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FINANCE ACT, 1981
16 of 1981
12th May, 1981
An act to give effect to the financial proposals of the Central Government for the financial year 1981-82 Be it enacted by Parliament in the Thirty-second Year of the Republic of India as follows
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The finance Act, 1981.
(2) Save as otherwise provided in this Act, sections 2-to45-andsection 53-shall be deemed to have come into force on the 1st day of April, 1981.
SECTION 02: INCOME-TAX
(1) Subject to the provisions of sub-section (2) and (3), for the assessment year commencing on the 1st day of April, 1981, income-tax shall be charted at the rates specified in part I of the First Schedule and shall be increased, -
(a) in the cases to which Paragraphs A, B, C and D of that Part apply, by a surcharge for purposes of the Union; and
(b) In the cases to which Paragraph E of that part applies, by a surcharge, calculated in each case in the manner provided therein.
(2) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part I of the First Schedule applies, where the assessee has in the previous year, any net agricultural income exceeding six hundred rupees in addition to total income, and the total income exceeds 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 the first eight 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: Provided that for the purpose of determining the amount of income-tax in accordance with this sub-clause, the provisions of clause (ii) of the proviso below sub-paragraph I or, as the case may be, sub-paragraph II of the said Paragraph A and the provisions relating to surcharge on income tax in the said sub-paragraphs shall not apply;
(ii) the net agricultural income shall be increased by a sum of eight thousand rupees and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in sub-paragraph I or, as the case may be, sub-paragraph II of the said Paragraph A, as if the net agricultural income as so increased were the total income. Provided that for the purposes of determining the amount of income-tax in accordance with this sub-clause, the provisions of clause (i) and clause (ii) of the proviso below sub-paragraph I or, as the case may be, sub-paragraph II of the said Paragraph A and the provisions relating to surcharge on income-tax in the said sub-paragraphs shall not apply;
(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii): Provided that where the sum so arrived at exceeds sixty percent of the amount by which the total income exceeds twelve thousand rupees, the excess shall be disregarded;
(iv) the amount of income-tax determined in accordance with sub-clause (iii) shall be increased by a surcharge for purposes of the Union calculated at the rate of ten percent 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 Section 164-orSection 164A-orSection 167A of the Income-tax Act, 1961-(hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to 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-section (5) of Section 132 of the Income-tax Act-or charged under sub-section (4) of Section 172-or sub-section (2) of Section 174-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 lax" shall be so calculated, charged, deducted or computed at the rate or rates specified in Part III of the First Schedule: Provided that in cases to which the provisions of Chapter XII or Section 164-orSection 164A-orSection 167A of the Income-tax Act-apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be.
(6) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-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, fifteen thousand rupees, and
(ii) in a case to which the said sub-paragraph II applies, twelve thousand rupees; then, in calculating income-tax under the first proviso to sub-section (5) of Section 132 of the Income-tax Act-or in charging income-tax under sub-section (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 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 they said sub-paragraph I applies, the first fifteen thousand rupees, and
(ii) in a case to which they said sub-paragraph II applies, the first eight 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 lax" shall be determined in respect of the aggregate income at the rates specified in sub-paragraph I or, as the case may be, sub-paragraph II of the said Paragraph A, as if such aggregate income were the total income: Provided that in a case referred to in the said sub-paragraph II, for the purposes of determining the amount of income-tax of "advance tax" in accordance with this sub-clause, the provisions of Clause (ii) of the proviso below the said sub- paragraph II and the provisions relating to surcharge on income-tax in the said sub-paragraph II shall not apply,
(ii) the net agricultural income shall be increased,-
(A) in a case to which they said Sub-Paragraph I applies, by a sum. of fifteen thousand rupees: and
(B) in a case to which they said Sub-Paragraph II applies, by a sum of eight thousand rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in 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: Provided that in a case referred to in the said Sub-Paragraph II, for the purposes of determining the amount of income-tax or "advance tax" in accordance with this sub-clause, the provisions of Cl. (ii) of the proviso below the said sub-Paragraph II and the provisions relating to surcharge on income-tax in the said Sub-Paragraph II shall not apply:
(iii) the amount of income-tax or "advance tax" determined in accordance with sub- clause (i) shall be reduced by the amount of income-tax or. as the case may be, "advance tax" determined in accordance with sub-clause (ii): Provided that in a case referred to in the said Sub-Paragraph II, where the sum so arrived at exceeds sixty percent of the amount by which the total income exceeds twelve thousand rupees, the excess shall be disregarded:
(iv) the amount of income-tax or "advance tax" determined in accordance with sub- clause (iii) shall be increased by a surcharge for purposes of the Union calculated at the rate of ten percent of such income-tax or, as the case may be, "advance tax" and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income.
(7) For the purposes of this section and the First Schedule.-
(a) "company in which the public are substantially interested" means a company which is such a company as is referred to in Section 108 of the Income-tax-Act;
(b) "domestic company" means an Indi an 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, 1981, 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-
Explanation. - For the purposes of this clause, a company shall be deemed to be mainly engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in mining, if the income attributable to any one or more of the aforesaid activities included in its total income of the previous year (as computed before making any deduction under Chapter VIA of the Income-tax Act) is not less than fifty-one percent of such total income;
(d) "insurance commission" means any remuneration or reward whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance);
(e) "net agricultural income", in relation to a person means, the total amount of agricultural income, from whatever source derived, of that person computed in accordance, with the rules contained in 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 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: 3-25
- Amended or inserted Ss. 1OA, 16, 32A, 33A, 36, 46, 80D, 80HHA, 80M, 80QQ, 86, 164A, 167A, 208, 252, 253, 256, 269G, 293A. Ninth & Eleventh Schedules of the Income-tax Act, incorporated in the principal Act, Hence not printed here at.
SECTION 26: 26-31
-~ Amendments incorporated in the Wealth-tax Act, 1957 (27 of 1957).
SECTION 32: 32-34
-- Amendment Ss 23, 25,26, of the Gift Tax Act, which have been incorporated in that Act, Hence not printed here.
SECTION 35: 35-43
- Amended the provisions of the Companies (Profits) Sur-lax Act, 1964, have been incorporated in that Act.
SECTION 44: AMENDEMENT OF ACT 45 OF 1974
- [Incorporated in the Act.]
SECTION 45: AMENDMENT OF ACT 54 OF 1980
- [Incorporated in the Act.]
SECTION 46: AMENDMENT OF ACT 51 OF 1975
- [Incorporated in the Act.]
SECTION 47: AUXILIARY DUTIES OF CUSTOMS
(1) In the case of goods mentioned in the First Schedule to the Customs 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-five percent of the value of goods as determined in accordance with the provisions of Section 14 of the Customs Act, 1962 (52 of 1962)-(hereinafter referred to as the Customs Act).
(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1982, except as respects things done or omitted to be done before such cesser; and section 6 of the General Clauses Act, 1897, (10 of 1897)-shall 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, or any other law for the time being in force.
(4) The provisions of the Customs Act. 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 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 48: AMENDMENT OF ACT 1 OF 1944
-The Central Excises and Salt Act, 1944-(hereinafter referred to as the Central Excises Act), amended in the manner specified in the third Schedule. [Amendments incorporated in the Principal Act.]
SECTION 49: SPECIAL DUTIES OF EXCISE
(1) In the case of goods chargeable with a duty of excise under the Central Excises Act as amended from time to time, read with any notification for the time being in force issued by the Central Government in relation to the duty so chargeable there shall be levied and collected a special duty of excise equal to ten percent of the amount so chargeable on such goods.
(2) Sub-section (1) shall cease to have effect after the 31st day of March. 1982, except as respects things done or omitted to be done before such cesser, and section 6 of the General Clauses Act, 1897 (10 of 1897)-shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.
(3) The special 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 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 special 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 50: AMENDMENT OF ACT 58 OF 1957
- [Incorporated in the Principal Act]
SECTION 51: AMENDMENT OF ACT 40 OF 1978
- [Incorporated in the Principal Act]
SECTION 52: AMENDMENT OF ACT 16 OF 1955
- [Incorporated in the Principal Act]
SECTION 53: AMENDMENT OF ACT 38 OF 1974
- [Incorporated in the Principal Act]
SCHEDULE 01:
(See section 2-) PART I INCOME-TAX AND SURCHARGE ON INCOME-TAX Paragraph A Sub-Paragraph I In the case every individual or Hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not 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. 8,000 (2) where the total income exceeds Rs. 8,000 15 percent of the amount by which the total income but does not exceed Rs. 15,000 exceeds Rupees 8,000; (3) where the total income exceeds Rs. 15,000 Rs. 1,050 plus 18 percent of the amount by which but does not exceed Rs. 20,000 the total income exceeds Rupees 15,000; (4) where the total income exceeds Rs. 20,000 Rs. 1,950 plus 25 percent of the amount by which but does not exceed Rs. 25,000 the total income exceeds Rupees 20,000; (5) where the total income exceeds Rs. 25,000 Rs. 3,200 plus 30 percent of the amount by which but does not exceed Rs. 30.000 the total income exceeds Rupees 25,000; (6) where the total income exceeds Rs. 30,000 Rs. 4,700 plus 40 percent of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rupees 30,000; (7) where the total income exceeds Rs. 50,000 Rs. 12,700 plus 50 percent of the amount by which but does not exceed Rs. 70,000 the total income exceeds Rupees 50.000; (8) where the total income exceeds Rs. 70,000 Rs. 22.700 plus 55 percent of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 70.000; (9) where the total income exceeds Rs. 1.00,000 Rs. 39.200 plus 60 percent of the amount by which the total income exceeds Rupees 1,00,000. _____________________________________________________________________________________________________________________Provided that for the purposes of the sub-paragraph - (i) no income-tax shall be payable on a total income not exceeding Rs. 12,000: (ii) where the total income exceeds Rs. 12,000 hut does not exceed Rs. 16.250, the income-lax payable thereon shall not exceed thirty percent of the amount by which the total income exceeds Rs. 12.000. Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall he increased by a surcharge for purposes of the Union calculated at the rate of ten percent of such income-tax. Sub-paragraph II In the case of every Hindu undivided family which at any lime during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1981 exceeds Rs. 12,000.- Rates of income-tax__________________________________________________________________________________________________________________ (1) where the total income does not exceed Nil; Rs. 8.000 (2) where the total income exceeds Rs. 8.000 22 percent of the amount by which the total income but does not exceed Rs. 15.000 exceeds Rs. 8,000; (3) where the total income exceeds Rs. 15,000 Rs. 1.540 plus 27 percent of the amount by which but does not exceed Rs. 20,000 the total income exceeds Rupees 15,000; (4) where the total income exceeds Rs. 20.000 Rs. 2890 plus 35 percent of' the amount by which but does not exiceed Rs. 25,000 the total income exceeds Rupees 20,000; (5) where the total income exceeds Rs. 25.000 Rs. 4,640 plus 40 percent of' the amount by which but does not exceed Rs. 30,000 the total income exceeds Rupees 25,000. (6) where the total income exceeds Rs. 30,000 Rs. 6,640 plus 50 percent of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rupees 30,000. (7) where the total income exceeds Rs. 50,000 Rs. 16,640 plus 60 percent of the amount by which the total income exceeds Rupees 50,000. __________________________________________________________________________________________________________________Provided that for the purposes of the Sub-Paragraph.- (i) no income-tax shall be payable on a total income not exceeding Rs. 12,000: (ii) where the total income exceeds Rs. 12,000 but does not exceed Rs. 17,610. the income-tax payable thereon shall not exceed forty percent of' the amount by which the total income exceeds Rs. 12,000. Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten 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 exceeds 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 Rupees 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 Rupees. 20,000. __________________________________________________________________________________________________________________The amount of ncome-tax computed in accordance with the preceding provisions of this Paragraph shall he increased by a surcharge lor purposes of the Union calculated at the rate of ten percent, of such income-tax. Paragraph C Sub-paragraph I In the case of every registered firm, not being a ease to which sub-paragraph II of this paragraph applies.--- Rates of income-tax__________________________________________________________________________________________________________________ (1) where the total income does not exceed Nil: Rs. 10,000 (2) where the total income exceeds Rs. 10,000 5 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. 750 plus 7 percent of the amount by which but does not exceed Rs 50,000 the total income exceeds Rupees 25,000: (4) where the total income exceeds Rs. 50,000 Rs. 2,500 plus 15 percent of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 50,000: (5) where the total income exceeds Rs. 1,00,000 Rs. 10,000 plus 24 percent of the amount by which the total income exceeds Rupees 1,00,000. __________________________________________________________________________________________________________________Surchare on income-tax The amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the Union calculated the rate of ten percent 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 percent of such total income,- 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 7 percent of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rupees 25,000; (4) where the total income exceeds Rs. 50,000 Rs. 2,350 plus 13 percent of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 50.000; (5) where the total income exceeds Rs. 1,00,000 Rs. 8,850 plus 22 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 this sub-paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten percent 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) 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 ten percent of such income-tax. Paragraph E In the case of a company,--- Rates of income-tax I. In the case of a domestic company.--__________________________________________________________________________________________________________________ (1) where the company is a company 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 55 percent of the total income; income exceeds Rs. 1,00,000 (2) where the company is not a company in which the public are substantially interested.- - (i) in the case of an industrial company,-- (a) where the total income 55 percent, of the total income; does not exceed Rs. 2.00.000 (b) where the total income 60 percent of the total income: exceeds Rs. 2,00,000 (ii) in any other case 65 percent of the total income; __________________________________________________________________________________________________________________Provided that - (i) the income-tax payable by a domestic company. being a company in which the public are substantially interested, the total income of which exceeds Rs. 1,00.000. shall not exceed the aggregate of --- (a) the income-tax which would have been payable by the company if its total income had been Rs. 1.00.000 (the income of Rs. 1,00.000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company), and - (b) eighty percent of the amount by which its total income exceeds Rupees 1.00,000: (ii) the income-tax payable by a domestic company, not being a company in which the public are substantially interested, which is an industrial company and the total income of which exceeds Rs. 2.00.000. shall not exceed the aggregate of-- (a) the income-tax which would have been payable by the company if its lotal income had been Rs, 2,00,000 (the income of Rs. 2.00.000 .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 Rupees 2,00.000, II. In the case of a company other than a domestic company.-- (i) on so much of the total income .is consists of-- (a) royalties received from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March. 1961 but before the 1st day of April. 1976. or (b) fees for rendering technical services received from an Indian concern in pursuance of an agreement made by it with the Indian concern after the 29th day of February, 1964 but before the 1st day of April. 1976. and where such agreement has. in 50 percent; either case been approved by the Central Goverment (ii) on the balance, if any. of the total income 70 percent Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge calculated at the rate of seven and a half percent of such income-tax. PART II Rates of deduction of tax at source in certain cases In every ca.sc in which under the provisions of sections 193-.194194A-,194B-.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 following rates :- Income-tax__________________________________________________________________________________________________________ Rate of Rate of income-tax surcharge __________________________________________________________________________________________________________ 1. In the case of a person other than company - (a) where the person is resident in India- (i) on Income by way of interest 10 percent Nil; other than "Interest on securities" (ii) on income by way of winnings 30 percent 3 percent: from lotteries and crossword puzzles (iii) on income by way of winnings 30 percent 3 percent; from horse races (iv) on income by way of insurance 10 percent NiL commission (v) on income by way of interest Payable on 10 percent Nil: (A) any security, other than a tax-free security, of the Central or a State Government: (B) any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a Central State or Provincial Act: (C) any debentures issued by a . company where such debentures are listed in a recognized stock exchange in India in accordance ^ with the Securities Contracts (Regulation)Act. 1956 (42 of 1956) and any rules made thereunder. (vi) on any oilier income (excluding 20 percent 2 percent; interest payable on a tax-free security) (b) where the person is not resident in India (i) on the whole income (excluding income-lax at 30 percent and surcharge at 3 per interest payable on lax-tree 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 I of Paragraph A of Part III of this Schedule. if such income had been the total income. whichever is higher. (ii) on income by way of interest 15 percent 1.5 percent payable on tax-free security 2. In the case of a company-- (a) where the company in a domestic company - (i) on income by way of interest 20 percent 0.5 percent other than "Interest on securities." (ii) on any other income (excluding 21.5 percent, 0.5 percent interest payable on a tax-free security) (b) where the company is not a domestic company--- (i) on income by way of dividends 2.5 percent Nil: payable by any domestic company (ii) on income by way of royally 40 percent; Nil: payable by an Indian concern in pursuance of an agreement made by it with the Indian concern after the 31st day of March, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copright in any book on a subject referred to in the proviso to sub-section (1A) of Section 115A of the Act. to the Indian concern (iii) on income by way of royalty (not being royalty of the nature referred to in sub-item (b) (ii) payable by an Indian concern in pursuance of an agreement made by it with the Indian concern and which has been approved by the Central Government.--- (A) where the agreement is made after 50 percent 1.25 percent the 31st day of March. 1961 but before the 1st day of April. 1976 (B) where the agreement is made after 20 percent Nil: the 31st day of March. 1976- ( I ) on so much of the amount of such income as consists of lump sum consideration for the transfer outside India of or the imparting of information outside India in respect of any data. documentation. drawing or specification relating any patent, invention Model. design, secret formula or process, or trade mark or similar property (2) on the balance. if any. of 40 percent Nil. such income (iv) on income by way of fees for technical services payable by an Indian concern in pursuance of an agreement made by it with the Indian concern and which has been approved by the Central Government-- (A) where the agreement is made 50 percent 1.5 percent after the 29th day of February. 1964 but before the 1st day of April. 1976 (U) where the agreement is made 40 percent Nil; after the 31st day of March. 1976 (v) on income by way of interest payable 44 percent 1.1 percent; on a tax-free security (vi) on any other income 70 percent 1.75 percent __________________________________________________________________________________________________________PART III Rates for calculating for 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 80E-and computing "advance tax". In cases in which income-tax has to be calculated under the first proviso to sub-section (5) of section 132 of the Income-tax Act-or charged under sub-section (4) of section 172-or sub-section (2) of section 174-orsection 175-or sub-section (2) of section 176-of the said Act or deducted under Section 192-of the said Act form income chargeable under the head "Salaries" or deducted under sub-section (9) of section 80F-, 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" (not being "advance tax" in respect of any income chargeable to tax under Chapter XII or Section 164-orSection 164A-orSection 167A of the Income-tax Act-at the rates as specified in that Chapter or section), shall be so calculated, charged, deducted or computed at the following rate or rates. Paragraph A Sub-paragraph I In the case of every individual or Hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not. or every artificial juridical person referred to in sub-clause (vii) of cl. (31) of section 2 of the Income-lax 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. 15.000 (2) where the total income exceeds Rs. 15.000 30 percent of the amount by which the total income but does not exceed Rs. 25.000 exceeds Rs. 15.000. (3) where the total income exceeds Rs. 25.000 Rs. 3.000 plus 34 percent of the amount by but does not exceed Rs. 30.000 which the total income exceeds Rupees 25.000; (4) where the total income exceeds Rs. 30.000 Rs. 4.700 plus 40 percent of the amount by but does not exceed Rs. 50.000 which the total income exceeds Rupees 30.000: (5) where the total income exceeds Rs. 50.000 Rs. 12,700 plus 50 percent of the amount by but does not exceed Rs. 70,000 which the total income exceeds Rupees 50,000: (6) where the total income exceeds Rs. 70,000 Rs. 22.700 plus 55 percent of the amount by but does not exceed Rs. 1.00.000 which the total income exceeds Rupees 70.000; (7) where the total income exceeds Rs. 1,00.000 Rs. 39.200 plus 60 percent of the amount by which the total income exceeds Rupees 1.00,000. Surecharge on income-tax __________________________________________________________________________________________________________The amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten percent of such income-tax. Sub-Paragraph II In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of April. 1979 exceeds Rs. 15,000,- Rates of income-tax__________________________________________________________________________________________________________ (1) where the total income does not exceed Nil. Rs. 8,000 (2) where the total income exceeds Rs. 8.000 22 percent of the amount by which the total income but does not exceed Rs. 15,000 exceeds Rs. 8.000-. (3) where the total income exceeds Rs. 15,000 Rs. 1.540 plus 27 percent of the amount by but does not exceed Rs. 20.000 which the total income exceeds Rupees 15,000. (4) where the total income exceeds Rs. 20,000 Rs. 2.890 plus 35 percent of the amount by but does not exceed Rs. 25.000 which the total income exceeds Rupees 20.000. (5) where the total income exceeds Rs. 25.000 Rs. 4,640 plus 40 percent of the amount by but does not exceed Rs. 30.000 which the total income exceeds Rupees 25,000; (6) where the total income exceeds Rs. 30.000 Rs. 6,640 plus 50 percent of the amount by but does not exceed Rs. 50.000 which the total income exceeds Rupees 30,000: (7) where the total income exceeds Rs. 50.000 Rs. 16.640 plus 60 percent of the amount by which the total income exceeds Rupees 50.000. Provided that for the purposes of this sub-paragraph.--- __________________________________________________________________________________________________________(i) no income-lax shall he payable on a total income not exceeding Rs. 12.000; (ii) where the total income exceeds Rs. 12.000 but does not exceed Rs. 17.610. the income-tax payable thereon shall not exceed forty percent of the amount by which the total income exceeds Rs. 12.000. Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten percent of such income-lax. Paragraph B In the case of every co-operative society.-- Rates of income-tax__________________________________________________________________________________________________________ (1) where the total income does not 15 percent of the total income: exceed 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 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 Rupees 20.000; __________________________________________________________________________________________________________Surchage on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten percent of such income-tax. Paragraph C .Sub-paragraph I In the case of every registered firm, not being a case to which sub-paragraph. II of this Paragraph applies Rates of income-tax__________________________________________________________________________________________________________ (1) where the total income does not exceed Nil; Rs. 10.000 (2) where the total income exceeds Rs. 10,000 5 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. 750 plus 7 percent of the amount by which but does not exceed Rs. 50.000 the total income exceeds Rupees 25,000; (4) where the total income exceeds Rs 50.000 Rs. 2,500 plus 15 percent of the amount by which but does not exceed Rs. 1.00,000 the total income exceeds Rupees 50,000; (5) where the total income exceeds Rs. 1.00.000 Rs. 10.000 plus 24 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 this sub-paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten percent of such income-tax. Sub-Paragraph II In the case of every registered firm whose total income includes income derived from a profession curried on by it and the income so included is not less than fifty one percent of such total income,--- 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 lotal income but does not exceed Rs. 25,000 exceeds Rs. 10,000: (3) where the total income exceeds Rs. 25,000 Rs. 6,00 plus 7 percent of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rupees 25.000; (4) where the total income exceeds Rs. 50,000 Rs. 2.350 plus 13 percent of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 50.000: (5) where the total income exceeds Rs. 1,00,000 Rs. 8,850 plus 22 percent of the amount by which the total income exceeds Rupees 1.00.000. __________________________________________________________________________________________________________Surcharge of income-tax The amount of income-tax computed in accordance with the preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of ten percent 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) of section 183-of the income-tax Act.--- Paragraph D In the case of every total authority.- Rates of income income-tax On the whole of the total income 50 percent Surcharge on income-tax The amount of income-tax computed at the rates hereinbefore specified shall be increased by a surcharge for purposes of the Union calculated at the rate of ten percent of such income-tax. Paragraph E In the case of a company.-- Rates of income-tax__________________________________________________________________________________________________________ 1. In the case of a domestic company, (1) where the company is a company in which the public are substantially interested.- (i) in a case where the total income 45 percent of the total income; does not exceed Rupees 1,00,000, (ii) in a case where the total income 55 percent of the total income; exceeds Rs. 1,00,000 (2) where the company is not a company in which the public are substantially interested, (i) in the case of an industrial company.--- (a) where the total income does 55 percent of the total income; not exceed Rupees 2,00.000 (b) where the total income 60 percent of the total income; exceed Rs. 2,00,000 (ii) in any other case 65 percent of the total income; __________________________________________________________________________________________________________Provided that- - - (1) the income-tax payable by a domestic company, being a company in which the public are substantially interested the total income of which exceeds Rs. 1,00,000. shall not exceed the aggregate of - - - (a) the income-tax which would have been payable by the company if its total income had been Rs. 1,00,000 (the income of Rs. 1,00.000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and (b) eighty percent of the amount by which its total income exceeds Rs. 1,00,000; (ii) the income-tax payable by a domestic company, not being a company in which the public are substantially interested, which is an industrial company and the total income of which exceeds Rs. 2.00,000 shall not exceed the aggregate of - (a) the income-tax which would have been payable by the company if its total income had been Rs. 2.00.000 (the income of Rs. 2,00,000 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. 2,00,000. 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 but before the 1st day of April, 1976. 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 but before the 1st jay of April. 1976, and where such agreement has in 50 percent; either case, been approved by the Central Government. (ii) on the balance, if any of the 70 percent total income __________________________________________________________________________________________________________Surcharge on income-tax The amount of income-tax computed in accordance with) the preceding provisions of this Paragraph shall be increased by a surcharge calculated at the rate of two and a half percent of such income-tax. PART IV (See section 2 (7) (e)-] RUIES FOR COMPUTATION OF NET AGRICULTURAL INCOME Rule 1. -- 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 section 57-to59-of that Act shall so far as may be, apply accordingly : Provided that sub-section (2) of section 58shall apply subject to the modification that the reference to Section 40Atherein shall be construed as not including a reference to sub-sections (3) and (4) of section 40A. Rule 2. -- Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of Clause (1) of section 2of 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 (e)] shall be computed as if it were income chargeable to income-tax under that Act under the head "Profits and
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