(as introduced in lok sabha)  arrangement of clausescialises chapter i  puuminaiiy1 short title add comldedcemedt  chapter d ratts of incom~tax2 income-tax  chapter m3 amendment of section 2 4 amendment of section 10 s amendment of section 11 6 amendment of section 13 7 amendment of section 16 8 amendment of section 36 9 a mendment of section 40 10 amendment of section 40a 11 omission of section 54a 12 amendment of section 58 13 amendment of section 67 14 amendment of section 80a 15 amendment of section 8oc 16 amendment of section 801 17 amendment of section 80l 18 amendment of section 80m 19 amendment of section 80mm 20 amondment of section 80n 21 substitution of new section for section 800 22 amendment of scction sop ~3 amendment of section flot 24 "menciml'nt of '!lcction a6 2!l substitution of n(!w s('ction for s('ction 115  ciaiises26 ameadmelt of section 194a 27 amendment of section 230a 28 omission of sectioo 235 29 amendment of second schodulfj 30 amendmedt of sixth schedule  ella prell iv31 amendment of aectloa , 31 amendma ol8ecti0il5 sse amendmeat of 8ection 18 34 amendment of 8ectlon 21 35 a mendment of sectloa 32 36 amendmedt of schedule  chaprer votiiui di reet 1pus 37 amendment of act 18 of 1958 38 amendment of act '1 of 1964  chapi'er viinijiri;cl , hl:!o' 39 amendmei& of act 32 of 1934 40 amendment of act 1 of 1944 41 a mendment of act 58 of 1957 42 amendment of act 2'1 of 1958  cha7rer vdfortii':' travel tax 43 extent add commencemeat 44 definitions fulises 45 j'ore1gd travel m 46 power to exempt 47 peaalty 48 protectlod of action taken in pod fauh 49 power to make rules 50 power to iiiilb regulatioll8 51 rules and aot1flcatlons to te laid before pai'hemeiit  chapi'er vm miscellaneous52 amendment of act 6 of 1898 53 amendment of act 47 of 1961 54 housing and urban development pi_nce corporation private ltd to be exempt for a certain period from liabuity to  y income-tax and surtax 55 repeal the first schedule the second schedule  the finance (no2) bill, 1971 a billto blve elfec, to rile iinclicial proposals of the carrol governlltelit for the financi41 year 1971-72 ciid to provide for the 'evy of foreisn travel tcii be it enaoted by parliament in the twenty-secodd year of the repubuc of iddia as follows:- chapter i puliminaryi (1) this act may be called the finance (no2) act, 1971 5 910ft title and commencement (2) save as otherwise provided in this act, sections 2 to 38 liid sections 53 add 64 sbl11 be deemed to iii ve come into force on the 1st day of april, 1971  chapter d rates of income-tax10 i (i) subject to the provisions of sub-sections (2) and (3) for the asses8ment year commeaciog on the 1st day of april 1971, income-tax shall be cbarged at the rates specified in part i of the first schedule add, in the cases to which paragraphs a, b, c and d of that part apply, shall be idcrelsed by a surcharge for purposes of the union add in the cases to which paragraph c applies, also by a special surcharge for purposes of the union, calculated in each case in the madder provided therein 5 (2) in makidg any assessment for the assessment year commeuolag on the 1st day of april, 1971, where the total income of a company, other than the life insurance corporation of india established under the life insurance corporation act, 1956 ~1 of 1956-iooludes any profits and gains from life insurance business, the 10 idcome-tax payable by it shall be the aggregate of the lacome-tax calculated -(i) on the amount of profits and gains from life insurance business so included, at the rate appllcable in the case of the life insuranoe corporation of india, in accordaooe with para- 15 graph e of part i of the first schedule, to t  t part of its total income which consists of profits and gains from life insurance business i add (u) oa the remaining part of its totaliooome, at the rate applicable to the company oil its total income 20 (3) in oases to which chapter xu or section 164 of the incometax act, 1961 (bereidaiter referred to as the inoome-tu: act) applies, 43 of 196l the tax ohargeable shall be determined as provided in that chapter or that section, and with referenoe to the rates imposed by sub-section (1) or the rates as speclfied in that chapter or section, as the case 25 may be (4) in cbses in whioh tax has to be deducted under seotions 193, 194, 194a and 195 of the inoome-tax act·at the rates in force, the deduction shall be made at the rates opeolfled in part d of the first schedule 30 (5) in cases in whioh income-tax has to be calculated udder the first proviso to sub-section (5) of section 132 of the income-tax aot 01' oharged under sub-secuoa (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-seotion (2) of section 176 of the said act or deduoted under section 192 of the said act from 35 1dcome chargeable under the head "salaries" or deducted udder sub-section (9) of sectiod 80e of the said act from any payment referred to in the &aid sub-section (9) or in which the ''advance tax" payable udder chapter xvd-c of the aid act has to be computed, at the rate or rates in force, such ldcome-tax or, a8 the 40 case may be, ''advance tax" shall be so oaloujated, cbarpd, deducted or computed at the rate or rate spectfled in part m of the first schedule: provided that in respect of any income cbargeable to tax 5 udder section 184 of the iocome-tax act at the rate of sixty-five per cent, ''advance tax" shall be computed at that rate (6) for the purposes of this section add the first schedule,-(a) ''co~ny in wllich the pubuc are substantjally idterested" means a company which is such a company as is referred to in 10 section 108 of the income-tax act; (ii) "domestic company" means an indian company, or any cjther company which, in respect of its idcome liable to incometax under the iocome-tax act for the assessment year commencidg oil the 1st day of april, 1971, bas made the prescribed arrange-15 ments for the declaration and payment wtthtn india of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 194 of that act; (c) "industrial company" means a company which is mainly 20 engaged in the business of generation or distribution of electricity or lldy cjther form of power or in the constructioil of ships or in the manufacture or processing of goods or in m1didg expiciii,hon -for the purposes of this clause, a company shall be deemed to be mainly engaged in the business of genera-25 tion or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processidg of goods or in miding, if the income attributable to any ode or more of the aforesaid activities included in its total income of the previous year (as computed before making any deduction 30 under cbapter via of the iocome-tu act) is not less than fifty-one per cent of such total income; (d) '\ax free security" means any security of the central government issued or declared to be income-tax free, or any security of a state government issued income-tax free, the 35 income-tax whereon is payable by the state government; (e) all caber word and expressions used in this section and the first schedule but nca defined in this sub-section and defided in the lucome-tax act shallbave the meanings, respectively, a88lgned to them in tbat act  i in eectiod 2 of the 1dc0me-tax act-alii en elm enr of section 2 (a) for clause (17) the followidg clause shall be substituted, namely:-5 i (17) ''company'' mea08-(i) any indian complny or (if) any body corporate incorporated by or udder the laws of a country outside india, or 10 11 of 1922 (iii) any inst1tutiod, assoctattod or body which is or was assessable or was assessed as a company for any assessment year under the indian income-tax act 1922 or which is or was assessable or was assessed udder this act as a compl0y fcr aoy assessment year commencing oil or before the 1st day of april, 1970 or 15 (iv) any institution, association or body whether lncorporated or not and whether indian or non-indian which is declared by general or special order of the beard to be a company: provided tblt such institution, association or body 20 shall be deemed to be a company only for such assessment year or assessment years (whethel' commencing before the 1st day of april, 1971 or on or after that date) as may be speoified in ~he declarationi 'i (b) in olause (18) after liub-<:lause (a) the following sub-25 olauses 8hall be inserted namely:-"(44) if it is a company which i8 regi8tered under section 26 of the companies act, 1966; or 1 of 19xi (clb) if it is a company having no share capital and if, baying regard to its objects the nature and composition of 30 its membership and other relevant considerations it is declared by order of the beard to be a company in which the public are substantially interested: provided that such company shall be deemed to be a company in which thtl public are substantially interested only for such 35 assessment year or assessment years (whether commencing before the 1st day of april, 1971 or on or-der uat &8) u may be specified in the declaratiodi or"i (e) in clause (26),-(i) after sub-clause (i), the wnw  1ub-cia  s 1; shall be inserted, namely:-"(ia) a corporation establlmd by or wider a central, state or provincial act, fib) any institution, &8sogiauoa or body which ts declared by the beard to be a c  ay under clauae 10 (17) " (ii) in the proviso, for the words "regjstered offloe of the company", the words "re,istered or, as the case may be, principal office of the company, corporation, institution, association or body" shall be substituted; 15 (d) after clause (4ja), the followi olause  11 be ld  rted with effect from the lst day of ojaary, 1972,  mely:-'(438) ii tax recovery comdslober· ••••• r mi •• ioaer or lid a •• '_teat cmimioaer f "ea • &as wlao may be  thortsed by the ceatral gov_t, , 20  eral or epeeial aotifioatlod la the oflolal gaetae,  exeret  the powers of a tax recovery comminioder;'  - 0 in section 10 of the income-tax act -am en din «n of merion 10 (a) in clause (20) for the words ''which accrues orarises from the supply of a commodity or service within its own jurls-25 dictional areaj", the words ''which accrues or arises from the supply of a commodity or service (not beine water or electricity) within its own jurisdictional area or from the supply of water or electricity within or outside its own jurisdicuolill area;" shall be substituted with effect from the 1st day of 30 april, 1972 (b) in clause (26a),-(i) the brackets and words "(not being an individual who is in the aervice of government)" shall be, and shall be deemed always to bave been, omitted; 35 (ii) for the expression "1st day of apru, 1970", the expression "1st day of april, 1975" shall be substituted and shall be deemed to have been substituted with offuct from the 1st day of april, 1970  in section 11 of the income-t&x act after sub-section (1) the followllll sub-section shall be add shall be deemed always to have been inserted  mely:-'(ia) for tha purposes of sub-section (1)-( 4) where a capital asset beidg property held udder 5 trust wholly for c  ritable or religious purpoles is transferred and the whole or any ,rt of the net coll8ideration il utilised for acquiring another capital alset to be so held, then the capital gain arising from the transfer lhall be deemed to have been applied to charitable or religious pur- 10 poses to the extent specifled hereudder namely:-m where the whole of the net consideration is utiuled in aoquirlng the new capital alset, the whole of such capital gain; (if) where only a ,rt of the net consideration 15 is utuised for acquiring the new capital asset, so much of such capital gain is equal to the amount, if any by which the amoudt so utlllsed exceeds the oost of the transferred asset; (li) where a oapital aslet, being property held under 20 trut in part only for such purposes is transferred and the whole or any part of tbe net consideration is utilised for acquiring another capital 88set to be so held, then, the appropriate fraotion of the capital gain arising from the traufer lhall be deemed to have been applied to charitable 25 or religious purposes to the extent specified hereunder, _mely:-(i) where the whole of the net consideration is utll1led in aoqujrilll the new capital aslet the whole of the appropriate fraotion of such capital gain; 30 (ti) in any other case, so much of the appropriate fraction of the capital gain as is equal to the amoudt, if any, by which the appropriate fraotion of the amoudt utlllaed for acquiring the new asset exceeds the appropriate fraotlonof the oolt of the transferred a8set 35 ezplcanglion -in this sub-ieotion,-(i)  ppropriate fraction" m_ns the fractlod which represents the extent to which the idcome derived from the capital &8set trauferred was immediately before such tr&d8fer applicable to cbarbable or reli,toua pur-poll8s; 5 (ii) ''oost of the tradbferred  set" meaoa the aarepte of the cost of acquisition (as allcertatned for the purposes of seottou 48 add 49) of the oapital asset whloh is the subject of tjae traufer add the cost of lily improvemeat thereto within tile meanldg asigned to tlat expression in sub-clause (b) of clause (1) of section 55; 10 (tii) ''net coulderation" meau the full value of the coukieration received or aocruing as a result of the transfer of the capital asset &8 reduced by any expedditure incurred wholly and exclusively in codil8otioll with such transfer ' amendment of section 13 i in 8ection 13 of the income-tax act in sub-section (4) for 15 the words '-molleys of the trust or the 1a8tltutlon" the words "funds of the trust or the institution" slall be substituted amendment of section 16 1 in section 16 of the inoome-tax act in clause (ill) with effect from the 1st day of april 1972-( a) in sub-olause (b) for the entry "rs 60" the entry 20 ''rs75'' ala11 be substituted; (b) in sub-olause (e) for the entry ''rs35'' the entry "8s50" shall be substituted amencbent of sectioo 36 i in section 38 of the income-tax act in clause (liiil) of subsection (1), for the words ''industrial development" the words 25 "industrial or agricultural development" sla11 be substituted with effect from the 1st day of april 1972 alii en dment of section 40 i in section 40 of the income-tax act with effect from the 1st day of april 1972-(4) in clause (a) sub-olause (ii) slall be omittedi 30 (b) in clause (c), for the words "benefit derived by or aocruing to it therefrom" the followidg shall be substituted ibmely:--''benefit derived by or accruidi to it therefrom 80 however that the deduction in respect of the aggregate 35 of such expenditure add allowance in respect of any per80n referred to in sub-clause (t) shall in do case exceed aeveatytwo thousand rupees"  ii iii hclkla -6oa of the jocome-tax act, with effect from ta 1st day of april, 1972,-ameadmeacof aection ca (q) ta sab-seotloo (1) ld the prov18o to clauh(4) for the words ''pronlou of tlaia hguoe" tbe words ''prov181ou of tilll ub-iecuoe" iiiall be i  ; 5 (b) after lub-secttoe (4), lm followl •• ub-ections shall be maerted  mely:-'(5)(0) where the aall8l188-(i) hllcurs ally expeaditure which result directly or bkureotly ld the pay1ll- fa any a1ary to ad employee or 10 a former emplojee 01' (u) idcnirs any ~re which results directly or liidinclly ld &be prcwlsloe of &dy perquisite (whether codverttble idto moiley or dot) to an employee or incurs direotly or indirectly any experu:liture or is entitled to ady 15 allowalm)e in respect of any assets of the allessee used by an empl~ee either wholly or partly for his owd purpoel or bedefit, then, labject to the provisions of clause (b) 10 much of such expenditure or allowance as 1 til exc  s of tm limit specified 20 m respect tllereof ld olauee (e) stall oct be allowed as a deduot101l: 25 provided that in computing the aforesaid expenditure or allowa,8 the follow1 shall not be taked into account, aamely:-m the value of &dy travel codoesion or assistance referred to in olaue (5) of section 10; (if) "isap id_yi or the val_ of any free or oodce8,loaal pa  referred to in lub-olaule (i) of clauae (6) of sectioll 10; 30 (ift) ally payment referred to 1d clause (til) or c]ause (11) of lub-aectiod (1) of lectiod 36; (ill) any expeadlture referred to in clause (ii) of sub-iectiod (1) of seot100 36 (b) nothtllc in clause (a) ,11 apply to any apeadaure 3& or auadce fa relation to-(t) a, employee in respect of ady period of hil employmoll& outside india; 5 oi) any employee being an individual referred to in sub-<:lause (liii) or sub-<:lause (liiia) of claue (6) of section 10 in respect of any period during which he i entitled to the exemption udder ub-<:jaue (vii) or as the case may be sub-clauh (vii" aforealdi (iii) ,:ny employee whoae 1dcome oharr_ble udder the head "salaries" is seven tbouaaad add five hwadred rupees or less 10 is (c) the limits referred to in clause (a) are the followidc namely:-(ij in respect of the expenditure referred to in sub-clause (ij of clause (0) in the case of ad employee, an amount calculated at the rate of bve thousuad ~s for each month or part tbereof comprised in the period of his employment in india during the previowl year, and in tile case of a former employee, "iai an individual who ceues or ceased to be the employee of the  sessee during the previous year or any earlier previous year, sixty thousand rupeesi 20 25 (ii) in respect of the aggrepte of the expenditure and the allowance referred to in sub-alaat' (it) of clause (a) one-ruth of the amount of the i&iary payable to the emjioyee or an amount caloulated at the rate of one thousand rupees for eaab moath or part thereof comprised in the period of employment id latia of tile emjioyee during the previous year, whichever" less 30 erplanation 1- the provisions of this sub-section shall apply notwithstadding that any amount not to be allowed ilnder this sub-section i included in the total income of the employee or, as the case may be, the former employee erpl anelti,n 2 -in tills sub-section,-(a) if_jary" has tbe meaning  igned to it in clause (1) read wwl clause (3) of aeotion 17 subject to the followini modifjaauoa, _mely:-(i) in the said elaue (i), the word "perqullte" occurring in8ub-clause(iv) and the wbole of ubclause (vii) ball be omluedi (2) id the said olaue (3), the reference to '  see" _11 be construed a reiereac •• to "emplo¥ee or former emplo,ee" aad the references k» "ills employer or former employer" aad ''an employer or a former employer" iall be coiltrued a reference to ''the a •• e  "; (b) ''perquisite'' md8-(i) the value of redt-free acoommodation provided to the employee by the as8881ee; (ft) the value of any collcealloa iii the matter of reut reapectldg any aooommodatloll 5 provided to the employee by the a88essee, (iii) the value of any benefit or amenity lranted or provlded free of coat or at codoessloaal rate to the employee by the aslelsee, (tv) any lum paid by the as18s8  in reapect 10 of any obligation whloh, but for nob paymeat, would bave been payable by tbe employee, and (v) any aum paid by the a8le88ee whether directly or through a fund other than a recoptsed provident fund or an approved superamuatloa fund, to 1& effect an aslul'ldoe on the ius of the employee or to effect a oaml'8ot for an adlluity (6) where the 88sess88 meure any expenditure by way of fees for servloe8 rendered by a persoll who at any time durbrc the twenty-four months immediately precedijjg the previous 20 year was an employee of the 888essee-(a) such expeddtture by wily of feel or (b) where the use8see has al80 incurred 111 relauon to such persoll any expedditure by way of salary referred to ill 8ub-claue (i) of claue (a) of sub-section (5) the aggre-25 gate of such expenditure by way of fees and by way of salary shall not be allowed 88 a deduction to the extent luch expeddtture by way of fees or as the case may be the aggregate of such expenditure by way of fees and by way of salary exceeds sixty thousand nipees so omission of section 54a 11 sectioll ma of the income-tax act 8lall be omitted with effect from the 1st day of april, 1972 amendment of section ~ 36 u in olau8e (ca) of sub-seotioll (1) of 8eotton 58 of the ldcometax act, sub-olause (tv) 8511 be omitted with effect from the lit day of april, 1972 is in sect ton 67 of the income-tax aot -amendment of  enon 67 40 (a) tn olaule (a) of sub-section (1), for the wordl "registered firm" the wordl, brackets, letter and figures "rep8tered firm or an unregistered firm &i8e88ed as a registered firm udder clause (b) of 8ectioll 183" shall be substituted ; (b) ill sub-sectloll (4), for tbe word i "a firm tr_ted as rellstered in acoordance with the prov1aioll8 of" the words ''an ud1'epstered firm asaesaed as a re,latered firm udder" sball be aubsmuted ammdment of section 80a ja id section 80a of the 1dc0me-tu: aot, in sub-section (3), for the word, ftgure8 add letter "section 80l", the words, f1curea 5 and letters "section 80101 or section 80n or section 800" sull be substituted with effect from the 1st day of apru, 1972 amendment of ii id section 80c of the 1dc0die-tu act, with effect from the 1st day of apru, 1972,-~ction 80c (a) for sub-section (i), the following sub-section shall be 10 lubstltuted, dllmely:-"(1) id computing the total idcome of an assessee, there shall be deducted, in accordadce with and subjeot to the provisions of this section, an amount caloulated, with reference to the aarepte of the sums speouled in sub-aeotion (2), at 15 the followldg nt:es, namely:-the whole of such aggregate; (a) where such aarepte does not exceed rs1,ooo (b) where such aaregate exceeds rs1, 000 but does not exceed rs 6, 000 20 rs1,ooo plus 50 per cent of the amount by which such aaregate exceeds rs1, 000 rs 3, 000 plu s fo per cent of the amount (c) where auch aregate exceeds rs6,ooo 25 by which iuch aaregate exceeds rs5,ooo fl (b) in aub-seot1oa (4), in clauses (ii) and (ill) for the words ''fifteen thouaaad rupees", the words ''twenty thousaad rupees" shall be 8ublt1tuted amendment o f ~ctioo 801 ji id section 801 of the ldoome-tax act in sub-section (i) 30 for the words "eight per ceut ", the words ''flve per cent " lhall be substituted with effect from the 1st day of april, 1872 amendldent of iy id section 80l of the ldcome-tax act, in lub-section m with effect from the 1st day of april 1872-li~ction sol (a) for the words "where the ,ross total inoome of an 35 assesee", the words 'where the ,robb total income of an  esll88, being ad iadlvldual or a hlndu undivided famuy " _11 be substituted (b) fn clause (vi), the word ''or'' occurring at the end shall be om1tted; (e) in clause (vii) for the word add figures "section 36, ", the words add filures "section 36; or" ha11 be substituted; (d) after clause (vii) the following clause shall be illserted, 5 aamely:-"(viii) interest oil deposits with a co-operative society, nct beidg a co-operative society referred to in clause (vi), made by a member of the society," 10  11 in section 80m of the income-tax act, with effect from the lst day of apru, 18'12,-amendment of aecliod son (a) in aub-sectloil (j), -(i) for clauses (a) and (bl, the following clauses shall be substituted, aamely:-"( 4) sixty per cent of such income, where the 15 asseasee is a domestic company; (b) sixty-five per cent of such income, where the assessee 18 a foreign company "; (ii) the explanation shall be omitted; (b) for sub-section (2) and the explanation appearing below 20 that sub-section, the following sub-section shall be substituted, mmely:-"(2) where a company to which this section appues is entitled also to the deduction under section bole, the deduction under sub-section (1) shall be allowod in respect of 25 income by way of dividends referred to therein as reduced by the amount of the deduction under section bok "  ii in _etton 80mm of the income-tax act, with effect from the 1st day of april, 1972,-amendment of section bow 30 (a) in sub-scctlon (i), -(0 for the words "assessee being an indian company" the words and brackets "assessee, being an indian company or a person (other than a company) who is resident in india, " shall be substituted; (ii) for the words ''received by it", the words "received by the assessee" shall be substituted: (iii) for the words "central government", in both the places where they occur, the word "board" shall be substituted: 5 (ill) for the words "there shall be allowed a deduction" the words ''there shall in accordance with and subject to the provisions of this section be allowed a deduction" shall be substituted; 10 (ii) after the proviso, the following proviso shall be inserted, namely:-15 20 "provided further that approval of the board shall not be necessary in the case of any such agreement w hicb has been approved for the purposes of the deduction under this sub-section by the central government before the 1st day of april, 1972, and every application for such approval of any such agreement pending with the central government immediately before that day shall stand transferred to the board for disposal "; (b) after sub-section (2), the following sub-section shall be inserted, namely:-25 30 "(2a) where the assessee is a person other than a oompany or a oo-operative society the deduction under sub-section (1) shall not be admissible unless the accounts of the assessee for the previous year have been audited by an acco1u1tant as defined in the explanation below subsection (2) of section 288, and the ass8ssee furnishes, along with his return of income, the report of such audit in the prescribed form duly signed and verified by such acoo1u1tant and setting forth such particulars as may be prescribed " a in section 80n of the income-tax act with effect from the 1st day of april, 1972,-amendliient of aection son 35 (a) for the words "assessee being an indian oompany", the words and brackets "as88ssee, being an indian company or a person (other than a company) wbo is resident in india, " shall be substituted; (b) for the words, f:lpre and letters "central govern-40 ment in this behalf before the 1st day of october of the relevant assessjpent year", the word ''board in th1a behalf" shall be substituted; (e) the foll~ing provisos shall be inserted at the end, namely:-5 "provided that the application for such approval is made to the board before the 1st day of october of the relevant assessment year: 10 provided further that the approval of the board shall not be necessary in the case of any such agreement which has been approved for the purposes of the deduction under this section by the central government before the 1st day of april 1972 and every application for such approval of any such agreement pending with the central government immediately before that day shall stand transferred to the board for disposal " 15 21 for section 800 of the income-tax act the following action shall be substituted with effect from the 1st day of april, 1972, namely:-substitution dine section for section 800 "800 (1) where the gross tota11ncome of an assessee, being au lddlan company or a person (other than a company) who is reaideot in india, includes any income by way of royalty, deductioa in respect 01 loyshies etc 110m cenaia foreijp enterprise  commiuiod fe  or any 11muar payment received by the 20 agel  from the governm-t of a foreign state or a foreign edterpri •• ln oouideration "r the use outside india of any patent invention, model, design, secret formula or process, or similar property right, or information concerning industrial commeroial or sclenuflc knowledge experience or skill 25 made available or provided or agreed to be made available or provided to suoh govemmenf or enterprise by the aslessee,or iii consideration of technical services rendered or agreed to be rendered outside india to such government or enterprise by the assessee, under an agreement approved by the board in this 30 behalf, there shall be allowed, in accordance with and subject to the provisions of this aeetlon, a deduction of the whole of inch income in computinc the total income of the aslessee: 35 provided that the appl1 cation for the approval of the agreement referred to in this sub-action is made to the board before the 1st day of october of the assessment year in relation to which the approval is first sought: 40 provided further that approval of the board shall not be necessary in the case of any such agreement which haa been approved for the purpose, of the deduction under this section by the central government before the 1st day of april 19'72 and every applicauon for such approval of any such agreement pending with ~e central government immediately herore that day hall stand transferred to the board for disposal (2) where the assessee is a person other than a company or a co-operative society, the deducuon under sub-section (1) shall not be admissible unleas ihe acoounts of the assessee for the previous year have been audited by an accountant as defined 5 in the ezplanation below sub-secuon (2) of section 288 and the assessee furnishes, along with his return of income, the report of such audit in ihe prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed " 10 22 in section 80p of the income-tax act in clause (a) of subsecuon (2) with effect from the 1st day of april 1972-amendment of section bop, (a) in sub-clause (ii) the word ''or ii shall be inserted at the end: (b) after sub-clause (ii) the following sub-claujes shall be 15 inserted, namely:-"(iii) the collective disposal of the labour of its members, or (liii) fishing or alued activities, that is to say, the catching, curing, processing, preserving, storing or 20 marketing of fish or the purchase of materials and equipment in connection therewith for the purpose of supplying them to its members, ": (c) the following proviso shall be inserted at the end, namely:-25 ''provided that in the case of a co-operative society falling under sub-clause (iii) or sub-clauae (liii) the rules and bye-laws of the society restrict the votink rights to the following classes of its members namely:-(1) the individuals who contribute their labour or, 30 as the case may be, carry on the ftshing or a1l1ed activities: (2) the oo-operative credit societies which provide financial assistance to the society: (3) the state government; " 35 ii in section sot of the income-tax act, in clause (b) with effect fl'om the 1st day of april, 1972,-amend-ident 01 sechon bot, (a) in sub-clause (0 for the words "forty-five per cent " the words ''thirty-five per cent ii ahall be substituted: (b) 1n sub-olause (it) and 1d the proviso, for the words "s1xtv-bve per oont ", wherever they occur, the words tltlfty per cent " shall be substituted amendment of section 86 24 in section 86 of the income-tax act, in clause (iii) , after the words ''unregistered firm", the brackets, words, letter and 5 figures "l not being an unregistered firm assessed as a registered firm under clause (b) of section 1q,i''' shall be inserted ii for section 115 of the ldoome-tax act, the followidg section shall be substituted with effect from the 1st day of april, 1972, namely:-10 substitutioo olnew section for rction 11~ tax on capital 8sids id case of compsnie  '115 where the total income of a company includes any income chargeable under the head "capital gains" relaung to capital assets other than short-term capital assets (such income being hereinafter referred to as long-term capital gatns), the income-tax payable shall be the aggregate of-15 (i) the amount of income-tax calculated on the am,01dlt of loug-term capital gains included in the total income-(a) at the rate of forty-five per cent on so much of the amo1dlt of such long-term capital gains as relate to buildings or lands or any rights in buildings or lands; 20 and (b) at the rate of thirty-five per cent on the balance of such long-term capital gains, if any; and (tt) the amount of income-tax with which it would have been ohargeable had its totalinoome been reduced by the 25 amount of loug-term capital pins referred to in clause (i )j - •• in aection ina of the income-tax act, in clause (v) of subsection (3), after the words ''by a co-operatlve society", the words "to a member thereof or" shall be inserted amendment of eerion 194a 17 in section 230a of the income-tax act with effect from the 30 1st day of october, 1971,-amendment of ection 230a (a) in sub-section (1), -(i) the brackets and words "(other than agricultural land)" shall be omitted; 35 18 of 19~ 14 of 1963-7 of 1964 (ii) in clause (a), for the words and figures "and the gift-tax act 1958", the words, figures and brackets "the gift-tax act, 1958, the qlper profits tax act" 1963, and the companies (profits) surtax act, 1964" shall be substituted; (b) after sub-section (2), the following sub-sectlon shall be inserted, namely:-5 "(3) the provisions of sub-section (1) shall not apply in a case where the person referred to in that sub-section is any such institution, association or body, or belongs to any such class of institutions  associations or bodies  aa the board may  for reasons to be recorded in writing, notify in this behalf in the official gazette " ii section 235 of the income-tax act shall be omitted with 10 effect from the 1st day of april" 1972 omislliod of seedod 2,,, 21 in the second schedule to the income-tax act, with effect from the 1st day of january 1972,-amerulmc of secodd schecl&le (ii) in rules 82 and 83, for the words ''tax recovery officer", the words "tax recovery commissioner, tax 15 recovery officer" shall be substituted; (b) in rule 88,-(i) for sub-rule (1), the following sub-rule shall be sub8tituted, namely:-20 n( 1) an appeal from any original order passed by the tax recovery officer under this schedule, not being an order which i8 conclusive shall lie -25 (a) in the case of a tax recovery officer, being a collector or an additional collector, to the revenue autbority to which appeals ordinarily lie against the orders of a collector under the law relating to land revenue of the state concerned: 30 (b) in the case of a tax recovery offtcer, being an officer referred to 1d sub-clause (ii) of clause (44) of section 2, to the revenue authority to which an appeal or an application for revision would ordinarily lie, if the order pasled by him were the order under the law relating to land revenue or other public demand for the time being 1d force in the state ooncemed; and 35 (e) in the case of a tax recovery officer being an omcer referred to in sub-clause (iii' of clause (44) of section 2, to the tax reoovel')' commissioner' ': (ii) after sub-rule (3) the following sub-rule shall be inserted, namcly:-"(4) notwithstanding anything contained in sub-rule (i), where a tax recovery commissioner is authorised to exercise powers as such in respect of any area, then, -5 (a) all appeals against the orders passed before the date of such authorisation by any tax recovery officer authorised to exercise powers as such in respect of that area or an area which is included in that area, shall lie to such tax recovery com-10 missioner; and (b) any proceeding by way of appeal against any orders refel'l'ed to in clause (a) pending on the date mentioned in that clause before an appellate authority referred to in clause (0) or clause (b) of sub-15 rule (1) shall stand transferred to such tax recovery commissioner for disposal "; (e) in rule 87, for the word "officer", the words "tax recovery commissioner, tax recovery officer or other officer" shall be substituted; 20 (d) in rule 92-(i) in sub-rule (1), for the words "tax recovery officers", the words ''tax recovery commissioners, tax recovery officers" shall be substituted; (ii) in sub-rule (2), in clause (a), for the words "tax 25 recovery officers", the words "tax recovery commissioners or tax recovery officers" shall be substituted  •• in the sixth schedule to the income-tax act, with effect from the 1st day of april, 1972,-ameadmeot of siub schedule (ea) for the bracketsj words, figures and letters "[see sec-30 tiona 80b(7), 801 and 80)g", the following shall be substituted, namely:-"{jee sections 80b(7) and 80v'; (b) in item (2), the word "aluminium", shall be omitted: fe) item (10), (12), (14), (18) and (20) shall be omitted 35  chapter iv wealth-taxamendmene 01 section  27 of 1957 11 in section 4 of the wealth-tax act 1957 (hereinafter referred to as the wealth-tax act) with effect from the 1st day of 5 april 1972,-(a) in sub-section (1)-(i) in the proviso to clause (a) for the words figures and letters ''after the 31st day of march 1964", the words figures and letters ''after the 31st day of march, 1964 but before the 1st day of april 1972" shall be substituted: 10 (ii) in clause (b), for the words "member of an association of persons", the words and brackets ''member of an association of persons (not being a co-operative housing society)" shall be substituted; 15 (b) after sub-section (1), the following sub-section shall be insertedj namely=-"(la) where, in the case of an individual being a member of a hindu undivided family, any property having been the separate property of the individual has, at any 20 time after the 31st day of december, 1969j been converted by the individual into property belonging to the family through the act of impressing such separate property with the character of property belonging to the family or throwing it into the common stock of the family (such property 25 being hereinafter referred to as the converted property), then notwithstanding anything contained in any other provision of this act or in any other law for the time being in force for the purpose of computing the net wealth of the individual under thib act for any asbessment year commenc-30 ing on or after the 1st day of april, 1972,-(a) the individual shall be deemed to have tru8-ferred the converted property, through the family, to the members of the family for being held by them jointly; 35 (b) the converted property or any part thereof, in 80 far as it is attributable to the interest of the individual in the property of the family" shall be deemed to be assets belonging to the individual and not to the family; (c) any part of the converted property in so far as it is attributable to the interest of the spouse or any minor child of the individual in the property of the family and where there is a partition (partial or total) amongst the members of the family, the converted 5 property or any part thereof which is reoeived by the spouse or minor child on suoh partition shall be deemed to be assets transferred indireotly by the individual to the spouse or minor child and the provisions of subseetlon (1) shall, so far as may be, apply accordingly: 10 provided that the property referred to in clause (b) or clause (c) shall ,on being included in the net wealth of the individual, be excluded from the net wealth of the family or, as the case may be, the spouse or minor child of the individual "; 15 (c) after sub-seetlon (6) and before the explanation the following sub-section shall be inserted, namely:-"{7) where the assessee is a member of an as80clatlon of persons, being a co-operative housing society, and a building or part thereof is allotted or leased to him under 20 a house building scheme of the society the assessee shall, notwithstanding anything contained in this act or any other law for the time being in force, be deemed to be the owner of such building or part and the value of such building or part shall be included in computlng the net wealth of the 25 assessee; and, in determining the value of such building or part, the value of any outstanding instalments of the amount payable under such scheme by the assessee to the society towards the cost of such building or part and the land appurtenant thereto shall, whether the amount so payable is 30 described as such or in any other manner in such scheme, be deducted as a debt owed by him in relation to such building or part "; (ef) in the explanation -(i) in clause (cl), the word "and" occurring at the end 35 shall be omitted; (ii) after clause (b) the following clauses shall be inserted, namely:-i(e) the expression "property" includes any interest in property, movable or immovable, the proceeds 40 of sale thereof and any money or investment for the time being representing the proceeds of sale thereof and where &be property is converted into any other property by any me&bod, such other property; and 5 10 (d) the expressions "interest of the individual in &be property of the family" and "interest of the spouse or any minor child of the individual in the property of the family" mean, respectively, the proportion in which the individual or, as the case may be, the spouse or minor child would be entitled to share the property of the family if there bad been a total partition in the family as clil the valuation date of the funny relevant to the aas8ssment year for which the individual is to be assessed under sub-section (la) '  ii in section 5 of the wealth-tax act,-amendment of s~ction 5 (a) in sub-secuon (1), -15 (i) in clause (liiii), after the words "articles intended for the perllodal or household ule of the assessee", the words", but not including jewellery" shall be inserted, and shall be deemed to have been inserted, with effect from the 1st day of april, 1963; 20 (ii) in clause (viii) as so amended, the following provisos and elpj  ations shall be inserted at the end with effect from the 1st day of april, 1972, namely:-25 'provided that the fumtture, utenshs or other articles are neither made wholly or partly of, nor contain (whether by way of embedding, covering or otherwise), gold, &fiver, platinum or any otqer preoloub metal or 8fty alloy containing one or more of suc::h prec:lous metals: '30 provided·furtw that nothing in this clause shall operate to exclude lrom the net wealth of the asbessee any conveyance or conveyances to the extent the value or the aggregate value thereof exceeds the awn of twenty-flve thousand rupees 35 etplgllation 1 -for the purposes of this clause and clause (xiii), "jewellery" includes -40 (a) ornamalts made of gold, suver, platimlld or any other precioua metal or any alloy containing one or more of such precioul metals, whether or not coata1njng any precious or semi-preclous stade, add whether or not worked or sewn into any w-ring apparel; (~)  eclou or hmi-preeiou  whether or dot let ill any ~ture llterln or adler aruele or worked or ii8w1l into _y w_ridg ajlllarel e"i •• tiol 2 -for the piil'i)mes of tlds cl  "codveymaoe" iililllli idy motor car or odaer mechadl-5 cally propelled vehicle aircraft or boat;'; (ut) in elmae (ii) for the words figures  letters "after the 31st day at march 19m" 1be word •• rtprea add letten "after the 311t day of karch 196 •• but before the ht day of jud •• 1111" shall be 8ilbatituted with eftect 18 from the lit day of april, 1172; oil' after ellwle (1ivii), the followidc elauel lhall be inserted with •• ct from the 1st day of april 11"12 lwdely:-"flrviii) 1id1 llhares held by the  iillidy co-operatlve ioclety: 11  (iril) any ciepoelta with oo-operati" eeclety dot beac  ta referred to ill ola  (1m) or elaee (ur), made by a member of" eectety; (ur) , d-ta wi •• oo-aperat"' ,,"di lioolety mllde by - member of the aoc1etj to •••• bill  or part tllereolis ailotw or 1  __ r a ~ buudlqlalaeme ofe 1ioei&ety wjen  ~ _ mea made __  sc"""; (b) in"motiou (la)  (3), jar" bracketa, savel  word "(1m) aad (iimw', the br  , apr  won - "(sm) , (rm), (jjmu1- (irir)"  wttil 8ect fro  lilt clay of april 11'72  ia aeotlea 18 of tile  -tax aat,  eclt  1m lilt day of april 19t1,-ca) in c  (i) of  ect:l0ll (i), for  cia  (a) 38 add (b~ tile followilltr  cla1lle1 sbm! be illlmutaw,  17:-'t( a) tbe aet wealtia a  1iiider i8ouoii ii al redaoetl by tile aaowat epeded in  (ta), or (8) tiae net wealth ul8h8cl uddar eeatlca 1'1 wher -  __ lim been mal_ uader tw aeotlca,  35 r  ,-(1)  wealth, 11 1ulj'  prn10uly  eeatlod 18 or eeatiam 17 or wldcbever 1 creater "i () fter lub-_cuod (1),  jouowin, m-motioll iiiall _ 1n8erted, _mely:-5 "( la) 1he agudt referred to ill 8ub-cla  (a) _  ule (8)(2) of alaue (i)f 8ub-_dod (1) mall be-(ii) iii tile cue of  _cilvilied fuailj re 2, to m:  (t)  eof  6  m" 10 ii  mctio 21 f , wealtll-tax ac iii  (4),  effect frca the 1 _ill april, 1'72,-() sa c  () aad in tile prov180 tile wont ''in  clue of ad bd11'icnal" 811&11 be mitted: 16 t', tile follawtdc espi  lcioli -u be 1ill1ed at  -  eiy=--f ida bub-meuoil id uy  _t imiac  referred 10 to ill tile ~ aa1  re_red to ia  (~,,) (ml (jlii~ (xliii) (iii ii) (~%ti~ (11111) (1iiiii), (ulliii) ad (nix) of ___ ouoa (1), at _ct1od -u  _chided "   iii 8ecu_ 12f die altia  tax act i eq'  i, fer 1& liie wonls -t recevery ofbeer  lite tax recevery cimi_ rerred to ill die ia,e-lax act or lile ndesam 111  _    e4  tax leoovery offtcer  die tax leeevery c "hier-, lite wen -tax recovery eo-i  lite tax lecevery ofbeer rei  to i liie l - ,e-tax act all lie _e •• d  die ta 8eeevery c  11 liie tax recovery ofacer- teii  &eii wttl effect r lite 1 my r j--y, 1972 •• in the schedule to the walth-tax act, with ej!'ect from the 181 day of april 1972 in part 1- (a) in paragraph a-5 (i) for items ( l) and (2), the following item lhall be substituted, namely:-| rile       | of           | leu      ||------------|--------------|----------|| "(1)       |              |          || in         |              |          || the        | case         | of       || individual | or           | hindu    || undivided  | farnily-     |          || 10         |              |          || (a)        |              |          || where      | the          | net      || per        |              |          || cent      | of           |          || wealth     | does         | not      || the        | net          | wealth;  || exceed     | rs          | 5,       || 15         |              |          || (b)        |              |          || where      | the          | net      || plus       |              |          || wealth     | exceeds      | 2        || rs        | 5,00,000     | but      || the        | amount       | by       || does       | not          | exceed   || which      |              |          || the        |              |          || net        |              |          || rs        | 10,00,000    |          || wealth     | exceeds      |          || rs        | 5,           | 00, 000; || 20         |              |          || (c)        |              |          || where      | the          | net      || ri15,ooo  |              |          || plus       |              |          || wealth     | exceeds      |          || 3          | per          | oent    || rslo,     | 00, 000      | but      || the        | amount       | by       || does       | not          | exceed   || which      | the          | net      || rs        | 15,00,000    |          || wealth     | exceeds      |          || rs        | 10,00,000;   |          || 25         |              |          || (d)        |              |          || where      | the          | net      || plus       |              |          || wealth     | exoeeds      |          || s          | per          | cent    || rs15,     | 00, 000      | the      || which      | the          |          || net        |              |          || wealth     |              |          || exceeds    |              |          || rs        | 15, 00, 000: |          || 30         |              |          |provided that for the purposes of this item,-(i) no wealth-tax shall be payable where the net wealth does not exceed the following limit, namely:-( a) rs 1,00, ooo,in the case of an indivtdual; 35 (b) rs2,oo,ooo,ln the case of a iuddu undlvided family (ii) the wealth-tax payable 8hall, in no cue, exceed 10 per cent of the amount by which the net wealth exceedb the limit specified in sub-clau8e (a) or, as the cue may be, sub-clause (b) of clause (i) of this proviso "; (ji) item (3) bball be re-numbered a8 item (2); (b) in paragraph b, for the word, brackets and ftpre "item (3)", wherever they occur, the word, brackets and figure ''item (2)" shall be subsututed  chapter v10  011111 di rix:t taxes17 in the gift-tax act, 1958-(a) in section 2, in clause (rii), for the words and fipre "include8 the transfer of any property deemed to be a gift under secuon 4" the words and figure ''includes the transfer or con-15 version of any property referred to in 8eouon ", deemed to be a gift under that 8ection" 8hall be bub8utilted with effect from the 1st day of april, 1972; (b) secuon bhall, with effect from the let day of april 1972, be re-numberec:lu sub-secuon (1) thereof and after sub-20 aeotton (1) a8 so re-numbered the followtag sub-section 8hall be werted with effect from that day, namely:-"(2) where, in the case of an individual being a member of a hindu undivided family, any property having been the separate property of the individual has been converted by the 25 individual into property belonging to the family through the act of impre8sing such separate property with the character of property belonging to the family or throwing it into the common stock of the family (such property being hereafter in thi8 sub-section referred to as the converted property), 30 then, notwithstanding anything contained in any other provision of this act or any other law for the ume being in force for the purpose of computation of the taxable gifts made by the individual, the individual shall be deemed to have made a gift of 80 much of the converted property as 35 the members of the hindu undivided family other than such individual would be enutled to, if a partiuon of the converted property had taken place immediately after 8uch conversiclll "i (c) in section 5, in sub-sectl_ (l~ -(i) in clause (v), for the word and figures "sect1an ii", the word, figures and letter "aectlon 8og" shall be subati-_ted, &del _11 be deemed to have been aubsututed with ilfect from the let day of april, 1968; 43 of 196l 10 (ii) in claue (va), in ub-elaue (0, for" worda brackets ud flpr  "m-aectica (6) of aecuoa ii of the jooolae-tax act, lh1", tjae won, bracjkms, ieuler &ad apr  "clause (") of rb-aecuoil (2) of aecuoil 100 01 uae ldooe-tax act" iha1l be iubsutumd,at aball be de_eel to •• e beeil s - ututecl with effect fro the lit day of april, 1188; (d) ita imictioa 33, i etpl_ •• " ii, fer llae w"" - tax recovery officer d the tax recovery cellillllieaer referred ie i the incolae-tax act or tlte rales __ daereu4er 15 all be deemed to be iii tax recovery officer d tlte tax recovery co •• issioner" 'ttie words - tax recovery co •• isaoaer  d the tax recovery officer referred to ia tjae laco_etax act shall be deemed ie ate die tax recevery ce_issieaer d die tax recovery officer- _all ate ltati  wi iii effect 20 r die 1st "ay f j--y, 1972; "erpluauon 1- i'or the removal of doabts it i hereby declared that the exemptioll admlible udder 25 clause (e) in re1auon to ,uta made by an inet1bluoil or fund referred to in that clause bail not be denied merely an either or both of the following ground •• namely:-(i) that subsequent to the gift any part of the income of the institution or fudd bu become ebarp-30 able to tax due to non-oompl1anoe with any of the provisions of seetlon 11 of the jnoome-tax act; (ii) that, udder clause (c) of aub-secttoll (1) of section 13 of the inoome-tax act, the exemption udder aeouon 11 of that act is denied to tile inltitutioll or 35 f1iilciin relauon to any inooe ari_, to it from  y lave_ant referred to in olaue (ii) of  ot& {2j of hcuon 13 of the mid act _here tile -repte ef the funcia mveated by it m - ooacem referred to m the alcl clause (it) doe not exceed five per cent of the cllp1tal of tlaat coileern " •• ia the companies (profita) rtax act, 1964, -amendment 6 of at't 7 of """ (a) id sectior 1& for tile f1 ~res d brackets - 7t 44)", tile fi,res, brackets, letter d word - 2( 438) d (44)" slaall ite l!iiiimtituted witll effect fro the 1st day of january, 1972; (b) for the tb1rd schedule, the followmg schedule shall be nblltituted with effect from tile 1st day of april, 1972, namely:- "me third schedule10  ra" f surtuaartaz shall be cbarpd on the amo1lllt (hereinafter referred to •• the cllargeable 1uil0wl~ by whiob the chargeable profits 1& exceed iile amount of the  tory deduction at the follor1nr rate, aamely:-(i) oil, lduc1l of tm ciaarpawe  t  emes ddt aoeed five pel' oeat of tm  t of capatal  aoaapitied 18 aecorda_ witll e &eool 8cmihile (ii)  the  oe if _y - ,&ie ailarpable ,  chaptd vi 26 i"dlikt tua__t of act '2 of 1934 •• tbe bjd1u tariff act 1934 (hereanafter referred to as tbe tariff act) iball be amended 10 the manner specified 10 the second scbedule  in the central excises  d salt act, 1944, in the first schedule,-(i) for item no ie, the following item _all be aabstituted, ii-ely:--ie glucose and dextrose and prep aha tions dlereof-(i) glucose in ~atever fonn including iitjlid glucose, dextrose ~ bydrate  d anbycbus dextrose expressed as  bydrous dextrose 8idoudt to more lb  eighty per cent by weight (ii) after item nole, the follo~ng item shall be inserted, nanely:-(iii) in item no6, for the entry in the third colwiii, the aatry -nine hundred  d twenty rupees per kilolitre at gheen degrees of centirf1lde thermometer" shall be substituted; (iv) for item nolla, the followillg item shall be substitutetl, n  ely:-ii lla all products derived from reflning uf crude petroleum or 31ale (,"etiier gaseous liquid, sdii-solid or soud in fl)rm) not ' o11jeriise speofled incluiing  beflnery gases lubrlcal1ng oil and greases 'axes and mkf-5 (1) mineral turpeatine oil tweaty per ceat ad va!oran pl  s oiie baadred rupees per metric iodne 10 (2) litje8 eel petrol eum gas two iumdred  d 8 fty rupees per metric toone (3) others twenty per cent ad ligior "; (v) after han no 1104 as so aaended, the following hans shall be inserted, n  ely:-15 'lib wmpounded lubmcal1ng twenty per cent oils and greases, 11iat is to say, ad velloran lubiicating (lls and greases obtained by oompoonding of mi-neral oils jlni any 011ler ingrements 20 expltlumon- the -expression "mineral oil" bas the meming assigned 10 it in expl4llation i to item no6 25 hc caloned petroleum twenty per cent coke ad valoran'; (vi) for item no 14m, the following item sball be iiiiibstilllted aaely:-- 14m oidt1cals, tile roll01£ ten per cent lng, nmtel y:-ad vgloran-; 30 (1) calch_ carbide (2) bleacjudg paste d hi euching powder (3) sodium hydrosulphite (4) diebonate of soda (5) didarcaates of potassium or sodium (6) liydrogeo peroxide (7) potusha permaagaaate (vii) for it  no 14f, the following item iball be substituted, namely:-10 '14f oo~ncs and wllet preparations not containing alcohol or opium, indi an hemp, or omer narconc drugs or n4rcotics, nmtl'ly:-15 20 (i) preparations for the care of dae sldll including beauty creams, vbili shing cre_s, ('old creams, makeup creams, cleansing cre_s, skin foods and todics, face powders, baby powders, toilet powders, talcum powders d lipsticks (ii) prep  atioas for the care of the hair-(a) halr lotions, creams  d pomades (b) perfumed halr oils (,) sliapoos ~ether or not contniningsoap (~r detergent 5 16 of 1955 ezpicllation-· alcohol", - opium", -iadi  hemp·, -aarcotic drugs"  d -narcolics" have the meunp, reapec- tively,88sif'led to them in sectioll 20f the medicinal  d toilet preparatiolls (excise baties) act, 1955 (viii) in h no 15 for the entry io ihelbird 001_ apialll !ub-i teal 1(2), die entry - twel ve  d a hal f per ceal ad lnilor •• " !hall be substituted; 10 (ix) for hem no 15a, , the foilo~ag item !hau be 8ilbalituted, n"""y:- '15a artiflual or synntetic resins and plastic mateiuals and arnaes niereof-15 'illbty , oeal tulwiorta (1) arti6cial or syadaetic resias d pi_tic materials ia  y ron ~elher eolid, utpid or pasty, or as powder, w-ales or oakes, or ia ihe form of mouidiag powders, the following aaaely:-20 (i) qmdensalioa, polyoqllldensatioll  d pol y-tdi lion products 25 ~ether or 001 modified or polymerised, includiag phenoplasts, aadn~ plbsts, alkyds polyades, polyu~ ih_e, polyallyl esters  d other un!l8lurated pol yesters; 30 (ii) polymerisation 11 copoiymerisatloo products iacludi, polyethylene d polytetl'8llf,~ loethylene, polyisolutyltlle, polyslynlle, polyviayl cbioride polyviayl acetble, polyviayl qdomace&llte"" other polyviayl derivatives, polyacrylic and polymethacrylic dert \'sliws and coumarone-indeae resins; and 5 (iii) cellulose acetate (including di- or lriacetale), cellulose acetate butyrate and cellulose propionate, cellulose acetate-propionate, ethyl cellulose and benzyl cellulose, \\bether plasticised or 10 no~ md plasucised cellulose nitrate thirty per cent ad valorem 15 (2) articles made of plastics, all sorts, including tubes, rods, sheets, foils, slicks, other rectan~ibl' or ~ file shes, \\bether laninated or nolo and \\bether rip,id or oexiwe, including layoal tubings and polyvinyl chloride sheets, not otherwise speci6ed (3) polyuredulle foan forty per cent ad valorem 20 (4) articles made of polyuredulle foillll forty per cent ad valorem '; expiliultion- for the purpose of sub-item (2), ·plastics" means the various artiociai or synthetic resins or plastic material included in sub-item 25 (i) (x) in hem no16t\ for the entries in the third columa brbin8t alb-items (1) and (2), the entries - forty per cent ad valorem· and -twenty-five per cent ad valor" _all, reapectiwlly, be substituted; 30 (ii) after item no 228, the following items shall be inserted, namely:-- 22c unoleum mat is to twenty per ceat say, covemng material prepared ad valorem  m a base of paper or paper board (inq,udlng felt paper or fel t paper ooard) or textile fabrics, by impregnation or 5 ooating \\1m a unoleum cement| 22d           | artilles    | of         | ready-to-   | tea    ||---------------|-------------|------------|-------------|--------|| per           |             |            |             |        || ceot         |             |            |             |        || wear          | apparel     | (known     | oommer-     |        || ad            | valor      |            |             |        || cally         | as          | ready-made | garments),  |        || including     | under       | garments   | and         |        || 10            |             |            |             |        || oody-~ppornng |             |            |             |        || garments      | lilt        |            |             |        || excluiing     | articles    | of         | hosiery,    |        || in            | or          | in         | relation    |        || to            |             |            |             |        || me            | manu-       |            |             |        || fac1ure       | of          |            |             |        || \uoi          |             |            |             |        || any           | process     | is         |             |        || oriinarily    | carried     | on         | 11m         | me     || 15            |             |            |             |        || aid           | of          | power     |             |        || 22e           |             |            |             |        || 1ypewriter    | and         | smilar     | ten         |        || per           |             |            |             |        || cent         |             |            |             |        || ribbons,      | werner      | or         | not         | on     || ad            |             |            |             |        || valorem      | ";          |            |             |        || spools       |             |            |             |        |(xii) in item no 23a, (or the eatries in the third colum 20 apnst sumtems (1) iiiid (4), the eatries "fifteen per cent ad valorem" iiiid "twenty per cent ad valorem" shall, respectively, be substituted; (xiii) io item no 238, for the entry io the third coludii brbinst each of the su~items (1) iiiid (4), the mtry "twenty 25 per cent ad valorem" shall be substituted: (nv) after hem no23c, the following item shall be inserted nanely:-|            |              |    |            | -    | 23d    ||------------|--------------|----|------------|------|--------|| mosaic     | tiles       | in | or         | in   | ten    || per        |              |    |            |      |        || ceot      |              |    |            |      |        || relation   |              |    |            |      |        || to         |              |    |            |      |        || me         | manufactijre | of |            |      |        || ad         |              |    |            |      |        || valorem'; |              |    |            |      |        || 30         |              |    |            |      |        || \\tuai     |              |    |            |      |        || any        | process      | is | ordinarily |      |        || carried    |              |    |            |      |        || on         | 11m          | me | aid        | of   | power |explcl'lotioll - for the purposes of this item,  mosaic tiles" means tiles known collluerciaily as mosaic tiles (xv) in item no 27, after sub-item (e), the following 8iibitem shall be inserted, nlldely:-, (f) containers made of aluminium twenty-bve per ceot ad valorem '; 5 explanation-" cootai ners· means containers ordinaily intended for packaging of goods for sale, including casks, dnans, ems, boxes, gas cylinders iild pressure containers, ~ether in 10 assembled or unassembled condition, and containers known commercially as obltened or folded containers (xvi) after item no 3oa, the following item shall be inserted, namely:-15 ii 308 motor 8t ahters ten per cent ad valorem "; (xvii) in hem no3', for the entries in the third collum against su~items (1), (2), (3) and (4), the entrieslctwenty per cent ad valorem ", "thirty per cent ad valorem" , ten per cent ad valorem-20 and "twenty-live per cent ad valorem" shall respectively, be substi luted; (xviii) for hem no33, die following item shall be substituted, namely:-| -             | 33                  | electric       | fans,        | all    | sorts-    ||---------------|---------------------|----------------|--------------|--------|-----------|| 25            |                     |                |              |        |           || sx            |                     |                |              |        |           || per           |                     |                |              |        |           || cent         |                     |                |              |        |           || ad            | valor               |                |              |        |           || an           |                     |                |              |        |           || (i)           |                     |                |              |        |           || table, cabin, |                     |                |              |        |           || carriage,     |                     |                |              |        |           || pedestal      | iild                | air circulator | fans,        | of a   |           || diameter      |                     |                |              |        |           || not           | exceeding           | 406           | centimetres |        |           || 30            |                     |                |              |        |           || (2)           |                     |                |              |        |           || those         | desirded            | for            | use in       |        |           || iii           |                     |                |              |        |           || ten           |                     |                |              |        |           || per           |                     |                |              |        |           || cent         |                     |                |              |        |           || industrial    |                     |                |              |        |           || system        |                     |                |              |        |           || as            | parts indispensable |                |              |        |           || ad            |                     |                |              |        |           || valorem      |                     |                |              |        |           || for           | its                 | operation      | and          | have   | been      || that          |                     |                |              |        |           || jmlrpose      | some                |                |              |        |           || apecial       |                     |                |              |        |           || shape         | or                  |                |              |        |           || quality       |                     |                |              |        |           || which         |                     |                |              |        |           || would         | not                 |                |              |        |           || be            |                     |                |              |        |           || essential     |                     |                |              |        |           || for           | iheir use           | for            | any          | oeber  | jmlrpose || (3)        ||------------|| t         || per cent  || ad         || valorem·; |(iii) after item no33d the following item all be inserted namely:-5 ten per cent ad valorem'; '33e elecmon supply meters-"electricity supply meters" __ s meters for measuring aod reo 8istering the amount of electricity 10 consumed in iiiipere hours or multiples thereo~ or the iwount of electric ergy consumed inwau hours or multiples ihereof (a) after item no 34, die following items shall be inserted, 15 naaejy:-'34a parts and accessories ten per cent of mornr veld cles, not orner-ad valorem jlse spec fled 20 eipicllation-the expression -motor vehicl etl' bas the meaoing assi-ed 10 it in item no3-1 348 works trucks, me(]iani-ten per cent cally propelled, used fur 5ii08t ad valorem • ; (jist anee transport or handling of oooos tile fullomng, namely:-25 (1) forklift tnicks (2) platform tnacks (xii) after item no37a the following items shall be inserted, aaaely:-30 "378 cnemaidgraph projecid8s twentyp« cent ad vmorem 37c photograpldc cameras twenty per cent ad valorem if; (xdi) ia each of the items nos 41  d 4~ for abe &ltry fa abe third colwiiii, the eatry - two paise each· shall be subsli tuted; (liiii) hem no 44 shall be omitted; (xxiv) for item no 46, ,the following hem shall be 5 substituted, aamely:-| -              | 46        ||----------------|-----------|| tea            |           || per            |           || coot          |           || elsewhere      | speofled || ad             |           || valorem       | ';        || explcllation- | the       || expressioa     |           || n              |           || coataiaers·    |           || has            |           || the meania,;   |           || assil'led      |           || 10             |           || to             |           || it             |           || fa the         |           || explcllation   |           || to             |           || hem            | no       || 27            |           |(xxv) after hem no 48 abe following items shall be inserted, nluely:-ten per cent ad valorem 15 - 49 rolling bealungs, mat is to say, ball or roller bear-ings all slrts ten per cent ad valorem so welding electrodes, all slrts 51 ooated abrasves and ten per cent grlndng iheels in or in relation ad valorem 20 to tile manufacnjre of mol any process is ordinarily carried on mm 1lie aid of power, me fulwmng, namel y:-25 (1) natural or artificial abrasive powder or grain on a base of woven fabri c, of paper, of paper board or of other materials, whether or not cut to shape or sewn or otherwise made up 30 (2) grinding wheels  d the like (includiag griading, sharpening, polishiag, trueing bod cutting wheels, beads, discs bod points), of natural stone |                                          | (anloaaeratecior            | iiot),        | of",omerated     ||------------------------------------------|-----------------------------|---------------|------------------|| alllw'ai                                 | or                          | ubciai      | abrasives, or of || pottery,                                 |                             |               |                  || with                                     | or without cores, abdks   |               |                  || sockets, axles                           |                             |               |                  || d                                       |                             |               |                  || ibe like                                 | of                          | olber         |                  || 5                                        |                             |               |                  || blaterials                              | lut                         | iiot          |                  || idoiiiite                                |                             |               |                  || d                                        |                             |               |                  || on                                       |                             |               |                  || rre                                  |                             |               |                  || works;                                   | segpm!llts                  |               |                  || d                                       |                             |               |                  || olber finished                           |                             |               |                  || parts                                    |                             |               |                  || of                                       |                             |               |                  || fiuch                                    |                             |               |                  || wheels                                  | of                          | aatural stone |                  || (agglomerated or aot) of aglomerated    |                             |               |                  || aatural or                               |                             |               |                  || uficial                                |                             |               |                  || abrasi                                   |                             |               |                  || ves, or of                               |                             |               |                  || 10                                       |                             |               |                  || pouery                                  |                             |               |                  || eiplcllation-the expression             |                             |               |                  || ·rdadiagwheels                           |                          |               |                  || d                                        |                             |               |                  || ibe like"                                |                             |               |                  || d                                       |                             |               |                  ||                                          | eats                        |             |                  || d                                        |                             |               |                  || olber 6nished parts of                   |                             |               |                  || such wheels" shall                       |                             |               |                  || me811                                    |                             |               |                  || 1b088                                    |                             |               |                  || used                                     |                             |               |                  || on                                       |                             |               |                  || 15                                       |                             |               |                  || muiae                                    | tools, electro-mecbucal or |               |                  ||                                       | eumblic                     | b             |                || d                                        |                             |               |                  || tools,                                   |                             |               |                  || for                                      |                             |               |                  || the trillllling                         |                             |               |                  || polishidg                               |                             |               |                  || sharpeaiag, trueing or cutting           |                             |               |                  || of                                       |                             |               |                  || etsls,                                  | slooe,                      | stass,        | plastics,        || cera-                                    |                             |               |                  || mics,                                    |                             |               |                  || mbber,                                   |                             |               |                  || leather, mother of pearl,                |                             |               |                  || 20                                       |                             |               |                  || ivory                                    |                             |               |                  || d                                       |                             |               |                  || ibe like                                |                             |               |                  || 52                                       | dolts                       | and           | nuts,            || ten                                      |                             |               |                  || per                                      |                             |               |                  || ceo t                                   |                             |               |                  || or                                       | tapped                     | and           | screws          || ad                                       |                             |               |                  || valor                                    |                           |               |                  || metal                                    | or                          | alloys        | mereof          || relation                                 | to                          | tile          | manufacture      || 25                                       |                             |               |                  || \\hiqi                                   |                             |               |                  || any                                      | process                     | is            | oriinarily       || carried                                  | on                          | 11111         | me               || expi4llalion-                           |                             |               |                  || the expression -                         | bol                         | ts            |                  ||                                        | d                           |               |                  || auts, threaded or                        |                             |               |                  || tapped                                  |                             |               |                  || ajd screws·                              |                             |               |                  || used in this                             |                             |               |                  || item                                     |                             |               |                  || shall include bolt-ends,                 |                             |               |                  || 30                                       |                             |               |                  || screw studs, screw studding, self-tapped |                             |               |                  || screws, screw books and screw rings     |                             |               |                  | 53 7jp or ~de fasteners and parts tilereof-| (1)              ||------------------|| slide fasteners || twenty           || per              || ceot            || 35               || ad               || valortjii       |(2) parts of 14p or slide twenty-ow f  per cent ad "alorern 54 pres'ijre oookers-twenty per ceut ad v~orern 5 "p~ cookers"meaas enclosed cooidlll vesmls fer use mth  extental beal source capable of maintaining woiidag  pressure, lmom co_eralally _ premlre cookers 10  5$ vaajum fla'i\s and 011ler vaal1m vessels and parts 1hereof-| (1)        | vtuuuil    | dasks      |        | d       | other    ||------------|------------|------------|----------|---------|----------|| flfteea    |            |            |          |         |          || v8cuuiii   |            |            |          |         |          || vessel     |            |            |          |         |          || s         |            |            |          |         |          || per        |            |            |          |         |          || ceot      |            |            |          |         |          || 15         |            |            |          |         |          || ad         |            |            |          |         |          || valorem   |            |            |          |         |          || (2)        |            |            |          |         |          || parts      | of         | vacuum     | dasks    |  d   | twenty   || other      |            |            |          |         |          || viqiwd     |            |            |          |         |          || vessel     |            |            |          |         |          || s         |            |            |          |         |          || per        |            |            |          |         |          || cent      |            |            |          |         |          || ad         |            |            |          |         |          || valorem   |            |            |          |         |          || 56         | playing    | cards      |          |         |          || twenty     |            |            |          |         |          || 20         |            |            |          |         |          || per        | cent      |            |          |         |          || ad         |            |            |          |         |          || valorem   |            |            |          |         |          || 57         | campfi)r   |            |          |         |          || ten        |            |            |          |         |          || per        |            |            |          |         |          || ceo        |            |            |          |         |          || l         |            |            |          |         |          || ad         |            |            |          |         |          || vcdorem   |            |            |          |         |          || 58menntol  |            |            |          |         |          || ten        |            |            |          |         |          || per        |            |            |          |         |          || cent      |            |            |          |         |          || 25         |            |            |          |         |          || ad         |            |            |          |         |          || valoran   |            |            |          |         |          || 59         | electric   | insilating | tapes,   |         |          || ten        | per        | cent      |          |         |          || in         | or         | in         | relation |         |          || 11)        |            |            |          |         |          || me         |            |            |          |         |          || manu-      |            |            |          |         |          || m          |            |            |          |         |          || palorern  |            |            |          |         |          || facrjre    | of         | mlloi      | any      | process | is       || orilnarily | cariied    | on         |          |         |          || 11m        |            |            |          |         |          || me         |            |            |          |         |          || 30         |            |            |          |         |          || aid        | of         | power     |          |         |          |5 60 aiiiesve tapes all slrts tea, cal not elseihere spec fled, inclljd ad valorelll' ing cellulose aiiiesve tapes and p aperbacked a11iesve tapes, in or in relation to nie manuf ac1tjre of raj any process is oriinarily carlued on 11m 1he aid of poi'er tl in the first schedule to the additional duties of exelae (goods of special importanoe) act, 1957-ala ch au of act, of j957 10 (i) in item no4, under -fl m  "f",w,ed tdbacco--,for the entry in the third column against lub-item (2) the entry "seventy-flve per cent g,(valorem " sball be substituted; (ii) in item no 19, for sub-item 1(2), the following aubitem shall be substituted, namely:-"(2) others-15 (a) cotton fabrics superfine 25 paise per square metre (b) cotton fabri cs, fine 15 paise per square metre 20 (c) cotton fabrios medium-a 8 paise per square metre (a) cotton fabrios medium-b 8 paise per square metre (t) cotton fabrics coarse  paise per squre metre 25 m cotton fabrics not otherwise specified 25 paj  per llquare metre " amendmeat of act '17 of 1958 u in section 3 of the mineral products (additional dutie of excise and customs) act, 1958 in iub-section (1), in the table for 30 the entry in the second column againat item 3 the entry "five hundred rupees per kuolitre at fifteen degrees of centigrade thermometer " hall be subetituteci  chapter vii foileign travel taxextent and u (1) the provisions of this chapter extedd to the whole of c:ommeacement iddia except the state of jammu add kashmir (2) they shall come into force on such date as the central 5 government may, by notification in the official gazette, appoint n in this chapter, unless the context otherwise requires,-i>efidi tiadi 22 of 1934 (q) "aircraft" means any aircraft as defined in section 2 of the aircraft act, 1934, which is used (whether exclusively or not) for the carriage of passengers; 10 (b) "carrier" means the person or authority undertaking the carriage of a passenger on an international journey and includes any agent, representative or other person acting on behalf of such person or authority; (c) "customs port" and "customs airport" mean, res-15 pectively, a port or airport appointed as such under clause (a) of section 7 of the customs act, 1962;  52 of 1962 (d) ''fare'' means the total amount of all charges of whatever nature (including charges, if any, for provision of food or accommodation) payable to the carrier by or on behalf of a 20 passenger in respect of his international journey; (t) "international journey", in relation to a passenger, means-(i) his journey from the last customs port or customs airport of departure ex the ship or aircraft in the terri-25 tortes to which this chapter extends to a place outside india, and includes further journeys by such passedger outside idd1a by the same or different carriers; (ii) his journey from a place outside india to the first customs port or customs airport of arrival of the ship or 30 aircraft in the said territories, irrespective of whether the journey commences or terminates at such customs port or customs airport; (f) ''passenger'' means any person travelling on board a ship or an aircraft 011 aa international journey except-35 (i) a personemploytsdor engaged in any capacity on board the ship or aircraft on the business thereof; 5 (it) a person on board the ship or aircraft 'either in pursuance of obligations laid upon the master, captain or other person in charge of the ship or aircraft to carry shipwrecked or distressed or other persons or by reason of any circumstances which neither the master or captain or other person in charge of the ship or aircraft nor the charterer, if any, could have prevented or forestalled; (b) "ship" means a ship used (whether exclusively or not) for the carriage of passengers 10  (1) with effect from the date of commencement of this chapter, there shall be levied and paid to the central government in respect of every international joumey by a passenger, where the fare for such journey is paid or is payable in indian currency, a tax (hereafter in this chapter referred to as the foreign travel tax) at 15 the rate of twenty per cent of the fare paid or payable by such passenger for such journey ejplanation -when a passenger performs an international journey at a conoessional rate or without being charged any fare, the fare ordinarily payable for the journey shall, for the purpobtts 20 c:i this section, be deemed to be the fare payable by such passenger (2) in accordance with rules made under this chapter, the foreign travel tax shall be collected by the carriers undertak1dg the carriage of the passe diers as an addition to the fares payable by such passengers and shall be paid to the central government 25 •• notwlthstandidl anything contained in this chapter the central government may,-(a) by notification in the official gazette, and subject to such conditions and limitations as may be specified therein, exempt, wholly or to such extent as may be specified in the 30 notiflcation, any class or classes of pa8sengers or any category or categories of passeugers udder any such class from the payment of foreign travel tax if that government i8 satisfied that it is necessary so to do in the pubuc interest; peaaby (b) by order in writliw, and subject to such conditions and 35 umltations as may be specified therein, exempt, wholly or to such extent a8 may be specified in the order, any passe iller from the payment of the said tax if that government 18 satisfied, for reasons to be recorded in the order, that it is necessary or expedient so to do, having regard to the special circwdstajloes 40 of his case and the purpose ()f his journey '1 any carriei' contravening the provisions of sub-section (2) of section 45 and any person committing a breach of any rule or regulation made under this chapter shall be liable to a penalty not exceeding five thousand rupees and such penalty may be adjudjed by such authority am in noh manner as may be specified in the 1'\lles made under this chapter | plotecuod                                   | of                                      ||---------------------------------------------|-----------------------------------------|| action                                      | rllk_                                   || in                                          | fod                                     || faith                                      |                                         || ••                                          | no                                      || suit                                        | or                                      || aldst                                       |                                         || the                                         | 6                                       || central government                          |                                         || and                                         |                                         || no                                          | suit, prosecution                       || ing                                         |                                         || shall lie                                   |                                       || of                                          |                                         || that government                             | for                                     || anything                                    |                                         || in                                          |                                         || good faith done                             | or                                      || to                                          |                                         || be done in                                  | purlu&doe                               || this chapter                                |                                         || or                                          | the                                     || power                                       |                                         || to                                          |                                         || mllke                                       | des                                    || •••                                         | (1)                                     || the central government may, by notification | in                                      || 10                                          |                                         || official gazette, make                      | rules                                   || chapter                                    |                                         || (2)                                         |                                         || in                                          |                                         || particular,                                 | and without prejudice to the generality || of the foregoing power, such                |                                         || rules                                       | may provide                             || (a)                                         |                                         || tbe                                         | assessment                              || 15                                          |                                         || tax                                         | including                               || the                                         | autborities                             || by                                          |                                         || whom                                        | adjudication                            || functions                                   | under                                   || of                                          | notices                                 || which                                       |                                         || such                                        |                                         || tax                                         | shall                                   || 20                                          |                                         || tax                                         | due                                     || to                                          |                                         || the central gove mmeat in                   | tbe                                     || an                                          | arrear                                  || procedure for claiming refund               |                                         || of                                          | any amount                              || chapter;                                    |                                         || (b)                                         |                                         || the                                         | powers                                  || of                                          |                                         || authorities                                 | referred                                || in                                          |                                         || clause                                      |                                         || (a)                                         |                                         || 35                                          |                                         || to                                          | enter,                                  || any                                         |                                         || premiaes                                    |                                         || of a                                        | oarrier                                 || and                                         |                                         || to                                          |                                         || examine any ticketb, books of account,      | re-                                     || turns                                       | or                                      || any                                         |                                         || duty imposed on any suoh authority by       | or                                      || provided that the                           |                                         || provillod8                                  | of the code of criminal                 || cedure,                                     |                                         || 1898                                       |                                         || relati                                     |                                         || to                                          |                                         || searches                                    |                                         || shall                                      |                                         || so                                          | far                                     || they                                        |                                         || are                                         | appll-                                  || 5                                           |                                         || of                                          |                                         || 1898                                       |                                         || cable, apply                                | in                                      || clause;                                     |                                         || (c)                                         |                                         || the procedure for adjudication of penalty;  |                                         |(d) appeal and revision in the case of any order made under 35 this chapter, the madder in which and the time within which appeal may be preferred or application for revision may be made and the fees payable therefor; (e) any other maiter which 1s to be or may be, provided for by rules umer this chapter •• (1) the central board of exciae add custom constituted 54 of 1963 wider eotlon 3 of the cedtral boards of a_e act, 1183, may, by dotuicatloa in the ooloial gazette, make rep1auodii consistent with tills chapter and the rule made thereudder, lederally to carry 5 out the purpoae of thla chapter (2) iii partloular, add wubout prejudice to the paerauty of the for8loidi power 811gb reaulauons may provide for-(ii) the returns add other partioulars add idformation wblab oarriers shall furnish, the authorities to whom, add the in-10 tervals at whioh, such returdl, particulars add information  shall be furnished; (6) supplemental matter ariside out of any rule mlde by the cedtral government udder this chapter 15 | rule          ||---------------|| notificatiod8 || co            || be            || laid          || before        || pdieenc     |20 ii every rule made udder this chapter add every notlfioau ld issued udder sectiod 48 &hall be la1d as bood as may be after it ia made or i88ued before each house of parliamedt while it ia in  aalod for a total period of thirty daya wbloh may be oomprised in ode i8ssiod or in two iucce8sive sesslom, and if, before the expiry of the se811ion in whioh it il 80 laid or the sellion immediately followldg, both houses qree in makidi any modifloation in the rule or notification or both housel acrae that the rule ihould dot be mllde or the notification should not be issued, the rule or notification llhall thereafter have effect only ill luch modified form or be of do effect, as the cas may be; so, however, that any uoh moduloation or annulld8llt lha1l be wullom prejudice to the validity of anythlnl previoully done udder that rule or notification  cbaftd vmameaeot 01 act 6 of 1898 51 iii the first sohedule to the indian post 0ff10e aot, 1898, 30 for the sub-headl  pgluls" add the entries thereudder, th8 followidi shall be eubsututed, namely:-upreels ode rupee for a weilbt not exceedidc four hundred li'aml ode njp8e" for wery four huadred li'aml, or fraction thereof, exceedl four hwldred &rams am eo en , of act 47 of 1961 53, id the deposit idburance corporation aot, 1981, in lectiod 30, for the words "nine llccoudtidg years", the words ''fourteen accountldc years" shall be substituted houbin, and urban development finance cdrporation private ltd to be exempt for a cereain period from ii abili ty to pay incom~tax and aunax 14 notwithstanding anything contained in the income-tax act or the companies (profits) surtax act, 1964, the housing am urban 7 of 1964-development finance corporation private ltd (a government company as defined in section 617 of the companies act, 1956) 1 of 19~ shall not be liable to pay any tax under either of the two acts first 5 mentioned, on its income, profits or gains for the previbus year relevant to the assessment year commencing on the 1st day of april 1971 and for the nine previous years next following that previous year repeal ii section 2 of the finance act 1971i8 herehy repealed and 10 shall be deemed never to have been enacted 14 of 1971  declaration wader the provisional collection of taxts act,1931it is hereby declared that it is expedient in the public interest that the provisions of clauses 39,40,41 and 42 of this bill shall have immediate effect umer the provisional collection of taxes act, 1931 15 16 of 1931  part i income-tall alfd suiciiaiczs on ncome-tax 5 parqraph ain the case of every lddlvldual or b1adu uddlvlded family or ud-registered firm or other soclatlcll of pel'8oll8 or ~ of bubvidi1als whe1ber 1dcorporated or not or every artificial juridical perscll referred to in aub-olauae (ljii) of c18118e (31) of seotiod2 of 10 the ldcome-tax act dot beldg a cue to which 81q oller pancrllllh of this part applies -rates 0 f incolii e' tell' (1) where the 1lotal1ncome does dot exoeed rb 6, 000 nil; 15 (2) where the total idcome exceeds re 6 000 but doea dot exceed rbi0 000 10 per oct of the amcuat by which the total idacime exceeds ra5, 000; (3) where the total idcome exceeds ral0 000 but does not exceed &15000 20 be500 pills 17 per ceut of the amoudt by wh1ch the total1dcome exceeds &10,000; (4) where the tidtal1ncome exceeds rels, ,000 but does dot exoeed &20000 &1,360 plus 23 per o8ilt of the amount by which tbe tota11ncome exceeds rs16,ooo; 26 (6) where the totalldcome exceeds ra20, 000 but does dot exceed ra 25 000 &2600 plus 30 per cent 01 the amoudt by which the total fdcome exceeds rs20000; 30 (8) where the total1ncome exceeds ra25, 000 but does dot exceed ra 30 000 ra 4000 plus 40 per calt of the amount by which the total income exceeds rs26000; 35 ft) where the total1ncome exoeods ra30 000 but does not exceed ra4o 000 ra8,ooo pills 60 per caat of the amount by which iae tota11ncame exceeds &30000; (8) where the fotaltncome exceeds rs40 000 but does not exoeed ra 60,000 rs1l000 plus 80 per cent of the amount by which the total income exceeds rs40, 000; 5 (9) where the total inc:-ome exceeds rs80 000 but does not exceed ra 80, 000 re 23 000 plus 70 per cent 0{ the amount by wblch the total income exceeds rs60,oooi 10 (10) where the total idcome ex0eed8 rs 80 000 but does not exceed ra 1 00 000 re 37,000 plus 75 per cent of the amount by which the total income exceeds rsso,oooi (11) where the total idcome re 52, 000 plus 80 per cent exceeds ra 1 00, 000 but does not of the amount by which the exceed re2 00000 total income exceeds 15 re1 00 000; (12) where the total income exceeds rs2,oo,ooo ra i, 32, 000 plus 85 per cent of the amount by which the total income exceeds ra2,oo,ooo: 20 provided that for the purpoeee of this paragraph, in the case of a hindu undivided famdy which at any ume during the previous year aat1afles either of the followidg two codditions, name1y:-(ii) that it has at least two members entitled to claim partitioll who are not less thiiil eighteen years of age, or 25 (b) that it has at least two members entitled to claim partltioll who are not lineally descended qq8 from the other add who are not lineally descended from ad,y other itvldg member of the famdy,-(i) do inoome-tax shall be payable oil a total income not 30 exceed1dg be 7, oooi (ii) where the total income exceeds ra 7, 000 but does not exceed re 7,810, the idcome-tax paphle thereon shall not exceed forty per cent of the amount by which the total income uoeed8 ra 7, 000 35  sia,chgtae on incollle-lalthe amoudt of1dcome-tu computed in accordance with the preceding provisions of thta paragraph shall be 1dcreased by a surcharge for purposes of the union calculatled at the rate of teo per ~of~~~~ ~  prqr"h bin the cue of every co-operative society-rales of irkoiii~tcii 5 (1) where the total income does not exceed ral0 000 15 per cent of the total income; (2) where the total income exceeds ra10 000 but does not exceed re20000 re 1 500 plus 25 per cent of tile amount by which the totalldcome exceeds re10, 000: 10 (3) where the total income exceeds ra20, 000 re 4000 plus 40 per cent of the amount by which the total income exceeds rejo,ooo  surchar"e "" itlcfllle-lax15 the amount of idcome-tax computed at the rate hereinbefore specified shall be increased by a 8urcbal'l(e for purposes of the union calculated at the rate of ted per cent of iiuch idcome-tax  paragraph cin the cue of every registered firm, -rates of incollle-leu 20 nil; (1) where the totalinoome doe8 not aceed re10, 000 4 per oea& of the amount by whjch the toul1ncome ex-  ceeds rs 10,000: 25 (2) _ere the total income exceeds a 10 000 but does not exceed re25 000 (3) where the total income exceeds ra25, 000 but does not besoo plus s per cent of the amount by which the total income exceeds be 26,000; ~xceed ra 50000 (4) where the total income 30 be2 100 plus 12 per cent of the amount by which the total income exceeds re50000; excee~8 re50, 000 but does not exceed "u 1 00 000 (5) where the total income exceeds rei,do,ooo re 8 100 plus 20 per cent 0( the amoudt by whicja abe tdtal _ome exceeda ral,oo,ooo  ~,chtqes on incolllt-taltbe amoudt of income-tax computed at the rate hereinbefore apectfied llball be idcreased by the aggregate of surcharges for purpoeea of the union calculated as specifted hereunder:--(a) in the case of a registered firm whose total income in-5 eludes ldcome derived from a profession carried oil by it and the income 80 included is dot less than flfty-oae per cent of such total ldcome, a surcharge calculated at the rrdle of ten per cent of the amount of lncome-tax computed at the rrdle hereinbefore spectfted; 10 (b) in 1be cue of lilly other 1'8i1stlered firm, a surcharge calculated at tbe rue of twenty per cent of the amount of income-tim compatbd at the rate hereinbefore spectf:led; and (c) a special surcluup calculaied at the rate of ten per oeat oil tile lllreg- of the fouowldb amoudts, namely:-15 (0 the amoudt of income-tax computed at the rate bere1dbefol'8 specified; add (u) tbe udoudt of the 8urcharp oalculrdled ill accordance with cl_e (ii), or, as ile case mar be, cl81l8e (b) of til a\lb-pal'lwraph 20 explacioll-por the puopo" of this paragraph, "reptered firm" ldaludee iii unrectsterec1 firm asses8eel as a rectaterecl firm udder clause (b) of secuoill83 of the inoome-tu aat p g,,h d 26 iii the eme of ,ry local authorlty,-rate of incollt-llll ql the wbo1e of the total income 50 per cat sii,cha'ae on income-lgi 1be amoudt of idcome-tax computed at the rate bere1nbefore 30  1fied iiiwl be 1dcreased by a 8urcharp for purpoees of the uidoa calculued at the rate of ten per cent of such income-tax  p arasraplt e31 df 1956 in the case of the life insurance corporation of india estab-ubhed under the life insurance corporation act 1956-rates of income-tar 525 per oent; 5 (i) od that part of its total income which consists of profits add galna from life insurance business (ii) od the balance u any, of the total income 10 15 the rate of income-tax applioable in accordanoe with paragraph f of this part to the total income of a domestic company which is a oompany in whioh the public are substantially interested  p arasraplt fin the case of a company, other than the life insurance corporation of lddfa estabushed under the ufe insurance corporation act, 31 of 1956 20 1956,-rates of income-tar 1 in the case of a domestic compuy-(1) where the company is a company in which the pub11c are 25 substantially interested, -(i) in a case where 45 per oent of the total the total1dcome does dot income; exceed &50,000 (ii) in a case where 66 per cent of the total 30 the total income exceeds income; ra50,000 01> wbe~ the company is dot a company in which the puhlic are substantially inte rested, -|            |          |     | (i)    ||------------|----------|------|--------|| in         | the      | case | of     || an         |          |      |        || industrial | company- |      |        || 5          |          |      |        || (a)        |          |      |        || on         |          |      |        || so         |          |      |        || much       | 55       |      |        || per        | cent;   |      |        || of         |          |      |        || the        |          |      |        || total      |          |      |        || income     |          |      |        || as         | does     | not  | exceed || re10,     | 00, 000  |      |        || (b)        |          |      |        || on the     | ba-      |      |        || lanoe,     | if       | any, | of     || 60         |          |      |        || per        | cent    | ;    |        || total      |          |      |        || income     |          |      |        || 10         |          |      |        || (ii)       |          |      |        || in any     | other    | case |        || 65         |          |      |        || per        | oent    | of   | the    || total      | income:  |      |        |provided that the income-tax payable by a domestic company, being a company in which the public are substantially intelwlted, the total income of which exceeds re 50, 000, shall not exceed the 15 aggregate of-(a) the income-tax which would have been payable by the company if its total income had been rs 50, 000 (the income of rs 50, 000 for this purpose being computed as if such income included income from various sources in the same pro-20 portion as the total income of the company); and (b) eighty per cent of the amount by which its total income exceeds rs 50, 000 if in the case of a company other than a domestic company-25 (0 on 80 mucb of the total inoome as collsists of-30 (11) royalties received from an indian concern in pursuance of an agreement made by it with the indian concern after the 31st day of march, 1961 or 35 (b) fees {or rendering technical services received {rom an indian concern in pursuance of an agreement made by it with the jndian concern after the 29th day af february )864, 50 per oent ; and where such agreement has in either case been approved by the central government 70 per cent (ii) on the balancei! ~ of the total income 5  part ii rates for deduction >f tcl1' at source in certain casesin every case in which under the provisions of sections 193, 194 194a and 195 of the lacome-tax act, tax is to be deducted at the rates 10 in force deduction shall be made from the income subject to deduction at the following r  s:-ldcome-tax rate of rate of income-tax surchluj'8 15 1 in the case of a person other than acompaay-(a) where the person is 1"8s1dent-20 10 per cent nil (i) 011 1dcome by way of interest other than ''interest on securities" 20 per cent 3 per cent (ii) on any other income (excjudidg interest payable on a tax free securi~) 25 (b) where the penon is not resident in india-(i) on the whole income (excludidg interest payable on a tax free secur1~) 30 36 income-tax at 30 per cent and surcharge at 45 per cent of the amount of the income or income-tax and surcharge on income-tax in respect of the tncome at the rates prescribed in paragraph a of part m | of                   | this     | schedule,    ||----------------------|----------|--------------|| such                 | income   |              || had                  |          |              || been                 |          |              || the                  |          |              || total income,        |          |              || whichever is higher; |          |              || 5                    |          |              || (u)                  |          |              || on                   |          |              || the income           |          |              || by                   |          |              || way                  |          |              || of                   | interest | payable      || on                   |          |              || a tax                |          |              || free                 | security |              || 15                   | per      | cent        || 225                 |          |              || per                  | cent    |              | 2 in 1he case of a company-(a) where the company is a domestic company-10 20 per cent nil (i) on income by way of interest other than "interest on securities" (ii) on any other income (excluding interest payable on a tax 15 free security) 22 per cent nil (b) where the company is not a domestic company-20 245 per cent nil (0 on 1he income by way of dividends payable by any domestic company 25 (ii) on the income by way of royalties payable by an indian concern in pursuance of an agreement made by it with the jndian concern after the 31st day of march,1961, 1li'd which has been approved by the central government 50 per cent nil (iii) on the income by way of 30 fees payable by an indian codcern for redderidg technical services in pursuance of an agreement mad6 by it wi1h the iddian conc8n after the 29th day of february, 1964, 35 and which has been approved by the central government 50 per cent nil  (iv) oil tile 1dcome bj w, 01 idtereat p,able on a tax free security44 per c8ll~ nil '10 per c_to nil (ii) oil adj oller idcmne 5  part iiiraces for ,alaalii  or ,laar,pka illcqle-tft ill ,ertia ca" liect'kr i",  ,ta " ""ot chllf'fltole  ,, die h  - sejlwies" ir , pytnt rtf""~ to ill sub-section (9) of section so£ au' c"puuiii - uvciiiu tax- 10 in cases ill which ldoome-tax haa to be calculllted udder the ftl'llt proviso to sub-secticlll (5) of  ection 132 of the mcome-tax act or charged under sub-eection (4) of s8otiol1 1'12 or sub-section r 2) of sectioo 1'14 or eectioo 176 or sub-section (2) of sectlclll 176 of the said act or dedilcted udder section 182 of the said act from income 15 chargeable under the head ''salaries'' or deducted under sub-section (9) of secticll 80e of the sajd act from any payment refured to in the sald sub-secticlll (9) or in which the "advance tax1rable under chapter xvu-c of the said act has to be computed at the rate or rates in foree, such income-tax or, as the case may be, "advadce 20 tax"(not being "advance tax" in respect of any 1dcome chargeable to tax under section 164 of the income-tax act at the rate of slxty-flve per cent) shall be so calculated, charged, deducted or oomputed at the fouowt rate or rates:- p arllgraph a25 iii the case of every individual or blddu undivided famuy or unregistered firm or other 88sociaticlll of persods or body ollndivlduals, whether incorporated or dot, or every artificial juridical perscll referred to in sub-clause (vii) of clause (31) of section 2 of the incometu act, dot beldg a case to which aay other par,r  of this part 30 applies, -rates" f illcome-t41' nil; (1) where the total income does dot exceed ra 5, 000 10 per cent of 1m  0udt bj' which tile totallaoome exceeds rs 6, 000; (2) where the tota11dcome 35 exceeds ra 5,000 but does dot aceed ra10, 000 re600 pi  17 per oea& ollie amount by which the total iacome exceeds r810 000; (3) where the totalldoame exceeds rs10, 000 but does dot exceed ra 15 000 rs1,350 p'us 23 per cent of the amount by which the total income exceeds ra15, 000; (4) where the total mcome exceeds rs15 000 but does not exceed ra20 000 | rs          | 2,500    ||--------------|----------|| plus         |          || 30           |          || per          |          || cent        | of       || amount       |          || by           |          || which the    | total    || 5            |          || come exceeds | ra20   |(5) where the total mcome exceeds ra 20000 but does not exceed ra25000 | rs          | 4000    ||--------------|----------|| plus         |          || 40           |          || per          |          || cent        | of       || amount       |          || by           |          || whioh        |          || the          |          || tota1in-     |          || come exceeds | ra25   |(6) where the total income exceeds rs25000 but does not exceed rs30 000 ('1) where the total income exceeds rs30 000 but does not exceed ra40,ooo ra 6 000 plus 50 per oent of the 10 amount by which the tota1income exceeds rs30 000; (8) where the total income exceeds rs40 000 but does not exceed ra60000 rallooo plus 60 per cent of the amount by which the tota1income exceeds rs40 000; 15 (9) where the total income exceeds ra80 000 but does not exceed ra80000 ra23000 plus 70 per cent of the amount by which the total income exceeds rs80 000; (10) where the totalidcome exceeds ra80000 but does not exceed rsl, 00 000 ra 37000 plus 75 per cent of the amount by which the total in-20 come exceeds rs 80 000; (11) where the total income exceeda ra1, 00 000 but does not exoeedrs200000 | re52    | 000     ||-----------|---------|| plus      |         || 80        |         || per       |         || cent     |         || of        |         || the       |         || amount    |         || by        |         || which     |         || the       |         || tota1in-  |         || come      | exceeds || ral     |         || 00 000;  |         |(12) where the total 1dcome exceeds ra 2 00 000 ra 1 32, 000 plus 85 per cent of 25 the amount by which the total income exceeds ra2, 00,000: provlded that for the purposes of this paragraph, in the case of a hindu undivided family which at any time duridg the previous year relevant to the assessment year commeacidg on the let day of april, 30 l9'12 satlsfles euber of the followtdg two condltlou, namely:-(a) that it has at least two members entltlec1 to claim putiticll who are not le88 than ellhteen years of  or (b) that it has at leat two members edded to claim partitloo wjlo are not 11deally desoedded clii8 fl"clld the giber iiid who 35 are not lineally desceuded from any other ilvtdc member of the family-(i) no 1dcome-tax shall be payable od a tow idcome not exceedldl ra 7 - 000; (ii) where the total idcome exceeds ri 7,000 but does not exceed rs 7,660, the income-tax payable thereon shall not exceed forty per cent of the amount by which the total income exceeds rs 7,000  surcharge on income-tcu5 'lbe amount of income-tax computed in accordanoe with the preceding provisions of this paragraph shall be increased by a surcharge for purposes of the union calculated at the following rates namely:-10 per cent •• (a) in a case where the total income does not exceed rs15, 000 10 (b) in any other case 15 per cent : provided that the amount of surcharge pqable shall in no case exceed the aggregate of the following sums, namely:-15 (i) an amount calculated at the rate of 10 per cent on the amount of income-tax on an income of rs15, 000, u such income had been the total income (the income of rs15, 000 for this purpose beiog computed as if such income included income from various sources in the same proportion as the total income of the person concerned) and 20 (ii) 40 per cent of the amount by which the total1ncome exceeds rs15,ooo in the case of every co-operative society,- rates 0 f income-tar25 (1) where the total income 15 per cent of the totalidoome; does not exceed rs 10, 000 (2) where the total income exceeds rs 10, 000 but does not exceed rs20 000 rsl,500 plus 25 per cent of the amount by which the total income exceeds a 10, 000; 30 (3) where the total income exceeds rs20,ooo ri 4 000 plu s 40 per cent of the amount by which the total income exceeds ra20, 000 '!be amount of idcome-tax computacl at the rue beretabefore apecu1ed shall be increased b,y a bureba for purp088b of tile union calculated at ti rate of f1fteed per cet of noh 1dcome-tax in the cue of fnery registered firm, - rales of income-leu(1) where the total mcome doe not exceed re 10, 000 nil; 4: per ceat of the amoldlt by 10 which the total income exceeds •• 10,000; (2) where the total income exceeds 1\810,000 tnt does dot exoeed re 25,000 (3) where the total mcome exceeds re 25, 000 but doe - -exceed ra 50,000 | re800     | phis    | 8    ||------------|---------|------|| per        |         |      || ce         | ••      | of   || amouat     |         |      || 'by        |         |      || widch      |         |      || tile       |         |      || taul       |         |      || ta-        |         |      || come       | see_   |      || bai&,ooo; | 16      |      |(4) where the total mcome exoeed8 riso,ooo but doe dot exceed ra1, 00, goo | ai,    | 100    ||----------|--------|| plus     |        || 12       |        || per      | oest  || of       |        || tile     |        || amowllt  |        || by       |        || which    |        || the      |        || total    |        || a-       |        || come     |        || exceedl  | ri60, |(6) where the total income exceed8 ra1, 00, 000 | rii     | 8,    ||----------|-------|| 100      |       || pjus     |       || 20       |       || per      | oent || of       | the   || amowat   |       || by       |       || which    |       || tile     |       || totalid- |       || 20       |       || come     |       || exceeds  |       || ra1,    | 00,   || 000     |       | ~rchaes on income-illthe amount of income-tax computed at the rate herebabefore specified bhalllm increased by the agjregate of buroba1'l8s for puiposeb of the union calculated as specified hereunder:-25 (a) in the case of a registered firm whose total income molude idcome derived from a profebsion carried 011 by it and the acome 80 1dcluded is not 1eb8 than flfty-oae per oedt of buch total1jacome, a 8urcharp calculllted at ile rue of tell per cent of the "guilt of idcome-tax ccmputed at the rate hereidbefore 30 8petcified; (b) ill lae c  of july other reaiatered firm, a urobarp calculi  at tile rue of twenty per cent of the amount of 1dcometax computled at tile rate be reidbefore specified; and (c) a 8pecial 8urcbarp calculated at the rata of fiftha per oedt oil the agreg of the fo11owldg amoudta,  81,:-(i) ibe amouat of bacome-tu oclldpdled it mae rue jaen-tdbefore spectfted; add 5 (ii) lie amount of the 8urch  oalculated 11l aceor~ aace wltb clause (ii) or, as •• oue id, be 01  ct) of ••• ub-pararr  erpigllgtim-for the purpose of this par •• , "relf--tiered fll'lll"idcludes ad wlregibtered firm  ed 18 a rectatereel 10 flrm udder cbu8e (b) of aectioll183 of the iilcodle-t1lk adt p ifllgraph d iii the 0_ of evel7 localllltbority, -r,te of incolfle·tu oa the whole of tie totallacome 50 per oent 15 'l'he uiioubt of iao_-tu 00i8p  at  rate ltereluefol'8 specified shall be iiiore_ad by a •• roilalp for jmii1)08e8 of tile t1idal calculated at the rue of ftftma per oeat 01 uch idooide-ta  p iirlfll'clph e20 id the case of the lue liuiuraace corporation of india etab-31 0 f 19» 118hed udder the life ldauraaoe corporaticl:l adt, 1956-r,tes of illcolfle-tu &25 per cent i 25 (0 oil iw part of ita _al idcgllde whtoll oodaiau of profltll gaids f1'ollll1fe tuurance bus1de  (ii) od the buaoe u any, of tile total 1iloome 30 the r  of idcome-t appl1om1e, ta licoorduoe wi parllrlfll f of ida part to tbe tdtal me of a  &k: cciid,uy whigll 18 a oed,, in wh10la tile puiillc are  tuatall,iid'el'8  d in the case of a company, other than the we insurance corporation of india established under the life insurance corporation act, ~l of 1956 1956,-| rates                         | of               | income-tal'                ||-------------------------------|------------------|----------------------------|| 5                             |                  |                            || l                             |                  |                            || in                            |                  |                            || the                           |                  |                            || case                          | of domestic      | company-                   || (1)                           |                  |                            || where                         | the company      | is                         || company                       |                  |                            || in                            |                  |                            || which the public              |                  |                            || are                           | substantially    | interested,-               || (i)                           |                  |                            || in a                          | case             | where                      || total                         |                  |                            || income does not exceed        |                  |                            || rs50,ooo                     |                  |                            || 55                            | per              | cent of the total income; || (ii)                          |                  |                            || in                            |                  |                            || a                             | case             | where                      || the                           | total income     | exceeds                    || rs50,ooo                     |                  |                            || 15                            |                  |                            || (2)                           |                  |                            || w                             | here             | the company                || a company in which the public |                  |                            || are                           |                  |                            || substantially                 | interested,-     |                            || (i)                           |                  |                            || in the                        | case             | of an                      || trial                         | company-         |                            || 20                            |                  |                            || 55                            | per              | cent ;                    || (a)                           |                  |                            || on                            | so               | much                       || total income                  |                  |                            || as                            | does not         |                            || exceed                        |                  |                            || rsio,oo,ooo                  |                  |                            || 25                            |                  |                            || (b)                           |                  |                            || on                            | the              | balance,                   || if                            |                  |                            || any,                          | 60               | per                        || of                            | the total income |                            |(ii) in any other case 65 per cent of the total income: provided that the income-tax payable by a domestic company, being a company in which the public are substantially interested, the tdta1income of which exceeds rs 50, 000 shall not exceed the aggregate of-30 (ci) the income-tax which would have been payable by the company if ita total income had been ra 50 000 (the idcome of ra 50000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company); and 35 (b) eighty per cent of the amount by which its totalldccl2le exceeds rs 50,000 do in the case of a company other than a domestic company-(i) on so much of the total 1ncome as consists of-5 10 (a) royalties received from an indian concern in pursuance of an agreement made by it with the indian concern after the 31st d8¥ of march, 1961, or 15 (b) fees for rendering technical services received from an indian concern in pursuance of an agreement made by it with the indian concern after the 29th day of february, 1964, and where such agreement has, 20 in either case, been approved by the central government 50 per cent ; (if) on the balance, if any, of the total 1ncome 70 per cent ( see sectloo 39 ) in tile first schedule to 1i1e tariff act,-(i) in items noe1(1) 31(2), 48(8), 68(1), 73(15) (a), 73(15) (b), 75(4), 75(9), 75(10), 75(11), 75(12), 75(12 a) 75(14) 5 and 75(15) for the _try acaiaat each of them in l1e fourth column, the entry "100 per cent ad val~relft "shall be substituted; (it) in item no5 (2), for the entries in the fourth add sixth columns the entries "100 per cent ad valorem " add ''90 per 10 cent ad valorem "shall respectively be substituted; (iii) in item no9(3) for the entries in the fourth and sixth columns against sub-item (a), 'the emr1es ''rs60 per kilogl"am" odd ''rs60 per kilogram less 71 per cent ad vcdorem "shall respectively be substituted; 15 (iv) in items nos 75(2) 75(3) and 75(13) for the entries against each of them in the fourth and ruth columns the entries "100 per cent ad valor "and ''921 per cent ad 1lalorem " shall respectlvely be subetltuted; (v) in item no75(18), for the entry in the fourth column 20 against sub-item (b) (ii), the eairy "100 per cent ad valorem " shall be substituted; (vi) in item no87c for the entry in the fourth column against sub-item (i) the entry ''30 per cent ad valorem " shall be substituted 25  statement of objects and reasomb'lbe object of the blll ta to give effect to the flaadclal proposal of the central government for the ftdaacia1 ,ear 1871-72 add to provide for the levy of foratp travel tax the dote od olause uplaid the various provisiou oodtaided in the bdl new daal; y b cbav an the 28di if" 1971  presment's recoioiendation under articles 117 and 274 of the conbtlrtn'ion of india(copy of letter no f 3(30)-b/'11 dated the 28th may 19'11 from shr1 y b ciad midlater of fanee to the secretary lok sabba) the preideat baving been ldformed of the subject matter of the propoed bill recommedd8 udder artiole 117(1) aad (3) rad with article 2'14(1) of the coiuitttutlon of india the idtrociuotion of the pidado (no2) aw 19'11 to the lok sabia aad also recommends to the lot sabia the ooutdrauon of the bill 2 th bll1 wul be iotroduoed 1d the lot sabba immediately aar the pr  tlod of the budget od the 28th may 19'11  notes on clausesclause 2, read with the first schedule to the b1ll, seeks to prescribe the rates at which fdcom&-tax, inoludlng suroharges where applicable, is to be levied on inoomes chargeable to tax for the assessment year 1971-72 further, it lays down the rates at which tax is to be deduoted at souroe during the financial year 1971-72 from incomes subject to such deduc-uon under the income-tax act: and the rates at which "advance tax" is to be computed and tax 18 to be caloulated or charged in special cases for the financial year 1971-72 rates of income-tax for the assessmeut year 1971-72 -the rates of income-tax (1ncluding surcharges) in the case of non-corporate tax-payers on incomes uable to tax for the assessment year 1971-72 are the same as those specified in part in of the first &hedule to the finauce act, 1970 for the purpose of deduction of tax at source from ''salaries'' and for oompltation of "advance tax" payable during the finadcial year 1970-71 slmfiarly, in the caae of corporate taxpayers, the rates of income-tax on incomesl1able to tax for the auesment year 1971-72 are the same as those laid down in part m of the first &hedule to the finance act, 1970 for the plrposes of computing "advance tax" payable by companies during the financial year 1970-71 these rates have been specified in part i of the first schedule to the blll rates for deduction of tax at source during the financial year 1971-72 from incomes other than "salaries" -part n of the }'irst schedule to the bid specifies the rates at which income-tax (including surcharge where applicable) is to be deducted at source during the financial year 1971-72 from incomes other than "salaries" and retirement annuities referred to in aecuon 80e(9) of the ldcom&-tax act '!bese rates vary in certain respects from the rates specified in part u of the first schedule to the finance act, 1970 for deduction of tax at souroe from incomes other than "salaries" and retirement annuities during the financial year 1970-71 in the case of inoome by way of interest on seourities (not being interest on a tax free security) or dividends payable to a resident recipient other than a company during the financial year 1971-72, tax wul be deductible at the rate of 23 per cent (which is made up of basic income-tax of 20 per cent and surcharge of 3 per cent) as against 22 per cent during 1970-71 in the case of incomes (other than interest on a tax free security) payable to a non-resident other than a company during the financial year 1971-72, tax will be deductible at the minim wn rate of 345 per cent (made up of income-tax of 30 per cent and surchargfl of 4 5 per cent ), as against 33 per cent formerly however, in the case of interest on a tax free security payable to a non-corporate nonresident, the rate for deduction will be 1725 per cent (made up of income-tax of 15 per cent and surcharge of 225 per oent), as against 165 per cent formerly in respect of dividends payable by any domestic company on shares in that company held by a foreign oompany, tax w1l1 be deductible at source during the financial ~ar 1971-72 at the uniform rate of 245 per cent the concesslonal rate of 14 per cent formerly applicable in respect of dividends paid to a foreign company by a closely-held indian company mainly engaged in a priority industry has been discontinued 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 f1nadcial year 1971-72-part m of the firat schedule to the b1ll specifies the rates at whtch income-tax is to be deducted at source from "salaries" and retirement annuities referred to in section 80e(9) of the incometax act add also the rates at which advance tax is to be computed and idoome-tax is to be calculated or charged in special cases for the financial year 1971-72 these rates are the same as those specified in the bill for the assessment of income liable to tax for the assessment year 1971-72 except in regard to the rate of surcharge on the income-tax in the case of individuals, hindu undivided famfi1es, unregistered firms and other categories of nod-corporate taxpayers including cooperative societies and local authorities, as also the rate of special surcharge in the case of registered firms '!'be rate of surcharge in these cases and the special surcharge in the case of registered firms is proposed to be iucreased from 10 per cent to 15 per cent except in the case of individuals, hindu undivided fam1l1es, unregistered firms and associations of persons, etc, having a total income not exceeding rs15, 000 in the latter type of cases, the rate of surcharge will continue at 10 per cent in the case of the life insuradoe corporation of india and companies, the rates of tax specified in part m of the first schedule for the computation of "advance tax" are the same as those specified in part i for the purpose of levy of tax on income assessable for the a88888-ment year 1971-72  clause 3 seeks to amend section 2 of the income-tax actsub-clause <a) seeks to substuute a new clause for existing clause (17) of section 2, relating to the definition of "company" under clause (17) as substituted, the term "company" will include, besides any indian company any body corporate inoorporated by or \dlder the laws of a country out8ide india the term will also include any institution, association or body which is or was asses8able or was a8sessed under the indian incometax act, 1922 or the income-tax act, 1961 as a company for any assessment year up to and including the assessment year 1970-71 further, as under the existing definition, the· central board of direct taxes will have the power to declare, by general or special order  that any institution, association or body, whether incorporated or not and whether indian or non-indian, shall be treated as a company for the purpose8 of the inoome-tax act this power of the board is now being specifically made exercisalie even in relation to a past assessment year and the declaration wm have effect (or any assessment year or years specified therein sub-clause (b) seeks to amend clause (18) of section 2, relating to the definition of the term "com pany in which the public are substantially interested" under one of these amendments, a company registered under section 25 of the companies act 1956 will be regarded as a company in which the public are substantially interested under the other amendment, the central board of direct taxes will have the power to direct that a company having no share capital shall be treated as a company in which the public are substantially interested such direction wf1l be made by the board having regard to the objects of the company, the nature and composition of its membership and other relevant considerations any such direction may be made by the board even in respect of a past year, and it will have effect (or the assessment year or years specified therein sub-clause (c) seeks to amend clause (26) o( section 2, relating to the definition of the term ''indian company" under the proposed amendment the term ''indian company" will include a corporation established by or under a central, state or provincial act and havi~ ita regiatered or pr1dclpal otnce in india add allo any 1diutuuod uloo1atlod or body wldch  declared by the board to be a company under cllulh (17) of aection 2, where the pridci-jill omee of the lutttutjon, association or body 18 in india ~c1ause (d) seeks to 1nbert a new cjauii8 (43b) m section 2 of the income-tax act, deftn1dc "tax recovery comm1asioner" with effect from 1st jantary, 1972 udder the new clause a tax recovery commissioner 18 being defined as a commisb1oner or an assis-'ant commissioner of income-tax who may be authorised by the central government by general or special notification in the official gazette to exercise the powers of a tax recovery commissioner clause 4 aeeke to make certain amendments in section 10 of the income-tax act relatidi to exemption from tax of certain incomes sub-clause (a) _eks to amend section 10~o) relating to exampt1on from tax of certaln mcodles of a local authority under the amendment, income derived by a local authority from the supply of water or electricity altside its own jur1ad1ctlma1 art8 wu1 also be exempt frorn lncome-t&x the ameddment wul take effect from the 1st aprll, 1972 and will be  applicable for the &ssessment year 1972-73 add subsequent years sub-clause (b) beeks to amend section 10~6a) 80  to revive the exemption from tax which was ava1lable in the case of persods resident 111 the d18trtct of ladakh (other than govermnent servants) up to and including the a8sessmentyelu' 1969-70 for a further period of 5 years, ie, for the assessment years 1970-71 to 1974-76 the exemption is being made available with retrospectlve effect even in the cue of government servants resident in ladakh who were not within the purview of the old provision clauae 5 seeks to amend section 11 of the income-tax act relating to exemption from income-tax of inoome from property held under trust for charitable or religious purposes under the amendment a new sub-section is sought to be inaerted retrospectively from 1st apru, 1962, ie, the date of commencement of the income-tax act, 1961 the new sub-section seeks to provide that where ~ capital a8set being property held under trust wholly for charitable or religious pu-poses is transferred and the whole or any part of the net consideration for the tr8d8far (that 1& the full value of the considerauon al reduced by the expenditure iljcurred wholly and exclusively in coonectiou with the transfer) 11 utilised for squiring another capital auet to be so held the capital gain arisfdg from the transfer shall be regarded as having been applied to charitable or religious p~ pomi where the whole of suoh net conaderation 18 uulised in acquiring the new oapital anet, the enure amount of the capital gain shall be regarded as having been applied to charitable or religious purposes,wh1le in a case where only a part of the net consideratlon 18 ud11sed for acquirlng the dlbw oapltal asset the amount, u any by which the coat of acqussitlon of the new asset exceeds the agl1"egate or the cost of acqui8ition of the capital ast transferred aad the oost of any improvement to such asset wu1 be reprded a8 having been applied to such purpoeea i'd a case where the ut forma jmt of property held under trust in part oaly for charitable or religious purposes, a proportiqd8te amount of the oapltal pin wul be regarded aa having been applied to such purjx)s clauae 8 aeeks to amend eeotion 13 of the iucome-tax act, relattng to forfeiture of the exemption from inoome-tax by charitable and religious trusts in certain caees the amendment is of a clarifying nature clause 7 seeu to quend section 16 of ule income-tax act, relating to deductions in computing income udder the head "salaries " udder the amendment, the standard deduction fo~xpenditure on travelling in computfng income \dlder the head "salarlea" in the caee of a taxpayer· ownijjg a motor cycle, licooter or other moped add 118ingit for the purposea of his employment ia propoeed to be fdcreaaed from rs80 per month to rs 75 per mouth; and in the o&8e of salarted taxpayers who do ddt own a motor car or a motor cycle scooter or other moped it ia propoeed to be fdcreased from rs35 per m odth to rs 50 per month these amendments will take effect from 1st april 1972 add will be applicable for the a88888medt yr 1972-73 and subsequent years clall88 8 seeks to amend clause (v111) of sub-l8ctlon (1) of aectlon 38 of the lddometax act relating to the special deduction in oomputldl the taxable profits of a flnanoial corporation which is edl,,ed in providing long-term finance for 1ndustrial development in india under the amendment the special deduction will be available also to a t1nadcial oorporation which is eugapd in providing iodg-term finance for agricultural developmedt in india the deduction will be in an amount up to 25 per cent of the profits oarried to a special reserve account in the case of a financial oorporation having a paid-up share capital up to rs3 crores and 10 per cent of the profits in the case of any other finallcial corporation as under the existing provision the benefit of the deduction will be available only where the corporation is for the time being, approved by the central government for this purpose the aggregate amount of the deduction over a period of years will not however exoeed the amount of the plid-up capital as udder the existing provision the extension of the prov1slod in section 36(1)(v1i1) to tlnanclal oorporations engaged in providing longterm finance for agricultural developm ent in india will take effect from 1st april 1972 and will accordingly be applicable for the assesament year 1972-73 and subsequent years clause 9 seeks to amend section 40 of the income-tax act udder which certain amo\dlts are not deductible in computtdg the profits and gains of bulliness or profession under ule amendment in sub-clause (a) sub-clause (v) of olause (a) of section 40 is beldg omitted with effect from 1st apr11 1972 'ibis amendment il consequential to the tnaertlon of new bub-iection (5) in seotion 40a of the ldoome-t;ax act under clause 10 of the bid llib-olause (b) seeks to amend lectiod 40(0) udder which apendlture fdcurred by a company on the provision of any remuneration or bedbfit or amenity to directors, persona who have a lubbtanttal1nterest in the company and their relatives and the elq)enditure or allowance in relpect of any &8sets of the oompldy which are used by such persons for their own purposes or benefit is not allowed aa a deduction to the extent such expenditure or allowance is in the oplnioo of the inaome-tax officer, excesbive or udreaaoaable under the amendment the deduction on aoco\dlt of such expenditure or allowance will be further nbjeot to an overall ce1linllimit of ri 72,000 in respect of any one director or a person who has a sublltadtlal idterest in the company or a relathe of a direotor or of such person 1bese amendments will come into force with effect from 1st aprll, 1972 and wlll accordingly apply in relation to assessments for the assessment year 1972-73 and subsequent asleslment years clause 10 seeks to make certain amendments to section 40a of the income-tax act under which expenses or payments are not deductible in certain circumstances the amendment under sub-clause (a) is of a drafting nature and is consequential to the insertion of new sub-sections (5) and (6) in sectlon 40a under sub-clause (b) sub-clause (b) seeks to insert two new sub-sections (5) and (6) in section 40a under the new sub-section (5), expenditure incurred by an assessee on payment of salary to an employee will not be allowed as deduction in computing the taxable profits to the extent it exceeds an amount calculated at the rate of rs 5, 000 for each month or part thereof comprised in the period of employment of the employee in india similarly, expenditure incurred by the assessee on payment of salary to a former employee, le, an individual who ceases or ceased to be the employee of the assessee during the previous year or any earlier previous year, will not be allowed as deduction in computing the taxable profits to the extent 1t exceeds rs 60,000 for the year • for this purpose, "salary" is being defined broadly on the lines of the provision in section 17 of the income-tax act subject to certain modifications the expression "salary" will include wages; any annuity or pension; any gratuity, any fees, commissioos or profits in ueu of or in addition to any salary or wages; any advance of salary and the annual accretion to the balance to the credit of an employee participating in a recognised provident fund to the extent it is chargeable to tax it will, however, not include perquisites and the sums transferred from the account of the employee in an unrecognised provident fund to a recognised provident fund the new sub-seetlon (5) further imposes certain rebtrwtions on the deductible amount of expenditure which is incurred for providing any perquisites, whether convertible into money or not, to an employee or the amount of expenditure or allowance (such as depreciation allowance) in respect of assets used by an employee for his own purposes or benefit the aggregate of the expenditure or allowance under these heads that can be allowed as deduction in computing the taxable profits will be limi~ to 20 per cent of the amount of salary payable or an amount calculated at the rate of rs1000 for each month or part thereof comprised in the period of employment of the employee in india during the relevadt previous years, whichever isle8s for this purpose the expre8sion "perquisite" is being defined to mean-(1) the value of rent-free accommodation provided to the employee by the assessee; (11) the value of any coocebsion in the matter of rent respecting any accommodation provided to the employee by the assessee; (w) the value of any benefit or amenity granted or provided free of oobt or at 00nee88tonal rate to the employee by the assessee; (iv) any bum paid by the asse88ee in respect of any obugation wh1ch t but for such l8yment, would have been payable by the employee; add (v) any sum paid by the assessee whether directly or through a fund, other than a recognised provident fund or adj approved superannuation fund, to effect an assurance on the life of an employee or to effect a contract for an annuity it is being specifically provided that the following items will not be taken into account in computing the expenditure or allowance that would not be deductible under the new provision:-(i) the value of home leave travel concession to indian citizens or passage moneys or other assistance for proceeding to the home country on leave in the case of foreign nationals, which is exempt from tax as the income of the employee under the existing provisions in sections 10(5) and 10(6)(i) of the l'lcome-tax act: (ii) emlioyer's contribution to the employee's account in any recognised provident fund or an approved superannuation fund or for the employee's bedefit to an approved gratuity fundi (iii) expenditure incurred by a company for the purpose of promoting famlly plan-ding amongst its employees it is being further provided that tho limitation under the new sub-section (5) will not apply in the following cases:-(i) payments to an employee in respect of any period of his employment outside india: (11) payments to foreign technicians who are entitled to exemption from tax on their remuneration under section 10(6)(vu) or section 10(6)(viia) of the income-tax act: (iii) payments to any employee whose income chargeable under the head "salaries" does not exceed rs 7 ,500 under the new sub-section (6), expenditure incurred by an assessee on payment of fees for services rendered by a person who at any time during the twenty-four months immediately preceding the relevant previous year was his employee wui not be allowed as deduction in computing the taxable profits of the assessee to the extent it exceeds re 60, 000 in a case where the assessee also incurs in relation to such person, any expenditure oil payment of salary referred to in sub-section (5 )(a)(i), the deduction in respect of the expenditure oil payment of fees and that on payment of salary will be limited to &60,000 in the aggregate these amendmeflts will take effect from 1st april 1972 and wfll accordingly apply in relation to assessments for the assessment year 1972-73 and subsequent assessment years clause 11 seeks to omit, with effect from the 1st april, 1972, section 54a of the incometax act, relating to relief of tax on capital gains in the case of individuals of foreign nationality and foreign companies which hold investments in the shares of an indian comlbdy the relief will not therefore, be available for the assessment year 1972-73 and subsequent years clause 12 seeks to omit sub-clause (iv) of clause (a) of section 58(1) 111is am endment is consequential to the omillsion of sub-clause (v) of clause (a) of section 40 of the incometax act under clause 9 of the bill clause is seeks to amend sub-sections (1) and (4) of section 67 of the idoome-tax act, relaudg to computation of a partder's share in the income of a firm under the amendment to sub-section (1), the tax payable by an unregistered firm whioh is assesled as a reg1atered firm under section 183(b) of the income-tax act will be allowed as deduction in computiug the partner's sbare in the 1dcome of the firm the amendment to sub-seotion (4) 11 of a verbal nature and is for harmonising the wording of the sub-section with the wording of the amendments to sub-section (1) these amendments wlll take effect from 1st april, 1971 and ww therefore, apply for the a88essment year 1971-72 and subsequent years clause 14 seekl to amend section 80a of the income-tax act, relating to certain de&1ctions to be made in computing the total income the amendment 1a consequential to the amendment of sections 80l 80m m and son and the substitution of a new section for the existing aection 800 under clauses 17, 19, 20 and 21 of the blll clause 15 seeks to amend section soc of the income-tax act, relating to deduction in respect of life inauraoce premia, oontributions to provident fum, etc under the ameddment proposed in sub~lause (a))the quantum of deduotion from taxable income in respect of lolli-term savings through life insuranoe, provident fund, etc, in the case of individuals and hindu undivided famwes will be varied so as to allow a deduction of the whole of the first rs1, 000 of the qualifying savings plus 50 per oent of the next rs 4,000 plus 40 per oent of the remaldder of the quallfyidi savings this ameddment will apply also in the case of an as800iation of per sods or a body of individuals oonsisting only of husband and wife govern:! by the system of oommunity of property in the union territories of dadra and nagar havell ao:i goa, daman and diu under the amendment proposed in sub~lause (b),the monetary limit of the savidis qualuylq for tax relief in the oase of iddlviduals will be raised from rs1s, 000 to rs 20, 000 this revised monetary oeuingl1mit over the savilljs qualifying for tax relief will apply also in the oase of an association ,f persons or a body of individuals referred to in the precedlng paragraph these amendments wui come into foroe with effect from the 1st april 1972 and wul accordidlly apply in relation to the usessment year 1972-73 and subsequent assessment years clauae 18 seeka to amend section 801 of the inoome-tax act, relatldg to deduotion in reapeot of profita add cu9 from priority industries in the case of oertaln oompanies udder the amendment, the special deduction available to oertain domestic compad1es of an amoant equal to 8 per oent of their profits from priority industries will stand reduoed to 15 per oent of suoh proflta this ameddment will take effect from 1st apru,1972 add will acoordly apply 1c relation to the ashssments for the assessment year 1972-73 ad1 subsequent yeara clauae 17 leeka to amend section !sol of the 1dc0me~ax act, reiatidl to dedllotioll in reapeot of idterest on oertain securities, dlvk:leadl etc, in oomp'ltldl the totalldaome of an aaaeshe uader the amendment in ub-clause (a) the deducuod udder this sectiod will be available only in the case of individuals add hindu undivided famllies under the amendments in sub-clauses (b) add (0), deposits made with co-operative societies by their members will also qualify for idolusion in the categories of financial usets income from which qualifies for deduction uptors3,ooo in the aggregate under this section the amendments will take effect from 1st april,1972 and will, therefore, apply for the as1l88s-ment year 1972-73 and 8ubsquent years clause 18 seeks to amnd section 80m of the ldoome-tax act, relating to deduauon in respect of certait inter-corporate dividends under the amendment in sab-clauae (a), the ieduouoll preaently available to a foreign company with reference to dividend received by it from a olosely1ejd iddiad company mainly engaged in a priority industry will staad reduced from 80 per oent to 86 per cent of such dividends accordingly, foreip companies w111 hereafter be entitled to a deduction of 65 per cent of the dividedds received by them from all dom •• ic compwes the amndment in sub-clause (b) i8 oonsequential to the amendment of matioll sol of the income-tax act under clause 17 of the bill these amendments w1ll take effect from 1st april, 1972 add will accorduwly apply in relation to assessments for the assessment year 1972-73 add iubhqueat a ••••• ment yearb clause 19 seeks to make certain ameddments to section 80mm of the ldoome-tax act relating to the deduction in the case of an indian company in reapect of royalties, ete • received from indian concern •• under the amedded provision, the deduction of 40 per ont of the imome by way of royalty, oommibbion, feeb, etc, will be avallable dot only to lladtan oomp  but aleo to other resident 88sessee however, in the cue of lid  e other than a company or a eo-operative society, the deductioll w1ll be admi •• lble oii1y if the acocauats of tim  e  for the relevant previous year have been audited by a chartered acoountant or other aceoull&&dt who is qualified to liiidit the account of oompanie and the report of iugb awllt in a form to be prescribed for the purpo  duly ipld add verified by acb accountant i furnibad alodi with the return of income the deduction udder thl beetioll, w111 boa adml •• ible only wbere the technical mow-how or technical service are provided to the indian concern udder an agreement apja'oved by the central board of direct tax •• for the parpose at present such approval hu to be obtained from the ceatral goverdld81lt the amddments will take effect from the 18t aprll,19'12 add will apply in relation to assessments for the asse8sment year 1972-73 and ubmqulellt yea,- claue 20  eka to make certain amddme8 to eectioil son d(tbe income-tax act, relalidl to exemption from income-tax of dividedd received by an indian company on abare allotted to it in a fore1p oompany in couiderauod for the provisl~ of technical kdow-bow or tecbdlcal servics to the forign oompuy udder the amended provision, the deductiod 1d re8pect of tbe _ie of reb divldedda will be available not oaly to iddiad oompulie but &leo to other reekieat aii8 the deduouoa will be admi •• lble wkler thi aeotioa only where the tecluaiidallmow-howcl' technical  10  are provided to tile fore  oompany under all qreement approved by the central board of direct taxes for this purpose and the application for such approval is made to the board before the 1st october of the asbessment year in relation to which the approval is first soupt the amerdments will take effect from the 1st apr11,1972 and wul apply in relation to asessments for the aasessment year 1972-73 ard subsequent years elm,e 21 seeks to substitute, with effect from 1st aprll,1972, a new section for section 800 of the income-tax act, relating to deduction in respect of royalties, etc, received by an indian company from a foreiln oompany in codsideration for provldiljl technical know-how or technical services urder section 800 as substituted, the deduction of the whole of the income by way of royalty, commission, fees or similar payment will be available not oaly to indian oompanies bm alllo to resident asbessees other thad companies however, in the case of an assessee other than a company or a co-operative 8ooi8&y, the deduction will be admissible only if the accounts of the assessee for the relevaat previoua year have been audited by a chartered acoountant or other accountant who is qualified to audit the accounts of companies and report of such audit in a form to be prescribed for the purpose du ly siped and verified by such accountant is furnished along with the returll of idoome further, umer the section as substituted, the deduction will be available in all cues where the technical know-bow or technical services are provided outside lddia to a foreip government or to a foreip enterprise, whether or not such foreign tldterpr1se is organised as a company the deduction will be admissible under thls section -y wbere the technical know-bow or technical services are provided to the foreign government or enterprise  r sa agreement approved by the central board of direct taxe for 18 purpose add the appllcation for such approval is made to the board before the lat october 01 the 88ses8ment year in relatian to whlcb the approval1s first sought ciiilbe 22 beeks to amend seouon sop of the income tax act, relatidi to certain deductionl 111 respect of idcome of oo-operauve societies the object of the amendment is to moure that laboar co-operative societies am fisberies co-operative societies elllaged in ibe catchiljl, curing processing, preserving, stori  or marketing of fisb or the purchase of materials add equipment in connection therewith for the purpose of supplying them to their members, will be el1lible for exemption from iocome-tax in respect of the whole 01 their buslnes income·from such activities this exemption will boa available subject to the condition that the rules am bye-laws of the society restrict the votilll rights to its members who contribute their labour or carryon the fibilll or allied activities, any cooperative credit sooiety which provides financial  istadoe to it and the state government these amendments wlll take effect from 1st april,1972 ard will, ace ordldgly , be operative for the assessment year 1972-73 and subsequent years clause 23 seeks to amend eection 80tof the income-tax act relating to deduction in respect of long-term capltallrains in the case of 88bessees other than oompanies udder the amendment, the deduotiollin respect of lolli-term capital gains relatiol to buildings or lands or any riptb ill buudidis or ladls will, in sacb cases, be allowed in an amount equal to rs 5, 000 pllu 35 per coint (as against 45 per oeat urder the existidi provision) of the amount by which such calillal pin exceeds rs 5,000 in reprd to iool-term capitallalns relatiq to other capital :,8sets, the deduction wlll be allowed in an amount equal to re 5, 000 ,5 10 per cem (u "~dln 65 per c ••• under the exl8t1d1 prcwlb10d) of the amount by which the capital pin exceeds ra5, 000 these mend  will golde 1nto force with effect from 1st aprll, 1972 nd will accord1ngly pply 1n relatioil &0 ssessments 'or the assessment year 1972-73 and subsequent years clause 24 seeks &0 amedel elall  cui) of section 86 of the 1dc0me-tax act under the amendment,it is being made cler that abe rebate of tax &0 which a partner of an unreg1stend firm is entitled under that provision in respe4lt of hi share 1n the income of the unregistered firm wlll dot be available where the wlregtstered firm 1s •• sessed s a registered firm under clause (b) of section 183 this ameddment 1s deslped to brld,i the provision in secuon s6(ui) in line with the provisions of section 183(b) add the provisions of section 67 as proposed to be amended under clause 13 of the bui clause 25 seeks to substitute a dew section for section 115 of the lacorne-tax act, relating to tax on capital gains in the c~ of cornp8jl1es udder the hction 8s substituted" long-term capital gaids relating to buildings or lands or any rights in buld1ncs or lands will, in such cases, be charged to tax at the rate of 45 per cellt (as quat the existing rate of 40 per cent) while capital galns rela1i1ll to other assets w1l1 be taxed at the rate of 35 per cent (as against the existing rate of 30 per cent) the substitution w1ll take effect from 1st april, 1972 and the rew section wljl accordingly apply in relation to assessments for the assessment year 1972-73 and slbsequent years clause 26 seeks to amend section 194a of the income-tax act relating to deduction of income-tax from interest other than 'interest on securities' under the amendment, do income-tax will be deductible at source from interest paid by co-operative societies on deposits made with them by their members clause 27 seeks to make certain amendments to section 230a of the income-tax act which prohibits the registration of transfer of any immovable property (oot being agricultural land) valued at more than rs 50, 000 unless a certificata by the income-tax officer has been produced before the registerl authority &0 the effect that the transferor of iuch property bas paid or made satisfactory provision for payment of all existing l1abuiuea under certain direct taxes enactments or that the registration of the document will not prejudicially affect the recovery of iuch liabilities under sub-clause (a) the section is being amended to cover transfers of qricuural laud snd also liabiutles under the super profits tax act, 1963 am the compadles (profits) surtax act, 1964 under sub-clause (b),a dew sub-modod (3) is propomd to be i_ned in the iecuon to confer powers on the central jioard 01 direct taxe 10 elllldpt, by aouficatton in the ouicial gazette and for reasons to be recorded in writldl, any institution, association or body or any class of institutions, associations or bodies from the requirement of obtaining r tax clearance certificate under the section  the amendments will take effect from 1st october, 1971 clause 28 seeks &0 omit section 236 of the income-tax act, relating to relief to shareholders in respect of dividendi paid by a company which has paid agricultural lncome-tax to a state government on the idcome out of whlch the dividends are distributed the omission will take effect from 1s' april, 1972 and accordingly, tbe relief will cease to be avauable to shareholders from the assesment year 1972-73 clause 29 seeks to make oertaid amendments to the rules contained in the second iobedule to the ldcome-tax act under the amendment in sub-clause (a), a commissioner or an assistant commissioner of income-tax who is authorised to perform the functions of a tax recovery commissioner will, in the discharge of his functions as such tax recovery commissionn, be deemed to be actilll judicially withid the meaniql of the judicial officers' protection act, 1850 further, every tax becovery commissioner shall have the powers of a civil court while trylng a suit for the purpose of receivi, evidence, administering oaths, enforcing the atteddance ol wltae  and compelllql the production of documents udder ~ ameddmeat in sub-clause (b) an appeal from any original order passed by a tax recovery officer, being any gazetted officer of the central government or state governm_ who baa been authorised by the central government under section 2(44)(ui) of the imome-tax act to exercise the powers of a tax recovery officer under the second sobecnle to the idoome-tax act, will, hereafter, 11e to the tax recovery commissioner instead of tbe ref  authority to whioh appeals, ordinarily, lie against the order of a colleotor uader the law relating to land revenue of the state ooncerned appeals against orders pased,before the date of appointment of a tax recovery commissioner in respect 01 auy areaby ady tax recovery officer (including state revenue offloers) for that area or 8il area 1dcluded in that area wul also 11e to the tax recovery commissioner and not to the appellate authority of the state government further, the appeals pending on that date with tile state govenmaent aluh ·~te8 in l:e"l~ct of  _ci$ wnerein the work of recovery of __ bae been tailer ewer oy 'fax recowry officers of the central government, will stand t:rlldsferred to the turecoyery commissioners exercising juriediotlon over that area under the amelkiment in sub-clallse (c), the tax recovery commissioners are being _powered to raylew orders passed by them under the second schedule to the income-tax mt for the purpose of reotllyiql: any mistake aoparent from the record udder tjae ameddment in sub-clause (d), the power of the board to make rules regulating the procedure to be followed by tax recovery officers, etc • is being enlarged in order &0 edable the board to define the areas within which the tax recovery commissioners may  reiae juriadlotion all these amendment will take effect from 1st january, 1972 c18118e 30 seeks to rpake certain amendments in the "list of articles and things" in the sixth schedule to the income-tax act the amendment in sub:"clause (a) i8 codsequential to the amendment of section 80m of the income-tax act under clause 18 of the b1l1 under the amndmedt~: in rub·-clauses (b) and (c), the following items will be omitted from the 11st:-(1) aluminium {metal)- which ls presently included 1n item (2) of the list ,: (2) motor truc:~s j"id bu •• s, prsently listed as, item (10) (3) cement and refractories presently liated as item (12) (4) soda ash presently listed as item (14) (5) petro-chemicala preaently listed as itein (18) (6) automobile anomaries presently listed as item (20) omission of these items will take effect from 1st april 1972 clause 31 seeks to make oertain amendments to section 4 of the wealth-tax act 195'1 under which certain assets are included in the net wealth under the amendment in sub-clause (a) (i) the value of the assets transferred by an individual to his spouse or minor children after the end of the previous year relevant to the assessment year 1971-72 for purposes of gift-tax under lj\e gift-tax act will be included in the net wealth of such individual for the assessment year 1972-73 or any aubsequent aasessment year under the amendments in sub-clauses (b) and (d) in a case where an indivldluli converts his separate property into joint family property of the hindu undivided family of which he is a member by impressing such property with the character of joint family property or by throwing such property into the common stock of the undivided family, he will be deemed to have transferred the converted property through the famuy to the members of the family for being held by them jointly the share in the converted property in 80 far as it is attributable to the interest of the individual his spouse or minor children (other than married dauchters) will be included in the net wealth of the individual himself further in the event of a partial or lotal partition in the hindu undivided family the share allotted to the spouse or minor children in the converted property will also be similarly included in the net wealth of the individual this amendment will apply only in rehtion to conversions made after 31st december 1969 and will be applicable for the assessment year 1972-73 and subsequent assessment years under the amendment in sub-clause (c) a new sub-section (7) is proposed to be inserted in section 4 under which a member of a co-operative hou8ing society to whom a bu1ldidi or part thereof is allotted or leased under a house building scheme of the society will be regarded as the owner of that building or part it is a180 beidi provided that in determining the value of such building or part for purposes of inclusion in the net wealth, the value of any outstaming instalments of the amount payable by the assessee to the 80ciety towards the cost of such building or part (including the land appurtenant thereto) under the house building scheme of the society w1ll be deducted the amendment in sub-clause (a) (11) seeks to make a consequential change in clause (b) of sub-section (1) of section 4 these amendments will come into force with effect from 1st april, 1972 and will accordingly apply in relation to the assesament year 1972-73 an:! subsequent assessment years clle 32 seeks to make certain amendments to section 5 of the wealth-tax act, hlati  to exemption in respect of certain assets udder the amendment in sub-clause (a) (1), jewellery will be excluded from the purview of the exemption in clause (vui) of section 5(1) retrospectively from 1st april, 1963 the amendment in sub-clause (a) (11) seeks to add two provisos and two explanations to the said clause (vui) with effect from 1st april, 1972 the first proviso seeks to exclude from the purview of clause (viii) furniture, utensils and other articles which, though held for personal or household use of the 88sessee, are made of, or contain (whether by way of embedding, covering or otherwise), gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals by virtue of the second proviso the exemption in respect of conveyances, ie motor cars or other mechanically propelled vehicles, aircrllft or b-=»ats, will be available only to the extent their value does not exceed, in the 8iiregate, the sum of twenty-flve thousand rupees under the first explanation, it is bel  made clear that for the purposes of the said clause (vi11) and also clause (xiii) of motion 5(1) (relating to exemption from wealth-tax of heirlooms other than jewellery), the term "jewellery" will include -(a) ornaments made of gold, silver, platinum or any other precious metal or any alloy cjntaln1ng one or more of such prec!ous metals, whether or not containing any precious or semi-precious stone and whether or not worked or sewn into any wearing apparel i and (b) precious or semi-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel the second explanation defines the expression "conveyance" under the amendment in sub-clause (a)(ui), the exemption from wealth-tax presently available under clause (xx:) of section 5(1) in respect of shares in new industrial companies for a period of 5 years from the commencement of production will not be available in respect of shares formidg part of an initial issue of equity share capital made after 31st may, 1971 under the amemmenta in sub-clause (a)(lv) and sub-clause (b), shares in a co-operative liooiety and the deposits made with the society by its members will be included in the categories or financial 88 sets , invelltmenuj wherein qualify for exemption from wealth -tax up to an 8iiregate value of rs1, 50, 000 further, deposits made by a member of a co-operative boulidg society to whom a building or part thereof is allotted or leased under a housebuildldl icheme of the society will be completely exempt from wealth-tax without being 8ubject to any ce111  limit, to the extent such deposits have been made under the housebuildi  scheme of the society the amendments in sub-clause (a)(u), (iii) and (tv) and aub-clause (b) will come into force with effect from 1st april, 1972 and will accordingly apply for the assessment year 1972-73 ami subsequent years clillse 33 beeks to amend section 18 of the wealth-tax act, 1957, relating to penalties for failure to fuoblsh returlul, to comply with notices and concealment of assets, etc this amendment 1b conaequenual to the prescription under clauae 36 of the bill of a unified schedule of rates of wealth-tax applicable to lddividuals and hindu undivided famules, which does not contain any slab of net wealth on which the rate of wealth-tax chargeable is nil clause 34 seeks to amend sub-section (4) of section 21 of the wealth-tax act, relating to assessment of discretionary trusts 'l11e amendment in sub-clause (a) is consequential to the prescription under clause 36 of the bill of a unlfled schedule of rates of wealth-tax applicable to indi viduals and mndu undivided families under the amendment in sub-clause (b), in computing the net we31th of a discretionary trust, the exemption in respect of investments in the following categories of financial &ssets speclfled in section 5(1) wlll not be allowedt-(a) deposits under any scheme framed by the central government and notified for purposes of section 5(1)(xv); (b) investments in small savings securities of the central government, referreli to in section 5(1)(xvl), including deposits in post office savings baak accounts and under the cumulative time deposit schemes; (c) securities of the central or state governments generally, referred to in section 5(1)(xxli); (d) shares in indian companies referred to in section 5(1)(xxill); (e) approved debentures of co-operative societies, etc referred to in section 5(1)(xxiv); (f) units in the unit trust of india referred to in section 5(1)(xxv); (g) deposits with banking companies, co-operative banks, co-operauve land mortgage banks and land development banks, referred to in sectlon 5(1)(xxvl); (h) deposits with approved financial corporations referred to in section 5(1)(xxvll); (1) shares in co-operative societies referred to in section 5(1)(xxvlil); and 0) deposits with co-operatlve societies, by their members, referred to in section 5(1)(xxix) this amendment wlll, however, not be appllcable in cases referred to in the provllo to section 21(4) thele amendments will come into force from 1st april, 1972 and will, therefore, apply for the usesament year 1972-73 and subsequent years clause 35 seeka to amend, with effect from 1st janibry, 1972, section 32 of the wealthtax act 1957 relating to the mode of recovery the amendment is consequential to the amendment made in the income-tax act, 1961 wlder clause 3(d) of the b111 clause 36 seeks to make certain amendments to the schedule to the wealth-tax act relating to rates of wealth-tax under the amendment in sul>-clause (a), the ~ schedule of ordinary wealth-tax applicable in the case of indi viduals and inndu undlvlde<l familles will be as follows:- 1 per cent ••• 2 per cent ••• 3 per o8nt ••• 8 per cent on the flrst hs5, 00 000 of net wealth on the next ra 5, 00, 000 of net wealth on the next 88500,000 of net wealth on the balance of the net wealth lt, net wealth in excess of bs15 00 000     however, no wealth-tax will be payable in a case where the net wealth does not exceed the following l1mjt:-(1) in the caee of an individual (u) in the case of a hindu undivided family    1,00000 2,00,000 further, it is bel provided by w8¥ of marginal rellef that the wealth-tax payable lha11, in no case exceed 10 per cent of the amount by whim tile net wealth exeeeds the ibove-mentioned exemption limit the amendment in 8u1>-clause (b) seeks to make certain couequential cba-es in the schedule the above amendmedts will come into foroe with effect from 1st april, 19'12 and will accordingly apply in relation to the assessment year 1972-73 and subsequent aaeessment years clause 37 seeks to make certain amendments in the gift-tax act 1958 sub-clause <a) seeks to amend the definition of "gift" in cla  e (xu) of section 2 this amendment is consequential to the amendment of section 4 of the gift-tax act under sul>-clause (b) sub-clause (b) seeks to amend section 4 of the gift-tax kt under which certaln transfers are deemed to be gifts for the purposes of that act under the amendment, in a case where a member of a hindu undivided family oonverts his self-acquired properw 1nto joint family property, he shall be deemed to have made in favour of the family a ,1ft of so much of that property as the other members of tjae family would be entitled to l! a partition of that property had taken place immedluely after 8uch conversion 0,," the property this amendmeat ww take effect from 1st april, 1972 andwlll aooordinit" tpply in relation to the assesment year 1972-73 and subaequent years  su~clause (c) seek to make certain amendments to _ctlon 6 of tbe gift-tax act, relating to exemption in respect of certain gifts theee liiilendments are of a clarl(yldg nature and will take effect retrospectively from 1st april, 1968 su~clause (d) seeks to amend, with effect from 1st january, 1972, beetlon 33 of the gift-tax act, relating to tj$ mode of recovery the amendment is consequential to the amendment made in the incom~tax act, 1961 under clause 3(d) of the blll sub-clause (e) seeks to amend section 45 of the gift-tax act which inter alia, excludes from the purview of the gift-tax act any gifts made by an institution or fund the income whereof is exempt from incom~tax under section 11 of the income-tax act under the amendment, a charitable institution or fund wlll not forfeit exemption from gift-tax in  respect of dfts made by it merely because (a) subsequent to the gift, any income of the ,  institution or fund becomes chargeable to income-tax due to non-compllance with any of the provisions of section 11 of the income-tax act, relating to the application of income during the accounting year itself; or (b) the institution or fund forfeits exemption in respect of a part of its income which arises from investments made in a concern in which the founder of the institution or fund or his relatives have a substantial interes':, where the aggregate of the funds invested by the institution or fund in such a concern does not exceed 5 per cent of the capital of that concern the amendment shall be deemed to have come into force with effect from 1st april, 1971 and will accordingly apply in relation to assessments for the assessment year 1971-72 and subsequent years clause 38 seeks to make certain amendments to the coms-nies (profits) surtax act, 1964 &1~clause (a) seeks to amend section 18 of that act relating to the appllcatloo of certain provisions of the income-tax act for purposes of surtax the amendment 18 consequential to the insertion of a new clause (43b) in section 2 of the income-tax act under clause 3(d) of the bill this amendment will come into force on 1st january, 1972 sub-clause (b) seeks to substitute a new schedule for the existing third schedule to the companies (profits) &1rtax act, which sets out the rates of surtax under the schedule as substituted, surtax will be charged on the amount by which the chargeable profits exceed the amount of the statutory deduction at the following rates:-(1) on the amount of such excess up to 5 per cent of the amount of the capital as computed in accordance with the second schedule 25 per cent 30 per cent (11) on the balance of the excess 1b1s amendment will come into force with effect from the 1st april, 1972 and wlll aocording1y app1y for the assessment year 1972-73 and subsequent assessment years clause 39 read with the second schedule, seeks to raise the rates of basic import duty on-(i) horses of a value exceeding ra 2, 000 each; (11) ivory unmanufactured; (111) cloves; (iv) rubber tyres and tubes for motor vehicles; (v) staple fibre; (vi) asbestos manufactures, not otherwise specified; (vu) batteries for motor vehicles and parts thereof; (vl11) motor cycles and motor scooters and parts and accessories thereof; (ix) motor omnibuses imported completely assembled; (x) carriages and carts which are not mechanically propelled, not otherwise specified, and parts and accessories thereof; (xl) articles and parts thereof adapted for use as parts and accessories of motor vehicles other than motor cycles and motor scooters; (xl1) certain articles of stores on board a vessel or aircraft  clause 40-alb-clause (i) seeks to levy excise duty on glucose and dextrose preparations sub-clause (11) seeks to levy excise duty on maida sub-clause (111) seeks to raise the rate of duty on motor spirit sub-clause (iv) seeks to raise the duty on mineral turpentine oil and to cruue the basis of assessment of uquefied petroleum gas from value to weight sub-clause (v) seeks to levy excise duty on compounded lubricating oils and greases and on calcined coke sub-clause (vi) seeks to levy excise duty on hydrogen peroxide, potasslmn permanganate, potassimn and sodimn bichromates and bicarbonate of soda alb-clause (vii) seeks to levy excise duty on l1pstlcks, perfumed hair oils and shampoos alb-clause (vlll) seeks to raise the rate of duty on soap manufactured with the aid of power, other than household and laundry soap sub-clause (lx) seeks to amend the: item relating to artificial and synthetic resins and plastics with a view towards clarification and to raise the rate of duty on polyurethane foam and articles made of polyurethane foam sub-clause (x) seeks to raise the rate of duty on latex foam sponge and unhardened plates, sheets and strips of rubber, whether vulcanised or not, and whether combined with any textile material or otherwise sub-clause (xl) seeks to levy excise duty on linoleum, ready-made garments and typew rlter ribbons sub-cl8wie (xli) seeks to raise the rate of dufiy on sheet glass and plate glass, and glassware ool otherwise specified sub-clause (xlu) seeks to raise the rate of duty on tableware and certain nonspecified articles of chlnaware and porcelalnware sub-clause (xlv) seeks to levy excise duty on mosaic tiles sub-clause (xv) seeks to amend the item relating to aluminium the amendment is of a clarifying nature sub-clause (xvi) seeks to levy excise duty on motor starters sub-clause (xvii) seeks to raise the rate of duty on electric lighting bulbs and fiourescent llghtlng tubes sub-clause (xvul) seeks to raise the rate of duty on electric fans other than those of a diameter not exceeding 406 centimetres and to levy excise duty on electric fans designed for use in an industrial system sub-clause (xix) seeks to levy excise duty on electrlci\), supply meters sub-clause (xx) seeks to levy excise duty on parts and accessories of motor vehicles and on forklift and platform trucks sub-clause (xxi) seeks to levy excise duty on cinematograph projectors and photographic cameras sub-clause (xxii) seeks to raise the rates of duty on crown corks and on pilfer proof caps sub-clause (xxiii) seeks to omit the rem relating to sparking plugs consequent on the new item referred to in sub-clause (xx) sub-clause (xxi v) seeks to amend the item relating to metal containers the amendment is of a clarifying nature 81b-clause (xxv) seeks to levy excise duty on rolling bearings, weldi~ electrodes, coated abrasives and grinding wheels bolts and nuts, and screws, zip or sude fasteners pressure cookers, vacuum flasks playing cards camphor mentbol, electric insulaung tapes and adhesive tapes not otherwise specified clause 41-sub-clause (1) seeks to raise the ceiling rate of iddltional excise duty (in lieu of sales tax) on cigarettes sub-clause (11) seeks to raise the rate of additional excise duty (in lieu of sales tax) on cotton fabrics clause 42 seeks to raise the oelling rate of additional excise duty on refined dlesel oils and vaporizing 011 chapter vii (containing clauses 43 to 51) jr0vldes for the levy of foreign travel tax in the case of international journeys by any ship or aircraft clause 44 defines "carrier:', "fare", "international journey", "passenger" and certain other expressions used in the chapter clause 45 provides for the levy and collection of the tax the tax wlll be levied in respect of every international journey by a passenger leaving for, or arriving from, a place abroad, where the fare for such journey is paid or is payable in lddlan currency the tax is to be levied at the rate of twenty per cent of the fare for such journey the tax is to be collected by the carriers undertaking the carriage of the passengers as an addition to the fare payable by them and paid to the central government clause 46 confers powers on the central government to grant exemptions (total or partial) from the payment of foreign travel tax clause 47 provides for penalties and adjudication of penalties the other clauses of the chapter deal with incidental and surplemental matters including the power of the central government to make rules and of the central board of excise and customs to make regulations clause 52 seeks to amend the first schedule to the indian post office act, 1898 with a view to increasing the postage rates for parcels clause 53 seeks to &medii section 30 of the deposit insurance corporation act, 1961 the effect of this amendmedt will be that the deposit insurance corporation will be exempted from tax on itel income for a further period of five accounting years from its accounting year commencing on the 1st january, 1972 clause 54 seeks to exempt from tax the income of the housing and urban development finance corporation private limited which is registered as a company under the companies act and is wholly owned by the government this exemption w1l1 apply for purposes of income-tax and surtax and w1l1 cover the income of the corporation for the 10 accounting years commencing from its accounting year which is the previous year for the assessment year 1971-72 clause 55 seeks to repeal section 2 of the finance act, 1971  final«: ial memorandum income-tax and other direct taxeswith a view to expeditious disposal of appeals against orders of tax recovery officers, it is proposed to vest the jurisdiction in respect of such appeals in departmental tax recovery commissloners accordingly clause 3(d) of the blll seeks to insert a new definition of "tax recovery commissioner" in section 2 of the income-tax act under this definition, commissioners of income-tax and assistant commissioners of income-tax may be authorised by the central government to exercise the functiodsof tax recovery commissioners 'l11e same officers wlll also function as tax recovery commissioners for purposes of the wealth-tax act, 1957 (vide clause 35 of the blll), the gift-tax act, 1958 !vlde elause 37(d) of the bqv and the companles (profits) surtax act, 1964 lvid';-clsuse 38(a) of the bi!!t as a result of this, the work-load with the commissioners of income-tax will increase to some extent to cope with this, for the present, it is envisaged that five additional posts of commissioners of income-tax will be needed in the existing scale of rs180o-100-200o-125/2-2250 the expenditure on this account, together with that on complementary staff and incidental expenses on administration, is estimated at rs5,20,ooo for a full year as indicated below since, however, the intention is that tlle tax be 00 very commissioners w1ll take up their positions with effect from 1st january, 1972,the additional expenditure during the current financial year wlll be of the order of rs 86, 667, ie, 1/6th of the expenditure for a full year no of annual posts expenditure ;c;;;;o;;;s;;;t __ _ rs rs a recurring expenditure l officers 27,768 8,496 1,38,840 42,480 5 5 commissioners of inoome-tax income-tax officers (headquarters) n staff 5 5 5 15 10 7,536 5,508 3,588 3,588 3,288 37,680 27,540 17,940 53,820 32,880 supervisors (grade ii) stenographers (sentor grade) stenographers (junior grade) upper division clerks lower division clerks m incidental expenses 1,29,480 incidental expenses ieluding class iv staff  b non-recurring expenses35,000 furniture, office equlpment,etc 515660 520000 total or say  indirect taxesclause 40 seeks to levy new excise duties on a number of articles suoh as oompounded lubrioatlog oils and greases, maida, ready-made garments, motor vehiole ibrts, rollldg bearldgs zip fasteners, mosaic t11es, pressure cookers, etc albrt from these new levies, the enlargement of the tariff descriptions in respect of certain existing items like chemicals, electric fans, cosmetics, etc will bring in more factories under excise coverage withdrawal of exemptions in the case of traotors for agrioultural purposes, gales, etc,w1l1 also brldg in many units lato the dutiable sector these new levies and amendments made in the existing tariff and withdrawals of exemptions, will necessitate employment of additional staff not only in the field formations, but also in the statistics and intelligence branch (central excise), the directorate of inspection (central excise), the directorate of drawback, the directorate of tax research and the secretariat following this expansion in the coverage of central excise tariff it will be necessary-| (a)                                 | to strengthen    | the                    | higher          | supervision      | over                      | tariff     | classification    ||-------------------------------------|------------------|------------------------|-----------------|------------------|---------------------------|------------|-------------------|| and valuation of goods              | in               | the                    | collectorates   | of               | central                   | excise     |                   || where a                             | larger           | number                 | of              | staff            | will have                 | to         | be                || the executive                      |                  |                        |                 |                  |                           |            |                   || ministerial                         | as               | well                   | as              | higher           | supervisory               |            |                   || grades                              | and              | this                   | would involve   | an               | additiolbl expenditure of | ••••       | rs               || (b)                                 |                  |                        |                 |                  |                           |            |                   || rs                                 | o               | 62 lakhs               |                 |                  |                           |            |                   || to keep a                           | close            | watch on the           | trends          | and              | patterns                  |            |                   || of                                  |                  |                        |                 |                  |                           |            |                   || pro-                                |                  |                        |                 |                  |                           |            |                   || duction, consumption                | and              | price                  | movement of new | excisable        |                           |            |                   || goods which will                    | necessitate      | augmentation           |                 |                  |                           |            |                   || of                                  |                  |                        |                 |                  |                           |            |                   || the                                 | statistics       |                        |                 |                  |                           |            |                   || add                                 |                  |                        |                 |                  |                           |            |                   || intelligence                        | branch           | (central               | excise)         | in               | exeoutive and            |            |                   || ministerial                         | grades           | and                    | this            | would involve    | an                        | additlolbl |                   || expenditure of                      |                  |                        |                 |                  |                           |            |                   ||                                     |                  |                        |                 |                  |                           |            |                   || (c)                                 |                  |                        |                 |                  |                           |            |                   || to strengthen the regional units of |                  |                        |                 |                  |                           |            |                   || the                                 | directorate      | of                     |                 |                  |                           |            |                   || inspection (central                 | excise)          | and                    | its             | headquarters     | with a                    |            |                   || rs                                 |                  |                        |                 |                  |                           |            |                   || o                                  | 93               |                        |                 |                  |                           |            |                   || lakhs                               |                  |                        |                 |                  |                           |            |                   || view                                | to               | deal                   | more            | effectively with | the                       | procedural | problems          || arising                             | out of new       | levies                 | and             | this             | would involve             | an         | additiolbl        || expenditure of                      |                  |                        |                 |                  |                           |            |                   || (d)                                 |                  |                        |                 |                  |                           |            |                   || to                                  | provide the      | necessary              | number          | of               | officers                  | and        | staff             || secretariat                         | of the board and | the                    | ministry        | including the    |                           |            |                   || directorates                        | of drawback      | and                    | tax             | research         | for                       | deauog     |                   || with                               | increased        | work                   | arisldg         | out of           | the                       | new        | levies            || would                               |                  |                        |                 |                  |                           |            |                   || involve                             | an               | additional expenditure |                 |                  |                           |            |                   || of                                  |                  |                        |                 |                  |                           |            |                   || rs245                             | lakhs            |                        |                 |                  |                           |            |                   || ----                                |                  |                        |                 |                  |                           |            |                   || rs                                 | 41              | 00                     | lakhs           |                  |                           |            |                   || total                               | recurriog        | expenditure            |                 |                  |                           |            |                   |besides the above items of annual recurring expenditure, the following non-recurring expenditure wlll also have to be incurred:-|                | rs200       | lakhs       ||----------------|---------------|-------------|| (a)            | incidental    | expenses,   || contingencies, | etc          |             || rs200        | lakhs         |             || (b)            |               |             || furniture,     | office        |             || equipment      |               |             || ,etc           | -             |             || total          | non-reourring | expenditure || rs4600       | lakhs         |             || grand total    |               |             | poreiln travel taxso far as the enforcement of the provisions in chapter vb relating to foreign travel tax is conoerned, it is proposed to utll1se the existing machinery of the customs and central excise departments for the purpose however, it will be necessary to incur expeml1ture towards payment of collection charges to the carriers, which w1ll be determined by rules made under sub-clause (2)(a) of clause 49 of the bul, in this behalf, and laid before parliament in due course the exact expenditure to be incurred (which is of a recurring nature) cannot be estimated at this stage but it i8 not likely to exceed rss lakhs in a year the provisions do not involve any expedditure of a noll-recurring nature  memorandum regarding delegated legislationclause 3(a) seeks to substitute a new clause for existing clause (17) of section 2 of the income-tax act, relating to definition of "company:' under sub-clause (iv) of clause (17) as substituted, the central board of direct taxes wfll have the power to declare by general or special order that any institution, asaociatton or body, whether incorporated or not, and whether indian or non-indian will be treated as a company for the purposes of the income-tax act and this power, which is ava:llable to the board under the existing clause (17), is now being specifically made exercisable even in relation to any such past assessment year or years as may be specified in the declaration the declaration is ordinarily made only at tile request of the institution,association or body and in the interest of uniformity of treatment, it is necessary to make the power exercisable even in relation to a past u8es8-ment year, clause 3(b) seeks to amend clause (18) of section 2 of the income-tax act relating to the definition of the term "oompany in-which the public are substantially intere8ted" under new sub-clause (ab) of the said clause (18), the central board of direct tubs ww have the power to direct that a company having no share capital shall be treated as a company in which the public are substantially interested such direcuon wm be made by the board having regard to the objects of the company the nature add composition of it8 membership and other relevant considerations any such direction may be made by the board even in respect of a past assessment year this is necessary to remove practical difficulties in the assessment of companies having no share capital the power conferred on the board has to be exercised on the basis of the guidelines 1ndicaied in the provision clause 19 seeks to amend section 80mm of the income-tax act, relating to the deduction in the case of an indian company in respect of royalty etc, received from an indian concern so as to enlarge the scope of that section to cover resident assessees other than companies the deduction under the amended section wfll be admissible only where the accounts of the non-corporate assessee for the relevant previous year have been audited by a chartered accountant or other accountant who is qualified to audit the aocounts of companies and the report of such audit in a form to be prescribed by rules is furnished along with the return of inoome clause 21 seeks to substitute a new section for section 800 of the income-t3x act, relating to deduction in respect of royalty etc •• received by an indian company from a foreign company in consideration for ~oviding technical know-how or technical services as under seotion 80mm referred to above the deduction under seotion 800 is also being extended to resident assessees other than companies subject to the condition that the accounts of such assessee for the relevlllt previous year are audited by a ohartered aocountant or other accowltant who is qualified to audit the accounts of companies and the report of such audit in a form to be prescribed by rules is furnished along with the return of income clause 27 seeks to amend section 230a of the income-tax act which prohibits the registration of transfer of any immovable property unless a certificate by the income-tax officer has been produoed before the registering authority to the effect that the transferor has paid or made satisfactory provision for payment of all existing liab1l1ties udder certain direct &axes e  ctments under sub-clause (e) of thi8 olause, a new sub-8ection (3) i8 proposed to be in8erted to oodfer power on the central board of direct taxes to exempt for reasons to be tecorded in writinc, any in8titutlon, a88oclation or body or any class of iilsututlons, associations or bodies from the requirement of obtaining a tax clearance certificate under this section the power of exemption under the proposed new sub-section (3) can be exerclsed only for proper reasons to be recorded in writing clause 29 seeks to amend that part of the rules contained in the second schedule to the income-tax act which relate to appeals against orders of tax recovery officers the amendments are designed to provide for the exercise of powers under the rules by a commissioner or assistant commls810ner of income-tax who is authorised under new clause (43b) of section 2 of the income-tax act to perform the functions of a tax recovery commissioner clause 29(d) seeks to amend rule 92 of the rules contained in the second schedule so as to empower the board to nake rules regulating the procedure to be followed by tax recovery commissioners and the areas within which they may exercise jurisdiction (n chapter vu relating to foreign travel tax clause 49 empowers the central government to make rules to carry out the purpo8es of the chapter the important matters in respect of which 8uch rules may be made relate, inter alta to the as8e8sment and collection of the tax includlng the charge8 for collection payable to carriers the specification of authorities competeat to function udde r the chapter, the procedure for adjudication of penalties, the recovery of amounts due by way of tax, the powers of authorities in respect of entry inspection add search and appeal and revision in the case of orders made under the chapter clause 50 confers power on the central board of excise and customs to make regulations consistent with the provisions of chapter vu and the rules made thereunder ld respect of returns and other particulars and idformation to de furnished by carriers and supplemental matters clause 48 empowers the central govemment to issue exemption notifications in respect of any class of passengers or any category or categories of passengers under such class, as well as lddivid_1 cases of passengers in the public interest or, as the case may be, having regard to the spec1bi circumstances of any passenger and the purpose of his journey the aforesaid matters are all matters of procedure and admlniatratlve detail which it is not practicable to provide ill the bill itself moreover the powers conferred are ldtended to provide for a certain amount of fiex1biuty the deleptlon of legislative power is of a dormal character  billto give effect to the financial proposals of the central government for the ftnanc1al year 1971-72 and to provide for the levy of foreign travel tax ( shri yb chili, vutca mglltri mil'"'' of fil_' e) 