Rs. 4,001) plus 40 per cent of the amount by which the total income exceeds Rs. 20,000. Surcharge in income-tax The amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of twenty per cent. of such income-tax Paragraph C Sub-Paragraph 1 In the case of every registered firm not being a case to which Sub-paragraph. II of this paragraph applies.--- Rates of income-tax (1) where the total income does not exceed Nil; Rs. 10.000 (2) where the total income exceeds Rs. 10,000 5 per cent. of the amount by which the total income but does not exceed Rs. 25.000 exceeds Rs. 10.000. (3) where the total income exceeds Rs. 25,000 Rs. 750 plus 7 per cent. of the amount hy but does not exceed Rs. 50,000 which the total income exceeds Rupees 25,000; (4) where the total income exceeds Rs. 50,000 Rs. 2,500 plus 15 per cent. of the amount by but does not exceed Rs. 1,00.000 , which the total income exceeds Rupees 50,000; (5) where the total income exceeds Rs. 1,00,000 Rs. 10,000 plus 24 per cent. of the amount hy which the total income exceeds Rupees 1.00,000; Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall he increased hy a surcharge for purposes of the Union calculated at the rate of twenty 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. - - - Rutes of income-tax (1) where the total income does not exceed Nil. Rs. 10,000 (2) where the total income exceeds Rs. 10,000 4 per cent. of the amount by which the total income but does not exceed Rs. 25.000 exceeds Rs. 10.000: (3) where the total income exceeds Rs. 25,000 Rs. 6OO plus 7 per cent. of the amount by but does not exceed Rs. 50.000 which the total income exceeds Rupees 25,000: (4) where the total income exceeds Rs. 50,000 Rs. 2,350 plus 13 per cent. of the amount by but does not exceed Rs. 1.00,000 which the total income exceeds Rupees 50.000: (5) where the total income exceeds Rs. 1,00,000 Rs. 8,850 plus 22 per cent. of the amount by which the total income exceeds Rupees 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 twenty per cent. of such income-tax. Explanation -For the purposes of this paragraph "registered firm" includes an unregistered firm assessed as a registered firm under Clause (b) ofSection 183 of the income-lax Act-. Paragraph D In the case of every total authority.-- Rate of income income-tax On the whole of the total income 50 per cent. Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall he increased by a surcharge for purposes of the Union calculated at the rate of twenty per cent. of such income-tax. Paragraph E In the case of a company,- Rates of income-tax 1. In the case of a domestic company,- (1) where the company is a company in which the public are substantially interested,-- (i) in a case where the total income 45 per cent. of the tolal income, does not exceed Rupees 1,00,000 (ii)in a case where the total income 55 per cent. of the total income: exceeds Rs. 1,00,000 (2) where the company is not a company in which the public are substantially interested, (i) in the case of an industrial company,- - - (a) where the total income does 55 per cent. of the total income: not exceed Rupees 2,00,000 (b) where the total income 60 per cent. of the total income; exceeds Rs. 2,00,000 (ii) in any other case 65 per cent of the total income. Provided that- (i) the income-tax payable by a domestic company. being a company in which the public are substantially interested the total income of which exceeds Rs.1,00,000 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. 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) the income-tax payable by a domestic company, not heing 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 hy the company if its total income had been Rs. 2,00,000 (the income of Rs, 2,00,000 for this purpose heing computed as if such income included income Irom various sources in the same proportion as the total income of the company): and (b) eighty percent, of the amount by which its total income exceeds Rs. 2,00,000 2. 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 Irom an Indian concern in pursuance of an agreement made by it with the Indian concern after the 29th day of February, 1964 but before the 1st day of of April, 1976; and where such agreement has in 50 per cent: either case. been approved by the Central Government (ii) on the balance, if any of the 70 per cent. total income Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of paragraph shall be increased by a surcharge calculated at the rate of seven and a half per cent. of such income-tax. PART 2 Rates of deduction of tax at source in certain cases In every case in which under the provisions ofsections 193-,194-,194A-,194B-,194BB-,194D-and195 of the Income-tax Act-, tax is to he deducted at the rates in force, deduction shall be made from the income subject to deduction at the following rates :- ------------------------------------------------------------------------------------------------ Income-tax ------------------------------------------ Rate of Rate of. income-tax surcharge ------------------------------------------------------------------------------------------------ 1. In the case of a person other than a company - - - (a) where the person is rcsident in India - - - (i) on income by way of interest 10 per cent Nil: other than "Interest on securities" (ii) on income by way of winnigs 30 per cent. 3 per cent; from lotteries and crossing puzzlexs (iii)on income by way of winnings, . 30 per cent. 3 per cent.; from horse races (iv) on income by way of insurance 10 per cent. Nil: commission (v) on income by way of interest 10 per cent. Nil: payable on (a) any security. other than a tax-free security. of the Central or a State Government. (b) any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a central State or Provincial Act. (c) any debentures issued by a company where such debentures are listed in a recognised stock exchange in India in accordance with the Securities Cont- racts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder (vi) on any other income (excluding) 21 per cent. 2 per cernt, interest payable on a tax-f'ree security) (b) where the person is not resident in India (i) on the whole income (excluding income-tax at 30 per cent. and surcharge at 3 interest payable on tax-free security 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)on income by way of interest 15 per cent. 1.5 per cent. 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 interest 20 per cent.- 1.5 per cent. other than "Interest on securities" (ii) on any other income (excluding 21.5 per cent. 1.5 per cent. interest payable on a tax free security) (b) where the company is not a domestic company- (i) on income by way of dividends 25 per cent. Nil, payable by any domestic company (ii) on income by way of royalty 40 per cent. Nil; payable by an Indian concern in pursuance; of an agreement made by it with the Indian concern after the 31st day of March. 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respact of copyright in any book on a subject referred to in the proviso to sub-section (IA) of Section 115A of the Income-tax Act. to the Indian concern (iii) on income hy way of royalty (not being royalty of the nature referred ., to in sub-item (b) (ii) payable by an , Indian concern in pursuance of an agreement made by it with the Indian . concern and which has been approved by the Central Government- - (A) Where- the agreement is made after 50 per cent. 1.75 per cent.. the 31st day of March. 1961 but before the 1st day of April. 1976 (B) where the agreement is made after the 31st day of March, 1976- (1) on so much of the amount of 20 per cent. Nil: such income as consists of lump sum consideration for the transfer outside India of. or the imparting of information outside India in respect of any dale. documen- tation. drawing or specification relating to any patent, invention model, design, secret formula or process, or trade mark or similar property (2) on the balance, if any of 40 per cent. Nil; such income (iv) on income by way of fees for technical services payable by an Indian concern in pursuance of an agreement made by it with the Indian concern and which has been approved by the Central Government :- (A) where the agreement is made 50 per cent 3.75 per cent. after the 29th day of February. 1964 hut before the 1st day of April. 1976 (B) where the agreement is made 40 per cent Nil; after the 31st day of March. 1976 (v) on income by way of interest 44 per cent 3.3 per cent. payable on a tax free security. (vi) on any other income 70 per cent 5.25 per cent. PART 3 Rates for caculating 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 S. 80E and computing "advance tax". In cases in which income-tax has to he calculated under the first proviso to sub-section (5) ofsection 132 of the income-tax Act-or charged under sub-s. (4) ofsection 172-or sub-section (2) ofsection 174-orsection 175-or sub-section (2) ofsection 176-of the said Act or deducted undersection 192-of the said Act from income chargeable under the head "Salaries" or deducted under sub-sec. (9) ofsection 80E-of the said Act from any payment referred loin the said sub-sec. (9) or in which tile "advance tax" payable under Chapter XVII C of the .said Act has to he computed, at the rate or rates in force such income- tax or as the case may be "advance tax" (not being "advance tax" inrespect of any income chargeable to tax under Chapter XII orsection 164 of the Income-tax Act-at the rates as specified in that Chapter or section). shall he so calculated, charged deducted or computed at the following rate or rates :-- ` Paragraph A Sub- Paragraph 1 In ease of every individual or Hindu undivided family or unregistered firm or other association of persons or body of individual, whether incorporated or not or every artificial juridical person referred to in sub-clause (vii) of cl. (31). ofsection 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 does not exceed Nil: Rs. 8,00 (2) where the total income exceeds Rs. 8,000 15 per cent. of the amount by which the total income but does not exceed Rs. 15,000 exceeds Rs. 8,000 (3) where the total income exceeds Rs. 15.000 Rs. 1.050 plus IX per cent of the amount by but does not exceed Rs. 20.000 which the total income exceeds Rupees 15.000: (4) where the total, income exceeds Rs. 20.000 Rs. 1,950 plus 25 per cent. of the amount by but does not exceed Rs. 25.000 which the total income exceeds Rupees 20.000: (5) where the total income exceeds Rs. 25.000 Rs. 3.200 plus 30 per cent. of the amount by but does not exceed Rs. 30,000 which the total income exceeds Rupees 25.000: (6) where the total income exceeds Rs. 30.000 Rs. 4.700 plus 40 per cent. of the amount by but does not exceed Rs. 50.000 which the total income exceeds Rupees 30.000: (7) where the total income exceeds Rs. 50.000 Rs. 12.700 plus 50 per cent. of the amount by but does not exceed Rs. 70,000 which the total income exceeds Rupees 50.000: (8) where the total income exceeds Rs. 70,000 Rs. 22,700 plus 55 percent of the amount by but does not exceed Rs. 1.00.000 which the total income exceeds Rupees 70.000: (9) where the total income exceeds Rs. 1.00,000 Rs. 39.200 plus 60 per cent. of the amount by which the total income exceeds Rupees 1.00,000. Provided that for the purposes of this Sub-Paragraph.--- (i) no income-tax shall be payable on a total income not exceeding Rs. 12.000: (ii) where the total income exceeds Rs. 12,000 but does not exceed Rs. 16.250 the income-tax payable there-. on shall not exceed thirty per cent. of the amount by which the total income exceeds Rs. 12,000. Surcharge on Income-tax The amount of income-lax 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. 1981 exceeds Rs. 12.000.- Rates of Income-tax (1) where the tolal income does not exceed Nil; Rs. 8.000 (2) where the total income exceeds Rs. 8.000 22 per cent. of the amount by which the total income but does not exceed Rs. 15.000 exceeds Rs. 8.000: (3) where the total income exceeds Rs. 15.000 Rs. 1.540 plus 27 per cent. of the amount by, but does not exceed Rs. 20.000 which the total income exceeds Rupees 15.000: (4) where the total income exceeds Rs. 20.000 Rs. 2.890 plus 35 per cent. of the amount by but does not exceed Rs. 25.000 which the total income exceeds Rupees 20.000: (5) where the tolal incame exceeds Rs. 25.000 Rs. 4.640 plus 40 p,er cent. of the ailiouill hy but does not exceed Rs. 30.000 which the total income exceeds Rupees 25.000; (6) where the total income exceeds Rs. 30.000 Rs. 6.640 plus 50 per cent. of the amount by but does not exceed Rs. 50.000 which the total income exceeds Rupees 30.000 (7) where the total income exceeds Rs. 50.000 Rs. 16.640 plus 60 per cent. of the amount by which the total income exceeds Rs. 50,000. Provided that for the purposes of this sub-Paragraph (i) no income-tax shall be payable on,a total income not exceeding Rs. 12.000: (ii)where lhe total income exceeds Rs. 12.000 but does not exceed.Rs. 17.610. the income-tax payable thereon shall not exceed forty per cent. of the amount by which the total income exceeds Rs. 12,000. 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. Paragraph B In the ease of every co-operative society.-- Rates of Income-tax (1) where the tolal income does not exceed 15 per cent. of the tolal income: Rs. 10,000 (2) where the total income exceeds Rs. 10,000 Rs. 1.500 plus 25 percent, of the amount hy but does not exceed Rs. 20.000 which the total income exceeds Rs. 10,000: (3) where the total income exceeds Rs. 20.000 Rs. 4.000 plus 40 per cent. of the amount by which the total income exceeds Rupees 20,000: Surcharge on Income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall he increased by a surcharge for purposes of the Union calculated at the rate of ten per cent. of such income-tax. Paragraph C Sub-Paragraph I In the case of every registered firm. not being a case to which Sub-Para. II of this paragraph applies,-- Provided that for the purposes of this Sub-Paragraph.--- (i) no income-tax shall be payable on a total income not exceeding Rs. 12.000: (ii) where the total income exceeds Rs. 12.000 but does not exceed Rs. 16.250 the income-tax payable there-. on shall not exceed thirty per cent. of the amount by which the total income exceeds Rs. 12,000. 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. 1981 exceeds Rs. 12.000.- Rates of Income-tax (1) where the total income does not exceed Nil, Rs. 8.000 (2) where the total income exceeds Rs. 8,000 22 per cent. of the amount by which the total income but does not exceed Rs. 15.000 exceeds Rs.8.000: (3) where the total income exceeds Rs. 15.000 Rs. 1,540 plus 27 per cent. of the amount by, but does not exceed Rs. 20.000 which the total income exceeds Rupees 15.000: (4) where the total income exceeds Rs. 20.000 Rs. 2.890 plus 35 per cent. of the amount by but does not exceed Rs. 25,000 which the total income exceeds Rupees 20.000: (5) where the total income exceeds Rs. 25.000 Rs. 4.640 plus 40 per cent. of the amount by but does not exceed Rs. 30,000 which the total income exceeds Rupees 25,000; (6) where the total income exceeds Rs. 30.000 Rs. 6,640 plus 50 per cent. of the amount by but does not exceed Rs. 50.000 which the total income exceeds Rupees 30.000 (7) where the total income exceeds Rs.,50.000 Rs. 16.640 plus 60 per cent. of the amount, by which the total income exceeds Rs. 50,000. Provided that for the purposes of this sub Paragraph.- - (i) no income-tax shall be payable on,a total income not exceeding Rs. 12,000: (ii)where the total income exceeds Rs. 12.000 but does not exceed .Rs. 17.610. the income-tax payable thereon shall not exceed forty per cent. of the amount by which the total income exceeds Rs. 12,000. 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 Unioh calculated at the rate of ten per cent. of such income-tax. Paragraph B In the case of every co-operative society.--- Rates of lncome-tax (1) where the total income does not exceed 15 per cent. of the total income: Rs. 10,000 (2) where the total income exceeds Rs. 10,000 Rs. 1.500 plus 25 percent, of the amount by but does not exceed Rs. 20,000 which the total income exceeds Rs. 10,000: (3) where the total income exceeds Rs. 20.000 Rs. 4.000 plus 40 per cent. of the amount by which the total income exceeds Rupees 20,000: Surcharge on Income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent. of such income-tax. Paragraph C Sub-Paragraph I In the case of every registered firm. not being a case to which Sub-Para. II of this paragraph applies,-- Rates of income-tax (1) where the total income does not exceed Nil Rs. 10,000 (2) where the total income exceeds Rs. 10,000 5 per cent. of the amount by which the total income but does not exceed Rs. 25,000 exaeeds Rs. 10.000: (3) where the total income exceeds Rs. 25,000 Rs. 750 plus 7 per cent. of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rupees 23,000: (4) where the total income exceeds Rs. 50,000 Rs. 2,500 plus 15 per cent. of the amount by. which but does not exceed Rs. 1.00.000 the total income exceeds Rupees 50,000; (5) where the total income exceeds Rs. 1.00,000 Rs. 10,000 plus 24 per cent. of the amount by which the total income exceeds Rupees 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, - . Rutes of Income-tax (1) where the total income does not exceed Nil; Rs. 10,000 (2) where the total income exceeds Rs. 10.000 4 per cent of the amount by which the total income but does not exceed Rs. 25,000 exceeds Rs. 10.000; (3) where the total income exceeds Rs. 25,000 Rs. 600 plus 7 per cent. of the amount by but does not exceed Rs. 50.000 which the total income exceeds .Rupees 25.000; (4) where the total income exceeds Rs..50.000 Rs. 2,350 plus.13 per cent of the amount by but does not, exceed Rs. 1,00,000 which the total income exceeds Rupees 50.000; (5) where the total income exceeds Rs. 1,00,000 Rs. 8,850 plus 22 per cent of the amount by which the total income exceeds Rupees 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. Explanation -For the purposes of this Paragraph "registered firm" includes an unregistered firm assessed as a registered firm under Clause (b) ofSection 183 of the income-tax Act-. Paragraph D In the case of every local authority.- Rates of income lncome-tax On the whole of the total income 50 per cent. Surcharge on Income-tax The amount of income-tax computed at the rate hereinbefore specified shall be in
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