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FINANCE (NO. 2) ACT, 1991
49 of 1991
An Act to give effect to the financial proposals of the Central Government for the financial year 1991-92. BE it enacted by Parliament in the Forty-second 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, 1991.
(2) Save as otherwise provided in this Act, Sections 2-to119-and125-(except Sections45-,47-.62- ,66-,67-.69-,75-,76-,78-,79-,87-,88-and120-) shall be deemed to have come into force on the 1st day of April, 1991
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, 1991, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax as reduced by the rebate of income- tax calculated under Chapter 8-A of the Income-tax Act, 1961(hereinafter referred to as the Income-tax Act) 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 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, twenty-two 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, twenty -two thousand rupees, and (ii) in a case to which the said Sub-Paragraph II applies, the first twelve 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 shall be calculated as follows:--
(i) the total income and the net agricultural 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 if such aggregate income were the total income;
(ii) the net agricultural income shall be increased,---
(A) in a case to which the said Sub-Paragraph I applies, by a sum of twenty -two thousand rupees: and
(B) in a case to which the said Sub-Paragraph II applies, by a sum of twelve thousand rupees, and the amount of income-tax shall be determined in respect of the net a gricultural 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:
(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income -tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income: Provided that the amount of income-tax so arrived at, as reduced by the rebate of income -tax calculated under Chapter 8-A of the Income-tax Act, shall, in the case of every person having a total income exceeding seventy-five thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax and the sum so arrived at shall be the income-tax in respect of the total income.
(3) In cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (IA) of Section 161-orSection 164-orSection 164A-orSection 167B of 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 subsection
(1) or the rates as specified in that Chapter or section, as the case may be: Provided that in respect of any income chargeable to tax undersection 115B-orsection 115BB of the Income-tax Act-,---
(a) the income-tax computed underSection 115B -shall be increased by a surcharge calculated at the rate of fifteen per cent of such income-tax; and
(b) the income-tax computed underSection 115BB-shall be increased,---
(i) in the case of a person other than a company, being a resident in India, by a surcharge for purposes of the Union calculated at the rate of twelve per cent of such income -tax; and
(ii) in the case of a domestic company, by a surcharge calculated at the rate of fifteen per cent of such income-tax.
(4) In cases in which tax has to be deducted underSections 193-,194-,194-A-,194-B-,194-BB-,194-D-and195 of the Income-tax Act-at the rates in force, the deduction shall be made at the rates specified in Para II of the First Schedule and shall be increased,---
(a) in the cases to which the provisions of sub-item (a) of item I of that Part apply, by a surcharge for purposes of the Union; and
(b) in the cases to which the provisions of sub-item (a) of Item 2 of that Part apply, by a surcharge, calculated in each case in the manner provided therein.
(5) In cases in which tax has to be deducted undersections 194C-,194EE-,194G-and194H of the Income-tax Act,-the deduction shall be made at the rates specified in those sections and shall be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such deduction; Provided that in the case of an assessee, being a domestic company, the provisions of this sub-section shall have effect, as if for the words "twelve per cent", the words "fifteen per cent", had been substituted.
(6) In cases in which tax has to be collected undersection 206C of the Income-tax Act,-the collection shall be made at the rate specified in that section and shall be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such collection; Provided that in the case of a buyer, being a domestic company, the provisions of this sub -section shall have effect, as if for the words "twelve per cent.", the words "Fifteen per cent." had been substituted.
(7) Subject to the provisions of sub-section (8), 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) ofsection 172-or subsection (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 in which the "advance tax" payable under 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 and such tax as reduced by the rebate of income-tax calculated under Chapter VIII-A of the said Act 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 provided therein: Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or subsection (IA) ofsection 161 -or Section 164-orSection 164-A-orSection 167-B 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: Provided further that in respect of any income chargeable to tax undersection 115B of the Income-tax Act-, the "advance tax" computed under the first proviso shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent of such "advance tax".
(8) 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-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, 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, twenty-two thousand rupees, and
(ii) in a case to which the said Sub-Paragraph II applies, twelve thousand rupees, then, in calculating incometax 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, ---
(i) in a case to which the said Sub-Paragraph I applies, the first twenty -two thousand rupees, and
(ii) in a case to which the said Sub-Paragraph II applies, the first twelve 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;
(ii) the net agricultural income shall be increased,---
(A) in a case to which the said Sub-Paragraph I applies, by a sum of twenty - two thousand rupees; and
(B) in a case to which the said Sub-Paragraph II applies, by a sum of twelve 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 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; Provided that the amount of income-tax or "advance tax" so arrived at, as reduced by the rebate of income-tax calculated under Chapter VIII-A of the said Act, shall, in the case of every person having a total income exceeding seventy-five thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve 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.
(9) For the purposes of this section and the First Schedule,---
(a) "company in which the public are substantially interested" means a company within the meaning of clause (18) ofsection 2 of the Income-tax Act-, and includes a subsidiary of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year;
(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, 1991, 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 ofsection 194-of the Act;
(c) "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);
(d) "investment company" means a company whose gross total income (as defined insection 80B of the Income-tax Act-) consists mainly of income which is chargeable under the heads "Income from house property", "Capital gains" and "Income from other sources", or of income by way of interest on securities;
(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 Part 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) "trading company" means a company whose business consists mainly in dealing in goods or merchandise manufactured, produced or processed by a person other than that company and whose income attributable to such business included in its gross total income [as defined insection 50B of the Income-tax Act) is not less than Fifty one per cent. of the amount of such gross total income;
(h) 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 –72
Of this Act amended the following sections of the Income-tax Act, which are being incorporated in the Principal Act and hence not printed hereat. Sections affected are:2-;9-;10-;11-;12A-;13-;17-;29-;32-;35- ;35AC-(ins.);36-;43D-(ins.);44D-:45-:47-:48-;49-;54H-(ins.);57-;71-(subst.);74-;80CCA-;80G-;80GGA- ;80HHC-;80HHD-;80HHE-(ins.);801:801A(ins.);80L-;800-;80Q-(ins.);80QQA-;80U-(subst.);88-;90- ;115A-:115AB-(ins.);119-;132-,139-;140A-;153-;155-;161-:193-;194-;194A-;194BB-;194EE- (ins.);194G-and194H-(ins.);195-;196A-;196B-(ins.);197A-; Ss. 198 to 200,202-,203-:203A-and205- :204-;206-;234C-;244A-;245BA-;245D-;254-;272A-;273A-;279-; Twelfth Sec. (ins.);section 72-, made consequential amendments in certain sections
SECTION 73: AMENDMENT OF SECTION 5
Insection 5 of the Wealth-tax Act, 1957-(hereinafter referred to as the Wealth-tax Act), in subsection (1),---
(a) for clause (xviia). the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1984, namely:-" "(xviia) the amount standing to the credit of ---
(a) an individual: or
(b) a Hindu undivided family: or
(c) an association of persons or body of individuals consisting, in either case, only of husband and wife governed by the system of community of property in force in the State of Goa and the union territories of Dadra and Nagar Haveli and Daman and Diu, in any provident fund set up by the Central Government and notified by it in this behalf in the Official Gazette" ;
SECTION 74: AMENDMEND OF SECTION 16
In section 16 of the Wealth-tax Act-, with effect from the 1st day of October, 1991,---
(a) in sub-section (2), for the proviso, the following proviso shall be substituted, namely:-- "Provided that no notice under this sub-section shall be served on the assessee after the expiry of twelve months from the end of the month in which the return is furnished.";
(b) the following Explanation shall be inserted at the end, namely:--- "Explanation.- An intimation sent to the assessee under sub-section (1) or sub-section (IB) shall be deemed to be an order for the purposes of sub-section (1) of section 25-".
SECTION 75: AMENDMENT OF SECTION 17A
In section 17A of the Wealth-tax Act-, in Explanation I, the following proviso shall be inserted at the end, namely:- "Provided that where immediately after the exclusion of the aforesaid time or period, the, the period of limitation referred to in sub-sections (1), (2) and (3) available to the Assessing Officer for making an order of assessment or reassessment, as the case may be, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly".
SECTION 76: AMENDMENT OF SECTION 18B
Insection 18B of the Wealth-tax Act-, in sub-section (3), the following proviso shall be inserted at the end, namely:--- "Provided that where an order has been made in favour of any person under sub-section
(1) on or before the 24th day of July, 1991, such person shall be entitled to further relief only once in relation to other assessment year or years if he makes an application to the wealth-tax authority referred to in sub-section (4) at any time before the 1st day of April, 1992".
SECTION 77: AMENDMENT OF SECTION 22BA
In section 22BA of the Wealth-tax Act,-with effect from the 1st day of October, 1991;
(a) after sub-section (5), the following sub-section shall be inserted, namely :--- "(5A)
Notwithstanding anything contained in the foregoing provisions of this section, the Chairman may, for the disposal of any particular case, constitute a Special Bench consisting of more than three Members".
(b) in sub-section (6), the following shall be inserted at the end, namely:--- "and the Special Bench shall sit at a place to be fixed by the Chairman".
SECTION 78: AMENDMENT OF SECTION 22D
In section 22D of the Wealth-tax Act-,----
(a) in sub-section (1), after the first proviso, the following proviso shall be inserted, namely:---
"Provided further that the Commissionef shall furnish the report within a,period of one hundred and twenty days of the receipt of communication from the Settlement Commission in case of all applications made undersection 22C-on or after the date on which the Finance (No. 2) Act, 1991 receives the assent of the President and if the Commissioner fails to furnish the report within the said period, the Settlement Commission may make the order without such report".
(b) sub-section (IA) shall beomitted
SECTION 79: AMENDMENT OF SECTION IT
In section 27 of the Wealth-tax Act-, in sub-section (1), after the word and figures "section 26-", the words, brackets, letter and figures "or clause (e) of sub-section (1) of section 35-" shall be inserted.
SECTION 80: AMENDMENT OF .SECTION 34A
In section 34A of the Wealth-tax Act- in sub-section (4B), in clause (a), the words "and a half shall be omitted with effect from the 1st day of October, 1991.
SECTION 81: AMENDMENT OF SECTION 35 35—1
Insection 35-1 of the Wealth-tax Act-, ---
(a) for sub-sections (1) and (2), the following sub-sections shall be substituted, with effect from the 1st day of October, 1991, namely:---
"(1) A person shall not be proceeded against for an offence under this Act except with the previous sanction of the Commissioner or Commissioner (Appeals); Provided that the Chief Commissioner or. as the case may be. Director General may issue such instructions or directions to the aforesaid wealth -tax authorities as he may deem fit for institution of proceedings under this sub-section.
(2) Any such offence may, either before or after the institution of proceedings, be computed by the Chief Commissioner or Director Genera.I": (b) after sub-section (2) as so substituted, the following Explanation shall be inserted and shall be deemed always to have been inserted, namely:- "Explanation. - For the removal of doubts, it is hereby declared that the power of the Board to issue orders, instructions or directions under this Act shall include and shall be deemed always to have included the power to issue instructions or directions (including instructions or directions to obtain the previous approval of the Board) to other wealth-tax authorities for the proper composition of offences under this section.".
SECTION 82: AMENDMENT OF SECTION 37A
Insection 37A of the Wealth-tax Act- in sub-section (6A), for the words "Chief Commissioner or Commissioner", wherever they occur, the words "Director or, as the case may be. Commissioner" shall be substituted with effect from the 1st day of October, 1991.
SECTION 83: AMENDMENT OF SCHEDULE III
InSchedule 3 to the Wealth-tax Act-, with effect from the 1st day of April, 1992,---
(a) inrule 9A,---
(i) after the words "at the option of the assessee", the words "or a company" shall be inserted;
(ii) for the words "four assessment years", wherever they occur the words "nine assessment years" shall be substituted;
(b) inrule 12,----
(i) after sub -rule (2), the following sub -rule shall be inserted, namely :--- "(3) For the purposes of sub-rule (2), the value of an asset disclosed in the balance sheet of-the company shall be taken to be its value determined in accordance with the rules as applicable to that particular asset and. in the absence of any such rule, the value of such asset shall be its value as determined underrule 20 ".
(ii) after sub-rule (4), the following sub-rule shall be inserted, namely: ---- "(5) For the purpose of facilitating the valuation of unquoted equity shares under this rule andrule 13 the company concerned shall have such valuation made by its auditors appointed undersection 224 of the Companies Act, 1956-, and a certificate of the auditors relating to such valuation in the prescribed form shall be furnished to the Assessing Officer and the shareholders of the company; and the valuation made by the auditors shall be taken into account in the assessment of the shareholders of the company."
SECTION 84: 84--90 84 84--90
--- [Incorporated in the Principal Act.]
SECTION 91: 91--112 91 91--112
--- [Incorporated inthe Interest-tax Act, 1974-]
SECTION 113: 113--119 113 113--119
- [Incorporated in the Principal Act]
SECTION 120:
--- [Incorporated in the Principal Act]
SECTION 121:
Amendment of Act 51 of 1975.--- [Incorporated in the Principal Act]
SECTION 122: AMENDMENT OF ACT 5 OF 1986
--- TheCentral Excise Tariff Act, 1985-(herein after referred to as the Central Excise Tariff Act), shall be amended in the manner specified in the Fourth Schedule.
SECTION 123: 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 Fifth Schedule.
SECTION 124: OMISSION OF SECTION 35 OF ACT 18 OF 1964
--- [Incorporated in theIndustrial Development Bank of India Act, 1964-]
SECTION 125: AMENDMENT OF SECTION 40 OF ACT 11 OF 1983
--- Incorporated inthe Finance Act, 1983- This section has been substituted byFinance Act, 1992-
SCHEDULE 01: 1
(See section 2-)PART 1 INCOME-TAX 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 incorporate or not. or every artificial juridical person referred to in sub-clause (vii) of clause (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. 22.000 (2) where the total income exceeds Rs. 22:000 20 per cent. of the amount by which the total but does not exceed Rs. 30.000 income exceeds Rs. 22.000, (3) where the total income exceeds Rs. 30.000 Rs. 1.600 plus 30 per cent. of the amount by which but does not exceed Rs. 50.000 the total income exceeds Rs. 30.000: (4) where the total income exceeds Rs. 50.000 Rs. 7.600 plus 40 per cent, of the amount by which but does not exceed Rs. 1.00.000 the total income exceeds Rs. 50.000: (5) where the total income exceeds Rs. 1.00.000 Rs. 27,600 plus 50 per cent. of the amount by which the total income exceeds Rs. 1.00.000. Surcharge on Income-tax The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, --- (i) in the case of every individual. Hindu undivided family or association of persons or body of individuals referred to insections 88-and88A-having a total income exceeding seventy-five thousand rupees. be reduced by the amount of rebale of income-tax calculated under Chapter VIII-A. and the income- tax as so reduced; (ii) in the case of every person, other than those mentioned in item (i). having a total income exceeding seventy-five thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent of such income-tax Provided that no such surcharge shall be payable by a non-resident. 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. 1991 exceeds Rs 22.000.--- Rates of Income-tax (1) where the total income does not exceed Nil: Rs. 12.000 (2) where the total income exceed Rs. 12.000 25 per cent. of the amount by which the total income but does not exceed Rs 20.000 exceeds Rs. 12.000: (3) where the total income exceeds Rs. 20.000 Rs. 2.000 plus 30 per cent. of the amount by which but does not exceed Rs. 40.000 the total income exceeds Rs. 20.000: (4) where the total income exceeds Rs. 40.000 Rs. 8.000 plus 40 per cent. of the amount by which but does not exceed Rs. 60.000 the total income exceeds Rs. 40.000: (5) where the total income exceed Rs. 60.000 Rs. 16.000 plus 50 per cent. of the amount by but does not exceed Rs. 1,00,000 which the total income exceeds Rs. 60.000. (6) where the total income exceeds Rs. 1.00.000 Rs. 36,000 plus 55 per cent. of the amount by which the total income exceeds Rs. 1.00.000. Surcharge on Income-tax The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding seventy-five thousand rupees, be reduced by the amount of rebate of income-tax calculated under Chapter VIII-A and the income-lax as so reduced be increased by a surcharge for purposes of the Union calculated at the rate of twelve per cent. of such income-tax : Provided that no such surcharge shall be payable by a non-resident Paragraph B In the case of 'every co-operative society.--- Rates or Income-tax (1) where the total income does not exceed 10 per cent. of the total income. Rs. 10.000 (2) where the total income exceeds Rs. 10.000 Rs. 1,000 plus 20 per cent. of the amount hy which but does not exceed Rs. 20.000 the total income exceeds Rs. 10.000, (3) where the total income exceeds Rs. 20.000 Rs. 3,000 plus 35 per cent of the amount hy which the total income exceeds Rs. 20.000. Surchargr on Income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall, in the case of every person having a total income exceeding seventy-five thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve 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. 15.000 (2) where the total income exceeds Rs. 15,000 6 per cent. of the amount by which the total income but does not exceeds Rs. 50.000 exceeds Rs. 15,000: (3) where the total income exceeds Rs. 50.000 Rs. 2,100 plus 12 per cent. of the amount by which but does not exceed Rs. 1,00.000 the total income exceeds Rs. 50.000: (4) where the total income exceeds Rs. 1.00,000 Rs. 8.100 plus 18 per cent. of the amount by which the total income exceeds Rs. 1,00,000: Surcharge on Income-tax The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding seventy-five thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve 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 does not exceed Nil: Rs. 15.000 (2) where the total income exceeds Rs. 15,000 5 per cent. of the amount by which the total income but does not exceed Rs. 50,000 exceeds Rs. 15,000: (3) where the total income exceeds Rs. 50.000 Rs. 1.750 plus 10 per cent. of the amount by which but does not exceed Rs. 1.00,000 the total income exceeds Rs. 50,000; (4) where the total income exceeds Rs. 1.00.000 Rs. 6,750 plus 15 per cent. of the amount by which the total income exceeds Rs. 1,00.000; Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph shall, in the case of every person having a total income exceeding seventy-five thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve pur 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.--- Rate of Income-tax On the whole of the total income 50 per cent. Surcharge on Income-tax The amount of income-tax computed at the rate hereinbefore specified shall, in the case Of every person having a total income exceeding seventy-five thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve 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 40 per cent of the total income: 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 company or 50 Per cent of the total income; an investment company (ii)in any other case 45 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, 1.961 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 has, in either case, been approved by the Central 50 Per cent. Government (ii) In the balance, if any. of the total 65 per cent. income Surcharge on income-tax The amount of income-tax computed in accordance with the provisions of item I of this Paragraph shall, in the case of every person having a total income exceeding seventy-five thousand rupees, be increased by a surcharge calculated at the rate of fifteen per cent. of such income .tax. PART II RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES In every case in which under the provisions ofsections 193-.194194B-.194BB194D-and195 of the Income-tax Act.-tax is to be deducted at the rates in force, deduction shall be made from the income subject to deduction at the following rates :--- Rate of income-tax 1. In the case of a person other than a company- (a) where the person is resident in India- (i) on income by way of interest other 10 per cent.; than "Interest on securities" (ii) on income by way of winnings 40 per cent.: from lotteries and crossword puzzles (iii) on income by way of winnings from 40 per cent.: horse races (iv) on income by way of insurance 10 Per cent.; commission (v) on income by way of interest payable on--- (A) any security, other than a tax-free 10 per cent.: security, of the Central or a Stale Government: (B) any debentures or other securities for money issued by or on behalf of any local authority or a cor- poration established by a Central. State or Provincial Act: (C) any debentures issued by a com- pany where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act. 1956 and any rules made thereunder: (vi) on any other income (excluding 20 per cent.: interest interest payable on a tax-free security) (b) where the person is not resident in India- (i) in the case of a non-resident Indian- (A) on investment income and long- 20 per cent.: term capital gains (B) on income by way of interest 15 per cent.: payable on a tax-free security (C) on income by way of winnings 40 per cent.: from lotteries and crossword puzzles (D) on income by way of winnings 40 Per cent.: from horse races (E) on the whole of other income, income-tax at 30 per cent. of the amount of income: or income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part Ill of this Schedule, if such income had been the total income. which is higher: (ii) in the ease of any other person--- (A) on income by way of interest 15 per cent payable on a tax free security (B) on income by way of winnings 40 per cent.. from lotteries and crossword puzzles (C) on income by way of winnings 40 Per cent.: from horse races (D) on the whole of other income income-tax at 30 per cent. of the amount of income 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: 2. In the case of a company--- (a) where the company is a domestic company.--- (i) on income by way of interest other 20 per cent.: than "Interest on securities" (ii) on income by way of winnings from 40 per cent.; lotteries and crossword puzzles (iii) on income by way of winnings from 40 per cent.; horse races (iv) on any other income (excluding 21.5 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 payable by any domestic company (ii) on income by way of winnings from 40 per cent.: lotteries and crossword puzzles (iii) on income by way of winnings from 40 per cent horse races (iv) on income by way of interest pay- 25 per cent.: able by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (v) on income by way of royalty 30 per cent.. payable by Government or an Indian
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