An Act to give effect to the financial proposals of the Central Government for the financial year 1987-88 Be it enacted by Parliament in the Thirty-eighth. Year of the Republic of India as follows: ---
SECTION 01: SHORT TITLE AND COMMENCEMENT
(1) This Act may be called The Finance Act, 1987.
(2) Save as otherwise provided in this Act. Sections 2SECTION 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, 1987, income-tax shall be charged at the rates specified in Part I of the First Schedule.
(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-Paragraphs I applies, eighteen thousand rupees, and
(ii) in a case to which the said Sub-Paragraph II applies, twelve thousand rupees, then,-
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after,---
(i) in a case to which the said Sub-Paragraph I applies, the first eighteen thousand rupees, and
(ii) in a case to which the said Sub-Paragraph II applies, the first twelve thousand rupees, of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income: and
(b) the income-tax chargeable shall be calculated as follows:-
(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income;
(ii) the net agricultural income shall be increased,-
(A) in a case to which the said Sub-Paragraph I applies, by ¯.sum of eighteen thousand rupees; and
(B) in a case to which the said Sub-Paragraph II applies, by a sum of twelve thousand rupees, and the amount of income-tax shall be determined in respect of the net 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 in the income-tax in respect of the total income.
(3) In cases to which the provisions of Chapter XII or Chapter XIIA or sub-section (1A) ofSection 161-orSection 164-orSection 164A-orSection 167A of the Income-tax Act, 1961-(hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub- section (1) or the rates as specified in that Chapter or section, as the case may be.
(4) In cases in which tax has to be deducted underSections 193-,194-,194A-,194B-,194BB-,194D-and195 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) ofSection 132 of the Income-tax Act-or charged under sub-section (4) ofSection 172-or sub-section (2) ofSection 174-orSection 175-or sub-section (2) ofSection 176-of the said Act or deducted underSection 192-of the said Act from income chargeable under the head "Salaries" or deducted under sub-section (9) ofsection 80E-of the said Act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be so calculated, charged deducted or computed at the rate or rates specified in Part III of the First Schedule : Provided that in cases to which the provisions of Chapter XII or Chapter XIIA or sub-section (1A) ofSection 161-orSection 164-orSection 164A-orSection 167A of the Income-tax Act-apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be.
(6) In the cases to which Sub-Paragraph I or Sub-Pragraph II of Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income, exceeding six hundred rupees, in addition to total income and the total income exceeds,-
(i) in a case to which the said Sub-Paragraph I applies, eighteen thousand rupees, and
(ii) in a case to which the said Sub-Paragraph II applies, twelve thousand rupees, then, in calculating income-tax under the first proviso to sub-section (5) ofSection 132 of the income-tax Act-or in charging income-tax under sub-section (2) ofSection 174-orSection 175-or sub-section (2) ofSection 176-of the said Act or in computing the "advance tax" payable under Chapter XVII-C of the said Act, at the rate or rates in force,---
(a) the net agricultural income shall be taken into account in the manner provided in clause (b) that is to say, as if the net agricultural income were comprised in the total income after,-
(i) in a case to which the said Sub-Paragraph I applies, the first eighteen thousand rupees, and
(ii) in a case to which the said sub-paragraph II applies, the first twelve thousand rupees, of the total income but without being liable to tax], only for the purpose of calculating, charging or computing such income-tax or, as the case may be, "advance tax" in respect of the total income; and
(b) such income-tax or, as the case may be, "advance tax" shall be so calculated, charged or computed as follows :---
(i) the total income and the net agricultural income shall be aggregated and, the amount of income-tax or "advance tax" shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be; Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income;
(ii) the net agricultural income shall be increased,---
(A) in a case to which the said Sub-Paragraph I applies, by a sum of eighteen thousand rupees; and
(B) in a case to which the said Sub-Paragraph II applies, by a sum of twelve thousand rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Sub-Paragraph I or, as the case may be, the said Sub-Paragraph II, as if the net agricultural income as so increased were the total income;
(iii) the amount of income-tax or "advance tax" determined in accordance with sub- clause (i) shall be reduced by the amount of income-tax or, as the case may be, "advance tax" determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of . the total income.
(7) 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) ofSection 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 as 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, 1987. 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 ofSection 194-of that 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 revial of policies of insurance);
(d) "investment company" means a company whose gross total income (as defined inSection 80B of the income-tax Act-) consists mainly of income which is chargeable under the heads "Interest on securities", "Income from house property", "Capital gains" and "Income from other sources";
(e) "net agricultural income", in relation to a person means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;
(f) "tax-free security" means any security of the Central Government issued or declared to be income-tax free, or any security of a State Government issued income-tax free, the income-tax whereon is payable by the State Government;
(g) "trading company" means a company whose business consists mainly in dealing in goods or merchandise manufactured, produced or processed by a person other than that company and whose income attributable to such business included in its gross total income (as defined inSection 80B of the Income-tax Act-) is not less than fifty one per cent of the amount of such gross total income;
(h) all other words and expressions used in this section or in the First Schedule but not defined in this sub-section and defined in the Income-tax Act. shall have the meanings, respectively, assigned to them in that Act.
SECTION 03:03-74
Amended the following sections of the Income-tax Act which are being incorporated in the principal act and hence not printed hereat. Sections affected are,2-;10-;10A-27-;32AB-;33AB-;36-;43B-;44BB-(ins.);44BBA-(ins.);45-;47-;48-; (subst.);49-;52-(omitted);53-;54-;54B-;54D-;54E-;54F-;54G-(ins.);55-;56-;57-;70-;71-(subst.);72-;74-(subst.);80C-;80CC-;80CCA-(ins.);80G-;80O-;80RRA-;80T-(omitted);80U-; CHAPTER 6-B (omitted) CHAP. 11 (omitted);115-(omitted); CHAPTER 12-A (containing)115J-(ins.);155-;192-;194-;194A-;194D-;195-;195A-(ins.);197-;199-;202-;203-;203A-(ins.);206-(subst.);245A-(subst.);245B-;245BA-; to245BD-(ins.);245C-;245D-;245E-;245F-;245H-;245HA-(ins.)245K-;245M-(omitted);272BB-(ins.);273B-;280 ZA-;285-and286-(omitted);293-; Eleventh Schedule;Section 74-made consequential Amendments to certain Sections.
SECTION 75: AMENDMENT OF SECTION 2
InSection 2 of the Wealth-tax Act, 1957-(hereinafter referred to as the Wealth-tax Act), in clause (m), the following Explanation shall be inserted at the end, with effect from the 1st day of April, 1988, namely:--- "Explanation.-- A building or part thereof referred to in clause (iii), clause (iiia) or clause (iiib) of Section 27 of the Income-tax Act shall be includible in the net wealth of the person who is deemed under the said clause to be the owner of that building or part thereof",---
SECTION 76: AMENDMENT OF SECTION 5
- InSection 5 of the Wealth-tax Act-, in sub-section (1), after clause (xxva), the following clause shall be inserted with effect from the 1st day of April, 1988 namely:--- "(xxvb) any deposits made under the National Savings Scheme referred to inSection 80CCA of the Income-tax Act-",
SECTION 77: SUBSTITUTION OF NEW SECTION FOR SECTION 22 A
ForSection 22A of the Wealth- tax Act-, the following section shall be substituted with effect from the 1st day of June, 1987, namely :--- 22A. Definitions. - In this Chapter, unless the context otherwise requires,--- (a) "Bench" means a Bench of the Settlement Commission; (b) "case" means any proceeding under this Act for the assessment or re-assessment of any person inrespect of any year or years, or by way of appeal or revision in connection with such assessment or re-assessment, which may be pending before any Wealth-tax authority on the date on which an application under sub-section (1)-of Section 22C is made : Provided that where any appeal or application for revision has been preferred after the expiry of the period specified for the filing of such appeal or application for revision under this Act and which has not been admitted, such appeal or revision shall not be deemed to be a proceeding pending within the meaning of this clause; (c) "Chairman" means the Chairman of the Settlement Commission; (d) "Member" means a Member of the Settlement Commission, and includes the Chairman and a Vice-Chairman; (e) "Settlement commission" means the income-tax Settlement Commission constituted underSection 245B of the income-tax Act-; (f) "Vice-Chairman" means a vice Chairman of the Settlement Commission; (g) "Wealth-tax authority" means an income-tax authority specified inSection 116 of the Income-tax Act-who is treated as a Wealth-tax authority underSection 8-
SECTION 78: AMENDMENT OF SECTION 22B
InSection 22B of the Wealth-tax Act-, in sub-section (1), thebrackets and words '(hereinafter in this Chapterreferred to as "the Settlement Commission")' shall be omitted with effect from the 1st day of June, 1987.
SECTION 79: INSERTION OF NEW SECTIONS 22BA TO 22BD
--- AfterSection 22B of the Wealth-tax Act-, the following sections shall be inserted with effect from the 1st day of June, 1987, namely,--- "22BA, Jurisdiction and powers of Settlement Commission. --- (1) subject to the other provisions of this chapter, the jurisdiction, powers and authority of the Settlement Commission may be exercised by Benches thereof. (2) Subject to the other provisions of this section, a Bench shall be presided over by the Chairman or a Vice-Chairman and shall consist of two other Members. (3) The Bench for which the Chairman is the Presiding Officer shall be the principal Bench and the other Benches shall be known as additional Benches. (4) Notwithstanding anything contained in sub-sections (1) and (2), the Chairman may authorise the Vice-Chairman or other Member appointed to one Bench to discharge also the functions of the Vice-chairman or, as the case amy be, other member of another Bench. (5) Notwithstanding anything contained in the foregoing provisions of this sections, and subject to any rules that may be made in this behalf, when one of the persons constituting a Bench (whether such person be the presiding officer or other Member of the Bench) as unable to discharge his functions owing to absence, illness or any other cause or in the event of the occurrence of any vacancy either in the office of the Presiding Officer or in the office of one or the other Members of the Bench, the remaining two persons may function as the Bench and if the Presiding Officer of the Bench is not one of the remaining two persons, the senior among the remaining persons, shall act as the Presiding Officer of the Bench: Provided that if at any stage of the hearing of any case or matter, it appears to the Presiding Officer that the case or matter is of such a nature that it ought to be heard by a Bench consisting of three members, the case or matter may be referred by the presiding Officer of such Bench to the Chairman for transfer to such Bench as the Chairman may deem fit. (6)Subject to the other provisions of this Chapter, the places at which the principal Bench and the additional Benches shall ordinarily sit, shall be such as the Central Government may, by notification in the Official Gazette, specify. 22BB. Vice-Chairman to act as Chairman or to discharge his functions in certain cir- cumstances. -(1) In the event of the occurrence of any vacancy in the office of the Chairman by reason of his death resignation or otherwise, the Vice-Chairman or, as the case may be, such one of the Vice-chairman as the Central Government may by notification in the official Gazette, authorise in this behalf, shall act as the Chairman until the date on which a new Chairman, appointed in accordance with the provisions of this Chapter to fill such vacancy, enters upon his office (2) When the Chairman is unable to discharge his functions owing to absence, illness or any other cause, the Vice-chairman or, as the case may be, such one of the Vice-Chairman as the Central government may, by notification in the Official Gazette, authorise in this behalf, shall discharge the functions of the Chairman until the date on which the Chairman resumes his duties. 22BC. Power of Chairman to transfer cases from one Bench to another. - On the application of the assessee or the Commissioner and after notice to them and after hearing such of them as may desire to be heard, or on his own motion without such notice, the Chairman may transfer any case pending before one 'Bench, for disposal, to another Bench, ::i: 22. BD. Decision to be by majority.-- If the Members of a Bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the Members are equally divided, they shall state the point or points on which they differ, and make a reference' to the chairman who shall either hear' the point or points himself or refer the case for hearing on such point or points by one or more of the other Members of the Settlement Commission and such point or points shall ' be decided according to the opinion of the majority of the Members of the Settlement Commission who have heard the case, including those who first heard it".
SECTION 80: AMENDMENT OF SECTION 22C
InSection 22C of the Wealth-tax Act-, with effect from the 1st day of June, 1987,---
(1) in sub-section (1), the following proviso shall beinserted at the end, namely :-- "Provided that no such application shall be made unless the assoasee has, furnished the return of wealth which is or was required to furnish under any of the provisions of this Act"; (ii) for sub-sections (1B) and (1C) the following sub-sections shall be substituted, namely :-
(1B) Where the wealth disclosed in the application relates to only one prtvious year,-
(i) if the applicant has not furnished a return in respect of the net wealth of that year (whether or not an assessment has been made in respect of the net wealth of that year), then, except in a case covered by clause (iii), wealth-tax shall be calculated on the wealth disclosed in the application as if such wealth were the net wealth;
(ii) if the applicant has furnished a return in respect of the net wealth of that year (whether or not an assessment has been made in pursuance of such return), wealth-tax shall be calculated on the aggregate of the net wealth returned and the wealth disclosed in the application as if such aggregate were the net wealth;
(iii) if the proceeding pending before the wealth-tax authority is in the nature of a proceeding for re-assessment of the applicant underSection 17-or by way of appeal or revision in connection with such reassessment, and the applicant has not furnished a return in respect of the net wealth of that year in the course of such proceeding for re-assessment, wealth-tax shall be calculated on the aggregate of the net wealth as assessed in the earlier proceeding for assessment underSection 16-orSection 17-and the wealth disclosed in the application as if such aggregate were the net wealth.
(1C) The additional amount of wealth-tax payable in respect of the wealth disclosed in the application relating to the previous year referred to in sub-section (IB) shall be,---
(a) in a case referred to in cluase (i) of that sub-section, the amount of wealth-tax calcuated under that clause;
(b) in a case referred to in clause (ii) of that sub-section, the amount of wealth-tax calculated under that clause as reduced by the amount of wealth-tax calculated on the net wealth returned for that year; '
(c) in a case referred to in clause (iii) of that sub-section. the amount of wealth-tax calculated under that clause as reduced by the amount of wealth-tax calculated on the net wealth assessed in the earlier proceeding for assessment underSection 16-orSection 17-".
SECTION 81: AMENDMENT OF SECTION 22D
InSection 22D of the Wealth-tax, Act-, with effect from 1st day of june, 1987,---
(a) after I sub-section (4), the following sub-section shall be inserted, namely:- "(5) subject to the provisions ofSection 22BA-; the materials brought on record before the Settlement commission shall be considered by the Members of the .concerned Bench before passing any order under sub section (4) and, in relation to the passing of such order, the provisions ofSection 22BD-shall apply";
(b) in sub-section (6), for the,words "tax or penalty", the words "tax, penalty or interest" shall ,be substituted.
SECTION 82: AMENDMENT OF SECTION22E
InSection 22E of the Wealth-tax Act-, for the proviso, the following proviso shall be substituted with effect from the 1st day of June, 1987, namely:- "Provided that no proceeding shall be reopened by the Settlement Commission under this section if the period between the end of the assessment year to which such a proceeding relates and the date of application for settlement underSection 22C-exceeds nine years".
SECTION 83: AMENDMENT OF SECTION 22F
InSection 22F of the Wealth-tax Act-, sub-sections (5) and (6) shall be omitted with effect from the 1st day of June, 1987.
SECTION 84: AMENDMENT OF SECTION 22H
InSection 22H of the Wealth-tax Act-, with effect from the 1st day of June, 1987,-
(a) in sub-section (1), the following proviso shall be inserted at the end, namely:- "Provided that no such immunity shall be granted by the Settlement Commission in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of the application underSection 22C-";
(b) after sub-section (1), the following sub-section shall be inserted, namely:- "(1A) An immunity granted to a person under sub-section (1) shall stand withdrawn if such person fails to pay any sum specified in the order of settlement passed under sub-section (4) ofSection 22D-within the time specified in such order or within such further time as may be allowed by the Settlement Commission, or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions of this Act shall apply as if such immunity had not been granted".
(c) in sub-section: (2), the words "has not complied with the conditions subject to which the immunity was granted or that such person" shall be omitted.
SECTION 85: INSERTION OF NEW SECTION 22HA
AfterSection 22H of the Wealth-tax Act-, the following section shall be inserted with effect from the 1st day of June, 1987 namely:- "22HA. Power of Settlement Commission to send a case back to the Wealth-tax Officer if the assessee does not co-operate.- (1) The Settlement Commission may, if it is of opinion that any person who made the application for settlement underSection 22C-has not co-operated with the Settlement Commission in the proceedings before it, send the case back to the Wealth- tax Officer who shall thereupon dispose of the case in accordance with the provisions of this Act as if no application underSection 22C-had been made. (2) For the purposes of sub-section (1), the Wealth-tax Officer shall be entitled to use all the materials and other information produced by the assessee before the Settlement Commission or the results of the inquiry held or evidence recorded by the Settlement Commision in the course of the proceedings before it as if such materials, information, inquiry and evidence had been produced before the Wealth-tax Officer or held or recorded by him in the course of the proceedings before him. (3) For the purposes of the time-limit underSections 17A-,32-and35-and for the purposes of payment of interest underSection 34A-, in a case referred to in sub-section (1), the period commencing on from the date of the application to the Settlement commission under Section 22C and ending with the date of receipt by the Wealth-tax Officer of the order of the Settlement Commission sending the case back to the Wealth-tax Officer, shall be excluded".
SECTION 86: AMENDMENT OF SECTION 22K
- InSection 22K of the Wealth-tax Act-, with effect from the 1st day of June, 1987,-
(a) at the end of cluase (ii), the word "or" shall be inserted;
(b) after clause (ii), the following clause shall be inserted, namely,- "(iii) the case of any such person is sent back to the Wealth-tax Officer by the Settlement Commission underSection 22HA-",
SECTION 87: OMISSION OF SECTION 22M
-Section 22M of the Wealth-tax Act-shall be omitted with effect from the 1st day of June. 1987.
SECTION 88: AMENDMENT OF SECTION 31
InSection 31 of the Wealth-tax Act-, in sub-section (2A)-
(a) in the opening portion
(i) for the words "the Board may", the words "the Commissioner may" shall be substituted
(ii) for the words "interest payable by an assessee" the words "interest paid or payable by an assessee" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of October, 1984;
(iii) for the words, "on the recommendation made by the Commissioner in this behalf, it is satisfied that", the words "he is satisfied that" shall be substituted;
(b) for clauses (i) and (ii), the following clauses shall be substituted and shall be deemed to have been substituted with effect from the 1st day of October, 1984, namely:-
"(i) payment of such amount has caused or would cause genuine hardship to the assessee;
(ii) default in the payment of the amount on which interest has been paid or was payable under the said sub-section was due to circumstances beyond the control of the assessee; and".
SECTION 89: AMENDMENT OF SECTION 43
InSection 43 of the Wealth-tax Act-, for the words "any assessment made", the words "any order made" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of March, 1987.
SECTION 90:
SECTION 91:
[Amendments incorporated in the Gift-tax Act, 1958].
SECTION 92:
[Amendment incorporated in the Customs Tariff Act, 1975].
SECTION 93: AUXILIARY DUTIES OF CUSTOMS
(1) In the case of goods mentioned in the First Schedule to the Customs Tariff Act, or in that Schedule as amended from time to time, there shall be levied and collected as an auxiliary duty of customs an amount equal to fifty per cent, of the value of the goods as determined in accordance with the provisions ofSection 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, 1988, except as respects things done or omitted to be done before such cesser; andsection 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 to any duties of customs chargeable on such goods under the Customs Act, or any other law for the time being in force.
(4) The provisions of the Customs Act, and the rules and regulations made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the auxiliary duties of customs leviable under this section in respect of any goods as they apply in realation 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 94:
[Amendments incorporated in the Central Excises and Salt Act, 1944].
SECTION 95:
[Amendments incorporated in the Central Excises and Tariff Act 1985]
SECTION 96: SPECIAL DUTIES OF EXCISE
(1) In the case of goods chargeable with a duty of excise under the Central Excises Act as amended from time to time read with any notification for the time being in force issued by the Central Government in relation to the duty so chargeable (not being a notification providing for any exemption for giving credit with respect to, or reduction of duty of excise under the said Act on such goods equal to, any duty of excise under the said Act or the additional duty underSection 3 of the Customs Tariff Act-, already paid on the raw material or component parts used in the production or manufacture of such goods), there shall be levied and collected a special duty of excise equal to ten 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, 1988 except as respects things done or omitted to be done before such cesser; andsection 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 chargeable on such goods under the Central Excises Act or any other law for the time being in force.
(4) The provisions of the Central Excises Act, and the rules made 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 special duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that Act or those rules, as the case may be.
SECTION 97:
[Amendment incorporated in the Additional Duties of Exicse (Goods of Special Importance) Act 1957]
SECTION 98:98-105
SECTION 106: AMENDMENT OF ACT 47 OF 1974
Amendments in the schedule tothe Oil Industry (Development) Act, 1974-, would be found incorporated in the said Act].
SECTION 107: AMENDMENT OF ACT 62 OF 1986
- [Incorporated in the Principal Act].
SCHEDULE 01: THE SCHEDULE
PART 01: INCOME-TAX
Paragraph A Sub-Paragraph I In the case every individual or Hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not every artificial juridical person referred to in sub-clause (vii) of clause (31) ofSection 2 of the Income-tax Act-, not being a case to which Sub- Paragraph II of this Paragraph or any other Paragraph of this Part applies.---:___________________________________________________________________________________________________________ Rates of income-tax ___________________________________________________________________________________________________________ (1) where the total income does not exceed Nil; Rs. 18,000 (2) where the total income exceeds Rs. 18,000 25 per cent. of the amount by which, the total income but does not exceed Rs. 25,000 exceeds Rs. 18,000; (3) where the total income exceeds Rs. 25,000 Rs. 1,750 plus 30 per cent of the amount by which but does not exceed Rs. 50.000 the total income exceeds Rupees 25,000; (4) where the total income exceeds Rs. 50.000 Rs. 9,250 plus 40 per cent. of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 50,000; (5) where the total income exceeds Rs. 1,00,000 Rs. 29,250 plus 50 per cent. of the amount by which the total income exceeds Rupees 1,00,000. ____________________________________________________________________________________________________________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, 1987 exceeds Rs. 18,000,---_________________________________________________________________________________________________ Rates of income-tax _________________________________________________________________________________________________ (1) where the total income does not exceed Nil; Rs. 12,000 (2) where the total income exceeds Rs. 12,000 25 per cent. of the amount by which the total income but does not exceed Rs. 20.000 exceeds Rs. 12,000; (3) where the total income exceeds Rs. 20,000 Rs. 2,000 plus 30 per cent. of the amount by which but does not exceed Rs. 40,000 the total income exceeds Rupees 20,000; (4) where the total income exceeds Rs. 40,000 Rs. 8,000 plus 40 per cent. of the amount by which but does not exceed Rs. 60,000 the total income exceeds Rupees 40,000; (5) where the total income exceeds Rs. 60,000 Rs. 16,000 plus 50 per cent. of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 60,000; (6) where the total income exceeds Rs. 1,00,000 Rs. 36,000 plus 55 per cent. of the amount by which the total income exceeds Rupees 1,00,000. ________________________________________________________________________________________________________________Paragraph B In the case of every co-operative society, ---______________________________________________________________________________________________________________________ Rates of income-tax ______________________________________________________________________________________________________________________ (1) where the total income does not exceeds 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 the total income exceeds Rupees 10,000; (3) where the total income exceeds Rs. 20,000 Rs. 4,000 plus 40 per cent. of the amount by which which the total income exceeds Rs. 20,000. ______________________________________________________________________________________________________________________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 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 hot exceed Rs. 50,000 the total income exceeds Rupees 25,000; (4) where the total income exceeds Rs. 50,000 Rs. 2,500 plus 15 per cent. of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 50,000; (5) where the total income exceeds Rs. 1,00,000 Rs. 10,000 plus 24 per cent. of the amount by which the total income exceeds Rupees 1,00,000. ______________________________________________________________________________________________________________________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. 6,00 plus 7 per cent. of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rupees 25,000; (4) where the total income exceeds Rs. 50,000 Rs. 2,350 plus 13 per cent. of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 50,000; (5) where the total income exceeds Rs. 1,00,000 Rs. 8,850 plus 22 per cent. of the amount by which the total income exceeds Rupees 1,00,000. ______________________________________________________________________________________________________________________Explanation.--- For the purposes of this Paragraph, "registered firm" includes an unregistered firm assessed as a registered firm under clause (b) ofsection 183 of the Income-tax Act-. Paragraph D In the case of every local authority, --- Rate of income-tax On the whole of the total income 50 per cent. Paragraph E In the case of a company,----_________________________________________________________________________________________________________________________ Rates of income-tax _________________________________________________________________________________________________________________________ I. In the case of a domestic company,--- (1) where the company is a company 50 per cent. of the total income; in which the public are substantially interested,--- (2) where the company is not a company in which the public are substantially interested--- (i) in the case of trading company or 60 per cent. of the total income, an investment company (ii) in any other case 55 per cent. of the total income, II. In the case of a company other than a domestic company,--- (i) on so much the total income a 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 31 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 hut before the 1st day of April, 1976, and where such agreement has, 50 per cent.: in either case, been approved by the Central Government (ii) on the balance, if any of the 65 per cent. total income ____________________________________________________________________________________________________
PART 02: RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES
In every case in which under the provisions ofsections 193-,194-,194A-,194B-,194BB-,194D-and195 of the Income-tax Act-, tax is to be deducted at the rates in force, deduction shall be made from the income subject to deduction at the following rates :----------------------------------------------------------------------------------------------------------------- Rate of Income-tax 1. In the case of a person other than a company--- (a) where the person is resident in India--- (i) on income by way of interest 10 per cent. other than "Interest on securities" (ii) on income by way of winnings 40 per cent.; from lotteries and crossword puzzles (iii) on income by way of winnings 40 per cent.; from horse races (iv) on income by way of insurance 10 per cent.; commission (v) on income by way of interest payable on --- 10 per cent.; (A) any security, other than a . tax-free secutiry, of the Central or a State Government; (B) any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a Central. State or Provincial Act; (C) any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 and any rules made thereunder. (vi) on any other income (excluding 20 per cent.; interest payable on a tax-free security) (b) where the person is not resident in India (i) in the case of non resident Indian- (A) on investment income and long 20 per cent.; term capital gains (B) on income by way of interest 15 per cent.; payable on a tax-free security (C) on the whole of the other Income-tax at 30 per cent. of the amount of the income 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; (ii) in the case of any other person,--- (A) on the income by way of 15 per cent.; interest payable on a tax-free security (B) on the whole of the other Income-tax at 30 per cent. of the amount of the income 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 --- (i) on income by way of interest 20 per cent.; other than "lnterest on securities" (ii) on any other income (excluding. 21.5 per cent.; interest payable on a tax-free security) (b) where the company is not a domestic company--- (i) on income by way of dividends 25 per cent.; payable by any domestic company (ii) on income by way of interest 25 per pent.; payable by Government or an Indian concern on money borrowed or debt incurred by Government or the Indian concern in foreign currency (iii) on income by way of royalty payable 30 per certt.; by Government or an Indiar oncern 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 licence) 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. (iv) on income by way of royalty [not being royalty of the nature referred to in sub-item (b) (iii)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and which has been approved by the Central Government,--- (A) where the agreement is made after 50 per cent.; the 31st day of March, 1961 but before the 1st day of April, 1976 (B) where the agreement is made after 30 per cent.; the 31st day of March, 1976- (v) on income by way of fees for technical services payable by an Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and which has been approved by the Central Government--- (A) where the agreement is made 50 per cent.; after the 29th day of February, 1964 but before the 1st day of April, 1976 (B) where the agreement is made 30 per cent.; after the 31st day of March. 1976 (vi) on income by way of interest payable 44 per cent.; on a tax-free security (vii) on any other income 65 per cent. -----------------------------------------------------------------------------------------------------------Explanation. --- For the purposes of this Part, "investment income" "long-term capital gains" and "non- resident Indian" shall have the meanings assigned to them in Chapter XII-A of the Income-tax Act.
PART 03:
Rates for calculating or charging income-tax in certain cases, deducting income-tax from income chargeable under the head "Salaries" or any payment referred to in sub-section (9) ofsection 80E-and computing "Advance tax". In cases in which income-tax has to be calculated under the first proviso to sub-section (5) ofsection 132 of the Income-tax Act-or charged under sub-section (4) ofsection 172-or sub-section (2) ofsection 174-orsection 175-or sub-section (2) ofsection 176-of the said Act or deducted undersection 192-of the said Act form income chargeable under the head "Salaries" or deducted under sub-section (9) ofsection 80E-of the said Act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed, at the rate or rates in force, such Income-tax or, as the case may be, "advance tax" (not being "advance tax" in respect of any income chargeable to tax under Chapter XII or Chapter XIIA orsection (1A)-ofsection 161-orsection 164-orSection 164A-orSection 167A of the Income-tax Act-at the rates as specified in that Chapter or section), shall be so calculated, charged, deducted or computed at the following rate or rates : Paragraph A Sub-Paragraph I In the case of every individual or Hindu undivided family or unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of Cl. (31) ofsection 2 of the Income-tax Act-, not being a case to which Sub- Paragraph II of this Paragraph or any other Paragraph of this Part applies, ---_____________________________________________________________________________________________________________ Rates of income-tax _____________________________________________________________________________________________________________ (1) where the total income does not exceed Nil; Rs. 18,000 (2) where the total income exceeds Rs. 18,000 25 per cent. of the amount by which the total amount but does not exceed Rs. 25,000 exceeds Rs. 18,000; (3) where the total income exceeds Rs. 25,000 Rs.1,750 plus 30 per cent. of the amount by which but does not exceed Rs. 50,000 the total income exceeds Rupees 25,000; (4) where the total income exceeds Rs. 50,000 Rs.9,250 plus 40 per cent. of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 50,000; (5) where the total income exceeds Rs. 1,00,000 Rs.29,250 plus 50 per cent. of the amount by which the total income exceeds Rupees 1,00,000; _____________________________________________________________________________________________________________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, 1988 exceeds Rs. 18,000,---_____________________________________________________________________________________________________________ Rates of Income-tax _____________________________________________________________________________________________________________ (1) where the total income does not exceed Nil; Rs. 12,000 (2) where the total income exceeds Rs. 12,000 25 per cent. of the amount by which the total income but does not exceed Rs: 20,000 exceeds Rs. 12,000; (3) where the total income exceeds Rs. 20,000 Rs.2,000 plus 30 per cent. of the amount by which but does not exceed Rs. 40,000 the total income exceeds Rupees 20,000; (4) where the total income exceeds Rs. 40,000 Rs. 8,000 plus 40 per cent. of the amount by which but does not exceed Rs. 60,000 the total income exceeds Rupees 40,000; (5) where the total income exceeds Rs. 60,000 Rs. 16,000 plus 50 per cent. of the amount by which but does not exceed Rs. 1,00,000 the total income exceeds Rupees 60,000; (6) where the total income exceeds Rs. 1,00,000 Rs. 36,000 plus 55 per cent. of the amount by which the total income exceeds Rupees 1,00,000. _____________________________________________________________________________________________________________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 Rupees. 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 Rupees 20,000. _________________________________________________________________________________________________________________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 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 Rupees 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 Rupees 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 Rupees 1,00,000. _________________________________________________________________________________________________________________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 notless 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 Rupees 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 Rupees 50,000, (5) where the total income exceeds Rs.' 1,00,000 Rs. 8,850 plus 22 percent, of the amount by which the total income exceeds Rupees 1,00,000. _________________________________________________________________________________________________________________Explanation --- For the purposes of this paragraph "registered firm" includes an unregistered firm assessed as a registered firm under Clause (b) ofSection 183 of the income-tax Act-. Paragraph D In the case of every local authority,--- Rate of Income-tax On the whole of the total income 50 per cent. Paragraph E In the ease of a company,---_________________________________________________________________________________________________________________ Rates of Income-tax _________________________________________________________________________________________________________________ I. In the case of a domestic company,--- (1) where the company is a company 50 per cent of the total income; in which the public are substantially interested,--- (2) where the company is not a company in which the public are substantially interested,--- (i) in the case of trading company 60 per cent. of the total income; or an investment company (ii) in any other case 55 per cent. of the total income; II. In the case of a company other than a domestic company,--- (i) on so much of the total income as consists of --- (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976, or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Govern- ment 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 per cent.; either case, been approved by the Central Government. (ii) on the balance, if any, of the total income 65 per cent. _________________________________________________________________________________________________________________
PART 04: RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME
Rule 1. --- Agricultural income of the nature referred to in sub-clause (a) of clause (1) ofsection 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 ofsections 57-to59-of that Act shall, so far as may be, apply accordingly : . Provided that sub-section (2) ofsection 58-shall apply subject to the modification that the reference tosection 40A-therein shall be construed as not including a reference to sub-sections (3) and (4) ofsection 40A-. Rule 2. --- Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c)of clause (1) ofSection 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-unkind 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 ofsection 30-,31-,32-,34-,36-;37-,38-,40-,40A-[other than sub- sections (3) and (4) thereof),41-,43-, and43A of the Income- tax Act-shall, so far as may be, apply accordingly. Rule 3. --- Agricultural income of the nature referred to in sub-clause (c) of clause. (1) ofsection 2 of the Income-tax Act-, being income derived from any building required as a dwelling house by the receiver of the rent or revenue or .the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from house property" and the provisions ofsections 23-to27-of that Act shall, so far as may be, apply accordingly : Provided that sub-section (2) of the saidsection 23-shall apply subject to the modifications that the references to "total income" therein shall be construed as references to net agricultural income and that the words, figures and letters "and before making any deduction under Chapter VIA" shall be omitted. 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 withRule 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 5. --- Where the assessee is a partner of a registered firm or an unregistered firm assessed all a registered firm under clause (b) ofsection 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 saidsection 183-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 but has any agricultural income, then, the agricultural income or loss of the firm shall be computed in accordance with these rules and his share in the agricultural income or loss of the firm shall be computed in the manner laid down in sub-section (1), sub-section (2) and sub-section (3) ofsection 67 of the Income-tax Act-and the share so computed shall be regarded as the agricultural income or loss of the assessee. Rule 6. --- 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 the assessee. Rule 7. --- 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 partner of an unregistered firm which has not been assessed as a registered firm under clause (b) ofsection 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 be set off against any income of the assessee from any other source of agricultural income. Rule 8. --- 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 9. --- (1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1987, 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 relevant to the assessment years commencing on the 1st day of April, 1979 or the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of April, 1982, or the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 is a loss, then, for the purposes of sub-section (2) ofsection 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, 1979, 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, 1980 or the 1st day of April,1981 or the 1st day of April, 1982, or the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986, (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1980, 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, 1981 or the 1st day of April, 1982, or the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986, (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1981, 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, 1982, or the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986, (iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1982, 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, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986, (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1983, 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, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986, (vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1984, to the extent, if any, such loss has not been set off against the agricultural income for the previous year commencing on the 1st day of April, 1985 or the 1st day of April, 1986, (vii) 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 of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 1986 and, (viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1986, 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 1987. (2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 1988 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 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 anyone or more of the previous years relevant to the assessment years commencing on the 1st day of April, 1980 or the 1st day of April, 1981 or the 1st day of April, 1982 or the 1st day of April, 1983 or the 1st day of April, 1984 or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, is a loss, then, for the purposes of sub-section (6) ofSection 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, 1980, 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, 1981 or the 1st day of April, 1982 or the 1st day of April, 1983 or the 1st day of April, 1984, or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1981, 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 1982 or the 1st day of April, 1983 or the 1st day of April, 1984, or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1982, 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, 1983 or the 1st day of April, 1984, or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, (iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1983, 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, 1984, or the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1984, to the extent, if any, such loss has not been set off against the agricultural income of the assessee for the previous year relevant of the assessment year commencing on the 1st day of April, 1985 or the 1st day of April, 1986 or the 1st day of April, 1987, (vi) 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, (vii) 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, and (viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 1987, 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, 1988 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) ofsection 67 of the Income-tax Act-as exceeds his share of profits, if any, of the previous year in the firm, or entitle any partner to the benefit of any portion of the said loss (computed in the manner aforesaid) which is not 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 by 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 anything contained in this rule, no loss which has not been determined by the Income-tax Officer under the provisions of these rules, or the rules contained inPart 4 of the First Schedule to the Finance Act, 1979,-or ofthe First Schedule to the Finance (No. 2) Act, 1980-, orthe First Schedule to the Finance Act, 1981-, or ofthe First Schedule to the Finance Act, 1982-, or ofthe First Schedule to the Finance Act 1983-or ofthe First Schedule to the Finance Act, 1984-or ofthe First Schedule to the Finance Act 1985-or ofthe First Schedule to the Finance Act, 1986-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 computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil. Rule 11. --- The provisions of the Income-tax Act relating to procedure for assessment (including the provisions ofsection 28A-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 Off'icer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.
SCHEDULE 02: THE SCHEDULE
(SeeSection 92-) [Incorporated in the Act]
SCHEDULE 03: THE SCHEDULE
[Seesection 95-] [Already incorporporated in Principal Act Central Excise Tariff' Act]
SCHEDULE 04: THE SCHEDULE
(Seesection 99-) [Incorporated in the Additional Duties of Excise Act]
