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FINANCE ACT, 1990
12 of 1990
An Act to give effect to the financial proposals of the Central Government for the financial year 1990-91. Be it enacted by Parliament in the Forty-first Year of the Republic of India as follows :
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The Finance Act, 1990
(2) Save as otherwise provided in this Act, sections 2 to 61 shall be deemed to have come into force on the 1st day of April, 1990.
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, 1990, income-tax shall be charged at the rates specified in Part I of the First Schedule and shall be increased,---
(a) in the cases to which Paragraphs A, B, C, and D of that Part apply, by a surcharge for purposes of the Union; and
(b) In the cases to which Paragraph E of that Part applies, by a surcharge, calculated in each case in the manner provided therein.
(2) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding six hundred rupees, in addition to total income, and the total income exceeds,-
(i) in a case to which they said Sub-Paragraph I applies, eighteen thousand rupees, and
(ii) in a case to which they said Sub-Paragraph II applies, twelve thousand rupees, then,---
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say. as if the net agricultural income were comprised in the total income after,---
(i) in a case to which they said Sub-Paragraph I applies, the first eighteen thousand rupees, and
(ii) in a case to which they said Sub-Paragraph II applies, the first twelve thousand rupees, of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and
(b) the income-tax chargeable shall be calculated as follows: --
(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in Sub -Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income:
(ii) the net agricultural income shall be increased---
(A) in a case to which they said Sub-Paragraph I applies, by a sum of eighteen thousand rupees: and
(B) in a case to which they said Sub-Paragraph II applies, by a sum of twelve thousand rupees, and the amount of income-tax shall be determined in respect of the net .a gricultural income as so increased at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if the net agricultural income as so increased were the total income;
(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub- clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income: . Provided that the amount of income-tax so arrived at shall, in the case of every person having a total income exceeding fifty thousand rupees is increased by a surcharge for purposes of the Union calculated at the rate of eight 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 Chapter XII -A or section or sub- section (1A) of section 161-orsection 164-orsection 164A-orsection 167B 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 (I) or the rates as specified in that Chapter or section, as the case may be. Provided that in respect of any income chargeable to tax under section 115B-orsection 115BB of the Income-tax Act-, the income-tax computed under section 115Borsection 115BB -shall be increased by a surcharge for purposes of the .Union calculated at the rate of eight per, cent. of such income tax.
(4) In cases in which tax has to be deducted under sections 193-,section 194-,section 194A-,section 194B-,section 194BB-,section 194D-andsection 195 of the Income-tax Act -at the rates in force, the deduction shall be made at the rates specified in Part II of the First Schedule and shall be increased,---
(a) in the cases to which the provisions of sub -item (a) of item I of that Part, apply; by a Surcharge for purposes of the union; and
(b) in the cases to which the provisions of sub-item (a) of item 2. of that Part apply, by a surcharge, calculated in each case in the manner provided therein.
(5) In cases in which tax has to be deducted under section 194C of the Income-tax Act -, the deduction shall be made at the rates specified in that section and shall be increased by a surcharge for purposes of the Union calculated at the rate of eight percent of such deduction.
(6) In cases in which tax has to be collected under section 206C of the Income-tax Act -, the collection shall be made at the rate specified in that section and shall be increased by a surcharge for purposes of the Union calculated at the rate of eight percent of such collection.
(7) Subject to the provisions of sub-section (8), in cases in which income-tax has to be calculated under the first proviso to sub -section (5) of section 132 of the Income-tax Act-or charged under sub-section (4) 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 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 and such tax as reduced by the rebate of income-tax calculated under Chapter VIII-A 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 : Provided that in cases to which the provisions of Chapter XII or Chapter XIIA or sub -section (1A) of section 161-or section 164-orsection 164A-orsection 167B of the Income-tax Act-apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be; Provided further that in respect of any income chargeable to tax under section 115B of the Income-tax Act-, the "advance tax" computed under the first proviso shall be increased by a surcharge for purposes of the Union calculated at the rate of eight percent of such "advance tax".
(8) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income, exceeding six hundred rupees, in addition to total income and the total income exceeds,---
(i) in a case to which they said Sub-Paragraph I applies, twenty-two thousand rupees, and
(ii) in a case to which they 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 twenty -two thousand rupees, and
(ii) in a case to which they said Sub-Paragraph II applies, the first twelve thousand rupees, of the total income but without being liable to tax], only for the purpose of calculating, charging or computing such income-tax or. is the case may be, "advance tax" in respect of the total income; and
(b) such income-tax or, as the case may be, "advance tax" shall be so calculated, charged or computed as follows : ---
(i) the total income and the net agricultural income shall be aggregated and. the amount of income-tax or "advance tax" shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub- Paragraph II of the said Paragraph A, as if such aggregate income were the total income;
(ii) the net agricultural income shall be increased,---
(A) in a case to which they said Sub-Paragraph I applies, by a sum of twenty -two thousand rupees; and
(B) in a case to which they said Sub-Paragraph II applies, by a sum of twelve thousand rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Sub-Paragraph I or, as the case may be, the said Sub-Paragraph II, as if the net agricultural income as so increased were the total income;
(iii) the amount of income-tax or "advance tax" determined in accordance with sub- clause (i) shall be reduced by the amount of income-tax or, as the case may be. "advance tax" determined in accordance with sub-clause
(ii) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income. Provided that the amount of income-tax or "advance tax" so arrived at shall, in the case of every person having a total income exceeding seventy- five thousand rupees be increased by a surcharge for purposes of the Union calculated at the rate of eight 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.
(9) For the purposes of this section and the First Schedule. (a) "company in which the public are substantially interested" means a company within the meaning of clause
(18) of section 2 of the Income-tax Act-. and includes, a subsidiary of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year;
(b) "domestic company" means an Indian company, or any other company which, in respect of its income liable to income-tax under the Income-tax Act for the assessment year commencing on the 1st day of April, 1990, 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 the Act:
(c) "insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance);
(d) "investment company" means a company whose gross total income (as defined insection 80B of the income-tax Act-) consists mainly of income which is chargeable under the heads "Income from house property", "Capital gains" and "Income from other sources" or of income by way of interest on securities: (e) "net agricultural income", in relation to a person means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;
(f) "tax-free security" means any security of the Central Government issued or declared to be income-tax free, or any security of a State Government issued income-tax free, the income-tax whereon is payable by the State Government;
(g) "trading company" means a company whose business consists mainly in dealing in goods or merchandise manufactured, produced or processed by a person other than that company and whose income attributable to such business included in its gross total income (as defined in section 80B of the Income-tax Act -) is not less than fifty one percent of the amount of such gross total income;
(h) all other words and expressions used in this section or in the First Schedule but not defined in this sub - section and defined in the Income-tax Act, shall have the meanings, respectively assigned to them in that Act.
SECTION 03: 3-50
Amended the following sections of the Income-tax Act which are being incorporated in the Principal Act and hence not printed here at. Sections affected are; 2; 6; 10; 28, 32-A, 32-AB; 33-A; 33-AB (Subst.); 34; 35-CCB: 43-B: 44-AC' 45; 80-CCA; 80-CCB (ins.); 80-DD (ins); 80-GGA; 80-HH; 80-HHA: 80-HHD; 80-1; 80-L: 80-M (Subst.); 80-R; 80-RR; 80-RRA; Chapter VIII; 87(ins.): 88(ins.): 115-1: 115-J; 139; 139-A: 142; 143; 145: 151; 194-F (ins.); 246; 271-BB(ins.); 271-C; 271-D; 271-E, 275-1; Chap XXII-B (omitted); 288: section 50 made consequential amendments to certain sections.
SECTION 51: AMENDMENT OF SECTION 2
--- In section 2 of the Wealth-tax Act, 1957 (hereinafter referred to as the Wealth-tax Act), in clause (ob), for the word and figures "section 16", the words, brackets and figures "sub-section (3) or sub-section (5) of section 16" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1989, namely:---
SECTION 52: AMENDMENT OF SECTION 5
--- In section 5 of the Wealth-tax Act, in sub-section (1), in clause (xxviic), with effect from the 1st day of April, 1991,---
(i) after the words "State Government", the words or a public sector company" shall be inserted,---
(ii) the following Explanation shall be inserted at the end, namely;---
"Explanation :- - For the purposes of this clause, "public sector company" ,meai)s any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956; -
SECTION 53: AMENDMENT OF SECTION 10
- In section l of the Wealth-tax Act, in sub-section (2), in clause (a), for the figures "16, 17", the figures and letters "14, 15, 16, 17. 17B", shall be substituted.
SECTION 54: AMENDMENT OF SECTION 16
- In section 16ofthe Wealth-tax Act,- , '
(a) after sub-section (I A), the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1989, namely:- , "(1B) Where an assessee furnishes a revised return under section 15 after the issue of an intimation, or the grant of refund, if any, under sub-section D of this section; the provisions of sub-sections (1) and, (IA) of this section, shall apply in relation to such revised return and- ,('
(i) the intimation already sent for any wealth-tax, additional wealth-tax or interest shall be amended on the basis of the said revised return and where any amount payable by way of wealth-tax, additional wealth-tax or interest specified in the said intimation has already been paid by the assessee then, if any, such amendment has the effect of;---
(a) enhancing the amount already paid, the intimation amended under this clause shall be sent to the assessee specifying the excess amount payable by him and such intimation shall be deemed to be a notice of demand issued under section 30 and all the provisions of this Act shall apply accordingly;-
(b) reducing the amount already paid, the excess amount paid shall be refunded to the assessee;
(ii) the amount of the refund already granted shall be enhanced or reduced on the basis of the said revised return and where the amount of refund already granted is,--
(a) enhanced, only the excess amount of refund due to the assessee shall be paid to him:
(b) reduced, the excess amount so refunded shall be deemed to be the tax payable by the assessee and an intimation shall be sent to the assessee specifying the amount so payable, and such intimation shall be deemed to be a notice of demand issued under section 30 and all the provisions of this Act shall apply accordingly;-- Provided that an assessee, who has furnished a revised return under section 15 after the service upon him of the intimation under sub-section (1) of this section, shall be liable to pay additional wealth-tax in relation to the adjustments made under the first proviso to clause (a) of sub-section (1) and specified in the said intimation, whether or not he has made the said adjustments in the revised return".
(b) in sub-section (4), in. clause (i), for the words "before the end of the relevant assessment year", the words, brackets and figures "within the time allowed under sub-section (1) of section 14" shall be substituted.
SECTION 55: AMENDMENT OF SECTION 17
--- In section 17 of the Wealth-tax Act, in sub-section (1B), in clause (a), for the words "except by an Assessing Officer of the rank of Assistant, Commissioner or Deputy Commissioner", the words "by an Assessing Officer, who is below the rank of Assistant commissioner, unless the Deputy Commissioner is satisfied on the reasons recorded by such Assessing Officer that it is a fit case for the issue of such notice" shall be substituted.
SECTION 56: INSERTION OF NEW SECTION 35EEE
--- After section 35EE of the Wealth-tax Act, the following section shall be inserted, namely:--
"35EEE. Contravention of order made under second proviso to sub-section (1) or sub- section (3A) of section 37A. --- If a person contravenes any order referred to in the second proviso to sub-section (1) or sub-section (3A) of section 37A, he shall be punishable with rigorous imprisonment for a term which may extend to two years and with fine".
SECTION 57: AMENDMENT OF SECTION 35K
--- In section 35K of the Wealth-tax Act, in sub-section (1), for the words, figures and letters "the assessment year commencing on the 1st day of April, 1988, or any earlier assessment year", the words "an assessment year" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1989.
SECTION 58: AMENDMENT OF SCHEDULE III
--- In the Wealth-tax Act, in Schedule III, in Part G,---
(a) for rule 18, the following rule shall be substituted, namely;---
"18. Valuation of jewellery.--- (1) The value of the jewellery shall be estimated to be the price which it would fetch if sold in the open market on the valuation date (hereafter in this rule referred to as fair market value).
(2) The return of net wealth furnished by the assessee shall be supported by,-
(i) a statement in the prescribed form,, where the value of the jewellery on the valuation date does not exceed rupees five lakhs: ,
(ii) a report of a registered valuer in the prescribed form, where the value of the jewellery on the valuation date exceeds rupees five lakhs.
(3) Notwithstanding anything mentioned in sub-rule (2), the Assessing Officer may, if he is of opinion, that the value of the jewellery declared in the return.-
(a) is less than its fair market value by such percentage or such amount as is prescribed under sub -clause (i) of clause (b) of sub section
(l),of sectionl6A;
(b) is less than its fair market value as referred to in clause (a) of sub -section (1) of section 16A, he may refer the valuation of such jewellery to a Valuation Officer under sub- section (1) of the said section and the value of such jewellery shall be the fair market value as estimated by the Valuation Officer",
(b) in rule 19, in the-opening portion, for the words, brackets and letter "clause (b) of, ' the words, brackets and figure "sub-rule (3) of shall be substituted.
SECTION 59: 59-61
[Amendments incorporated in the Gift-tax Act, 1958]
SECTION 62:
[Amendments incorporated in the Customs Act, 1962]
SECTION 63:
[Amendments incorporated in the Customs Tariff Act, 1975]
SECTION 64: 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 fifty percent of the value of goods as determined in accordance with the provisions of section 14 of the Customs Act.
(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1991 upon such cesser section 6 of the General Clauses Act. 1897, shall apply as if the said sub-section had 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 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 65: AMENDMENT OF ACT 1 OF 1944
--- In the Central Excises and Salt Act, 1944 (hereinafter referred to as the Central Excises Act), after section 37C, the following section shall be inserted, namely:--
"37D. Rounding off of duty, etc.--- The amount of duty, interest, penalty, fine or any other sum payable, and the amount of refund or any other sum due, under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored".
SECTION 66: AMENDMCNT OF ACT 5 OF 1986
--- The Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act), shall be amended in the manner specified in the Third Schedule.
SECTION 67: 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 (not being a notification providing for any exemption for giving credit with respect to, or reduction of duty of excise under the said Act on such goods equal to, any duty of excise under said Act, or the additional duty under section 3 of the Customs Tariff Act, already paid on the raw material or component parts used in the production or manufacturer of such goods), 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, 1991, and upon such cesser section 6 of the General Clauses Act, 1897, shall apply as if the said sub-section had 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 68: AMENDMENT OF ACT 58 OF 1957
--- The Additional Duties of Excise (Goods of Special Importance) Act, 1957 (hereinafter referred to as the Additional Duties of Excise Act), shall be amended in the manner specified in the Fourth Schedule.
SECTION 69: AMENDMENT OF ACT 40 OF 1978
--- In section 3 of the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, in sub-section (1), for the words "fifteen percent" the words "twenty percent" shall be substituted.
SECTION 70: REPEAL OF ACT 12 OF 1953
--- The Khadi and other Handloom Industries Development (Additional Excise Duty on Cloth) Act. 1953, is hereby repealed.
SECTION 71: AMENDMENT OF ACT 13 OF 1989
--- [Amendments incorporated in the Principal Act]
SECTION 72: AMENDMENT OF ACT 6 OF 1898
--- [Amendments would be found incorporated in the (Indian Post Office Act, 1898)]
SCHEDULE 01: THE FIRST SCHEDULE
(See section 2) PART I 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. 18,000 (2) where the total income exceeds Rs. 18.000 20 percent of the amount by which the total income but does not exceed Rs. 25.000 exceeds Rs. 18,000; (3) where the total income exceeds Rs. 25.000 Rs. 1,400 plus 30 percent, of the amount by but does not exceed Rs. 50,000 which the total income exceeds Rupees 25.000; (4) where the total income exceeds Rs. 50.000 Rs. 8.900 plus 40 percent of the amount by but does not exceed Rs. 1,00.000 which the total income exceeds Rupees 50.000; (5) where the total income exceeds Rs. 1.00,000 Rs. 28.900 plus 50 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, in the case of every person having a total income exceeding fifty thousand rupees be increased by a surcharge for purposes of the Union calculated at the rate of eight percent of such income-tax Provided that no such surcharge shall be payable by a non-resident. Sub-Paragraph II In the case of every Hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the l st day of April 1990 exceeds Rs. I8.000. Rates of income-tax (1) where the total income does not exceed Nil; Rs. 12,000 (2) where the total income exceeds Rs. 12,000 25 percent of the amount by which the total income but does not exceed Rs. 20.600 exceeds Rs. 12,000; (3) where the total income exceeds Rs. 20.000 Rs. 2.000 plus 30 percent of the amount by but does not exceed Rs. 40.000 which the total income exceeds Rupees 20,000; (4) where the total income exceeds Rs. 40.000 Rs. 8.000 plus 40 percent of the amount by but does not exceed Rs. 60,000 which the total income exceeds, Rupees. 40,000; (5) where the total income exceeds Rs. 60.000 Rs. 16.000 plus 50 percent of the amount by but does not exceed Rs. 1.00.000 which the total income exceeds Rupees 60.000; (6) where the total income exceeds Rs. 1,00.000 Rs. 36.000 plus 55 percent of the amodnt 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, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of eight percent of such income-lax. Provided that no such surcharge shall be payable by a non-resident. 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 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 Rs. 20.000. Surcharge on income-tax The amount of -income-tax computed in accordance with the preceding provisions of this Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union Calculated at the rate of eight percent of such income-lax. 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 in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of eight 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 Nil: exceed 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, in the case of every person having a total income exceeding fifty thousand rupees. be increased by a surcharge for purposes of the Union calculated at the rate of the eight 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, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of eight 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 50 percent of the total income; which the public are substantially interested.--- (2) where the company is not a company in Which the public are substantially interested--- (i) in the case of trading company or an 60 percent of the total income: investment company (ii) in any other case 55 percent of the total income: II. In the case of a company other than a domestic company.--- (i) on so much of the total income as consists of --- (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March. 1961 but before the 1st day of April, 1976, or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February. 1964 but before the 1st day of April. 1976 and where such agreement has. in either case. been approved by the Central 50 Percent Government (ii) on the balance, if any. of the total income. 65 percent Surcharge on income-tax The amount of income-tax computed in accordance with the provisions of item I of this Paragraph shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge calculated at the rate of eight percent of such income-tax. PART II RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES In every case in which under the provisions of section 193-,section 194-,section 194A-,section 194B-,section 194BB-,section 194D-andsection 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 :--- Rate of Income-tax 1. In the case of a person other than a company --- (a) where the person is resident in India- (i) on income by way of interest other 10 percent; than "Interest on securities" (ii) on income by way of winnings 40 percent; from lotteries and crossword puzzles (iii) on income by way of winnings from 40 percent,; horse races (iv) on income by way of insurance 10 Percent; commission (v) on income by way of interest 10 percent; payable on --- (A) any security, other than a tax-free security, of the Central or a State Government; (B) any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a Central. State or Provincial Act; (C) any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act. 1956 and any rules made there- under. (vi) on any other income (excluding 20 percent' interest payable on a tax-free security) (b) where the person is not resident in India.--- (i) in the case of a non-resident in India.--- (A) on investment income and long- 20 percent; term capital gains (B) on income by way of. interest 15 percent; payable on a tax-free security (C) on income by way of winnings from lotteries and cross-word 40 percent; puzzels (D) on income by way of winnings 40 percent; from horse races (E) on the whole of the other Inc
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