86540
Lawyers Network
103860
Users
630
Cities Serving
114
Law Schools Network
59824
FINANCE ACT, 1993
38 of 1993
13th March, 1991
An act to give effect to the financial proposals of the Central Government for the financial year 1993-94 BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called the Finance Act, 1993.
(2) Save as otherwise provided in this Act. Section 2 to 42(except section 14) shall be deemed to have come into force on the 1st day of April. 1993.
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, 1993. income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax as reduced by the relate of income- tax calculated under Chapter VIII-A of the Income-tax Act, 1961-(hereinafter referred to as the Income-tax Act) shall be increased.-"
(a) in the cases to which Paragraphs A, B, C and D of that Part apply by a surcharge for purposes of the Union: and
(b) in the cases to which Paragraph E of that Part applies, by a surcharge calculated in, each case in the 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 the said Sub-Paragraph I applies, twenty-eight thousand rupees, and
(ii) in a case to which the said Sub-Paragraph II applies, eighteen thousand rupees, then,-
(a) the net agricultural income shall be taken into account,, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after,
(i) in a case to which the said Sub-Paragraph I applies, the first twenty -eight thousand rupees, and
(ii) in a case to which the said Sub -Paragraph II applies, the first eighteen thousand rupees, of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and
(b) the income-tax chargeable shall be calculated as follows: -
(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in Sub -Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income:
(ii) the net agricultural income shall be increased.---
(A) in a case to which the said Sub-Paragraph I applies, by a sum of twenty -eight thousand rupees: and
(B) in a case to which the said Sub -Paragraph II applies, by a sum of eighteen 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;
(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income: Provided that the amount of income-tax so arrived at. as reduced by the rebate of income-tax calculated under Chapter VIII-A of the Income-tax Act, shall, in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve 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 sub-section (IA) of Section 161orSection 164orSection 164AorSection 167B of the Income-tax Act apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by subsection
(1) or the rates as specified in that Chapter or section, as the case may be: Provided that the amount of income-tax computed in accordance with the provisions of section 12shall be increased by a surcharge for purposes of the Union or surcharge as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedules:--- Provided further that in respect of any income chargeable to tax under section 115B or section 115BB of the income - tax Act.---
(a) the income-tax computed under Section 115Bshall be increased by a surcharge calculated at the rate of fifteen percent of such income-tax: and
(b) the income-tax computed under Section 115BBshall be increased.---
(i) in the case of a person other than a company, being a resident in India, by a surcharge for purposes of the Union calculated at the rate of twelve percent of such income-tax: and
(ii) in the case of a domestic company, by a surcharge calculated at the rate of fifteen percent of such income-tax.
(4) In cases in which tax has to be deducted under Sections 193, 194, 194-A. 194-B, 194-BB. 194-D and 195 of the Income-tax Act at the rates in force, the deduction shall be made at the rates specified in Para II of the First Schedule and shall be increased,---
(a) in the cases to which the provisions of sub-item (a) of item I of that Part apply, by a surcharge for purposes of the union: and
(b) in the cases to which the provisions of sub -item (a) of item 2 of that Part apply, by a surcharge, calculated in each case in the manner provided therein.
(5) In cases in which tax has to be deducted under section 194C, 194EE. 194F, 194G of the income-tax Act, the deduction shall be made at the rates specified in those sections and shall be increased by a surcharge for purposes of the Union calculated at the rate of twelve percent of such deduction. Provided that in the case of an assessee. being a domestic company. the provisions of this sub-section shall have effect, as if for the words "twelve percent", the words "fifteen percent", had been substituted.
(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 twelve percent of such collection. Provided that in the case of a buyer, being a domestic company, the provisions of this sub-section shall have effect, as if for the words "twelve percent", the words "fifteen percent" had been substituted.
(7) Subject to the provisions of sub-section (8), in cases in which income-tax has to be calculated under the first proviso to the sub-section (5) of Section 132 of the Income-tax Actor charged under sub-section (4) of section 172or sub -section (2) of Section 174orSection 175or sub-section (2) of Section 176of the said Act or deducted under Section 192of the said Act from income chargeable under the head "Salaries" or in which the "advance tax" payable under XVI I-C of the said Act has to be computed, at the rate or rates in force, such income- tax or, as the case may be, "advance tax" shall be\so calculated, charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and such tax as reduced by the rebate of income-tax calculated under Chapter VIII-A of the said Act shall be increased,--
(a) in the cases to which Paragraphs A, B, C. and D of that Part apply, by a surcharge for purposes of the Union: and
(b) in the cases to which Paragraph E of that Part applies, by a surcharge, calculated in each case in the manner provided therein: Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or sub - section (IA) of section 161 or Section 164 or Section 164 -A or Section 167-B of the Income- tax Act apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be: Provided further that the amount of income-tax computed in accordance with the provisions of section 112shall be increased by a surcharge for purposes of the Union or surcharge as provided in Paragraph A, B, C, D or E, as the case may be, of Part III of the First Schedule : Provided also 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 fifteen 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, thirty thousand rupees, and
(ii) in a case to which they said Sub-Paragraph II applies, eighteen thousand rupees, then. in calculating income-tax under the first proviso to sub-section (5) of Section 132 of the Income-tax Actor in charging income-tax under sub-section (2) of Section 174 or Section 175or sub-section (2) of Section 176of the said Act or in computing the "advance tax" payable under Chapter XVI I-C of the said Act, at the rate or rates in force, -
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after, ---
(i) in a case to which the said Sub-Paragraph I applies, the first thirty thousand rupees, and
(ii) in a case to which the said Sub -Paragraph II applies, the first eighteen 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 sue!) 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 thirty thousand rupees, and
(B) in a case to which they said Sub -Paragraph II applies, by a sum of eighteen thousand rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Sub-Paragraph I or, as the case may be, the said Sub-Paragraph II as if the net agricultural income as so increased were the total income:
(iii) the amount of income-tax or "advance tax" determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, "advance tax" determined in accordance with sub clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income". Provided that the amount of income-tax or "advance tax" so arrived at, as reduced by the rebate of income-tax calculated under Chapter VIII-A of the said Act shall, in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve 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,
1993, 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 194of 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) "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;
(e) "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;
(f) all other words and expression 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: 3-37
Amended the following sections of the Income-tax Act, which are being incorporated in the Principal Act, hence not printed hereat. Sections affected are: 10; 10A; 1OB; 11; 16; 17; 35; 36; 44C; 80DD; 80G: 80HHE; 801A; 80L: 80M; 80P; 80V: 88B; 115AD (ins.) 115K, 115N: 143; 194; 196B; 196C: 196D (ins.); 197; 198; 199; 200; 202; 203A; 205 CHAP. XIXB - (ins.): 253, 269LJC. 269UD; 269UE; 273A; Eighth Sch. (ins.)]
SECTION 38: AMENDMENT OF SECTION 2
In Section 2 of the Wealth-tax Act, 1957(hereinafter referred to as the Wealth-tax Act), in clause (3a), in the Explanation, in clause (b), the words "or any land held by the assessee as stock-in-trade for a period of three years from the date of its acquisition by him" shall be inserted at the end with effect from the 1st day of April, 1994.
SECTION 39: AMENDMENT OF SECTION 5
In section 5 of the Wealth-tax Act in sub-section (1); after clause (v), the following clause shall be inserted with effect from the 1st day of April, 1994, namely :--- "(vi) one house or part of a house belonging to an individual or a Hindu undivided family",
SECTION 40: AMENDMENT OF SECTION 18B
In section 18B of the Wealth-tax Act, with effect from the 1st day of June, 1993,---
(a) in sub-section (1), the words "Chief Commissioner or" shall be omitted:
(b) in sub-section (2), for the words "the Chief-Commissioner or Commissioner, except with the previous approval of the Board", the words "the Commissioner except with the previous approval of the Chief Commissioner or Director-General, as the case may be "shall be substituted;
(c) in sub-section (4) the words "Chief Commissioner or" shall be omitted.
SECTION 41: 41-42
(Amendments Incorporated in the Gift-tax Act 19581
SECTION 43:
[Amendment incorporated in the Customs Act. 1962]
SECTION 44:
[Amendment incorporated in the Customs Tariff Act. 1975]
SECTION 45: AMENDMENT OF ACT 1 OF 1944
" In The Central Excises and Salt Act, 1944,"
(1) in section 35B.---
(a) in sub-section (1), in the second proviso, for the words "ten thousand rupees", the words "fifty thousand rupees" shall be substituted:
(b) for sub-section (6), the following sub -section shall be substituted, namely:--- "(6) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, in the case of an appeal made on or after the 1st day of June, 1993, irrespective of the date of demand of duty or of levy of penalty in relation to which the appeal is made, be accompanied by a fee of,---
(a) where the amount of duty demanded and penalty levied by any Central Excise Officer in the case to which the appeal relates is one lakh rupees or less, two hundred rupees:
(b) where the amount of duty demanded and penalty levied by any Central Excise Officer in the case to which the appeal relates is more than one lakh rupees, one thousand rupees: Provided that no such fee shall be payable in the case of an appeal referred to in sub-section
(2) or a memorandum of cross-examinations referred to in sub-section (4)".
(2) in section 35D, in sub -section (3), for the words "fifty thousand rupees", the words "one lakh rupees" shall be substituted.
SECTION 46: AMENDMENT OF ACT 5 OF 1986
The Central Excise Tariff Act, 1985(hereinafter referred teas' the Central Excise Tariff Act) shall be amended in the manner specified in the Third Schedule.
SCHEDULE 01: SCHEDULE
PART 01: INCOME-TAX
Paragraph A Sub-Paragraph I In the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial jurisdical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Actnot being a case of 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. 28,000 (2) where the total income exceeds Rs. 28,000 20 percent of the amount by which the total income but does not exceed Rs. 50,000 exceeds Rs. 28,000: (3) where the total income exceeds Rs. 50.000 Rs. 4,400 plus 30 percent of the amount by which but does not exceed Rs. 1.00,000 the total income exceeds Rs. 50,000; (4) where the total income exceeds Rs. 1.00.000 Rs. 19,400 plus 40 percent of the amount by which the total income exceeds Rs. 1.00.000.Surcharge on Income-tax The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph ofsection 112. shall. - (i) in the case of every individual. Hindu undivided family or association of persons or body of individuals referred to in section 88having a total income exceeding one hundred thousand rupees, be reduced by the amount of rebate of income-tax calculated under that section, and the income-tax as so reduced: (ii) in the case of every person, other than those mentioned in item (i), having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve 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 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, 1993 exceeds Rs. 28,000.- 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 30 percent of the amount by which the total income but does not exceeds Rs. 1.00.000 exceeds Rs. 18.000: (3) where the total income exceeds Rs. 1.00.000 Rs. 24,600 plus 40 percent of the amount by which the total income exceeds Rs. 1.00.000:Surcharge on Income-tax The amount of income-tax computed in accordance with the preceding provisions of this Sub-Paragraph or section 112shall, in the case of every person having a total income exceeding one hundred thousand rupees, be reduced by the amount of rebate of income-lax calculated under Chapter VIII-A and the income- tax as so reduced be increased by a surcharge for purposes of the Union calculated at the rate of twelve percent of such income-tax : Provided that no such surcharge shall be payable by a non-resident. Paragraph B in the case of every co-operative society.- Rates of Income-tax(1) where the total income does not exceed 10 percent, of the total income: Rs. 10,000 (2) where the total income exceeds Rs. 10,000 Rs. 1,000 plus 20 percent of the amount by which but does not exceeds Rs. 20.000 the total income exceeds Rs. 10.000: (3) where the total income exceeds Rs. 20.000 Rs. 3,000 plus 35 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 orsection 112shall, in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve percent of such income-tax: Paragraph C In the case of every firm,- Rate of income-taxOn the whole of the total income 40 percent Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified or in section 112shall, in the case of every firm having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the twelve percent of such income-tax. Paragraph D In the case of every local authority.- Rate of income-tax On the whole of the total income 30 percent Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified or in section 112. shall in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve percent of such income-tax. Paragraph E In the case of a company,- Rates of income-taxI. In the case of a domestic company,- (1) where the company is a company in which 45 percent of the total income; the public arc substantially interested (2) where the company is not a company in 50 percent of the total income; which the public are substantially interested 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 lor 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 Government 50 percent; (ii) in 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 this Paragraph shall, in the case of every person having a total income exceeding seventy-five thousand rupees, be increased by a surcharge calculated at the rate of fifteen percent of such income tax.
PART 02: RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES
In every case in which under the provisions of sections 193, 194, 194A. 194B. 194BB, 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 :-______________________________________________________________________________________________________________ Rate of income-tax ______________________________________________________________________________________________________________ I. 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; J than "Interest on securities" (ii) on income by way of winning from 40 percent; lotteries and crossword puzzles (iii) on income by way of winning from 40 percent; horse races (iv) on income by way of insurance commission 10 percent; (v) on income by way of interest payable on- 10 percent; (A) any security, other 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 recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956and any rules made there under; (vi) on any other income (excluding interest 20 percent; . payable on a tax-free security) (b) where the person is not resident in India- (i) in the case of a non-resident Indian- (A) on investment income and long- 20 percent; term capital gains (B) on income by way of interest pay 15 percent; able on a tax-free security (C) on income by way of winnings from 40 percent; lotteries and crossword puzzles - (D) on income by way of winnings from 40 percent; from house races (E) on the whole of other income income-tax at 30 percent of the amount of income; or; income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III of this Schedule, if such income had been the total income, which is higher; (ii) in the case of any other person- (A) on income by way of interest 15 percent; payable on a tax free security (B) on income by way of winnings 40 percent; from lotteries and crossword ' puzzles (C) on income by way of winnings 40 percent; from horse races (D) on income by way of long-term capital gains,--- (1) in the case of individuals and 20 percent, Hindu undivided families (2) in any other case [except a 30 percent. company referred to in sub item (b) of item 2] (E) on the whole of other income income-tax at 30 percent of the amount of income or income-tax in respect of the income at the rates prescribed in Sub-Paragraph I of Paragraph A of Part III {of this Schedule, if such income had been the total income, whichever is higher; 2. In the case of a company- (a) where the company is a domestic company--- 20 percent; (i) on income by way of interest other than "Interest on securities" (ii) on income by way of winnings from 40 percent; lotteries and crossword puzzles (iii) on income by way of winnings from 40 percent; horse races (iv) on any other income (excluding interest 21.5 percent; payable on a tax-free security-) where the company is not a domestic company--- (i) on income by. way of dividends pay- 25 percent; able by any domestic company (ii) on income by way of winnings from 40 percent: lotteries and crossword puzzles (iii) on income by way of winnings 40 percent; from horse races (iv) on income by way of interest payable 25 percent: by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (v) on income by way of royalty payable 30 percent; by 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. 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a license) in respect of copyright in any book on a subject referred to in the proviso to sub- section (IA)of Section 115A of the Income-tax Act to the Indian concern or in respect of any computer software referred to in the second proviso to sub- section (IA)of section 115A of the Income-tax Act to person resident in India (vi) on income by way of royalty (not being royalty of the nature referred to in sub- item (b) (v) payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian Concern, the agreement is a approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force. of the Government of India, the agreement is in accordance with that policy--- (A) where the agreement is made after50 percent; the 31st day11 of March, 1961 but before the 1st day of April, 1976 0. (B) where the agreement is made after30 percent A : the 31st day of March. 1976--- (vii) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates lo a matter included in the industrial policy. for the time being in force, of the Government of India, the agreement is in accordance with that policy--- (A) where the agreement is made after 50 percent, the 29th day of February. 1964 but before the 1st day of April. 1976 (B) where the agreement is made 30 percent; after the 31st day of March. 1976 (viii) on income by way of interest payable 44 percent: on a tax-free security (ix) on income by way of long-term 40 percent: capital gains (x) on any other income 65 percent: Explanation.- For the purposes of item l(b)(i) of this Part, "investment income" and "non-resident Indian" shall have the meanings assigned to them in Chapter XII-A of the Income-tax Act.. Surcharge on income-tax The amount of income-lax deducted in accordance with the provisions of --- (a) sub-item (a) of item I of this Part shall be increased by surcharge for purposes of the Union, calculated at the rate of twelve percent of such income tax, and (b) sub-item (a) of item 2 of this Part shall be increased by a surcharge, calculated at the rate of fifteen percent of such income-tax.
PART 03: RATES FOR CALCULATING OR CHARGING INCOME-TAX IN CERTAIN CASES. DEDUCTING INCOME-TAX FROM INCOME CHARGEABLE UNDER THE HEAD "SALARIES" 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 Actor charged under sub-section (4) of section 172or sub-section (2) of section 174orsection 175or sub-section (2) of section 176of the said Act or deducted under section 192of the said Act form 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" [not being "advance lax" in respect of any income chargeable to tax under Chapter XII or Chapter XII-A or sub-section (IA) of section 161 or Section 164 or Section 164A or Section 167B of the Income-tax Act at the rates as specified in that Chapter or Section or surcharge on such "advance tax" in respect of any income chargeable to tax under section 115). shall be 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 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 lo 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. 30.000 (2) where the total income exceeds Rs. 30,000 20 percent of the amount by which the total income but does not exceed Rs. 50,000 total income exceeds Rs. 30.000. (3) where the total income exceeds Rs. 50.000 Rs. 4.000 plus 30 percent of the amount by which but does not exceed Rs. 1,00.000 the total income exceeds Rupees 50,000. (4) where the total income exceeds Rs. 1.00.000 Rs. 19,000 plus 40 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 or section 112shall.---- (i) in the case of every individual. Hindu undivided family or association of persons or body of individuals referred to in sections 88having a total income exceeding one hundred thousand rupees, be reduced by the amount of rebate of income-tax calculated under Chapter VIII-A. and the income-tax as so reduced. (ii) in the case of every person other than those mentioned in item (i). having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve 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 1st day of April. 1994 exceeds Rs. 30.000.---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 30 percent of the amount by which the total income but does not exceed Rs. 1.00,000 exceeds Rs. 18,000: (3) where the total income exceeds Rs. 1.00,000 Rs. 24.600 plus 40 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 or section 112shall, in the case of every person having a total income exceeding one hundred thousand rupees, be reduced by the amount of rebate of income-tax calculated under Chapter VIII-A and the income- tax as so reduced be increased by a surcharge for purposes of the Union calculated at the 'rate of twelve percent of such income-tax: Provided that no such surcharge shall be payable by a non-resident. Paragraph B In the case of every co-operative society, ---Rates of income-tax (1) where the total income does not exceed 10 percent of the total income. Rs. 10.000 (2) where the total income exceeds Rs. 10.000 Rs. 1,000 plus 20 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. 3,800 plus 35 percent, of the amount by which the total income exceeds Rupees 20.000.Surcharge on Income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph or section 112shall, in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve percent of such income-tax Paragraph C In the case of every firm.--- Rates of income-tax On the whole of the total income 40 percent: Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified or in section 112shall, in the case of every firm having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve percent of such income-tax. Paragraph D in the case of every local authority, --- Rates of income-tax On the whole of the total income 30 percent; Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified or in section 112shall, in the case of every person having a total income exceeding one hundred thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of twelve percent of such income-tax. Paragraph E In the case of a company,--- Rates of income-tax. In the case of a domestic company.---' (1) where the company is a company 45 percent of the total, income; in which 'the public are substantially, interested (2) where the company is not a company 50 percent of the total income: in which the public are substantially; interested II. In the case" of a company other than a domestic company,--- (1) 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 50 percent: either case, been approved by the Central- Government. (ii) on the balance, if any. of the 65 percent total income; Surcharge on income-tax The amount of income-tax computed in accordance with the provisions of this Paragraph or section 12shall, in the cases of every domestic company having a total income exceeding seventy-five thousand rupees, be increased by a surcharge calculated at the rate of fifteen percent of such income-tax.
PART 04: RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME
Rule 1. -Agricultural income of the nature referred to in sub-clause (a) of clause (IA) 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 to 59of 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 (IA) 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 sections 30,31.32,36,37,38,40,40A[other than sub-sections (3) and (4) thereof). 43A. 43B and 43C of the Income-tax Act shall, so far as may be. apply accordingly. Rule 3. - Agricultural income of the nature referred to in sub-clause (c) of clause (IA) 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 lo income-tax under that Act under the head "Income from house property" and the provisions of section 23 to 27of that Act shall, so far as may be, apply accordingly. Rule 4. --- Notwithstanding anything contained in any other provisions of these rules, in a case where the assessee 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 Rules. 1962 and sixty percent of such income shall be regarded as the agricultural income of the assessee. Rule 5. - 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 the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) 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 the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of these assessee. Rule 6. - Where the result of the computation for the previous 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 previous year from any other source of agricultural income: Provided that where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the 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 7. - 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 8. - (1) Where the assessee has in the previous year relevant to the assessment year commencing on the 1st day of April. 1993, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous year relevant to the assessment years commencing on the 1st day of April. 1985, or the 1st day of April, 1986, or the 1st day of April. 1987. or the 1st day of April. 1988. or the 1st day of April. 1989. or the 1st day of April. 1990, or the 1st day of April. 1991. or the 1st day of April 1992 is a loss then for the purposes of sub-section (2) of Section 2of this Act.- (i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April. 1985. to the extent, if any such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April. 1986 or the 1st day of April. 1987. or the 1st day of April. 1988. or the 1st day of April, 1989, or the 1st day of April, 1990. or the 1st day of April. 1991. or the 1st day of April 1992. (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1986. to the extent, if any such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April. 1987. or the 1st day of April. 1988. or the 1st day of April. 1989. or the 1st day of April. 1990. or the 1st day of April. 1991. or the 1st day of April. 1992. (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1987. to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April. 1988. or the 1st day of April, 1989. or the 1st day of April, 1990, or the 1st day of April, 1991. or the 1st day of April 1992, (iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April. 1988. to the extent, if any. such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April. 1989. or the 1st day of April, 1990. or the 1st day of April, 1991. or the 1st day of April. 1992, (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1989. to the extent, if any. such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commenc
86540
103860
630
114
59824