 the finance bill, 1961(as introduced in loic sabha on 28th february, 1961)  the finance bill, 1961 (as introduced in lok sabha)1 page ¥i:, line 1,-for "ag ement" ~ "agreement" 2 page 13, line 37,-for "1 tmes" ~ "i tems" 3 page 15, line 23,-~ at the end 4 page 18, line 14,-ii" , for "nominor" read "no minor" 5 page 18, line 24,-~ at the end "11 , 6 - page 24, line 39,-for "whieh" ~ "which" 7 page 24, line 46,-for "view" ~ "view" 8 correct line numbers on pages 2 to 6, 9 to 12, 14, 25, 26, 29, 31 and 33 new delhi·  » march 4, 196~1~~~~~~~ phalguna 13, 1882 (saka)  bill no 10 of 1961 the finance bill, 1961 (as introduced in lok sabha) abill to give effect to the financial proposals of the central government for the financial year 1961-62 be it enacted by parliamellt in the twelfth year of the republic of india as follows:-1 (1) this act may be called the finance act, 1961 short title and com-(2) save as otherwise provided in this act, sections 3 to 10 inclu- mencemedt 5 live shall be deemed to have come into force on the first day of april, 1961 2 (1) subject to the provisions of sub-sections (2), (3) and (4), income-tu' for the year beginning on the 1st day of april, 1961,-and super-- (a) income-tax shall be charged at the rates specified in tax 10 part i of the first schedule, and, in the cases to which paragraphs a, band c of that part apply, shall be increased by a surcharge for purposes of the union and a special surcharge, calculated in either case i~ the manner provided therein; and is 11 of 1822 - 20 (b) super-tax shall, for the purposes of section 55 of the indian income-tax act, 1922 (hereinafter referred to as the income-tax act), be charged at the rates specified in part n of the first schedule, and, in the cases to which paragraphs a, b and c of that part apply, shall be increased by a surcharge for purposes of the union and a special surcharge, calculated in either case in the manner provided therein (2) in making any assessment for the year ending on the 31st day of march, 1962,-(a) where the total income of an assessee, not being a company, includes any income chargeable under the head "salaries", the income-tax payable by the assessee on that part of his total income which consists of such inclusion shall be an amount bearing to the total amount of income-tax payable according to the rates applicable under the operation of the finance act, 1960, on his total income the same proportion as the 5 amount of such inclusion qears to his total income; (b) where the total income of an assessee, not being a com-11 of 1980 pany, includes any income chargeable under the head "salaries" on which super-tax has been or might have been deducted under the provisions of sub-section (2) of section 18 of the income-tax 10 act, the super-tax payable by the assessee on that portion of his total income which consists of such inclusion shall be an amount bearing to the total amount of super-tax payable according to the rates applicable under the operation of the finance act, 1960, on his total income the same proportion as the amount of such 15 inclusion bears to his total income 13 of 1880 (3) in making any assessment for the year ending on the 31st day of march, 1962, where the total income of a company, other than the life insurance corporation of india established under the life insurance corporation act, 1956, includes any profits and gaim from 20 life insurance business, the super-tax payable by it shan be the 31 of 1958-aggregate of the tax calculated-(i) on the amount of profits and gains from life insurance business so included, at the rate applicable to the life 1ns1u'!lee corporation of india in accordance with paragraph e of part ii 25 of the first schedule; and (ii) on the remaining part of its total income, at the rate applicable to the company on its total income - (4) in cases to which section 17 of the income-tax act applies the tax chargeable shall be determined as provided in that section, 30 and with reference to the rates imposed by sub-section (1) (5) in cases in, which tax has to be deducted under section 18 of the income-tax act at the prescribed rates, the deduction shall be made at the rates specified in part iii of the first schedule (6) for the purposes of this section, and of the rates of tax 35 imposed thereby, the expression "total income" means total income as determined for the purposes of income-tax or super-tax, as the - case may be, in accordance with the provisions of the income-tax act, and the expression "earned income" has th~ meanidi l18igned to it in clause (6aa) of section 2 of that act 40 s t i 3 in section 4 of the income-tax act, in sub-section (3) ,-amendment  of section 4-(i) ~fter clause namely:-(ii), the following clause shall be inserted, s ",(ha) any income of an association or institution established in india having as its object the control, supervision, regulation or encouragement in india of the games of cricket, hockey, football, tennis or such other games or i!ports as the central government may specify in this ibehalf from time to time by notification in the ofticial 10 g~ette: provided that-(i) the association or institution applies its income, or accumulates it for application, solely to the objects for which it is established; is (ii) no part of the income of the association or institution is distributed in any manner to its members except as grants to any association or institution affiliated to it; and (iii) the association or institution is, for the time 20 being, approved for the purpose of this clause by the central government by general or special order"; (ii) in clause (riva) , for the second provis'), the following provisos shall be inserted, namely:-'provided further that in the case of a person referred 2s to in this clause whose contract of service was approved by the central government before the commencement of his - service, this clause shan have effect as if for the words "during the financial year in which he arrived in india and the financial year next following", the words "during the thirty-six months commencing from the date of his arrival in india" had been substituted and as if the proviso immediately preceding had been omitted: provided also that where a person referred to in the pro-35 - 40 ~sp imm~iately preceding continues to remain in employ-,ment  in india after the expiry of the thirty-six months commencing from the date of his arrival in india and the tax on his income chargeable under the head "salaries" is paid by the employer to the central government, the tax so paid by the employer for a period not exceeding twenty-four ,months following the expiry of the said thirty-six months shall not be included in his total income'; (iii) in clause (xvi), after the words "international bank for reconstruction and development", the words "or under a loan - a~~ement between the central government and the development loan fund of the united states of america," shall be inserted and after the words "under a loan agreement with the said bank", the words "or fund, as the case may be," shall be inserted s amendment of section 7 amendment or section 9 4 in section 7 of the income-tax act, in the proviso to explanation 2, after the words "a central, state or provincial act", the words, letters and figures "or any payment of retiring gratuity received after the 1st day of june, 1953 under the new pension code applicable to the members of the defence services" shall be inserted and shall be 10 deemed always to have been inserted 5 in section 9, in sub-section (2), after the third proviso, the following proviso and explanation shall be inserted, namely:-"provided further that in respect of a building the erection of which is begun and completed after the 1st day of april, 1961, the annual value for a period of three years from the date of such is completion shall be reduced by a sum equal to the aggregate of-(a) in respect of any residential unit (comprised in the building) whose annual value does not exceed six hundred rupees, by the amount thereof; and (b) in respect of any residential unit (comprised in the ~ building) whose annual value exceeds six hundred rupees, by an amount of six hundred rupees, so, however, that the income in respect of any residential unit shall in no case be a loss explanation-where a residential unit is in the occupation 2s of the owner for the purposes of his own residence, and the annual value thereof is computed in accordance with the first proviso, such computation will be made as if the fourth proviso had been omitted" i in section 10, in sub-section (2),-30 amendment of section 10 (i) in clause (vi), after the words "in the case of machinery or plant, to twenty per cent of the cost thereof to the assessee:" and before the proviso, the following paragraph shall be inserted, namely:-"and where the buildings have been newly erected after 3s the 31st day of march, 1961, such buildings being used solely" for the purpose of residence of persons employed in the business and drawing remuneration not exceeding two hundred rupees per mensem, a sum (which shall not be deductible in determining the written down value) equal to twenty per 40 cent of the actual cost of the building to the assessee in respect of the previous year of erection of the building:"; (ii) in clause (vib) ,-s (i) for sub-clause (i) and sub-clause (ii), the followin, aub-clauses shall be inserted, namely:-10 "(i) in the case of a ship acquired after the 31st day of december, 1957, forty per cent and in the case of a ship acquired before the 1st day of january, 1958, twentyfive per cent of the actual cost of the ship to the assessee; and (ii) in the case of machinery or plant installed before the 1st day of april, 1961, twenty-five per cent and in the case of machinery or plant installed after the 31st day of march, 1961, twenty per cent of the actual cost of the machinery or plant to the assessee"; (2) in the first proviso, after the words "any person other than the government", the words "or for any consideration not connected with any amalgamation or succession referred to in clause (vic)" shall be inserted; 20 (iii) after clause (vib) , the following clause shall be inserted, namely:-'(vic) (i) where in a scheme of amalgamation, a company (hereinafter in this sub-clause referred to as the prede-·cessor) sells or otherwise transfers to the company formed in pursuance of the predecessor's amalgamation with that company (hereinafter in this sub-clause referred to as the successor) any ship, machinery or plant in respect of which development rebate has been allowed to the predecessor under clause (vib) ,-30 35 (i) the successor shall continue to fulfil the conditions mentioned in the first proviso to clause (vib) in respect of the reserve created by the predecessor and in respect of the period within which such ship, machinery or plant shall not be sold or otherwise transferred and in default of any of these conditions, the provisions of subsection (11) of section 35 shall apply to the successor as it would have applied to the predecessor had it committed the default; - (2) the balance of development rebate, if any, still  outstanding to the predecessor in respect of such ship, machinery or plant shall be allowed to the successor in accordance with explanations i and ii of clause (vib) , so, however, that the total period for which the balance 5 of development rebate shall be carried forward in the assessments of the predecessor and the successor shall not exceed the period of eight years specified in explanation i to clause (vib) and the successor shall be treated as the assessee in respect of such ship, machinery or 10 plant lor the purposes of clause (vib) and this sub-clause; explanation-for the purposes of this sub-clause, "amalgamation" means the merger of two companies (each of which is hereinafter in this explanation referred to as the amalgamating company) to form one com- 15 pany (hereinafter in this explanation referred to as the amalgamated company) in such a manner that-(a) all the property of the amalgamating companies immediately before the amalgamation becomes the property of the amalgamated company by virtue 20 of the amalgamation; (b) all the liabilities of the amalgamating companies immediately before the amalgamation become the liabilities of the amalgamated company by virtue of the amalgamation; and 25 (c) all the shareholders of the amalg8lqating companies immediately before the amalgamation become shareholders of the amalgamated company by virtue of the amalgamation, otherwise than as a result of the acquisition of property 30 of one company by another company pursuant to the purchase of such property by the other company or as a re$ult of the distribution of such property to the other company after the winding up of the company; 1 of 195ft (ii) where a firm is succeeded to by a private company, as defined in the companies act, 1956, in the business carried 35 on by it as a result of which the firm sells or otherwise transfers to the private company any ship, machinery or plant, the provisions of sub-clause (i) of this clause shall, so far as may be, apply to the firm and the company; 40 e3:planatio7t-the provisions of this sub-clause shall apply only where-(a) all the property of the firm before the succession becomes the property of the company; s (b) all the liabilities of the firm immediately before the succession become the liabilities of the company; and (c) all the partners of the firm immediately before the succession become shareholders of the company;'; (iv) after clause (xiv), the following clause shall be insert-' 10 ed, namely:-"(xiva) in respect of any special reserve created by - financial corporation which is engaged in providing long term finance for industrial development in india, an amount not exceeding ten per cent of the total income carried to such is reserve account: provided that, the corporation is for the time being approved by the central government for the purposes of this clause: provided further that where the aggregate of the amounts 20 carried to such reserve account from time to time exceeds the paid-up share capital (excluding the amounts capitalised from reserves) of the corporatioo no allowance under this clause shall be made in respect of such excess;";  (v) in clause (xv), the following provisos shall be inserted, 25 namely:-"provided that no expenditure in the nature of entertain-- ment expenditure shall be allowed in the case of an assessee other than a company: provided further that in the case of a company, no expen-30 diture in the nature of entertainment expenditure shall be allowed which exceeds the aggregate amount computed as hereunder-3s  - (i) on the first rs 10,00,000 of the profits and gains of the business [computed before making any allowance under clause (vib) or in respect of entertainment expenditure] at the rate of 1 % or rs 5,000 whichever is higher (ii) on the next rs 40,00,000 of the profits and gains of the business (computed in the manner aforesaid) at the rate of f% s (iii) on the next rs 1,20,00,000 of the profits and gains of the business (computed in the manner aforesaid) at the rate of 1% 10 (iv) on the balance of the profits and gains of the business (computed in the manner aforesaid) nil"  '1 in section 15c of the income-tax act,-(a) in sub-section (1), after the word "undertaking" wherever it occurs, the w(\rds "or hotel" shall be inserted; (b) after sub-section (2), the following sub-section shall be is inserted, namely:-"(2a) this section applies to any hotel which-(a) starts functioning on or after the first day of april, 1961 and is not formed by the splitting up, or the reconstruction of business already in existence or by the 2c transfer to , new business of building, machinery or plant previously used in any other busines,s; (b) is owned and run by a company registered in the taxable territories with a paid-up capital of not less than five hundred thousand rupees; 25 o (c) is run in premises which are owned by the comp8!\y; (d) has such number and types of guest rooms and provides such amenities as may be prescribed, having regard to the population and the tourist importance of 30 the place in which the hotel is located; and (e) is for the time being approved for the purposes of this sub-section by the central government"; (e) in sub-sections (3) and (5), after the woms "industrial undertaking", the words "or a hotel" shall be inserted; 3' (d) in sub-section (4),-(i) after the words "industrial undertaldng", the wozu : "or a hotel" shall be inserted; (ii) the following explanatio7\ shall be inserted, namely:-s "explanation-the amount of dividend in respect of which the tax is not payable under this sub-section shall be computed in accordance with such rules as may be made in this behalf by the central board of revenue"; (e) in sub-section (6), for the words "shall apply", the words "shall, in relation to an industrial undertaking, apply" shall be substituted; 10 (1) after sub-section (6), the following sub-section shall be inserted, namely:-"(7) the provisions of this section shall, in relation to a hotel, apply to the assessment for the financial year next following the previous year in which the hotel start is functioning and for the four assessments immediately succeeding"  8 in section 23a of the income-tax act, in sub-section (1) ,- ~~ (a) in clause (ii), the word "or" shall be added at the end; 23a and 20 (b) after clause (ii), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 1960, namely:-- "(iii) that at least 75 per cent of the share capital of the company is throughout the previous year beneficially held by an institution or fund established in the taxable territories for a charitable purpose the income whereof is exempt under clause (i) of sub-section (3) of section 4;"  • in section 3'5 of the income-tax act, in sub-section (11) ,-amencimedi (a) in clause (i), after the words "other than the govern- of section 3', 30 ment", the words "or for any consideration not connected with any amalgamation or succession referred to in clause (vic) of sub-section (2) of section 10", shall be inserted; - 3s (b) the following explanation shaube inserted, namely:-"explanatton-for the purposes of this sub-section, a successor referred to in sub-clause (i) or sub-clause (ii) of clause (vic) of sub-section (2) of section 10 shall be deemed to be the assessee even in respect of an allowance by way of development rebate made to the predecessor, and any tax ~)'~  - restlltmg from the recomputation of the total income for any previous year of the predecessor shall be payable by the successor  10 in section 56a of the income-tax act, in clause (i) of sub-section (1), after item (20), the following item shall be inserted, namely:-s amendment of section ha "(21) refractories;" amendment of arl32 of 11134 11 the indian tariff act, 1934 (hereinafter referred to 'as the tariff act), shall be amended in the manner specified in 'the second schedule 12 in the indian tariff (amendment) act, 1949, in sections 4 and 10 5, for the 'figures "1961", the figures 4'1962" shall be substituted amendment of act 1 of iimii 13 tn the first schedllle to the central excises and salt act, 19m,-amendment of act 1 of 1944 (a) in item no2, for the entry in the third column, the entry "fifty-five rupees per quintal" shall be substituted; is (b) in item no 4,-'(1) under "i unmanufactured tobacco-"-() for sub-item (i), the following sub-item shall be substituted, namely:-"(i) ifftue cured and used in the manufacture of cigarettes tworwees and fifty naye paise" j (ia) in sul>-item (4), for the entry in the third column, the entry "two rupees" shall be submituted; (m) in sub-item (s), for the entry in the third column, the entry "ode rupee and fourteen naye paise"shall be substituted; (iv) in sub-item (8), for the entry in the third column, the entry "twenty-two naye paise" shall be substituted j (2) under "ii manufactured tdbacco-"-35 ('l for sub-item (i), the following sub-item shall be substituted, namely:-"(i) clprs and cheroots of which ,per hundred the value-40 | (ia)                         | exceeds      | rs    ||------------------------------|--------------|--------|| is                           |              |        || a hundred, but               | nine rupeee |        || does not                     |              |        || exceed                       | rs          |        || 2s                           |              |        || a                            |              |        || hundred                     |              |        || (ii,)                        |              |        || exceeds                      |              |        || rs                          |              |        || s                            |              |        || a hundred, but               |              |        || three                        |              |        || rupees                      |              |        || does                         | not          | exceed || rs is                       |              |        || a                            |              |        || hundred                     |              |        || (iv)                         |              |        || exceeds                      |              |        || rs                          |              |        || i                            |              |        || '2s                          |              |        || a hundred, seventy-five naye |              |        || but                          |              |        || does                         | not          | exceed || rs                          |              |        || s                            |              |        || a                            | paise";     |        || hundred                     |              |        |10 (ii) in sub-item (2),-(a) for sub-items (2) (i), (2) (ii), (2) (iii) and (2) (iv), the following shall be substituted, namely:-"(i) exceeds rb 35 a thousand is (i) exceeds rs 30 a thousand, but does not exceed rs 35 a thousand 20 twenty-three rupees and seventy-five naye paise twelve rupees and seventy-five naye paise eleven rupees and fifty naye paise" j (ii) exceeds rs 25 a thousand, but docs not exceed rs 30 a thousand (b) sub-items (2)(v), (2)(vi), (2)(vii), (2) (viii) and (2) (ix) shall, respectively, be re-numbered as 25 sub-item~ (2)(iv), (2)(v), (2)(vi), (2)(vh) and (2) (viii); (c) in item no7, for the entry in the third column, the entry "ninety-five rupees and fifty-five naye paise per kilolitre at ju~een degrees of centigrade thermometer" shall be substitut~d;   (4,) in lted! no9, for the entry in the third column, the entry "sixteen per cent ad valorem plus ninety-two rupees and ten ;o8ye paise per metric tonne" shall be substituted; (8) in item no 13, for the entry in the third column, the ~ "'l'wen~y rupees per quintal" shall be substituted; 3s (i) in itejxj no 14, for the entries in the third column against each of the sub-items specified below, the following entries as are set out in the corresponding column against that sub-item ihall be substituted, namely:-' ,  " i (~) (a) nineteen rupees and seventy-five naye paise per quintal seventy naye paise per kilosram (n) (2) seventeen rupees and twentyfive naye paise per quintal (3) (i) seventeen rupees and twenty-five naye paise per quintal s (i) twenty-nine rupees and fifty naye paise per quintal (ii, forty-two naye paise per litre ninety-eight naye paise per live (iv) 10 (4) (, seventy naye paise per kilogram (ia) seventeen rupees and twentyfive naye paise per quintal (ii) fifty-six naye paise per litre (s) seventeen rupees and twenty- 15 five naye paise per quintal, if sold by wetght; fifty-six naye paise per litre, if sold by volume 20 ii twenty-eight naye paise per litre eighteen naye paise per litre iii () one rupee and forty naye paise per litre 25 (is) fifty naye paise per kilogram, if sold by weight; eighty-five naye paise per litre, if sold by volume ; (g) after item no 14, the following items shall be inserted, name1y:- 30 "j4-\ soda ash two rupees per quintal j4b caustic soda-| ()      | if            | in    | a solid form    ||----------|---------------|-------|-----------------|| (i,     | ifin          |       |                 || lye      |               |       |                 || four     | rupees        | per   | quintal        || four     | rupees        | per   | quintal         || basis    |               |       |                 || ~;      |               |       |                 || of       | hundred       | per   | cent 35        || strength |               |       |                 || of       | caustic soda |       |                 || 14c      | glycerine    | seventeen rupees    | per     | quintal    ||-----------|---------------|---------------------|---------|-------------|| 14d      |               |                     |         |             || dyes      | deriveq       | from                | fifteen | per         || ad        |               |                     |         |             || fjalorem |               |                     |         |             || coal      | tar           | and                 | coal    |             || tar       | derivatives,  |                     |         |             || s         |               |                     |         |             || used      | in            | any                 | dyeing  |             || process,  | all           | sorts              |         |             || i4b      |               |                     |         |             || patent    | or            | proprie-            | ten     | per cent   || ad        |               |                     |         |             || fjalorem |               |                     |         |             || tary      | medicines     |                     |         |             || as        |               |                     |         |             || defined   | in            | clause              |         |             || 10        |               |                     |         |             || (d)       |               |                     |         |             || of        | section       |                     |         |             || 3         |               |                     |         |             || of        |               |                     |         |             || the       | drugs         | act,                | 1940    |             || (23       |               |                     |         |             || of        | 1940),        | not                 | con-    |             || taining   | alcohol      |                     |         |             |14f cosmetics and toi- twenty-five per cent ad flalorim!' j let preparations, namely:-() face cream and snow (il) face powder (iii) talcum powder 20 (ifl) hair lotion, cream and pomade (h) after item no is, under the heading chemical, the followidg items shall be inserted, namely:-icisa plastics, all sorts, twenty per cent ad flalorim namely:-f, | ()'                     | moulding powders,    ||--------------------------|----------------------|| gra-                     |                      || nules                    | and                  || mosetting and thenno-    |                      || plastic)                |                      || (il)                     |                      || polyethylene films, lay- |                      || battubingsand pvc     |                      || sheets (that is to say,  |                      || polyvinyl                | chloride             || sheets)                 |                      || isb                     |                      || cellophane              | twenty               || ad                       |                      || fjalorem" ;             |                      || 3s                       |                      || -                        |                      |() in item no 17, for the entries in the third column against subitmes (i), (2), (4), (5), (6), (7), (8), (9) and (10), the entries "fifty naye paise per kilogram", "one rupee per kilogram", "thirty-five naye paise per kilogram", "fifteen naye paise per kilogram", "thirty-five naye paise per kilogram", "thirty-five naye paise per kilogram", "thirty-five naye paise per kilogram" "fifty naye paise per kilogram" and "fifty naye paise per kilogram" shall, respectively, be substituted; u) after item no 18, the following items shall be inserted, !18idely:-'isa cotton twist, yarn and thread, all sorts, in or in relation to the manufacture of s which any process is ordinarily carried on with the aid' of power-(i) of 3s or more counts ; fifteen naye paise per kilogram (2) of less than 3s counts ten naye paise per idiogram 10 explanation-for multiple-fold yam, "count" means the count of the basic single yam  is 18b woollen yarn, all sorts including knitring wool, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power-(i) worsted yam; ten per cent ad valorem (2) others five per cent ad valorem'; (k) after item no 23, the following items shall be inserted, namely:-2s "23a glass and glass-ware-- (i) sheet glass and plate ten per cent ad valorem glass i' (2) laboratory glassware five per cent ad valorem (3) glass shells, glass ten per cent lid valor"" ~bes and chimneys for ps and lanterns 30 (4) other fclassware includ-fifteen pet cent ad valor"" ing tab eware 23b chinaw arb and porcelainware, all sorts,-3s (i) tableware fifteen per cent ad valor", (2) sanitaryware fifteen per cent ad ",alor"" (3) glazed tiles ten per cent ad vawr"'" (4) not otherwise specified ten per cent ad wikw-" ; (l) u\:er item no 26, the following items shall be insertod bameiy: -s "z6a copper and copper alloys containing not less than fifty per cent by weight ofcopper,-10 (i) manufactures, the follow- three hundred rupees per metric ing, namely, plates, tonne sheets, circles, strips and foils in any fonn or size (2) pipes and tubes ten~per cent  a ~  26b zinc,-is (i) manufactures, the follow- three hundred rupees per metric ing, namely, plates, tonne sheets, circles, strips and foils in any fonn or size (2) pipes and tubes ten per cent ad fjq/o,em"; (i"') inltem no 27, after su~item (6), the fouowin; sub-itein shall be inserted, namely:-u(e) pipes and tubes ten per ceinad fiijior,m" ; (n) after item no 29, the following item shall be inserted, name1y:-"29a air conditioning twepty per cent ad fjiilo"m" machinery, all sorts (0) after item no 33, the following item shall be inserted, namely:-- "33a wireless receiving twenty per cent ad fjaior","; sets, all sorts, in-cluding transis-tor sets and radiq-daams, with or without loud-speaker (p) in item no 38, for the entry in the third column, the entry "sixty-five naye paise for every 1,000 matches or fraction thereof" shall be 3s substituted; (q) after item no 39, the following item shall be inserted, name1y:-- "40 refrigerators and twenty per cent ad fjaiorem" parts thereof, such as are specially de-signed for use with refrigerators 14 in the central sales tax act, 1956, in section 14,-amendment of act '1 01 1958 (i) in item (iia), for the figures "12", the figures 1119" shall be substituted; (ii) in item (vii), for the figures and letter "12a", the figures 1122" shall be substituted; 5 (iii) in item (viii), for the figure "8", the figure "i" shall be substituted; (iv) in item (i,r), for the figure 119", the figure 114" shall be substituted ; (v) in item (x), for the figures and letter 1112b", the figures 10 "21" shall be substituted; (vi) after item (x), the following item shall be inserted and shall be deemed to have been inserted with effect from the 1st day of march, 1961, namely:-"(xi) silk fabrics, as defined in item 20 of the first is schedule to the central excises and salt act, 1944" amencilnent 01 act 58 of 191'1 15 in the additional duties of excise (goods of special importance) act, 1'957,-(a) in clause (c) of section 2,-(i) after the words "cotton fabrics", the words "silk fab- 20 rics" shall be inserted; (ii) after the figures "19", the figures "20" shall be inserted; (b) in' sub-section (1) of section 3, after the words "cotton fabrics", the words "silk fabrics" shall be inserted; 2s (e) in the first schedule,-(1) in item no 4,'-::' (i) under "i unmanufactured tobacco", for subitem (1), the following sub-item shall be substituted; namely:-30 "(1) if flue cured and used in the manufacture of cigarettes nil"; (2) under "ii manufactured tobacco"-per hundred - (a) for sub-item (1), the following sub-item shall be substituted, namely: -3s "(i) ci~rs and·cheroots·of which -- the value-(a1 exceeds rs 25 a hundred:' three ,ruoees and ~:ty-five naye 40 | two                 | rupees                 | and        | twen-        ||---------------------|------------------------|------------|--------------|| ty-five naye paise |                        |            |              || (i)                |                        |            |              || exceeds rs is a    | hundred,               | but        |              || does                | not                    | exceed rs |              || 2s                  |                        |            |              || a                   | hun-                   |            |              || dred               |                        |            |              || s                   |                        |            |              || (i;'1               |                        |            |              || exceeds             |                        |            |              || ri                 | 5                      |            |              || a                   | hundred,               | but        | seventy-five || does                |                        |            |              || not                 | exceed rs is a        | hun-       | paise       || dred               |                        |            |              || (it')               |                        |            |              || exceeds rs         |                        |            |              || i                   |                        |            |              || '25                 |                        |            |              || a                   |                        |            |              || hundred,            | fifteen naye paise" ; |            |              || but                 | does                   | not        | exceed rs   || s                   |                        |            |              || a                   |                        |            |              || hundred            |                        |            |              |10 (b) in sub-item (2), for sub-items (2)(i) and (2)(ii), the following shall be substituted, namely:-"(2)(i) exceeds rs 35 a thousljnd seven rupees and seventy naye paise" ; is (c) the sub-items (2) (iii), (2) (iv), (2) (v), (2) (vi), (2) (vii), (2) (viii) and (2) (ix) shall, respectively, be renumbered as sub-items (2) (ii), (2) (iii), (2) (iv), (2) (v) (2) (vi), (2) (vii) and (2) (viii); (3) after item no 19, the following item shall be inserted, namely:-20 "20 silk fabrics thirty naye paise per square metre"; (d) in the second schedule, in part 111,-(i) in clause (a) of paragraph 5, after the words "cotton fabrics", the words "silk fabrics" shall be inserted; and (ii) in the proviso to paragraph 6, after the words "cotton fabrics", the words "silk fabrics" shall be inserted 16 in schedule i to the indian stamp act, 1899, in entry 47,-:r:~~ent 30 (a) in sub-entry a(i) (i), in the first column, the words of 1899 - "fifteen naye paise or" shall be omitted; and (h) in sub-entry e, in the second column, the following proviso shall be inserted, namely:-35 1 ef 1944 "provided that if the total amount of duty payable is not a multiple of five naye paise, the total amount shall be rounded off to the next higher multiple of five naye paise  n for the year beginning on the first day of april, 1961, no duty discmftinalu-' anceolt under the central excises and salt act, 1944 or the tariff act shall duty be levied in respect of salt manufactured in, or imported into, india - 40 18 of 1931 declaration under the pro1)i<;ional collection of ta:res act, 1931  it is hereby declared that it is expedient in the public interest that the provisions of clauses 11, 12 13 and 15 of this bill shall have immediate effect under the provisional collection of taxes act, 1931 2009(b)ls-3· -  (see section 2) part i income-tax and surcharges on income-tax paragraph a(i) in the case of every individual who is married and every hindu undivided family whose total income does not exceed rs 20,000 in either case- rates of income-tax| ri     | ri     ||---------|---------|| ra     |         || (i)     |         || on      |         || the     |         || fint    |         || 3,000   |         || of      |         || total   |         || 3300   |         || of      |         || total   |         || 1       |         || income | income || (2)     |         || on      |         || the     |         || aext    |         || 2000   |         ||       |         || 1100   |         ||       |         || (3)     |         || on      |         || the     |         || next    |         || 2500   |         ||       |         || 2,500   |         || 0      |         || (4)     |         || on      |         || the     |         || next    | 2,500   || "       |         || 2,500   |         ||       |         || (5)     |         || on      |         || the     |         || next    |         || 2500   |         || ii      |         || 2~00   |         || ii      |         || 3600   |         || ohotal  |         || nil     |         || income |         || 10400   |         ||       |         || 3%      |         || 2500   |         ||       |         || 6%      |         || 20      |         || 2500   |         || ii      |         || 9%      |         || 2500   |         || "       |         || 11%     |         || 2,500   |         ||       |         || 14%     |         || 5,000   |         ||       |         || 18%     |         || (~)     |         || on      | the     || deet    |         || 2,500   |         ||       |         || 2,500   |         ||       |         || (7)     |         || on      |         || the     |         || nat     |         || $,000   |         || "       |         || 5,000   |         ||       |         |(ii) in the case of every individual who is not married and every 25 individual or hindu undivided family whose total income in either case exceeds rs 20,000 and in the case of every unregistered firm or other association of persons, not being a case to which any other paragraph of this part applies:-rl 30 (i) on the fint 1,000 of total income tv;l (2) on the next 4,000 "  '3% (3) on the next 2,500   6% (<t) on the next 2500 ii ii 9% (5) on the next 2,500 "  n% 35 (6) on the next 2500  ii 14% (7) on the next 5,con  " 18% (8) on the balance of total iilcome 25%: provided that for the purposes of this paragraph---(i) no income-tax shall be payable on a total income which doe> not exceed the limit specified below; (ii) the income-tax payable shall in no case exceed half the 5 amount by which the total income exceeds the said limit; (iii) the income-tax payable by an individual who is married or a hindu undivided famhy whose total income exceeds in either case rs 20,000 shall not exceed the aggregate of-10 (a) the income-tax which would have been payable if the total income had been rs 20,000; (b) half the amount by which the total income exceeds rs 20,000; the limit aforesaid shall be-15 (i) rs 6,000 ill the case of every hindu undivided family which as at the end of the previous year satisfies either of the following conditions, namely:-(a) that it has at least two members entitled to claim partition who are not less than eighteen years of age; or 20 (b) that it has at least two members entitled to claim partition who are not lineally descended one from the other and who are not lineally descended from any other living member of the family; (ii) rs 3,000 in every other case ' surcharges on income-tax 25 the amount of income-tax computed at the rates hereinbefore specified shall be increased by the aggregate of the surcharges calculated as under:-(a) a surcharge for purposes of the union equal to the sum of-(i) five per cent of the amount of income-tax; and 3s (ii) where the earned income included in the total income exceeds rs 1,00,000, ten per cent of the difference between the amount of income-tax which would have been payable on the whole of the earned income included in the total income if such earned income had been the total income and the amount of income-tax payable on a total income of rs 1,00,000; - (b) a special surcharge at fifteen per cent of the difference between the amount of income-tax on the total income and the amount of income-tax on the whole of the earned income, if any, included in the total income if such earned income had been the total income: provided that-(i) no surcharge for purposes of the union shall be payable where the total income does not exceed the limit specified below; s (ii) no special surcharge shall be payable in the case of an assessee whose total income does not include any income from dividend on ordinary shares if his total income does not exceed the limit specified below, and where the total income includes any dividends on ordinary shares, such limit shall be increased 10 by rs 1,500 or the amount of the said dividends, whichever is less: provided further that-(a) where the total income includes any dividends on ordinary shares, the surcharge for purposes of the union and is the special surcharge shall not in each case exceed half the amount by which the total income exceeds the respective 1imits applicable in either case; (b) the surcharge for purposes of the union and the special surcharge, both together, shall not exceed half the amount by 20 which the total income exceeds the limit specified below; the limit aforesaid shall be-(i) rs 15,000 in the case of every hindu undivided family which satisfies as at the end of the previous year either of the following conditions, namely:-2s (a) that it has at least two members entitled to claim partition who are not less than eighteen years of age; or (b) that it has at least two members entitled to claim partition who are not lineally descended one from the other and who are not lineally descended from any other living 30 member of the family; (ii) rs 7,500 in every other case exptanation-for the purposes of this paragraph, in the case of every hindu undivided family governed by the mitakshara law, a son shall be deemed to be entitled to claim partition of the 35 coparcenary property against his father, or grand-father notwithltandinl any custom to the contrary in the case of every local authority,-rate of income-tax on the whole of the total income 30% surcharge on income-tax 5 the amount of income-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the union of 5 per cent of the amount of income-tax 10 in every case in which under the provisions of the income-tax act, income-tax is to be charged at the maximum rate,-rate of income-tax on the whole of the total income  25%  surcharges on income-taxis the amount of income-tax computed at the rate hereinbefore specified shall be increased by the aggregate of the surcharges calculated as under:-(a) a surcharge for purposes of the union of five per cent of the amount of income-tax; and 20 (b) a special surcharge of fifteen per cent of the amount of income-tax  - paragraph din the case of every company,-rate of income-tax on the whole of the total income  20% in the case of every registered firm,-rates of inccnne-tax - (1) on the first rs 40,000 of total income 30 (2) on the next rs 35,000 of total income (3) on the next rs 75,000 -of total income (4) on the balance of total income  nil 5% 6% 99'  part ii super-tax and 8urcharges on 8uper-tczzparagraph a in the case of every individual, hindu undivided family, unregistered firm and other association of persons, not being a case 5 to which any other paragrap\l of this part applies,-rates of super-tax nil 5% 15% 20% 30ro 35% 40%  45% (1) on the first rs 20,000 of total income (2) on the next rs 5,000 of total income (3) on the next rs 5,000 of total income (4) on the next rs 10,000 of total income (5) on the next rs 10,000 of total income (6) on the next rs 10,000 of total income (7) on the next rs 10,000 of total income (8) on the balance of total income  surcharges on super-taxthe amount of super-tax computed at the rates hereinbefore specified shall be increased by the aggregate of the surcharges calculated as under:-(a) a surcharge for purposes of the union equal to the sum 20 of-(i) five per cent of the amount of super-tax; and (ii) where the earned income included in the total income exceeds rs 1,00,000, ten per cent of the difference between the amount of super-tax which would have been 25 payable on the whole of the earned income included in the total income, if such earned income had been the total income and the amount of super-tax payable on a total income of rs 1,00,000; (b) a special surcharge at fifteen per cent of the di1ference 30 between the amount of super-tax on the total income and the amount of super-tax on the whole of the earned income, if any, included in the total income, if such earned income had been the total income paragraph b in the case of every local authority,-rate of buper-taz on the whole of the total income • 11%  surcharge on super-taxthe amount of super-tax computed at the rate hereinbefore specified shall be increased by a surcharge for purposes of the union of 121 per cent of the amount of super-tax  paragraph c sin the case of every association of persons being a co-operative society as defined in clause (sb) of section 2 of the income-tax act,-rates of super-tax (1) on the first rs 25,000 of total income nil 10 (2) or the balance of total income 16%  surcharge on super-taxthe amount of super-tax computed at the rates hereinbefore specified shall be increased by a surcharge for purposes of the union of 121 per cent of the amount of super-tax  is paragraph din the case of every company, other than the life insurance corporation of india established under the life insurance corporation act, 1956,- rates of super-tax20 on the whole of the total income 55%: provided that-(i) a rebate at the rate of 45 per cent on so much of the total income as consists of dividends from a subsidiary indian company formed and registered before the 1st day of april, 1961; at 25 the rate of 40 per cent on so much of the total income as consists of dividends from any other indian company formed and registered on or after the 1st day of april, 1959; and at the rate of 35 per cent on the balance of the total income shall be allowed in the case of any company which-30 - 3s (a) in respect of its pr:'lilts liable to tax under the income-tax act for the year ending on the 31st day of march, 1962 has made the prescribed arrangements for the declaration and payment within india of the dividends payable out of such profits in accordance with the provisions of sub-section (3d) of section 18 of that act; and - (b) is such a company as is referred to in sub-section (9) of section 23a of the income-tax act with a total income not exceeding rs 25,000; (ii) a rebate at the rate of 45 per cent on so much of the total income as consists of dividends from a subsidiary indian 5 company formed and registered before the 1st day of april, 1961; at the rate of 35 per cent on so much of the total income as consists of dividends from any other indian company formed and registered on or after the 1st day of april, 1959; and at the rate of 30 per cent on the balance of the total income shall be allowed 10 in the case of any indian company which satisfies condition (a) but not condition (b) of the preceding clause; (iii) a rebate at the rate of 45 per cent on so much of the total income as consists of dividends from a subsidiary indian company formed and registered before the 1st day of april, 1961; is at the- rate of 22 per cent on so much of the total income as consists (:f dividends from an indian company, not being a subsidiary, formci and registered on or after the 1st day of april, 1959 and before the 1st day of april, 1961; at the rate of 35 per cent on so much of the total income as consists of dividends from any indian 20 company formed and registered on or after the 1st day of april, 1961; at the rate of 25 per cent on so much of the total income as consists of royalties received from an indian concern in pursuance of an agreement made by it with the indian concern on or after the 1 st day of april, 1961 and which has been approved by the 25 central government in this behalf; and at the rate of 12 per cent on the balance of the total income shall be allowed in the case of any company not entitled to a rebate under either of the preceding clauses: provided further that-(i) the amount of the rebate under clause (i) or clause (ii) of the preceding proviso shall be reduced by the sum, if any, equal to the amount or the aggregate of the amounts, as the case may be, computed as hereunder:-(a) on the bgf,tegate of the 51u1l1 computed ill the manner at the rate ot ioo% 35 pfovided in clause (i) of the iil"cond p~oviso to p;'ragraph d of part ii of the first schedule to the finano:e a:t 1960 al reduced hy the amowlt, if any whieh is deemed to hwe been taken into account, in ~c4'ordance with clause (ii) of the laid proviso, for the purpose of reducinl the rebate mentioned in clause (i) of the said proviso to nil ; and  (;) on' the amount representing the face value of any at the rate of 121% bonus shares or the amount of any bonus issued to itt shareholden during tbe previous year with a vic1f to idcrealin, the paid-u,p cepi~l; (ii) where the sum arrived at in accordance with clause (i) of this proviso exceeds the amount of the rebate arrived at in accordance with clause (i) or clause (ii), as the case may be, of the preceding proviso, only so much of the amounts of reduction 5 mentioned in sub-clauses (a) and (b) of clause (i) of this proviso as is sufficient, in that order, to reduce the rebate to nil shall be deemed to have been taken into account for the purpose: provided further that the super-tax payable by a company, the total income of which exceeds rupees twenty-five thousand, shall not 10 exceed the aggregate of-(a) the super-tax which would have been payable by the company if its total income had been rupees twenty-five thousand; and (b) half the amount by which its total income exceeds is rupees twenty-five thousand explanation-for the purposes of this paragraph, where any portion of the profits and gains of a company is not included in its total income by reason of such portion being agricultural income, the amount representing the face value of any bonus shares and the 20 amount of any bonus issued to its shareholders shall each be deemed to be such proportion thereof as the average of the total income of the company in the five previous years in which the company has been in receipt of taxable income immediately preceding the relevant previous year bears to the average of its total profits and gains (excluding capital receipts) for the preceding five years aforesaid, 2s reduced by such allowances as may be admissible under the incometax act which have not been taken into account by the company in its profit and loss accounts for the preceding five years aforesaid 30 in the case of the life insurance corporation of india established under the life insurance corporation act, 1956,-11 of 1956 | rate                                            | of    ||-------------------------------------------------|-------|| on the whole of its profits and gains from life |       || insurance business                              |       ||                                               | 22·5% |part iii 3s - rates for deduction of tax under section 18 of the income-tax act at the prescribed rates in every case in which under the provisions of section 18 of the income-tax act, tax is to be deducted at the presoribed rates 2009 (b) ls--4  - deduction shall be made from the income subject to deduction at the following rates:-income-tax super-tax rates of surcharges rate of rates of iuper-ta: surcharges 5 rate of incometim surcharge specla1 for surcharge purposel of the umod i in the cue 01 - j'eriod other thad - cdmpiidy-(6) in 1dd1tion, where the penon il ode whom the penon responsible for paylq the income baa no i'aiod to believe to be reaident in the taable territoriea, od the whole income 2 in the cue of a company-(a) in every cue-incfim company referred to in section 56a of the income-to act); and (6) in addition, where the company is neither 4n indian compayable by any of itl subsidiary indian companies 196x, or by an indian com{jidy referred to in section sm of the income-to: act)-(x) on dividendi payable by an indian company, not beina a iublidlary, formed and reglltered on or after the lit day of april, 1959 and before the lit day of april, 1961 - - - - - (2) on dlvidends payable by any indian company formed and i'ciiatered on or after the ;ut day of aprij, 1961 , , , , , , , (3) 011 any other dividendi (i') oil the income from royalties payable by an indian concern in purauance of an agreement which is made by it with the indian concern on or after the lit day of april, x96x and which has been approved by the c:mttal gcm:mmeat in this behalf,  - - (iii') _, other income, not beida income from dividend ••  (see section 11) part i in the first schedule to the tariff act,-s (i) in item no 8(2), for the entries in the fourth and sixth columns, the entries "50 per cent ad valorem" and "40 per cent ad valorem", respectively, shall be substituted; (ii) in item no 9(3), for the entries in the fourth and sixth, columns, the entries "100 per cent ad valorem" and "921 pel: cent ad valorem", respectively, shan be substituted; 10 (iii) in item no 9(5), for the entries in the fourth and sixth columns, the entries "rs 3,07 per kilogram" and "rs 3,00 per kilogram", respectively, shall be substituted; 15 (iv) in item no 12(4), in the third column, the word "revenue" shall be inserted, and for the entry in the fourth column, the entry "50 per cent ad valorem" shall be substituted; (v) in item no 22(3), for the entries in the fourth column against sub-items (a) and (b), the entries "rs 23'50 per litre" and "rs 14·70 per litre", respectively, shall be substituted; (vi) in item no 22(4),-20 (1) for the entry in the fourth column against sub-item (a), the entry "rs 44·00 per litre of the strength of london proof or 170 per cent ad valorem, whichever is higher" shall be substituted; - (2) for the entry in the fourth column against sub-item (b) (i), the entry "rs 58·70 per litre or 170 per cent  ad valorem, whichever is higher, plus the excise duty for the time being leviable on like articles if produced or manufactured in india, and where such duty is leviable at different rates, the highest duty" shall be substituted; 30 3s - (3) for the entry in the fourth column against sub-item (b) (ii) the entry "rs 44·00 per litre of the strength of london proof or 170 per cent ad valorem, whichever is higher, plus the excise duty for the time being leviable on like articles if produced or manufactured in india, and where such duty is leviable at different rates, the highest duty" shall be substituted; (vii) in items nos 22(5) (b) (i) and 22(5)(b)(u), in each of the entries in the fourth, fifth and sixth columns the words "plus the excise duty for the time being leviable on like articles if produced or manufactured in india, and where such duty is leviable at different rates, the highest duty" shall be added at the end; (viii) in item no 24(3), fol' the entries in the fourth and s sixth columns, the entry "rs 33·00 per kilogram" shall be substituted; (ix) in item no 28a, in each of the entries in the fourth, fifth and sixth columns, the words "plus the excise duty for the tij;ne being leviable on like articles if produced or manufactured 10 in india, and where such duty is leviable at different rates, the highest duty" shall be added at the end; (ox) in items nos 28(3) and 39, for the entry against each of them in the fourth column, the entry "10 per cent ad valorem" ~hall be substituted; is (xi) in items nos 28(4), 28(14), 28(30), 28(34), 30(1), 30(13), 30(15), 30(16), 47(3), 47(4), 47(5), 47(6), 48(3), 48(7), 48(8), 48(9) and 70(1), in the entry against each of them in the fourth column, the words "plus the excise duty for the time being leviable on like articles if produced or manufactured in india, 20 and where such duty is leviable at different rates, the highest duty" shall be added at the end; (xii) in items nos 28(8) and 66(b), for the entry against each of them in the fourth column, the entry "50 per cent ad valorem plus the excise duty for the time being leviable on 2s like articles if produced or manufactured in india, and where such duty is leviable at different rates, the highest duty" shall be substituted;  (xiii) in item no 30, for the figures "40" and "~o" in the fourth and fifth columns, the figures "50" and "40", respectively, 30 shall be substituted; (xiv) in items nos 31, 31(2), 31(3), 45(b)~ 45 (c) and 7l(b), for the entry against each of them in the fourth column, the entry "75 per cent ad valorem" shall be substituted; (xv) in item no 31(1), for the entries in the fourth and 3s sixth columns, the entries "75 per cent ad valo'7'em" and "65 per cent ad valorem", respectively, shall be substituted;  (xvi) in items nos 39(1), 39(2), 39(3), 40, 63(28) and 87, for the entry against each of them in the fourth column, the -entry "50 per cent ad valorem" shall be substituted; 40 (zvii) in item no 44, for the figures "40" in the fourth column, the figures "50" shall be substituted; (zviii) in items nos 45(a), 53, 80 and 81, for the entry against each of them in the fourth column, the entry "100 per cent ad valorem" shall be substituted; (n) in items nos 72, 72(1), 72(2) and 72(3), for the entry against each of them in the fourth column, the entry "15 per cent ad valorem" shall be substituted; 10 (xx) in items nos 73, 73(1) and 77, for the entries against each of them in the fourth and fifth columns, the eritries "50 per cent ad valorem" and "40 per cent ad valorem", respectively, shall be substituted; is 20 (xxi) in items nos 73(21), 73(22) and 75(19), for the entry against each of them in the fourth column, the following entry shall be substituted, namely:-"the excise duty for the time being leviable on like articles if produced or manufactured in india  and where such duty is leviable at different rates, the highest duty; and the duty so leviable shall be in addition to the duty which would have been levied if this entry had not been inserted"; (xxii) in items nos 74(2) and 74(3), for the entry against '!ach of them in the fourth column, the entry "25 per cent ad valorem" shall be substituted; and 25 - (xxiii) in item no 75(1), for the figures "75" in the fourth column, the figures "100" shall be substituted | part            | ii     ||-----------------|--------|| ,               |        || item            |        || name            | of     || staodard        |        || rate            |        || of              | duty   || no             |        || duts'           |        || plefeentw rate | of     || duty            |        || if              |        || the             |        || irticle         |        || ilth~or         |        || man             |        || of              |        || dundon          |        || of              |        || protecriye      |        || ratei           |        || of              |        || duty            |        || the             | united || a british       |        || kingdom         |        || colon,          |        || s               |        || 6               |        || i               |        || 2               |        || 3               |        ||               |        || 7               |        | 10 in the first schedule to the tariff act,-  (i) after item no 12(4), the following item ahall be inserted, namely :- 1z(4a) malt -  revenue 100 per cent ad valorem - (ia) after item no 59(6), the following item shall be inserted, namely :-|              | 59 (7)        ||----------------|---------------|| is             |               || china          |               || and            | porcdainware, || sorts,-        |               || (i)            |               || tableware     |               || (2)            |               || sanitaryware  |               || (3)            |               || glazed         |               || tiles         |               || reyenue        |               || the            | aci&e         || duty           |               || for            |               || the            |               || time           |               || being leviable | on            || like articles  |               || if             |               || produced       |               || or             |               || manufactured   |               || in             |               || india,         |               || and            | where such    || is             |               || leviable       | at            || highest        | duty          || so             |               || leviable       |               || shall          |               || be             |               || in             |               || addition       | to            || the            | duty          || levied         |               || if             |               || this           | entry         || beeu           |               || inserted      |               || (4)            |               || not            |               || otherwise      |               || specified     |               || 20             |               |(iii) after item no 60(8), the following item shall be inserted, namely :-2s - 60(9) glass and glassware,-revenue the acise duty for the time (i) sheet glass and plate glass being leviable on like articles (2) laboratory glassware if produced or manufactured in (~glass shells, g\8s8 globes india, and where such duty i~ and chimneys for lamps and leviable at different rates, 30 lanterns the highest duty ; and the duty 10 leviable shall be in addition to the duty which would bne been levied if this entry had not been inserted - (4) other glassware including tabkwatt - - 3s (ill) after item no 63(14), the following item shall be inserted, namely :- 63(14a) high carbon steel stripa of thick-preferential aas - s mid or below revenue so per cent ad fjilifjl'ml 40 per ceat gil wildrmr (ii) after item no 64(s), the following item shall be inserted, nam~y :-40 c 64(6) copper and copper alloys con-revenue the excise duty for the time being taining not less than fifty per leviable on like articles if procent by weight of copperduced or manufac:tured in india, and where such duty is leviable (i) manufactures, the fouowidg at different rates, the highest namely, plates, sheet9, dr-::, ; and the duty so leviable cles, strips and foua in any be in addition to the duty form or size which would have been levied 4s (2) pipes and tube& if this cotty bad not been inserted (in) after item no 68(4), the following item shall be inserted, namely :-| 50                       |       ||--------------------------|---------|| 68(5)                    |         || zmc;-                  |        || revenue                  | the     || acise                    |         || duty                     | for the || time                     |         || (i)                      |         || manufactures,            |         || the                      |         || fouowina,                |         || being                    |         || leviable                 | on      || like                     |         || articles                 |         || d8iijely                |         || plates sheetj, circles, |         || if                       |         || produced                 |         || or                       |         || manufactured             |         || in                       |         || i1ripi                   |         || and                      |         || [oija                    |         || in                       |         || any form                 | or      || such                     |         || duty                     |         || it                       |         || size                    |         || leviable                 | at      || different                |         || rates,                   |         || 55                       | the     || hif                     |         || est                      |         || duty:                    |         || and                      |         || the                      |         || duty                     |         || (2)                      |         || pipes                    | and     || tubes                   |         || 10                       |         || icvjable                 |         || shall                    |         || be                       |         || in                       |         || addition                 |         || to                       |         || the                      | duty    || would                    |         || haft                     |         || been                     |         || levied                   |         || if                       |         || this                     |         || entry                    |         || bad                      |         || not                      |         || been                     |         || interted                |         |s 6 7 i 2 3 4 (vi) after item no72(40), the following item shall be inserted, namely :-- 72(·41) itefrigemon md ~ thereof, iiudl u are specially designed for use with ttfrigeraton ; and air conditioning macbinery, all  u revenu~ the excise duty for the time being leviable on like artidea if produced or manufactured in india and where such duty is leviable at differrnt rates, the highest duty ; and the duty 10 leviable shall be in addition to the duty which would have been levied if this entry had not been inserted 5 10 (mi) after item no 73(4), the following item shall be inserted, namely :-15 - 73l4a) wirelesa receiving sets, all 1orta, revenue the excise dun' for the time beina idcluding transistor sets and leviable on like articles if proradiograms, with or without duced or manufactured in 1ddia, loudspeaker and where such duty it leviable at different rates, the highest duty : and tilt duty so leviable 20 shah be in addition to the duty which would ha bceo levied if this entry had not been insert· ed (i%) after item no 73(22), the following item shall be inserted, namely :-25 - 73(23) nichrome and other electrical revenue 100 per cent ad oaiorem reaistlldc:e wires and strips (x) after item no 82(5), the following item shall be inserted, namely : tb(6) (a) plastics, all 1orts-revenue the excise d~ty for the time () moaldink p!jwden, panules being leviable on like articles lind flakes (tbermoeetting and it produoed or manu&aured in thermoplutic) india, and where such dufy is 30 leviable at different rates, the highest duty ; and the duty 10 leviable shall be in addition to the duty which would have been levied if this entry bad not been inserted (ii) polyethylene filma, iayftat - tubidgi and pvc sheets (that ii to , polyvinyl chloride abeeta) the acise duty for the time being leviable on like articles if produced or manufactured in india, and when: such duty is leviable at cwlerent rates, the hirhest :!fi ; and the duty 10 leviable be in addition to the duty which would have been levied if this cdtry bad dot been in· aerted (b) cellophane revenue  statement of objects and reasonsthe object of this bill is to give effect to the financial proposals of the central government for the next financial year and to provide for certain connected matters the notes on clauses explain the various provisions contained in the bill morarji desai new delhi; the 28th fe'fjruary, 1961  notes on clausesclause 2 prescribes the rates of income-tax and super-tax f~ purposes of assessment for the financial year 1961-62 and for deduction of tax at source from interest on securities, dividends etc, during the same year in the cases of assessees other than companies, the only change is that the rate of surcharge on earned income above ri 1 lakh has been raised from 5 per cent to 10 per cent of· the amount of income-tax and super-tax in the ease of companies,-(i) the rate of income-tax is the same as in the last year, ie, 20 per cent for all companies; (ii) the effective rate of super-tax applicable to income other than dividends of an indian company in which the public are substantially interested and whose total income does not exceed rs 25,000 and of any other indian company also remains the sam~ as in thp last year, ie, 20 per cent and 25 per cent respectively; (iii) the effective rate of super-tax applicable to income, other than dividends and certain royalties, of such foreign companies as do not declare their dividends in india continues to remain the s8iile as in the last year, ie, 43 per cent; (iv) the etfeetive'rates of super-tax on dividends received by a company (indian or foreign) from an indian company formed and relistereci before the 1st aprfi, 1961 will be the same as for the financial year 1960-61 in the case of dividends payable b3' an indian company formed and registered on or after the 1st april, 1961, the effective rates of super-tax have been fixed at 15 per cent in the case of an ittdian company in which the public are substantially interested and whose income does not exceed rs 25,000 and at 20 per cent in the case of all other compaljies, indian or foreign; (v) the effective rate of super-tax on royalties received by a foreign company (which does not declare dividends in india) from an indian codcem in pursuance of an agreement made by the former with the indian concern on or after the 1st apn1, 1961 which haa been approved by the central government, has been hed at 30 per cent; (vi) the effective rate at which super-tax is payable with reference to bonus issues has been reduced from 30 per cent to 121 per cent the rates for deduction of tax at source remain the same as in the financial year 1960-61 except that in the case of dividends and certain royalties payable to foreign companies which do not declare their dividends in india, the rates have been fixed at the rates corresponding to those mentioned in (iv) and (v) above clause 3 makes the following amendments to sub-section (3) of section 4 of the income-tax act:-sub-clause (i) inserts a new clause (iia) to provide for exemption from tax in the case of the income of an association or institution established in india wholly for controlling, supervising, regulating or encouraging in india the games of cricket, hockey, football tennis and such other games or sports as may be specified by the central government from time to time in the ofticial gazette sub-clause (ii) amends clause (xiva) to secure that the exemption from tax in respect of the salary received by a foreign technician whose contract of service has been approved by the central government will be available for a period of 36 months from the date of his arrival in india and that if for a further period not exceeding twenty four months, the tax in respect of his salary is paid to the central government by hi employer, such tax shall not be treated as a part of the technician's total income sub-clause (iii) amends clause (xvi) to extend to the development loan fund of the united states of america the exemption available at present to the international bank for reconstruction and development, in respect of interest received from an industrial undertaking or financial corporation, in certain circumstances clause 4 amends section 7 of the income-tax act to provide exemption from tax in respect of retiring gratuity received after the 1st june, 1953 by the members of defence services under the new pension code clause 5 amends section 9 of the income-tax act to provide that in respect of a building erected on or after the 1st day of april, 1961 and which is let on rent to tenants, the annual value of each resijiential unit shall be reduced by the amount of its annual value or rs 600, whichever is less, for a period of three years from the completion of the building ' ·:s!~ clause 6 makes the following amendments in sub-section (2) at section 10 of the income-tax act:-sub-clause (i) amends clause (vi) to secure that in respect of buildings erected after the 31st march, 1961 by an employer for the residence of persons employed in the business carried on by him and receiving remuneration not exceeding rs 200 per month, an initial depreciation of 20 per cent of the actual cost of the buildings will be allowed for the year of their erection sub-clause (ii) makes an amendment to clause (vib) to secure that in respect of new plant or machinery installed on or after the 1st april, 1961, the development rebate will be admissible at the rate of 20 per cent of the actual cost thereof in the case of new ships, however, the existing rate of 40 per cent remains unchanged sub-clause (iii) inserts a new clause (vic) to provide that subject to certain conditions where a company is amalgamated with another company or where a firm is converted into a private company and ship, machinery or plant on which development rebate is admissible to the predecessor is transferred by the predecessor to the successor, the development rebate already allowed in respect of the asset transferred will not be withdrawn and any unutilised portion of the development rebate shall be available to the successor sub-clause (iv) inserts a new clause (xiva) to enable an approved financial corporation engaged in providing long term finance for industrial development to claim as a deduction from its taxable profits, amounts appropriated to a special reserve account, not exceeding 10 per cent of the total income till the amount carried to the reserve account equals the paid-up capital - of the corporation sub-clause (v) amends clause (xv) to provide that no allowance on account of expenses for entertainment shall be made in the case of an assessee other than a company and further, that in the case of companies, the amount allowable shall be restricted to certain specified limits clause 7 extends the benefit of the five year tax holiday at present enjoyed by new industrial undertakings under section 15c to new hotels which start functioning on or after the 1st april, 1961 a~ satisfy certain conditions and also amends sub-section (4) to enable the central board of revenue to prescribe rules for computing the amount of the dividend exempt under the said sub-section clause 8 amends section 2sa of the income-tax act to secure that the provisions of that section shall not be applicable to a company in which at least 75 per cent of the share capital is held by charitable institutions or funds income whereof is exempt under clause (i) of sub-section (3) of section 4 of the income-tax act clause 9 makes amendments to section 35 of the income-tax act, consequential to the amendments proposed in sub-clause (iii) of clause 6 clause 10 amends section 56a of the income-tax act by extending the application of that section to the dividends paid by an indian company engaged in the manufacture of refractories  clause 11 read with the second schedule seeks to increase the import duties on certain items the principal changes are:-(i) the duty on betelnuts is proposed to be increased by approximately 36%; (ii) the duty on tobacco, unmanufactured, is proposed to be increased by approximately 50%; (iii) the duty on textile manufactures, not otherwise specified, is proposed to be raised from 50% to 100%; (iv) the duty on iron and steel manufactures, not otherwise specified, is proposed to be raised from 35% to 50%; (v) the duty on certain items of machinery and their component parts is proposed to be raised from 10% to 15%; (vi) the duty on electrical as well as certain non-electrical instruments, apparatus and appliances is proposed to be increased by 25% to 33%; (vii) the duty on certain railway materials is proposed to be raised from 20% to 25%; - (viii) increases in duty are proposed on the residuary tarift item "all other articles not otherwise specified" and on various  other less important articles; (ix) on a number of articles on which central excise dutie& have been imposed or are being levied at present provtsiclll is being made for the levy of a countervailing import duty this is necessary in order that the indigenous producer or m8du-facturer of these articles is not placed at a disadvantage in comparison with the importer clause 12 seeks to maintain for another year the statu qvo eln regard to commitments under the general agreement on tariffs add trade c1cl1lml 18-sub-clause (a) proposes an increase in the rate of excise duty on coffee sub-clause (b) (1) seeks to substitute the existing rates of excise duty on flue cured tobacco used in the manufacture of cigarettes by a single flat rate of duty and also proposes an increase in the rates of duty on certain forms of other than flue cured tobacco and on stalks sub-clause (b) (2) proposes an increase in the rates of duty on certain high priced cigarettes and also seeks to rationalise the rates of duty on cigars and cheroots sub-clause (c) seeks to increase the rate of excise duty on kerosene sub-clause (d) proposes an increase in the rate of excise duty on diesel oil not otherwise specified sub-clause (e) proposes an increase in the excise duty on vegetable product sub-clause (f) proposes an increase in the rates of excise duties on pigments, colours, paints, enamels, varnishes, blacks and cellulose lacquers sub-clause (g) proposes to levy an excise duty on soda ash, caustic soda, glycerine, coal tar dyes, patent or proprietary medicines not containing alcohol and certain cosmetics and toilet preparations sub-clause (tb) proposes to levy an excise duty on plastics and on cellophane  - sub-clause (i) proposes an increase in the rates of duty on all varieties of paper except printing and writing paper sub-clause (j) proposes to levy an excise duty on cotton yarn and woollen yam sub-clause (k) proposes to levy an excise duty on glass and glassware and china and porcelainware sub-clause (1) proposes to levy an excise duty on certain manufactures of copper and its alloys and of zinc sub-clause (m) seeks to levy an excise duty on aluminium pipes and tubes sub-clause (n) proposes to levy an excise duty on air conditioning machinery sub-clause (0) proposes to levy an excise duty on wirelell receiving sets  - sub-clause (p) proposes an increase in the permissible 1imit of the excise duty on matches ·from 57 to 65 np per 1000 matches or fraction thereof sub-clause (q) proposes to levy an excise duty on refrigerators and parts thereof clause 14 seeks to make certain amendments in the central sales tax act, 1956 consequent on the proposal to levy an additional duty of excise in lieu of sales tax on silk fabrics clause 15 proposes to levy an additional duty of excise in lieu of sales tax on silk fabrics and seeks to make consequential amendments in the additional duties of excise (goods of special importance) act, 1957 it also seeks to make certain changes in the rates of additional excise duty on cigars and cheroots and on cigarettes clause 16 seeks to make certain amendments to the entry relating to policies of insurance in schedule i to the indian stamp act, 1899, in order to remove certain difficulties which have arisen as a result of the decimalisation of the stamp duty clause 17, like section 23 of the finance act, 1960 provides that salt shall be duty free for another year  financial memorandumthe bill seeks to levy new excise duties on-1 soda ash 2 caustic soda 3 glycerine 4 coal tar dyes 5 cosmetics and toilet preparations 6 patent or proprietary medicines 7 plastics 8 cellophane 9 cotton yam 10 woollen yam 11 china and porcelainware 12 glass and glassware 13 copper and alloys of copper 14 zinc 15 aluminium pipes and tubes ~6 wireless receiving sets 17 air conditioning machinery 18 refrigerators these levies wul necessitate the employment of some additic)jlal std the increase in staff together with incidental expenses of administration is estimated to cost rs 10·55 lakhs per annum " i volume of work: there are about 800 units which are now to be brought under qxcise control  ii requirement of personnel and finance:for the field organisation no annual emolummts cost its its a officers-:1 x 8,880 - assistant collectors supenntendents-qass i  class ii 4 6 4 x 8,880 6 x 7,°56 | no                                 | annual    ||-------------------------------------|-----------|| coil                                |           || -                                   |           || emoluments                          |           || rs                                 |           || rs                                 |           || b                                  | staff-    || deputy superintendents (executive)  |           || 40                                  |           || 40                                  |           || x                                   |           || 5,77~                               |           || 2,31,000                           |           || inspectors                          |           || 60                                  |           || 60                                  |           || x                                   |           || 3,746                               |           || 2,24,7                             |           || 60                                  |           || sub-inspectors                      |          || 60                                  |           || 60                                  |           || x                                   |           || 1,832                               |           || 1,09,920                            |           || dy superintendents (ministerial)   |           || 2                                  |           || 2                                   |           || x                                   |           || 4,710                               |           || 9>42                                |           || 0                                   |           || head                                | aerks     || 10                                  |           || 10                                  |           || x                                   |           || 3,746                               |           || 3704                                |           || 60                                  |           || upper division clerks              |           || 28                                  |           || 28                                  |           || y                                  |           || 2,548                              |           || 7                                   |           || 1                                   |           || ,344                                |           || lower division clerks              |           || 3                                   |           || 0                                   |           || 30                                  |           || x                                   |           || 1,804                               |           || 54,120                              |           || stenotypists                       |           || 12                                  |           || 12                                  |           || x                                   |           || 2,044                               |           || 24,528                              |           || c                                  |           || incidental expenses including class |           || iv staff, contingencies etc       |           || 104                                 |           || 0,000                               |           || total                               |           || ra                                 |           || 9,98,168                            |           || or rs                              |           || 10'00                               |           || lakhs                              |           |for lhe office of lhe cmlral board of reo,""e | \                              | officers-   ||----------------------------------|-------------|| j                                |             || i                                |             || i x                              |             || 13,140                           |             || j                                |             || x                                |             || 7,800                            |             || under secretary                  |             || section officer                  |             || 13,14                            |             || 0                                |             || 7,800                            |             || b                               | swf-        || assistants                       |            || stenographer                     |            || upper division clerk            |             || lower division clerks           |             || 15,456                           |             || 3,864                            |             || 2,548                            |             || 7,216                            |             ||                                | x           || 3,864                            |             || i                                |             || x                                |             || 3,864                            |             || i                                |             || x                                |             || 2,548                            |             || 4                                |             || x                                |             || 1,804                            |             || 4                                |             || 1                                |             || i                                |             ||                                |             || c incidental expenses including |             || aass                             |             || iv staff, contingencies, etc    |             || 5,000                            |             || total                            | -           || ri                              |             || 55,024,                          |             || or rs                           |             || 55,000'00                        |             | a billto give effect to the financial proposals of the central government for the financial year 1961-62 the president has, in pursuance of clauses (1) and (3) of article ii7 and clause (1) of article 274 of the constitution of india, recommended to the lok sa bha, the introduction and consideration of the bill secretary (shri morarji desai ,ministe1' of finance) 