An Act to give effect to the financial proposals of the Central Government for the financial year 1979-80 Be it enacted by Parliament in the Thirtieth Year of the Republic of India as follows :-
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The Finance Act, 1979.
(2) Save as otherwise provided in this Act. sections 2- to 27- and sections 44- , 45- and 46- shall be deemed to have come into force on the 1st day of April, 1979.
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. 1979. income-tax shall be charged at the rates specified in Pant 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, in addition to tolal income, and the total income exceeds ten thousand rupees, then,-
(a) the net agricultural income shall be taken into account, 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 tptal 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 purposes 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 as the case may be, Sub-Paragraph II of the said Paragraph A and the provisions relating to surcharge on income-tax in 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 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 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 seventy per cent of the amount by which the total income exceeds ten 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 fifteen per cent. 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 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- . 194A- . 194B- , 194BB- . 194D- and 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.
(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-seclion (4) of section 172- or sub-section (2) of section 174- or section 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-seclion (9) or in which the "advance tax" payable under Chapter XVll-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 50 calculated. charged, deducted or computed at the rate or rates specified in Part III of She First Schedule : Provided that in cases to which the provisions of Chapter XII or section 164 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 in addition to total income and the total income exceeds ten 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 inconic-tax under sub-seclion (2) of section 174- or section 175- or sub-section (2) of section 176- of the said Act or in computing the "advance tax" payable under Chapter XVIT-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 tile 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 (b) such income-tax or. as the case may be. "advance tax" shall be so calculated, charged or computed as follows :--
may be. "advance tax" in respect of the total income: and
(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: Provided that for the purposes of determining the amount of income-tax or "advance 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-lax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in Sub- paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if the net agricultural income as so increased were the lota! income: Provided that for the purposes of determining the amount of income-tax or "advance lax" in accordance with this sub-clause, the provisions of cluase (i) and clause (ii) of the proviso below Sub-Paragraph I or, as the case may be. Sub-Pragraph 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 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 where the sum so arrived at exceeds sixty per cent. of the amount by which the total income exceeds ten thousand rupees, the excees shall be disregarded;
(iv) the amount of income-lax 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 twenty per cent. 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 lax" 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 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. 1979. 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 per cent. 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 oilier 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: 3-22
- Amended the following sections of the Income-tax Act which have been incor-porated in the principal Act and hence not printed hereat. Sections affected are: 10; 35B; 35CCA; 36; 37; 54E; 64; 80C: 80GGA (ins.): 80J; 80JJA (ins.): 80P; 80QQA (ins.); 208; 245D; 246 S. 22 made consequential amendments in certain sections.
SECTION 23: 23-26
- Amendments to Wealth Tax Act would be found incorporated in the principal Act.
SECTION 27: 27
- Amendments to Gift Tax Act incorporated in the Act. Not printed therefore.
SECTION 28: S. 28 & SCHEDULE SECOND
- Amendments made in the Customs Tariff Act. 1975 SECTION 29: S. 29 & THIRD SCHEDULE
-- Amendments made in Central Excises and Salt Act incor- porated in the Act.
SECTION 30: AMENDMENT OF ACT 58 OF 1967
-- Amendments made in the Additional Duties of Excise (Goods of Special Importance) Act, 1957 - incorporated in the Act.
SECTION 31: AUXILIARY DUTIES OF CUSTOMS
(1) In the case of goods mentioned in the First Schedule to the customs Tarrif 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 per cent. of the value of the goods as determined in accordance with the provisions of section 14 of the Customs Act, 1962- (hereinafter referred to as the Customs Act).
(2) Sub-section (1) shall cease to have effect after the 31st day of March. 1980, except as respects things done or omitted to be done before such cesser, and section 6 of the General Clauses Act, 1897- , shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.
(3) The auxiliary duties of customs referred to in sub-section (1) shall be in addition lo 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 32: 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. road with any notification for the time being in force issued by tlie Central Government in relation to the duty so chargeable. there shall be levied and collected a special duty of excise equal to five per cent. of the amount so chargeable on such goods.
(2) Sub-section (1) shall cease to have effect after the 31st day of March: 1980, except as respects things done or omitted to be done before such cesser, and section 6 of the General Clauses Act, 1897- . shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.
(3) The special duties of excise referred to in sub-section (1) shall be in addition to any duties of excise cliargeable 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 thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply inrelation 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 tliose rules as the case may be.
SECTION 33: EXTENT AND COMMENCEMENT
(1) This Chapter extends to the whole of India.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
SECTION 34: DEFINITIONS
- In this Chapter, unless the context otherwise requires,- -
(a) "aircraft" means an aircraft as defined in section 2 of the Aircraft Act, 1934- , which is used (whether exclusively or not) for tlie carriage of passeragers;
(b) "carrier" means the person or authority undertaking the carriage of a passenger on an international journey and includes any agent, representative or other person acting on behalf of such person or authority;
(c) "customs port" and "customs airport" means, respectively, a port or an airport appointed as such under clause (a) of section 7 of the Customs Act, 1962- ;
(d) "International journey", in relation to apassenger, means his journey from any customs port or customs airport on board any ship or aircraft to a place outside India;
(e) "passenger" means any person boarding, at any customs port or customs airport, a ship or an aircraft for performing an international journey, but does not include-
(a) a person who has arrived at such customs port or customs airport from a place outside India and is in transit through India: Provided that he continues his journey to a place outside India-
(i) on board the same ship and as part of the same voyage of the ship: or
(ii) by the same aircraft and the flight having the same number by, which he arrived; or
(b) a person employed or engaged in any capacity on board the ship or aircraft on the business thereof;
(f) "ship" means a ship used (whether exclusively or not) for the carriage of passengers.
SECTION 35: FOREIGN TRAVEL TAX
(1) With effect from the date of commencement of this Chapter, there shall be levied on all passengers embarking on international journeys a tax (hereafter in this Chapter referred to as the foreign travel tax)-
1 (i) for every such journey to any place outside India other than a place in a neighbouring country-
(a) at the rate of seven hundred and fifty rupees on or after the 26th day of September, 1997 but before the 1st day of January, 1998;
(b) at the rate of five hundred rupees on or after the Istday of January, 1998:
(ii) at the rate of fifty rupees for every such journey, where such journeey is to any palce in a neighbouring country
Explanation.- For the purposes of this sub-section, "neighbouring country" means any country which the Central Government may, having regard to the classes of person who generally perform journeys to such country, the distance between India and such country, the means of communications available for reaching such country and any other relevant circumstances specify in this behalf by notification in the Official Gazette.
(2) In accordance with the rules made under this Chapter, the foreign travel tax shall be collected by the officers of customs appointed under the Customs Act, 1962- , or such officers of the Central Government or the State Government or the International Airports Authority of India constituted under the International Airports Authority Act, 1971- , or such carriers, as may be, authorised in this behalf by the Central Government by notification in the Official Gazettee and paid to the credit of the Central Government.
SECTION 35A: INTEREST FOR DEFAULT IN PAYMENT OF FOREIGN TRAVEL TAX.
(1)Where any carrier or other person fails to pay the foreign traval tax. to the credit of the Central Government under sub-section (2) of section 35- . in accordance with the rules made under this Chapter. he shall pay an interest on the amount of tax not so paid for the entire period for which payment of such tax has been deluyed at such rate, not below twenty per cent. and not exceeding thirty per cent. per annum, as the Central Government may. by notification in the Official Gazette specify in this behalf.
(2) Where, on or before the date of commencement of section 97 of the Finance Act, 1994- , the foreign travel tax had not bern paid by any carrier or other person to the credit of the Central Government, in accordance with the rules made under this Chapter, the carrier or other person shall pay the amount of such tax within a period of thirty days of such commencement, failling which he shall be liable to pay the interest in accordance with the provisions of sub- section (1).
SECTION 36: POWER TO EXEMPT
- Notwithstanding anything contained in this Chapter, the Central Government may. by notification in the Offficial Gazette and subject to such conditions and limitations as may be specified therein, exempt, wholly or to such extent as may be specified in the notification, any class or classes of passengers or any category or categories of passenger's under any such class from the payment of foreign travel tax if that Government is satisfied that it is necessary or expedient so to do, having regard to the place of destination, purposes of the journey and any ether special circumstances.
SECTION 37: PASSENGER NOT TO BE PERMITTED TO BOARD SHIP OR AIRCRAFT WITHOUT PAYMENT OFFOREIGN TRAVEL TAX
- No carrier or other person in charge of a ship or an aircraft shall allow any passenger to board the ship or aircraft unless such passenger has paid the tax payable by him under this Chapter.
SECTION 38: PENALTIES
(1) Every passenger who embarks or attempts to embark on an international journey without paying the lax payable by him under this Chapter shall, in addition to his liability to pay the tax, be liable to a penalty not exceeding two hundred rupees.
(2) Every carrier or other person in charge of a ship or an aircraft, who, in contravention of the provisions of section 37- , allows any passenger or passengers to board the ship or aircraft. shall be liable to a penalty not exceeding three times the amount or the aggregate amount of the tax payable by the passenger or passengers so allowed to board the ship or aircraft.
2 [(3)Every carrier or other person who fails to pay the foregin travel tax to the credit of the Central Government under sub-section (2) of section 35- shall, in addition to the payment of such tax and the interest leviable thereon, be liable to pay penalty which shall not be less than one-fifth but which may extend to three times of the amount of the tax not so paid to the credit of the Central Government.
(4) Any rule made under this Chapter may provide that in case of breach thereof by tlie carrier or other person, he shall be liable to a penalty which shall not be less than five hundred rupees but which may extend to fifty thousand rupees, and where the breach is a continuing one, with further penalty which may extend to five hundred rupees for every day after the- first during which such breach continues.
(5) Any penalty under this section may be adjudged, collected and paid to the credit of the Central Government by such authority and in such manner as may be specified in the rules made under this Chapter. Provided that no order for imposing a penalty shall be passed by such authority unless the carrier or other person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter by such authority.
SECTION 38A: MODES OF RECOVERY
(1) Where the foreign travel tax or interest or penalty is not paid by a carrier or other person, as required under the provisions of sub-section (2) of section 35- , section 35A- or section 38- . the authority specified in the rules (hereinafter referred to as the authority) may, after the tax, interest or penalty has been determined under the rules, proceed to recover the amount of such tax, interest or penalty by any mode specified in sub-section (2) or sub-seection (3).
(2) The authority may require any person from whom any amount is due to the carrier or other person to deduct the tax. interest or penalty so determined from the said amount and such person shall company with any requisition by the authority and shall pay the amount so deducted to the credit of the Central Government. Provided that nothing in this sub-section,, shall apply to any part of the amount exempt from attachment in execution of a decree of a civil court- under section 60 of the Code of Civil Procedure. 1908(3) The authority may prepare a certificate signed by it specifying the amount due and send it to the Collector of the district in which the carrier or other person owns property or resides or carries on business and the said Collector, on receipt of such certificate, shall proceed to recover from the said carrier or other person, the amount specified thereunder as if it were an arrear of land revenue]
SECTION 39: PROTECTION OF ACTION TAKEN IN GOOD FAITH
- No suit or other legal proceeding shall lie against the Central Government and no suit. prosecution or other legal proceeding shall lie against any officer of the Central Government or the State Government or the International Airports Authority of India referred to in sub-section (2) of section 35 - for anything in good faith done or intended to be done in pursuance of this Chapter or the rules made thereunder.
SECTION 40: POWER TO MAKE RULES
(1) The Central Government may. by notification in the Official Gazette, make rules for carrying out the purposes of this Chapter.
(2) In particular, and withoutl prejudice to the generality of the foregoing power, such rules may provide for -
(a) the collection of the foreign travel tax including the charges for collection payable lo any State Government or the International Airports Authority of India referred lo in sub-section (2) of section 35- or any carrier, the authorities by whom adjudication of penalties or other functions under this Chapter shall be discharged, in manner in which such tax, penalties or other sums due under this Chapter shall be payable, the manner in which such tax, penalties or other sums shall be collected and paid to the credit of lhe Central Government and the procedure for claiming refund of any amount paid under this Chapter.
(b) the powers of officers authorised under sub-section (2) of section 35- to enter, inspect and search any ship or aircraft for the purpose of carrying on any duty imposed on such officer by or under this Chapter: Provided that the provisions of the Code of Criminal Procedure, 1973- , relating to searches, shall, so far as they arc applicable, apply in relation to searches under rules made under this Chapter,
(c) the procedure for adjudicationi of penalties,
(d) appeals against orders made under this Chapter, the manner in which and the time within which such appeals may be preferred and lhe fees payable therefor;
(b) the returns and other particulars and information which may be required to be furnished for the purposes of this Chapter, the persons or authorities by or to whom or which, and the intervals at which, such returns, particulars and informations shall be furnished;
(f) any other matter which is to be. or may be, provided for by rules under this Chapter.
SECTION 41: RULES AND NOTIFICATIONS TO BE LAID BEFORE PARLIAMENT
-- Every rule made under this Chapter and every notification issued under the Explanation to sub-section (1) of section 35 - or section 36 - shall be laid as soon as may be after it is made or issued before each House of Parliament while it is in session for a total period of thirty days which may be comprised In one session or in two or more successive sessions, and if, before the expiry of lhe session immediately following the .session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.
SECTION 42: CESSER OF OPERATION OF CHAPTER VII OF ACT 32 OF 1971 AND SAVING
- Chapter VII of the Finance (No. 2) Act, 1971 - (relating to foreign travel tax shall cease to have effect except as respects filings done or omitted to be done before such cesser; and section 6 of the General Clauses Act, 1897 shall apply upon such cesser as if the said Chapter had then been repealed by a Central Act.
SECTION 43: AMENDMENT OF ACT 6 OF 1898
-- [Incorporated in the Act.]
SECTION 44: AMENDMENT OF ACT 10
4 of 1963 - In the Agricultural Refinance and Development Corporation Act. 1963 Corporation to be exempt from income-tax and surtax for a certain period. - Notwithstanding anything contained in the Income-tax Act, 1961 or the Companies (Profits) Surtax Act 1964 the Corporation shall not be liable to pay any tax under either of the said Acts on its income, profits or gains for the previous year relevant to the assessment year commencing on thelie 1st day of April, 1979 and for the four previous years next following that previous year".
SECTION 45: AMENDMENT OF ACT 21 OF 1973
- [Incorporated in the Principal Act].
SECTION 46: AMENDMENT OF ACT 38 OF 1974
- [Incorporated in the Principal Act].
SCHEDULE 01: SCHEDULE
(See section 2- ) PART 1 INCOME-TAX AND SURCHARGE ON INCOME-TAX 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 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 per cent. 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. 1,050 plus 18 per cent. of the amount by which but does not exceed Rs. 20,000 the total income exceeds Rs. 15,000; (4) where the total income exceeds Rs. 20,000 Rs. 1,950 plus 25 per cent. of the amount by which but does not exceed Rs. 25,000 the total income exceeds Rs. 20,000; (5) where the total income exceeds Rs. 25,000 Rs. 3,200 plus 30 per cent. of the amount by which but does not exceed Rs. 30,000 the total income exceeds Rs. 25,000. (6) where the total income exceeds Rs. 30,000 Rs. 4,700 plus 40 per cent. of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rs. 30,000; (7) where the total income exceeds Rs. 50.000 Rs. 12,700 plus 50 per cent. of the amount by which but does not exceed Rs. 70,000 the total income exceeds Rs. 50,000: (8) where the total income exceeds Rs. 70,000 Rs. 22,700 plus 55 per cent. of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rs. 70,000: (9) where the total income exceeds Rs. 1,00,000 Rs. 39,200 plus 60 per cent. of the amount by which the total income exceeds Rs. 1,00,000. Provided that for the purposes of this Sub-Paragraph - (i) no income-tax shall he payable on a total income not exceeding Rs. 10,000; (ii) where the total income exceeds Rs. 10,000 but. does not exceed Rs. 10,540. the income-tax payable . thereon shall not exceed -seventy per cent. of the amount by which the total income exceeds Rs. 10,000 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 fifteen per cent. of such income-tax. Sub-Paragraph II In the case of every Hindu undivided family which it 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. 10,000,- 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 18 per cent. of the amount hy which the total income but does not exceed Rs. 15,000 exceeds Rs. 8,000; (3) where the tola! income exceeds Rs. 15,000 Rs. 1,260 plus 25 per cent. of the amount by which but does not exceed Rs. 20,000 the total income exceeds Rs. 15,000; (4) where tliJ total income exceeds Rs. 20,000 Rs. 2,510 plus 30 per cent. of the amount by which but does not exceed Rs. 25,000 the total income exceeds Rs. 20,000; (5) where the total income exceeds Rs. 25,000 Rs. 4,010 plus 40 per cent. of the amount hy which but does not exceed Rs. 30,000 the total income exceeds Rs. 25,000; (6) where the total income exceeds Rs. 30,000 Rs. 6,010 plus 50 per cent. of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rs. 30,000; (7) where the total income exceeds Rs. 50,000 Rs. 16,010 plus 55 per cent. of the amount by which but does not exceed Rs. 70,000 the total income exceeds Rs. 50,000; (8) where the total income exceeds Rs. 70,000 Rs. 27,010 plus 60 per cent. of the amount by which the total income exceeds Rs. 70,000 Provided that for the purposes of this Sub-Paragraph,-- (i) no income-tax shall be payable on a total income not exceeding Rs.10,000; (ii) where the total income exceeds Rs. 10,000 but does not exceed Rs. 10,690. the income-tax payable thereon shall not exceed seventy per cent. of the amount hy which the total income exceeds Rs. 10,000. 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 fifteen per cent. of such income-tax. Paragraph B In the case of every co-operative society, - Rules of income-tax (1) where the total income does riot exceeds 15 per cent. of the total income; Rs. 10,000 (2) where the total income exceeds Rs. 10000 Rs. 1,500 plus 25 per cent. of the amount by which but does not exceed Rs. 20,000 the total income exceeds Rs. 10,000; (3) where the total income exceeds Rs. 20,000 Rs. 4,000 plus 40 per cent.of the amountl 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 theis paragraph shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent. of such income-tax Paragraph C Sub-Paragraph I In the ease 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 per cent. 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 per cent. of.the amount by which but does not exceed Rs. 50,000 the total income exceeds Rs. 25,000; (4) where the total income exceeds Rs. 50,000 Rs. 2,500 plus 15 per cent. of the amount by which but does not exceed Rs. 1,00,000 the total incoe exceeds Rs. 50,000; (5) where the total income exceeds Rs. 1,00,000 Rs. 10,000 plus 24 per cent. 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 shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent. 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 per cent. 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 per cent. 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 per cent. of the amount by which but does not exceed Rs; 50,000 the total income exceeds Rs. 25,000; (4) where the total income exceeds Rs. 50,000 Rs. 2,350 plus 13 per cent. of the .amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rs 50.000; (5) where the total income exceeds Rs. 1,00,000 Rs. 8,850 plus 22 per cent. 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 shall he increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent. 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-lax Act. Paragraph D In the case of every local authority, - Rate of income-tax On the whole of the total income 50 per cent. Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the Union calculated at the rate of fifteen per cent. 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 per cent. of the total income. does not exceed Rs. 1,00,000 (ii) in a case where the total 55 per cent. 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 per cent. of the total income. does not exceed Rs. 2,00,000 (b) where the total income 60 per cent. of the total income; exceeds Rs. 2,00,000 (ii) in any other case 65 per cent. 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 lor this purposes 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 per cent. 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 lhe 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 per cent. of the amount by which its total income exceeds Rupess 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 cay of March. 1961 hut before the 1st day of April. 1976. or (b) tees lor rendering techincal services received from an Indian concern in pursuance of agreement made hy it with the Indian concern after the 29th day of February, 1964 hut before the 1st day of April. 1976. and where such agreement has. in 50 per cent., either case. been approved hy the Central Government (ii) on the balance, if any, of the total income 70 per cent., Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall he increased by a surcharge calculated at the rate of five per cent of such income-tax. PART II Rates of deduction of tax at sourace in certain cases In every case in which under the provisions of sections 193 , 194 , 194A , 194B , 194BU , 194D and 195 of the Income-tax Act , tax is to be deducted at the rates in force, deduction shall be made from the income subject to deduction at the following rates :-- --------------------------------------------------------------------------------------------------------------- Income-tax --------------------------------------------- Rate of Rate of income-tax surcharge --------------------------------------------------------------------------------------------------------------- 1. In the case of a person other than a company - (a) where the person is resident in India--- (i) on income by way of interest 10 per cent Nil: other than "Interest on securities" (ii) on income by way of winnings 30 per cent. 6 per cent. From lotteries and crossword puzzles (iii) on income by way of winnings 30 per cent. 6 per cent., from horse races (iv) on income by way of insurance 10 per rent. Nil; commission (iii) on income hy 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 per cent. 3.75 per cent.; the 31st day of March, 1961 hut before the 1st day of April. 1976 (B) where the agreement is made after the 31st day of March, 1976-- (1) on so much of the amount of 20 per cent. Nil; such income as cosists 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 speci- fication relating to any patent, invention model, design, secret formula or process, or trade mark or similar property. (2) on the balance if any. of such 40 per cent. Nil: in come (iv) on income hy way of ices for technical services payable hy an Indian concern in pursuance of an agreement made hy it with the Indian concern and which has been a pproved hy the Central Government- (A) where the agreement is made alter 50 per cent. 3.75 per cent.: the 29th day of February, 1964 hut before the 1st day of April, 1976 (B) where the agreement is made 40 per cent. Nil; after the 31st day of March. 1976 (v) on income by way of interest payable 44 per cent. 3.3 per cent.: on a tax-free security (vi) on any other income 70 per cent. 5.25 per cent. --------------------------------------------------------------------------------------------------------------- PART III Rates for calculating or charging income-tax in certain cases, deducting income-tax from income chargeable under the head "Salaries" or any payament 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 or section 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-see. (9) or in which the "advance tax" payable under Chapter XVII-C of the said Act has to he 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 of the Income-tax Act at the rates as specified in that Chapter or section), shall he 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 persens 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-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. 11,000 (2) where the total income exceeds Rs. 8,000 15 per cent. 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. 1,050 plus 18 per cent. of the amount by which but does not exceed Rs. 20,000 the total income exceeds Rs. 15,000: (4) where the lotal income exceeds Rs. 20.000 Rs. 1,950 plus 25 per cent. of the amount by which but does nol exceed Rs 25,000 the total income exceeds Rs. 20,000. (5) where the total income exceeds Rs. 25,000 Rs. 3,200 plus 30 per cent. of the amount by which but does not exceed Rs. 30,000 the total income exceeds Rs. 25,000: (6) where the total income exceeds Rs. 30,000 Rs. 4,700 plus 40 per cent. of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rs. 30,000: (7) where the total income exceeds Rs. 50,000 Rs. 12,700 plus 50 per cent. of the amount by which but does not exceed Rs. 70,000 the total income exceeds Rs.- 50,000: (8) where the total income exceeds Rs 70,000 Rs. 22,700 plus 55 per cent. of the amount hv which but does not exceed Rs. 1,00,000 the total income exceeds Rs. 70,000: (9) where the total income exceeds Rs. 39,200 plus 60 per cent. of the amount by which Rs. 1,00,000 the total income exceeds Rs. 1,00,000. Provided that tor the purposes of this Sub-Paragraph.-- (i) no income-tax shall he payable on a total income nol exceeding Rs. 10,000; (ii) where the total income exceeds Rs. 10,000 hut does not exceed Rs. 12,000. the income-tax payable thereon shall nol exceed thrity per cent. of the amount by which the total income exceeds Rs. 10,000 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 lor purposes of the Union calculated at the rate of twenty per cent. 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 lotal income of the previous year relevant to the assessment year commencing on the 1st day of April. 1980 exceeds Rs. 10,000. Rates of income-tax (1) where the total income does notexceed Nil; Rs. 8,000 (2) where the total income exceeds Rs. 8,000 18 per cent. 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. 1,260 plus 18 per cent. of the amount by which but does not exceed Rs. 20,000 the total income esceeds Rs. 15,000; (4) where the total income exceeds Rs. 20,000 Rs. 2,510 plus 30 per cent. of the amount by which but Joes not exceed Rs. 25,000 the total income exceeds Rs. 20,000. (5) where the total income exceeds Rs. 25,000 Rs. 4,010 plus 40 per cent. of the amount by which but does not exceed Rs. 30,000 the total income exceeds Rs. 25,000, (6) where the total income exceeds Rs. 30,000 Rs. 6,010 plus 50 per cent. of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rs. 30,000; (7) where the total income exceeds Rs. 50,000 Rs. 16,010 plus 55 per cent. of the amount by which but does not exceed Rs. 70,000 the total income exceeds Rs. 50,000. (8) where the total income exceeds Rs. 70,000 Rs. 27,010 plus 60 per cent. of the amount by which the total income exceeds Rs. 70,000: Provided that lor the purposes of this sub-paragraph,--- (i) no income-tax shall he payable on a total income not exceeding Rs. 10,000; (ii) where the total income exceeds Rs. 10,000 but does not exceed Rs. 13,000. the income-tax payable thereon shall not exceed thirty per cent. of the amount by which the total income exceeds Rs. 10,000. Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions ot this Sub-Paragraph shall he increased by a surcharge tor purposes of the Union calculated at the rate ot twenty per cent. of such income-tax Paragraph B In the case of every co-operative society.-- Rates of income-tax (1) where the total income does not exceed 15 per cent. of the total income.: Rs. 10,000 (2) where the total income exceeds Rs. 10.000 Rs. 1,500 plus 25 per cent. 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 per cent. 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 ot this Paragraph shall he increased hy a surcharge for purposes of the Union calculated at the rate of twenty per cent 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 per cent. of the amount hy 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 per cent. of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rs 25,000; (4) where the total income exceeds Rs. 50,000 Rs.2,500 plus 15 per cent. of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rs. 50,000; (5) where the total income exceeds Rs. 1,00,000 Rs.10,000 plus 24 per cent. 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 shall be increased by a surcharge for purposes of the Union calculated at the rate of twenty per cent. 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 per cent. 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 per cent. of the amount by which the total income but does not exceed Rs. 25,000 total income exceeds Rs. 10,000; (3) where the total income exceeds Rs. 25,000 Rs. 600 plus 7 per cent. of the amount by which but does not exceed Rs. 50.000 the total income exceeds Rs. 25,000; (4) where the total income exceeds Rs. 50,000 Rs. 2,350 plus 13 per cent. of the amount by which but does not exceed Rs. 1.00.000 the total income exceeds Rs. 50.000; (5) where the total income exceeds Rs. 1.00.000 Rs. 8,850 plus 22 per cent. 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 shall he increased by a surcharge for purposes of the Union calculated at the rate of twenty per cent. 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,-- Kates of income-tax On the whole of the total income 50 per cent. Surcharge on income-tax The amount of income-tax computed at the rate hereinbefore specified shall he increased hy a surcharge for purposes of the Union calculated at the rate of twenty per cent. of such income-tax. Paragraph E In the case of a domestic 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 per cent. of the total income; does not exceed Rs. 1.00,000 (ii) in a case where the total income 55 per cent. 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 per cent. of the total income; not exceed Rs. 2.00,000 (b) where the total income 60 per cent. of the total income; , exceeds Rs. 2,00.000 (ii) in any other case 65 per cent of the total income; Provided that- (i) the income-tax payable by a domestic company. being a company in winch the public are substantially interested, the total income of which exceeds Rs. 1,00.000 shall not exceed the aggregate of --- (a) the income-lax which would have been pavahle bv 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 conpany): and (b) eighty per cent. of the amount by which its total income exceeds Rs. 1,00,000: (ii) the income-tax payable by a domestic company, not heing a company in which the public are substantially interested, which is an industrial companv 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 bv the company if its total income had been Rs 2.00.000 (the income of Rs. 2.00.000 for this purpose heing computed' as if such income included income from various sources in the same proportion as the total income of the companv), and (b) eighty per cent. 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 Irom 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 Irom an Indian concern in pursuance of an agreement made hy it with the Indian concern alter the 29th day of February, 1964 but before the 1st day of of April. 1976, and where such agreement has. in 50 per cent: either case. been approved hy the Central Government (ii) on the balance, if any, of the 70 per cent. total income Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this paragraph shall he increased hy a surcharge calculated at the rate of seven and a half per cent. of such income- tax. PART IV (See section 2 (7) (9)- ] RULES FOR COMPUTATION OF THE NET AGRICULTURAL INCOME
RULE 01:
-- Agricultural income of the nature referred to in sub-clause (a) of clause (1) of section 2 of the Income-tax Act - shall he computed as if it were income chargeable to income-tax under that Act under the head "Income from other sources" and the provisions of sections 57 to 59 of that Act shall.' so far as may be, apply accordingly : Provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to sec. 40A - therein shall he construed as not including a reference to sub-sections (3) and (4) of section 40A -
RULE 02:
- Agricultural income of the nature referred to in sub-clause (h) sub-clause (c) of clause (1) of section 2 of the Income-tax Act (other than income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head "Profits and gains of business or profession" and the provisions of section 30 , 31 , 32 , 34 , 36 , 37 , 38 , 40 40A [other than sub-sections (3) and (4) thereof], 41 , 43 , and 43A of the Income-tax Act shall, so far as may be, apply accordingly.
RULE 03:
-- Agricultural income of the nature referred to in sub-cl (c) of Cl. (1) of section 2 of the Income-tax Act being income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall he computed as if it were income chargeable to income-tax under that Act under the head "Income from house property" and the provisions of sections 23 to 27 of that Act shall, so far as may he. apply accordingly; Provided that sub-section (2) of the said section 23 shall apply subject to the modifications that the references to ""total income" therein shall he construed as references to net agricultural income and that the words, figures and letter "and before making any deduction under Chapter VIA" shall be omitted.
RULE 04:
-- 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 hy him in India, such income shall be computed in accordance with rule 8 of the Income-tax Rules,1962 and sixty per cent. of such income shall be regarded as the agricultural income of the assessee.
RULE 05:
--- Where the assessee is a partner of a registered firm or an unregistered Firm assessed us a registered firm under clause (b) of section 183 of the Income-tax Act which in the previous year has, any agricultural income, or is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of the said section 183 and which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an unregistered firm hut has any agricultural income, then the agricultural income or loss of the firm shall be computed in accordance with these rules and his share in the agricultural income or loss of the firm shall be computed in the manner laid down in sub-section (1). sub-section (2) and sub-section (3) of section 67 of the Income-tax Act and the share so computed shall be regarded as the agricultural income or loss of the assessee.
RULE 06:
-- Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to lax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) hut has any agricultural income, then the agricultural income or loss of the association or body shall he 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 the assessee.
RULE 07:
--- Where the result of the computation for the previous year in respect of any source ol 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 partner of an unregistered firm which has not been assessed as registered firm under clause (h) of section 183 of the Income-tax Act or 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 firm. association or body. as the case may be. is a loss. such loss shall not he set off against any income of the assessee from any other source of agricultural income.
RULE 08:
-- Any sum payable hy the assessee on account of any tax levied by the State Government on the agricultural income shall he deducted in computing the agricultural income
RULE 09:
(1) Where theassessee has. in the previous year relevant to the assessment year commencing on the 1st day of April 1979. any agricultural income and the net result of the compulation of the agricultura; 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. 1974 or the 1st day of April 1975 or the 1st day of April. 1976 or the 1st day of April. 1977 or the 1st day of April. 1978. is a loss then, for the purposes of sub-section (2) of section 2- of this Act.---
(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April. 1974. to the extent, if any. such loss has not been set off against the agricultural income lor the previous year relevant to the assessment year commencing on the 1st day of April. 1975 or the 1st day of April, 1976 or the 1st day of April. 1977. or the 1st day of April. 1975.
(ii) the loss so computed lor the previous year relevant to the assessment year commencing on the 1st day of April. 1975. to the extent, if any. such loss has not been set oil against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April 1976 or the 1st day of April. 1977. or the 1st day of April. 1978.
(iii) the lose so computed for the previous year relevant to the asessment year commencing on the 1st day of April, 1976, 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 commeneing on the 1st day of April, 1977 or the 1st day of April 1978.
(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1977 to the extent, it. 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, 1978 and
(v) the loss so computed for the previous year relevant to the assessment year commeneing on the 1st day of April, 1978, 1st day of April, 1978. shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1979.
(2) where the assess has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1980 or, if by virtue of any provision of the Income-tax Act, income-tax is to be chared in respect of the income of a period other than that previous year, in such other period, 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 years years relevant to the assessment years commencing on the 1st day of April,1974 or the 1st day of April, 1975 or the 1st day of April, 1976 or the 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979, is a loss, then, for the purposes of sub-section (6) of section 2- of this Act.
(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1974, 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, 1975 or the 1st day of April, 1976 or te 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day of april, 1979.
(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1975, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant tot he assessment year commencing on the 1st day of April, 1976 or the 1st day of April, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979.
(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1976, 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, 1977 or the 1st day of April, 1978 or the 1st day of April, 1979.
(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1977, 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, 1978 or the 1st day of april, 1979,
(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1978, 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, 1979, and
(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1979.t, it any, such loss has not been set oil- against the agricultural shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1980 or the period aforesaid.
(3) Where a change has occurred in the constitution of a firm, nothing in sub-rule (1) or sub-rule (2) shall entitle the firm to set off so much of the loss proportionate to the share of a retired or deceased partner computed in the manner laid down in sub-section (1), sub-section (2) and sub-section (3) of section 67 of the Income-tax Act as exceeds his share of profits, if any, of the previous year in firm, or entitle any apportionable to him.
(4) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than b inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss to have it set off under sub-rule (1), or as the case may be, sub-rule (2).
(5) Notwithstanding snything contained in this rule, no loss which has not been determined by the term Income-tax officer under the provisions of these rules, or the rules contained in Part IV of the First Schedule to the Finance Act, 1974 , or of the First Schedule to the Finance Act, 1975 , or of the First Schedule to the Finance Act, 1976 , or of the First Schedule to the Finance (No.2) Act, 1977 , or of the Schedule to the Finance Act, 1978 , shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).
RULE 10:
- Where the net result of the compulation made in accordance with these rules is a loss, the loss so computed shall he ignored and the net agricultural income shall he deemed to he nil.
RULE 11:
- The provisions of the Income-tax Act relating to procedure tor assessment (including the provisions of section 288A relating to rounding off of income) shall, with the necessary modifications. apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.
RULE 12:
- For the purposes of computing the net agricultural income of the assessee,the income- tax Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.
SCHEDULE 02:
(See Section 2K- ) (Incorporated in the Act)
SCHEDULE 03:
(See section 29- ) (Incorporated in the Act)
SCHEDULE 04:
(See section 30- ) (Incorporated in the Act)
Footnotes:
2. Sub-sections (3), (4). (5) substituted for original Sub-Section (3) by the Finance Act (32 of 1994), S. 97(b).
4. Act has been repealed by the Act (61 of 1981). S. 17 (b) [w.e.f. 1.5.1982)].
