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FINANCE ACT, 1973
21 of 1973
An Act to give effect to the financial proposals of the Central Government for the financial year 1973-74. Be it enacted by Parliament in the Twenty-fourth Year of the Republic of India as follows:
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The Finance Act, 1973.
(2) Save as otherwise provided in this Act, sections 2-to23-shall be deemed to have come into force on the 1st day of April, 1973.
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, 1973, 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 and D of that Part apply, by a surcharge for purposes of the Union;
(b) in the cases to which Paragraph C of that part applies, by a surcharge for purposes of the Union and a special surcharge for purposes of the Union; and
(c) in the cases to which Paragraphs E and F of that Part apply, by a surcharge, 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, 1973, 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 life 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 or section 164 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 or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be.
(4) In cases in which tax has to be deducted under sections 193-.194(5) Subject to the provisions of sub-section (6), in cases in which income-tax has to be calculated under the first proviso to sub-see. (5) of section 132 of the Income-tax Act-or charged under sub-section (4) of section 172-or sub-section (2) of section 174-orsection 175-or sub- section (2) of section 176-of the said Act or deducted under section 192-of the said Act from income chargeable under the head "Salaries" or deducted under sub-section (9) of section 80E-of the said Act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the rate or rates specified in Part III of the First Schedule: Provided that in respect of any income chargeable to tax under section 164 of the Income-tax Act-at the rate of sixty-five percent., "advance tax" shall be computed at that rate.
(6) In the cases to which Sub-paragraph 1 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, in addition to total income, and the total income exceeds five thousand rupees, then, in calculating income-tax under the first proviso to sub-sec. (5) of section 132 of the Income- tax Act or in charging income-tax under sub-s. (2) of Section 174-orsection 175-or sub-section (2) of section 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 cl. (b) (that is to say, as if the net agricultural income were comprised in the total income after the first five 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 by a sum of five 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;
(iii) the amount by which income-tax or, as the case may be, "advance tax", determined in accordance with sub-clause (i) exceeds the amount of income-tax or "advance tax" determined in accordance with sub-clause (ii) shall be the income-tax or "advance tax" in respect of the total income: Provided that in case where Sub-Paragraph I of the said Paragraph A applies,--
(A) where the aggregate income referred to in sub-clause (i) exceeds fifteen thousand rupees but does not exceed fifteen thousand one hundred and eighty rupees, the provisions of that Sub-Paragraph relating to surcharge on income-tax shall, for the purposes of determining the amount of income-tax or "advance tax" under sub-clause (ii), apply subject to the modifications that such surcharge shall be calculated at the rate arrived at by dividing the amount of surcharge on income-tax calculated in respect of the aggregate income by the amount of income-tax (excluding surcharge) calculated in respect of the aggregate income and that the provisions of the proviso at the end of that Sub-Paragraph shall not apply;
(B) where the aggregate income referred to in sub-clause (i) exceeds fifteen thousand one hundred and eighty rupees, the provisions of that Sub-Paragraph relating to surcharge on income-tax shall, for the purposes of determining the amount of income-tax or "advance tax" under sub clause (ii), apply subject to the modifications that such surcharge shall be calculated at the rate of fifteen percent and that the provisions of the proviso at the end of that Sub-Paragraph shall not apply.
(7) For the purposes of this section and the First Schedule, --
(a) "company in which the public are substantially interested" means a company which is such a company as is referred to in section 108 of the Income-tax Act-;
(b) "domestic company" means an Indian company, or any other company which, in respect of its income liable to income-tax under the Income-tax Act for the assessment year commencing on the 1st day of April 1973, 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 construction of ships or in the manufacture or processing of goods or in mining.
(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 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) 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: 03-19
- These sections amend Ss.2SECTION 20:
- Amendments incorporated in Wealth-tax Act, 1957.
SECTION 21:
- Amendment incorporated in Gift-tax Act, 1958..
SECTION 22: AMENDMENT OF ACT 7 OF 1964
- Amendments incorporated in the principal Act Printed in Vol. 7
SECTION 23: CREDIT GUARANTEE CORPORATION OF INDIA LIMITED TO BE EXEMPT FOR A CERTAINPERIOD FROM LIABILITY TO PAY INCOME-TAX AND SUR-TAX
-- Notwithstanding anything contained in the Income-tax Act or the Companies (Profits) Sur-tax Act, 1964, the Credit Guarantee Corpora- tion of India Limited (a company formed and registered under the Companies Act, 1956-), shall not be liable to pay any tax, under either of the two Acts first-mentioned, on its income, profits or gains for the previous year relevant to the assessment year commencing on the 1st day of April, 1972, and for the1[Seven previous years] next following that previous year.
SECTION 24: AMENDMENT OF ACT 32 OF 1934
- This Act has been repealed and replaced by the Customs Tariff Act, 1975 (51 of 1975)-
SECTION 25: AUXILIARY DUTIES OF CUSTOMS
(1) In the case of goods mentioned in the First Schedule to the Tariff Act. or in that Schedule as amended from time to time, there shall be levied and collected as an auxiliary duty of customs an amount equal to twenty percent. of the value of the goods as determined in accordance with the provisions of section 14 of the Customs Act, 1962-.
(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1974, except as respects things done or omitted to be done before such cesser and section 6 of the General Clauses Act. 1897shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.
(3) The auxiliary duties of customs referred to in sub-section (1) shall be in addition to any duties of customs chargeable on such goods under the Customs Act, 1962-. or any other law for the time being in force.
(4) The provisions of the Customs Act, 1962-, and the rules and regulations made there under, 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 auxiliary duties 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, as the case may be.
SECTION 26: . AMENDMENT OF ACT I OF 1949
This Act is repealed by Act 51 of 1975.
SECTION 27: AMENDMENT OF ACT 1 OF 1944
The Central Excises and Salt Act, 1944-(hereinafter referred to as the Central Excises Act) shall be amended in the manner specified in the Third Schedule.
SECTION 28: AUXILIARY DUTIES OF EXCISE.
(1) In the case of goods mentioned in the First Schedule to the Central Excise Act, or in that Schedule as amended from time to time, there shall be levied and collected as an auxiliary duty of excise an amount equal to twenty percent. of the value of the goods as determined in accordance with the provisions of section 4 of the Central Excises Act-.
(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1974, except as respects things done or omitted to be done before such cesser and section 6 of the General Clauses Act. 1897(3) The auxiliary duties of excise referred to in sub-section (1) shall be in addition to any duties of excise chargeable on such goods under the Central Excises Act or any other law for the time being in force.
(4) The auxiliary duties of excise referred to in sub-section (1) shall be levied for the purposes of the Union and the proceeds thereof shall not be distributed among the States.
(5) The provisions of the Central Excises Act and the rules made there under, 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 auxiliary 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, as the case may be.
SECTION 29: AMENDMENT OF ACT 58 OF 1957
- Amendment incorporated in the Principal Act printed in Vol. I.
SECTION 30: DISCONTINUANCE OF SALT DUTY
-- For the year beginning on the 1st day of April, 1973. no duty under the Central Excises Act or the Tariff Act shall be levied in respect of salt manufactured in, or imported into. India.
SCHEDULE 01:
(See section 2-) PART IINCOME-TAX AND SURCHARGES ON INCOME-TAX Paragraph A In the case of every individual or Hindu undivided Family or unregistered firm .or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act-, not being a case to which any other Paragraph of this Part applies - Rates of income-tax (1) where the total income does not exceed Nil; Rs. 5,000 (2) where the total income exceeds Rs. 5,000 10 percent of the amount by which the total income but does not exceed Rs. 10.000 exceeds Rs, 5.000 (3) where the total income exceeds Rs. 10,000 Rs. 500 plus 17 percent. of the amount by which but does not exceed Rs. 15,000 the total income exceeds Rupees 10,000; (4) where the total income exceeds Rs. 15,000 Rs. 1,350 plus 23 percent. of the amount by which but does not exceed Rs. 20,000 the total income exceeds Rupees 15,000: (5) where the total income exceeds Rs. 20.000 Rs. 2,500 plus 30 percent. of the amount by which but does not exceed Rs. 25,000 the total income exceeds Rupees 20,000, (6) where the total income exceeds Rs. 25,000 Rs. 4,000 plus 40 percent. of the amount by which but does not exceed Rs. 30,000 the total income exceeds Rupees 25,000: (7) where the total income exceeds Rs. 30,000 Rs. 6,000 plus 50 percent. of the amount by which but does not exceed Rs. 40,000 the total income exceeds rupees 30,000: (8) where the total income exceeds Rs. 40,000 Rs. 11,000 plus 60 percent. of the amount by which but does not exceed Rs. 60,000 the total income exceeds Rupees 40,000; (9) where the total income exceeds Rs. 60,000 Rs. 23,000 plus 70 percent. of the amount by which but does not exceed Rs. 80,000 the total income exceeds Rupees 60,000: (10) where the total income exceeds Rs. 80,000 Rs. 37,000 plus 75 percent. of the amount by which but does not exceed Rs. 1,00,000 The total income exceeds Rupees 80,000; (11) where the total income exceeds Rs. 1,00,000 Rs. 52,000 plus 80 percent. of the amount by which but does not exceed Rs. 2,00,000 the total income exceeds Rupees 1,00,000; (12) Where the total income exceeds Rs. 2,00,000 Rs 1,32,000 plus 85 percent. of the amount by which the total income exceeds Rs. 2,00,000; Provided that for the purposes of this Paragraph, in the case of a Hindu undivided family which at any time during the previous year satisfies either of the following two conditions, namely:- (a) that it has at least two members entitled to claim partition who are not less than eighteen years Of age, or (b) that it has at least two members entitled to claim partition who arc not lineally descended one from the-other and who are not lineally descended from any other living member of the family,- (i) no income-tax shall be payable on a total income not exceeding Rupees 7,000; (ii) where the total income exceeds Rs. 7,000 but does not exceed Rs. 7,660. The income-tax payable thereon shall not exceed forty percent. of the amount by which the total income exceeds Rs. 7,000. 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 following rates, namely; (a) in a .case where the total income does not exceed Rs. 15,000 10 percent. (b) In any other case 15 percent. Provided that the amount of surcharge payable shall in no case, exceed the aggregate of the following sums, namely; (i) an amount calculated at the rate of 10 percent on the amount of income-tax on an income of Rs. 15,000, iff such income had been the total income (the income of Rs. 15,000 for this purpose being computed as If such income included income from various sources in the same proportion as the total income of the person concerned); and (ii) 40 percent. of the amount by which the total income exceeds Rs. 15,000. Paragraph B In the case of every co-operative society,- Rates of income-tax (1) where the total income does not exceed 15 Percent 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 percent of the amount by which the total income exceeds Rs. 20,000. Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen percent of such income-tax. Paragraph C In the case of every registered firm, -- 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 4 percent 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 6 percent. of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rs. 25,000: (4) where the total income exceeds Rs. 50,000 Rs. 2.100 plus 12 percent 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. 8,100 plus 20 percent of the amount by which the total income exceeds Rs. 1,00,000. Surcharges on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the Union calculated as specified hereunder :-- (a) in the case of 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 percent of such total income, a surcharge calculated at the rate of ten percent of the amount of income-tax computed at the rates hereinbefore specified: (b) in the case of any other registered firm, a surcharge calculated at the rate of twenty percent of the amount of income-tax computed at the rate hereinbefore specified: and (c) a special surcharge calculated at the rate of fifteen percent. on the aggregate of the following amounts, namely:- (i) the amount of income-tax computed at the rate hereinbefore specified: and (ii) the amount of the surcharge calculated in accordance with clause (a), or. as the case may be. clause (b). explanation.- - For the purposes of this Paragraph, "registered firm" includes an unregistered firm assessed as a registered firm under Cl. (b) of section 183 of the Income-lax Act-. Paragraph D In the case of every local authority,-- Rate of income-tax On the whole of the total income . 50 percent Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen percent. of such income-tax Paragraph E In the case of the Lift Insurance Corporation of India established under the Life Insurance Corporation Act, 1956,- Rates of income-tax (i) on that part of its total income which 52.5 percent.; consists of profits and gains from the life insurance business (ii)on the balance, if any of the total the rate of income-tax applicable, in accordance income with Paragraph F of this Part, to the total income of a domestic company which is a company in which the public are substantially interested. Surcharge on income-tax The amount of income-tax, computed at the rate hereinbefore specified shall be increased by a surcharge calculated at the rate of five percent of such income-tax. Paragraph F In the case of a company, other than the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956,--- 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 percent of the total income does not exceed Rs. 50,000 (ii) in a case where the total income 55 percent of the total income exceeds Rs. 50,000 (2)where the company is not a company in which the public are substantially interested. --- (i) in the case of an industrial company--- (a) on so much of the total income 55 percent., As does not exceed Rs 10,00,000 (b) on the balance, if any, of the 60 percent. total income (ii) in any other case 65% of the total income Provided that 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. 50,000 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 50,000 (the income of Rs. 50,000 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 percent of the amount by which its total income exceeds Rs. 50,000. II In the case of a company other than a domestic company - (i) on so much of the total income as consists of - (a) royalties received from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March, 1961. Or (b) fees for rendering technical services received from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 29th day of February, 1964. And where such agreement has, in 50 percent. either case, been approved by the Central Government (ii)on the balance, if any, of the total income 70 percent; Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge calculated at the rate of five percent of such incometax. PART II Rates for deduction of tax at sourer in certain cases In every case in which under the provisions of Ss. 193, 194, 194A, 194B, 194D and 195 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:--- _____________________________________________________________________________________________________________ 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 resident- (i) on income by way of interest other 10 percent Nil, than "Interest on securities". (ii) on income by way of winnings from 30 percent 4.5 percent. lotteries and cross-word puzzles (iii)on income by way of insurance 10 percent Nil: commission (iv) on any other income (excluding, 20 percent 3 percent, interest payable on a tax-free security) (b) where the person is not resident in India - (i) on the- whole income (excluding income-tax at 8 percent and surcharge t 4.5 per interest payable on a tax-free security) 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 1 of Paragraph A of Part III of the Schedule, if such income had been the total income, whichever is higher: (ii) on income by way of interest pay- 15 percent. 2.25 percent able 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 other 20 percent. 1 percent. than "interest on securities" (ii) on any other income (excluding 22 percent. 1 percent. interest payable on a tax-free security) (b) where the company is not a domestic company- (i) on income by way of dividends 24.5 percent. 1.225 percent. payable by any domestic company (ii)on income by way of royalties payable by an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March. 1961. and which has been approved by the Central Government (iii)on income by way of fees payable by an Indian concern for rendering technical services in pursuance of an agreement made by it with the Indian concern after the 29th day of February, 1964, and which has been approved by the Central Government 50 percent. 2.5 percent. (iv)on income by way of interest 44 percent. 2.2 percent . payable on a tax-free security (v)on any other income 70 percent. 3.5 percent .PART III Rates for calculating or charging income-tax in certain cases, deducting income-tax from income chargeable under the head "Salaries" or any payment referred to in sub-section (9) of section 80 E-and computing "advance tax". In cases in which income-tax has to be calculated under the first proviso to sub-sec. (5) of section 132 of the Income-tax Act-or charged under sub-section (4) of section 172-or sub-section (2) of section 174-orsection 175-or sub-section (2) of section 176-of the said Act or deducted under section 192-of the said Act from income chargeable under the head "Salaries" or deducted under sub-section (9) of section 80E-of the said Act from any payment referred to in the said sub-sec. (9) or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such income-tax or. as the case may be, "advance-tax" (not being "advance-tax" in respect of any income chargeable to tax under section 164 of the Income-Tax Act-at the rate of sixty-five percent.) shall be so calculated. charged, deducted or computed at the following rate or rates :-- Paragraph A Sub-Paragraph 1 In the case ol every individual or Hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act-. not being a case to which Sub- Paragraph II of this Paragraph or any other Paragraph of this Part applies. - Rates of income-tax (1) where the total income does not exceed Nil; Rs. 5,000 (2) where the total income exceeds Rs. 5,000 10 percent of the amount by which the total income but does not exceed Rs. 10,000 exceeds Rs, 5.000 (3) where the total income exceeds Rs. 10,000 Rs. 500 plus 17 percent. of the amount by which . but does not exceed Rs. 15,000 the total income exceeds Rupees 10,000; (4) where the total income exceeds Rs. 15,000 Rs. 1,350 plus 23 percent of the amount by which but does not exceed Rs. 20,000 the total income exceeds Rupees 15.000; , (5) where the total income exceeds Rs. 20,000 Rs. 2,500 plus 30 percent of the amount by which but does not exceed Rs. 25.000 the total income exceeds Rupees 20,000; (6) where the total income exceeds Rs. 25.000 Rs. 4,000 plus 40 percent of the amount by which but does not exceed Rs. 30,000 the total income exceeds rupees 25.000; (7) where the total income exceeds Rs. 30,000 Rs. 6.000 plus 50 percent of the amount by which but does not exceed Rs. 40,000 the total income exceeds Rupees 30,000; (8) where the total income exceeds Rs. 40.000 Rs. 11,000 plus 60 percent of the amount by which but does not exceed Rs. 60.000 the total income exceeds Rupees 40.000; (9) where the total income exceeds Rs. 60,000 Rs. 23000 plus 70 percent of the amount by which but does not exceed Rs. 80,000 the total income exceeds Rupees 60,000; (10)where the total income exceeds Rs. 80,000 Rs. 37,000 plus 75 percent of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 80.000; (11)where the total income exceeds Rs. 1,00,000 Rs. 52,000 plus 80 percent of the amount by which but does not exceed Rs. 2,00,000 the total income exceeds Rupees 1.00,000; (12)where the total income exceeds Rs. 2,00.000 Rs 1,32,000 plus 85 percent of the amount by which the total income exceeds Rs. 2.00,000; 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 following rates, namely:- (a) in a case where the total income 10 percent.; does not exceed Rs. 15.000 (b) in any other case 15 percent.; Provided that the amount of surcharge payable shall, in no case, exceed the aggregate of the following sums. namely:- (i) an amount calculated at the rate of 10 percent. on the amount of income-tax on an income of Rs. 15,000, if such income had been the total income (the income of Rs. 15,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the person concerned); and (ii) 40 percent. of the amount by which the total income exceeds Rs. 15,000 Sub-Paragraph II In the case of every Hindu undivided family which has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April. 1974, exceeds, Rs. 5,000.- Rates of income-tax (1) where the total income does not exceed Nil; Rs. 5.000 (2) where the total income exceeds Rs. 5,000 17 percent of the amount by which the total income hut does not exceed Rs. 10.000 exceeds Rs, 5.000 (3) where the total income exceeds Rs. 10.000 Rs. 850 plus 23 percent. of the amount by which but does not exceed Rs. 15,000 the total income exceeds Rupees 10.000. (4) where the total income exceeds Rs. 15,000 Rs. 2,000 plus 30 percent of the amount by which but does not exceed Rs. 20,000 the total income exceeds Rupees 15.000: (5) where the total income exceeds Rs. 20,000 Rs. 3.500 plus 40 percent of the amount by which but does not exceed Rs. 25,000 the total income exceeds Rupees 20.000: (6) where the total income exceeds Rs. 25,000 Rs. 5,500 plus 50 percent of the amount by which but does not exceed Rs. 30,000 the total income exceeds Rupees 25.000: (7) where the total income exceeds Rs. 30.000 Rs. 8.000 plus 60 percent of the amount by which but does not exceed Rs. 40.000 the total income exceeds rupees 30.000: (8) where the total income exceeds Rs. 40,000 Rs. 14,000 plus 70 percent of the amount by which but does not exceed Rs. 60,000 the total income exceeds Rupees 40,000: (9) where the total income exceeds Rs. 60,000 Rs. 28.000 plus 75 percent of the amount by which but does not exceed Rs. 80,000 the total income exceeds Rupees 60.000: (10)where the total income exceeds Rs. 80,000 Rs: 43.000 plus 80 percent of the amount by which but does not exceed Rs. 1.00,000 the total income exceeds Rupees 80.000: (11)where the total income exceeds Rs. 1,00.000 Rs. 59.000 plus 85 percent 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 the Sub-Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen percent. of such income-tax. Paragraph B In the case of every co-operative society.- Rates of income-tax (1) where the total income does not exceed 15 percent. 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 which but does not exceed Rs. 20,000 the total income exceeds Rs. 10,000: (3)where the total income exceed Rs. 20,000 Rs. 4,000 plus 40 percent. of the amount by which the total income exceeds Rs. 20,000. Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen percent. of such income-tax. Paragraph C In the case of every registered firm,-- 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 4 percent of the amount by which the total income but does not exceed Rs. 25,000 exceeds Rs. 10,000; (3) where the total income exceed Rs. 25.000 Rs. 600 plus 6 percent. of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rs. 25.000: (4) where the total income exceeds Rs. 50.000 Rs. 2,100 plus 12 percent 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. 8.100 plus 20 percent of the amount by which the total income exceeds Rs. 1,00.000. Surcharges on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of surcharges for purposes of the Union calculated as specified hereunder:-- (a) in the case of a 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 percent. of such total income. a surcharge calculated at the rate of ten percent. of the amount of income-tax computed at the rate hereinbefore specified; (b) in the case of any other registered firm. a surcharge calculated at the rate of twenty percent. of the amount of income-tax computed at the rate hereinbefore specified: and (c) a special surcharge calculated at the rate of fifteen percent. on the aggregate of the following amounts, namely- (i) the amount of income-tax computed at the rate hereinbefore specified; and (ii) the amount of the surcharge calculated in accordance with clause (a) or. as the case may be. clause (b). Explanation." - For the purposes of this paragraph, "registered firm" includes an unregistered firm assessed as a registered firm under clause (b) of section 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 percent. Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by .a surcharge for purposes of the Union calculated at the rate of fifteen percent of such income-lax. Paragraph E In the case of the Life Insurance Corporation of India established under the Life Insurance Corporation Act. 1956.- Rates of Income-tax (i) on that part of its total income which 52.5 percent consists of profits and gains from life insurance business (ii)on the balance, if any, of the total the rate of income-tax applicable, in accordance income with Paragraph F of this Part, to the total income of a e domestic company which is a company in which the public are substantially interested. Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge calculated at the rate of five percent. of such income-tax. Paragraph F In the case of a company, other than the Life Insurance Corporation of India established under the Life Insurance Corporation Act, 1956,- 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 percent. of the total income: does not exceed Rs. 1.00,000 (ii)in a case where the total income 55 percent. of the total income, exceed 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) on so much of the total income as 55 percent.; does not exceed Rs. 2.00,000 (b) on the balance, if any, of the total 60 percent. income (ii) in any other case 65 percent. of the total income. provided that the income- tax payable by a domestic company, being a company in which the public are substantiality 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 percent. of the amount by which its total income exceeds Rs. 1,00.000. II In the case of a company other than a domestic company- (i) on so much of the total income as consists of - (a) royalties received from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March, 1961, or (b) fees for rendering technical services received from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 29th day of February, 1964. and where such agreement has. in either case, been approved by the Central Government 50 percent. (ii)on the balance, if any, of the total income 70 percent. Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge calculated at the rate of five percent. of such income-tax. PART IV (See section 2 (7) (e)-] RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME
RULE 01:
- Agricultural income of the nature referred to in sub-clause (a) of clause (1) of section 2 of the Income-tax Act-shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from other sources" and the provisions of sections 57-to59-of that Act shall, so far as may be, apply accordingly: Provided that sub-section (2) of section 58-shall apply subject to the modification that the reference to section 40A-therein shall be construed as not including a reference to sub-sections (3) and (4) of section 40A-
RULE 02:
- Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1) of section 2 of the Income-tax Act-other than income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head "Profits and gains of business or profession" and the provisions of sections30-,31-32-,34-,36-,37-,40-,40A-(other than sub-sections (3) and (4) thereof),41-,43-and43A of the Income- tax Act-shall, so far as may be, apply accordingly.
RULE 03:
- Agricultural income of the nature referred to in sub-clause (c) of clause (1) of section 2 of the Income-Tax Act- being income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c). shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from house property" and the provisions of sections 23-to27-of the Act shall, so tar as may be, apply accordingly: Provided that sub-section (2) of the said section 23-shall apply subject to the modifications that the references to "total income" therein shall be construed as references to net agricultural income and that the words, figures and letter "and before making and deduction under Chapter VIA" shall he omitted.
RULE 04:
-- Notwithstanding anything contained in any other provisions of these rules, in a case where the assesses derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with Rule 8 of the Income-tax-tax Rules, 1962, and sixty percent. of such income shall be regarded as the agricultural income of the assessed.
RULE 05:
- Where the assessee is a partner of a registered firm or an unregistered firm assessed as a registered firm under clause {b) of section 183 of the Income-tax Act-, which in the previous year has any agricultural income, or is a partner of an unregistered firm which has not been assessed as a registered firm under cl. (b) of the said section 183-and which in the previous year has either no income chargeable, to tax under the Income-tax Act or has total income not exceeding five thousand rupees but has any agricultural income, then the agricultural income or loss of the firm shall be computed in accordance with these rules and his share in the agricultural income or loss of the firm shall be computed in the manner laid down in sub-sec. (1), sub-section (2) and sub-section (3) of section 67 of the Income-tax Act-and the share so computed shall be regarded as the agricultural income or loss of the assessee.
RULE 06:
- Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income- chargeable to tax under the Income-tax Act or has total income not exceeding five thousand rupees but. has any agricultural income, then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.
RULE 07:
- Where the result of the computation for any assessment year in respect of any source of agricultural income is a loss. such loss shall be set off against the income of the assessee. if any, for that assessment year from any other source of agricultural income : Provided that where the assessee is a partner of an unregistered firm which has not been assessed As a registered firm under clause (b) of section 183 of the Income-tax Act-or is a member of an association of persons or body of individuals and the share of the assessee in the agricultural income of the firm association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.
RULE 08:
-- Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.
RULE 09:
- Where the net result of the computation made in accordance with these rules is a loss the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.
RULE 10:
- The provisions of the Income-tax Act relating to procedure for assessment (including the provisions of section 288A-relating to rounding off of income) shall with the necessary modifications apply in relat
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