 the finan(je bill, 19'j9(as introduced in lok sabha)  arrangement of clauses chapter i pbeldlinaay clauses1 sbort title and commencement  chapter n rates of income-tax2 income-tax  chapter m dulect taus income-leu3 amendment of section 10 4 amendment of section 35b 5 amendment of section 35cca 6 amendment of section 36 7 amendment of section 37 8 amendment of section me 9 amendment of section 64 10 amendment of section 8oc 11 insertion of new section sogga 12 amendment of section 8oj 13 insertion of new section 8ojja 14 amendment of section 80p 15 insertion of new section 8oqqa 16 amendment of section 208 17 amendment of section 209a  clauses18 amendment of section 212 19 amendment of section 218 20 amendment of section 245d 21 amendment of section 246 22 consequential amendments to certain sections 23 amendment of section 4 24 amendment of· section 22d 25 amendment of section 23 26 amendment of schedule i 27 amendment of act 18 of 1958  chapter iv indjaect taus28 amendment of act 51 of 1975 29 amendment of act 1 of 1944 30 amendment of act 58 of 1957 31 auxiliary duties of customs 32 special duties of excise  chapter v fohuln tuva tax33 extent and commencement 34 - definitions 35 foreign travel tax 36 power to exempt 37 passenger not to be permitted to board ship or aircraft without payment of foreign travel tax 38 peultifls 39 protection of action taken in good faith 40 power to make rules 41 rules and notifications to be laid before parliament 42 cesser of operation of chapter vn of act 32 of 1971 and aaving  clauses43 amendment of act 6 of 1898 44 amendment of act 10 of 1963 45 amendment of act 21 of 1973 46 amendment of act 38 of 1974 the first schedule the second schedule the third schedule the fourth schedule  the finance bill, 1979 a billto give effect to the financial proposals of the central govemment for the firurncial year 1979-80 be it enacted by parliament in the thirtieth year of the republic of india as follows:- chapter i preliminary5 1 (1) this act may be called the finance act, 1979 short ti tie !lad commencement (2) save as otherwise provided in this act, sections 2 to ?:1 and sections 44, 45 and 46 shall be deemed to have come into force on the 1st day of april, 1979  chapter n10  rates of incom  taxincome-tax z (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 part i of the first schedule and shall be increased, -15 (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 lor sub-paragraph n 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 total income, and the total income exceeds ten thousand rupees then, -5 (/i) the net agricultural income sball be taken into account in the manner provided in clause (b) (that is to say as if the net agricultural income were comprised in the total income after the first eight thousand rupees of the total income but without being liable to tax), only for the 10 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 15 sball be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in sub-paragraph lor as the case may be sub-paragraph n of the said paragraph a, as if such aggregate income were the total income: 20 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 lor, as the case may be, sub-paragraph n of the said paragraph a and the provisions relating to 25 surcharge on income-tax in the said sub-paragraphs shall not apply; (ii) the net agricultural income sball be increased by a sum of eight thousand rupees and the amount of income-tax shall be determined in respect of the net 30 agricultural income as so increased at the rates spec1f1ed in sub-paragraph lor, as the case may be, sub-paragraph n of the said paragraph a, as 11 the net agricultural income as so increased were the total income: provided that for the purposes of determining the 35 amount of income-tax in accordance with this sub-clause, the provisions of clause (i) and clause (ii) of the proviso below sub-paragraph lor, as the case may be, sub-paragraph n of the said paragraph a and the provisions relating to surcharge on income-tax in the said sub-40 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): 5 provided that where the sum 80 arrived at exceeds seventy per cent of the amount by which the total income exceeds ten thous8dd rupees, the excess shall be disregarded; 10 (iv) the amount of income-tax determined in accordance with sub-clause (iii) shall be increased by a surcharge (or purposes of the union calculated at the rate of fifteen per cent of such income-tax 8dd the sum 80 arrived at shall be the income-tax in respect of the total income 15 (3) in cases to which the provisions of chapter xu or 43 of 1961 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 20 rates as specified in that chapter or section, as the case may be (4) in cases in which tax has to be deducted under sections 193, 194, 194a, 194b, 194bb, 194d and 195 of the income-tax act at the rates in force, the deduction shall be 25 made at the rates specified in part u 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 udder sub-section (4) of section 172 or sub-sectjon (2) of 30 section 174 or section 175 or sub-section (2) of section 176 of the said act or deducted udder 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 amy payment referred to in the said sub-section (9) or in which the 35 "advance tax" payable under chapter xvu-c of the said act has to be computed, at the rate or rates in force, such incometax or, as the case may be, "advance tax" shall be 80 calculated, charged, deducted or computed at the rate or rates specified in part m of the first schewle: 40 provided that in cases to which the provisions of chapter xli 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-par8kj'llph n of paragraph a of part m of the first schedule applies, where the assessee has in the previous year or, if by virtue of any provision of the mcome-tax act income-tax is to be charged in respect of the income of a period other than the previous 5 year in such other period, any net agricultural income in addition to total income and the total income ~ceeds ten thousand rupees then in calculating income-tax under the first proviso to sub-section (5) of section 132 of the incometax act or in charging income-tax under sub-section (2) of 10 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 xvn-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 15 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 beidg liable to tax), only for the purpose of calculating, charging or computing such income-tax or, as the case may be "advance tax" in 20 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:-(0 the total1ncome and the net agricultural income shall be aggregated and the amount of income-tax or 25 "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 n of the said paragraph a as if such aggregate income were the total income: 30 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 lor, as the case may be, sub-paragraph n of the said paragraph a and the 35 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 1housand rupees and the amount of income-tax or "advance tax" shall be determined in 40 respect of the net agricultural income as so increased at the rates specified in sub-paragraph lor, as the case may be, sub-paragraph n of the said paragraph a, as if the net agricultural income as so increased were the total income: 45 provided that for the purposes of determlnjdg the amount of mcome-tax or "advance tax" in accordadoe with this sub-clause, the provisions of clause (i) add clause (ii) of the proviso below sub-paragraph i 5 or, as the case may be, sub-paragraph d of the sald paragraph a add the provisions reladng to surcharge on inoome-tax in the said !!lib-paragraphs shall dot apply; (iii) the amount of mcome-tax or "advance tax" 10 determined in accordance with sub-clause (i) shall be reduced by the amount of inoome-tax or, as the case may be, "advance tax" determined in accordance with sub-clause (ii): provkled that where the' sum so arrived at exceeds 15 sixty 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 or "advance tax" determined in accordance with sub-clause (iii) shall 20 be increased by a surcharge for purposes of the union calculated at the rate of twenty per cent of such incometax or as the case may be, "advance tax" and the sum so arrived at shall be the inoome-tax or, as the case may be, "advance tax" in respect of the totallnoome 25 (7) for the purposes of this section and the first schedule -(/i) "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 iiloome-tax act; (b) "domestic company" means an indian company, or any 30 other company wh1ch, in respect of its income liable to income-tax udder 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 (mcluc:ung dividends on 35 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 ox 40 in the construction of ships or in the mauuf&oture or processing of goods or in mining etpltllujtitm - por the purpo_ of thi_ olaulmi, a oompany shall be deemed to be ma1dly eapged in the bulnes of galeration or distrlbut10n of electrloity or any other form of power or in the ooilstruct1on of iiilipe or in the ld8ilufaoture or prooeuldg of aoods or 5 in mining, if the inoome attributable to any one or more of the ai»resa1d activities included in its total inoome of the previous year <as oomputed before maldng any deduction 1ulder chapter via of the idoome-tax act) i8 dot less than gfty-one per cent of suoh total inoomei 10 (ei) ''insurance oomms,lon" means any remuneration or reward, whether by way of oommis8ion or otherwi  for solioltlng or proourlng insuranoe busidess (lnoludjng busines8 relating to the oontiduance, renewal or revival of polioies of insuranoe)" 15 20 (e) ''net agricultural income", in relation to a person, means the total amount of agrioultural income, from whatever souroe derived, of that person computed in aocordanoe with the rules contained in part "iv of the first schedule i (f) "tu:-free 88ourlty" means any 880urlty of the central govemment issued or declared to be income-tax free or any security of a state govemment issued income-tax free the income-tax whereon is payable by the state govel'dld8dt i 25 (ii) all other words and expressions used in this sectton or in the first schedule but dot defined in this subsection and defined in the income-tax act shall have the meanjngs respectively assigned to them in that act 30  chapter m dluct tausincollle-t4r  a in section 10 of the income-tax aot,-(a) in olause (6), in the ezpltllujtwn to sub-clause (liiia) with effect from the 1st da,y of june 1979 -35 (i) in clause (ii) the word "or" shall be inserted at the end; (ii) after clause (it) the following clause shall be inserted, daiilely:-"(iii) sucb other field as the cedtral government mav, bavidg regard to the avi1labiuty of ldd1ans baving specialised knowledge and experiedce therein the needs of the country and other relevaat circumstuces, by doufication in the official gazette specify, "; (b) in clause (15), in sub-clause(u) , the fonowing proviao shan be 1dserted with effect from the 1st dav of april, 1980, namely:-10 ''provided that where in the case of an &8ses8ee the 1dterest on deposits in a public account of the nature referred to in item (3) in the table below rule 3 of the post office savinga banks rule8 1966 exceeds two tbou88dd two hundred and fifty rupees the amount of interest on sucb depo8it8 that 8hall not be idc luded in the totai1ncome of the asse88ee udder this 8ub-clause shall be two thousand two hundred and fifty rupees;"; 20 (,) after clause (23b) the following clauses 8hall be inserted and sball be deemed always to bave been inserted namely:-215 "(23bb)any lncome of an authority (whether known as the khadi and village lddustries board or by any other name) estabusbed in a state by or under a state or provincial act for the development of khadi or villap industries in the state 61 oj 1956 30 elplgn4tton -- for the purposes of this c]aus~ ''khadi'' and ''v1llage industries" have the mean1dgs respectively &8signed to them in the kbadi and village industries commission act, 1956; 36 40 21 of 186() (23bba) any income of any body or authority (wbether or not a body corporate or corporation sole) establisbed, constituted or appofdted by or under any central, state or prov1dcial act which provides for the administrauon of any one or more oftbe following tbat is to sry public reugious or charitable trusts or endowments (including mglhs, temples 8i'rdwlrls, wufs, cburcbes, synagogues, agiaries or otber places of public religlous 1iiior8hip) or societies for religious or charitable purposes registered as such under the societies registration act, 1860 or any otber law for the time being in force: provided that nothidg in this olause aball be oodbtrued to exempt from tax the idoome of any trust endowmedt or society referred to therein,' - a8e __ t of  in section 36b of the income~ax act with effect from the _ectloa 3511 1st day of april, 1988,,-(0) in sub-section (1), in clause (b), in sub-clause (il, the words, figures and letters " where such expenditure is incurred before the 1st da,y of april, 1978"shall be omitted, (b) sub-section (ia) shall be omitted aldidclatedt of l in section 35cca of the income-tax act with effect from 10 hctiod 3scca the 1st da,y of june 1979,-(ii) for sub-section (i) the followidg sub-section shall be substituted namely:-tt( 1) where an as88ss88 idcurs any expedditure by way of payment of any sum -115 (ii) to an association or 1dat1tut10n, which baa &8 lta ob3ect the undertaking of any programme of rural developmej&, to be used for carrying out any programme of rural developmeat approved by the prescribed authortty;or 20 (b) to an usociation or 1dst1tuuon which baa as ita ob3ect the tra1d1dg of persons for implemeating programmes of rural developmeut 26 the assessee ahall, subject to the provisions of sub-section (2) be allowed a deduction of the amollllt of such ekp8nd1-ture 1dcurred during the previous year "; (b) in sub-aect1on(2h for the portion beginning with the words ''this section appues tt and endidg with the words "in this behalf by the prescribed authority:", the following shall be substituted, namely:-30 " the deduction under sub-section (1) shall iiot be allowed wjth respect to expenctiture by way of pa,yment of any sum to any association or 1n8utution, unless such association or 1d8tltution is forthe time being approved in this behalf by the prescribed adhority:" 36 ie in section 36 of the income-tax act in sub-section (1) ajdeddmatoi with effect from the 1st day of april 1980-section 36-(4) after clause (i) the following clause shall be inserted namely:-5 "('4) the amount of any premium paid by a federal milk co-operative society to effect or to keep in force an insurance on the life of the cattle owned by a member of a co-operative society being a primary society engaged in supplying milk raised by its members to such federal 10 milk co-operative society;", (b)i after clause (vii) the following clause shall be inserted; namely:-'(viia) in respect of any provision for bad and doubtful debts made by a scheduled bank in relation to advances 15 made by its rural branches an amount not exceeding one and a half per cent of the aggregate average advances made by such branches computed in the prescribed manner explghcltion -for the purposes of this clause  -20 (i) "rural branch" means a branch of a scheduled bank situated in a place which has a population of not more than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year; 25 (ii) "scheduled bank" has the same meaning as in the erplgft4tion at the end of clause (b) of sub-section (2) of section 11, but does not include a co-operative bank;'; (el in clause (viii) for the portion beginning with the words "agricultural development in india" and ending with the words 30 "carried to such reserve accoudt:" the following shall be substituted namely:-"agricultural development in india, an amount not exceeding forty per cent of the totallncome (computed before making any deduction under chapter via) carried to such reserve 35 account:"  7 in section 37 of the income-tax act, in erplatllluon i below amendment of sub-section (3b) for the wrds " is certified by the prescribed hctiaa 37 authority as not exceeding" th8 words "does not exceed" shall be substituted   ld secticm me of the ldcome~ act,-(a) in sub-section (3) after cla1l8e (b) ad before the eqltdultlon, the following proviso shall be 1n8erted, namely:-''provided that nothing in this sub-section shall appl,y to or in relation to the additional comped8at1on or, as the case mav be, the add1t1onal consideration received by the assessee after the 28th day of february, 1979 "; (b) after sub-section (6), the following sub-section shall be inserted, dame1y:-10 " (7) nothing in this section shall apply to or in relation to any capital ga1d ariaing from any transfer of a capital asset made after the 28th ~ of february, 19'19 " 16  i in section 64: of the income-tax act with effect from the 1st ~ of april 1980,- (a) in sub-section ( i), -(il in explcllatioft i" for the words, brackets add figure "for the purposes of clause (i)", the words brackets am figures "for the plrposes of clause (i) and clause (u)" shall be substituted; 20 (it) after elplangtion i the following explanation shall be inserted namely:-"elplanation ia • -for the purposes of clause (i) where the spouse of an individual is a beneficiary under a trust the idcome ariaing to the trustee from 26 the membership of the trustee in a firm carrying on a bus1dess in which such individual is a partner shall to the extent such income 1s for the benefit of the spouse of such individual, be deemed to be income arising indirectly to the spouse of such individual 30 from the membership of the spouse in a firm carrying on a business in which such individual is a panner "; (iii) after expl  "tion 2, the following elplanation shall be inserted namely:-"explangtioll 2al: -for the purposes of clal1se (iii), 36 where the minor child of an individual is a beneficl8ry under a trust, the idcome arising to the trustee from the membership of the trustee in a firm shall, to the extent such income is for the benefit of the minor child be deemed to be idcome arising indirectly to the minor child 40 ·from the adm •• jon of tbe minor to the bedeftt of partder-8h1p in a firm it; (b) in bub-section (2) 5 (i) after the wordb ''into the oommoo stook of tbe family", the words ''or makidg a gift of suoh 8eparate property to the family" shall be· in8erted; (ti) the explanatidn shall be iluldbered as ejplan4tidn 1 and after eqlcdl4tioil 1 as 80 nwnbered, the followidg ezpl4rull1011 shall be 1uerted, namely:-10 'elplfll4£io1l 2 - -for the purposes of this section, "income" includes 10s8 ' alii8dcbaeatof mctlaa ioc d in section 80c of the income-tax act, for sub-section (i~ the following sub-section shall be substituted with effect from the 1st day of april, 1980, namely:-15 " (l)in computing the total income of an 88sessee, there shall be deducted, in accordaoce with and subject to the provisions of this section, an amount calculated, with reference to the agregate of the sums specified in subsection (2), at the following rates, namely:-20 the whole of such aggregate; (a) where such agregate does not exceed rs 5, 000 (b) where such aggregate exceeds rs 5,000 but does not exceed rs 10, 000 rs 5000 plus 35 per cent of the amount by which wch aggregate exceeds rs 5, 000; 25 - (c) where such aggregate exceeds rs 10, 000 rs 6, 750 plus 20 per cent of the amount by which such aggregate exceeds rs10, 000 " idhrtiaa of new ilectioa 8ogga 11 in chapter via of the income-tax act, under the heading " b- deductions in respect of certain paylftmts'~ after section 8ogg, the following section shall be werted with effect from the 3 0 1st day of aprll, 1980, aame]y:-'8~ ( 1) in oojdputldg the total 1dcome of an assessee, there shall bedecboted in accordance with and subject to the provisions of this section, the sums speolfjed in bub-section (2) (2) the iujd8 referred to in ~aeotioil (1) sball be the fouowldg, amelr-(a> any bum paid by the assessee in the prev8 year to a aclentjflc research assoclatlon wblch has as ltb object the uddertaiddc of scleatlflo research or to a udlverslty, 6 college o~ other idjititltiod to be used for sclentioc rebeareb: provided tbat such association, udiverslty, oollege or ldbtltutldn lb !)r the time being approved for the puposes of clause (ti) of li1b-sectjon (1) of sectjon 36: 10 (b) any 8wd paid by the assessee in the previous year-(t) to an assoclatlon or inbtitutjon, which has as its object the undertaldng of any programme of rural ckwelopmedt, to be used for carryidg out uj programme of rural developmedt approved for the pj,r-16 poses of section 36cca: or (it) to an usoclatlon or jnstitution which has as its object the traldjdg of persons for tmplemedting programmes of rural development: provlded tbat the uaoclauon or ldbtltutlon ls for the 2 0 time being approved for the purposes of aub-section (2) of sectioll36cca (3) notwlthbtamlng anything oontalded in 1iilb-aed:lon (1)" do decl1at1on udder thlb sectlon shall be allowed in the caae of an asse8bee whose gross total lnoome ldcludes 2 5 lnoome which is chargeable under the head "profits and pjns of business or profession" (4) where a decmctlon udder this section is cla1med add allowed for an;y &8ses8medt year in respect of any payments of the datilre specloed in sub-section (2), deductjon bba11 not 3 0 be allowed in respect of such payments under any other provision of th18 act for the same or any other assessment year ' a  tof mctioo ioj 35 12 in section 800 of the income-tax act, in bub-sectlon (4), after the seoond proviso and before explanation 1, the following proviso 8hall be lnberted, name]y:-'provided also that in the case of an industrial undertaking which manjfac1ures or produces any article apeclfled in the list in the eleventh schedule, the provisions of olause (ui) shall have effect aa if for the words "thlrty-three years", 4 0 the words "thirty-one years" had been substituted ' | inaertion    | of      ||--------------|---------|| new          | section || sojja       |         |13, in the income-tax act, after section 800'j, the following section shall be inserted with effect from the 1st day of aprll, 1980, namely:-5 "800'ja where the gross total income of an assessee includes any profits and gains derived from a rosiness of growing mushrooms, not being profits and gains that are in the nature of agricultural income, there ~hall be allowed, in computing the total income of the assessee, a deduction as specified h~reunder, namely:-10 [)eduction in respect of prof! ts and pins from busineas of growinc mubbloom  (a) in a case where the amount of such profits and gains does not exceed ten thousand rupees, the whole of such amount: and (b) in any other case, one-third of the amount of 15 such profits and gains or ten thousand rupees, whichever is higher " ali1endment of aection sop u in section 80p of the income-tax act, in sub-section ( 2), in clause (c), for the words "so much of its profits and gains attrlrotable to such activities as does not exceed twenty 20 thousand iupees;", the following shall be substituted with effect from the 1st day of april, 1980, namely:-'so much of its profits and gains attributable to such activities as does not exceed,-(i) where such co-operatlve society is a consumers' 25 co-operatlve society, forty thousand rupees; md (it) in my other case, twenty thousand rupees explanation __ in this clause, "consumers i cooperative society" mems a society for the benefit of the consumers:' - | insertion    | of      ||--------------|---------|| new          | section || soqqa       |         |30 u in the income-tax act, after section 8(qq, the following section shall be inserted with effect from the 1st day of aprll, 1980, namely:-'8oqqa (1) where, in the case of an individual resident in indla, being an author, the gross total income 3 5 of the previous year relevant to the assessment year commencing on the 1st day of april, 1980, or to any one of the four assessment years next following that assessment year, includes any income derived by him deduction in respect of prole_81onal ideome of authors of text boob ill indi8ll laalual_ in the exercise of his profession on account of any lump sum consideration for the assignment or grant of any of his interests in the copyright of any book, or of royalties or copyright fees (whether receivable in lump sum or otherwise) in respect of such book there shall, in accordance with and subject to the 5 provisions of this section, be allowed, in compltlng the total income of the assessee, a deduction from such income of an amount 8cfl&1 to twenty-five per cent thereof (2) no deduction under su~sectlon (1) shall be allowed unless-10 (a) the book is either in the nature of a dictionary, thes8d ius or encyclopaedia or is one that has been prescribed or recommended as a text book, or included in the currlcumm, by any u nlversity, for a degree or post-graduate course of that university; and 15 (b) the book is written in any language specified in the eighth schecmle to the constitution or in any illch other language as the cedtral government may, by notlficatlon in the official gazette, specify in this behalf having regard to the need for promotion of pj,bl1catlon 2 0 of books of the nature referred to in clause (a) in that language and other relevaut factors elj)lancation ~ for the pj,rposes of th18 section,-(i) "author" includes a joldt author; (ii) ''lnmp illm", in regard to royalties or copyright 2 5 fees, includes an advance pllyment on aocount of illch royalties or copyrtabt fees wh1ch 1& dot retllrdable; (iii) ''0 diversity" shall have the same meaning as in the erplluujt~n to clause (ir) of section 47 r ameadmeat of 30 mctioil2~ •• in sectlon 208 of the income-tax act, in sub-section (2), in clause (b), for the lette~ and figures "rs30,000", the letter and figures "rs 20, 000" sla11 be subftltuted  11 in sectlon 209a of the income-tax act,-amendment of cue 209a (el) in bub-llectlon (1),-(i) in the opening portion, for the words "before the 3 5 date", at both the place where they occur, the words "on or before t:iaedate" aha11 be subatlt\1ted; (ii) fortbe portion beglnnldg with tile words "and s_ll pay such amount" and ending with the words and flaures ''under sectlon 211 ", the followlng shall be subbtltuted namely:-"and sball pay such amount of advance tax,-5 (i) in a case talllng under clause (a), as accords with the statement in 8(jlallnstalments on the dates applicable in his case under section 211; and (ii) in a case falllng under clause (b), as accords 10 with the estimate in equallnstalments on such of the dates applicable in his case as have not expired, or in one iiwd if only the last of such dates has not expired "; (b) in sub-section (2), for the words "at any time before 16 the date", the words "on or before the date" shall be bubbtltuted; (e) in sub-section (3) , for the words "at any time before the last lnstalment", the words "on or before the date on which the last instalment" shall be substltuted; 20 (d) in li\lb-section(4) ,-(i) lor the words "at any time before the date", the words "on or before the date" shall be substl1uted; (ii) in the proviso, for the words "before the date on which the last instalment ", the words "on or 26 before the date on which the last instalment" shall be substituted, and for the words "betbre such date", the words "on or before such date" shall be substituted; (e) in sub-section (5), for the words "before anyone of the dates", the words "on or before anyone of the 30 dates" shall be substituted •• in section 212 of the income-tax act,-(4) in sub-section (1), in the openlng portion, lor the words "at any time before the last lneta1ment", use words "on or before the date on which the last 35 instalment" shall be substltuted: (b) in sub-section (2), for the words ''before any one of the dates", the words "on or before any ode of the dates" shall be subatltuted; (c) in sub-sectjon (ja) , -(i) for the words "at any time before the date", the words "on or before the date" shall be substituted; (ii) in the proviso, for the words "before the date 5 on which the last instalment", the words "on or before thd date on which the last instalment" shall be substituted ameadment of ii in section 218 of the income-tax act, in sub-section section 218 (2), for the words "before the date", the words "on or 10 before the date" shall be substituted ameildmeat of - in section 245d of the income-tax act,-aeetiod 24sd (a) ld sub-section (1), the second proviso shan be omltted; (b) after sub-section (1), the following sub-section 15 shall be inserted, namely;-"(la) notwlthstancilng anything contained in subsection (1), an appllcatlon shall not be proceeded with under that sub-section if the commlssloner objects to the application beldg proceeded with on 20 the ground that concealment of particulars of income on the part of the appucant or perpetration of fraud by him for evading any tax or other sum chargeable or imposableudder the indian mcome-tax act, 1922, 11 of 1922, or under this act, has been established or is llkely 25 to be establlsbed by any income-tax authority, in relation to the case: provided that where the settlement commission is not satisfied with the correctness of the objection raised by the commissioner, the settlement 30 commission may, after giving the commissioner an opportunity of being heard, by order allow the appllcatlon to be proceeded with udder sub-sectlon (i) and send a copy of its order to the commissioner " am_meat of 11 in section 246 of the income-tax act, with effect 35 aectioll 246 from the 1st day of june, 1979,-(a) in sub-sectlon (2) -(i) for clause (a) the following clause shall be substituted, namely:-"(a) an order speclfled in clauses (b) to (it) 40 (both inclusive) and clauses (1) to (0) (both inclusive) of sub-section (1) or an order under section 104, made against the assessee, being a company;"; (ii) clauses (d) and (t) shall be omitted; 5 (b) after sub-section (3) and before the explanation i the following sub-sectlons shall be inserted, namely:-10 15 u (4) every appeal against an order specified in clauses (b) to (h) (both inclusive) and clauses (1) to (0) (both inclusive) of sub-section (1) made against the assessee, being a company, which is pending immediately before the 1st day of june, 1979 before an appellate assistant commissioner and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on that day to the commissioner (appeals) and the commissioner (appeals) may proceed with such appeal or matter from the stage at which it was on that day: 20 provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceedlng or any part thereof be re-opened or that he be re-heard 25 30 (5) notwithstanding anything contained in subsection (i), the board may, by order in writing, transfer any appeal which is pending before an appellate assistant commissioner and any matter arising out of or connected with such appeal and which is so pending to the commissioner (appeals) if the board ls satlsfied that it is necessary or expedient so to do having regard to the nature of the case, the oomplexities involved and other relevant considerations and the commissioner (appeals) may proceed with such appeal or matter from the stage at which it was before it was so transferred: 35 provided that the appellant may demand that before prooeedlng further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be re-heard" ii (1) the followldg amendment (beidg an amendment of a codseq1ential nature) sball be made in ihe income-tax act, namely:-in the eleventh schedule, for tbe brackets, words, figures and letter" (see section 32a)", the brackets, & words, figures uu:lletters " i:see section 32a and section 80ij(4)j" shall be substituted (2) the following amendments (being amendmeots of a consequential nature) shall be made in the income-tax act with effect from the 1st day of april, 1980, namely:-10 (a) in sub-sectlon (1) of section 20, in clause m, for the words, brackets and figures "clauses (iii),(vi) and (iii i) ", the words, brackets, flgures and letter "clauses (iii), (vi), (liii) and (viia)" sball be substituted; (b) in sub-section (3) of section 8m-15 (i) after the word, figures and letter "section 8og" the words figures and letters "or section 80gga" shall be inserted; (u) after the word figures and letters "section 8ojj", the words figures and letters "or section 80ijja" shall 20 be lnserted; (e) in sub-section (3) of section 80p,-(i) after the words, figures and letters "or section 8qjj", the words, figures and letters "or section 800'ja" shall be inserted; 2& (ii) for 1he words, figures and letters "section 800' and section 8qjj" the words, figures and letters "section 800' section 80ijj and section 800'ja" shall be substituted 30 27 of 1957 aldeadaleat of aectioa 4 ii in the w eal1h-tax act, 1957 (hereinafter referred to as the wealth-tax act) in section 4, with effect from the 1st day of aprll, 1980-(a) in sub-sectlon (ia) after the words "into the common stock of the tamlly" the words "or makjng a gift of sucb separate property to the family" shall be inserted; (b) in sub-sectlon (3), after the words, brackets, letter and figure "clause (0) of sub-section (n", the words, brackets, figure and letter "or sub-section (m)" sball be inserted 2" in section 22d of the wealth-tax act,-& amendmeat of aection 221> (0) in sub-section (1), the second proviso sball be omitted; (b) after sub-section (1), the following sub-section shall be werted, namely:-10 "(ia) notwithstanding anything codta1ned in subsection (1), an appucatlon shall not be proceeded with under that sub-seotion if the commissioner objects to the appllcatlon being proceeded with on the ground that concealment of particulars of the 1& net wealth on the part of the applicant 0 r perpetration of fraud by him for evading any tax or other sum chargeable or imposable under this act has been established or is likely to be estabusbed by any wealth-tax authority, in relation to the case: 20 provided that where the settlemejt commission is not satisfied with the correctness of the objection raised by the commissioner, the settlement commjssion may, after giving the commissioner an oppcntun1ty of being beard, by order, allow the application to be 26 proceeded with under sub-section (1) and send a copy of its order to the commissioner " ii, in section 23 of the wealth-tax act, after sub-section amead_t of (18), the following sub-section shall be inserted with effect from aactiod 23 the 1st day of june, 1979, namely:-| 30                          | "(lc)notwitbstanding anything contained    | in                         | sub-section      ||-----------------------------|--------------------------------------------|----------------------------|------------------|| (1),                        |                                            |                            |                  || the board may, by           | order                                      |                            |                  || in                          |                                            |                            |                  || writing,                    | transfer                                   | any appeal which           |                  || is                          |                                            |                            |                  || pending before an appellate | assistant                                  | commissioner and           |                  || any                         |                                            |                            |                  || matter                      | arising                                    |                            |                  || olt                         |                                            |                            |                  || of                          | or                                         | connected with such appeal |                  || add                         |                                            |                            |                  || which                       | is                                         | so                         | pedding          || to                          |                                            |                            |                  || the                         | commissioner                               | (appeals)                  |                  || if                          |                                            |                            |                  || the                         |                                            |                            |                  || 81                          | board                                      | is                         | satisfied        || it                          |                                            |                            |                  || is                          | necessary                                  | or                         | expedielt        || to                          |                                            |                            |                  || do                          |                                            |                            |                  || having                      | regard                                     |                            |                  || to                          |                                            |                            |                  || the                         | nature                                     | of                         | the              || involved and                |                                            |                            |                  || other                       | relevant                                   | considerations             | and the          || commissioner                | (appeals) may                              | proceed                    | with such appeal || matter                      | from                                       |                            |                  || the                         |                                            |                            |                  || stage                       |                                            |                            |                  || at                          |                                            |                            |                  || which                       | it                                         | was before                 | it               || 40                          |                                            |                            |                  || transferred:                |                                            |                            |                  |provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be re --heard " - 5 ajdeftdment of scbedule i b in the wealth-tax act, for part i of schedule i, the fa howing part shall be substituted with effect from the 1st day of april, 1980, namely:- "part i(1) in the case of every individual or hindu undivided family, not being a hindu undivided family to which item (2) of this 10 part applies, -ratt of tal (a) where the net wealth does not exceed rs 2, 50,000 1 per cent of the net wealth; 15 (b) where the net wealth exceeds rs 250,000 but does not exceed rs 5 00 000 rsl,250 plus 1 per cent of the amount by which the net wealth exceeds rs 2, 50, 000; 20 (e) where the net wealth exceeds rs500000 but does not exceed rs 1000,000 rs3,750 pills 2 per cent of the amount by which the net wealth exceeds rs 5,00,000; 25 (d) where the net wealth exceeds rsio,ooooo but does dot exceed rs 1500,000 rs 13,750 plus 3 per cent of the amount by which the net wealth exceeds rs 1000,000; (t) where the net wealth exceeds rs15,oo000 rs 28,750 plus 5 per cent of the amount by which the net wealth exceeds rs 15, 00, 000: provided that for the purposes of this item,-(i) no wealth-tax shall be payable where the net wealth 30 does not exceed rs 1,00000; (ti) the wealth-tax payable shall, in no case, exceed 5 per cert of the amount by which the net wealth exoeeds rs1, 00, 000 (2) in the case of every hindu undivided family which has at least one member whose net wealth assessable for the assessment year exceeds rs i, 00, 000,-rate of tax 5 ii per cent of the net wealth; ( a) where the net wealth does not exceed rs 2, 50, 000 rs3,750 plus 2 per cent of the amount by which the net wealth exceeds rs 2, 50,000; (b) where the net wealth exceeds rs 2,50,000 but does not exceed rs 5,00,000 10 (c) where the net wealth exceeds rs 5,00,000 but does not exceed rslo, 00,000 rs 8,750 plus 3 per cent of the amount by which the net wealth exceeds rs 5, 00,000; (d) where the net wealth exceeds rslo,oo,ooo rs 23,750 plus 5 per cent of the amoudt by which the net wealth exceeds rslo, 00,000: 15 provided that for the purposes of this item,-(t) no wealth-tax shall be payable where the net wealth does not exceed rsl, 00, oooi (it) the wealth-tax payable shall, in no case, exceed 5 per cent of the amount by which the net wealth exceeds 20 rsl,oo,ooo"  gift-talamendment of act 18 of 1958 21 in section 22 of the gift-tax act, 1958,aiter sub-section (lb) , the following sub-section shall be inserted with effect from the 1st day of june, 1979, namely:-25 "(ie) notwithstanding anything contained in sub-section (1), the board may, by order in writing, transfer any appeal which is pending before an appellate assistant commissioner and any matter arising out of or connected with such appeal and which is so pending, to the commissioner (appeals) if the board is 30 satisfied that it is necessary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant considerations and the commissioner (appeals) may proceed with such appeal or matter from the stage at which it was before it was so transferred: 35 provided that the appellant may demand that before proceeding further with the appeal or matter, the previous proceeding or any part thereof be re-opened or that he be re-heard "  chapl'er iv indiuct taus| amead           |                ||-----------------|------------------|| eat             |                  || of              |                  || 21             | the              || act             | 51               || the             | customs          || be              |                  || amended         |                  || in              |                  || the             | manner           || in              |                  || the             | second schedule || &               |                  || a               |                || eactment        |                  || of              |                  || act 1           |                  || of              |                  || 1944           |                  || b              |                  || the             | central          || 1944            |                  || (hereinafter    | referred         || to              |                  || 88              |                  || the             | ceutral          || be              |                  || amended         | in               || apecwed         |                  || in              | the              || third           |                  || schedule       |                  || 10              |                  || aeeadld_t       |                  || of              |                  || act 58          |                  || of              |                  || 1957           |                  || ••              | the              || importance)     |                  || act,            |                  || 1957            |                  || (hereinafter    | referred         || as              |                  || the             | additional       || duties          |                  || of              | exci8e act),     || shall           | be               || amended         | in               || in              |                  || the             | fourth           || auxiubi)'       |                  || duu_            | of               || curtoma        |                  || 16              |                  || 52              |                  || of 1962        |                  || ii             |                  || (1)             |                  || in              |                  || the             | case             || of              |                  || goods           |                  || meotioned       |                  || in              |                  || the             |                  || first           |                  || schedule        |                  || to              |                  || the             | customs          || in              |                  || that            | schedule         || 88              |                  || amended         |                  || frqol           |                  || time            | to               || be              |                  || levied          |                  || and collected   |                  || as              | an               || auxlliary       |                  || duty of         | customs          || an              | amount           || equal           |                  || to              |                  || twenty          | per              || cent           |                  || of              |                  || the             | value            || of              |                  || the             |                  || goode           |                  || as              | determided       || in              |                  || accordadce with | the              || of              |                  || section         |                  || 14              |                  || of              |                  || the             | customs          || act,            |                  || 1962            |                  || (hereinafter    | referred         || as              |                  || the             | customs act)    || (2)             |                  || sub-sect1on (   |                  || 1)              |                  || shall           | cease            || to              |                  || have effect     | after            || 31st            | 20               || day             |                  || of              |                  || march,          | 1980, except     || as              |                  || respects        | tbidgs           || done            |                  || or              | omitted          || to              |                  || be              |                  || clone           |                  || before          | such             || cesse~          |                  || add             |                  || section         |                  || 6               |                  || of              | the              || clauses         |                  || act,            | 1897,            || shall           | apply upon       || as              |                  || if              |                  || the             |                  || said            |                  || 10              | of               || sub-section     |                  || had             |                  || then            | been repoaled    || by              |                  || a cedtral act  |                  || (3)             | the              || duties          |                  || of              |                  || customs         | referred         || to              |                  || in              |                  || sub-section     |                  || 26              |                  || (1)             |                  || snall           | be               || to              |                  || any duties of   | customs          || such            |                  || goods           |                  || under           | ihe              || any             |                  || other           |                  || law             |                  || for             | the              || being           |                  || in              |                  || force          |                  |(4) the provisions of the customs act and the rules and regulations made thereunder, including those relating to refunds 30 and exelnptlons from duties, shall, 88 far as may be, apply in relation to the levy and col1ect1cm of the auxiliary duties of customs leviable under this section in respect of ad,y goods 88 they apply in relation to the levy and collection of the duties of customs on 8uch goodi udder that act or those rules and regulations, as the 35 cue may be 6 12 (lj in the case of goods chargeable wjth 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 governmedt in relation to the duty so chargeable, there shall be levied and collected a special duty of excise equal to five per cedt 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 10 of 1897 10 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-sectjon (1) shall be in additioll to any duties of excise chargeable on such goods under the central excises act, or au,y ether law for 15 the time being in force (4) the provisions of the cer&ral 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 20 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 udder that act or those rules, as the case may be  chapi'er v25 foreign travel tax aa (1) this chapter extends to the whole of india (2) it shall come into force on such date as the cemral governmem may, by notification in the official gazette, appoint m in this chapter, unless the context otherwise requires,-30 22 of 1934 (a) ''aircraft'' means an aircraft as defined in section 2 of the aircraft act, 1934 which is used (whether exclusively or not) for the carriage of passengers; 36 (b) "carrier" means the person or authority undertaking the carriage of a passenger on an idternationai journey and 1dcludes any &gedt, representative or other person acting on behalf of such person or authority; (c) "customs port" and "customs airport" mean, respectively, a port or an airport appointed as such under clause (a) of section 7 of the customs act, 1962; 52 of 1962 (d) ''international journey", in relation to a passenger, means his journey from any customs port or customs airport on board 5 any ship or aircraft to a place outside india; (e) ''passenger'' means aqy person boarding, at any customs port or customs airport, a ship or an aircraft for performing an international journey, but does ntt include-(a) a person who has arrived at such oustoms port or 10 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 15 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 anv capacity on board the ship or aircraft on the business thereof; 20 (f) "ship" means a ship used (whether exclusively or not) for the carriage of passengers foreign travel tax 25 ii f 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 chap;er referred to as the foreign travel tax)-(i) at the rate of one hundred rupees for every such journey to any place outside india other than a place in a neighbouring country; (ii) at the rate of fifty rupees for every such journey, 30 where such journey is to any place in a neighbouring country 5 explanation -for the purposes of this sub-section" ''neighbouring country" means any couatry which the central government may, having regard to the classes of persons 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 s2 of 1962 10 (2) la accordaace with the ndes made uader this chapter, the foreip travel tax shall be collected by the officers or cusktms appoiated aader the customs act, 1962, or such orficers or the ceatral goverameat or the state goventmeat or the idteraatioaal airports authority or ladla coaslftiited uader the lateraatioaal airports authority act, 1971, as may be  tborised ia this behalf by the ceatral goverament by aotl8catioa 43 of 1971 15 power to nempt 20 25 ia the orncial gazette and paid to the credit or the cea&raj goverameat • notwithstanding anything contained in this chapter, the central government may, by notification in the official gazette, and subject to stich 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 passengers 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 other special circumstances 37 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 |                | passenger      | not       ||----------------|----------------|-----------|| to             | be             | permitted || to board ship  |                |           || or             | aiacraft with- |           || out payment    | of             |           || foreign travel |                |           || tax           |                |           |penalties 30 •• ( 1) every passenger who embarks or attempts to embark on an international journey without paying the tax 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 35 aircraft, who, in contravention of the provisions of section 37 allows any passenger or passengers to board the ship or aircraft, shall be hable to a penalty not exceeding three times the amount or the aggr~gate amount of the tax payable by the passenger or passengers so allowed to board the ship or aircraft (j) 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 5 protection of action taken in good faith 10 •• no suit,or other legal proceeding shall ue against the central government and no suit, prosecution or other legal proceeding shall lie against 3i\y officer of the central government or the state government or the ldternational airports authority of india referred to in sub-section (2) of section 35 for anything in good faith done or intended to be dodtl in pursulldce of this chapter or the rules made thereunder power to make rules 40 (j) the central government may, by notwcation in the official gazette, make rules for carrying out the purposes of this chapter 15 (2) in particular, and without prejucuce to the generality of the foregoing power, such rules may provide for-  a: the collection of the foreign travel tax iacladiag the charps (or collectioa payable to ad)' state govetdmeat or tile lateraatioaal airports aadaorltyof iddia referred to in saseclloa (2\ of sectjod 35, 20 the authortties by whom adjudication of pedaltles or other fmotions mder this chapter shall be discharged, the manner in which such tax, penallles or other sums due under this chapter shall be payable, the manner in which such tax, penalties or other sums shall be collected 25 and paid to the credit of the central government and the procedure for claiming refund 01 any amount paid under this chapter; (b) the powers of officers authorised under sub-section (2) of section 36 to enter inspect and search any ship or aircraft for the purpose of carrying on any duty imposed on such officer 30 by or under this ch84ter: 2 oll974 providec\ that the provisions of the code of cr1minal procedure, 1973 relating to searches, shall, so far as they are applicable, apply in relation to searches udder rules made \dlder this cher 35 " ((;) the procedure for adjudication of penalties; (d) appeals against orders made under this cbalter, the manner in which and the time within which such appeals may be preferred and the fees payable therefor; 5 (e) 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 information shall be furnished; 10 (f) any other matter which is to be, or may be, provided for by rules under this chapter 15 rules  d notifications to be laid before parualdent 20 25 u every rule made udder this cha(ter and every notification issued under the erplanauon to sub-section (1) of section 35 or section m shall be laid as soon as may be after it is made or issued before each house of parliamedt while it is in session for a total period of thirty days wh1ch may be comprised in one session or in two or more successive sessions, and if, before the expiry of the 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 dot 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 val1dity of anything previously done under that rule or dotification 10011897 30 u chajker vd of the f1nadce (no2) act, 1971 (relating to foreign travel tax) shall cease to have effect exc as respects things dode or omitted to be done before such cesser and section 6 of the general clauses act, 189'1 shall apply upon such oesser as if the said chapter had then been repealed by a cedtral act c  of operation of chapter vn of act 32 of 1971 and •• vill"  chapter viml8cl:llalfeou8 act 6 of 189& 35 u in the first schedule to the indian post office act 1898, for the sub-headings" letters" add wletter  cards "and the entries under those sub-headings, the following shall be substituted namely:- " lettersfor a weight dot exceeding ten grams 30 paise |          |           |     |       | 15    | paise    ||----------|-----------|-----|-------|-------|-----------|| for      | every     | ten | grams | or    | fraction  || thereof, | exceeding | ten | grams |       |           | letler-cards| 25              | paise    ||-----------------|-----------|| if             |           || for             | a         || 5               |           || amendment       |           || of              |           || act 10 of 1963 |           |u in the agricultural refinance and ljevelopn::ent corporation act, 1963, after section 42, the following section shall be inserted, namely:-43 of 1961 10 7 of 1964 corporation to be exempt from incometax and surtax for a certain period "42a notwithstanding anything contained in the income-tax act, 1961 or the companies (profits) surtax act, 1964, the corporation shall not be liable to pay auy tax under either of the said acts on its income, profits or gains for the previous year relevant to the assessment year commencing on the 1st day of april, 1979 and for the four previous years next following that previous year " 15 amendment of act 21 of 1973  in section 23 of the finance act, 1973, for the words "six previous years", the words "seven previous years" shall be substituted amendment of act 38 of 1974 • in the compulsory deposit scheme (income-tax payers) act 1974-(il) in section 3, in sub-section (1), for the figures, letters 20 and words "1st day of april, 1980", the figures, letters and words "1st day of april, 1982" shall be substituted; (b) in section 4, in sub-section (1), in clause (iii), for the words, figures and letters "on the 1st day of april 1979", the words, figures, letters and brackets "on the 1st day of april, 25 197 9 and every subsequent assessment year $lot being an assessment year commencing on or jifter the 1st day of april, 1982)" shall be substituted  declaration under the provisionlll collection of tues act1931 30it is hereby declared that it is expedient in the public interest that the provisions of clauses 2s, 29, 30, 31 and 32 of this bill shall have immediate effect under the provisional collection oj taxes act, 1931 16 of 1931  the first schedule (set section 2) part i income-tax and surcharge on income-tax 5 p "'''a,,,ph a •in the cbse of every individual or hindu undivided famuy or unregistered firm or other association of persons or body of individuals, whether incorporated or not, or every artificial 10 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 n of this paragraph or any other paragraph of this part applies, - rilles df inc""'ticunil; 15 (1) where the total income does not exceed rs 8, 000 15 per cent of the amount by which the total income exceeds rs 8,000; (2) where the total income  exceeds rs 8,000 but does not exceed rs 15,000 20 (3) where the total income exceeds rs 15,000 but does not exceed rs20,000 rs 1, 050 plus 18 per cent of the amount by which the total income exceeds rs 15,000; 25 (4) where the total income exceeds rs 20,000 but does not exceed re 25,000 rs 1,950 pills 25 per cent of· the amount by which the total income exceeds rs 20,000; (5) where the total income exceeds rs 25,000 but does not exceed rs 30,000 rs 3,200 pills 30 per cent of the amount by which the total income exceeds rs 25, 000; 30 (6) where the total income exceeds rs 30,000 but does not exceed rs50,ooo rs 4,700 pills 40 per cent of the amount by which the total income exceeds rs 30,000; (7) where the total income exceeds rs 50,000 but does not exceed rs 70, 000 rs 12,700 pills 50 per cent of the amount by which the total income exceeds rs 50,000 (8) where the total income ra 22,700 plus 55 per oent of exceeds rs 70,000 but does not the amount by whioh the total exceed rs i, 00,000 idcome exceeds rs 70, oooi rs 39,200 plus 60 per oent of (9) where the total income exceeds ra 1,00,000 the amount by whioh the total 5 idcome exceeds rs 1,00,000: provided that for the purposes of this sub-paragraph,-(i) do idcome-tax shall be payable on a totallncome not exceeding rs 10,000; cii) where the total1dcome ,xceeds rs 10,000 but does 10 dot exceed rs 10, 540, the income-tax payable thereon shall not exceed seventy per cent of the amount by wbich the total income 8xc86ds rsi0,ooo the amount of income-tax computed in accordance wlth the 15 preceding provisions of this sub-paragraph shall be lncreased by a surcharge for purposes of the union calculated at the rate of fifteen per cent of such lncome-tax in the case of every ii1ddu undivided family whioh at any time 20 during the previous year bas 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,-nil; 25 (1) where the total income does not exceed ra 8, 000 (2) where the total income exceeds re 8, 000 but doe not exceed re 15,000 18 per cent of the amount by which the total income exceeds re 8, oooi (3) where the total inoome exceed ra 16,000 but does not exceed ra 20, 000 | rs    | 1,260    ||--------|----------|| phu    |          || 25     | per      || the    |          || amount | by       || the    |          || total  |          || idcome | exceeds  || aa    |          || 15,    |          || oooi   |          |(4) where the total income exceeds re 20,000 but does not exceed re 26, 000 ra 2, 510 plus 30 per cent of the amount by which the total ldcome exceeds rs 20, oooi 35 ra 4,010 plus 40 per cent of the amount by which the total income exceeds rs 25, 000; (5) where the total income exceeds re 25,000 but does dot exceed re 30,000 5 (6) where the total income exceeds ra 30,000 but does not exceed re 50, 000 | rs     | 6,        | 010         ||---------|-----------|-------------|| plus    |           |             || 50      | per       | cent       || the     | amount    | by          || income  | exceeds   | rs         || (7)     |           |             || where   | the       | totalldoome || exceeds |           |             || rs     |           |             || 50,000  | but       | does        || exceed  | ra       | 70,000      || rs     | 16,010    |             || plus    |           |             || 55      | per       | cent       || the     | amount    | by          || income  | exceeds   | rs         || oooi    |           |             || 10      |           |             || (8)     |           |             || where   |           |             || the     |           |             || total   | income    | rs         || plus    |           |             || 60      | per       | cent       || the     | amount    | by          || the     |           |             || total   |           |             || income  | exceeds   | rs         || exceeds | rs70,ooo |             |provided that for the purposes of this sub-paragraph,-(i) no income-tax shall be payable on a total income not 15 exceeding re 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 by which the total income exceeds rs 10, 000  20 surcharge on income-talthe 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 b25 in the case of every co-operative society,- rates of inco"'t--t41| (1)     | where        | the      | total    | income    ||---------|--------------|----------|----------|-----------|| does    | not          | exceed   | re      | 10,000    || 16      | per          | cent    | of       | the       || income; |              |          |          |           || exceeds | rs          | 10,000   | but      | does      || exceed  |              |          |          |           || ra     |              |          |          |           || 20, 000 |              |          |          |           || 30      | (2)          | where    |          |           || the     |              |          |          |           || total   | income       |          |          |           || rs     |              |          |          |           || i,      |              |          |          |           || 500     |              |          |          |           || plus    |              |          |          |           || 25      | per          | cent of |          |           || the     | amount       | by       | which    | the       || income  | exceeds      | rs      | 10,000;  |           || (3)     |              |          |          |           || where   |              |          |          |           || the     |              |          |          |           || total   | income       |          |          |           || exceeds | rs20,ooo    |          |          |           || rs     | 4,000        |          |          |           || plus    |              |          |          |           || 40      | per          | oent of |          |           || the     |              |          |          |           || amount  | by which the | total    |          |           || income  | exceeds      | rs      | 20, 000 |           | surcluuae on income-tlllthe amount of income-tax computed in accordance with the preceding provisions of this paragraph sball be increased by a surcharge for purposes of the union calculated at the rate of fifteen per cent of buch iocome-tax 5  p iirllsrqh c suih> iirllarqh iin the case of every registered firm, not be1dg a case to which sub-paragraph u of this paragraph appues,-rlltts of income-t4i 10 (1) where the total income nil; does not exceed rj 10,000 (2) where the total income 5 per cent of the amount by exceeds rs 10, coo but does not which the total income exceed ra 25, 000 exceeds rs 10, 000, 15 (3) where the total income rs 750 plus 7 per cent of the exceeds rs 25,000 but does not amount by which the total exceed ra 50, 000 income exceeds rs 25, 000; 20 (4) where the total income rs 2, 500 plus 16 per cent of exceeds ra 50, 000 but does not the amount by which the total exceed ra 1,00,000 income exceeds bs so, 000, (5) where the total income rs 10,000 plus 24 per cent exceeds re1,00,000 of the amount by which the total income exceeds ra 1,00,000 ~rchmbt on "'comt·t4% 25 the amount of income-tax computed in accordanoe with the preceding provisions of this sub-paragraph shall be increased by a burchaige for purposes of the union calculated at the rate of fifteen per cent of buch income-tax sub-p mclbraph ii 30 in the cue of every registered firm whose total income includes income derived from a profession carried on by it and the income 80 included is not leas toan fifty-one per cent of auoh total income,-| rates    | of    | income-tl%    ||----------|-------|---------------|| nil;     |       |               || (1)      | where | the           || doea     | not   | exceed        || rs      |       |               || 10,000   |       |               |6 |            | (2)    | where    | the    | total    | income    ||------------|--------|----------|--------|----------|-----------|| exceeds    | ra    | 10,000   | but    | does     | not       || exceed     | ra    | 25,000   |        |          |           || 4          | per    | cent    | of     | the      | amount    || which      | the    | total    | idcome | exceeds  |           || rs10,ooo, |        |          |        |          |           |10 (3) where the total income exceeds be 25,000 but does not exceed ra 50,000 | rs     | 600         ||---------|-------------|| ph,s    |             || 7       |             || per     | cent       || the     |             || amount  | by          || exceeds | rs         || rs     | 2,350       || plu's   |             || 13      |             || per     | cent       || amount  | by          || idcome  | exoeeds     || (4)     |             || where   | the         || exceeds | ra         || exceed  | ra1,       || 15      | (6)         || rs     | 8,850       || pills   |             || 22      | per         || the     | amount      || the     |             || total   |             || income  | exceeds     || exceeds | ra1,oo,ooo | surcwge on "'co"'i-tl%the amount of income-tax computed in accordance with the 20 preceding provisions of this sub-paragraph shall be increased by a surcharge for purpoaes of the union calculated at the rate of fifteen per cent of such income-tax eq'arultidn - - for the purposes of this paragraph, "registered firm" includes an unregistered firm assessed as a reg1s-25 tered firm under clause (b) of sectiod 183 of the income-tax act  p ar/lflraph din the case of every local authority,- rate of income-tgion the whole of the total income 50 per cent  surcharge on tncollle-tl%30 the amount of income-tax oomputed at the rate hereinbefore speolfled shall be increased by a surcharge for purposes of the union calculated at the rate of fifteen per cent of such 1ncometax in the c&88 of 8 oompany,- l in the case of 8 domestic oompaay,-(i) where the company is 5 - company in whicb the publlc are substantially interested,-(i) in case where the 45 per cent of the total income; total1noome does not exceed rei,oo,goo 10 fii) in 8 case where the 55 per cent of the total income; total income exceeds re 100000 (2) where the company is dot a company in whicb the 15 public are bubstadtlally laterested, -(i) in the c818 of an idduatr1al oompany_ 20 56 per cent of the total income; (> where the total  !dcome does dot exceed re 2, 00 000 60 per cent of the total 1dcome; 25 (b) where the total lacome exceeds rs 2, 00, 000 (ii) in any other case 65 per cent of the total income: provided tbat-(i) the idcome-fax payable by a domestic company being a company in which the pubuc are substantially lnterested the total income of which exceeds re 100,000, shall not 30 exceed the agregate of-(g) the income-tax which would have been payable by the company if its total 1dcome had been rs 1 00, 000 (the income of ra 1,00000 for this purpose being computed as if such income included income from vai'lous 35 source8 in the same proportion a8 the total1ncome of the company); and (b) eighty per cent of the amount by which its total idcome exceeds rs 1,00, oooi 5 (it) the income-tax payable by a domestic company, not belnc a company in which the public are substantially intere8ted, wblch is an industrial company and the total lddome of which exceeds rs 2,00,000, shall dot exceed the aggregate of-10 (4) the idcome-tax which would bave been payable by the company if its total income bad been re 2, 00, 000 (the income of rs 2,00,000 for thi8 purpose being computed as if such income included income from various sources in the same proportion as the total income of the c<dpany); and 15 (b) eighty per cent of the amount by which its total income exceedfl rs 2,00,000 d in the calle of a company other than a domestlc company,-| (t)       | on        ||-----------|-----------|| 110       |           || much      | of        || the       |           || total     |           || 20        | income    || as        |           || consists  | of-       || (4)       |           || royalties | received  || from      | an        || pursuance | of        || made      |           || by        | it        || the       |           || iad1an   |           || 25        |           || collcern  | after     || of        | march,    || but       |           || before    |           || the       |           || 1st       | day       || or        |           || 30        |           || 35        |           || (b)       |           || fees      | for       || technical | services  || from      | an        || pursuance | of        || made      | by        || it        |           || with      | the       || lddian    |           || concern   | after     || the       |           || 29th day  |           || of        | february, || but       |           || before    | the       || 1916,     |           || 60        |           || per       |           || cent     |           || i         |           || and       | where     || in        | either    || by        | the       || 40        |           || 10        |           || per       | cent     || (ti)      |           || on        |           || the       |           || balance,  |           || if        |           || any,      |           || of        | the       | s"'cluarge on incolle-tathe amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increased by a surcharge calculated at the rate of five per cent of such income-tax part d rates for deduction of tear at source in certgtn cases 10 in every case in whjch under the provisions of sections 193, 194, 194a, 194b, 194bb, 194d bdd 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 followink rates:-1dc0me-tax rate of income-tax rate of surcharge 15 1 in the case of a person other than a company-(a) where the person is resident in india-10 per cent nil; 20 (i) on income by way of interest other than ''interest on securities" 6 per cent; (ii) on income by way of 30 per cent winnings from lotteries and crossword puzzles 6 per cent; 25 (iii) on income by way of 30 per cent winnings from horse races nil; (iv} on income by way of 10 per cent insurance comm iss ion nil; 30 (v) interest on 'rights' deben-10 per cent tures issued by a company in which the pubuc are substantially interested 35 40 erplcmotwn  - for the purposes of this item, 'rights' debentures, in relation to a company, means debentures which are issued by the company for the purpose of augmenting its jodi-term resources for working capital requirements and which) according to the terms and conditions 01 issue thereot are required to be offered first to residents of lddia wbo, at the date of the offer, are holders of equity shares of the company in income-tax rate of 1dcome-tax rate of surcharge proportion, as near iy as circumstances 5 admit, to the capital paid up on those shares at that date 20 per cent 4 per cent (vi) on any other income (excluding interest payable on a tax-free security) 10 (b) where the person is not resident in india-(i) on the whole income (excluding interest payable on a tax-free security) 15 20 income-tax at 30 per cent and surcharge at 6 per cent of the amount of the income, or income-tax and surcharge on income-tax in respect of the income at the rates ptescribed in sub-paragraph lof paragraph a of part m of this schedule, if such incom e had been the total income, whichever is higher; 15 per cent 3 per cent 25 (u) on income by way of interest payable on a taxfree security 2 in the case of a company-(g) where the company is a domestic company-30 (i) on income by way of 20 per cent l 5 per cent ; interest other than "interest on securities" 225 per cent 15 per cent ; (ii) on any other income (excluding interest payable on a tax-free security) 35 (b) where the company is not a domestic company-25 per cent nil; 40 (i) on income by way of dividends payable by any domestic company income-tax rate of rate of lucome-tax surcharge (ii) on inoome by way of 40 per cent nil; royalty payable by an indian 5 coucern in pursuance of an agreement made by it with the lddlan concern after the 31st day of march, 1976, where such royalty is in 10 col18ideratlon for the transfer of all or any rights (illcludlng the granting of a licence) in respect of copyright 111 any book on a subject referred to 15 in the i'rovlso to sub-section (ja )of section u5a of the inoome-tax act, to the indian concern (iii) on inoome by way of 20 royalty ['not being royalty of the nature ref~rred to in sub-item (b) (ii)] payable by an indian concern in pursuance of an agreement 25 made by it with the indian concern and which bas been approved by the central government, -( a) where the agreement 50 per cent 375 per cent; 30 is made after the 31st day of march, 1961 but before the 1st day of aprll, 1976 (8) where the agreement is made after the 31st day 35 of march, 1976-(i) on 80 much of the 20 per cent nil; amount of such income aa col181sts of lump 8udl consideration for the transfer 40 ldcome-tu rate of rate of ldoome-tax surcbarp outside iddia of, or the 5 tmpartidg of idformatiod outside fddja id respect of, any data, documeatatiod, drawldg or epeclftcatton relatldg to any 10 patent, taveatjod, model, deslp, aecret formula or process, or tl'llde mark or similar property (2) on the balance, if "'0 per cent nil; 15 any, of such income ('11) on income by way of fees for technical services payable by an iddtan concern in p!rsu8dce of an agreement 20 made by it with the iddtan concern and which has been approved by the central government-(a) where the agreemeat 50 per cent 375 per cent ; 25 1a made after the 29th day of pebruary, 198f but before the 1st day of april, 1978 (b) where the acreemeat fo per oeat nil; 30  made after the 3111t day of march 1976 (ii) on income by way of '" per aert 33 per cent ; interest payable on a taxfree security 35 (iii) on any other income 70 per cent 525 per cedl  part mrates for calculating or chargine income-tar in certain cgses, deductinb income-tal from income chargeable under the head "salaries" or lily payment referred to in sub-section (9) of section 80e and computing  advanc e tg% - • 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 sald act from income chargeable under the head ''salaries'' or deducted under subsection (9) of section 80e of the sald act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under chapter xvu-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 xu or section 164 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 silb-p aragraph iin the case of every individual or hindu undlvlded fam fly 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 (liii) of clause (31) of section 2 of the income-tax act, not being a case to which sub-paragraph u of thls paragraph or any other paragraph of this part applies,-rates 0 f inc"" e-tal (1) where the total income nil; does not exceed rs 8,000 (2) where the total income exceeds rs 8,000 but does not exceed re 15, 000 15 per cent of the amount by which the total income exceeds ra 8,000; 35 (3) where the total income exceeds rs 15, 000 but does not exceed rs 20, 000 rs 1050 plus 18 per cent of the amount by which the total income exceeds rs15, 000; (4) where the total income rs 1,950 plus 25 per cent,of the amount by which the total income exceeds rs 20, 000; 5 exceeds rs 20,000 but does not exceed rs 25, 000 (5) where the total income exoeeds rs 25,000 but does not exceed rs 30,000 rs 3,200 plus 30 per cent of the amount by which the total income exceeds rs 25000; 10 (6) where the tota1income exceeds rs 30,000 but does not exceed rs 50,000 rs 4,700 plus 40 per cent of the amount by which the total income exceeds rs30, 000; 15 ('1) where the total income exceeds rs 50,000 but does not exceed rs 70,000 rs 12700 plus 50 per oent of the amount by which the total income exceeds rs 50 000; (8) where the total income exceeds rs 70,000 but does not exceed rs 1,00,000  rs 22,700 plus 55 per cent of the amount by which the total income exceeds rs 70,000; 20 (9) where the total income rs 39200 plus 60 per cent of the amount by which the total income exceeds rs 1,00,000: exceeds rs 1, 00, 000 provided that for the plrposes of this bub- paragraph -(i) no inoome-tax shall be payable on a total inooma not 25 exceedidg rs 10,000; (ii) where the total income exceeds rs 10,000 but does not exceed rs 12000, the income-tax payable thereon shall not exceed thirty per cent of the amount by whioh the total income exceeds rs 10, 000 30 sllrchmge on income~tcli the amount of income-tax complted in accordaooe with the preoedlng provisions of this sub-paragraph shau be inoreased by a surcbage for purposes of the union oalculated at the rate of twenty per cent of such income-tax in the oue of every bidml ulldtvlded famby which at any time mrm, the prevloua year hu at leut ode member wbose total idcome of the prevloua year relevant to the aaaeaament year oommeacm, oil the !at day of aprn 1980 exceeds re 10 000 -5 (1) where the total idcome nil; doea not exceed rs 8000 (2) where the totalillcome 18 per cent of the iuiloudt aceeda ra 8000 but does dot by wbloh the total idoome 10 exceed ra 16 000 exceeds re 8000; (3) where the totalilloome ra 1280 plus 25 per cent exceeds ra 15000 but doea dot of the amount by which the 8koeed ra 20000 totalldcome exceeds rs15 000; (4) where the total iiloome ra 2510 plus 30 per cent of 15 exceeds ra 20000 but does dot the amount by which the total exceed ra 25 000 income exceeds ra20, 000; (5) where the total income ra 4010 plus 40 per oent exceeds re 25 000 but does of the amount by which the dot excoed ra 30 000 total income exceeds 20 rs 25,000; fs) wbare the total ldoome ra 6010 plus 60 per oeat exceeda ra 30, 000 but doea dot of the amount by which the exoeed ra 60, 000 total tacome exceed8 re· 30000 25 (1) where tba total toome re 16,010 plus 66 per oeat exceeds ra 60000 but doe of the riilouiit by wlljch the total dot aceed ra 70,000 tacome exceeds ra 60000; (8) wbare the total iaoome ra z'1,010 phis 60 per ca exceeds rs 70, 000 of the ildouiii bj which the 30 total idcome exceeds rs70,000: provided that for the plrpoaea of ihla sub-paragraph-(f> do income-tu: sball be pqable ci1 a total ldcome not exceedjdg rs 10000: (if) where the total iqcome exceeds rb 10000 but does not exoeed rs13 000, the 1dcome-tu: payable thereon suli 5 dot exceed thirty per cent of the amount by whlah tm total income exceeds rs 10 000 the amount of ldoome-tu computed ia accorduoe with the preoedjdg provlslolul of we sub-parap-aph 8hall be idcreued 10 by a 8urcharp for purpo  s of the udba oalculated at the rate of twenty per cent of such iacome-tax in the case of every co-operatlve aoclety-15 15 per cent of the total lacome: (1) where the total income does not exoeed rs 10000 (2) where the total income aceeds rs 10, 000 but does dot exceed rs 20000 20 rs 1500 plus 25 per cent of the amount by which the total iaoome exceeds rs 10,000: (3) where the total iaoome exceeds rs 20000 rs 4000 plus 40 per oent of the amoudt by which the total income exceeds rs 20,000  surcharge dfi incolllt-w25 the amount of iaoome-tax computed ia accordance with the precedldg provlslons of this paragraph shall be iaoreased by a eurcharre for purposes of the union calculated at the rate of twenty per oent of such idcollle-tax  su~paragraph iin the case of every registered firm, not beidg a oue to whjch sub-paragraph n of tb1a paragraph applles,-5 rates of in"e-w (1) where the total income nil; does not exceed rs 10,000 10 (2) where the total income 5 per cent of the amount by exoeeds rs 10,000 but does dot which the total idoome exoeeds exceed rb 25,000 rs 10,000; (3) where the total income rs 750 plus 7 per cent of exceeds rs 25, 000 but does not the amount by whjch the total exceed rs 50, 000 income exceeds rs 25, 000; 15 (4) where the total income rs 2, 500 plus 15 per cent exceeds ra 50,000 but does not of the amount by which the exceed rs 1,00,000 1dtal idoome exceeds rs 50,000; 20 (5) where the total income rs 10,000 pills 24 per cent exceeds rs 1,00,000 of the amount by which the 1dtallncome exceeds rs 1,00,000  sureltwae on ineollle-tathe amount of income~ax comp!ted in acoordadce with the preoecung provisions of tbts sub-paragraph shall be increased by a surcharge for p!rposes of the union oalculated at the rate 25 of twenty per oedt of auch idcome-tu  sll~paraaraph iiin the case of every registered firm whose total income includes income derived from a profession carried od by it and the income 80 included is not less than flfty-one per cent of such total income,-nil; (1) where the total income does not exceed rs 10,000 5 (2) where the total income exceeds rs 10,000 but does not exceed rs 25,000 4 per cent of the amount by which the total income exceeds rs 10,000; (3) where the total income 10 exceeds rs 25,000 but does not exceed rs 50,000 rs 600 plus 7 per cent of the amount by which the total income exceeds rs 25,000; (4) where the total income exceeds rs 50,000 but does not exceed rs 1,00,000 15 rs 2,350 plus 13 per cent of the amount by which 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 20  surcharge on income-tarthe &n;iount of income-tax complted in accordance with the precedmg provisions of this sub-paragraph shall be increased by a surcharge for plrposes of the union calculated at the rate of twenty per cent of such mcome-tax 26 erp'tdlation - -for the plrposes of this paragraph, "registered firm" includes an unregistered firm assessed as a registered firm udder clause (b) of section 183 of the income-tax act  paragraph din the case of every local authority,-rate of incomeot41 30 on the whole of the total income 50 per cent  surcharge on '"'oifte-taxthe 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 twenty per cent of such mcome-'tax  paragrqh ein the case of a company, - rates of incollle-teui in the case of a domestic company,-(1) where the company 18 a 5 company in which the public are substantially interested,-(i) in a case where the 45 per cent of the total income; total in 00 me does not exceed rs 1,00,000 10 (ti) in a case where the total 55 per centof the total income; income exceeds rs 1,00,000 (2) where the company is not a company in which the public are subatantlally interested,-15 (i) in the case of an tndustrirl company,-(a) where the total 65 per cent of the total income; income does not exceed r8 2, 00, 000 20 (b) wbere the total 60 per cent of the total income; income exceeds rb 2~ 00,000 (it) in any other case 65 per cent of the total income: provided that -(i) the income-tax payable by a dome8tic compad,y, being a 25 company in which the public are substantially interested, the total income of wblch exceeds r81,00,000,ba11 not exoeed the aggregate of -(a) the income-tax wblch would have been payable by the company if its total1ncome bad been rbl, 00, 000 (the income 30 of rs1, 00, 000 for this purpose being computed as if such income included income from various sourceb in the bame proportion as the total income of tbe company); 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 compa'1y, not being a company in which the public are substantially interested, which 5 is an industrial company and the total income of which exceeds rs 2,00,000, shall not exceed the aggregate of-(a) the income-tax which would have been payable by the company if its total income had been rs 2, 00,000 (the income of rs 2, 00, 000 for this purpose being computed as if such 10 income il1cluded 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 rs 2,00,000 n in the case of a company other than a domestic company, -15 (t) em so much of the total income as consists of -(a) royalties received from an indian concern in pursuance of an agreement made by 20 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 25 services received from an indian concern 10 pursuance of an agreement made by it with the indian concern after the 29th day of february, 1964 but before the 1st 30 day of april, 1976, 50 per cent ; and where such agreement has, in either case, been approved by the central government 70 per cent (tt) on the balance, if any, 35 of the total income  surch4rat on incomt-taxthe amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increased by a surcharge calculated at the rate of seven am a half per cent of such income -tax 5  part iv ~ee section 2(7)(e~ rules faa computation or net agriculnjllal mcoma:rule 1 -agricultural income of the nature referred to in sub-clause (4) of clause (1) of section 2 of the income-tax act 10 shall be computed as if it were income chargeable to ldcome-tax under that act under the bead l'iileome from other sources" and the provisions of sections 57 to 59 of that act shall, so far as may be, app~ accordingly: provided that sub-section (2) of section 58 shall apply subject 15 to the modification that the reference to section 40a therein shall be construed as not inch':ilng a reference to sub-sections (3) and ( 4) of section 40a ride 2 -agriculturallncome of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1) of section 2 of the 20 ldcome-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-klnd referred to in the said sub-clause (e)jshall be computed as if it were income chargeable to lncome-tax under that act under the head "profits 25 and gains of busines8 or profession" and the provisions of sections 30,31,32,34,36,37 ,38,40,40a ~ther than subsections (3) and (4) thereoi, 41, 43, and 43a of the income-tax act shall, so far as may be, applyaccordlngly rule 3 - agricultural income of the nature referred to in 30 8ub-clause (e) of clause (1) of section 2 of the income-tax act, being ldcome derived from any building required as a dwelling bouse by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the sald subclallse (c) shall be computed as if it were income chargeable 35 to ldcome-tax under that act under tbe head "income from house property" and the provisions of sections 23 to 27 of that act shall, so far as may be, 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 be construed as references to net agricultural income and that the words, figures and letter "and before mak-5 ing 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 with rule 10 8 of the income-tax rules, 1962, and slxty per cent of such income shall ~ regarded as the asricultural income of the assessee rule s -where the assessee is a partner of a registered firm or an unregistered firm assessed as a registered firm 15 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 charge -20 able 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 25 agricultural income or loss of the firm shall be computed in the manner laid down in sub-section(l), sub-section (2) and sub-section (3) of section 67 of the income-tax act and the s hare so computed shall be regarded as the agricultural income or loss of the assessee 30 rule 6 -where the assessee is a member of an association of persons or a body of individuals (other than a hindu undivided famuy, 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 cbarge-35 able to tax in the case of an association of persons or a body of individuals (other than a hindu undivided famuy, a company or a firm) but has any agricultural income, then, the agriculturalincome or loss of the association or body shall be computed in accordance with these rules and the share of the 40 assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or 108s of the assessee rul e 7 - where the result of the oomputation 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 idcome: provided that where the assessee is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of section 183 of the income-tax act or is a member of an associatlon of persons or a body of lddividuals add 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 agrioultural income shall be deducted in computing the agrlculturallncome rule 9 -(1) where the assessee has, in the previous year relevant to the assessment year commencing on the 1st ·dav of april, 1979, 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, 1974 or the 1st day of apru, 1975 or the 1st day of april, 1976 or the 1st day of april, 1977 or the 1st day of aprllj1978, is a 1088, then, for the purposes of sub-section (2lof section 2 of this act,-(i) the loss so ocmputed for the previous year relevant to the assessment year commencing on the 1st day of april, 1974, to the extent, if any, suoh loss has not been set off against the agricultural income for the previous year relevant to the assessment year commenoing on the 1st day of april, 1975 or the 1st day of april, 1976 or the 1st day of april, 1977, or the lat day of aprll, 1978, (if) the loss so oomputed for the prevlous year relevant to the assessment year commenoing on the 1st day of april, 1975, to the extent, if any, such loss has not been set off against the agrlouuural inoome for the previous year relevant to the assessment year commencing oil the 1st day of april, 1976 or the 1st day of april, 1977, or the 1st day of aprll, 1978, (iii) the loss so computed for the previous year relevant to the assessment year oommencing on the 1st day of april, 1976, to the extent, if any, such los8 has not been 8et off against the agricultural inoome for the previous year relevant to the 5 assessment year commencing 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, if any, such loss has not been set off against the 10 agricultural income for the previous year relevallt to the assessment year oommencing on the 1st day of april, 1978, and (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1978, shall be set off against the agricultural inoome of the assessee 15 for the previous year relevant to the assessmeot year commencing on the 1st day of april, 1979  (2) where the as8essee bas, in the previou8 year relevant to the asses8ment year oommencing on the 18t day of april, 1980 or, u by virtue of any provisim ci the income-tax act, income-tax 20 is to be charged in respect of the income of a period other than that previous year, in 8uch other period, any agricultural income and the net result of the oomputauoo of the agrioultural income d the use8bee for bdy ode or more of the previous years relevant to the as8essment years oommencing on the 1st day of april, 25 1974 or the 1st day of april, 1975 or the 1st day of april, 1978 or the lat 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 subsection (6) of section 2 of this act, -(i) iile 1088 80 oomputed for the previous year relevant to 30 the uses8ment year commencing od the 1st , of april, 1974, to the extent, if any, 8uch 1088 baa not beed set off qawt the agricultural mcome for the previous year relevant to the assessment year commencing oil the 1st day of april, 1976 or the 1st day of april, 1978 or the 1st day of april, 35 1977 or the 1st day of april, 19'18 or the 1st day of april, 1979, (it) the 1088 80 computed for the previous year relevant to the asses8ment year commencing on the 1st day of april, 1975, to the extent, if any, 8uch 108s has not been set off ap1nst the agr1culturallncome for the previous year relevant to the use8sment year commencing on the 1st day of april, 18'78 or the 1st day of april, 1977 or the 1st day of april, 1978 or the 1st dav of april, 1979 (iii) the loss so oomputed 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, 6 1977 or the 1st day of april, 1978 or the 1st day of april 1979 (iv) the loss 80 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 agrlculturalincome for the previous year relevant to the 10 assessment year commencing on the 1st day of april, 197 8 or fhe 1st day of aprll, 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 agricul-15 tural 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, shall be set off against the agricultural income of the  sessee 20 for the previous year relevant to the asseument year commencing on the 1st day of april 1980 or the period aforesaid (3) where a change has occurred in the con~itutlon of a tlrm, nothing in sub-rule (1) or sub-rule (1) shall entitle the firm to set off so much of the loss proportionate to the share of a 25 retired or deceased partner computed in the manner laid down in sub-section(1) - sub-section (1) and sub-sectlon (3) of section 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 30 aforesaid) which is not apportlonable to him (4) where any person deriving any agrlculturalincome from any source has been succeeded in such capacity by another person otherwise than by 1nheruance, nothing in sub-rule (ij or sub-rule (2) shall entitle any person, other than the person 35 incurring the loss, to have it set off under sub-rule (1) or,  the case may be, sub-rule (2) (5) notwithstanding anything contained in this rule, do 1088 which has not been determined by the income-tax officer uilder the provisions d these rules, or the rules contained in part iv 40 20 of 1974 26 of 1975 86 of 1976 29 of 1977 19 of 1978 of the first scbedule to the fmance act, 1974, or of the first 8cbedule to the fldance act, 1975, or of the first schedule to the firumce act, 1976, or of the first schedule to the finance (no2) act, 1977, or of the schedule to the finance act, 197,8, 5 shall be set off under sub-rule (1) or, as the case may be, subrule(2, rule 10 -where the net result of the computation made in accordance with these rules is a loss, the 1088 80 computed shall be ignorpd and the net agrlcultnralincome shall be 10 deemed to be kil ride 11 -the provisions of the income-tax act relating to procedure for assessment (including the provisions of section 288a relating to roundin¥ off of income) shall, with the necessary ml,d1ficatiodb, apply in relation to the computation of the net 15 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 agrioultural income of the 88s88s88, the income-tax officer shall have the same powers as he has under the income-tax act for the purposes 20 of assessment of the total income (se, aeouod 28) iii the plrat schedule to the custom tariff act, the u1btidg _ry ''camphor'' oocurruag in oolwdll fl) apiast sub-hadidg no (10) i of headtu, no 2901/45 ihall be omlttecl heading no bub-beadidi no and description of article r,te of duty ~tion wben stlrclard preferential rates of duty areas are protective 18 (1) (3) (6) in tbefirit scbedule to the customs tariff act, in beadidg no 2901/45, after ilub-beadhlg no (20), the following sub-beadidg aball be inserted, namely:-15 "(21) camphor 100% "    (see olion 29)  put i ia the firat schedule to the central excises aol-5 (') ill item no 1a for each of the entries in the third oolumn agahlst ~b-items (1) (2) (3) ad (4) the entry "tweaty per cent od vglorem ii shall be substituted; (it) iii item no lb for the entry in the third column the emry "fifteea per o_t od valorem • " shall be 10 ilubatituted; (~ii} in item no1c for the entry in the third column the eacry "fifteea per cent 4d vglor ii shall be substituted ; (iv) in item no ld mr the entry in the third column 15 against sub-item (2) the entry ''siuy per cent  vejortli - " aball be bubbtituted; (") i" item no 11;, for the _try in the· third column the entry llfifteea per c_t id "alojeil • ii aball be substituted; 20 (iii) ill item no2 in the entry in the third column apiast sub-item (2) for the words ''twenty per ceot od vgloraft  n the words ''twenty-five per cent 4d "alorem - ' shall be substituted (vii) iii item no4 under ''ii manufactured tobacco-" 25 for the entries in the third column against sub-items (2) (3)(1) (3)("', (4) (6) and (6) the eatries "three huddred per cert, ad ""orem pb" twedty rupees per thouudd " "six rupees per thou8lllcl it ''three rupees per thoulllldd ti, ''three huadred per c_t od valortjii - " 'pfhirty per oant 30 ad v41orejfl!' and ''81x rupees per jdlogram ii shall respectively be substituted; (i1ui) in item no5 for the edtry in the third column, the entry '':nil'' shall be subet1&uted; (ii) id item no  8 for the _try ill the third columa 36 the _try "two tbowl8jld sevea huadred aad fifty rupees per kljol1tre at f1fteed degrees of c-tigrade thermometer " iball be llubattutedj (x) in item no7, for the entry in the third column, the entry "five hundred rupees per idlolitre at fifteen degrees of centigrade thermometer" shall be substituted: 5 (ii) in item no lla, for the entry in the third column, against bub-item (2), the entry "four hundred rupees per metric tonne " shall be substituted: (iii) in item no 14, for each of the entries in the third column against sub-items 1(2)(ii), 1(2) (lv) m(l) and m(ii) the entry ''twenty per cent ad valorem o' " shall be bubstltuted: 10 (liii) in item no 14m, for the entry in the third column against sub-item (i), the entry "fifteen per cent ad valorelll " shall be substituted: (xiv) in item no 1400, for the entry in the third column, the entry "thirty per cent ad valorem ti" shall be substituted; 15 (iv) in item no 14f, for the entry in the third oolumn, the entry ''one hundred per cent ad valorem - " shall be substituted: (xvi) in item no 14ff, i>r the entry in the-third column, the entry ''twenty-five per cent ad valorem " shall be 20 bubstltuted: (ivil) in item no 148,-(a) for each of the entries in the third oolumn against aub-ltems(i) (il) add (iii) the entry "fifteen per cent ad valor, ii shall be substituted; 25 (") for the entry id the third column against sub-item (tv) the entry "rupee one per kilogram " shall be substituted; 30 (c) for the entry in the third column against sub-item (v) the eatry '~irty per cent ad vg!ore •• " iihall be substituted; () for the entry id the third coluliid against sub-ltem (vi), the _ry "puleal per cent  valorell • " shall be substituted; (%mii) ja item no 15 for the entry in the third column apiabt sub-item (i), the _ry "twedty per cent ad valortlll " 35 iihall be substituted;  (rir) in item no 1m,-(a) for each of the entries in the third column against sub-items (3) and (4), the entry "seventy-five per cent ad valorem " shall be substituted; 5 (b) the erplanation shall be numbered as erplangcton i ~ and after that explanation as 80 numbered, the following explcuaatidn shall be inserted, namely:-it explanation 11- this item does not include electrical insulators o~ electrical insulating 10 fittings or parts of sucb insulators or insulating fittings "; (rr) in item no 15aa, mr thl3 entry in the third column, the entry ''twenty per cent ad valorem ," shall be substituted; 15 (ui) in item no 150, for the entry in ule third column, the entry "fifteen per cent ad valor"" "shall be substituted ; (nii) in item no 16a, for the entries in the third column against sub-items (1), (2), (3) and (4), the entries "fifty-five 20 per cent ad valorem· ", ''thirty-five per cent ad lia1orem ", ''twenty-five per cent f ad valor"" "and "twenty-five per cst ad lialorem "shall, respectively, be substituted; (uiu) in item no 16b, for the entry in the third column against sub-item (ti), the 8dtry ''thirty per cent ad lialorem - " 25 shall be substituted; (xrill) in item no 18, for the entry in the third oolumn against sub-item m (i), the entry "six paise per count per jdlogram " ahall be substituted: (uii) in item no 18a, for the entry in the third oolumn 30 against sub-item li), the entry "six paise per count per kilogram " ahall be substltuted; (iivi) in item no 19, after explanation il, the following erplanation shall be inll8rted, namely-"erplanation ill __ this item does not include door 35 coverings, falling under item no 220 "; (uvii) in item no 21,-(a) for the entry in the third column against sub-item (i), the entry ''tw  lv8 per cent ad valorem" shall be substituted ; (b) after erpj  atioll fl, the followldg erpl  ioll ehall be inserted, namely:-"elplanation m - this item does not include floor ooveridgs, falling udder item no 220 "i (iivm) in item no 22, after elplanation hi, the followidi 6 elplcmation ahall be inserted, namelyi -" elpl  ation iv - this item does not include floor coveridg, fallldg under item no 22g ti: (liil) in item no 22c for the eatry in the third column, the  try ''thirty per cent ad vaiorellll " shall be 10 substituted; (iu) in item no 22e, for the entry in the third column, the entry ''twenty per cent ad valortlf " shall be substituted: (iiii) in item no 22f,-16 (a) the expl  ion shall be numbered a erplgllclltoft i, 8dd for clause (tv) of the erplgll4lliolii as so numbered, the followmg clause shall be substituted, namely:-" (tv) manufactures in which miileral fibres or yarn or both predominate or predominate in weight ": (b) after elj)lacltion i as so numbered, the following 20 erplanation shall be inserted, namely:-"erp'an4ltion n - thill item does not include asbestos cement products ": (inu) in item no 2m,-(a) for sub-item (1), the following sub-item shall be 26 substituted, namely:-i (1) flat gla •• thirty-five per cent u valorem:: eipj8fi4itioll -"plat glass" mcludell sheet glaaa, wired glas and rolled gla •• whether in the i>rm of plate glu, so flpred glass or m y other form (b) for sub-1tem (4), the followtdcllub-item shall be substituted, damely:-"(4) other glas add punare includidg tableware thirty-five per a_ ,d vor, ": (0) the followldg eq'liiuitldrt shall be inserted at the edd, namely:-" e%plldlgtton -this item does dot include electrical ijujulators or electrical insu1atidg fittings or parts of 5 8uch insulators or insulating fittings fi;  (uli") in item no 23b,-(i) for the entry in the third column against sub-item (4), the entry ''thirty per cent ad vilorelll " shall be substituted; 10 (b) the ezpllmtion shall be numbered as erplclmtton i, idd after that explanation as 80 numbered, the followbag erplancitiolir shall be inserted, namely:-rr erplgllation ii - this item does dot include electrical bleulators or electrioal insulating fittings or parts 15 of such insulators or insulating fittings "; (uuii) in item no 28a, for the entry in the third colulllll, the entry ''twenty per cent ad vllorem " shall be substituted, (ruii) in item no 29a,for the entries in the third column against sub-items (1) and (2), the entries "eighty per cent 20 ad viiorejii" and ''one hundred and ten per oent ad ii110rem - " 8ball, respectively be substituted; (ruiii) in item no 30, under "a motors which operate on altematbag current -", for the entry in the third column aga~st sub-item (2)(i) the entry ''twenty per oent 26 ad  liorem " shall be substituted; (lix111i) in item no 3ob, for the entry in the third column, the _try "fifteen per ost  cui  aiorelll - " shall be substituted; (uxlllu) in item no 32, for the 8iltry in the third column agajast sub-item (i), the entry ''thirty per cedt ad lialore •• " 30 sball be substituted; (iidi) in item no 33a,-(t) for the edtry in the third column agajnat sub-item (i), the entry "thirty per cmt "  ,, •• " sball be liub8tltuted; 35 (b) for each of the _tries in the third column apldst bub-items (2), (3) add (4), the eotry "forty per oem  ", •• " ihall be liubst1tuted; (xl) in item no 33b for the entry in the third column against sub-item (i) the entry "twenty per cent ad vgjorem " shall be substituted; (rli) in item no 33c for the entry in the third column the eiiltry ''thirty per cent • ad vgjorciii - " shall be sub-5 stituted; (lui) in item no 330, for the entry in the third column the entry "twenty per cent ad valor •• " shall be substituted (diu) in item no 3300, for the entry in the third 10 column, the emry "twenty-five per cent ad l1alortlll " shall be substituted (iliv) in item no 33f, for each of the entries in the third column agaillst sub-items (1) bdd (2) the entry "forty per ceat ad valorem " shall be substituted; 15 (xlv} in item no 34,-(a) under ''i motor vehicles-" for the entries in the third column against sub-items (1), 2(1)  2(ii) and (3) the eatries ''tweaty per cert ad valorelll ti ''twenty-five per cent ad vgjorai n ''thirty per cent ael valor""" 20 add ''twenty-five per cent ad valorem ti shall respectively be substituted; (b) under 'me trauers!' for the entry in the third column the eiiltry "ten per oedt ad valortlll " shall be substituted; (slvi} in item no 34b for the entry in the third column, 25 tbe eiiltry nf1fteen per cst cad valorem " shall be substituted (dvi') item no 35 shall be omitted; (rlvui) in item no 37a, for tbe entry in tbe third column against sub-item (i), the eutry ''twenty'';five per cent cad valore •• " shall be substituted; 30 (lui) in item no 37m for the entry in tbe tbird column, the entry "forty per ceat ad v4lortlll - " shall be substituted; (1) 1illtem no 37b for the entries in the third column agajnst sub-items (1) and (2), the entries ''twenty-flve per cent - - valorem - n add i~rty-flve per cent ad valorem " shall 35 re8p8ctively be substituted (if) in item no 38 for the eatry in the third column, the _try ''ore rupee bdd thirty paise for every \000 matches or fractto_ thereof" shall be substituted (ui) in item no 40, for the ent:ry in the third column, the entry ''twenty-five per cent tid vtdorem " shall be substituted; (uti) in item no 43, for the entry in the second column, 5 the following entry shall be substituted, namely:-''wool tops and carded gilled suvers contain-ing in either case, more than fifty per cent by weight of wool calculated on the total fibre content ": 10 (hv) in item no 45, for the entry in the third column, the entry "fifteen per cent tid vtdorem " shall be substituted; (111) in item no 48, for the entry in the third column, the entry ''thirty-five per cent tid iitdorem - " shall be 15 substituted; (ivi) in item no 5la for the entry in the third column the entry "fifteen per cent ad vtdorem " shall be substituted; (mi) in item no 52 for the entry in the third column the entry "fifteen per cent ad vlliorem " shall be substituted: 20 (lviii) in item no 53 for the entries in the third column against sub-items (1) and (2), the entries ''twenty-iive per cent tid valorem " and ''thirty per cent tid vtdorem " shall respectively be substituted: (iii) in item no 56 for the entry in the third coluidn the 25 entry ''thirty per cent ad vtdorem " shall be substituted; (ir) in item no 57, for the entry in the third column the entry "fifteen per cent ad va!orej  " shall be substituted: (bi) in item no 58 for the entry in the third column, the entry "fifteen per cent tid vlliorem " shall be 30 substituted: (bii) in iwm no 60, for the entry in the thlrd ooluxdd the entry "fifteen per cent ·ad vtdorem • " shall be substituted; (bui) in item no 61 for the entry in the third column the entry ''twenty per cent gd vtdorem - " shall be substituted: 35 (ljiil) in item no 63 for the entry in the third oolumn the entry "fifteen per cent  ad valorem " shall be substituted: (lrl1) 1d item no 64, for the _try in the third column, the 8iltry "fifteen per cent d 11a1"r •• " shall be substituted; (1i11i) 1d item no 65 for the entry in the third column, the 8ilt1'7 "fifteen per cent ad iim,r, " shall be mlbstltuted 5 item no description of goods rate of duty - (1) (2) (3) in the first schedule to the central excises act -(i) blltem no4, udder ''ii manufactured tobacco-", after bub-item (6) the followldg sub-item shall be inserted, 10 umely:-"('7) hookah tobaoco fifteen per cent  , 1ia1"ral "; (ti) for item no 14c, the followldg item shall be 8ubatltuted aamely:-15 "1tc glycerine -(1) crude glycerine 20 fifteen per cent u lia1orcii fifteen per cent g4 iit1orell, "; (2) glyoel1ae other than crude glycerble (ui) after item no 22f the m1lowidg item shall be blaerted, umely:-thirty per cent  1111'''11 "; floor coverings, name ly,,:-cljlpets, carpeting andruas (made up or not) e",clll4ltion i - thlaltem doeb _ 1dolude nl8f - siiw_li, n  jute ,,  clfr '-ret • 30 erpl •• , u - - thi item all laclude carpets carpetidg ad ruga havtaa the cbanotor1luca of door coveridla but ljatended for un for u;r other papo_ whataoever -------__--------item no description of goods rate of duty (3) (1) (2) (iv) for item no 34a, the following item shall be substituted, namely:-5 twenty per cent lid vcajo rem '; '34a parts and accessories of motor veidcles and tractors, including trailers, the folldwing, name ly:-10 15 20 (0 brake linings; (io clutch facings; (iii) engine valves; (iv) gaskets; (v) nozzles and nozzle holders; (vi) pistons; (vii) piston rings; (viii) gudgeon pins; (ix) circlips; (x) shock absorbers; (ii) sparking plugs; (xii) thin-walled bearings; (xiii) tie rod ends; (xiv) electric horns; (xv) filter elements, inserts and cartridges 25 erpllllation i  - the expression ''motor vehicles" has the meaning assigned to it in item no 34 e%piillgtion ii - - the expression ''tractors'' shall include agricultural tractors 30 (11) after item no 46, the following item shall be inserted namely:-'47 locks, all sorts, and keys therefor twenty per cent lui ,,1i,r 'i erplcanation - - "lock" means a loclddg device operated by - 36 key or oodtrolled by a combjdat1on of letters or figures (vi) after -item no 68 the followidaltem shall be bahrted, name1y:-"19 tooth bbushbs tweaty-ftve per oem, ,,  , •• "i item no description of goods bate of duty (1) 12) (3) (liii) mr item no 68, the bllowing item shall be substituted, namely:-6 eight per cent lui vaiorelll " ''68 all other goods, not elsewhere specified, but exc wiling -(4) alcohol, all sorts, includidg alcoholic liquor for human consumption i (b) opium, iiid1an hemp and other narcotic drugs and 10 il&rooticsi aad (e) dutiable goods as def1ned in section 2(e' of the medlc1dal add touet preparat101l8 (excise duties) act, 1965 (16 of 1966)  the fourth schedule (see section 30)in the first schedule to the additional duties of excise act in item no4, udder "11 mlltufg&tured tobg&co ,_" -5 (i) for the entries in the third column against sub-items (2) (3)(1) and (3)(ii)~ the entries ''one hundred per cent g4 vgjorelll plus ten rupees per thousand " ''two rupees per thousand ii and ''o:le rupee per thousand!' shall respectively, be substituted; 10 (ii) after sub-item (4) the fbllowlng sub-items shall be inserted namely:-| "(5)      | chewing    ||-----------|------------|| tobacco   |            || ten       | per        || cent     |            || tad       |            || v,,10     |            || rem       | -          || two       |            || rupees    | per        || ldlogram |            |fj) snuff 15 ('1) hookah tobacco five per cent tad valltrem - "  statement of objects and reasonsthe object of the bill is to give effect fx> the financial proposals of the central government for the financial year 1979-80 the notes on clauses explain the various provisions contained in the bul new delhi; charan singh the 28th febl'1lary, 1979  president's recommendation under articles 117 at'id 274 of the constitution of india(copy of letter no f 3(1)-b(d)/79 dated the 28th february, 1979 from shri charan singh, deputy prime minister and minister of finance, to the seoretary, lok sabh~) the president, having been informed of the subjeot matter of the proposed bill, reocxnmends under clauses (1) and (3) of article 117 read with clause (1) of article 274 of the constitution of india, the introduction of the finance bill, 1979 to the lok sabha and also recommends to the lok sabha the oodsideration of the bill 2 the bill will be introduced in the lok sabha immediately after the presentation of the budget em the 28th february, 1979  notes on cr""sesclause 2, read with the first schedule to the bul, seeks to prescribe the rates at which income-tax (including surcharge thereon) is to be levled on inoome chargeable to tax for the assessment year 1979-80 further it lays down the rates at whioh tax is to be deducted at souroe during the financial year 1979-80 from incomes subject to such deduotion under the income-tax act; and the rates at whioh "advance tax" is to be paid and tax is to ,be oaloulated and charged in special cases for the financial year 1979-80 rates of income-tax fot the assessment year 1979-80 - part 1 of the first schedule to the bul specifles the rates of income-tax (including surcharge) on incomes liable to tax for the assessment year 1979-80 these rates are the same as those specified in part iii of the schedule to the finance act 1978 for the purpose of deduction of tax at source from "salaries" and for computation of "advance tax" payable during the financial year 1978-79 rates for deduction of tax at source during the financial year 1979-80 from incomes other than "salaries" - part ii of the first schedule to the blll speclfies the rates at which income-tax (including surcha"'ge where applleable) is to be deducted at source during the finanoial year 1979-80 from inoomes other than "salaries" and ~etlrement annuities under seotion 80e(9) of the income-tax act the rates specified in this part for deduction of tax at source are the same as those specified in part u of the schedule to the finanoe act 1978 for the purposes of deduotion of tax at source during the flnancial year 1978-79,exoept for certain modifioations in the case of income by way of winnlngs from lotteries and orossword puzzles, and wbmings from horse races payable to a resident recipient (other than a company) during the financial year 1979-80, tax will be deductible at the rate of 36 per cent (made up of basic lncometax of 30 per cent and surcharge of 6 per cent) as agalnst 34 5 per cent during 1978-79 in the case of incomes by way of interest on securities (not being lnterest on a tax-free security) or dividends payable to a resident recipient (other than a company) during the financial year 1979-80 tax will be deductible at the rate of 24 per cent (made up of basic income-tax of 20 per cent and surcharge of 4 per cent) as against 23 per cent during 1978-79 in the case of incomes by way of lnterest on 'rightstdebentures issued by companies in which the public are substantially interested, deduction of tax at source will, however, be made at the rate of 10 per cent in the case of incomes (other than interest on a tax-free security) payable to a nonresident (other than a company) during the financial year 1979-80, tax will be deductible at the mlnimum rate of 36 per cent (made up of income-tax of 30 per cent and surcharge of 6 per cent ) as against 345 per cent in 1978-79 in the case of interest on a tax-free security payable to a non-corporate non-resident the rate for deduction will be 18 per oent (made up of lnoome-tax of 15 per cent and surcharge of 3 per cent ) as against 1725 per cent in 1978-79 in the case of incomes by way of lnterest other than ''interest on securities" payable to a domestic company during the financial year 1979-80, tax will be deductible at the rate of 21 5 per cent (made up of income-tax of 20 per cent and surcharge of 15 per cent )as against 21 per cent in 1978-79 in the case of any other inoome (excluding interest payable oll a tax-free security) payable to a domestic company during the financial year 1979-80, tax will be deductible at the rate of 24 per cent (made up of income-tax of 22 5 per cent and surcharge of 1 5 per cent ) as against 23 per cent in 1978-79 in the case of income by way of royalty payable to a foreign company by an indian concern in pursuance of an agreement made by it with the indian concern and approved by the central government before 1st april, 1976, tax will be deductible at the rate of 53 75 per cent (made up of income-tax of 50 per cent and surcharge of 375 per cent) as against 525 per cent in 1978-79 similarly, in the case of incomes by way of fees for technical services payable to a foreign company by an indian concern in pursuance of an agreement made by it with the indian concern and approved by the central government before 1st april, 1976 tax will be deductible at the rate of 5375 per cent (made up of income-tax of 50 per cent and surcharge of 3 75 per cent ) as against 525 per cent in 1978-79· further, incomes by way of interest payable on a tax-free security toa foreign company during the financial year 1979-80, tax will be deductible at the rate of 473 per cent (made up of income-tax of 44 per cent and surcharge of 33 per cent) as against 462 per centin 1978-79 in the case of any other income payable to a foreign company during the financial year 1979-80 tax will be deductible at the rate of 7525 per cent (made up of income-tax of 70 per cent and surcharge of 5 25 per cent) as against 73 5 per cent in 1978-79 rates for deduction of tax at source from ''salaries'' and retirement annuities, computation of ''advance tax" and charging of income-tax in special cases during the financial year 1979-80 - part in of the first schedule to the bill specifies the rates at which income-tax (including surcharge) is to be deducted at source from "salaries" and retirement annuities referred to in section 80e(9) of the income-tax act and also the rates at which "advance tax" is to be paid and income-tax is to be calculated or charged in special cases for the financial year 1979-80 these rates are the same as those specifled in part i of the first schedule to the bill for the ass~ssment of incomes liable to tax for the assessment year 1979-80 except for the following modiflciltlons :-(i) in the case of individuals hindu undivided families unregistered firms etc, no tax is payable if the total income of the assessee does not exceed rs10 000 where the total income exceeds rs10 000 by a small margin the income-tax (ex~luding surcharge) payable by the assessee will not exceed 30 per cent of the excess of the total income over rs10, 000 as against 70 per cent hitherto in the case of individuals hindu undivided families with no member having independent taxable income exceeding rs10 000 unregistered firms etc, this margihal provision will cease to operate where the total income exceeds rs 12000 while in the case of hindu undivided families baving one or more members with independent taxable income exceeding rs 10 000 it will cease to operate where the total income exceeds rs 13 000 (ll) the rate of surcharge on income-tax in the case of all non-corporate assessees is proposed to be increased from 15 per cent to 20 per cent of such incometax (ui) the rate of surcharge on income-tax in the case of all categories of companies 18 prop08ed to be increased from 5 per cent to 75 per cent of such 1ncometax the provisions in the blll for the purposes of computation of "advance tax" and charging of income-tax in special cases during the financial year 1979-80 in the case of lndividuals hindu undivided famllies, unregistered firms, etc, having net agriculturallncome, in addition to non-agrlculturallncome exceeding rsi0, ooo,are the same as in the finance act, 1978 excepting that the income-tax payable shall in no case exceed 60 per cent of the excess of the total income over rs10 000 as against 70 per cent hitherto in the case of companies the rates of income-tax specified in paragraph e of part iii of the first schedule to the blll are the same as those specified in paragraph e of part i of the first schedule to the b1ll except for the modification that the rate of surcharge has been increased from 5 per cent to 75 per cent of such lqoome-tax  clause 3 seeks to make certain amendments in section 10 of the income-tax actsub-clause (a) seeks to ameud sub-clause (vua) of clauae (6) of sectiod 10 at present a foreign tecbn1cian employed by the govemment, a local authority, a &tutory corporation, an approved scientific research association or ~ business in india i8eut1tled to -exemttlon from income-tax in respect of his 8alary 8ubject to certain coddiuons for the purpose of tbja provision, a 'technician' means a perbon bavide apecialllled kiiowledp and experience in construouodal or manufacturing  operatiou or in mining or in the gederation of electricity or ady otber form of power or agriculture animal husbandry dairy farming, deep sea fishing or ship building the forelp teclmjcjan eupble for this exemixlon should be employed in india in a capacity in which 8uch specialised knowledge and experiedce are actually util1sed udder the propoeed amendmedt, the central government is being empowered to specify by dotif1cauon in the omcial gazette, any other field in which the foreip teclm1c1aa cu be employed in india having regard to the avallab1l:lty of indian t8clmiciua in that field, the needs of the coulltry and other relevlull ctrcumstadces the ameadmeat,111 take effect from 1st june, 1979 add wlll apply in relation to the u  medt year 1980-81 add subeequeat year •• sub-clause (b) seeks to amedd sub-clause (11) of clause (15) of section 10 udder the existing provisions interest on deposits in post office savings banks and bonus in respect of deposits under the post office savings bank (cumulative time deposits) rules, 1959 is exempt from income-tax to the extent to which the amount of such deposits does not exceed the maximum amount which is permltted to be so deposlted under the proposed amendment, the interest on deposits in a public account in the post office savings bank wui be exempt from tax up to rs 2,250 for this purpole, a "publlc account" means an account specified in item (3) in the table below rule 3 of the post office sav1ngs banks rules 1966 this amendment wtll take effect from 1st april 1980 and will accordingly apply in relation to the asessment year 1180-81 add subsequent years sub-olause (0) seeks to 1daert two new clauses (23bb) and (23bba) in seotkm 10 the finance (no2) act, 1977 inserted a new section 24a in the khad1 and v1llage industries commission act, 1956 so 88 to exempt the khadi and v1llap industries commission established under the said act from the paymem of tax under the income-tax act the new clause (23bb) seeks to gram exemption from 1dcometax 1n respect of any income derived by similar authorities set up under any state or provincial act the new clause (23bba) seeks to exempt income of bodies or authorities established, codstituted or appointed under any enactment for the administration of public religious or charitable trusts or endowments (including math§ temples, gurciwarm walds t churches, synagogues, aglaries or other places of public religious worship) or societies for reltglous or charitable purposes it is, however, being made clear that the exemption will not apply to ~ income of any such trust, endowment or society the proposed amendments will apply retrospectively from lilt april, 1962, that is to say, the date of commencement of the income-tax act, 1961 clause 4 seeks to amend section 35b of the income-tax act relating to export markets development allowance under the existing provisions a weighted deduction at the rate of one and one-third times the qualifylng expenditure on the development of export markets is allowed in the computation of taxable profits of a small-scale exporter a holder of export bouse certificate add a perlioil ,apd in the busines of provlsloil of technical know-how to persons outside india or in the performance of any services in connection therewith it is proposed to make two amendments in this section under the first amendment, bdy expenditure incurred on advertisement or publicity outside india in respect of the goods services or faculties which the assessee deals in or provides in the course of his business· wui qualify for weighted deduction under the second amendment the benefit of the export markets development allowance is being extended to all domestic companies and other non-corporate assesbees resident in india these amendments will take effect froq 1st apru 1980 and will accordingly apply in relation to the assessment year 1980-81 and subsequent years  clause 5 seeks to amend section 35cca of the income-tax actunder section 35cca, an assessee engaged in a business or profession is entitled to a deduction tn the computation of the taxable profits, in resp8ct of expenditure incurred by him by way of payment of any 8um to an association or institution having as its object the undertakldg of au;v programme of rural doyelopmedt, to be used for tjae purposes of carrying out such programme tho deductlon ls admissible only j,n cases where the association or institution and also the programme are approved by the prescrlbed authority the proposed amendments seek to provide that expenditure incurred by such a  aeea by way of payjd8llt of any sum to an association or institution approved by the prescribed authority will also be allowed as deduction where such association or idaubition has as ita object the tratnldg of pers0d8 for lmplem8lltm, proaramme of rural clevelopjdedt the proposed amendments will take effect from 1st june, 1979 and will apply in relation to the assessment year 1980-81 and subsequent years clause 6 seeks to make certain amendments in section 36 of the income-tax act sub-clause (a) seeks to insert a new clause (la) in sub-section (1) of section 36 under the proposed amendment, the amount of premium paid by a federal milk co-operative society to effect or to keep in force an insurance on the life of the cattle owned by a member of a primary milk co-operative society affiliated to it wlll be allowed as a deduction in the computation of profits of the federal milk co-operative society sub-clause (b) seeks to insert a new clause (vila) in sub-section (1) of section 36 the new clause seeks to provide that any provision for bad and doubtful debts made by a scheduled commercial bank, in relation to advances made by itl!!j rural branches, in an ,amount not exceeding ii per cent of the aggregate average advances made by such branches wui be allowed as deduction in the computation of its taxable profits the aggregate average advances so made will be computed in the manner to be prescribed in the rules for the purposes of this clause, a "rural branch" will mean a branch situated in a place with a population not exceeding ten thousand sub-clause (c) seeks to amend clause (vlu) of sub-section (1) of section 36, under the existing provisions, approved financial corporations engaged in providing long-term finance for industrial or agricultural development in india are entitled to a deduction, in the computation of their taxable proflts, of the amounts transferred by them out of such, profits to a special reserve account up to a specified percentage of their taxable income, in the case of a financial corporation or a joint financial corporation established under the state financial corporations act, 191)1 or any institution deemed under section 46 of that act to be aflnanclal corporation established by the state government for the state within the meaning of that act, the deduction is admissible up to 40 per cent of such profits carried to the special reserve account in the case of other flnanc1al corporations, the deduction is allowed at the rate up to 25 per ce •• of such profits the proposed amendment seeks to provide a uniform rate of deduction of forty per cent in the case of all such financial corporations these amendments will take effect from 1st april, 1980 and wul accordingly apply in relation to the assessment year 1980-81 and l!!jubsequent years clause 7 seeks to amend explanation 1 below sub-sectiod (3b) of section 37 of the income-tax act ' under the existing provisions, any expenditure on an advertisement in a "small dewspaper" l8 excluded for the purpose of disallowance of a specified percentage of expenditure on advertllement, publ1city and sales promotion for this purpose, a newspaper is deemed to be a "small newspaper" if the average clrculation of the newspaper in the calendar year in which such advertisement baa been publ1shed is cert1f1ed by the prescribed authority a8 not exceeding 1&, 000 copies under the proposed ald8lldmedt, the requirement of certification of the average clrculauod of the de_paper by the prescribed authority 18 beln, omitted this amendmellt wui tab effect from 1at apru, 1t7t  clause 8 seeks to make two ame,nddleats in seotlon 64e of the inoome-tax actunder the existing provlblons, long-term capital galdb are exempted from tax if t1le full value of the consideration received or accruing as a result of the transfer is deposit,)d or invested in speolfled financial assets within six months of the date of the transfer where--the asset is oompulsoruy aoqulred by the government, or the oonslderatlon for the transfer is determined or approved by the central government or the reserve bank of lddlaadd addltlonal oompensatlon or oonsldemtlon is paid to the assessee in any subsequedt year, the oapltal gains attributable to the amount of addltlonal oompensatlon or oonslderatlon a~ exempted from tax if suoh amount is deposited or invested in the speolded financial asaets wlthln six months of its receipt the first amendment proposes to restrict the benefit of exemption of capital gains attributable to the amowlt of addltlcmal compensation or oonsideratjon to aloh amount as is received by the assessee before 1st march 1979 the second amendment proposes to restrict the benefit of exemption of capital gailul under secuon me to tntnsfers of long-term oapital assets made before lit march, 1979  clause 9 seeks to make certain amendmedts in seetlon 64 of the income-tax aotbub-olause (a)(1) seeks to amend explaoatjon 1 below sub-section (1) of seouon 64 under the proposed amendment, lnoome arising to the spouse of an lndlvlcbll by way of salary, commission, fees or any other form of remuneration from a oodcern in whloh both the lndlvldual and the spouse have substantjallnterest, wid be inoluded in the total income of the lndivlcua1 or the spouse whose totallnoome excluding such aalary, co~slon  etc •• _1s geater bub-clause (a)(u) seeks to lnsert a new explanation 1a below sub-section (1) of sectlon 64 under the proposed amendment, where the 8powje of an lndlvldlla1lb a benefiolary under a trust and the trustee joins in any partnership business with the individual the income arising from such partnership to the trust, to the eztent it is for the benefit of the spouse, wlll be inoluded in the totallnoome of the individual bub-clause <ahul) seeks to lnsert a new explanation 2a below sub-section (1) of seetlon 84 under the proposed amendment, where the mldor child of an lndlvlcmal i a beneficiary under a trust and the trustee joins in any partnership bil8lne8 with any person, the inoome arising from such partnership to the trust, to the extent it i for the benefit of the minor chlld, will be inoluded in the totallnoome of the liidlvldual bub-clause (b) seeks to amend sub-section (2) of section 64 item (i) seeks to provide that where 8i1indlvtdual make a gift of his separate property to the hlddu undlvlded famlly of whlch he is a membe~ then, the entire lnoome from the lifted property wlll be lnojudlble in the lnoome of aum lddlvldual item (11) seeks to insert a new eapjanatlon 2 below that sub-section to provide that where the speclded lncome to be included in the total income of the indlvldualls a loss, such 108s will be taken into acoount while computlng the total income of the lndlvldual these amendments wul take effect from 1st april, 1980 8i1d wid accordingly apply in relation to the assessment year 1980-81 and subsecpent years clause 10 seeks to amend alb-section (l} of section soc of the inoome-tax act relating to deduction ld respect of ufe insurance premia, contributions to provident fund, etc under the pl'opoaed amaadment, the quantum of deduction from taxable ldcome in respect of long-term savldp through ufe lnsurance, provident fund, etc, wlll be varied 80 as to allow a deduction of the whole of the nrst bs 6,000 of the ~luylng savlngs, plus 35 per oem of the next bs 5000 plus 20 per cent of the remainder of the quallfyldg savlngb however the monetary llm1t of the savlng8 quallfylng for tax relief wlll remain unchanged at 30 per cent of the gross total lncome or rs 30 000, whichever is less this amendment will take effect from 1st apru, 1980 and wul accordingly apply in relation 10 the assessment year 1980-81 and subsequent years clau8e 11 seeks to lnsert a new sectlon sogga in the income-tax act under ihe new section, any sums paid cilrlng the previous year by an asse8see 10 an approved association or lnbtltutlon for specifled purposes would be allowec" as decllctlon in the computation of the total income the sums which ~llfy for deduction are: (i) sums paid to a scientific research association which has a8 its object the undertaklng of scientific research or to a unlverslty college or other lnbtltution 10 be used for scientific research, where such assoclatlon university, college or institution has been approved by the pre8crlbed authdrity for the plj1)oses of seetlon 35(1)(11) of the 1dcome-tax act; (11) sums paid to an assoclation or ldsututlon which has as its object the undertaidilg of any programmeof nll'al development to be used for the purposes of oarryiq out iuiy programme of iural development approved for the puj1)oses of seetlon 36cca; (111) sum paid to ad asaoclation or institution which has as its object the tralnlq of persons for lmplemedtldg programmes of rural development the deductlons udder th1s seetlon wid dot be allowed in cases where the assessee has any lncome udder the head "profits and galns of blsines8 or profe8sion" this provision wlll take effect from 1st aprll, 1980 and wlll accordlngly apply in relation to the assessment year 1980-81 and bubsequent years  clause 12 8eeks to amedd alb-section (4) of section 8qj of the income-tax actunder the exi8tldg provisions, an lncl1strlal undertaking which beglns to dwlilfacture or procmce articles or operate a cold storage plant before 1st aprll, 1981 is eiltltled 10 a ''tax hollday" of a speclfted percentage of the capital employed for a period of five successive assessment years beglnnlng with the asse8sment year relevant to the previms year in which the undertaklng begins to mam1facture or produce articles or operate the cold 810rage plant the proposed amendment seeks to provide that the provisions relating to "tax houday" wid dot apply in relation to an inoostrlal undertaklng which beglns to mamjfacture or produce any article specl1led in the eleventh scheoole to the incomhax act after 31st march, 1979 this amendment wlll take effect from 1st aprll, 1979 clause 13 seeks to insert a new section 88jja in the income-tax act under the existing provisions, income from the business of growi~g mushrooms under controlled conditions is not regarded as agricultural income and is accordingly charged to incometax under the new section, in computing the total income of an assessee deriving profits and gains from the business of growing mushrooms under controlled conditions, one-third of such profits or gains or rs~ 10, 000, whichever is higher, will be allowed as a deduction this provision wlll take effect from 1st april, 1980 and wlll accordlngly apply in relation to the assessment year 1980-81 and subsequent years clause 14 beeks to amend section sop of the income-tax act under the existing provisions, the profits and gains derived by a co-operauve society (lncludlng a consumers' oo-operatlve society) are exempt from tax up to rs20,ooo the proposed amendment seeks to increase the monetary llmlt for exemption in the case of a consumers i co-operatlve society from rs 20, 000 to rs40,ooo this amendment wlll take effect from 1st april, 19s0 and wlll accordlngly apply in relation to the assessment year 19s0-81 and subsecpent years clause 15 seeks to insert a new seetlon soqqa in the income-tax act under the new sectlon authors of standard text books prescribed for a degree or po~ course of a university in any jan •• spec1fted in the elpth 8chedille to the codbtltution or in any other language as the cedtral government may dotjty bavlng regard to the need for promotion of publlcatlon of such text books in that language, wid be entitled to a deduction, in the computation of the totallncome of an amount equal to twenty-five per cent of the income from such books included in the gross total income the deduction wul be admissible for the assessment years 1980-81, 1981-82, 1982-83, 1983-84 aud 1984-86 the proposed deduction will also be available in respect of dlctlodarles, thesaurus and encyclopaedia in any of the aforeald langua, thib p1'ovl8lon wlll take effect from 1st aprll, 1980 clause 16 seeks to amedd section 208 of the inoome-taxact udder the proposed amendment, the thresheld tor paymedt of ad9adce tax in the oue of nilstered ftrma hrs been lowered from rb 30, 000 to ill 20,000 this amendment will tab effect from 1st april, 1979  claule 17 seeks to make certalil amendmeats in aeotlon 209a of the 1dcome-tu actunder the exlstlng prov"jou an aue88ee is recp1red to fardlah a lltatemeat/ estjmate of advance tax be,,, tbe date on which the relevant ld8t:almeat of adftdce tax is cme iii hi case the ,""""medta will eaable him to l11mllh mch btatemeat/ estlmate op or be£orethe due date of the relevant ln8talment it 18 al80 proposed to  make a minor drafting alteration in the bectiod these amendments wlll take effect from 1st april, 1979 clause 18 seeks to make certain amendments in section 212 of the inoome-tax act under tlie existing provlsiona, an assessee is required to send an estimate of advance tax before the date on whlch the relevant instalment of advance tax is due in hls case the amendments wid enable him to furnish such estlmate on or before the due date of the relevant instalment these amendments wlll take effect from lit aprll, 1979 clause 19 seeks to amend section 218 of the inoome-tax act under the exlstlng provision, an assessee is deemed to be an assessee in default in respect of the tnstalment of advance tax if he does not pay such lnstalmedt on the specifled date and does not send an estlmate or revised estimate before that date under the amendment, he wlll not be deemed to be an assessee in default even in a case where he flies the estlmate or revised estimate of the advance tax payable by hlm ~ the specl1led date this amendment wid take effect from 1st aprll, 1979 clause 20 seeks to make certain amend meats in section 245d of the income-tax act under the existing provisions, an appljcatjon for settlement of a case is not proceeded with if the commissioner of income-tax objects to the application being proceeded with on the ground that concealment of partlculars of income on the part of the app1jcant or perpetration of fraud by him for evading any tax or other sum chargeable or lmposable under the indjan income-tax act, 1922 or the income-tax act, 1961 bas been establlshed or is likely to be eatabllahed by any lncome-tax authority in relation to that case under the proposed amendmeat, the objection by the commissioner of income-tax wlll be subject to review by the settlemedt commission and the settlement commission wid, before over-ruling the objection, provide h1m with an opportunity of being heard these amendmellts wid take effect from 1st apru, 1979 clause 21 seeks to make certain amendments in section 24'3 of the inoome-tax act under the exlstmg provisions, appeals against orders of assessment in the case of foreign oompanles and orders of asses8jd8llt in the case of domestic companies where the ldcome or 10s8 exceeds rs6 lakhs, lie to comm1ssloner (appeals) sub-clause (a)(l) seeks to provide that appeals agalnstordersspeclfled in clauses (b) to ~h) (both inclusive) and clauses (1) to (0) (both lnclusive) of sub-sectjon (1) of section 246 in the case or all companies wid 11e to commlsbloner ~ppeals) the amendmeat in alb-clause (b) seeks to jnaart two new aub-sect1oda in section 246 the dew aub-sectlon (4) seeks to provlde that every appeal ap,mst an orda r bpecifted in clause8 (b) to (h) (both lnoluslve) add olauaes (1) 110 (0) (both jnolualve) of sub-secuon (1) of sectloa 246m the case of a cojdp8l1y, pend" imme418tely before 1atjune, 19'79, belon an appellate a881stadt comm18sloder and ad7 matter "arlbldg out of or connected with such appeal and which ls 80 pendjng, wid be t1'8d8ferred from that day to the commissioner (appeals) who wid be empowered to proceed with such appeal or matter from ihe stage at wh1cb it was on that day however, the appelladt wid have a right to demand that before proceeding with the appeal or matter, the previous proceeding or any part thereof may be re-opened or that he may be re-heard the new sub-sectlon (5) seeks to provide that the board wid be empowered to transfer any appeal which is pending before an awellate assistant comm1asloder and any matter arlslng out of or connected with such appeal add which is 80 pendjdg, to the commissioner (appeals) if the board 19 satlsfied that it is necessary or upedlent so to do bavld&t regard to the nature of ihe case, ihe complexities involved add other relevant considerations after the appeal js 80 transferred, the commissioner (appeals) wul be empowered to proceed with such appeal or matter from the stage at w]w)h it was before it was 80 transferred the appellant ww bowever have the right to demand that before proc~ ftlrther with the appeal or matter, the pnwlous proceeding or any part thereof may be re-opened or that he may be re-beard these amendmedta ww take effect from 1st june, 1979 clause 22 seeks to make certa1d am8luim8l1ta of a oodseqlledtjal dature in dufereat provisions of the ldoome-tax act the ameddment prqjoseci in sab-clause (1) is consequential to ihe insertion of a new proviso 10 bu~eection (4) of seotjod 8oj the amendment proposed in aub-clause (2)(a) is oonaequedtlal to the insertion of a new clause (vua) in aub-seotloll (1) of seouon 36 of the inco~ act the ameddmedts proposed in sub-clauses (2)(b) and 2(c) are consequedtjal to the insertion of new sections 80gg\ and 8ntja clause 23 seeks to make certain ameddmedts 1d seot1on 4 of the wealth-tu act sub-clause (a) seeks to amead sub-eection (ia) of secuoil 4 the propoeed amendmeat seeks to prcmde that where ad fdd1v1dua1 mair8s a jift of hla hp8i'iite property to the biddu udd1v1ded family of wbjch he is a member, he w111 be deemed to have tradaferred 8uch separate property through the fundy to the members of the family for be1dg held by them jo1&ly aad the value ~ the gifted property wlll be included in the net wealth of the jddtvidual 8w>-clause (b) seeks to amedd sub1ectton (3) of sect10n 4 udder the u;jstidg provisions, the exem(tjons in respect of certain au  appjv in relation to those usets which though dot belodgldg to the use8~ are 1dcluded in the net wealth of the u8essee udder sect10n " as if such assets were u8s belodg1dg to the &8ses888 slmilarlylthe value of the debts owed by the tr8dllferee relatm, to such &88et8 are alldwecl as deductlon the propoaed amendmejt seeks to provide that the deductions and exemsttou in respeat of the property gifted by the individual as a180 the debts relating to such property would also be allowed as deduction 111 respect of 111mb auets included m the dst w_1th of the individual these amendments will take effect from 1st april, 1980 and will accordingly apply in relation to the assessment year 1980-81 and subsequent years clause 24 seeks to make certain amendments in section 22d of the wealth-tax act under the existing provisions, an application for settlement of a case is not proceeded with if the commissioner of wealth-tax objects to the application being proceeded with on the ground that concealment of particulars of the net wealth on the part of the applicant or perpetration of fraud by him for evading any tax or other sum chargeable ot imposable under the wealth-tax act has been established or is ukely to be established by any wealth-tax authority in relation to that case under the proposed amendment, the objection by the commissioner of wealth-tax will be subject to review by the settlement commission and the settlement commission will, before over-ruling the objection, provide him with an opportunity of being heard these amendments will take effect from 1st april, 1979 clause 25 seeks to insert a new sub-section (ic) in section 23 of the wealth-tax act under the propofiled amendment, the board will be empowered to transfer any appeal which is pending before an appellate assistant commissioner and any matter arising out of or connected with such appeal and which is so pending, to the commissioner (appeals) if the board is satisfied that it is necessary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant considerations after the appeal is so trad8ferred, the commissioner (appeals) will be ~mpowered to proceed with such appeal or matter from the stage at which it was before it was so transferred however, the appellant will have a right to demand that before proceeding with the appeal or matter, the previous proceeding or any part thereof may be re-opened or that he may be re-heard this amendment will take effect from 1st june, 1979 clause 26 seeks to substitute part i of schedule 1 to the wealth-tax act under the proposed amendment, the following rates of wealth-t&x have been specified in the case of individuals add hindu undivided families ci:ber than those having one or more members with independent net wealth exceeding rsi, 00,000:-rate of tax slab of net wealth up to rs2,50,ooo i per cent (same as at present); i per oent (same as at present); rs2, 50, 001 - 5,00,000 2 per cent (same as at presem); rs 5,00,001 - 10,00,000 rsio, 00, 001 - 15,00,000 3 per cent (as against 21 per cent at present); over ra15,ooooo 5 per cent (as against 3i per cent at pre$8nt) in the case of hindu undivided families having one or more members with independent net wealth exceeding rsl, 00, 000, the following rates of wealth-tax have been specif1ed:-|              | rate      | of       | tax       ||--------------|-----------|----------|-----------|| slab         | of        | net      | wealth    || ii           |           |          |           || per          | cent     |          |           || (same        | as        | at       | present); || iip          | to        | rs      | 2,50,000  || 2            |           |          |           || per          |           |          |           || oent        | (same     |          |           || as           |           |          |           || at           | preseut); |          |           || rs          | 2,        | 50,001 - | 5,00,000  || rs          |           |          |           || 5,           |           |          |           || 00, 001 -    | 10,00,000 |          |           || 3            |           |          |           || per          |           |          |           || cent        | (as       | against  | 21        || per          |           |          |           || cent        |           |          |           || at           |           |          |           || present);    |           |          |           || ~er          |           |          |           || rs10,00,000 |           |          |           || 5            | per       |          |           || cent        |           |          |           || (as          | against   |          |           || 3i           |           |          |           || per          |           |          |           || cent        |           |          |           || at           | present) |          |           |no wealth-tax will be payable in the case of individuals as wen as hindu undivided families if their net wealth does not exceed rs1, 00, 000 further, the wealth-tax payable shall in no case exceed 5 per cent of the amount by which the net wealth exceeds rs1,oo,ooo this amendment will take effect from 1st april, 1980 and will accordingly apply in relation to the assessment year 1980-81 and subsequent years  clause 27 seeks to insert a new sub-section(lc) in section 22 of the gift-tax actunder the proposed amendment, the board will be empowered to transfer any appeal pending before an appellate assistant commissioner and any matter arising out of or connected with such appeal and which is st, pending to the ccmmissioner (appeals) if the board is satisfjed that it is necessary or expedient so to do having regard to the nature of the case, the complexities involved and other relevant considerations the commissioner (appeals) will be empowered to proceed with such appeal or matter from the stage at which it was before it was so transferred however, the appellm will have a right to demand that before proceeding further with the appeal or such matter, the previous proceeding or any part thereof may be re-opeded or that he may be re-heard this amendmedl: will take effect from 1st june 1979 clause 28 read with the second schedule seeks to raise the import duty on camphor clause 29 read wi1h the third schedule seeks-(a) to raise the rates of basic exoise duty on -(1) confectionery, like cocoa powder, chewing gum chocolates, etc (2) prepared or preserved foods (3) food products (4) aerated waters, other than plain soda (5) glucose and dextrose (6) instant coffee (7) cigarettes, bids, smoking mixtures for pipes and cigarettes, chewidg tobacco and snuff (8) mc:tor spirit (9) kerosene  (10) liquefied petroleum gas (11) oil bound distemper, plastic emulsion paints, nitro cellulose lacquers and cellulose lacquers not otherwise specified (12) specified chemicals other than caprolactam and d m t (13) synthetic organic products (14) cosmetics and toilet preparations (15) tooth paste including dental cream (16) oxygen, chlorine, ammonia, refrigerant gases and acetylene (17) household and laundry soap j (18) organic surface active ageuts (19) polishes and creams (20) latex foam sponge and certain rubber products viz piping, tubing, transmission belts, conveyor belts, etc (21) plywood, other than plywood for tea-cbests (22) cellulosic spun yarn (23) cotton yarn, all sorts (24-) linoleum (25) typewriter ribbons (26) electrical stampings and laminations (27) refrigerators and air-conditioners, etc (28) certain types of three phase electric motors (29) m<tor starters (30) vacuum and gas f1l1ed bulbs (31) t v sets, radios, radiograms, etc (32) insulated electric wires and cables (33) domestic electrical appliances (34) office machines (35) computers (36) musical systems (37) forklift trucks and platform trucks (38) gramophones, record players, record playing decks or record changer decks (39) tape recorders (40) cinematograph projectors and parts thereof (41) matches (42) steel furnjture (43) weighidg machines, etc (44) safes and strong-boxes (45) tools (46) bolts, nuts and screws (47) zip or slide fasteners and parts thereof (48) playing cards (49) camphor (50) menthol (51) adhesive tapes (52) electric lighting fittings (53) wire ropes (54) carbon black (66) rubber processing chemicals,  (b) to change the tariff description « -(1) item no14c relatlag to glycerine to 8ubject crude glycerine and glyceride, otber tban crude glycerine, to excise duty under two different sub-items (2) item no15a relating to plastics to exclude electrical insulators or electrical insulating fittings or parts of such insulators or insulatlag fittings from ita scope and also to raise the basic excise duty on polyurethane foam and articles thereof (3) item no 19 relating to cotton fabrics to exclude floor coverings from its scope (4) item no21 relatjdg to woollen fabrics to exclude floor coverings from its scope and al80 to raise the basic excise duty on woollen fabrics, other than embroidered fabrics (5) item no 22 relating to man-made fabrics to exclude floor coverings from its scope (6) item no22f relating to mineral fibres and yarns, by way of clar1f1cation (7) item no23a relating to glass and glassware to exclude electrical1nsulators or electrjca11n8ulat1ng fittmgs or parts of such insulators or insulating fittings from 1ts scope and also to revise the description and raise the dlty on nat glass and certain other glass and glassware including tableware (8) ite m no 23b relating to chinaware and porcelainware to exclude electrical insulators or electrical insulating fittings or parts of such insulators or insulating f1tt1ngs from its scope and also to raise the basic excise duty od certain typea m china ware and porcelainware (9) item no34a relating to parts and accessories of motor vehicles to include (lilly certain spec:lfjc items within its scope (10) item no 43 as a measure of rationalisation (11) item no 68 re1at1ng to goods d«t elsewhere specified in the cedtral excise tariff and also to raise the basic excise ch&yj (0) to omit the existing provision 1d the first schedule to the cedtral excises act for fixing annually rate of duty on salt by a central act and to fix a nq rate of duty oil saltj (d) to reduce the basic excise duty od --(1) carbon dioxide gas (2) plates, sheets, etc , of rubber; (e) to omit iem no35 relatfdg to cycle parts viz free wheels add rims] (f) to raticmalis8 and restructure the rates of basic excise duty on motor vebjcles) (g) to include new items in the cearal excise tariff for -(1) hookah tobacco by amend1ngltem no4 relat1ng to tobacco (2) c8rpets, carpeting and rug&(made up or not) (3) locks and keys therefor (4) tooth brushes clause 30 read with the fourth schedule seeks to amend the first schedule to the additimal duties d excise (goods of special importance) act, 1957 (1) to raise the additional excise duty on cigarettes and birisj (2) to levy additional excise duty on chewing tobacco, snuff and hookah tobacco clause 31 seeks to levy up to the 31st march 1980 auxuiary duties d customs on au imported goods at the rate of 20% of their value clause 32 seeks to levy up to the 31st march 1980 special duties of excise on all excisable goods at the rate of five per cent of the duty leviable udier the central excises act, read with any notification for the time being in force issued under the said act or the rules made thereunder chapter v (containing clauses 33 to 42) provides for cesser of operation and replacemedt of chatter vb of the finance (no2) act 1971 clause 34 defines "carrier", "international journey", ''passenger'' 8dd certain other expressions used in the chapter clause 35 provides for the levy of a foreign tra'yel tax, on all pa8seugers embarking on international journeys, at the rate of one llundred rupees for every such j')urney to any place outside india other than a place in a neighbouring country, and at the rate of fifty rupees for every such journey to any place in a d81gbbouridg coudtry, which may be specified by notification in the official gazette by the cedtral government having regard to certain circumstances the tax will be collected by the officers of customs appointed udder the customs act, 1962 or such other officers d the cedtral government or the state governmedt or the ldternational airports authority of india as m~ be authorised in tbis behalf by the central goveromedt clauae 36 confers power on the central governmedt to gram exemptioll8 (total or partial) from the paymadt of foreign travel tax clause 38 provides for penalties and adjudication of penalties the other clauses of this c1uqxer deal with incidedtai and supplemental ma1tt£s including the power of the ceutral govermnejt to make rules and cesser of cbapt8'r vn c4 the finance (no2) act, 1971, relating to foreign travel tax clause 43 seeks to amend the first schedule to the indian post office act, 1898 w:lth a view to increasing the postage rates for letters and letter-cards clause 44 seeks to insert a new section 42a in the agricultural refinance and development corporation act, 1963, so as to exempt the income of agricultural refinance and developmem corporation est&bl1shed under the sald act the exemption will apply for purposes d income-tax and surtax and will cover the idcome of the corporation for the five accoudtidg years commeucing from its accotmting year which is the previous year for the assessmem year 1979-80 clause 45 seeks to amend section 23 of the finance act, 1973 the effect of the amendment w1l1 be that the credit guarantee corporation of india lim1ted (a company formed and registered under the companies act, 1956), which was initially exemjted from income-'tax and surtax up to the assessment year 1976-77, and which exemption was extended for a further period of two years up to the assessment year 1978-79 by the finance (no2) act, 1977, will be exempted from income-tax and surtax for one more year, i e, in relation to the assessment year 1979-80 the proposed amendmem will take effect from 1st april, 1979 clause "6 seeks to make certain amendments in the compulsory deposit scheme (lncome-tax payers) act, 1974 sub-clause (a) seeks to amend sub-section (1) of section 3 sub-clause (b) seeks to amend clause (ill) of sub-section (1) of section 4 these amendments seek to secure thatjin relation to the assessmem years 1980-81 and 1981-82 also, compulsory deposits are made at the rates specified in paragraph c of the schedule to the act these amendments will take effect frmn 1st april, 1979  financial memorandumchapter v of the bill provides for the levy of foreign travel tax the ex1at1dg machinery of customs and cej:tral excise department would be uuuaed for the woreemeat of the provil1ons of this chapter to the extent the eollectioo c1 the tax is entrusted to any state governmem: or the international airports authority of jnd:la under sub-clause (2) of clause 35 read with the opening portion of sub-clause (2)(a) of clause 40 (relating to the charges for collection payable to any state government or the international airports authority of india) it w1ll be necessary to 1dcur expenditure for payment of collection charges the expenditure to be 1dcurred for this purpose w111 be of a recurring nature and w111 be a fraction of the tax collected by state governments and the lj:ternat1onal airports authority of india the exact expenditure ebddot be estimated at this stage as that w111 depend upon the extent to which the machidery of state governments and of the international airports authority of india w111 be used for the collection of the tax and the tax collected by them but it is not likely to exceed rs25 lakhs per year the provisions of the said chapter v do not involve ~ expenditure of a donrecurring nature the provisions of the remaining chapters of the bill do dot involve ad¥ expenditure whether of a recurring or of a non-recurring nature  memorandum regarding delegated legislationsub-clause (a)(ii ) of clause 3 of the bill seeks to insert a new clause (iii) in the explanation to sub-clause (vila) of clause (6) of sectiun 10 of the income-tax act under the said sub-clause (vea), a foreign technician as defined in the explanation thereto employed by the government, a local authority, a statutory corporation or any busble •• in india is entitled to exemption from income-tax in respect of his salary subject to certain conditions at present the explanation covers only persons having special knowledge and experience in the fields of constructiooal or manufacturing operatioos or in mining or in the generation of electricity or in any other form of power or agriculture animal husbandry t dairy farming, deep sea fishing or ship-build1ng the expl8lultiod is proposed to be amended to empower the central government to cover by notification in the ot official gazette, technicians in other fields also the guidelines which have to be taken into account by the central government in notifying any other field (viz, the availaoility of indian technicians in such fields and other relevant circumstances) have been spelt out clause 5 of the bill seeks to amend section 35cca ofthe income-tax act relating to deduction to an assessee engaged in a business or profession for carrying out rural development programmes to associations and institutions approved by the authority prescribed the rewlder  the section is being amended to provide for a like deductioo in respect of expenditure by way of payment to an association or in8titution which has as its objects the training of persons for implementillg any programme of rural development as a consequenoe, the power of the prescribed authority under the aeotton would be enlarged to cover the according of approval for the parpoaes of this l8ction with respect to associations or 1nstitutioll8 for traininl of persods for programmes of rural development it may also be mentioned in thi8 conneotloo that dooations to 88sociatioos or institutians approved for the purposes of section 35cca would, where such dooations are made by persons not engaged in busines8 or profes8ioo, qualify for deduction under new section 80gga as proposed to be inserted in the income-tax act by cla~e 11 olthe bill clause 6(b) seeks to insert a new clause (vita) in sub-section (1) of section 36 of the income -tax act to provide that in respect of any provisioo for bad and doubtful debts made by a scheduled commercial bank in relation to advances made by its rural branches, an amount not exceeding ii per cent of the aggregate average advance made by such branch as computed in the prescribed manner will be allowed as a deduction thus the details as to the manner of computation of the aggregate average advances made by such rural branches are left to be presoribed by rules clause 15 seeks to insert a new section 80qqa in the income-tax act to provide for deduction in respect of professional income of authors of university text books dictionaries,etc, in any language specified in the eighth schedule to the coostitution or in any such other language as the central government may by notifloatioo in the official gazette t specify for the purposes of this sectioll the guidelines which have to be taken into account by the central government in specifying any such other language have been spelt out in the provision clauses 35, 36 and 40 forming part of chapter v relating to foreign travel tax also involve delegation of legislative power clause 35 provides for the rate at which foreign travel tax may be levied and according to this clause, the rate is one hundred rupees for each idternattodal journey to any place outside india other tha a place in a neigbbourinc ooudtry, while the rate t fifty rupees in the cue of such a journey to ady place 1d a netgbbourlng country tbe explall!ttod to sub-clause (1) of this clause empowers the central government to specify by notificatiod in the official gazette, the countries whioh may be deemed to be neighbouring countries for the purposes of this sub-clauae the emj •• ttog provides that the celltral government shall, in speoifying any country as a neighbouring country have regard to the cluse8 of per80lls who oerally perform journeys to such country the dlataaoe between india add such country, the means of oommun1oati0ll8 available for reaching suoh oountry and other relevant circumstances clause 36 empowers the central goyernment to exempt by notiflcatiod in the offioial gazette wholly or to such extent as may be specified in the netif1oatiod, any c1us or oluses of passengers or any category or catecories of passengers under any such olus frem the payment of foreign travel to the guidelines which have to be taken into aooount for granting exemptlods have been spelt out in the claule clause 40 empowers the central government to make rules to carry out the purpoees of the laid chapter relaiing to foreign travel tax the matters in respect of whioh iuch rules may be made include oollection of foreign travel tax, the charges for oollection payable to any state government or the international airports authority of india, the speclficatiod of authorities oompetent to dtllcharge functions under' the chapter tbe adjudgement of penalties, manner of payment and collection of tax penalties or ether sums due under the chapter, procedure for claiming refund of ady amount of any tax under the chapter, powers of officers to enter upon add inspect and search any ship or lidy aircraft,etc, the procedure for adjudicatioo of penalties and appeals against orders made under the chapter, the matters in respect of which powers have been delegated under the provisions mentioned in the preoedlnc paracrajils pertain to matters of administrative detau or procedure furtber, in cues where the exercise of any such power involves a discretion, the guidelines which have to be taken into account have been spelt out the delegation of legislative power is, therefore of a normal character  billto give effect to the financial proposals of the central government for the financial year 1979-80 (shri char sinwt deputy prime minister ana minister of finance) 