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FINANCE ACT, 1970
19 of 1970
14th May, 1970
An Act to give effect to the financial proposals of the Central Government for the financial year 1970-71. Be it enacted by Parliament in the Twenty-first Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The Finance Act, 1970.
(2) Save as otherwise provided in this Act, sections 2 to27 -(both inclusive) and sections 38 and 39 shall be deemed to have come into force on the 1st day of April, 1970.
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, 1970, income-tax shall be charged at the rates specified in Part I of the First Schedule and, in the cases to which Paragraphs A, B, C and D of that Part apply, shall be increased by a surcharge for purposes of the Union and in the cases to which Paragraph C applies, also by a special surcharge for purposes of the Union, calculated in each case in the manner provided therein.
(2) In making any assessment for the assessment year commencing on the 1st day of April, 1970, where the total income of a company, other than the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956 includes any profits and gains from life insurance business, the income tax payable by it shall be the aggregate of the income-tax calculated-
(i) on the amount of profits and gains from life insurance business so included, at the rate applicable in the case of the Life Insurance Corporation of India, in accordance with Paragraph E of Part I of the First Schedule, to that part of its total income which consists of profits and gains from the insurance business; and
(ii) on the remaining part of its total income, at the rate applicable to the company on its total income.
(3) In cases to which Chapter XII of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) applies, the tax chargeable shall be determined as provided in that Chapter, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter, as the case may be.
(4) In cases in which tax has to be deducted under sections 193 and195 of the Income-tax Act at the rates m force, the deduction shall be made at the rates specified in Part II of the First Schedule.
(5) In cases in which income-tax has to be calculated under the first proviso to sub-section (5) ofsection 132 of the Income-tax Act -or charged under sub-section (4) ofsection 172 or sub-section (2) of section 174 or section 175 -or sub-section (2) ofsection 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 80Eof the said Act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under Chapter XVIIC 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.
(6) 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, 1970, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 194 -of that Act;
(c) "industrial company" means a company which is mainly engaged in the business of generation or distribution of electricity or any other form of power or in the fuck construction of ships or in the manufacture or processing of goods or in mining.
(d) "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;
(e) all other words and expressions used in this section and 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: 03-25 NOTE
-[These sections amend various provisions of the Income-tax Act, 1961. The amendments made by these sections were incorporated in that Act then.]
SECTION 26: NOTE
- This section amends the Wealth-tax 1957 (22 of 1957). The amendments made were incorporated in the principal Act.]
SECTION 27: AMENDMENT OF ACT 18 OF 1958
-[Note.-This section amends the Gift-tax Act, 1958 (18 of 1958). The amendments made by it were incorporated in that Act.]
SECTION 28: AMENDMENT OF ACT 32 OF 1934
- [The Indian Tariff Act, 1934 now stands repealed and repealed by the Customs Tariff Act 1975 (51 of 1975).]
SECTION 29: SPECIAL DUTIES OF CUSTOMS
(1) In the case of goods chargeable with a duty of customs which is specified in the First Schedule to the Tariff Act, or in that Schedule as amended by this Act or a subsequent Central Act, if any, or in that Schedule read with any notification of the Central Government for the time being in force, there shall be levied and collected as an addition to and in the same manner as, the total amount so chargeable, a special duty of customs equal to ten per cent of such amount : Provided that in computing the total amount so chargeable, any duty chargeable undersection 2A of the Tariff Act or section 30 of this Act shall not be included.
(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1971, except as respects things done or omitted to be done before such cesser; andsection 6 of the General Clauses Act, 1897 shall apply upon such cesser as if the said sub-section had then been repeated by a Central Act.
SECTION 30: REGULATORY DUTIES OF CUSTOMS
(1) With a view to regulating or bringing renter economy in imports, there shall be levied and collected, with effect from such date and at such rate, as may be specified in this behalf by the Central Government by notification In the official Gazette, on all or any of the goods mentioned in the First Schedule to the Tariff Act, or in that Schedule as amended by this Act or a subsequent Central Act, if any, a regulatory duly of customs not exceeding-
(a) twenty-five per cent of the rate, if any, specified in the said First Schedule read with any notification issued under section 3A , or sub-sec. (1) of section 4, of the Tariff Act; or
(b) ten per cent of the value of the goods as determined in accordance with the provisions of section 14 of the Customs Act, 1962 whichever is higher: Provided that different dates and different rates may be specified by the Central Government for different kinds of goods.
(2) Sub-section (1) shall cease to have effect after the 15th day of May, 1971, except as respect things done or omitted to be done before such cesser; and section 6 of the General Clauses Act, 1897 shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.
(3) The regulatory duty of customs leviable under this section in respect of any goods referred to in sub-section (1) shall be in addition to any other duty of customs chargeable on such goods under the Customs Act, 1962.
(4) The provisions of the Customs Act, 1962, and the rules and regulations made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the regulatory duty of customs leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of customs on such goods under that Act or those rules and regulations.
(5) Every notification issued under sub-section (1) shall, as soon as may be after it is issued, be placed before each House of Parliament.
SECTION 31: AMENDMENT OF ACT I OF 1949
- This Act stands repealed by Act 51 of 1975.
SECTION 32: AMENDMENT OF ACT I OF 1944
- [Note.- The section amends Central Excises and Salt Act, 1944. These amendments were incorporated in that Act.]
SECTION 33: SPECIAL DUTIES OF EXCISE ON CERTAIN GOODS
(1) When goods of the description mentioned in this section chargeable with a duty of excise under the Central Excise Act (as amended by this Act or any subsequent Central Act) read with any notification for the time being in force issued by the Central Government in relation to the duty so chargeable, are assessed to duty, there shall be levied and collected-
(a) as respects goods comprised in Items Nos. 6, 8,9, 14D, 22A, 23A, except sub-item (1) thereof, 23 B, 28, 29, sub-items (2) and (3) of Item No. 31 and Item No. 32 of the First Schedule to the Central Excises Act, a special duty of excise equal to ten per cent of the total amount so chargeable on such goods;
(b) as respects goods comprised in Items Nos. 2,3 (1), sub-items I, II (2) and II (3) of Item No. 4, Items Nos. 13, 14, 14F, 15, 15A, 15B, 16, 16A, 17., 18A (2), 21,22, 23, 23A (1), 27, 30, 31 (1). 33, sub-items (1). (3a) and (4) of Item No. 34 and sub-items 11(1) and II (2) of Item No. 37 of that Schedule, a special duty of excise equal to twenty per cent of the total amount so chargeable on such goods; and
(c) as respects goods comprised in sub-item II (1) of Item No. 4 and Items Nos. 18, 18A (1), 18B, 20, 29A, 33A and sub-items (2) and (3) of Item No. 34 of the Schedule, a special duty of excise equal to 33 1/3 per cent. of the total amount so chargeable on such goods.
(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1971, except as respects things done or omitted to be done before such cesser; andsection 6 of the General Clauses Act, 1897 -,shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.
(3) The duties of excise referred to in sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the Central Excises Act or any other law for the time being in force and such special duties shall be levied for purposes of the Union and the proceeds thereof shall not be distributed among the States.
(4) The provisions of the Central Excises Act and the rules made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of duties of excise on such goods under that Act or those rules.
SECTION 34: REGULATORY DUTIES OF EXCISE
(1) With a view to regulating or bringing greater economy in consumption, there shall be levied and collected, with effect from such date and at such rate as may be specified in this behalf by the Central Government by notification in the Official Gazette, on all or any of the goods mentioned in the First Schedule to the Central Excises Act as amended by this Act or any subsequent Central Act, a regulatory duty of excise which shall not exceed fifteen per cent of the value of the goods as determined in accordance with the provisions of section 4 of the Central Excises Act Provided that different dates and different rates may be specified by the Central Government for different kinds of goods.
(2) Sub-section (1) shall cease to have effect after the 15th day of May, 1971, except as respects things done or omitted to be done before such cesser, andsection 6 of the General Clauses Act, 1897 -, shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.
(3) The duties of excise referred to in sub-section (1) in respect of the goods specified therein shall be in addition to the duties of excise chargeable on such goods under the Central Excises Act or any other law for the time being in force and such regulatory duties shall be levied for purposes of the Union and the proceeds thereof shall not be distributed among the States.
(4) The provisions of the Central Excises Act and the rules made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the regulatory duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that Act or those rules.
(5) Every notification issued under sub-section (1) shall, as soon as may be after it is issued, be placed before each House of Parliament.
SECTION 35: AMENDMENT OF ACT 58 OF 1957
- [Note.- This section amended Additional Duties of Excise (Goods of Special Importance) Act, 1957. These amendments were incorporated in that Act.]
SECTION 36: DISCONTINUANCE OF SALT DUTY
- For the year beginning on the 1st day of April, 1970, no duty under the Central Excises Act or the Tariff Act shall be levied in respect of salt manufactured in, or imported into, India.
SECTION 37: AMENDMENT OF ACT 6 OF 1898
- [Note.- This section amended Indian Post Office Act, 1898. These amendments were incorporated in that Act.]
SECTION 38: AMENDMENT OF ACT 52 OF 1963
- [Note.- This section amended Unit Trust of India Act, 1963. These amendments were incorporated in that Act.]
SECTION 39: AMENDMENT OF ACT 7 OF 1964
- [Note.- This section amended Companies (Profits) Sur-tax Act, 1964. These amendments were incorporated in that Act.]
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