 the finance bill, 1987(as introduced in lok sabha)  arrangement of oauses chapter i preljminalty clauses1 short title and commencement chap'jern rates ofincdme-tax 2 income-tax chapi'erm 3 amendment of section 2 4 amendment of secuoa 10 s amendment d aection loa 6 amendment of section n 7 amendment of leclion 32ab 8 amendment of lcction 33ab 9 amendment of section 36 10 amendmc::dt of sectioa 43b 11 insertion of new section 44bb 12 insertion of new section 44bba 13 amendment of section 45 14 amendment of section 47 is substilutioa of new section for section 48 16 amendment of section 49 17 omission of sectioa 52 18 amendment of aec:tioa 53 19 amcndmc:ot of aec:tion 54 21> amendment of section s4b 21 amendment of aec:tion s4d 22 amendment of aec:tion 54e 23 amcadmeol of aec:tion 54f 214 insenion of new aeciions s4g and 54h 25 amendment of aec:tion 55 26 amendmc:ot of aec:tion 56 n amendment of aectioa 51 28 amendment of aec:tioa 10 29 substilulion of new section for section 71 30 amendment of aectioa 72 31 substilution of new section for licciion 74 clauses 32 amendment of sectim roc 33 amendment of section 8occ 34 insertion of new seetion socca 35 amendment of seelion 800 36 amendment ofseelion bo-o n amendment of seelion 8orra 38 omission of section 8ot 39 amendment of seelionbou 40 omission of cbapier v1b 41 omission of 0iaptt:r xi 42 omissim of seclion 115 43 inseriion ex new 0i8pia' xiib 44 amendment of seelion iss 45 amendmc21t of seclion 192 46 amcndmentofseelionl94 47 amendmentofseelion 194a 48 amendment of seclion 194d 49 in8ertim of new section 194e so amcndmentofseelion 195 51 insertion of new seelion 195a s2 amendment of seclion 197 53 amendment of seclions 198,200,203,204 and 205 54 amendmentofseeiiolli99 55 amendment of seelim 202 s6 amendment of seclion 203 st lnscrtion of new seclion 203a s8 substibllion of new section for seetion 206 59 substibltion of new section for section 245a 60 amendment of seclim 2458 61 lnscrtion of new seclions 2458a to 245bd 62 amendment of seclion 24sc 63 amendment of seclion245d 64 amendment of seclion 24se 65 amendmc21t of section 24sf 66 amendment of seclion 24sh (ii insertion of new section 245ha 68 amendment of section 245k (i) omission of seetion 245m 70 in&ei1ion of new seclion 2128b 71 amcndmenl of seclion 273b 72 omission of seelion 280za 73 omission of sections 285 and 286 74 amendment of seelion 293 75 amendment d elcwnlh schedule 76 consequential amendments 77 ameddmeat of aeclion 2 78 amendment of iicciion 5 79 subllilulion of new seciioa for section 22a in ameadmenl of iicciiaa 228 81 iuedion of new seelioal22ba to 22bd 82 amendmeni of iic'jciion 22c 83 amend  of iicciiaa 220 14 ameodment of iccikm 22b 85 amendmeat of iociion 22f 86 ameadmeat of iicciion 2m clauses 87 insertion of new section 22ha 88 amendment of section 22k 89 omission of section 22m 90 amendment of section 31 91 amendment of section 43 gift - tax 92 amendment of section 2 93 amendment of section 42 chapt'eriv  indirfci' taxfscustoms 94 amendment of act 51 of 1975 95 auxiliary duties of customs 96 amendment of act i of 1944 97 amendment of act 5 of 1986 98 special duties of excise 99 amendment of act 58 of 1957  chapter v forfjgn exchange conservallcj'1l (i1{avfl) tax100 extent and commencement 101 definitions 102 foreign exchange conservation (travel) tax 103 power to exempt lot penalties 105 protection of action taken in good faith 1(x) power to ~e rules 107 rules and notifications to be laid before parliament  chapter vi mlscellanfdusl~ amendment of act 47 of 1974 100 amendment of act 62 of 1986 the first schedule the second schedule the third schedule the r>urth schedule  the finance bill, 1987 a billto give effect to the financial proposals of the central government for the financial year 1987-88 be it enacted by parliament in the lbirty-eighth year of the republic of india as fodows:- chapter i preumlnary1 (1) this act may be called the finance act, 1987 q ""6-n'01 5 (2) save as otherwise provided in this act, sections 2 to 93 shall be deemed to have come into force on the 1st day of april, 1987  chap1erit ra11!scfhndb-tax2 (1) subject to the provisions of sub-sections (2) xl (3), for the assessment year income -tax 10 commencing on the 1st day of april, 1987, income-tax shall be charged at the rares specified in part i of the first schedule (2) in the cases to wfiich sub-paragraph lor sub-paragraph it of paragraph a of part i of the first schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding six hundred rupees, in addition to total income, and the total income 15 excccds,-(i) in a case to which the said sub-paragraph i applies, eighteen thousand rupees, and (a) in a case to which the said sub-paragraph it applies, twelve thousand rupees, then,-(t4i the net agricultural income shall be taken into account, in the manner provided in 7{) clause (b) [that is to say, as if the net agricultural income were comprised in the total income after-(;) in a case to which the said sub-paragraph i applies, the frrst eighteen thousand rupees and (ii) in a case to which the said sub-paragraph it applies, the frrst twelve thousand rupees of the total income but without being liable to tax], only for the purpose of charging income-lax in respect of the total income; and (b) the income-tax chargeable sbau be calculafed u follows:-(i) the ioial income and abe net aaricullllr8l idcome sha1l be aggregated and the amount of income-tax sbau be detrnnincd in respect of the aggregate income at the rates specified in sub-paragraph i or, u the case may be, sub-paragraph n of the said paragraph a, as if such aggregate income were abe ioi8l income; s (ii) the net agricultural income sha1l be incn:ased,-(a) in a case to which the said sub-paragraph i applies, by a sum of eighteen thousand rupees; and (b) in a case to which the said sub-paragraph ii applies, by a sum of twelve thousand rupees 10 and the amount of income-tax sball be detennined in respect of the net agricultural income as so increased at the rates specified in sub-paragraph lor, as the case may be, sub-paragraph ii of the said paragraph a, as if the net agricultural income as so increased were the total income; (iii) the amount of income-tax determined in accmlance with sub-clause (i) shall be is reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income (3) in cases to which the provisions of chaptes xn or chapter xii-a or sub-section (1 a) of section 161 or section 164 or section 164a or section 167a of the income-tax act, 1961 430f 1961 (hereinafter referred to as the income-tax act) apply, the tax chargeable shal1 be detennined as 20 provided in that chapter or that section, and with reference to the rates imposed by sub-section (1 ) or the rates as specified in that oiapter or section, as the case may be (4) in cases in which tax has to be deducted under sections 193, 194, 194a, 194b, 194bb, 1940,i94e and 195 of the income-tax act at the rates in force, the deduction shall be made at the rates specified in part ii of the farst schedule 2s (5) subject to the provisions of sub-section (6), in cases in which income-tax has to be calculated under the fu"st proviso to sub-section (5) of section 132 of the income-tax act or charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said act or deducted wider section 192 of the said act from income chargeable under the head "salaries" or deducted under sub-section (9) of section 30 80e of the said act from any payment referred to in the said sub-section (9) or in which the "advance tax" payable under chapter xvii-c of the said act has to be computed, at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the rate or rates specified in part iii of the first schedule: provided that in cases to which the provisions of chapter xii or chapter xii-a or sub-35 section (la) of section 161 or section 164 {x" section 164a or section 167a of the income-tax act apply, "advance tax" shall be computed with reference to the rates imposed by this subsection or the rates as specified in that chapter or section, as the case may be (6) in the cases to which sub-paragraph i or sub-paragraph ii of paragraph a of part iii of the first schedule applies, where the assessee has, in the previous year or, if by virtue of any 40 provision of the income-tax act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultpral income exceeding six hundred rupees, in addition 10 tota1 income and the totai income exceeds,-(i) in a case to which the said sub-paragraph i applies, eighteen thousand rupees, and (ii) in a case to which the said sub-paragraph ii applies, twelve thousand rupees, 45 then, in calculating income-tax under the first proviso 10 sub-section (5) of section 132 of the income-tax act or in charging income-tax under sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the said act or in computing the "advance tax" payable under chapter xvii-c of the said act, at the rate or "8tes in force,-(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, 8'i if the net agricultural income were comprised in the total income after,-5 (i) in a case to which the said sub-paragraph i applies, the first eighteen thousand rupees,and (ii) in a case to which the said sub-paragraph n applies, the frrst twelve thousand rupees, 10 of the total income but without being liable to tax], only for the purpose of calculating, charging or computing such income-tax or, as the case may be, "advance tax" in respect of the totai income; and (b) such income-tax or, as the case may be, "advance tax" shall be so calculated, charged or computed as follows:-15 (i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or "advance tax" shall be determined in respect of the aggregate income at the rates specified in sub-paragraph i or, as the case may be, sub-paragraph ii of the said paragraph a, as if such aggregate income were the total income; (ii) the net agricultural income shall be increased, -20 (a) in a case to which the said sub-paragraph i applies, by a sum of eighteen thousand rupees; and (b) in a case to which the said sub-paragraph ii applies, by a sum of twelve thousand rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net 25 agricultural income as so increased at the rates specified in the said sub-paragraph lor, as the case may be, the said sub-paragraph n, as if the net agricultural income as so increased were the total income; (iii) the amount of income-tax or "advance tax" detc:rmined in accordance with subc1awje (i) shall be ~ by the amount of income-tax or, as the case may be, "advance 30 tax" detamined in accordance with sub-clawje (ii) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the iotal income (l) for the purposes of this section and the first schcdule,-35 (a) "company in which the public are substantially interested" means a company within the meaning of clause (18) of section 2 of the income-tax act, and includes a subsidiary of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year; 40 (b) "domestic company" means an indian company, or any other company which, in respect of its income liable to income-tax under the income-tax act for the assessment year commencing on the 1st day of april, 1987, has made the p-escnbed arrangements for the declaration and payment within india of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 194 of the act; (c) "insurance commission" means any remmeration or rew-d, whether by way of commission or odaerwise, for soliciting or procuring insurance business (including buiideaa relating to the continuance renewal or revival of policies of insurance); ~ "investmedt company" means a company whose gross total income (as defmed in section 80b of the income-tax act) cmsists mainly of income which is chargeable under the heads "interest on securities" "income from house property", "capital gains" and "income from other 1oui'ccls"; (e) "net agricultural income", in relation to a person, means the total amount of s agricultural income, from whatever soun:e derived of that person compured in acc<x'dance with the rules contained in part iv of the fust schedule; (f) "lax-free security" means any security of the central govmunent issued or declared to be income-lax free, 01' any security of a slate government issued income-tax free, the income-lax whereon is payable by the state government; 10 (g) "trading company" means a company whose business consists mainly in dealing in goods or merchandise manufactured, produced or procossed by a person other than that company and whose income atuibutable to such business included in its gross total income (as defmed in section 80b of the income-tax act) is not less than fifty-one per cent of the amount of such gross total income; (irj all other words and expressions used in this section or in the first schedule but 15 not defmed in this sub-section and defined in the income-tax act shall have the meanings respectively assigned to them in that act  cham'erm dirocr taxes income-tax20  3 in section 2 of the income-tax act,-allmdlllflll of!ledioo2 (a) in clause (22), with effect from the 1st day of april, 1988,-(i) in sub-clause (e), f(x' the words", being 8 person who has a subslantial interest in the company,", the words and brackets "or to any concern in which such shareholder is a member or a partner and in which he has 8 substantial interest (hereafter in this clause referred to as the said concem)" shall be substibltod; 25 (ii) in sub-clause (ii), after the words "8 shareholder", the words "(x' the said concern" shall be inserted; (iii) after explq1lqtion 2, the following explanation shall be inserted, namely:-'explanation 3- for the purposes of this clause,-30 (a) "concern" means a hindu undivided family, or a ftrm or an association of persons or 8 body of individuals or 8 company; (b) a person shall be deemed to have a subslantial interest in 8 concern, other than a company, if he is at any time during the previous year, beneficially entitled to not less lhan twenty per cent of the income of such concern;'; (b) in clause (24), aft& sub-clause (u), the following sub-clause shall be inserted wilh effect from the 1st day of april, 1988 namely:-35 34 of 1948 "(x) any sum received by the assessee from his employees as contributions to any provident fund or superannuation fund or any fund set up under the provisions of the employees' slate insurance act, ]948 or any other fund for the welfare of such employees;" : 40 (c) afta'clause (29), the following clauses sbail be inserted with effect from the 1st day of april 1988 namely:-'(29a) "long-term capital asset" means a capital asset which is not a short-tenn capital asset; (29b) "long-term capital gain" means capital gain arising from the transfer of a long-5 tenn capital asset;'; (d) afta' clause (36), the following clause shall be inserted namely:--'(364) "public sector company" means any corporation established by or under any central state or provincial act or a government company as dermed in section 617 of the companies act, 1956;'; 10f1956 10 (e) in clause (42a), before the explanation, the following proviso shall be inserted with effect from the 1st day of april, 1988 namely:-'provided that in the case of a share held in a company, the provisions of this clause shall have effect as if for the words "thirty-six months" the words "twelve months" had been substituted'; 15 (f) after clause (42a), the following clause shall be inserted with effect from the 1st day of april, 1988, namely:-'(428) "short-term capital gain" means capital gain arising from the transfer of a short-term capital asset;';, (g) in clause (47) with effect from the 1st day of april, 1988,-(i) in sub<lause (iv), the word "or" shall be inserted at the end; (u) after sub<lause (iv), the following sub-clauses and explanation shall be inserted namely:-'(v) any transaction involving the allowing of the possession of any immovable property 10 be taken or retained in part performance of a contract of the nature referred to in section s3a of the transfer of property act, 1882; or 40fl882 25 (vi) any transaction (whether by way of becoming a member of or acquiring shares in, a co-operative society, company or other association of persons or by way of any agreement or any arrangement or in any other manner whatsoever) which has the effect of ii'8nsferring, or enabling the enjoyment of, any immovable property explamtion- for the purposes of sub<lauses (v) and (vi), "immovable property" shall have the same mearung as in clause (d) of section 269ua;' 30 4 in section 10 of the income-tax act,--arnadrjauof sedion 10 (a) afk2- clause (lob), the following clause shall be inserted, namely:-h(loc) any payment received by an employee of a public sector company at the time of his vohmtary retirement in accordance with any scheme which the centta1 government may, having regard 19 the economic viability of such company and other relevant cucumstancca approve in this behalf;"; (b) in clause (15),-35 (i) in sub<lause (ii),-(a) in the opening paragraph for the words, brackets and figures "the post office savings bank (cumulative time deposits) rules, 1959" the words and figures "the post office cumulative ttme deposit rules, 1981" shall be substituted and shall be deemed to ha'le been substituted with effect from the 1st day of april, 1983; (b) in the proviso for the words brackets and figures "in item (3) in the tabje below rule 3 of the post office savings banks rules, 1965", the words and fjgul'es "in item 6 in the table below rule 4 of the post office savings account rules 1981" s shall be substituted and shall be deemed to have been substituted with effect from the 1st day of april 1983; (ii) in sub-clause (iv) af~ item (g) and the explanalion thereto the following item shall be inserted, name1y:-"(h) by any public sector company in respect of such bonds or debentures and subject to such conditions, including the condition that the holder of such bonds or 10 debentures registers his name and the holding with that company as the central government may, by notification in the official gazette, specify in this behalf;"; (c) in clause (17)-(i) in sub-clause (i) the word "and" shall be omitted and shall be deemed to have been omitted with effect from the 1st day of april 1986; 15 (ii) for sub-clause (ii) the following sub-clauses shall be substituted and shall be deemed to have been substituted with effect from the 1st day of april 1986, namely:-"iii) any allowance received by any person by reason of his membership of parliament under the members of parliament (constituency allowance) rules 1986; (iii) all other allowances not exceeding six hundred rupees per month in the aggregate received by any person by reason of his membership of any state legislature 20 or of any committee thezeof which the central government may by notification in the official gazette specify in this behalf;" arnen:knmtof 5 in section loa of the income-tax act in the explanation occurring at the end after sectim loa clause (ii) the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april 1981 namely:-25 '(iii) "manufacture" includes any-(a) process or (b) assembling or (e) recording of programmes on any disc tape perforated media or other information storage device' 6 in section 27 of the income-tax act for clause (iii) the following clauses shall be substituted with effect from the 1st day of april 1988 namely:-30 "(iii) a member of a co-operative society company or other association of persons to whom a building or part thereof is allotted or leased under a house building scheme of the society company or association as the case may be shall be deemed to be the owner of that building or part thereof; (iiia) a person who is allowed to take or retain possession of any building or part thereof 35 in part performance of a conb:act of the nature referred to in section 53a of the transfer of property act 1882 shall be deemed to be the owner of that building or part thereof; 40f 1882 (iiib) a person who acquires any rights (excluding any rights by way of a lease from month to month or for a period not exceeding one year) in or with respect to any building or part thereof, by virtue of any such transaction as is referred to in clause (f) of section 269ua, shall be deemed to be the owner of that building or part thereof;" 40 (a) in sub-section (1 )-(i) for the words "deduction of" the words brackets and figures "deduction (such deduction being allowed before the loss if any brought forward from earlier years is set off under section 72) of' shall be substituted; 5 (ii) the following proviso shall be inserted at the end, namely:-"provided that where such assessee is a fmn or any association of persons or any body of individuals the deduction under this section shall not be allowed in the computation of the income of any partner, or as the case may be any member of such fmn associatio;l of persons or body of individuals "; 10 (b) in sub-section (2) for clause (ii) the following clauses shall be substituted, namely:-'(ii) "new ship" or "new aircraft" includes a ship or aircraft which before the date of acquisition by the assessee was used by any other person, if it was not at any time previous to the date of such acquisition owned by any person resident in india; 15 (iii) "new machinery or plant" includes machinery or plant which before its installation by the assessee was used outside india by any other person, if the following conditions are fulftlled namely:-(a) such machinery or plant was not at any time previous to the date of such installation by the assessee, used in india; 20 (b) such machinery or plant is imported into india from any country outside india; and (c) no deduction on account of depreciation in respect of such machinery or plant has been allowed or is allowable under this act in computing the total income of any person for any period prior to the date of the installation of the machinery or plant by the assessee; 25 (iv) "tea board" means the tea board established under 'section 4 of the tea act, 1953;'; 19 of 1953 (c) in sub-section (3), in clause (a) for the words "as increased by an amount equal to the depreciation, if any, debited in the audited profit and loss account; and", the following shall be substituted, namely:-"as increased by the aggregate of -30 70f1964 (;) the amount of delrciation; (ii) the amount of incom~tax paid (x" payable, and provision therefor; (iii) the amount of surtax paid or payable under the companies (profits) surtax act, 1964; (iv) the amounts carried to any reserves, by whatever name called; (v) the amount or amounts set aside to provisions made for meeting liabilities, 35 contingenci~ or commitments; (vi) the amount by way of provision for losses of subsidiary companies; and (vii) the amount (x" amounts of dividc:21ds paid (x" propo8ed if any debited to the profit and loss account; and as reduced by any amount (x" amounts withdrawn from reserves or provisions if such amounts are credited to the profit and loss account; and"; 40 (d) after sub-section (5), the fonowing sub-sections shall be inserted, namely:-'(sa) any amount standing to the credit of the assessee in the deposit account shall not be allowed to be withdrawn before the expiry of a period of five years from the date of deposit except for the purposes specified in the scheme and in the circumstances specified below:-5 (a) closure of business; (b) deadt of an assessee; (c) partition of a hindu undivided family; (d) dissolution of a finn; (e) liquidation of a company 10 (5b) where any amount standing to the aedit of the assessee in the deposit account is utilised by the assessee for the purposes of any expenditure in connection with the eligible business or p-ofession in accordance with the scheme, such expenditure shall not be allowed in computing the income chargeable under the head "profits and gains of business or profession"'; 15 (e) in sub-section (6),-(i) for the words "is not utilised in accordance with the scheme", the words "is not utilised in accordance with, and within the time specified in, the scheme" shall be substiblted; (ii) the wmds "within that previous year," shall be omitted an ed iirn ofsectim 33ab 8 in section 33ab of the incometax act, in sub-section (5), for the words, figures and 20 letters "assessment year commencing on the 1st day of april, 1986, and the four assessment years next following that assessment year", the words, figures and letters "assessment years commencing on the 1st day of april, 1986 and the 1st day of april, 1987" shall be substituted with effect from the 1st day of april, 1988 9 in section 36 of the income-tax act, in sub-section (j), after clause (v), the following clause shall be inserted with effect from the 1st day of april, 1988, namely:-aaddlienc:l sectim36 2'; '(va) any sum received by the assessee from any of his employees to which the provisions of sub-clause (x) of clause (24) of section 2 apply, if such sum is credited by the assessee to the employee's account in the relevant fund or funds on or before the due date explanalion-  for the purposes of this clause, "due date" means the date by which the assessee is required as an employer to credit an employee's contribution to the employee's 30 account in the relevant fund under any act, rule order or notification issued thereunder or under any standing order award, contract of service or otherwise: 35 10 in section 43b of the income-tax act, before the explanation, the following provisos amcmnidc:l shan be inserted with effect from the 1st day of april 1988 namely:-sectim 438 "provided that nothing contained in this section shall apply in relation to any sum referred to in clause (a) which is actually paid by the assessee on or before the due date applicable in his case for furnishing the return of income under sub-section (j ) of section 139 in respect of the previous year in which the liability to pay such sum was incurred as aforesaid and the evidence of such payment is furnished by the assessee along with such return: provided further that no deduction shall, in respect of any sum referred to in clause (b) be allowed unless such sum has actually been paid during the previous year on or 40 before &he due date as defined in the explmtojion below clause (va) of sub-section (1) of section 36" 11 in the incom~tax act, after section 44b, the following section shall be inserted and lnsa1inocnew shall be deemed to have been inserted with effect from the 1st day of april, 1983, namely:--seam44bb 5 '44bb (1) notwithstanding anything to the contrary contained in sections 28 to 41 and sections 43 and 43a, in the case of an asaesscc engaged in the business of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, minecal oils, a sum equal to ten per cenl of the aggregate of the amowlts specified in su1>-section (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head "profits and gains of business or profession": sj1rial povisinb' = pins in cxliii1!1c1i::t wilhlhe bisini:is oc ~ de, oc miruai oils provided that this su1>-section shall not apply in a case where the provisions of section 42 10 or section 44d or section lisa or section 293a apply for the purposes of computing profits or gains or any other income referred to in those sections (2) the amounts referred to in sub-section (j) shall be the following, namely:-15 (a) the amount paid or payable (whether in or out of india) to the assessee or to any person on his behaff on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used or to be used in the prospecting for, or extraction or production of, mineral oils in india; and ' (b) the amount received or deemed to be received in india by or on behalf of the assessee on account of the provision of services and facilities in connection with, or supply of plant and machinery on hire used or to be used in the prospecting for, or extraction or production of, mineral oils outside india 20 explanation-for the purposes of this section,-(;) "plant" includes ships, aircraft, vehicles, drilling units, scientific apparatus and equipment, used for the purposes of the said business; (ii) "mineral oil" includes petroleum and natural gas' 12 in the income-tax act, after section 44bb (as directed to be inserted by clause 11), the imejtmoc 2'; following section shad be inserted with effect from the 1st day of april, 1988, namely:-newsl'dim 44bba '44bba (1) notwithstanding anything to the conlfary contained in sections 28 to 43a, in the case of an assessee, being a non-resident, engaged in the business of operation of aircraft, a sum equal to five per cent of the aggregate of the amounts specified in subsection (2) shall be deemed to be the profits and gains of such business chargeable to tax under the head "profits and gains of business or profession" 30 (2) the amounts referred to in sub-section (j) shall be the following, namely:-spx:iai povisiat fer axnjuing pofiis&n1 gainsoc!he ~of clpci'liiioo of aiaail in !he ~ofldl­(a) the amount paid or payable (whether in or out of india) to the assessee or to any ~ person on his behalf on account of the carriage of passengers, live-stock mail or goods from any place in india; and (b) the amount received or deemed to be received in india by or on behalf of the assessee on account of the carriage of passengers, live-stock, mail or goods from any 35 place outside india' 13 in section 45 of the income-tax act, with effect from the 1st day of april, 1988,-amcmrnentof &edion45 (a) in sub-section (1), for the figures, letters and word "54e and 54f", the figures, lellers and word "54e, 54f, 54g and 54h" shall be substituted; (b) after sub-section (2) the following sub-sections shall be inserted, namely:-'(3) the profits or gains arising from the transfer of a capital asset by a person to a firm or other association of persons or body of individuals (not being a company or a co-operative society) in which he is or becomes a partner or member, by way of capital contribution or otherwise shall be chargeable to tax as his income of the previous year in which such transfer takes place and for the purposes of section 48, the amount recorded in the books of account of the flttn, association or body as the value of the capital as~et shall be deemed to be the full value of the consideration received or accruing as a result of 5 the transfer of the capital asset (4) the profits or gains arising from the transfer of a capital asset by way of distribution of capital assets on the dissolution of a fmn or other association of persons or body of individuals (not being a company or a co-operative society) or otherwise, shall be chargeable to tax as the income of the fmn, association or body, of the previous year 10 in which the said transfer takes place and, for the purposes of section 48, the fair market value of the asset on the date of such transfer shall be deemed to be the full value of the consideration received or accruing as a result of the transfer 15 20 (5) notwithstanding anything contained in sub-section (1) where the capital gain arises from the transfer of a capital asset being a transfer by way of compulsory acquisition under any law, or a transfer the consideration for which was determined or approved by the central government or the reserve bank of india, and the compensation or the consideration for such transfer is enhanced or further enhanced by any court, tribunal or other authority the capital gain shall be dealt with in the following manner, namely:-25 (a) the capital gain computed with reference to,the compensation awarded in the fll'st instance or, as the case may be, the consideration determined or approved in the first instance by the ·central government or the reserve bank of india shall be chargeable as income under the head "capital gains" of the previous year in which the transfer took place; and (b) the amount by which the compensation or consideration is enhanced or further enhanced by the court, tribunal or other authority shall be deemed to be income chargeable under the head "capital gains" of the previous year in which such amount is received by the assessee explanation-for the purposes of this sub-section,-30 (i) in relation to the amount referred to in clause (b) the cost of acquisition and the cost of improvement shall be taken to be nil; (it) the provisions of this sub-section shall apply also in a case where the transfer took place prior to the lst day of april, 1988; (iii) where by reason of the death of the person who made the transfer, or for any 35 other reason the enhanced compensation or consideration is received by any other person the amount referred to in clause (b) shall be deemed to be the income, chargeable to tax under the head "capital gains", of such other person' alnadnldd 14 in section 47 of the income-tax act clause (ii) shall be omitted with effect from the ~41 1st day of april 1988 40 substilutk:mof 15 for section 48 of the income-tax act, the following section shall be substituted with ~leciimb effect from the 1st day of april 1988 namely:-'48 (1) the income charpble under the head "capital gains" shall be computed-(a) by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely:-seddl48 moded ampdidl m di:daim (i) expenditure incurred wholly and exclusively in cannection with such transfer; (ii) the coil of acquisition ex the asset and the colt of any ~t thereto; (b) where the capital gain arises from the transfer of a long-term capital asset (hereafter in this section referred to, respectively, as long·trrm capital gain and long-term capil'l1 asset) by making the funher deductions specilird in sub-section (2) (2) the deductions referred to in clause (b) of sub-section (l) are the following, 5 namely:-(a) where the amount of long-term capital gain arrived at after making the deductions under clause (a) of sub-section (l) does not exceed ten thousand rupees, the whole of such amount; (b) in any other case, ten thousand rupees as increased by a sum equal to,-10 (i) in respect of long-term capital gain so arrived at relating to capital assets, being buildings or lands or any rights in buildings or lands or gold, bullion or jewellery,-(a) in the case of a company, ten per cenl of the amount of such gain in excess of ten thousand rupees; (b) in the case of any other assessee, fifty per cenl of the amount of such gain in excess of ten thousand rupees; 15 (ii) in respect of long-term capital gain so arrived at relating to other capital assets,-(a) in the case of a company, thirty per cen~ of the amount qf such gain in excess of ten thousand rupees; 20 (b) in any other case, sixty per cenl of the amount of such gain in excess of ten thousand rupees: provided that where the long-term capital gain relates to both categories of capital ac;scl~ referred to in sub-clauses (i) and (ii), the deduction of ten thousand rupees shall be allowed in the following order, namely:-2'i (1) the deduction shall first be allowed against long-term capital gain relating to the assets mentioned in sub-clause (i); (2) thereafter, the balance, if any, of the said ten thousand rupees shall be a1lowoo as deduction against long-term capital gain relating to the assets mentionoo in subclause (ii), 30 and the provisions of sub-clause (ii) shall apply as if references to ten thousand rupees therein were references to the amount of deduction allowed in accordance with clauses (1 ) and (2) of this proviso: 3s 40 provided further that, in relation to the amount referred to in clause (b) of sub-section (5) of section 45, the initial deduction of ten thousand rupees under clause (a) of this sub-section shall be reduced by the deduction already allowed under clause (a) of section 80t in the assessment for the assessment year commencing on the ]st day of april ]987 or any earlier assessment year or, as the case may be, by the deduction allowed under clause (a) of this sub-section in relation to the amount of compensation or consideration referred to in clause (a) of sub-section (5) of section 45 and references to ten thousand rupees in clauses (a) and (b) of this sub-section shall be construed as references to such reduced amount, if any (3) the deductions specified in sub-section (2) shall be made also for the purposes of computing any loss under the head "capital gains" in so far as it pertains to any longterm capital asset and, for this purpo~ any reference in that sub-section to the amount of long-term capital gain arrived at after malting the deductions under clause (a) of sub-section (1) shall be construed as reference to the amount of loss arrived at after making the said deductions'  amendment 16 in section 49 of the income-tax act, in sub-section (1 ) in clause (iii) for sub-clause of section 49 (b) the following sub-clause shan be substituted with effect from the 1st day of april 1988, 5 namely:-"(b) on any distribution of assets on the dissolution of a finn, body of individuals, or other association of persons, where such dissolution had taken place at any time before the 1st day of april, 1987, or" omission of section 52 17 section 52 of the income-tax act shall be omitted with effect from the 1st day of 10 april, 1988 18 in section 53 of the income-tax act, with effect from the 1st day of april, 1988,-arnerdment of section 53 (a) in the opening paragraph,-(i) after the words "assessee being an individual", the words "or a hindu undivided family" shall be inserted; 15 (it) for the words and brackets "capital asset (other than a short-tenn capital asset)", the words "long-term capital asset" shall be substituted; (b) the following explanation shall be added at the end namcly:-"explanation-in this section and in sections 54, 54b, 54d, 54e, 54f, 54g and 54h, references to capital gain shall be construed as refercnces to thc amount of capital 20 gain as computed under clause (a) of sub-section (1) of section 48" 19 in section 54 of the income-tax act, with effect from the 1st day of april, 1988,-amendment of section 54 (a) in sub-section (1 )-(i) for the words "where, in the case of an assessee being an individual", the words, brackets and figure "subject to the provisions of sub-section (2) where in the case of an 25 assessee being an individual or a hindu undivided family" shall be substituted; (li) the explanation at the end shall be omitted; (b) for sub-section (2) the following sub-section shall be substituted namely:-"(2) the amount of the capital gain which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer 30 of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case nol later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in 35 any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the central government may, by notif1c8lion in the official gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or consuuction of the new asset together with the amount so deposited shall be 40 deemed to be the cost of the new asset: provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period ~ified in sub-section (1) ihen,-(i) the amount not so utilised shall be charged wider section 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid explanajion-where any amount becomes chargeable under section 45 in accordance 10 with the proviso to this section, then,-(a) for the purposes of the deductions to be made under clause (b) of sub-section (1) of section 48, the initial deduction of ten thousand rupees under sub-section (2) of that section shall not be admissible; and (b ) nothing contained in section 53 shall apply in relation to such amount" 15 20 in section 548 of the income-tax act, with effect from the 1st day of april, 1988,-amendment of section 54b (a) in sub-section (1) for the words "where the capital gain arises", the words, braclcets and figure "subject to the provisions of sub-section (2) where the capital gain arises" shall be substituted; (b) for sub-section (2) the following sub-section shall be substituted, namely:-20 15 30 "(2) the amount of the capital gain which is not utilised by the assessee for the purchase of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (j) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the central government may,by notification in the official gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1) the amount, if any, already utilised by the assessee for the purchase of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset: provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase of the new asset within the period specified in sub-section (1) then,-(i) the amqunt not so utilised shall be charged under section 45 as the income of 35 the previous year in which the period of two years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid 40 exp/anation- where any amount becomes chargeable under section 45 in accordance with the proviso to this sub-section, then, for the purposes of the deductions to be made under clause (b) of sub-section (1) of section 48, the initial deduction of ten thousand rupees under sub-section (2) of that section shall not be admissible" 21 in section 540 of the income-tax act, with effect from the 1st day of april, 1988,-amendment of section b ie 540 (a) in sub-section (1) for the words "where the capital gain arises", the words, rac ets 45 and figure "subject to the provisions of sub-section (2), where the capital gain arises" shall be substituted; (b) for 8ub-section (2) the following sub-section shall be substituted namely:-"(2) the amount of the capital gain which is not utilised by the assessee for the purchase or construction of the new asset before the date of furnishing the return of income under section 139 shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due dme applicable in the case of the s assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in and utilised in accordance with, any scheme which the central government may, by notification in the official gazette, frame in this behalf and such return shall be accomp::micd by proof of such deposit; and, for the purposes of sub-section (1) the amount, if any, already utilised by 10 the assessee for the purchase or construction of the new asset togcther with the amount so deposited shall be deemed to be the cost of the new asset: 15 provided that if the amount depositf'd under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-scction (i), then,-(;) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid 20 explanaiion~ where any amount becomes chargeable under section 45 in accordance with the proviso to this sub-section, then, for the purposes of the deductions to be made under clause (b) of sub-section (1) of section 48, the initial deduction of ten thousand rupees under sub-section (2) of that section shall not be admissible   n in section 54e of the income-tall act, with effect from the 1st day of april 1988-(a) in sub-section (1) for the words "capital asset, not being a short-term capital asset", the words "long-term capital asset" shall be substituted; (b) in sub-section (2) for the words "capital assets other than short-term capital assets", the words "long-term capital assets" shall be substituted; 30 (c) sub-sections (3) (4) and (5) shall be omitted; (t!) sub-section (6) shall be renumbered as sub-section (3) and in that sub-section as so renumbered, the words, brackets letters and figure "or clause (a) or clause (b) of subsection (3)" shall be omitted 13 in section 54f of the income-tax act, with effect from the 1st day of april, 1988-amadmont ol-=cion 54p (a) in sub-section (1 )-35 (i) for the words "where in the case of an assessee being an individual" the words brackets and figure "subject to the provisions of sub-section (4) where in the case of an assessee being an individual or a hindu undivided family" shall be substituted; (ii) after the words "penod of one year before or", the words "two years" shall be inserted; 40 (iii) in the ezpianajion,-fa) clause (i) shall be omitted; (8) in clause (ii) the brackets and figures "(ii)" shall be omiued; (b) in sub-section (2) for the words "one year", the words "two years" shall be substituted; (c) after sub-section (3) thl~ folluwing sub-section shall be inserted namcly:-5 "(4) the amount of tilt: liet consideration which is not appropriatcd by the assessee towards the purcha~c of the new a~set made within onl: year before the dalc on which the transfer of thc original asset took place, or which is not utilised by him for the purchase or construction of the new asset bcfore the date of furnishing the return of income under section 139, shall be d:posilcd by him before furnishing such return [such deposit being 10 made in any case not latcr than the due date applicable in the case of the assessee for furnishing the return of income undcr sub-section ( i) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the central government may, by notification in the official gazetle, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the 15 purposes of sub-section (1) the amount, if any, al'eady utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset: provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-20 section (1) then,-(i) the amount by which -(a) the amount of capital gain arising from the transfer of the original asset not charged under section 45 on the basis of the cost of the new asset as provided in clause (a) or, as the case may be clause (b) of sub-section (1) 25 exceeds (b) the amount that would not have been so charged had the amount actually utilised by the assessee for the purchase or construction of the new asset within the period specified in sub-section ( i ) been the cost of the new asset, shall be charged under section 45 as income of the previous year in which the period of 30 three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw the unutilised amount in accordance with the scheme aforesaid explanation - where any amount becomes chargeable under section 45 in accordance with sub-section (2) or sub-section (3) or the proviso to this sub-section, then, for the 35 purposes of the deductions to be mad,: unjcr clause (b) of sub-section (1) of section 48, the initial deduction of len thousand rupees under sub-section (2) of that section shall not be admissible" 24 after section 54f of the income-lax act the following sections shall be inserted with insertion of effect from the 1st day of april, 1988, namely:-new sections 54gand54h 40 45 ext;mptio~ of captalgams on transfer of assets in cases of shiftina of industria[ ~ area '54g (1) subject to the provisions of sub-section (2) where the capilal gain arises from the transfer of a long-tenn capital asset, being machinery or plant or building or land or any rights in building or land used for the purposes of the business of an induslrial undertaking situate in an urban area, effected in the course of, or in consequence of, the shifting of such industrial undertaking (hereafter in this section referred to as the original asset) to any area (other than an uiban area) and the assessee has within a period of one year before or three years after the da1e on which die transfer took piace-(a) purchased new machinery or plant for the pwposcsof business of the induslrial undc:r1aking in the area to which ibe said unciea1akina is shifted; (b) acquired building or land or constructed building for the purposes of his business in the said area; (c) shifted the original asset and transferred the establishment of such undertaking 10 such area; and (d) incurred expenses on such oth~ purpose as may be specified in a scheme framed by 5 the ccnttal government for the purposes of this section, ·then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is 10 say,-(;) if the amount of the capital gain is greater than the cost and expenses incurred in 10 relation to all or any of the purposes mentioned in clauses (a) to (d) (such 'cost and expenses being hereafter in this section referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three 15 years of its being purchased, acquired, constructed or transferred, as the case may be, the cost shall be nil; or (ii) if the amount of the capital gain is equal to, or less than, the cost of the new asset, the capital gain shall not be charged under section 45; and for the purpose of computing in respect of the new asset any capital gain arising (rom its transfer within a 20 period of thrcc years of its being purchased acquired constructed or transferred, as the case may be, the cost shall be reduced by the amount of the capital gain explanalion- in this sub-section, "urban area" means any such area within the limits of a municipal corpordtion or municipality as the central government may, having regard to the population, concentration of industries need for proper planning of the area 25 and other relevant factors by general or special order declare to be an urban area for the purposes of this sub-section (2) the amount of capital gain which is not appropriated by the assessee towards the cost and expenses incurred in relation to all or any of the purposes mentioned in clauses (a) to (d) of sub-section (1) within one year before the date on which the transfer 30 of the original asset took place, or which is not utilised by him for all or any of the purposes aforesaid before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in and utilised in accordance with any scheme which the 35 central government may, by notification in the official gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and for the purposes of subsection (1) the amount if any already utilised by the assessee for all or any of the purposes aforesaid together with the amount so deposited shall be deemed to be the cost of the new asset: 40 provided that if the amount deposited under this sub-section is not utilised wholly or partly for all or any of the purposes mentioned in clauses (a) to (d) of sub-section (1 ) within the period specified in that sub-section then-(j) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of three years from the date of the transfer of the 45 original asset expires; and (ii) the assessee shall be entitled to withdraw such amount explanatwn- where any amount becomes chargeable under section 45 in accordance with the proviso to this sub-section, then, for the purposes of the deductions to be made under clause (b) of sub-section (j) of section 48, the initial deduction of len thousand rupees under sub-section (2) of that section shall not be admissible 54h the capital gains arising from the transfer of a capital asset, being shares in a company, to any such public sector company, as the central government may, by notification in the official gazette, specify, shall be exempt from the tax chargeable under section 45' 25 in section 55 of the income-tax act, with effect from the 1st day of april, 1988,-excmptioo of capital gains on lninsfer of shares to public sector companies amendment of section 55 10 (a) in sub-section (j), in clause (b), for the words ' "cost of any improvement", in relation to a capital asset,-', the following shall be substituted, nameiy:-, " cost of any improvement" ,-(1) in relation to a capital asset being goodwill of a business shall be taken to be nil; and 15 (2) in relation to any other capital asset,-'; (b) in sub-section (2), for the opening portion, the following shall be substituted, namely:-'for the purposes of sections 48 and 49, "cost of acquisition",-(a) in relation to a capital asset, being goodwill of a business,-20 (j) in the case of acquisition of such asset by the assessee by purchase from a previous owner, means the amount of the purchase price; and (jj) in any other case, shall be taken to be njl; (b) in relation to any other capital a~set,-' 26 in section 56 of the income-tax act, in sub-scction (2), after clause (ib), the amendment of section 56 2<; following clause shall be inserted with effect from the 1st day of april, 1988, namely:-'(jc) income referred 10 in sub-clause (x) of clause (24) of section 2, if such income is not chargeable 10 income-tax under the head "profits and gains of business or profession";' 27 in section 57 of the income-tax act, after clause m, the following clause shall be amendment of section 57 inserted, with effect from the 1st day of april, 1988, namely:-30 'ria) in the case of income of the nature referred to in sub-clause (x) of clause (24) of section 2 which is chargeable to income-tax under the head "income from other sources", deductions, so far as may be, in accordance with the provisions of clause (va) of sub-section (1) of section 36;' 28 in section 70 of the income-tax act, with effect from the 1st day of april, 1988,· amendment of section 70 35 (a) in sub-section (1 ),-(i) the brackets and figure "( j)" shall be omitted; (ii) the words 'other than "capital gains" , shall be omitted; (b) sub-section (2) shall be omitted 29 for section 71 of the income-tax act, the following section shall be substituted with effect from die 1st day of april, 1988, namely:-subi;tilution of new section for 5cction 7l sci off ofloss from one ~aaainst income from another "71 where in respect of any assessment year, the net result of the computation under any head of income is a loss, the assessee shall, subject to the provisions of this chapter, be entided to have the amount of such loss set off against his income, if any, assessable for 5 thai assessment year under any olher head" amendrnmt of aec:rian 72 30 in section 72 of the income-tax act, in sub-section (j ), the portion beginning with the words "where the assessee" and ending with the words "of that section or" shall be omitted with effect from the 1st day of april, 1988 31 for section 74 of the income-tax act, the following section shall be substituted 10 with effect from the 1st day of april, 1988, namely:-subltiaem f:a new sec:iion for section 74 losses under the head "capilal gains" 74 (1) where in respect of any assessment year, the net result of the computation under the head "capital gains" is a loss to the assessee and such loss cannot be or is not wholly set off against income under any other head of income in accordance with the provisions of section 71, so much of the loss as has not been so set off or, where he has no income under 15 any other head, the whole loss shall, subject to the other provisions of this chapter, be carried forward to the following assessment year, and-(a) it shall be set off against income, if any, under the head "capital gains" assessable for that assessment year; and (b) if the loss cannot be wholly so set off, the amount of loss not so set off shall be 20 carried forward to the following assessment year, and so on (2) no loss shall be carried forward under this section for more than eight assessment years immediately succeeding lhe assessment year for which the loss was first computed (3) any loss computed under the head "capital gains" in respect of the assessment year commencing on the 1st day of april, 1987, or any earlier assessment year which is carried 25 forward in accordance with the provisions of this section as it stood before the 1st day of april, 1988, shall be dealt with in the assessment year commencing on the 1st day of april, 1988, or any subsequent assessment year as foliows:-(a) in so far as such loss relates to short-term capital assets, it shall be carried forward and set off in accordance with the provisions of sub-sections (1) and (2); 30 (b) in so far as such loss relates to long-term capital assets, it shall be reduced by the deductions specified in sub-section (2) of section 48 and the reduced amount shall be carried forward and set off in accordance with the provisions of sub-section (1) but such carry forward shall not be allowed beyond the fowth assessment year immediately succeeding the assessment year for which the loss was fll'st computed' 35  32 in section soc of the income-tax act, with effect from the 1st day of april, 1988,-amendmau ofloclicn soc ~ in sub-section (2), for clause (h), the following clause shall be substituted, namely:-'(h) where the assessee is an individual or a hindu undivided family or where the assessee is an association of persons or a body of individuals consisting, in either case, 40 only of husband and wife governed by the system of community of property in force in the union lerritorics of dadra and nagar haveli and goa daman and diu any sums paid in the previous year by such assessee out of his or its income chargeable to 1ax,-(;) as subscription to any such security of the central government as that government may, by notification in the official gazette, specify in 1his behalf: or (ii) for the purposes of purchase or construction of a residential house property the construction of which is completed after the 31st day oj march, 1987, and the income from which is chargeable to tax 1dldel' the head "income from house property" (or which would, if it had not been used for the assessee's own resi~"have been chargeable to tax under s that head), where such payments are made towards or by way of - (a) any instalment or part payment of the amount due under any self-fmancing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or 10 (b) any instalment or part payment of the amount due to any company or c0-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or (c) re-payment of the amoldlt borrowed by the assessee from-(1) the central government or any state government, or (2) any bank, including a co-operative bank, or (3) the life insurance corporation, or 15 (4) any public company formed and registered in india with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in india for residential purposes which is approved for the purposes of cmuse (viii) of sub-section (1) of section 36, or 20 (5) any company in which the public are substantially interested or any cooperative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or (6) the assessee's employer where such employer is a public company; 25 (d) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee, but shall not include any payment towards or by way of -(a) the admission fee, cost of share and initial deposit which a  shareholder of a company or a member of a co-operative society has to pay for becoming such shareholder or member; or 30 (b) the cost of the land except where the consideration for the purchase of the house property is a composite amount and the cost of the land alone cannot be separately ascertained; or 35 (c) the cost of any addition or alteration to or renovation or repair of the house property which is carried out after the issue of the completion certificate in respect of the house property by the authority competent to issue such certificate or after the house property or any part thereof has either been occupied by the assessee or any other person on his behalf or been let out; or (d) any expenditure in respect of which deduction is allowable under the provisions of section 24; , ; 40 (b) in sub-section (4), in clause (ii), for the words brackets leuer and figure "referred to in clause (g) of sub-section (2)" the words brackets letters and figure "refoted to in clause (g) or clause (h) of sub-section (2)" shall be substituted; (c) after sub-section (6) and the explanaj;ons below that sub-section, the following sub-sections shall be inserted, namely:-'(7) in the case of an assessee referred to in clause (h) of sub-section (2), -(a) where any sums specified in sub-clause (ii) of that clause, with reference to which the deduction under sub-section (1) has been allowed are refunded to or received 5 back by the assessee in any previous year (hereinafter referred to as the relevant previous year), then,-10 (i) no deduction shall be allowed to the assessee under sub-section (1) with reference to any of the sums, specified in that sub-clause, paid in the relevant previous year; and (ii) the aggregate amount of the deductions so allowed in respect of the previous year or previous years preceding the relevant previous year shall be deemed to be the income of the assessee of the relevant previous year and shall be chargeable to tax under the head "income from other sources"; (b) where the house property referred to in sub-clause (ii) of that clause is 15 transferred by the assessee before the expiry of five years from the end of the financial year in which possession of such property is obtained by him, then,-(i) no deduction shall be allowed to the assessee under sub-section (1) with reference to any of the sums, specified in that sub-clause, paid in the previous year in which the transfer is so made; and 20 (ii) the aggregate amount of the deductions allowed under sub-section (j ) with reference to the sums specified in that sub-clause in respect of the previous year or previous years preceding the previous year referred to in sub-clause (i) of this clause shall be deemed to be the income of the assessee of the previous year in which the transfer is made and shall be chargeable to tax under the head "income 2;i from other sources"; (c) where the aggregate of any sums specified in sub-clause (ii) of that clause exceeds an amount of ten thousand rupees a deduction under sub-section (1) shall be allowed with reference to so much of the aggregate as does not exceed an amount of ten thousand rupees 30 (8) in this section,-(a) "life insurance corporation" means the life insurance corporation of india established under the life insurance corporation act, 1956; 31 of 1956 (b) "public company" shall have the same meaning as in section 3 of the companies act, 1956; 35 1 of 1956 (c) "transfer" shall be deemed to include also the transactions referred to in clause (j) of section 269ua'  33 in section 80cc of the income-tax act,-amendment of section socc (a) in sub-section (3) ill clause (c) for the words, figures and letters "the 1st day of april, 1987", the words, figures and letters "the lst day of april, 1990" shall be substituted; 40 (b) in suh-section (5), for the words "five years", the words "three years" shall be substituted 34 in the income-tax act after section socc, the following section shall be inserted lnnrtianof with effect from the 1st day of april, 1988, namely:-new aectim bocca "socca (1) where an assessee, being-(a) an individual, or (b) a hindu undivided family, or s (c) an association of pezsons or a body of individuals consisting, in either case, only of husband and wife governed by the system of community of property in force in the union tmitories of dadra and'nagar haveli and goa daman and diu, 10 has in the previous year deposited out of his income chargeable to tax any amount in accordance with such scheme as the central government may, by notification in the official gazette, specify in this behalf (hereafter in this section referred to as the national savings scheme), he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income of an amount equal to fifty per cent of so much of the deposits (excluding interest accrued and credited to the assessee's account) as do not exceed the amount of'twenty thousand rupees in the previous year is 20 (2) where any amount standing to the credit of the assessee under the national savings scheme in respect of which a deduction has been allowed under sub-section (1) together with the interest accrued on such amount is withdrawn in whole or in part in any previous year, an amount equaito fifty per cent of the amount so withdrawn shall be deemed to be the income of the assessee of that previous year in which such withdrawal is made and shall, accordingly, be chargeable to tax as the income of that previous year explanajion - for the removal of doubts, it is hereby declared that interest on the deposits made under the national savings scheme shall not be chargeable to tax except in the manner and to the extent specified in sub-section (2) " amerulment of section 8og 35 in section 80g of the income-tax act, in sub-section (5), in clause (i) for the words, brackets, figures and letter "or clause (23c)", the words, brackets, figures and letters "or clause (23aa) or clause (23c)" shall be substituted with effect from the 1st day of april, 1988 36 in section 80-0 of the income-tax act, with effect from the 1st day of april, 1988,-amendment of section 80-{) (a) in the opening paragraph,-30 (i) the portion beginning with the words "or having been received in convertible foreign exchange outside india" and ending with the words "and dealings in foreign exchange," shall be omitted; (ii) for the words "so received in, or brought into, india", the words "so received in 35 india" shall be substituted; (b) after the second proviso, the following proviso shall be inserted, namely:-"provided also that such income is received in india within a period of six months from the end of the previous year, or where the commissioner is satisfied (for reasons to be recorded in writing) that the assessee is, for reasons beyond his control, unab~e ~o do 40 so within the said period of six months, within such further period as the commissioner may allow in this behalf"; (c) in the explanation, for clause (ii), the following clause shall be substituted, namely:-'(ii) "foreign enterprise" means a person who is a non-resident' amendment ofsectim sorra 37 in section 80rra of the income-tax act in sub-section (1) for the words "of an amount equal to fifty per cent thereof' the following shall be substituted with effect from the 1st day of april 1988 namely:-5 "of an amount equal to,-(i) fifty per cent of the remuneration; or 46 of 1973 (ii) seventy-five per cent of such remuneration as is brought into india by, or on behalf of, the assessee in accordance with the foreign exchange regulation act, 1973, and any rules made thereunder, whichever is higher" omission of section sur 38 section 80t of the income-tax act shall be omitted with effect from the 1st day of 10 april, 1988 amadrnent ofsectim sou 39 in section 80u of the income-tax act, in sub-section (1) for the words "ten thousand rupees", the words "ftfteen thousand rupees" shall be substituted with effect from the 1st day of april, 1988 omission of 40 chapter vib of the income-tax act shall be omitted with effect from the 1st day of 15 chapter vib april, 1988 omission of chaptcrxi 41 chapter xi of the income-tax act shall be omitted with effect from the 1st day of april, 1988 omission of 42 section 115 of the income-tax act shall be omitted with effect from the 1st day of section 115 april, 1988 w 43 in the income-tax act, after chapter xiia, the following chapter shall be inserted with effect from the 1st day of april, 1988, namely:-insertion of newchapter xiib  'chapter xim special provisions rfla ting to certain companiesspecial povisdis relating to certain companies 115j (1) notwithstanding anything contained in any other provision of this act, where 25 in the case of an assessee being a company the total income as computed under this act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of april 1988 (hereafter in this section referred to as the relevant previous year) is less than thirty per cent of its book profit, the total income of such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to thirty per cenl of 30 such book profit explanation- for the purposes of this section, "book profit" means the net profit as shown in the profit and loss account for the relevant previous year prepared in accordance with the provisions of parts ii and iii of the sixth schedule to the companies act, 1956, as 1 of 1956-increased by -(a) the amount of income-tax paid or payable, and the provision therefor; or 35 (b) the amolults carried to any reserves, by whatever name called; or (c) the amount or amounts set aside to provisions made for meeting liabilities, contingencies or commitments; or (d) the amount by way of jxovision for loss of subsidiary companies; or (t) the amount or amounts of dividends paid or proposed; or 40 (f) the amount or amounts of expenditure relarable !o any income to which any of the provisions of chapter m applies, if any such amount is debited to the profit and loss account, and as reduced by,-(i) the amount or amounts withdrawn from reserves or provisions; or 5 (ii) the amount or amounts of income to which any of the provisions of chapter m applies, if any such amount is credited to the profit and loss account (2) nothing contained in su~section (1) shad affect the determination of the amounts in relation to the relevant previous year to be carried forward to the subsequent year or years 10 under the provisions of sub-section (2) of section 32 or sub-section (3) of section 32a or clause (ii) of su~section (1) of section 72 or section 13 or section 14 or sub-section (3) of section 14a or su~section (3) of section 80j: 44 in section 155 of the income-tax act, su~section (12) shall be omitted with effect from the 1st day of april, 1988 arnakimmt of sectim 155: 15 45 in section 192 of the income-tax act, with effect from the 1st day of june, 1981,-amrndmenl of section 192 (a) after sub-section (1), the following sub-sections shall be inserted, namely :-20 25 '(2) where, during the fmancial year, an assessee is employed simultaneously under more than one employer, or where he has held successively employment under more than one employer, he may furnish to the person responsible for making the payment referred to in sub-section (1) (being one of the said employers as the assessee may, having regard to the circumstances of his case, choose), such details of the income under the head "salaries" due or received by him from the other employer or employers, the tax deducted at source therefrom and such other particulars, in such form and verified in such manner as may be prescribed, and thereupon the; person responsible for making the payment referred to above shall take into account the details so furnished for the purposes of making the deduction under sub-section (1 ) 30 (2a) where the assessee, being a government servant or an employee in a public sector undertaking, is entitled to the relief under sub-section (1) of section 89, he may furnish to the person responsible for making the payment referred to in sub-section (1), such particulars, in such form and verified in such manner as may be prescribed, and thereupon the person responsible as aforesaid shall compute the relief on the basis of such particulars and take it into account in making the deduction under sub-section (1 ) 35 40 (2b) where an assessee who receives any income chargeable under the head "salaries" has, in addition, any income chargeable under any other head of income (not being a loss under any such head) for the same financial year, he may send to the person responsible for making the payment referred to in sub-section (1) the particulars of such other income and of any tax deducted thereon under any other provision of this chapter, in such form and verified in such manner a  may be prescribed, and thereupon the person responsible as aforesaid shall take such other income and the tax, if any, deducted thereon also into account for the purposes of making the deduction under sub-section (1): provided that this sub-section shall not in any case have the effect of reducing the tax deductible from the income under the head "salaries" below the amount that would be so deductible if the othcr income and the tax dcducted thereon had not been taken into account'; 45 (b) in sub-section (3), after the words, brackets and figure "in sub-section (j)", the words, brackets, figures and letters "or sub-section (2) or sub-section (2a) or sub-section (2b)" shall be inserted amelldnllllol '"" in aecdoo 194 of die incomo-ux act, in the rust proviso, in clause (bj, for the wmis of ieciion 194 "one thousand rupees", the words "two thousand five hundred rupees" shall be substituted with ·effect from the 1st day of june, 1987 47 in section 194a of the i:lcome-tax act, with effect from the 1st day of june, 1987,-amendmau ofsectim 194a (a) in sub-section (1), after the proviso, the following explanation shall be inserted, s namdy:-'explanalioll -for the purposes of this section, where any income by way of interest as aforesaid is credited to any account whether called "interest payable account" or "suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the 10 account of the payee and the provisions of this section shall apply accordingly'; (b) in sub-section (3), in clause (i), for the words "one thousand rupees", the words "two thousand five hundred rupees" shall be substituted 15 48 in section 1940 of the income-tax act after the proviso the following proviso shall be inserted with effect from the 1st day of june, 1987, namely :-amendment of section 194d "provided further that no deduction shall be made under this section in a case where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of or to the payee does not exceed five thousand rupees" 49 after section 1940 of the income-tax act, the following section shall be inserted with 20 effect from the 1st day of june 1987, namely ;-inrertion of new section 194e other incomes 'l94e (1) any person not being an individual or a hindu undivided family who is responsible for paying to a resident any income by way of -2s (a) fees for professional services, or (b) royalty or (c) fees for technical services, or (d) rent, or (e) commission (not bein!; insurance commission referred to in section 194d) or brokerage or (f) payments for goods supplied to government or any local authority or any 30 corporation or body established by or under a central state or provincial act or any company shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode whichever is earlier deduct income-tax thereon at the rates in force: 35 provided that no deduction shall be made under this section -(a) from any payments made as aforesaid before the 1st day of june 1987; or (b) where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the pel'son referred to in this sub-section to the account of or to the payee, does not 40 exc:eed-,ii) five thousand rupees, in the case of fees for professional services referred to in clause (a); or (ii) five thousand rupees, in the case of royalty or fees for technical services referred 10 respectively in clause (b) and clause (c); or (iii) thirty-six thousand rupres, in the case of rent referred to in clause (d); or (iv) five thousand rupees, in the case of commission or brokerage referred to in clause (e); or (v) one hundred thousand rupees, in the case of payment for goods referred to in 5 clause (f) (2) in this section, -(a) "professional services" means services rendered by a person in the course of carrying on a legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or such other profession as is 10 notified by the board for the purposes of section 44aa; (b) "royalty" shall have the same meaning as in explanation 2 below clause (vi) of sub-section (1 ) of section 9; (c) "fees for technical services" shall have the same meaning as in explanation 2 below clause (vii) of sub-section (1) of section 9; 15 20 (d) "rent" means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or any building (including factory building), together with furniture, fittings and the land appurtenant theteto, whether or not such building is owned by the payee, and which is chargeable to income-tax as the income of the payee under the head "income from house property" or "income from other sources"; (e) "commission or brokerage" includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in the course of any transaction relating to any asset, valuable article or thing 2'i exp/anajion-for the purposes of this section, where any income as aforesaid is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly' so in section 195 of the income-tax act, with effect from the 1st day of june, 1987,-30 ammdme:nt of sectioo 195 (a) for sub-section (1) the following sub-section shall be substituted, namely:-35 '( j) any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest (not being interest on securities) or any other sum chargeable under the provisions of this act (not being income chargeable under the head "salaries"or dividends) shallat the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whicheva is eardia, deduct income-tax thereon at the rates in force 40 explanation -for the purposes of this section, where any interest or other sum as aforesaid is credited to any account, whether called "interest payable account" or "suspense account" or by any other name; in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly'; (b) in sub-section (2),-45 (i) for the words "by general or special order" the words "in the prescribed manner" shall be substirutcd; (il) the following proviso shall be inserted at the end, namely :-"provided that this sub-section shall not apply to any payment to a foreign company by way of interest referred to in clause (v) or royalty referred to in clause (vi) or fees for technical savices referred to in clause (vii) of sub-section (1) of section 9" 5 51 after section 195 of the income-tax act, the following section shall be inserted with effect from the 1st day of june, 1987, namely :-insertion of new section 195a income jli!yable "net ofux" 10 "195a where, under an agreement or other arrangement, the tax chargeable on any income referred to in the foregoing provisions of this chapter is to be borne by the person by whom the income is payable then for the purposes of deduction of tax under those provisions such income shall be increased to such amount as would, after deduction of tax thereon at the rates in force for the fmancial year in which such income is payable, be equal to the net amount payable under such agreement or arrangement"  52 in section 197 of the income-tax act with effect from the 1st day of june, 1987,-amendment of section 197 (a) in sub-section (1 )-15 (i) for the words "where in the case of any income of any person other than a company", the words, brackets figure and letter "subject to rules made under sub-section (2a) where, in the case of any income of any person other than a company" shall be substituted: 20 (ii) in clause (a) for the figures and letter "194d", the figures and letters "194d, 194e" shall be substituted: (b) after sub-section (2) the following sub-section shall be inserted, namely :-"(2a) the board may, having regard to the convenience of assessees and the interests of revenue, by notification in the official gazette, make rules specifying the cases in which, and the circumstances under which, an application may be made for the grant of a certificate under sub-section (j ) and the conditions subject to which such certificate may 2s be granted and providing for all other matters connected therewith" 53 in sections 198,200,203,204 and 205 of the income-tax act after the figures and letter" 194d", the word, figures and letter", section 194e" shall be inserted with effect from the 1 st day ofj une, 1987 amendment of sections 198200 203,204 iiild 205 amendment of section 199 54 in section 199 of the income-tax act with effect from the 1st day of june, 30 1987,-- (a) after the figures and letter "194d", the word, figures and letter ", section 194e" shall be inserted: (b) for the words "made for the immediately following assessment year under this act", the words "made under this act for the assessment year for which such income is assessable" 35 shall be substituted 55 in section 202 of the income-tax act, with effect from the 1st day of june, 1987,-amendment of section 202 (a) for the words "levy tax", the words "recover tax" shall be substituted: (b; after the figures and letter "i94d", the word, figures and letter", section 194e" shall be~ ~ ammdrnent 56 in section 203 of the income-tax act for the portion beginning with the words "shall, of section 203 at the time of credit" and ending with the words "dividend to a shareholder", the following shall be substituted with effect from the 1st day of june, 1987, nameij:~ "shall, within such period as may be ~bed from the time of credit or payment of the sum, or, as the case may be, from the time of issue of a cheque or warrant for payment of any dividend to a shareholder" 5 berticnof 57 in the income-tax act, after section 203, the following section shall be inserted with newlectim effect from the 1st day of june, 1987, namely:-203a t ax-decluction -=oounl number 10 "203a (1) every person deducting tax in accordance with the provisions of sections 192 to 194, section 194a, section 194b section 194bb, section 194c, section 1940 section 194e and section 195, if he has not been allotted any tax-deductioo account number shall within such time as may be prescribed, apply to tl ~ income-tax officer for the allotment of a tax- deduction account number (2) where a tax-deduction acc-ount number has been allotted to a person, such person shall quote such number,-(a) in all challans for the payment of any sum in accordance with the provisions of 15 section 200; (b) in all cenificates issued in accordance with the provisions of section 203; (c) in all the returns delivered in accordance with the provisions of sections 206, 206a and 206b to any income-tax authority; and (d) in all other documents pertaining to such transactions as may be prescribed in the 20 interests of revenue" 58 for section 206 of the income-tax act the following section shall be substituted with effect from the 1st day of june, 1987 namely:-25 subslitution of new section forsectim 206 pmms dcductin& lax tofumish jfticrlbed 'rewms "206 the prescribed person in the case of every office of government, the principal officer in the case of every company the prescribed person in the case of every local authority or other public body or association every private employer and every other person responsible for deducting tax under the foregoing provisions of this chapter shall prepare, within the prescribed time after the end of each financial year, and deliver or cause to be delivered to the prescribed income-tax authority such returns in such form and verified in such manner and setting forth such particulars as may be prescribed" 30 59 for section 245a of the income-tax act the following section shall be substituted with effect from the 1st day of june, 1987, namely :-subslitutian of new aection for section 245a '245a in this chapter, unless the context otherwise requires-definitions (a) "bench" means a bench of the settlement commission; (b) "case" means any proceeding under this act for the assessment or re-assessment of any 35 person in respect of any year or years or by way of appeal or revision in connection with such assessment or re-assessment, which may be pending before an income-tax authority on the date on which an application under sub-section (1) of section 24sc is made: provided that where any appeal or application for revision has been preferred after the expiry of the period specified for the ftling of such appeal or application for revision under this act 40 and which has not been admitted such appeal or revision shall not be deemed to be a proceeding pending within the meaning of this clause; (c) "chairman" means the chairman of the settlement commission; (d) "income-tax authority" means an income-tax authority specified in section 116; (e) "member" means a member of the settlement commission, and includes the chairman and a vice-chairman; (f) "settlement commission" means the income-tax settlement commission constituted undez section 245b; (g) "vice-chairman" means a vice-chairman of the settlement commission' 5 amendment ofsoction 2458 60 in section 245b of the income-tax act, in sub-section (1) the brackets and words '(hereafter in this chapter referred to as "the settlement commission")' shall be omitted with effect from the 1st day of june, 1987 61 after section 245b of the income-lax act, the following sections shall be inserted with effect from the 1st day of june, 1987, namely:-"245ba (1) subject to the other provisions of this chapter, the jurisdiction, powers and authority of the settlement commission may be exercised by benches thereof insertion of new sections 2458alo 245bd juri!dicim and powers of settlement commission (2) subject to the other provisions of this section, a bench shall be presided over by the chairman or a vice-chairman and shau consist of two other members: (3) the bench for which the chainnan is the presiding officer shall be the principal 15 bench and the other benches shall be known as additional benches (4) notwithstanding anything contained in sub-sections (1) and (2) the chairman may authorise the vice-chairman or other member appointed to one bench to discharge also the functions of the vice-chairman or, as the case may be, other member of another bench (5) notwithstanding anything contained in the foregoing provisions of this section, and 20 subject to any rules that may be made in this behalf, when one of the persons constituting a bench (whether such person be the presiding officer or other member of the bench) is unable to discharge his functions owing to absence, illness or any other cause or in the event of the occurrence of any vacancy either in the office of the presiding officer or in the office of one or the other members of the bench, the remaining two persons may function 25 as the bench and if the presiding officer of the bench is not one of the remaining two persons, the senior among the remaining persons shall act as the presiding officer of the bench: provided that if at any stage of the hearing of any such case or matter, it appears to the presiding officer that the case or matter is of such a nature that it ought to be heard of by a 30 bench consisting of three members, the case or matter may be referred by the presiding officer of such bench to the chainnan for transfer to such bench as the chairman may deem fit (6) subject to the other provisions of this chapter, the places at which the principal bench and the additional benches shall ordinarily sit shall be such as the central 35 government may by notification in the official gazette, specify vice-chairman 10 leta cjwrmanor 245bb (1) in the event of the occurrence of any vacancy in the office of the chairman by reason of his death, resignation or otherwise, the vice-chairman or, as the case may be, such one of the vice-chairmen as the central government may, by notification in the official gazette, authorise in this behalf, shall act as the chainnan until the date on which a 40 new chairman, appointed in accordance with the provisions of this chapter to fill such vacancy, enters upon his office id dischlr&e his functions in certain circumstances (2) when the chairman is unable to discharge his functions owing to absence, illness or any other cause, the vice-chairman or, as the case may be, such one of the vice-chairmen as the centtal government may, by notification in the official gazeue, authorise 45 in this behalf, shall discharge lile functions of the chairman until the date on which the chairman resumes his duties 24sbc on the application of the assessee or the corrmissioner and after notice to them, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the chairman may transfer any case pending before one bench, for disposal, to another bench 5 powcrof owirmanro transfer cases fromooe benchro another decisionrobe by majcrity 10 245bo if the members of a bench differ in opinion on any point, the point shall be decided according to the opinion of the majority, if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ, and make a reference to the chairman who shall either hear the point or points himself or refer the case for hearing on such point or points by one or more of the other members of the settlement commission and such point or points shall be decided according to the opinion of the majority of the members of the settlement commission who have heard the case, including those who first heard it"  62 in section 245c of the income-tax act, with effect from the 1st day of june, 1987,-amendment ofsectim 245c 15 (;) in sub-section (1), for the proviso, the following proviso shall be substituted, namely:-"provided that no such application shall be made unless, -(a) the assessee has furnished the return of income which he is or was required to furnish under any of the provisions of this act; and (b) the additional amount of income-tax payable on the income disclosed in the 20 application exceeds fifty thousand rupees"; (ii) for sub-sections (1b) and (ic), the following sub-sections shall be subslituted, namely: -"(1 b) where the income disclosed in fhe application relates to only one previous year,-2'5 (i) if the applicant has not furnished a return in respect of the total income of that year (whether or not an assessment has been made in respect of the total income of that year), then, except in a case covered by clause (iii), tax shall be calculated on the income disclosed in the application as if such income were the total income; 30 (ii) if the applicant has furnished a return in respect of the total income of that year (whether or not an assessment has been made in pursuance of such return), tax shall be calculated on the aggregate of the total income returned and the income disclosed in the application as if such aggregate were the total income; 35 40 (iii) if the proceeding pending before the income-tax authority is in the nature of a proceeding for re-assessment of the applicant under section 147 or by way of appeal or revision in connection with such re-assessment, and the applicant has not furnished a return in respect of the total income of that year in the course of such proceeding for re-assessment, tax shall be calculated on the aggregate of the total income as assessed in the earlier proceeding for assessment under section 143 or section 144 or section 147 and the income disclosed in the application as if such aggregate were the total income (1 c) the additional amount of income-tax payable in respecl of the income disclosed in the application relating to the previous year referred to in sub-section (1 b) shall be, -(a) in a case referred to in clause (i) of that sub-section, the amount of tax 45 calculated under that clause; (b) in a case referred to in clause (u) of that sub-section, the amount of tax calculated under that clause as reduced by the amount of tax calculated on the total income returned for that year; (c) in a case referred to in clause (iii) of that sub-section, the amount of tax calculated under that clause as reduced by the amount of tax calculated on the total income assessed in the earlier proceeding for assessment under section 143 or section 144 or section 147" 63 in section 2450 of the income-tax act, with effect from the 1st day of june, 1987,-amendmenl of section 2450 5 (a) after sub-section (4), the following sub-section shall be inserted, namely :-"(5) subject to the provisions of section 245ba, the materials brought on record before the settlement commission shall be considered by the members of the concerned bench before passing any order under sub-section (4) and, in relation to the passing of such order, the provisions of section 245bo shall apply"; 10 (b) in sub-section (6), for the words "tax or penalty", the words "tax, penalty or interest" shall be substituted; (c) in sub-section (8), after the words "passed by the settlement commission", the words, brackets and figures "and nothing contained in the proviso to sub-section (1) of section 186 shall apply to the cancellation of the registration of a firm required to be made in pursuance of any such directions as aforesaid" shall be inserted 15 64 in section 245e of the income-tax act, for the proviso, the following proviso shall be substituted with effect from the 1st day of june, 1987, namely:-amendmenl of section , 245e "provided that no proceeding shall be r~-opened by the settlement commission under this section if the period between the end of the assessment year to which such a proceeding relates and the date of application f~r settlement under section 245c exceeds nine years" 20 6s in section 245f of the income-tax act, with effect from the 1st day of june, 1987,-amendment of sec lion 245f (a) in sub-section (3), the words "or by way of advance tax" shall be omitted; (b) sub-sections (5) and (6) shall be omitted 66 in section 245h of the income-tax act, with effect from the 1st day of june, 1987,-amendmenl ofscction 245h (a) in sub-section (1), the following proviso shall be inserted at the end, namely :-2s "provided that no such immunity shall be granted by the settlement commission in cases where the proceedings for the prosecution for any such ,offence have been instituted before the date of receipt of the application under section 245c"; (b) after sub-section (1 ), the following sub-section shall be inserted, namely :-"( la) an immunity granted to a person under sub-section (1) shall stand withdrawn 30 if such person fails to pay any sum specified in the order of settlement passed under subsection (4) of section 2450 within the time specified in such order or within such further time as may be allowed by the settlement commission, or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions of this act shall apply as if such immunity had not been granted"; 35 (c) in sub-~tion (2), the words "has not complied with the conditions subject to which the immunity was granted or that such person" shall be omitted 67 after section 245h of the income-tax act, the following section shall be inserted with effect from the 1st day of june 1987, namely :-insertion of ncwsection 245ha "245ha (1) the settlement commission may, if it is of opinion that any person who 40 made an application for settlement under section 245c has not co-operated with the power of settlemenl commission settlement commission in the proceedings before it, send the case back to the inoome-tax officer who shall thereupon dispose of the case in acccxdance with the provisions of this act as if no application undtz section 24sc had been made (2) for the purposes of sub-section (1) the income-cax officei' shall be cnti1jed to use all the materials and other information produced by the assessee before the settlement commission or the results of the inquiry held or evidence recorded by the settlement commission in the course of the proceedings before it as if such materials, information, inquiry and evidence had been produced before the income-tax officcl' or held or recorded by him in the course of the proceedings before him 10 (3) for the pwposes of the time-limit under sections 149, 153, 154, iss and 231 and for the pwposes of payment of interest under sections 243 and 244, in a case referred to in sub-section (1) the period commencing on and from \he date of the application to the settlement commission under section 245c and ending with the date of receipt by the income--tax officer of the ordtz'of the settlement commission sending the case back to 15 the income-tax officer shall be excluded; and where the assessee is a farm, for the pwposes of the time--limit for cancellation of regisb'ation of the farm under sub-section (1) of section 186, the period aforesaid shall likewisr, be excluded" 68 in section 245k of the income--tax act, with effect from the 1st day of jwle,'1987-amnirnent ofleclion 2451( (a) in clause (ii) the word "or" shall be added at the end; 20 (b) aftez clause (li), the following clause shall be inserted, namely ;-"(iii) the case of such person is sent back to the income-tax officer by the settlement cnmmission under section 245ha n omission of 69 section 245m of the income-tax act shall be omitted with effect from the 1st day of section 245m june 1987 25 70 in the income-tax act after section 272b, the following section shall be inserted with insertiooof effect from the lst day of june 1987 namely:-tlewlecbm 2128b 'p~for failure 10 -i, '!h di;''''),~   "272bb ( 1 ) if a person fails to comply with the provisions of section 203a he shall on an order passed by the income-tax officer pay by way of penalty a sum which may extend to five thousand rupees  f ~ o sectkm 203a 30 (2) no order under sub-section (1) shall be passed unless the person on whom the penalty is proposed to be imposed is given an opportunity of being heard in the matter n 71 in section 273b of the income-tax act for the words figures and letter "section 272b amendment of section or" the words figures letters and brackets "section 272b or sub-section (1) of section 272bb 273b or" shall be substituted with effect from the 1st day of june 1987 35 72 section 280za of the income-tax act shall be omitted with effect from the 1st day of omismnof section april 1988 28ctza 73 sections 285 and 286 of the income-tax act shall be omitted with effect from the 1st ~2fj day of june 1987 and 286 74 in section 293 of the income-tax act, the word "assessment" shall be omitted and amendment 40 shall be deemed to have been omitted with effect from the 1st day of march, 1987 ofsccti6n 293 75 in the eleventh schedule to the income-tax act, with effect from the 1st day of april, ~=::t 1988, -schedule, (a) in item 5 the following explanation shal! be inserted at the end, namely ;-'explanation-"blended flavouring concentrates" shall include, and shall be deemed always to have included, synthetic essences in any fonn ': (b) in item 22, in the explanation for the words ", for data processing and for transmission and reception of messages", the words brackets, figures and leltcrs "and for data processing (not being computers within the meaning of section 32ab)" shall be substituted |                             | consequential                          | 76    ||-----------------------------|----------------------------------------|--------|| the                         | following amendments (being amendments | of     || a                           |                                        |        || consequential nature) shall | be                                     |        || amendmenls                 | made                                   |        || in the income-tax act, -    | 5                                      |        |(a) (i) in section 32a, in the explanation below sub-section (2b) clause (b ) shall be omitted; (ii) in section 54e in explanation 1 below sub-section (1) in clause (d ), the explanation shall be omitted; (iii) in section 80l, in sub-section (1) in clause (ii) the explanation shall be 10 omitted; (iv) in section 193 in the proviso, in clause (iib) the explanation shall be omitted; (b) with effect from the 1st day ofjune, 1987,-(i) in section 272a, in sub-section (2) in clause (a) for the words figures and letter", section 285, section 285s or section 286", the words, figures and letter "or 15 section 285s" shall be substituted; (ii) in the fourth schedule, in part s, -(j) for the figures and brackets "206(2) ", in the heading at the beginning, the figures "206" shall be substituted; (2) in rule 7, the words brackets and figure "sub-section (j ) of' shall be omitted; 20 (e) with effect from the 1st day of april, 1988-(i) in section 2, in clause (18), in sub-clause (b), in item (8) in sub-item (e) for the words, brackets, letter and figures "where such subsidiary company fulfils the conditions laid down in clause (b) of section 108", the words "if the whole of the share capital of such subsidiary company has been held by the parent company or by its 25 nominees throughout the previous year" shall be substituted; (ii) in clause (il) of sub-section (4) of section loa in clause (i) of the explanation below section 44c, in sub-section (2) of section 75, in clause (b) of sub-section (2) of section 77 in section 80, in sub-section (3) of section 139, in clause (iv) of subsection (2) of section 141a, in sub-clause (iv) of clause (b) of sub-section (1) of section 143, in sub-section (4) of section 155, and in section 157, for the words, 30 brackets and figures "sub-section (l) of section 74", the words, brackets and figures "subsection (1) or sub-section (3) of section 74" shall be substituted: (iii) in section 41 in sub-section (5) the words 'or under the head "capital gains'" shall be omitted; (iv) in section 73, in the explanation occurring at the end, for the words, brackets 35 and figures "other than an investment company, as defined in clause (il) of section 109", the words 'other than a company whose gross total income consists mainly of income which is chargeable under the heads "interest on securities", "income from house property", "capital gains" and "income from other sources" , shall be substituted; 40 (v) in section 155, in sub-section (loa), for the words "capital asset, not being a short-teon capital asset", the words "long-tenn capital asset" shall be substituted; (vi) in section 236a ,-(1) for the words, braclcets and figures "in the case of an institution or fund referred to in clause (iii) of sub-section (2) of section 104", the words "where seventyfive per cent of the share capital of any company is throughout the previous year 4s beneficially held by an institution <x' fund established in india for a charitable pwpose the income from dividend whereof is exempt under ici;tion 11" shall be substituted; (2) for the words"by such a company as is refemd to in the said clause", the words "by such company" shall be substituted; 5 (vii) in section 246, in sub-section (2), in clause (a), the words and figures "or an order under section 104, made against the assessee, being a company" shall be omitted~ (viii) in section 280zb, in explanation 2, clause (a) shall be omitted  wealth-tax27ofl957 77 in section 2 of the wealth-tax act, 1957 (hereinafter referred to as the wealth-tax act), amendment 10 in clause (m), the following explanation shall be inserted at the end, with effect from the 1st ohection2 day of april, 1988, namely :-"explanation- a building or part thereof referred to in clause (iii), clause (iiia) or clause (iiib) of section 27 of the income-tax act shall be includible in the net wealth of the person who is deemed under the said clause to be the owner of that building or part thereof;" 15 78 in section 5 of the wealth-tax act, in sub-section (1), after clause (xxva), the amendment following clause shall be inserted with effect from the 1st day of april, 1988, namely :_ of section 5 "(xxvb) any deposits made under the national savings scheme referred to in section 80cca of the income-tax act;" 79 for section 22a of the wealth-tax act, the following section shall be s'jbstituted with sumtitutionof 20 effect from the 1st day of june 1987, namely:-~~ 22a defmitions '22a in this chapter, unless the context otherwise requires, -(a) "bench" means a bench of the settlement commission; (b) "case" means any proceeding under this act for the assessment or re-assessment of any person in respect of any year or years, or by way of appeal or revision in connection with such assessment or re-assessment which may be pending before any wealth-tax authority on the date on which an application under sub-section (1) of section 22c is made: provided that where any appeal or application for revision has been preferred after the expiry of the period specified for the filing of such appeal or application for revision 30 under this act and which has not been admitted, such appeal or revision shall not be deemed to be a proceeding pending within the meaning of this clause; (c) "chairman" means the chairman of the settlement commission; (4) "member" means a member of the settlement commission, and includes the chairman and a vice-chairman; 35 (e) "settlement commission" means the income-tax settlement commission constituted under section 245b of the income-tax act; (j) "vice-chairman" means a vice-chairman of the settlement commission; (g) "wealth-tax authority" means an income-tax authority specified in section 116 of the income-tax act who is treated as a wealth-tax authority under section 8' effect from the 1st day of june, 1987 22b 81 after section 22b of the wealth-tax act, the following sections shall be inserted with effect from the 1st day of june 1987, namely :-"22ba (1) subject to the other provisions of this chapter the jurisdiction powers and authority of the settlement commission may be exercised by benches thereof insertimlof new sections 22bato 22bd compositim of the settlement commission (2) subject to the other provisions of this section, a bench shall be preside4 over by 5 the chairman or a vice-chairman and shall consist of two other members (3) the bench for which the chairman is the presiding officer shall be the principal bench and the other benches shall be known as additional benches (4) notwithstanding anything contained in sub-sections (1) and (2), the chairman may authorise the vice-chairman or other member appointed to one bench to discharge 10 also the functions of the vice-chairman or, as the case may be other member of another bench (5) notwithstanding anything contained in the foregoing provisions of this section, and subject to' any rules that may be made in this behalf, when one of the persons constituting a bench (whether such person be the presiding officer or other member of 15 the bench) is unable to discharge his functions owing to absence, illness or any other cause or in the event of the occurrence of any vacancy either in the office of the presiding officer or in the office of one or the other members of the bench, the remaining two persons may function as the bench and if the presiding officer of the bench is not one of the remaining two persons, the senior among the remaining persons shall act as the 20 presiding officer of the bench: provided that if at any stage of the hearing of any case or matter, it appears to the presiding officer that the case or matter is of such a nature that it ought to be heard by a bench consisting of three members, the case or matter may be referred by the presiding officer of such bench to the chairman for transfer to such bench as the chairman may 2'i deem fit (6) subject to the other provisions of this chapter, the places at which the principal bench and the additional benches shall ordinarily sit, shan be such as the central government may, by notification in the official gazette, specify 22bb (1) in the event of the occurrence of any vacancy in the office of the 30 chairman by reason of his death, resignation or otherwise, the vice-chairman or, as the case may be, such one of the vice-chairmen as the central government may, by notification in the official gazette, authorise in this behalf shall act as the chairman until the date on which a new chairman, appointed in accordance with the provisions of this chapter to fill such vacancy, enters upon his office 35 vice-chainnlllllo aetas chainnanor to discharge his funclioos in certain circumstances (2) when the chairman is unable to discharge his functions owing to absence, illness or any other cause, the vice-chairman or, as the case may be, such one of the vice-chairmen as the central government may, by notification in the official gazette, authorise in this behalf, shall discharge the functions of the chairman until the date on which the chairman resumes his duties 40 22bc on the application of the assessee or the commissioner and after notice to them and after bearing such of them as may desire to be heard, or on his own motion without such notice, the chairman may transfer any case pending before one bench for disposal to another bench power of chainnmto transfer cues from one bench 10 another dccisiootobe by majority 22bd if the members of a bench differ in opinion on any point the point shall be 45 decided according to the opinion of the majority if there is a majority, but if the members are equally divided, they shall state the point or points on which they differ and make a reference to the chairman who shall either hear the point or points himself or refer the case for hearing on such point or points by one or mo~'e of the other members of the setdement commission and such point or points shall be decided according to the opinion of the majority of the members of the settlement commission who have heard the case, including those who ru'st heard it"  5 82 in section 22c of the wealth-tax act with effect from the 1st day of june, 1987,-amaldment of section 22c (;) in sub-section (1 j the fonowing proviso shall be inserted at the end, namely :-"provided that no such application shall be made unless the assessee has furnished the return of wealth which he is or was required to furnish under any of the provisions of this act"; 10 (ii) for sub-sections (jb) and (jc), the following sub-sections shall be substituted, namely:-n(jb) where the wealth disclosed in the application relates to only one previous year,-(i) if the applicant has not furnished a return in respect of the net wealth of that 15 year (whether or not an assessment has been made in respect of the net wealth of that year), then, except in a case covered by clause (iii), wealth-tax shall be calculated on the wealth disclosed in the application as if such wealth were the net wealth; - 20 (il) if the applicant has furnished a return in respect of the net wealth of that year (whether or not an assessment has been made in pursuance of such return), wealth-tax shall be calculated on the aggregate of the net wealth returned and the wealth disclosed in the application as if such aggregate were the net wealth; (iii) if the proceeding pending before the wealth-tax authority is in the nature of a proceeding fa- re-assessment of the applicant under section 17 or by way of appeal or revision in connection with such re-assessment, and the applicant has not furnished a return in respect of the net wealth of that year in the course of such proceeding for re-25 assessment, wealth-tax shall be calculated on the aggregate of the net wealth as assessed in the earlier proceeding for assessment under section 16 or section 17 and the wealth disclosed in the application as if such aggregate were the net wealth ( 1 c) the additional amount of wealth-tax payable in respect of the wealth disclosed in the application relating to the previous year referred to in sub-section (1 b) shall be,-30 (a) in a case referred to in clause (i) of that sub-section, the amount of wealth-tax calculated under that clause; (b) in a case referred to in clause (ii) of that sub-section the amount of wealthtax calculated under that clause as reduced by the amount of wealth-tax calculated on the net wealth returned for that year; 35 (c) in a cue refemd to in clause (iii) of that sub-section, the amount of wealthtax calculated under that clause as reduced by the amount of wealth-tax calculated on the net wealth isscssed in the earlier proceeding for assessment under section 16 or section 17", 83 in section 22d of the wealth-lax act, with effect from the lst day of june, 1987,-amendmalt ofaection 220 40 (a) afta' sub-scctim (4), the following sub-section shall be inserted, namely :-h(s) subject to the provisions of section 22ba, the marerials brought on record before the sealement commission shad be considered by the members of the concerned bench before passing any order undei' sub-section (4) and, in relation to the passing of such order, the provisions of iection 22bd shall apply-; (b) in sub-section (6) for the words "lax or penalty", the words "lax, penalty or interest" shall be substituk amendment 84 in section 22e of the wealth-tax act, for the proviso, the following proviso shall be of section substituted with effect from the lst day of june, 1987, namely :-22e "provided that no proceeding shall be re-opened by the settlement commission under this 5 section if the period between the end of the assessment year to which such a proceeding relates and the date of application for seuiement under section 22c exceeds nine years" 85 in section 22f of the wealth-tax act, sub-sections (5) and(6) shall be omitted with effect from the 1st day of june, 1987 amendment of section 22f 10 86 in section 22h of the wealth-tax act, with effect from the 1st day of j one, 1987,-amendment of section 22h (a) in sub-section (1) the following proviso shall be inserted at me end, namely :-"provided thal no such immunity shall be granted by the settlement commission in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of the application under section 22c"; (b) after sub-section (1 ) the following sub-section shall be inserted, namely :-15 "(1 a) nt immunity granted to a person under sub-section (1) shall stand withdrawn if such person fails to pay any sum specified in the order of settlement passed under subsection (4) of section 220 within the time specified in such order or within such further time as may be allowed by the settlement commission, or fails to comply with any other condition subject to which the immunity was granted and thereupon the provisions 20 of this act shall apply as if such immunity had not been granted"; (c) in sub-section (2) the words "has not complied with the conditions subject to which the immunity was granted or that such person" shall be omiued 87 after section 22h of the wealth-lax act, the following section shall be inserted with effect from the lst day of june, 1987, namely :_ 15 i n'lcrtion of ncwscction 22ha - "22ha (1) the settlement commission may, if it is of opinion that any person who made the application for settlement under section 22c has not co-operated with the settlement commission in the proceedings before it, send the case back to the wealth-lax officer who shall, thereupon, dispose of the case in accordance with the provisions of this act as if no application under section 22c had been made 30 power of settlement cornmissim toserdacue bade to the wealth-tax offia!r if !he uiciiioe does nat 00-~te (2) for the purposes of sub-section (1) the wealth-tax officer shall be entitled to use all the materials and other information produced by the assessee before the settlement commission or the results of the inquiry held or evidence recorded by the settlement commission in the course of the proceedings before it as if such materials, infonnation, inquiry and evidence had been produced before the wealth-tax officer or held or recorded by him in the course of the proceedings before him 35 (3) for the purposes of the time-limit under sections 17a, 32 and 35 and for the purposes of payment of interest under section 34a, in a case referred to in lub-section (1) the period commencing on and from the date of the application to the setdement commission undel'section 22c and ending with the dare of receipt by the wealth-tax officei' of the order of the setdement commission sending the case back 10 the wealth-lax officer, «) shall be excluded "  88 in section 22k of the wealth-tax act, with effect from the 1st day of june 1987-(a) at the end of clause (u), the word "or" shall be insertai;  (b) ifter ciiuie (u), ibe foiiowina c __  be mnect, nameiy:-"(ut) the cue of, iucb perdi is lent bact to abe wealdl-lax officer by the seulemmt commiuion under idc1ion 22ha," 19 section 22m of the wealth-tax act shall be omiued with effect from the 1st day of ~of os jwte, 1987 1iccian22m 90 in section 31 of the wealth-tax act, in sub-section (2a)-amcnihenl ollociion 31 (oj in the opening portion,-(i) for the words "the board may", the words "the commissioner may" shall be substituted ; 10 (ii) for the words "interest payable by an assessee", the words "interest paid or payable by an assessee" shall be substituted and shall be deemed to have'been substituted with effect from the 1st day of october, 1984; (iii) for the words ", on the recommendation made by the commissioner in this behalf, it is satisfied that" the words "he is satisfied that" shall be substituted; 15 (b) for clauses (i) and (ii) the following clauses shall be substituted and shall be deemed to have been substituted with effect from the 1st day of october 1984, namely:-"(i) payment of such amount has caused or would cause genuine hardship to the assessee; (u) default in the payment of the amount on which interest has been paid or was 20 payable under the said sub-section was due to circumstances beyond the control of the assessee; and" 91 in section 43 of the wealth-tax act, for the words "any ~sessment made", the words amendment "any order made" shall be substituted and shall be deemed to have been substituted with effect ofsec1ion43 from the ist day of march, 1987  25 gift-lox18 of 1958 92 in section 2 of the gift-tax act, 1958 (hereinafter referred to as the gift-tax act) in amendment clause (xii), the following explanation shall be inserted at the end, with effect from the 1st ofsection2 day of april, 1988, namely:-"explanation- a transfer of any building or part thereof referred to in clause (iii), clause 30 (uia) or clause (iiib) of section 27 of the income-tax act by the person who is deemed under the said clause to be the owner thereof made voluntarily and without consideration in money or money's worth, shall be deemed to be a gift made by such person;" 93 in section 42 of the gift-tax act, for the words "any assessment made", the words amendment "any order made" shall be substituted and shall be deemed to have been ~ubstituted with effcct of section 42 35 from the lst day of march, 1987  chapter iv indirfl7 taxes customs94 the customs tariff act, 1975 (hereinafter referred to as the customs tariff acl) shall ~l 40 be amended in the manner specified in the second schedule 1975 95 (1) in the case of goods mentioned in the first schedule to the customs tariff act, auxilimy or in that schedule, as amended from time to time, there shall be levied and collected as an duties of auxiliary duty of customs an amount equal lo fifty per cent of the value of the goods as cusiolm determined in accordance with the provisions of section 14 of the customs act, 1962 (hereinafter refmed to as the customs act) (2) sub-section (1) shall cease to have effect after the 31st day of march, 1988, except as respects things done or omitted to be done before such cesser; and section 6 of the general clauses act, 1897, shall apply upon such cesser as if the said sub-section had then been 5 repealed by a central act (3) the auxiliary duties of customs refmed to in sub-section (1) shall be in addition to any duties of customs chargeable on such goods under the customs act, or any other law for the time being in force (4) the provisions of the customs act and the rules and regulations made thereunder, 10 including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of t"e auxiliary duties of customs leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of customs on such goods under that act or those rules and regulations, as the case ~k ~ amendment of act 1 of 1944 96 in section 37 of the central excises and salt act, 1944 (hereinafter referred to as the central exc~ act), in sub-section (2), after clause (zvia) the following clause shall be inserted, namely:-"(mb) provide for the giving of credit of sums of money with respect to raw materials 20 used in the manufacture of excisable goods;" 97 the central excise tariff act, 1985 (hereinafter referred to as the central excise tariff act), shall be amended in the mamer specified in the third schedule amendment of act 5 of 1986 special duties of excise 98 (1) in the case of goods chargeable with a duty of excise under thc central excises act, as amended from time to time, read with any notification for the time being in force 25 issued by the central government in relation to the duty so chargeable (not being a notification providing for any exemption for giving credit with respect to, or reduction of duty of excise under the said act on such goods equal to, any duty of excise under the said act, or the additional duty under section 3 of the customs tariff act already paid on the raw material or component parts used in the production or manufaclure of such goods), there shall be levied 30 and collecled a special duty of excise equal to ten per cent of the amount so chargeable on such goods (2) sub-section (1) shall cease to have effect after the 31st day of march, 1988, except as respects things done or omitted to be done before such cesser; and scftion 6 of the general clauses act, 1897, shall apply upon such cesser as if the said sub-section had then been 35 loof1897 repealed by a central act (3) the special duties of excise referred to in sub·section (1) shall be in addition to any duties of excise chargeable on such goods under the central excises act, or any other law for the time being in force (4) the provisions of the central excises act, and the rules made thereunder, including 40 those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the special duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that act or those rules, as the case may be 99 the additional duties of excise (goods of special importance) act, 1957 (hereinafter 45 referred to as the additional duties of excise act), shall be amended in the manner specified in the fourth schedule ammdment of act 58 of 1957  foreign exchangeconsfrvation (fra vel) tax100 (1) this chapter extends to the whole of india commence-(2) it shall come into force on such date as the central government may, by notification menlo s in the official gazette, appoint 101 in this chapter, unless the context otherwise requires,-definitions 46 of 1973 (a) "authorised dealer" means a person for the time being authorised under section 6 of the foreign exchange regulation act 1973 to deal in foreign exchange; (b) "dealing", in relation to foreign currency, means purchasing or selling foreign currency; 10 (c) "foreign currency" means any currency other than indian currency in the form of notes, coins or travellers cheques; (d) "foreign exchange" means foreign currency; (e) "foreign travel" means a travel the whole or any part of which is outside india; 15 46 of 1973 (f) "money changer" means a person for the time being authorised under section 7 of the foreign exchange regulation act, 1973 to deal in foreign currency;  (g) words and expressions used but not defined in this chapter shall have the meanings assigned to them in the foreign exchange regulation act, 1973 46 of 1973 foreign exchange ~alion (travel) tax 101 (1) with effect from the date of commencement of this chapter, there shall be 20 levied on all foreign exchange released for any foreign travel by any person, a tax [hereafter in this chapter referred to as the foreign exchange conservation (travel) tax] at the rate of fifteen per cent of the rupee equivalent of the amount of foreign exchange released (2) in accordance with the rules made 'under this chapter, the foreign exchange conservation (travel) tax shall be collected by the authorised dealer or money changer and paid 25 to the credit of the central government 103 notwithstanding anything contained in this chapter, the central government may, power id by notification in the official gazeue, and subject to such conditions and limitations as may exempt be specified therein, exempt wholly or to such extent as may be specified in the notification, any release of foreign exchange for any foreign travel or class or category of foreign travel from 30 the payment of tax leviable under this chapter if that government is satisfied that it is necessary or expedient so to do, having regard to the purposes of the foreign travel and any other special circumstances 104 (1) every person intending to undertake a foreign travel and holding foreign penalties exchange in relation to which the tax payabl~ under this chapter has not been paid shall, in 3s addition to his liability to pay the tax, be liable to pay a penalty not exceeding twice the amount of the tax he would have paid under the provisions of this chapter (2) any penalty under this section may be adjudged, collected and paid t<? the ~redit of the central government by such authority and in such manner as may be specified 10 the rules made under this chapter proteciim of action taken in good failh los no suit or other legal proceeding shall lie a~ainst l;he central ~overnment and no suit or prosecution or other legal proceeding shall he agalost any officer of the central government ex' of the state government or against a~y authorised deal~ or money changer for anything in good faith done or intended to be done 10 pursuance of this chapter or the rules made thereunder 106 • (1) the central government may, by notification in the official gazette, make rules for carrying out the purposes of this chapter (2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for - (a) the collection of the foreign exchange conservation (ttavel) tax, the authorities by s whom adjudication of penalties or other functions under this chapter shall be discharged, the manner in which such tax or penalties due under this chapter shall be payable, the manner in which such tax or penalties shall be collected and paid to the credit of the central government and the procedure for claiming refund of any amount-paid under this chapter; 10 (b) the jxoccdure for adjudication of penalties; (c) appeals against orders made under this chapter, the manner in which and the time within which such appeals may be preferred and the fees payable therefor; (d) the returns and other particulars and information which may be required to be furnished for the purposes of this chapter, the persons or authorities by or to whom or which, and the intervals at which, such returns, particulars and information shall be 15 furnished; (e) any other matter which is to be, or may be, provided for by rules under this chapter  rules iii¥l miificaoons to be laid before parliamenl107 every rule made under this chapter and every notification issued under section 103 shall be laid as soon as may be after it is made or issued before each house of parliament while it is in session for a total period of thirty days which may be comprised in one session or in 2() two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or notification or both houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified fonn or be of no effect, as the case may be; so, however, that any such 25 modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification  chap1er vi miscellanfous108 in the schedule to the oil industry (development) act, 1974, -30 amendment of act 47 of 1974 (a) in si no r relating to crude oil, for the entry in column 3, the entry "rupees one thousand per tonne" shall be substituted; (b) in s1 no2 relating to natural gas, for the entry in column 3, the entry "rupees three hundred per thousand cubic metres" shall be substituted 109 in the customs and excise revenues appellate tribunal act, 1986, in section 5, 35 after sub-section (3), the following explanation shall be inserted, namely:-amendment of ad 62 of 1986 "expltjnjlion- for the purposes of sub-section (3) in computing the period during which a ~rson has been a member of the indian customs and central excise service, group 'a there shall be included any period during which the person has been a member of the indian customs service class i, or the central excise service class i, as the case may 40 be, of the indian revenue service immediately before the constitution of the indian customs and central excise service group 'a'"  declaration under the provisional coll-:ction of taxes act, 1931it is hereby dec1alu1 that it is expedient in the public interest that the provisions of clauses 94, 95, 97, 98, 99 and 108 of this bill shall hwe immediate effect under the provisional collection of taxes act 1931  (5'« section 2) part i income-tax paragraph a5  sub-p01yj81"oph iin the case of every individual or hindu undivided family or wu'egistered fmn or other association of persons or body of individuals whether incorporated or not, or every artificial juridical perop referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, not being a case to which sub-paragraph ii of this paragraph or any other paragraph of 10 this part applies- rates of income-tax15 (1) where the total income does not exceed rs 18000 (2) where the total income exceeds rs 18000 but does not exceed rs 25000 (3) where the total income exceeds rs 25,000 but does not exceed rs 50000 (4) where the total income exceeds rs 50,000 but does not exceed rs 1,00000 (5) where the total income exceeds rs 100000 20 nil; 25 per cent of the amount by which the total income exceeds rs 18000; rs 1,750 plus 30 per cent of the amount by which the total income exceeds rs 25,000; rs 9,250 plus 40 per cent of the amount by which the total income exceeds rs 50,000; rs 29250 plus 50 per cent of the amount by which the total income exceeds rs 1,00,000  sub-paragraph iiin the case of every hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of april,1987 exceeds rs 18000-rates of income-tax 25 30 (i) where the total income does not exceed rs 12,000 (2) where the total income exceeds rs 12,000 but does not exceed rs 20,000 (3) where the total incom~exceeds rs 20000 but does not exceed rs 40,000 (4) where the total income exceeds rs 40000 but does not exceed rs 60,000 (5) where the total income exceeds rs 60000 but does not exceed rs 1,00,000 (6) where the total income exceeds rs 1,00,000 35 nil; 2s per cent of the amount by which the total income exceeds rs 12,000; rs 2,000 plus 30 per cent of the amount by which the total income exceeds rs 20,000; rs 8,000 plus 40 per cent of the amount by which the total income exceeds rs 40,000; rs 16,000 plus 50 pet cent of the amount by which the total income exceeds rs 60,000; rs 36,000 plus s5 per cent of the amount by which the total income exceeds rs 1,00000 parograph b in the case of every co-operative society,-rates of income-tax 40 (1) where the total income does not exceed rs 10000 (2) where the total income exceeds rs 10,000 but does not exceed rs 20,000 (3) where the total income exceeds rs 20,000 15 per cent of the total income; rs 1500 plus 25 per cent of the amount by which the total income exceeds rs 10000; rs 4,000 plus 40 per cent of the amount by which the  total income exceeds rs 20,000 45 in the case of every registered fltttl, not being a case to which sub-paragraph ii of this paragraph applies,-(1) where the total income does not exceecl rs 10,000 (2) where the total income exceeds rs 10,000 but does not exceed rs 25,000 ~s 7!50 pi"" 7 per cent of the amount by which the total - income exceeds rs 25,000; 5 rs 2~00 pi"" is per cent of the amount by which the nil: s per cent of· the amount by which the low income exceeds rs 10,000; (3) where the total income exceeds rs 25,000 but does not exceed rs so,ooo (4) where the total income exceeds rs so,ooo but does not exceed rs 1,00,000 (5) where the total income exceeds rs 1,00,000 total mcome exceeds rs so,ooo; rs 10,000 pi"" 24 per cent of the amount by which the total income exceeds rs 1,00,000  sub-pamgraph nin the case of every registered fmn whose low income includes income dtzived from a profession carried on by it and the 10 income so included is not less than fifty-one per cent of such total inc:ome,- rales of incomlt-tax(1) where the iotal income does not exceed rs 10,000 nil; (2) where the total income exceeds rs 10,000 but does 4 per cent of the amount by which the tow income 15 not exceed rs 25,000 exceeds rs 10,000; c3) where the tocal income exceeds rs 2s,000 but does rs 600 plus 7 per cent of the amount by which the not exceed rs so,ooo low income exceeds rs 25,000; (4) whue the iotal income exceeds rs 50,000 but does rs 2,350 pi"" 13 per cent of the ameunt by which the not exceed rs 1,00,000 iotal income exceeds rs so,ooo; (!5) where the tow income exceeds rs 1,00,000 rs 8obso pi"" 22 per cent of the amount by which the 20 total income exceeds rs 100,000 explanalio1l-f(x' the purposes of this paragraph, "registered fum" includes an unregistered fum assessed as a registered fum under clause (b) of section 183 of the income-tax act p~d in the case of every local authority ,-25 rau ofincomlt-tax on the whole of the tow income 50 percent ptragrapit e in the case of a company,-30 rates of incomlt-tax i in the case of a domestic company ,-so per cent of the tow income; (1) where the company is a company in which the public are substantially intrzested 3s (2) where the company is not a company in which the public are substantially interested -60 per cent of the tow income; (i) in the case of a trading company (x' an investment company 40 55 per cent of the iotal income (ii) in any other case ii in the case of a company other than a domestic company,-4s (i) on so much of the iotal income as consists of-50 (a) royalties received from government or an indian concern in pursuance of an agreement made by it with the government or the indian concern after the 31st day of malch, 1961 but before the 1st day of april, 1976, or (b) fees for rendering technical services received from governmetlt or an indian concern in pursuance of an agreement made by it with the government or the indian concern after the 29th day of february, 1964 but before the 1st day of april, 1976, 50 per cent; and where such agreement has, in either case been approved by the central government 5 65 per cent (ii) on the balance if any of the total income  part ii rates r>r deduction oft ax at source in cert aln casesin every case in which under the provisions of sections 193, 194, 194a, 194b 194bb, 194d, 194e and 195 of the income-tax act, tax is to be deducted at the rates in force deduction shall be made from the income subject to deduction at 10 the following rates:-rate of income-tax i in the case of a person other than a company -(a) where the person is resident in india -10 per cent; (i) on income by way of interest other than "interest on securities" 15 40 per cent; (ii) on income by way of winnings from lotteries and crossword puzzles (iii) on income by way of winnings from horse races 40 per cent; (iv) on income by way of insurance commission 10 per cent; 20 (v) on income by way of interest payable on 10 per cent; (a) any security, other than a tax-free security, of the central or a state government; 25 (8) any debentures or other securities for money issued by or on behalf of any local authority or a corporation established by a central state or provincial act; (e) any debentures issued by a company where such debentures are listed on a recognised stock exchange in india in accordance with the securities contracts (regulation) act,1956 and any rules made thereunder; (vi) on income by way of rent -30 10 per cent; (a) where the rent payable exceeds rs 36,000 but does not exceed rs 48,000 20 per cent; (b) on the balance, if any 35 5 per cent; (vii) on income by way of payments received from the central government or a state government or any local authority or any corporation or body established by or under a central, state or provincial act or any company for supply of goods 20 per cent; (viii) on any other income (excluding interest payable on a tax-free security) (b) where the penon is not reaiden~ in india -(i) in the cue of a non-~t indbt -(a) 011 inveatment income and long-term capital pins 20 per cent; is percenl; (8) on income by way of inllerest payable on a tax-free secmity 10 (c) on income by way of rent -(1) where the rent payable ~ceeds rs 36,000 but does not exceed rs 48,000 10percenl, 'or income-tax in respect of the income at the rates preacribed in sub-paragraph i of para-15 ji'1iph a of part iii of this schedule, if such income had been the total income, whicheyer is higher, (2) on the balance, if amy 20 20 per cent, or incomc-iiix in respect of the income at the rates preacribed in sub-paaqraph i of para-jriph a 01 pin m of iiiii scbedule, if such mcome  been die  income, whiche~ is higher, 25 s percent, or (1) on income by way of payments received from die central government or a slate government or any local authority or any caporation or body established by or under a central, state or provincial act or any company for supply of goods income-tax in respect of the income at the rates prescribed in sub-paragraph i of paragraph a of part iii of this schedule, if such 30 income had been the total income, whichever is higher; (e) on the whole of othez income income-tax at 30 per cent of the &j:i'iount of income, or income-tax in respect of the income at the 35 rates prescribed in sub-paragraph i of parapaph a of part iii of this schedule, if such mcome had been the total income, whichever is highe'z; (a) in the case of any other pezson -40 is percent; (a) on income by way of interest payable on a tax-free security (8) on income by way of rent -(j) where the rent payable exceeds rs 36,000 but does not exceed rs 48,000  income-tax in respect of the income at the rates prescribed in sub-paragraph i of para-jfiph a of part iii of this schedule, if such so income had been the total income, whichevez is higher;  12) 011 iho 1iliiidii, if any rate of jocome-fii 2opercenl;5 ~ income-tax in respect of the income at &he 18101 prescribed in sub-parqraph i of paraaraph a of put in of this schedule, if such income had been the total income, whichever is higher; (c) on income by way of pltymenu received from me cellii'il government ~ state government ~ any local authority ~ any corporation ~ body esaablished by or under a cenlral, stale or provincial act or any company, for supply of goods s par cent, ~ income-tax in respect of the income at the rates prelcribed in sub-paragraph i of para-jl'aph a of part iii of this schedule, if such liu:orde had been the total income, whichever is higher; 15 (d) on the whole of the other ina,me 20 income-tax at 30 per cent of the amount of income, or income-tax in respect of the income at the rates prescribed in sub-paragraph i of para-jf8ph a of part iii of this schedule, if such idcorne had been the total income, whichever is higher; 2 in the case of a company -«(4) where the company is a domestic company-25 20 per cent; (;) on income by way of interest other than "interest on securities" 25 percent; (ii) on income by way of fees for professional services 25 percent; (iii) on income by way of royalty 25 per cent; 30 (iv) on income by way of fees for technical services 25 percent; (v) on income by way of commission or brokerage (excluding insurance commission) (w) on income by way of rent-35 10 percent; (a) where the rent payable exceeds rs 36,000 but does not exceed rs 48,000 20 per cent; (b) on the balance, if any 40 (wi) on income by way of payments received from the central 5 per cent: government or a state government or any local authority or any corporation or body established by or under a central, state or provincial act or any company for supply of goods 45 (viii) on ~ny other income (excluding interest payable on tax-free 21 5 per cent; secunty) (b) where the company is nol a domestic company -(i) on income by way of dividends pltyable by any domestic 25 per cent; company 50 (ii) on income by way of interest payable by government or an 25 per cent; indian concern on moneys borrowed or debt incurred by government or the indian concern in foreign currency (iii) on income by way of royalty payable by government or an 30 per cent; rate of income-tax 5 indian concc'nl in pursuance of an agreement made by it with the government (x' the indian concern after the 31st day of march, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the poviso to sub-section (la) of section 115a of the incometax act, to the indian concern 10 (iv) on income by way of royalty [not being royalty of the nature referred to in sub-item (b) (iji) ) payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern and which has been approved by the central government,-50 per cent; (a) where the agreement is made after the 31st day of march, 1961 but before the ist day of april, 1976 30 per cent; (b) where the agreement is made after the 31st day of march, 1976 15 (v) on income by way of fees for technical services payable by government or an indian concern in pursuance of an agreement made by it with the government or the indian concern and which has been approved by the central govemment-50 percent; 20 (a) where the agreement is made after the 29th day of february, 1964 but before the ist day of april, 1976 30 per cent; (8) where the agreement is made after the 31 st day of march 1976 - (vi) on income by way of interest payable on a tax-free security 44 per cent; 25 (vii) on any other income 6~ percent expkmation-for the purposes of this part, "investment income" "long-tenn capital gains" and "non-resident indian" shall have the meanings assigned to them in chapter xii-a of the income-tax act  part iii30  rallis rr calculalln(h~ cliarging incdme-taxin certain c'ases deducilng in<x>me-tax ffiom incdme oiargeabu: under 1hehead"saurles" cr anypa ymfnfreferredtoin~dn c1)ofsocidnilceand<dmpljl1iiu"adv afocetax"in cases in which income-tax has to be calculated under the flj"st proviso to sub-section (5) of section 132 of the income-tax actor charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 175 or sub-35 section (2) of section 176 of the said act or deducted under section 192 of the said act from income chargeable under the head "salaries" or deducted under sub-section (9) of section 80e of the said act from any payment referred to in the said sub-section (9) or in which th~ "advance tax" payable under chapter xvii-c of the said act has to be computed, at the rate or rates in force, such income-tax or, as the case may be "advance tax" [not being "advance tax" in respect of any income chargeable to tax under chapter xii or chapter xii-a or sub-section (la) of section 161 or section 164 or section 164a or section 167a of the income-tax act at the rates as specified in that chapter or section], shall be so calculated 40 charged, deducted or computed at the following rate or rates:- potagraph asuj;potagraph i 45 in the case of every individual or hindu undivided family or uruegistered fum or other association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the income-tax act, not being a case to which sub-paragraph n of this paragraph or any other paragraph of this part applies,-rates o/income-tax so nil; 2s per cent of the amount by which the total income exceeds ri 18,000; (1) where the total income does not exceed rs 18,000 (2) where the tolal income exceeds rs 18,000 but does not exceed rs 25,000 (3) where the total income exceeds rs 25,000 but does not exceed rs 50,000 (4) where the total income exceeds rs 50,000 but does not exceed rs 1,00,000 (5) where the total income exceeds rs 1,00,000 rs 1,750 plus 30 per cent of the amount by which the total income exceeds rs 25,000; rs 9,250 plus 40 per cent of the amount by which the total income exceeds rs 50,000; rs 29,2so plus 50 per cent of the amount by which the total income exceeds rs 1,00,000  sub-paragraph iiin the case of every hindu undivided family which at any time during the previous year has at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of april, 1988 exceeds 10 rs 18,000,- rates of income-tax15 20 (1) where the total income does not exceed rs 12,000 (2) where the total income exceeds rs 12,000 but does not exceed rs 20,000 (3) where the total income exceeds rs 20,000 but does not exceed rs 40,000 (4) where the total income exceeds rs 40,000 but does not exceed rs 60,000 (5) where the total income exceeds rs 60,000 but does not exceed rs 1,00,000 (6) where the total income exceeds rs 1,00,000 nil; 25 per cent of the amount by which the total income exceeds rs 12,000; rs 2,000 plus 30 per cent of the amount by which the total income exceeds rs 20,000; rs 8,000 plus 40 per cent of the amount by which the total income excee(js rs 40,000; rs 16,000 plus 50 per cent of the amount by which the total income exceeds rs 60,000; rs 36,000 plus 55 per cent of the amount by which the total income exceeds rs 1,00,000  paragraph b25 in the case of every co-operative society ,-rates o/income-tax (1) where the total income does not exceed rs 10,000 (2) where the total income exceeds rs 10,000 but does not exceed rs 20,000 (3) where the total income exceeds rs 20,000 | 15                               | per       | cent    | of                      ||----------------------------------|-----------|---------|-------------------------|| rs                              |           |         |                         || 1,500                            |           |         |                         || plus                             |           |         |                         || 25                               | per cent | of      | the amount by which the || total income exceeds rs 10,000; |           |         |                         || rs 4,000                        |           |         |                         || plus                             |           |         |                         || 40                               | per cent | of      | the amount by which the || total income exceeds rs 20,000 |           |         |                         |30  paragraph c sub-paragraph iin the case of every registered fmn, not being a case to which sub-paragraph ii of this paragraph applies,- rates of income-tax35 40 | (1)                                | where the total income does not exceed    ||------------------------------------|-------------------------------------------|| rs                                |                                           || 10,000                             |                                           || nil'                               |                                           || (2)                                |                                           || wh~                                |                                           || the total income exceeds           |                                           || rs                                |                                           || 10,000 but does                    | 5 per cent                               || not exceed                         |                                           || rs                                |                                           || 25,000                             | exceeds rs 10,000;                       || (3)                                |                                           || wh~                                |                                           || the total income exceeds           |                                           || rs                                |                                           || 25,000 but does                    | rs 750                                   || plus                               |                                           || 7 per cent                        | of                                        || not exceed                         |                                           || rs                                |                                           || 50,000                             | income exceeds                            || rs                                |                                           || 25,000;                            |                                           || (4)                                |                                           || wh~                                |                                           || the total income exceeds           |                                           || rs                                |                                           || 50,000 but does                    | rs 2,500                                 || plus                               |                                           || 15                                 | per                                       || not exceed                         |                                           || rs                                |                                           || 1,00,000                           |                                           || total                              |                                           || income exceeds                     |                                           || rs                                |                                           || 50,000;                            |                                           || (5) where the total income exceeds |                                           || rs                                |                                           || 1,00,000                           | rs 10,000                                || plus                               |                                           || 24                                 |                                           || per                                | cent                                      || the                                |                                           || amount by which                    |                                           || the                                |                                           || total                              |                                           || income exceeds rs 1,00,000       |                                           | sub-parogropii nin the case of every registered fmn whose total income includes income derived from a profession carried on by it and 4s the income so included is not less than flfty-one per cent of such total income,- rajes of ;ncoim-taxnil,' 4 per cent of the amount by which the tow income exceeds rs 10,000; (1) w~ the total incanc does not exceed rs 10,000 (2) whete the iot8l income aceeds ra 10,000 but does not exceed rs 25,000 48 rs 600 pilu 7 por cont of the amount by which the tow (3) w~ the tolal income exceeds ri 25,000 but does not exceed rs 50,000 (4) whore the lolal income exceeds ri so,ooo but does not exceed rs 1,00,000 inc~ oxccedi ri 25,000; ri 2,3so plus 13 per cenl of the amount by which the total income exceeds rs 50,000; (5) where the total income exceeds rs 1,00000 rs 8,8s0 plus 22 per cent of the amount by which the 5 total income oxceeds rs 1,00,000 explqllqlioa-for the purposes of ibis paragraph, "registered finn" includes an unregistered fum assessed as a registered fum under clause (b) of section 183 of the income-tax act  parogroplt d10 in the case of every local authorily,-rate oj'illcome-tax on the whole of the total income 50 per cenl in the case of a company,- rates of income-tax i in the case of a domestic company,-15 50 per cent of the total income; (1) where the company is a company in which the public are substantially interested (2) inhere the company is not a company in which the public are substantially interested -(i) in the case of a trading company or an investment company | 60    | per          | cent      | of    ||-------|--------------|------------|-------|| the   |              |            |       || total | income;      |            |       || (ii)  |              |            |       || in    | any          | other case |       || 55    | per cent of | the        | total | ii in the case of a company other than a domestic company,-(i) on so much of the total income as consists of-(a) royalties received from government or an indian concern in pursuance of an agreement made by it with the government or the indian concern after the 31st day of march, 1961 but before the lst day of april, 1976, or 30 (b) f=- for renderins technical services received from government or an indian concern in pursuance of an agreement made by it with the govomment or the indian concern after the 29th day of february, 1964 but before the 1st day of april, 1976, 4uld where such qrcement has, in either case, been approved by the central government (ji ) on the balance, if any, of the total income  part iv [see section 2(7)(,) ] rulbs r)r computation of net agricultural incomerid, 1 -aaricultural income of the nature referred to in sub-clause (a) of clause (1) of section 2 of the income-tax act shall be computed is if it were income chargeable to income-tax under that act under the head "inc:!ome from otht"l'sold'ces" and the provisions of sections s7 to s9 of that act shall, so far as may be, apply accordingly: provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to section 40a therein shall be construed 88 not including a reference to sub-sections (3) nl (4) of section 40a 5 rule 2 -agricultural income of the  bn'e referred to in sub-clause (b) or stjbc1ause (c) of clause (1) of section 2 of the income-tax act [other than income derived cram  y building required as a dwelling house by the receiver of &he rent or revenue or the cultivator or the recei~ of rent-in-kind referred to in the said sub-clause (c) ] shall be computed as if it were income chargeable to income-tax under that act under the head "profits and gains of business or profession" and the provisions of sections 30, 31, 32, 34, 36, 37, 38,40, 40a [other than sub-sections (3) and (4) thereof], 41, 43 and43a 10 of the income-tax act shall, so far as may be, apply a:cordingly rule 3 -agricultural income of the  tore referred to in sub-clause (c) of clause (1) of section 2 of the income-tax act, being income derived from any building required as a dwelling house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that act under the head "income from house property" and the provisions of sections 23 to 15 27 of that act shall, so far as may be, apply accordingly: provided that sub-section (2) of the said section 23 shall apply subject to the modifications that the references to "total income" therein shall be construed as references to net agricultural income and that the words, figures and letter "and before making any deduction under chapter vi-a" shall be omitted rule 4 -notwithstanding anything contained in any other provisions of these rules, in a case where the assessee 20 derives income from sale of tea grown and manufactured by him in india, such income shall be compulcd in accordance with rule 8 of the income-tax rules, 1962, and sixty per cent of such income shall be regarded as the agricultural income of the assessee rule 5 -where the assessee is a partner or a registered fum or an unregistered firm assessed as a registered fum under clause (b) of section 183 of the income-tax act, which in the previous year has any agricultural income, or is a partner of 25 an unregistered fmn which has not been assessed as a registered fum under clause ( b) of the said section 183 and which in the previous year has either no income chargeable to tax under the income-tax act or has total income not exceeding the maximum amount not chargeable to tax in the case of an unregialrftd finn but has any agricultural income, then, the agriculbu'a1 income or lou of the finn shall be computed in accordance with theie rules and his share in the airicultural income or loss of the fum shall be compuled in the manner laid down in sub-section (l), sub-section (2) and sub-section 30 (3) of section 67 of the income-tax act and the share so compulcd shall be regm-ded as the agricultural income or loss of the 1s8es8ee rule 6 -where the assessee is a member of an association of persons or a body of individuals (other than a hindu undivided family, a company or a finn) which in the previous year has either no income charpable to tax under the income-tax act or has total income not oxceedina the maximum amount not cflarpable to tax in the cue or an association 35 of persons or a body of individuals (other than altindu undivided family, a company or a fum) but has any i8ricultural income, then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so compulcd shall be re,arded as the qricultural income or lolls or the  rult 7 -where the result of the computation tor the previous year in respect of any source of agricultural income is a 40 loss, such loss shall be set oft apinsl the income of the assessee, if any, for that previous ytar from any other source of aartculbnl income: provided that where the assessee ill a partner of an unregistered finn which has not been assessed as a registered fum underclalbe (b) of 8ection 183 of the lncome-tax act or is a member of an lssociation of persons or a body of individuals and the share of the ibses8ee in the agricultural ihcome of the finn, association or body,  the case may be, is a loss, such 45 loss shall not be let oft against any ihcome of ihe aaessee from any other source of agricultural income rult 3 -any sum payable by 1he 8sses8ee on lccount or any tax levied by the state government on the qricultural income shall be deducted in eomputina the ipicultura1 income rul,9 -(1) where the •••• ee  ill the jirevious yeti ~vant ib die assessment year commencing on the 1st day of april, 1987, any agriculbjral income and the net resull of the computation of the agriculbjral income of the assessee for anyone or more of the previous years relevant to the assessment years commencing on the 1st day of april, 1979 or the 1st day of april, 1980 or the 1st day of april, 1981 or the 1st day of april, 1982 or the 1st day of april, 1983 or the 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april, 1986, is a loss, then, for the purposes of sub-s section (2) of section 2 of this act,-m (;) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1979 to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment yew commencing on the 1st day of april, 1980 or the 1st day of april, 1981 or the 1st day of april, 1982 or the 1st day of april, 1983 or the 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april 1986 (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 10 1980 to the extent, if any such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1981 or the 1st day of april 1982 or the 1st day of april, 1983 or the 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april, 1986, (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april i 1981 to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to is the assessment year commencing on the 1st day of april, 1982 or the 1st day of april 1983 or the 1st day of april 1984 or the 1st day of april, 1985 or the lst day of april, 1986, (iv) the loss so computed for the previous year relevant to the assessment year commencing on the lst day of april, , 1982, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1983 or the 1st day of april, 1984 or the 1st day of april, 1985 2d or the 1st day of april, 1986, (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april 1983, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to / the assessment year commencing on the 1st day of april, 1984 or the 1st day of april, 1985 or the 1st day of april, 1986, (vi) the loss so computed for the previous year relevant to the assessment year commencing on the lst day of april 2s 1984 to the extent, if any, such loss has not been set off against the agricultural income for the"previous year relevant to i the assessment year commencing on the 1st day of april, 1985 or the 1st day of april, 1986, (vii) the loss so computed for the previous year relevant to fhe assessment year commencing on the lst day of april, 1985, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1986, and 30 (viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1986, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1 st day of april, 1987 i (2) where the as~ssee has in the previous year relevant to the assessment year commencing on the 1st day of april, 3s 1988 or if by virtue of any provision of the income-tax act, income-tax is to be chitrged in respect of the income of a period othej' than that previous year, in such othez period, any agricultural income and the net result of the computation of the agricultural income of the assessee for anyone or more of the previous years relevant to the assessment years commencing bn the 1st day of april, 1980 or the 1st day of april, 1981 or the 1st day of april 1982 or the 1st day of april, 1983 or the 1st day of april, 1984 or the 1st day of april 1985 or the 1st day of april, 1986 or the 1st day of 40 april, 1987, is a loss, then, for the purposes of sub-section (6) of section 2 of this act,--(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1980, to the extent, if any, such loss has not been set qff against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1981 or the 1st day of april, 1982 or the 1st day of april, 1983 or the 1st day of april, 1984 or the 1st day of april 1985 or the 1st day of april, 1986 or the 1st day of april, 1987, 45 (ii) the loss so computed for the previous year relevant to the asessment year commencing on the 1st day of april, 1981, to the extent, if any such loss has not been set off against abe agricultural income for the previous year relevant to the aaeasmeal ye&l cciiliiiedcing oil the lit day d april 1982 qi' abe lit ddy of apil, 1983 qi' abe lit day of apil 1984 or the iii day of april 198' 01' the 1st day of april 1986 qi' the lit day of april 1987 (iii) the loss so computed for the previous year relevant to the usessmau year commencina oil abe 1st day of april 1982 to the extent, if any such loss hu not been set off apinst the agricultural income for the previous year !devant to s the assessment year commencing oil the 1st day d april 1983 or the 1st day of april 1984 or die 1st day of april, 1985 or the 1st day of april, 1986 01' the 1st day of april 1987 (n) the loss 10 computed for the previous year relevant to the assessment year commencing on the 1st day of april 1983 to the extent, if any such loss has not been set off against the agricultural income for the previous year !devant to the assessment year commencing on the lst day of april 1984 or the 1st day of april 1985 or the iii day of apil 1986 10 or the 1st day of april 1987 (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 1984 to the extent, if any such loss has not been set off against the agricultural income for the previous year !devant to the assessment year commencing on the 1st day of april, 1985 or the 1st day of april, 1986 or the 1st day of april 1987, (vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april, 15 1985, to the extent, if any, such loss has not been set off against the agricultural income fol' the previous year !devant to the assessment year commencing on the ist day of april 1986 or the 1st day of april 1987, (vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april 1986, to the extent, if any, such loss has nol been set off against the agricullural income for the previous year !devant to the assessment year commencing on the lst day of april, 1987, and 20 (viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april 1987, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of april, 1988 or the period aforesaid (3) where a change has occurred in the constitution of a fum, nothing in sub-rule (1) <x' sub-rule (2) shall entitle the 25 firm to set oft so much of the loss proportionate to the share of a retired or deceased partner computed in the iil8i1jle'l' laid down in sub-section (1), sub-section (2) and sub-section (3) of section 67 of the income-tax act as exceeds his share of profits, if any, of the previous year in the fum, or entitle any partner to the benefit of any portion of the said loss (computed in the manner aforesaid) which is nol apportionable to him (4) where any person deriving any agricultural income from any source has been succeeded in such capacity by idolbet 30 person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person other than the person incwting the loss, to have it set off undcz sub-rule (1) or, as the case may be, sub-rule (2), (5) notwithstanding anything contained in this rule, no loss which has not been determined by the incometax officer under the provisions of these rules or the rules contained in part iv of the fu'st schedule to the finance act, 1979, or of the first schedule to the finance (no2) act, 1980 or of the ru'st schedule to the finance act, 1981, or of the first schedule to the finance act, 1982 or of the first schedule to the finance act, 1983, or of the first schedule to the finance act, 1984, or of the first schodulc to the fmance act, 1985 or of the first schedule to the finance act, 1986, shall be set off under sub-rule (1) or, as the case may be, sub-rule (2) 21 111m 35 441119111 16111981 14111982 11 1119kl 21111984 32111985 23111986 40 rule 10 -where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil rule 11 -the provisions of the income-tax act relating to procedure for uscssment (including the provisions of section 288a relating to rounding off of income) shall with the necessary modifications, apply in relati~n to the computation of the net agricultural income of the assessee as they apply in relali90 to the assessment of the total mcome rule 12 -for the purposes of computing the net agricultural income of the assessee, the income-tax officer sba1l have the same powers as he has under the income-tax act for the purposes of assessment « the total income  (5« section 94)part i in the first schedule to the customs tariff act,-(;) in chapter 27 in sub-heading no 270900 for the entry in column (4) the entry "50% plus rs 1000 per 5 tonne" shall be substituted; (ii) in chapter 28 in sub-heading nos 280110 280120 280130 280200 280300 280410 280421 280429 280430 280440 280450 280461 280469 280470 280480 280490 280511 280519 280521 280522280530 280540 280610 280620 280700 280800 280910 280920 281000 281111 281119 281121281122281123281129281210 281290281310281390281410281420281511281512 10 281520281530281610281620281630281700 281810 281820 281830 281910 281990 282010 282090 282110 282120 282200 282300 282410 282420 282490 282510 282520 282530 282540 282550282560 282570 282580 282590 282611 282612 282619 282620 282630 282690 282710 282720282731 282732282733282714: 282735 282736 282737 282738 282739 282741 282749 282751282759282760282810282890282911 282919 282990 283010 283020 283030 283090 15 283110283190283210283220283230283311 283319 283321 283322 283323 283324 283325 283326283327 283329, 283330 283340283410283421283422 283429 283510 283521283522 283523 283524 283525 283526~ 283529 283531 283539 283610 283620 283630 283640 283650 283660283670 283691 283692 283693283699283711283719 283720 283800 283911 283919 283920283990284011 284019 284020 284030, 284110 284120 284130 284140, 284150, 284160, aj 284170, 284180, 284190, 284210, 284290 284310, 284321, 284329, 284330, 284390, 284410, 284420, 284430, 284440, 284450, 284510, 284590, 284610, 284690, 284700, 284810, 284890, 284910, 284920, 284990, 285000 and 285100, for the entry in column (4), the entry "80% pills rs 25 per kg" shall be substituted;  (iii) in chapter 29,-(1) in sub-heading nos 290110, 290121, 290122 290123, 290124, 290129, 290211 and 290219, for the entry in column (4) , the entry "80% plus rs 25 per kg" shall be substituted; (2) in sub-heading nos 290220 and 290230, for the entry in column (4), the entry "50% plus rs 10 per kg" shall be substituted; (3) in sub-heading nos 290241, 290242 and 290243, for the entry in column (4), the entry "80% plus rs25 30 per kg" shall be substituted: (4) in sub-heading no 290244, for the entry in column (4), the entry "50% pills rs 10 per kg" shall be substituted; (5) in sub-heading no 290250, for the entry in column (4), the entry "80% pills rs 25 per kg " shall be substituted; (6) in sub-heading no 290260, for the entry in column (4), the entry "50% plus rs 10 per kg" shall be 35 substituted; (7) in sub-heading nos 290270,290290,290311,290312,290313,290314, 290315, 290316, 290319, 290321, 290322, 290323, 290329,290330, 290340, 290351, 290359 290361, 290362, 290369, 290410, 290420, 290490, 290511, 290512, 290513, 290514, 290515, 290516, 290517, 290519, 290521, 290522, 290529, 290531, 290532, 290539, 290541, 290542, 290543, 290544, 290s49, 290550, 290611, 290612, 40 290613, 290614, 290619, 290621, 290629, 290711, 290712, 290713, 290714, 290715, 290719, 290721, 290722, 290723, 290729, 290730, 290810, 290820, 290890, 290911, 290919, 290920, 290930, 290941, 290942, 290943, 290944, 290949, 290950, 290960, 291010, 291020, 291030, 291090, 291100, 291211, 291212, 291213, 291219, 291221,291229,291230,291241,291242, 291249, 291250, 291260 291300, 291411,291412,291413 and 291419, for the entry in column (4) the entry" 80% plus rs 25 per kg" shall be 45 substituted; (8) in sub-heading no 291421, for the entry in column (4) the entry "150% pills rs 15 per kg" shall be substituted; 19) in sub-heading nos 291422 291423, 291429, 291430 291441 291449, 291450 and 291461 for the entry in column (4), the entry "80" pills rs 25 per kg" shall be substituted; (10) in sub-heading no 291469, for the entry in column (4), the entry "iso" pills rs 15 per kg" shall be substituted;  5 (ll) in sub-heading nos 291470, 291511, 291512, 291513, 2915:21, 291522, 291523, 291524, 291529, 291531, 291532, 291533, 291534,291535, 291539, 291540, 291550, 291560, 291570, 291590, 291611, 291612, 291613, 291614, 291615, 291619, 291620, 291631, 291632, 291633, 291639, 291711, 291712, 291713,291714,291719,291720,291731, 291732, 291733,291734 and 291735, for the entry in column (4), the entry "~pllls rs 25 per kg" shall be substituted; 10 (12) in sub-heading no 291736, for the entry in column (4), the entry "150% pills rs 15 per kg"shall be substituted; (13) in sub-heading no 291737, for the entries in columns (4) and (5), the entries "150% pills rs 15 per kg" and "140% plus rs 15 per kg" shall, respectively, be substituted; 15 (14) in sub-heading nos 291739,291811,291812,291813,291814, 291815, 291816, 291817, 291819, 291821, 291822, 291823, 291829, 291830, 291890, 291900, 292010, 292090, 292111, 292112, 292119, 292121,292122,292129 and 292130, for the entry in column (4), the entry "80% plus rs 25 per kg" shall be substituted; (15) in sub-heading nos 292141, 292142 and 292143, for the entry in column (4), the entry "150% plus rs15 per kg" shall be substituted; 20 (16) in sub-heading no 292144, for the entry in column (4), the entry "80% plus rs 25 per kg" shall be substituted; (17) in sub-heading no 292145, for the entry in column (4), the entry "150% plus rs 15 per kg" shall be substituted; (18) in sub-heading nos 292149 and 292151, for the entry in column (4), the entry "80% plus rs 25 per kg" shall be substituted; 2~ (19) in sub-heading no 292159 for the entry in column (4), the entry "150% plus rs 15 per kg" shall be substituted; (20) in sub-heading nos 292211, 292212 292213, 292219, 292221, 292222,292229292230292241, 292242 and 292249, for the entry in column (4) the entry "80% plus rs 25 per kg" shall be substituted; 30 (21) in sub-heading no 292250, for the entry in column (4), the entry "150% plus rs 15 per kg" shall be substituted; (22) in sub-heading nos 292310,292320, 292390, 292410, 292421 and 292429 for the entry in column (4), the entry "80% plus rs 25 per kg" shall be substituted; (23) in sub-heading no 292511 for the entry in column (4), the entry "rs 75 per kg" shall be substituted; 35 (24) in sub-heading nos 292519, 292520, 292610, 292620 292690, 292700 292800, 292910, 292990, 293010, 293020, 293030 293040 293090, 293100,293211 293212, 293213, 293219, 293221, 293229, 293290, 293311 293319, 293321 293329, 293331, 293339, 293340, 293351, 293359, 293361 and 293369, for the entry in column (4); the entry "80% plus rs 25 per kg" shall be substituted: (25) in sub-heading no 293371, for the entries in columns (4) and (5), the entries "150% plus rs 15 per kg" and "140% plus rs 15 per kg" shall respectively be substituted: 40 (26) in sub-heading nos 293379, 293390, 293410 293420, 293430, 293490 and 293500, for the entry in column (4) the entry "80% plus rs 25 per kg" shall be substituted (27) in sub-heading nos 293610, 293621 293622 293623, 293624, 293625 293626, 293627 293628, 293629 and 293690 for the entries in columns (4) and (5) the entries "80% plus rs 25 per kg" and "74% plus rs 25 per kg" shall respectively be substituted;  45 (28) in sub-heading nos 293710 293721 293722 293729 293791, 293792 and 293799, for the entries in columns (4) and (5) the entries "80% plus rs 25 per kg" and "70% plus rs 25 per kg" shall respecbvely be substituted; (29) in sub-heading nos 293810 293890 293910 293921, 293929 and 293930, for the entry in column (4) the entry "80% plus rs 25 per kg" shall be substituted; 50 (30) in sub-heading nos 293940 and 293950, for the entries in columns (4) and(5) the entries "80% plus rs 25 per kg" and " 70% pills rs 2s per kg" shall, respectively, be substituted; (31) in sub-heading nos 293960,293970,293990 and 294000, for the entry in column (4), the entry "80% plus rs 25 per kg" shall be substituted; (32) in sub-heading nos 294110,294120,294130,294140,294150 and 294190, for the entries in columns (4) and (5), the entries "80% pills rs 25 per kg" and "74% pills rs 25 per kg" shall, respectively, be s substituted; (33) in sub-heading no 294200, for the entry in column (4), the entry" 80% pills rs 25 per kg" shall be substituted; (iv) in chapta' 32,-(1) in sub-heading nos 320110, 320120 and 320130, for the entry in column (4), the entry "50% pills rs 10 10 per kg" shall be substituted; (2) in sub-heading no 320190, for the entries in columns (4) and (5), the entries "80% plus rs 25 per kg" and "10% pills rs 25 per kg" shall, respectively, be substituted; (3) in sub-heading nos 320210 and 320290, for the entry in column (4), the entry "80% pills rs 25 per kg" shall be substituted; 15 (4) in sub-heading nos 320300, 320411, 320412, 320413, 320414, 320415, 320416, 320417, 320419, 320420, 320490, 320500, 320610, 320620, 320630, 320641, 320642, 320643, 320649, 320650, 320710, 320720,320730,320740,320810,320820,320890, 320910,320990,321000,321100,321210,321290, 321310,321390,321410 and 321490, for the entry in column (4), the entry "150% pills rs 15 per kg" shall be substituted; al (5) in sub-heading nos 321511, 321519 and 321590 for the entry in column (4), the entry "100% pills rs25 per kg" shall be substituted; (\1) in chapter 33, in sub-heading nos 330111 330112, 330113 330114, 330119, 330121, 330122, 330123, 330124 330125, 330126, 330129, 330130, 330190, 330210, 330290, 330300 330410, 330420 330430, 330491, 330499, 330510,330520, 330530, 330590, 330610, 330690, 330710, 330720, 330730, 25 330741, 330749 and 330790, for the entry in column (4), the entry "150% pills rs 25 per kg" shall be substituted; (vi) in chapter 34, -(1) in sub-heading nos 340111, 340119 and 340120, for the entry in column (4), the entry "150% plus rs 15 per kg" shall be substituted; 30 (2) in sub-heading nos 340211, 340212, 340213 and 340219, for the entries in columns (4) and (5), the entries "100% pills rs2s per kg" and "90% plus rs 25 per kg" shall, respectively, be substituted; (3) in sub-heading nos 340220, 340290, 340311, 340319, 340391 and 340399, for the entry in column (4), the entry "150% pills rs 15 per kg" shall be substituted; (4) in sub-heading nos 340410, 340420 and 340490, for the entry in column (4), the entry "100% pills rs 15 35 per kg" shall be substituted; (5) in sub-heading nos 340510, 340520, 340530, 340540, 340590, 340600 and 340700, for the entry in column (4), the entry "150% plus rs 15 per kg" shall be substituted; (vii) in chapter 35, in sub-heading nos 350110, 350190, 350210, 350290, 350300, 350400, 350510, 350520,350610,350691,350699,350710 and 350790, for the entry in column (4), the entry "100% pills 40 rs 2s per kg" shall be substituted; (,,;u) in chapter 38,-') in sub-heading no 380110, for the enmes in columns (4) and (5), the entries "80% pills rs 25 per kg" and "10% plus rs 25 per kg" shad, respectively, be substituted; !) in sub-heading nos 380120, 380130 and 380190, for the entry in column (4), the entry "80% pills rs 25 per <is kg" shall be substituted; (3) in sub-heading no 380210, f(w the entries in columns (4) and (5), the entries "80% pills ri 25 pez kg" and "70% pills rs 25 pez kg" shall, respectively, be subsiitutcd; (4) in sub-heading nos 380290, 380300, 380400, 380510, 380520, 380590, 380610, 380620, 380630, 5 380690, 380700, 380810, 380820, 380830, 380840, 380890, 380910, 380991, 380992,380999, 381010, 381090,381111,381119,381121,381129 and 381190, for the entry in column (4), the entry "80% pills ri25 per kg" shall be subbtiwfed; (5) in sub-heading no 381210, for the entries in columns (4) and (5), the entries "80% pills rs 25 per kg" and "70% pills rs 25 per kg" shall, respectively, be substiwted; 10 (6) in sub-heading nos 381220, 381230, 381300 and 381400, for the entry in column (4), the entry "80% plus rs 25 pc7 kg" shall be substiblted; (l) in sub-heading nos 381511 and 381512, for the entries in columns (4) and (5), the entries "80% plus rs 25 per kg" and "70% pills rs 25 pc7 kg" shall, respectively, be substiblted; (8) in sub-heading nos 381519,381590,381600,381710,381720,381800, 381900, 382000, 382100, 15 382200, 382310, 382320, 382330, 382340, 382350, 382360 and 382390, for the entry in column (4), the entry "80% plus rs 25 per kg" shall be substituted: (ix) in chapter 39,-(1) in sub-heading nos 390110, 390120, 390130, 390190, 390210, 390220, 390230, 390290, 390311, 390319,390320,390330 and 390390, for the entry in column (4), the entry "150% pills ri 25 per kg" shall be 20 substituted; (2) in sub-heading nos 390410,390421 and 390422, for the entry in column (4), the entry "200% pills rs 15 per kg" shall be substituted; (3) in sub-heading nos 390430, 390440, 390450, 390461, 390469, 390490, 390511, 390519, 3905"20, 390590, 390610, 390690, 390710, 390720, 390730, 390740 and 390750, for the entry in column (4), the entry 2'i "150% plus rs 25 pc7 kg" shall be substiblted; (4) in sub-heading no 390760, for the entry in column (4), the entry "200% pills rs 15 per kg" shall be substituted; (5) in sub-heading nos 390791, 390799, 390810, 390890, 390910, 390920, 390930, 390940, 390950, 391000,391110,391190,391211,391212,391220, 391231, 391239, 391290, 391310, 391390, 391400, 30 391510,391520,391530,391590, 391610, 391620, 391690, 391710, 391721, 391722, 391723, 391729, 391731,391732,391733 and 391739, for the entry in column (4), the entry "150% pills rs 25 per kg" shall be substituted; (6) in sub-heading nos 391810, 391890, 391910, 391990, 392010, 392020,392030, 392041, 392042, 392051,392059, 392061, 392062, 392063, 392069, 392071, 392072, 392073, 392079, 392091,392092, 35 392093,392094,392099,392111,392112,392113,392114,392119 and 392190, for the entry in column (4), the entry "150% plus rs 25 per kg" shall be substituted; (x) in chapter 72,-(1) in sub-heading nos 720610 and 720690, for the entry in column (4), the entry "50% plus rs 3,000 per tonne" shall be substiblted; 40 (2) in sub-heading nos 720711, 720712, 720719 and 720720, for the entry in column (4), the entry "70% plus rs 3,500 per tonne" shall be substiwted; (3) in sub-heading nos 720811, 720812, 720813, 720814, 720821, 720822, 720823, 720824, 720831, 720832,720833,720834,720815,720841, 720842 720843, 720844,720845, 720890, 720911, 720912, 720913, 720914, 720921, 720922, 720923, 720924, 720931 720932, 720933, 720934 720941, 720942, 45 720943, 720944 and 720990, for the entry in column (4) the entry "80% pills rs 5,000 per tonne" shall be substituted; (4) in sub-heading nos 721011, 721012, 721020, 721031, 721039, 721041 and 721049, for the entry in column (4), the entry "80% plus rs 7,000 per tonne" shall be substituted; (5) in sub-heading no 721050, for the entry in column (4), the entry "100% plus rs 7,000 per tonne" shall be substituted; (6) in sub-heading nos 721060, 721070 and 721090, for the entry in column (4), the entry "80% plus rs7,ooo per tonne" shall be substituted; 5 (7) in sub-heading nos 721111, 721112, 721119, 721121, 721122, 721129, 721130, 721141, 721149 and 721190, for the entty in column (4), the entry "80% plus rs 5,000 per tonne" shall be substituted; (8) in sub-heading nos 721210, 721221, 721229, 721230 and 721240, for the entty in column (4), the entry "80% plus rs 7,000 per tonne" shall be substituted; io (9) in sub-heading no 721250, for the entty in column (4), the entry "100% plus rs 7,000 per tonne" shall be substituted; (10) in sub-heading no 721260, for the entry in column (4), the entry "80% plus rs 7,000 per tonne" shall be substituted; (11) in sub-heading nos 721310 and 721320, for the entry in column (4), th~ entry "100% plus rs 5,000 per 15 tonne" shall be substituted; (12) in sub-heading nos 721331,721339,721341 and 721349, for the entry in column (4), the entry "60% plus rs 5,000 per tonne" shall be substituted; (13) in sub-heading nos 721350, 721410, 721420 and 721430, for the entry in column (4), the entry "100% plus rs 5,000 per tonne" shall be substituted; 20 (14) in sub-heading nos 721440 and 721450, for the entry in column (4), the entry "60% plus rs 5,000 per tonne" shall be substituted; (15) in sub-heading nos 721460 and 721510, for the entry in column (4), the entry ")00% plus rs 5,000 per tonne" shall be substituted; (16) in sub-heading nos 721520 and 721530, for the entry in column (4), the entry "60% plus rs 5,000 per 25 tonne" shall be substituted; (17) in sub-heading nos 721540 and 72159(\, for the entry in column (4), the entry "100% plus rs 5,000 per tonne" shall be substituted; (18) in sub-heading nos 721610,721621,721622, 721631, 7216,32, 721633, 721640, 721650, 721660 and 721690, for the entry in column (4), the entry "80% plus rs 5,000 per tonne" shall be substituted; 30 (19) in sub-heading nos 721711, 721712, 721713, 721719, 721721, 721722, 721723 and 721729, for the entry in column (4) , the entry "50% plus rs 5,000 per tonne" shall be substituted; (20) in sub-heading nos 721731, 721732, 721733 and 721739, for the entry in column (4), the entry "80% plus rs 5,000 per tonne" shall be substituted; (21) in sub-heading nos 721810,721890,721911,721912,721913,721914,721921, 721922, 721923, 35 721924, 721931, 721932, 721933, 721934, 721935, 721990, 722011, 722012, 722020, 722090, 722100, 722210, 722220, 722230, 722240 and 722300, for the entry in column (4), the entry "300% plus rs 25,000 per tonne" shall be substiluted; (22) in sub-heading nos 722410, 722490, 722510, 722520, 722530, 722540, 722550, 722590, 722610, 722620, 722691, 722692, 722699, 722710, 722720, 722790, 722810, 722820, 722830, 722840, 722850, 40 722860, 722870, 722880, 722910, 722920 and 722990, for the entry in column (4), the entry "80% plus rs 25,000 per tonne" shall be substituted; (xi) in chapter 98, -(1) after note 6, the fouowing notes shall be inserted, namely:-"7 heading no 9806 does not covel' : (a) ball or roller bearings of heading no 8482; (b) bearing housings of sub-heading nos 848320 and 848330; (c) parts of machillc'l)' of heading no 8471; and (~ any other jili't of machinery which the central government may, having regard to its nature of being a part 5 having general application notify in the official gazeue in this behalf 8 goods which answc7 to the description of both the heading no 9801 and the heading no 9806 are to be classified under the heading no 9801"; (2) in suh-heading no 980100, for the entty in column (4), the cotty "60%" shall be substituted  part ii10 heading no sub-heading no description of article rate of duty sdntsirl preferential 8jpjis (i) (2) (3) (4) (5) in the first schedule to the customs tariff act, in chapter 98 after heading no 9805, the following heading shall be inserted, namely :-15 150% "9806 980600 parts of machinery, equip-ments, appliances, instru-ments,and articles of chapters 84, 8586,89 and 90  part iin the schedule to the centtal excise tariff act,-(1) in chapter 4, in su~hcading no 040310, for the entry in column (4), the entry "20%" shall be substituted; s (2) in chapta' 9, in su~heading no 090310, for the entry in column (4), the entry "is'll" shall be substituted; (3) in cbaptcr is, in sub-beading no 150400, for the entry in column (4), the entry "rs 1,900 per tonne" shall be substituted; (4) in chapter 19,-(oj in su~heading nos 190119 and 190190, for the entry in column (4), the entry "20%" shall be substituted; 10 (b) in su~heading no 190310, for the entry in column (4), the entry "is'll" shall be substituted; (e) in sub-heading no 190410, for the entry in column (3), the entry"- put up in unit containers and ordinarily intended for sale" shall be substituted; (5) in chapter 21, in sub-heading no210611, for the entry in column (4) the entry "25% plus rs 20 per kilogram" shall be substituted; 15 (6) in chapter 22,-(t,f in sub-heading no 220111, for the entry in column (4), the entry "25 paise" shall be substituted; (b) in sub-heading no 220112, in column (4), for the figures and word" 10 paise" the figures and word "25 paise" shall be substituted; 20 (c) in sub-heading no 220119, for the entry in column (4), the entry "60%" shall be substituted; (co in sub-heading no 220190 for the entry in column (4), the entry "is'll" shall be substituted; (t) in sub-heading no 220211, for the entry in column (4), the entry "50 paise" shall be substituted; (j) in sub-heading no 220212 for the entry in column (4), the entry "55 paise" shall be substituted; (g) in sub-heading no 220213, for the entry in column (4), the entry "65 paise" shall be substituted; (h) in sub-heading no 220214, in column (4), for the figures and word "45 paise", the figures and word "65 25 paise" sball be substituted; (i) in sub-heading no 220219, for the entry in column (4), the entry "75%" shall be substituted;  (7) in chapter ?a,-(aj aft« note 3, the following note shall be inserted, namely:-'4 in this oiapttz, the expression "cut-tobacco" means the prepared or processed cut-~size tobacco which is 30 generally blended or moisturised to a desired extent for use in the manufacture of machine-rolled cigarettes'; (b) in heading no 2404, in column (3), for the words "-smoking mixtures for pipes and cigarettes", the words  -smoking mixtwes for pipes and cigareucs; cut-tobacco" shall be substituted; (8) in chapter 28, in sub-heading no 281710, for the entry in column (4), the entry "is'll" shall be substituted; (9) in chapta" 34, in sub-heading nos 340120 and 340290, for the entry in column (4), the entry "25%" shall be 35 substituted; (10) in chapter 35, in sub-heading no 350600, for the entry in column (4), the entry "40%" shall be substituted; (11) in chapter 39, in sub-heading no 390780, in column (3), for the word "polybutyl", the word "polybutylene" shall be substituted; (12) in chapter 40,-5 (a) in sub-heading nos 400610 and 400821, for the entry in column (4), the entry "rs12 per kilogram" shall be substituted; (b) in sub-heading no 401090, for the entry in column (4), the entry "35%" shall be substituted; (13) in chapter 42, in sub-heading no 420110, for the entry in column (4), the entry "35%" shall be substituted; (14) in chapter 44,-10 (a) in sub-heading nos 440610, 440620, 440690, 440710 and 440790, for the entry in column (4), the entry "20%" shall be substiblted; (b) in sub-heading nos 440810 and 440820, for the entry in column (4) - the entry "30%" shall be substituted; (15) in chapter 45, in sub-heading no 450100 for the entry in column (4), the entry "15%" shall be substituted; (j6) in chapter 48-j5 (0) in sub-heading no 480220 in column (4), for the abbreviation and figures "rs 575" the abbreviation and figures "rs 600" shall be substituted; (b) in sub-heading no 480291, in column (4), for the abbreviation and figures "rs 1,700", the abbreviation and figures "rs 1,800" shall be substituted; (c) in sub-heading no 480299, in column (4), for the abbreviation and figures "rs 1,300", the abbreviation and 20 figures "rs 1400" shall be substiblted; (d) in sub-heading no 480300, in column (4), for the abbreviation and figures "rs 1,430", the abbreviation and figures "rs 1,550" shall be substituted; (e) in sub-heading nos 480419, 480429 and 480430, in column (4), for the abbreviation and figures "rsi 700", the abbreviation and figures "rs 1,800" shall be substituted; 25 (f) in sub-heading no 480530, in column (4), for the abbreviation and figures "rs 2,000", the abbreviation and figures "rs 2150" shall be substituted; (g) in 'sub-heading no 480590, in column (4), for the abbreviation and figures "rs 1,550" , the abbreviation and figures "rs 1,600" shall be substiblted;  (it) in sub-heading nos 480610 and 4806_20 in column (4) for the abbreviation and figures "rs 2,200", the abbreviation and figures "rs 2,300" shall be substituted; 30 (i) in sub-heading no 480690 in colwnn (4), for the abbreviation and figures "rs 1,930", the abbreviation and figures "rs 2,000" shall be subs&ituted; oj in sub-heading nos 480710 and 480799, in column (4), for the abbreviation and figures "rs l,sso", the abbreviation and figures "rs l,fix)" shau be substituted; 35 (kj in sub-heading nos 480810 and 480890, in column (4), for the abbreviation and figures "rs l,sso", the abbreviation and figures "rs l,fix)" shall be substiblted; (l) in sub-heading nos 480910,480920 and 480990, for the entry in colwnn (4), the entry "40% " shall be substilutcd; (iii) in iub-~j no 481010, in column (4), for the abbreviation and figures "rs 1,700", the ablrviation 40 and figura "ra 1800" ahal1 be aubsciblted; (ii) in aub-headiq no 481020 in column (4), for the abbreviaiicln and figures "rs 2,200", the abbreviaiion and fiprea "ra 2300" aliau be aubsdlulcd: (0) in sub-heading no 481090, in column (4), for the abbreviation and figures "rs 1,930", the abbreviation and figures "rs 2,000" shall be substimted; (p) in sub-heading nos 481110 and 481120, in column (4), for the abbreviation and figures "rs 1,550", the abbreviation and figures "rs 1,600" shall be substituted; (q) in sub-heading no 481131, for the entry in column (4), the entry "10% plus rs 1,600 per tonne" shall be 5 substimted; (r) in sub-heading nos 481139 and 481140, in column (4), for the abbreviation and figures "rs 2,200", the abbreviation and figures "rs 2,300 " shall be substimted; (s) in sub-heading no 481190, in column (4), for the abbreviation and figures "rs 1,930", the abbreviation and figures "rs 2,000" shall be substimted; 10 (l) in sub-heading no 481200, for the entry in column (4), the entry "15%" shall be substimted; (il) in sub-heading no 481300, in colmon (4), for the abbreviation and figures "rs 2,200", the abbreviation and figures "rs 2,300" shall be substimted; (v) in sub-heading no 481400, in column (4), for the abbreviation and figures "rs 2,500", the abbreviation and 15 figures "rs 2,700" shall be substimted; (w) in suh-heading no 481500, for the entry in column (4), the entry "15%" shall be substituted; (x) in sub-heading no 481600, for the entry in column (4), the entry "40%" shall be substituted; (y) in sub-heading nos 481710, 481720 and 481790, in column (4), for the abbteviation and figures "rsl,550", the abbreviation and figures "rsl,600" shall be substimted; 20 (17) in chapter 49, in heading no 4901, in column (3), for the words "producrs of the paper printing industry", the words "producrs of the printing industry" shall be substituted;  (18) in chapter 52-(~ in sub-heading nos 520620 and 520720, in column (4), for the words, abbreviation and figures "sub-heading nos 520631 to 520639 and 520690", the words, abbreviation and figures "sub-heading nos 520631 to 520636 and 520691 to 520694" shall be substituted; 25 (b) in sub-heading nos 520790 and 520819, for the entry in colmon (4), the entry "fifty per cent of the duty leviable under sub-heading nos 520631 to 520636 and 520691 to 520694, as the case may be, depending upon the average coldl1 of yam in the fabric and the value per square metre of the fabric" shall be substituted; (c) in sub-heading nos 520822 and 520829, in column (4), for the words, abbreviation and figures "sub-beading nos 520631 to 520639 and 520690", the words, abbreviation and figures "sub-heading nos 520631 to 520636 30 and 520691 to 520694" shall be substituted; (t:o in sub-heading nos 521110 and 521120, for the entry in column (4), the entry "nil" shall be substimted;  (19) in chapter 54,-((41 in sub-heading no 540491, for the entry in column (4), the entry "rs 2112 per kilogram" shall be substituted; 3s (b) in sub-heading no 540492, for the entry in column (4), the entry "rs1377 per kilogram" shall be substihlled; (c) in sub-heading no 540493, for the entry in column (4), the entry "rs 986 per kilogram" shall be substituted; (4 in sub-heading no 540494, for the entry in column (4), the entry "rs 818 per kilogram" shall be 40 subatiblwl; (e) in sub-heading no 540495, for the entry in column (4), the entry "rs 695 per kilogram" shall be substiluwl; (f) in sub-heading no 540496, for the entry in column (4), the entry "rs 471 per kilogram" shall be substiblted; (g) in sub-heading no 540497, for the entry in column (4), the entry "ju 308 per kilogram" shall be substiblted; 5 (h) in sub-heading no 540910, for the entry in column (3), the entry "- of value not exceding rupees len per square metre" shall be substituted; (;) in sub-heading no 540920, for the entry in column (3), the entry "- of value exceeding rupees len but not exceeding rupees twenty per square metre" shall be substiblted; (j) in sub-heading no 540930, for the entry in column (3), the entry" - of value exceeding rupees twenty but not exceeding rupees twenty-five per square metre" shall be substituted; 10 (k) in sub-heading no 540940, for the entry in column (3), the entry" - of value exceeding rupees twenty-five but not exceeding rupees ruty per square metre" shall be substiblted; (l) in sub-heading no 540950, for the entry in column (3), the entry" - of value exceeding rupees rlfty but not exceeding rupees one hundred per square metre" shall be substiblted; 15 (m) in sub-heading no 540960, for the entry in column (3), the entry" - of value exceeding rupees one hundred per square metre" shall be substiblted; (n) sub-heading no 540970 and the entries relating thereto shall be omitted; (20) in chapter 55, -20 (a) sub-heading nos 551127 and 551128 shall be renumbered as sub-heading nos 551126 and 551127 respectively; (b) sub-heading nos 551227 and 551228 shall be renumbered as sub-heading nos 551226 and 551227 respectively; (2/) in chapter 59,-(a) in sub-heading no 590110, for the e~try in column (4), the entry "10% " shall be substiujted; 2') (b) in sub-heading nos 590210, 590220 and 590230, for the entry in column (4), the entry "rs 10 per kilogram" shall be substituted; (c) in sub-heading no 590311, for the entry in column (4), the entry "30% plus the duty for the time being leviable on base fabrics, if not already paid" shall be substituted; )0 (d) in sub-heading no 590319, in column (4), for the abbreviation and figure "rs 6", the abbreviation and figure "rs 7" shall be substiujted; (~) in sub-heading no 590321, for the entry in column (4), the entry "30% plus the duty for the time being levtable on base fabrics, if not already paid" shall be substituted; if) in sub-heading no 590329, in column (4), for the abbreviation and figures "rs 750", the abbreviation and figures "rs 850" shall be substituted; 35 (~) in sub-heading no 590391, for the entry in column (4), the entry "30% plus the duty for the time being leviable on base fabrics, if not already paid" shall be substituted; (h) in sub-heading no 590399, in column (4), for the abbreviation and figure "rs 8", the abbreviation and figure "rs 9" shall be substituted; (;) in sub-heading nos 590510 and 590520, for the entry in column (4), the entry "10%" shall be substituted; 40 u> in sub-heading no 590800, for the entry in column (4), the entry "30%" shall be substituted; (22) in chapter 64,-(~ in sub-heading no 640111, for the entry in column (4), the entry "20%" shall be substituted; (b) in sub-heading no 640191, for the entry in column (4), the entry "20%" shall be substituted; (c) in sub-heading no 640200, for the entry in column (4), the entry "is"" shad be substiwted; (23) in chapter 68,-(a) in sub-heading no 680110, for the entry in column (4), the entry "20%" shall be substiwled; (b) in sub-heading no 680200, for the entry in column (4), the entry "20"" shall be substiwted; (c) in sub-heading nos 680410, 680420, 680430 and 680490, for the entry in column (4), the entry 5 ft25%ft shall be substituted; (dj in sub-heading no 680510, for the entry in column (4), the entry "25"" shall be substiwted; (~) in sub-heading no 680610, for the entry in column (4), the entry "25"" shall be substiwted; (f) in sub-heading no 680690, for the entry in column (4), the entry "20%" shall be substiwted; (g) in sub-heading no 680700, for the entry in column (4), the entry "20%" shall be substituted; 10 (24) in chapier 69,-(a) in sub-heading nos 690100, 690210, 690290, 690310, 690390 and 690410, for the entry in column (4), the entry "is'll" shall be substiwted; (b) in sub-heading no 690810, for the entry in column (4), the entry "40%" shall be substiwted; 15 (c) in sub-heading no 690910, for the entry in column (4), the entry "20%" shall be substituted; (dj in sub-heading no 690920, for the entry in column (4), tm entry "40"" shall be substituted; (25) in chapter 10,-(a) in sub-heading no 700210, in column (4), for the abbreviation and figures ftrs 375ft, the abbreviation and figures "rs 10" shall be substituted; (b) in sub-beading no 700220, in column (4), for the abbreviation and figures "rs 350", the abbreviation and a> figures "rs 10" shall be substituted; (c) in sub-heading no 700300, in column (4), for the abbreviation and figures "rs 375", the abbreviation and figures "rs 10" shall be substituted; (dj in sub-heading no 700410, for the entry in column (4), the entry ft4o% plus rs 50 per millimetre thickness or part ihc:nlof per square mette" shall be substituted; 25 (~) in sub-heading no 700420, for the entry in column (4), the entry "50% plus rs so per millimetre thickness or part ihc:reof per square metre" shall be substituted; (f) in sub-heading no 700690, for the entry in column (4), the entry "40% plllf rs is per millimetre thickness or part tbereof per square metre" shall be substituted; (26) in 0iapb:r 14, in sub-heading no 740590, for the entry in column (4), the entry "20%" shall be substiwted; 30 (17) in cl1apta" 83, in sub-heading no 831212, for the entry in column (4), the entry ft20" plus rsl00 per cantaincr''' si;tall be substiwted; (28) in cbapia" 85,-(a) in sub-beading no 850100, for the entry in column (4), the entry "25"" shai1 be substiwted; (b) in sub-headins no 850600, for the entry in column (4) the entry "35"" shall be substiwted; ~ in iub-iading no 853900, for the entry in coiwnn (4), the entry "3s" pills rs 10 per lamp" shai1 be suijitjb'" heading no sub-heading no description of goods rate of duty (1) (3) (4) in the schedule to the central excise tariff act-5 (1) in chapter 19 for sub-heading nos 190210 190220 and 190290 the following sub-headings shall be substituted namely :-"190210 -put up in unit containers and ordinarily intended for sale 15% 190290 nil"; (2) in chapter 24-(a) after sub-heading no 240412 the following sub-heading shall be inserted namely ;-10 "240413 - ~ut-tobacco 10 paise per kilogram"; (b) for sub-heading nos 240441 and 240442 the following shall be substituted namely:-'- clewing tobacco includinll preparations commonly known as "khara masa1a" "kimam" ii"dokta" "zarda" "sukha" and "surti": 240441 -bearing a lnnd name 20%'; 15 (e) for sub-heading nos 240451 and 240452 the following sub-heading shall be substituted namely;-"240450 -snuff of tobacco 20%"; (3) in chapter 28 for heading no 2829, the following heading shall be substituted, namely:- "2829 chlorates and percmorales; broma les and perbroma tes; iodates and perioda les20 282910 rs looper kilogram -potassium chlorate 15%"; 282990 -other (4) in chapter 34 for sub-heading nos 340111 and 340112, the following sub-heading shall be substituted namely:-"340110 -soap in any fonn 25%"; 25 (5) in chaptes 52-(oj for sub-heading nos 520632, 520633, 520634 520635 and 520636 the following subheadings shall be substiwted, namely :-20 paise per square metre "520632 - of value exceeding rupees five but not exceeding rupees ten per square metre 50 paise per square metre 30 520633 - of value exceeding rupees ten but not exceeding rupees fifteen per square metre 80 paise per square metre 520634 - of value exceeding rupees fifteen but not exceeding rupees twenty-five per square metre 8% 520635 - of value ~mpees lwciily-five but not exceeding rupees per square mcirc 35 8%"; 520636 - of value exceeding rupees fifty per square mcb'e (b) for sub-lading nos 520637, 520638 520639 iiid 520690, the following sub-iwdi  sbail be substituted liiiiiciiy :-(1) (2) (3) (4) "-other fabrics: 520691 - of value not exceeding rupees fifteen per square metre so paise per square metre 520692 - of value exceeding rupees fifteen but not exceeding rupees twenty-five per square metre 80 paise per square metre 520693 -- of value exceeding rupees twenty-five but not exceeding rupees fifty per square metre 8% 5 8%"; - of value exceeding rupees fifty per square metre 520694 (c) for heading no 5209 the following i}eading shall be sub~tituted namely:- "5209 corron fabrics- ~ woven(b) subjeci'ed to the process of bleaching mercerising, dyeing printing waler-proofing, shrinkproofing, organdie processing or any otiier process or any two or more of these processes (c) containing (i) colton and (ii) pol yesler staple fibre or polyester filament yarn or both (blit not containing any 01lffir lex1ue material), and (co in which the proportion of pol yesler staple fibre or filament yarn or both is more than 40% by weight of the total fibre content 520910 nil - of value not exceeding rupees twenty-five per square metre 520920 nil"; - of value exceeding rupees twenty-five per square metre (d) for sub-heading nos 521020 and 521030 die following sub-heading shall be substituted namely :-"521020 - of value exceeding rupees twenty-five per square metre nil"; (6) in chapter 54 for sub-heading no 541230 the following sub-headings shall be substituted namely :-30 "541230 nil - of value exceeding rupees fifty but not exceeding rupees one hundred per square metre 541240 nil"; - of value exceeding rupees one hwldred per square metre 35  oj in chapter 55,-(a) for heading no 5508 the following heading shall be substituted, namely :-"5508 fabrics of man-made staple fibres, excluding fabrics covered under heading nos 5511 and 5512,-40 ~ woven on looms other than handlooms, and 4s (b) subjecred to the process of bleaching, dyeing printing shrlnkproofing, slentering, heat-seiting, crease-resistant processing or any other process or any two or more of these processes witii the aid of power or steam (1) (2) 0) (4) 550810 -of value not exceeding rupees ten per square metre nil 550820 - of value exceeding rupees ten but not exceeding rupees twenty per square metre nil 550830 - of value exceeding rupees twenty but not exceeding rupees twenty-five per square metre nil 5 550840 - of value exceeding rupees twenty-five but not exceeding rupees fifty pel" square metre nil 550850 - of value exceeding rupees fifty but not exceeding rupees one bundred per square metre nil jo 550860 -of value exceeding rupees one hundred per square metre nil "; (b) for sub-heading no 551113, the following sub-headings shall be substituted, namely :-"551 ~13 -- of value exceeding rupees fifty but not exceeding rupees one hundred per square metre nil 551li4 -- of value exceeding rupees one hundred pel" square metre nil "; 15 (c) for sub-heading no 551129, the following sub-headings shall be substituted, namely:-"551128 -- other fabrics of value exceeding rupees fifty but not exceeding rupees one hundred per square metre nil 551129 -- other fabrics of value exceeding rupees one hundred per square metre nil "; 20 (d) for sub-heading no 551213, the following sub-headings shall be substituted, namely :-"551213 -- of value exceeding rupees fifty but not exceeding rupees one hundred per square metre nil nil "; 551214 -- of value exceeding rupees one hundred per square metre (e) for sub-heading no 551229, the following sub-headings shall be substituted, namely :-2'i "551228 nil -- other fabrics of value exceeding rupees fifty but not exceeding rupees one hundred per square metre 551229 nil" ; -- other fabrics of value exceeding rupees one hundred per square metre (8) in chapter 69 for sub-heading no 690610 the following sub-heading shall be sljbstituted namely ;-30 "690610 - glazed tiles 50%"; (9) in chapter 84 after sub-heading no 841410 the following sub-heading shall be inserted namely ;-"841420 - electric fans 15% plus rsl00 per fan"; (10) in chapter 85 for heading no 8540, the following shall be substituted, namely ;-35 "8540 thermionic cold cathode or photo-cathode valves and tubes (for example v acuum or vapour or gas filled val yes and tubes mercury arc rectifying valves and rubes, ca thode-ray tubes, television camera rubes) -cathode-ray television picture tubes: 40 rs 6001- per tube rs 150/- per tube 15%" 854011 854012 854090 --colour -black and white - 0ihri'  part iin the first schedule to the additional duties of excise act,-(1) in sub-heading no 170139, for the entry in column (4), the entry "rs 36 per quintal" shall be substituted; 5 (2) in heading no 2404, in column (3), in the portion occurring before sub-heading no 240411, for the words "-smoking mixtures of tobacco for pipes and cigarettes", the words "-smoking mixtures of tobacco for pipes and cigarettes; cut-tobacco" shall be substituted; (3) sub-heading no 240432 shall be renumbered as sub-heading no 2404~9; (4) in sub-heading no 520620, in column (4), for the wonts, abbreviation and figures "sub-heading nos 520631 ]() to 520639 and 520690", the wonts, abbreviation and figures "sub-heading nos 520631 to 520636 and 520691 to 520694" shall be substituted;  (5) in sub-heading no 520632, for the entry in column (3), the entry "- of value exceeding rupees five but not exceeding rupees ten per square metre" shall be substituted; (6) in sub-heading no 520633, for the entry in column (3), the entry "- of value exceeding rupees ten hut not 15 exceeding rupees flfteen per square metre" shall be substituted; (7) in sub-heading no ~20634, for the entry in column (3), the entry "-- of value exceeding rupees fifteen hut not exceeding rupees twenty-five per square metre" shall be substituted; (8) in sub-heading no 520635, for the entry in column (3), the entry "-- of value exceeding rupees twenty-five but not exceeding rupees fifty per square metre" shall be substituted; (9) in sub-heading no 520636, for the entry in column (3), the entry "-- of value exceeding rupees fifty per square metre" shall be substituted; 25 (10) in sub-heading no 520720, in column (4), for the words, abbreviation and figures "sub-heading nos 520631 to 520639 and 520690", the words, abbreviation and figures "sub-heading nos 520631 to 520636 and 520691 to 520694" shall be substituted; (11) in sub-heading nos 520790 and 520819, for the entry in column (4), the entry "fifty per cent of the duty leviable under sub-heading nos 520631 to 520636 and 520691 to 520694, as the case may be, depending upon the average count of the yarn in the fabric and the value per square metre of the fabric" shall be substituted; (12) in sub-heading nos 520822 and 520829, in column (4), fpr the words, abbreviation and figures "subheading nos 520631 to 520639 and 520690", the words abbreviation and figures "sub-heading nos 520631 to 30 520636 and 520691 to 520694" shall be substitu~; (13) in sub-heading nos 521110 and 521120, for the entry in column (4), the entry  j5%" shall be substituted; (14) sub-heading nos 551127 and 551128 shall be renumbered as sub-heading nos 551126 and 551127 respectively; (15) sub-heading nos 551227 and 551228 sball be renumbered as sub-heading nos 551226 and 551227 3s respectively  (3)in the fu'st schedule 10 the additional duties o( excise act-(1) after sub-heading no 240412, the (ollowing sub-heading shall be inselted, namely :-"2a04l3 -- cut-tobacco (2) for sub-heading nos 240441 and 2a0442, the following shall be substituted, namely:-'-chewing iobacco including preparations commonly known as "kharamasala", "igmam","dokta", "zarda",,"sukha" and "surti": 2a0441 -- bearing a brand name 10%'; 10 (3) for the portion occurring aftez sub-heading no 240449 and sub-heading nos 240451 and 240452, the following sub-heading shall be substituted, namely :-"240450 -snuff of tobacco 10%"; (4) for sub-heading nos 520637,520638,520639 and 520690, the following sub-headings shall be substituted, namely:-|        | - other    ||----------|------------|| fabrics: |            || 520691  | --         || rupees   |            || fifteen  |            || pet      |            || square   |            || metre    |            |15 | 10%             | plus    ||-----------------|---------|| rs             |         || 5               |         || pet             |         || square          |         || metre           |         || 10%             | plus    || rs             |         || 5               |         || per             |         || square          |         || metre           |         || 520692         | --      || rupees          |         || fifteen         | but     || not             |         || exceding        | rupees  || twenty-five     |         || pet             |         || square          |         || metre           |         || 10%             | plus    || rs             |         || 5               |         || per             |         || square          |         || metre           |         || 5206~93         |         || -               |         || of              |         || value exceeding |         || rupees          |         || twenty-five but |         || not             |         || exceeding       |         || rupees          |         || flfty           |         || per square      | metre   |20 520694 -of value exceeding rupees flfty per square metre 10% plus rs 5 per square metre~; (5) for heading no 5209, the (ouowing heading shall be substituted namely :-"5209 colton fabrics,-(a) woven, 2'; (b) subjected to the process of bleaching, mercerising, dyeing, printing, water-proofing, shrinkproofing,organdie processing or any other process or any '!wo or more of these processes, (c) containing (i) cotion, and (ii) polyester staple fibre or polyester fdament yarn, or both (but not containing any other tex'rne material), and (d) in widch the proportion of polyester staple fibre or fdament yarn or both is more than forty per cent by weight of the total fibre content | 520910                | - of    | value    ||------------------------|---------|----------|| not                    |         |          || exceeding              |         |          || rupees                 |         |          || twenty-five per square | metre   | 10%      || plus                   |         |          || rs                    | 5       |          || per                    |         |          || square                 | metre   |          || 520920                |         |          || -                      | of      | value    || rupees                 |         |          || twenty-five            |         |          || per                    |         |          || square                 | metre   | 10%      || plus                   |         |          || rs                    | 5       |          || per                    |         |          || square                 | metre"; |          |(6) for sub-heading nos 521020 and 521030, the following sub-heading shall be substituted, namely :-"521020 - of value exceeding rupees twenty-five per square metre 10% plus rs 5 per square metre"; (7) for heading no 5409, the following heading shall be substiblted, namely :-"5409 | fabrics                          | of                            | man-made    | filament    | yarn    ||----------------------------------|-------------------------------|-------------|-------------|---------|| (including fabrics obtained from |                               |             |             |         || materials                        |                               |             |             |         || of                               | heading                       | nos        | 5406       | and     || 5407                            | but excluding fabrics covered |             |             |         || under                            | heading                       | no         | 5412),-    |         |(a) woven on looms orner man handlooms, and (b) subjected to rne process of bleaching, dyeing, printing, shrink-proofing, stentering heat-setting crease-resistant processing or any orner process or any two or more of these processes with the aid of power or steam 540910 - of value not exceeding rupees ten per square metre 10% plus rs 5 per square metre 540920 - of value exceeding rupees ten but not exceeding rupees twenty per square metre 10% plllf rs 5 per square metre 540930 10% plus rs 5 per square metre - of value exceeding rupees twenty but not exceeding rupees twenty-five per square metre 540940 10% plus rs 5 per square metre - of value exceeding rupees twenty-five but not exceeding rupees fifty per square metre 540950 15% - of value exceeding rupees fifty but not exceeding rupees one hundred per square metre 20%"; 540900 -of value exceeding rupees one hundred per square metre (8) for sub-heading no 541230 the following sub-headings shall be substituted namely :-"541230 - of value exc=iing rupees fifty but not exceeding rupees one hllddred per square metre 15% 541240 -of value exceeding rupees one hundred per square metre 20%"; (9) for heading no 5508, the following heading shall be substituted, namely :-"5508 fabrics of man-made staple fibres (excluding fabrics covered under heading nos 5511 and 5512),- ~ woven on looms cmmr man handlooms, and| (2)                                           | (3)    ||-----------------------------------------------|--------|| (4)                                           |        || q)                                            |        || 5                                             |        || (b)                                           |        || subjected                                     | to     || dyeing, printing, shrlnkproofing, stentering, |        || heat-setiing, crease-resistant procbssing     |        || or                                            |        || any                                           | olller || or more of these processes                    |        || with the                                      |        || aid                                           | of     || - of value                                    |        || not                                           |        || exceeding rupees                              |        || ten                                           |        || per                                           |        || square                                        | metre  || s50810                                       |        || 10%                                           |        || plus                                          |        || rs                                           |        || s                                             |        || per                                           |        || square                                        |        || metre                                         |        || s50820                                       |        || -                                             | of     || value exceeding                               |        || rupees                                        |        || ten                                           |        || but not exceeding                             | rupees || twenty                                        |        || per                                           | square || metre                                         |        || 10                                            |        || 10%                                           | plus   || rs                                           |        || s                                             |        || per                                           |        || lkluare                                       |        || metre                                         |        || s5083o                                       |        || - of value exceeding                          |        || rupees                                        |        || twenty                                        | but    || not                                           |        || exceeding                                     |        || rupees                                        |        || twenty-five                                   |        || per                                           |        || square                                        |        || metre                                         |        || 10%                                           |        || plus                                          |        || rs                                           | 5 per  || square                                        |        || metre                                         |        || s50840                                       |        || - of                                          |        || value exceeding                               |        || rupees                                        |        || twenty-five but not exceeding                 |        || rupees                                        |        || fifty                                         |        || per                                           |        || square                                        |        || metre                                         |        || 10%                                           |        || plus                                          |        || rs                                           | 5      || per                                           |        || !quare                                        |        || metre                                         |        || ss0850                                       |        |15 - of value exceeding rupees fifty but not exceeding rupees one hundred per square metre is% 20%"; - of value exceeding rupees one hundred per square metre s50860 (10) for sub-heading no 5s1113, the following sub-headings shall be substituted, namely :-"551113 -- of value exceeding rupees fifty but not exceeding rupees one hundred per square melle 15% 5s1114 -- of value exceeding rupees one hundred per square metre 20%"; 20 (11) for sub-heading no 551129, the following sub-headings shall be substituted, namely:-| "551128    | - other fabrics of value    ||-------------|-----------------------------|| exceeding   |                             || rupees      | fifty                       || rupees      |                             || one         | hundred                     || per         |                             || square      |                             || metre       |                             || 15%         |                             || 5s1129     |                             || ~           |                             || fabrics     | of                          || exceeding   |                             || rupees      |                             || one         |                             || hun~        |                             || per         | square                      || 20%";       |                             |(12) for sub-heading no 551213, the following sub-headings shall be substituted, namely :-25 "551213 --of value exceeding rupees fifty but not exceeding rupees one hundrm per square melle is% s51214 - of value exceeding rupees one hundred per square metre 20%"; (13) for sub-heading no 551229, the following sub-headings shall be substituted namely ;-30 "s51228 -- odlcl' fabrics of value exceeding rupees fifty but not exceeding rupees one hundred per sqwe metre is% 5s1229 - odler fabrics of value exceeding rupees one hundred per square metre 20%" the object of the bill is to gi~ effect to the financial p-oposais « abe central government for the financial year 1987-88 the notes oil clauses explain the various provisions contained in the bill newdeun; rallv gandhi the 28th february, 1987  president's recommendation under artiqes 117 and 274 of the constinmon of india[copy of letter no f 3(1)-b(o)/87, dated the 28th february, 1987 from shri rajiv gandhi, prime minister and minister of finance, to the secretary-general, lok sabha] the president, having been informed of the subject matter of the proposed bill, recommends under clause (1) of article 117, read with clause (1) of article 274, of the constitution of india, the introduction of the finance bill, 1987, to the lok sabha 2 the bill will be introduced in the lok sabha immediately after the presentation of the budget on the 28th february, 1987 clause 2 read with the first schedule to the bill seeks to prescribe die rates at which income-lax is 10 be levied on income chargeable to lax for the assessment year 1987-88 further it lays down the rajes at which lax is to be deducted at source during the financial year 1987-88 from incomes subject 10 such deduction under the income-tax act; and the rates at which "advance tax" is to be paid and tax is to be calculated and charged in special cases for the fmancial year 1987-88 rates of incoml!-taxfor the asses~nl year 1987-88: parl i of the first schedule 10 the bill specifies the rates of income-tax on incomes liable 10 lax for the assessment year 19r7-rr these rates are the same as those specified in part iii of the first schedule to the finance act 1986 for the purposes of deduction of lax at source from "salaries" and for computation of "advance tax" payable during the financial year 19~6-~7 {(ares for deduction of tax at source during the financial year 1987-88 from incoml! other than "salaries": parl ii of the first schedule to the bill specifies the rales at which income-tax is to be deducted at source during the financial year 1987-88 from incomes other than "salaries" and retirement annuities under section soe(9) of the income-tax act during the financial year 1987-88 certain new categories of incomes will be subject to deduction of tax at source i ncomes earned by any person who is resident in inelia, inter-ajia, by way of fees for professional services royalty fees for technical services commission or brokerage paid by persons other than individuals and hindu undivided families will now he i iahle to deduction of lax 3t source if such incomes exceed certain monetary limits the rate of deduction of tax on these incomes is proposed at twen':y per cent in the case of any person who is resident and who is not a company in the case of such incomes accruing to domestic companies the rate of deduction of tax at source is proposed at twenty-five per cent in the case of such incomes accruing to any person who is not a resident and who is not a company the rate of deduction of lax is proposed at thirty per cent or the income-tax in respect of the income computed at the rates prescribed in sub-paragraph i of paragraph a of part iii of the first schedule as if such income had been the total income, whichever is higher i ncome by way of rent will also be subject to deduction of tax at source if such rent is paid by persons other than individuals and hindu undivided families the rate of deduction of tax at source on the income earned by any person who is a resident in india or a domestic company is proposed at ten per cent if such income exceeds thirty-six thousand rupees but docs not exceed forty-eight thousand rupees the rate of deduction of lax in such cases is proposed at twenty per cent in a case where income by way of rent exceeds forty-eight thousand rupees in case of a person who is not resident in india and who is nol a company the lax deductible at source will be the tax at these rates or the income-tax as computed at the rates· prescribed in sub-paragraph i of paragraph a of part iii of the first schedule whichever is higher payments made by any government or a local authority or a public sector corporation or any company to any person resident in india or a domestic company for supply of goods will be subject to deduction of tax at source at the rate of five per cent in the case of such income accruing to any person who is not a resident and who is not a company the rate of deduction of tax is proposed at five per cent or income-tax computed at the rates prescribed in sub-paragraph i of paragraph a of part iii of the first schedule as if such income had been the total income whichever is higher in the case of any company which is not a domestic company the rates of deduction of tax at source in respect of dividends payable by any domestic company or interest or royalty or fees for technical services or interest payable on taxfree security remain unchanged the rate of deduction of tax in respect of any other income accruing to such a company is proposed to be retained at sixty-five per cent rates for deduction of tax at soutce from "salaries" and retireml!nt annuities, computation of "advance tax" and charging of income-tax in special cases during the financial year 1987-88: part iii of the first schedule to the bill specifies the rates·at which income-tax is to be deducted at ~ou~ from "salaries" and retirement annuities referred to in section soe(9) of die ldcome-tax act and also the rates at which advance tax" is to be paid and income-tax is to be calculated or charged in tpiicia1 eases for the fmancial year 1987-88 the basic rates of income-tax are the same as those specifild in part i of the first schedule 10 the bill for the assessment of income liable to tax for the assessment year 1987-88  clause 3 seeks 10 amend section 2 of the income-tax act reiadna· flo definitionsunder the existing provisions of sub-clause (e) of clause (22) of ~ti~ 2 any payment by way of advance or loan b~ a company, not being a company in which the public are substanlillly interested to a shareholder who has substanljal inirzest in the company, is inciuciible - a tlvidend suih:lause (a) of this elaule  to iecuie diit illy payment by way of advance or loan to any shareholder or to any concern in which the sbareboider is a member' or a partna' and in which he has a substantial interest shall be includible as dividend the expression "codceiil", for the purpoaes of this provision, means a hiddu undivided family or a finn or an association of persons or a body of individuals or a company further, a penon shall be deemed to have a substantial interest in a concern, other than a coidpmy, if such penod is at any time during the previous year beneficially entitled to not less than twenty per cenl of the income of such concern in relation to a company, the provisions of clause (32) of section 2 will apply  sub-clause (b) seeks ii) insert a new sub-clalde (x) in clause (24) of dais acction1be ploposed amtndldent seeks 10 provide that lily sum received by the assessee from his employees as contributions to any fund for the welfare ex such employees will be included in the income of the asscsscc  sub-clause (c) seeks to insert two new clawa (29a) and (29b)new clause (29a) seeks 10 define "long-tam capital asset" to mean a capital asset which is not a short-term capital asset new ciausc (29b) seeks to define the expression "long-term capital gain" as a capital gain arising from the transfer of a long-tam capital asset  sub-clause (d) seeks 10 insert a new clause (36a) in this section with effect from the 1st day of april, 1987the proposed amendment seeks to define "public sector company" to mean any corporation established by or under any centtal, stale or provincial act or a government company within the m~g of section 617 of the companies act, 1956 sub-clause (e) seeks to amend clause (42a) of this section under the existing provisions, a "short-tam capital asset" means a capital asset held by an assessee for thirty-six months or jess, immediately preceding the dale ex its transfer the proposed amendment seeks to provide that in the case of a share held in a company, the share shall be treated as a short-tend capital asset if it is held by the aaeasee f(x' twelve months (x' less, immediately preceding the date of its transfer sub-c1ause (f) of, this clawje seeks to insert a new clause (428) in this section which defines the expression "short-term capital gain" to mean capital pin arising from the uansfer of a short-term capital asset sub-<:iausc (g) of this clause seeks to insert two new sub-clauses in clause (47) of this section which deals with the defmition of the upeaiw "anmsfel"" sub-clauie <v) refen to any transaction involving the allowing of the possession of any immovable poperty to be 1ikal or rciained in part pcrlormaocc of a contract of the nature referred to in section s3a of the tnmsfer of property act, 1882 to be' a anmsfer, while sub-clause (vi) includes any transaction which has the effect of transferring (x' enabling the enjoyment of lily immovable ploperty also as a transfer lbe expression "immovable poperty", occwring in these two new sub-<:iauses, will have the same meaning as in clause (d) of section 269ua of the acl these amendments [ ada tban amendment by sub-dause (d)) will take effect from 1st april, 1988 and will, accordingly, apply in relalion to the isicssment yell 1988-89 and subiequeol years clause 4 seeks 10 amend section 10 ex die 1ncom,18x act sub-claule <a) of this clauie poposes to insert a new ciauie (t0c) in dlis iection under the proposed amendment, any payment received by iii employee of a public sect« comjjany - the time of hii voiunrary nlciarldlellt in accordance with illy scheme which the ccottal government may, bavida repnf 10 the ecmomic viability of the public sector company and pthcr relevant circumstances, approve in this behalf ihall be exempt from lax this amendment will like effect from 1 april 1987 and will, 8ccoidin&ly apply in relation to the assessment year 1987-88 and subsequent yem  sub-clause (b) seeks to amend clause (is) of ibis icedunder the existing provisions, interest on deposits in the post office savings banks and bonus in respect of deposits under the post office savings bank (cumulative time deposits) rules, 1959 aje exempt from tax similarly, interest in a public account of the nature refmed to in item (3) in the table below rule 3 of the post office savings banks rules, 1965 is exempt up to a specified limit the post office savings bank (cumu1ative tune deposits) rules, 1959 and the post office savings banks rules, 1965 we:e substituted by the post office cwnulative time deposit rules, 1981 and the post office savings account rules, 1981, respectively the proposed amendments in sub-clause (i) of this clause seek to substiblte references to these rules currently applicable, for the refermces to the rules which are no 10ngc7 in force these amendments will take effect retrospectively from 1st \april, 1983, and will, accordingly, apply in relation to the 8ss(:ssment year 1983-84 and subsequent years  sub-clause (ii) seeks to insert a new item in suh-clause (iv) of clause (is) qf ibis sectionthis amendment seeks to provide that interest payable by public sector companies on certain specified bonds and debentures will not form part of the assessee's totafincome subject to such conditions, including the condition that the holder of such bonds or debentures registers his name and his holding with that company, as may be specified by the central government by notification in the official gazeuc this amendment will take effect from 1st april, 1987 and will, accordingly apply in relation to the assessment year 1987-88 and subsequent years  sub-clause (c) seeks to amend clause (17) of this sectionunder the existing provisions, daily allowance received by memlx7s of parliament and memlx7s of any state legislature or committees thereof is exempt from tax in addition, in the case of members of parliament, all other allowances, not exceeding twelve hundred and fifty rupees per month, and in the case of members of state legislature an amount not exceeding six hundred rupees per month, as may be notified by the central government in the official gazeue, are exempt from tax the proposed amendment seeks to provide that in the case of members of parliament any allowance received under the members of parliament (constituency allowance) rules 1986 shall, in addition to the daily allowance, be exempt from income-tax this amendment will take effect retrospectively from 1st april 1986 and will, accordingly apply in relation to the assessment year 1986-87 and subsequent years clause 5 seeks to amend section loa of the income-tax act relating to special provision in respect of newly established industrial undertakings in free trade zones under the existing provisions of the section any profits and gains of an industrial undertaking engaged in the manufacture or production of articles or things in a free trade zone are exempt from tax for a certain number of years the proposed amendment seeks to clarify that the manufacturing activity will also include the activities of processing, assembling or recording of programmes on any disc, tape perforated media or other information srorage device for the purposes of the said provisions this amendment will take effect retrospectively from 1st april, 1981 and will, accordingly, apply in relation to the assessment year 1981-82 and subsequent years  clause 6 seeks to amend section 27 of the income-tax act which defmes "owner of house property"the amendment seeks to enlarge the meaning of "owner of building" given in clause (iii) by providing that a person who eomes to have control over the property by virtue of the transactions as are referred to in clause (t) of sub-section (2) of sechon 269u a, will also be deemed to be the owner of the property the amendment also seeks to enlarge the applicability of this clause to a eompan~ or other association of persons _ this amendment will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 7 seeks to amend section 32ab of the income-tax act relating to investment deposit account sub-clause <a) seeks to amend sub-section (1) of section 32ab to clarify that the deduction under that sub-section shall be allowed in respect of the profits and gains of eligible business or profession compqted before loss, if any brought forward from earlier years is set off under section 72 of the income-tax act further, in a case where the eligible business or profession is carried on by a finn or an association of persons or a body of individuals, deduction shall not be allowable in the case of its partner or member sub-clause (b) seeks to injen definition of tho terms "new sbip", "new airaift", "new machinery or plant" and "tea board" sub-clausc (c) seeks to amend sub-section (3) to clarify ibat tho profits of eligible business or profession as computed in accordance with the provisions of clause (a> of sub-section (3) sba1i be the profils before deducting, i~r alia, the amount of income-tax paid or payable or any provision therefc:r if such amounts are debited 10 the profit and loss account sub-clause (d) sects to insat new sub-sections (sa) and (sb) it is proposed 10 provide that amounts deposited in accordance with the schemes framed or approved lijlcb" sub-&eedon (i> sball not be penniucd to be withdrawn before the expiry of a period of five years from the dale of deposit except in cases of (a) closure of business, (b) death of the assessee (c) partition of a hindu undivided family, (d) dissolution of a finn, (e) liquidation of a company and (0 in such other circumstances as may be specified in the scheme the proposed sub-section (sb) seeks 10 clarify that where any expenditure in respect of which a deduction is allowable under other provisions of the income-tax act is met wholly or partly by utilising the amounts standing 10 the credit of the assessee in the deposit account in respect of which a deduction is aljowed under sub-section (1) of seedon 32ab, then such expenditure shall be reduced by the amounls so utilised sub-clause (e) amends sub-section (6) to provide that the amount standing 10 the credit of the assessee in the deposit account may be utilised in accordance with, and within the time specified in, the scheme these amendments will take effect from 1st april, 1987 and will, accordingly, apply in relation to the assessment year 1987-88 and subsequent years clause 8 seeks to amend sub-secdon (5) of section 33ab of the income-tax act relating to tea development account the proposed amendment seeks to provide that the provisions of the section shall apply only in relation to asses"ment years 1986-87 and 1987-88 this amendment will take effect from 1st april, 1988 clause 9 seeks to insert a new clause (va) in sub-section (1) of section 36 of the income-tax act relating to certain deductions allowed under the act the proposed amendment seeks to provide that deductions in respect of any sum received by the assessee as contribution from his employees towards any welfare fund of such employees will be allowed only if such sum is credited by the assessee to the employee's account in the relevant fund on or before the due date "due date" for the purposes of this section will mean the date by which the assessee is required as an employ« to credit such contribution to the employee's account in the relevant fund under the provisions of any law or term of contract of service or otherwise  this amendment will take effect from lst april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 10 seeks to amend section 43b of the income-tax act tclating to allowability of certain expenses only on actual payment it is proposed to insert two provisos the fmt proviso seeks to provide that the seetion shall not apply to any sum referred to in clause (a) if the sum is actually paid on or befck the date on which the return of income is due to be furnished under sub-section (1) of section 139 for the previous year in which the liability to pay such sum was incurred the second proviso seeks to provide that no deduction shall be allowed in regard to the sum tcferred to in clause (b) unless such sum has actually been paid during the previous year on or before the due date the due date for the purposes of this proviso shall be the due date as under explanation to clause (va) of sub-section (1) of section 36 this amendment will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years  clause 11 seeks to insert a new section 44bb in the income-tax actunder the proposed provisions, the income of an assessee engased in the business of providing services and facilities in connection with, or supplying plant and machinery on hire used or to be used in, the exploration for and exploitation of mineral oils will be detennined at 10% of the aggregate of certain amounts the amounts in respect of which the provisions will apply would be the amounts paid or payable to the assessee or to any person on his behalf, whether in or out of india, on account of the provision of services or facilities in connection with, or the supply of plant and machinery on hire used or 10 be used in the exploration for and exploitation of mineral oils in india the amount will also include the amounts received or deemed to have been received in india by or on behalf of the asaessee on account of such services or facilities or die supply of plant and machinery on hire in respect of the explaration for iilc1 exploitation of mineral oils outside india this amendment will take retrospective effect from 1st april, 1983 and will, accordingly, apply in relation to the assessment year 1983-84 and subsequent years clause 12 seeks to insert a new section 44bba in the incom~tax act to provide for detennination of income at a flat rate of reuipts in the case of a non-resident engaged in the business of opmilion of airaaft under the existing provisions, the income of a non-resident engaged in the business of operation of aircraft is computed after allowing deductions for all expenses and statutory deductions like depreciation, eic the new section seeks to provide that the income from such business shall be computed at a flat rate of five pu cenl of the amount received or receivable by or on behalf of the assessee for carriage of passengers, live-stock, mail or goods from any place in india and the amount received or deemed to be received in india on account of such carriage from any place outside india this amendment will take effect from 1st april, 1988 and will, accordingly, apply in relation to lbe assessment year 1988-89 and subsequent years clause 13 seeks to amend section 45 of the income-tax act relatin,8 to capitai gains sub-clause (a) seeks to amend sub-section (1) to include reftzences to new sections 54g and s4h sub-clause (b) seeks to insert new sub-sections (3), (4), (5) and an explanation new sub-sections (3) and (4) seek to provide that profits or gains arising from the transfer of a capital asset by a partner to a fmll or by a member to an association of persons or body of individuals shall attract capital gains tax new sub-section (5) seeks to provide that the initial compensation awarded or determined or approved on compulsory acquisition of property shall be deemed to be assessee's income of the previous year in which the transfer took place in case any enhanced compensation is received subsequently, the compensation so received will be charged to tax as capital gains of the year in which such amount is received explanation to this section clarifies, inter alia, that in case of enhanced compensation received, the cost of acquisition and improvement shall be taken to be nil it also seeks to clarify that if due to the death of the original transferee or for any other reason enhanced compensation is received ,by any other person, it shall be deemed to be the income of the actual recipient these amendments will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 14 seeks to omit clause (ii) of section 47 of the income-tax act relating to transactions not regarded as transfer under the existing provisions, any distribution of capital assets on the dissolution of a fmn, body of individuals or other association of persons is not regarded as a transfer consequent upon the amendments being made to section 45, the provisions of clause (ii) of section 47 are being omitted this amendment will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 15 seeks to substitute a new section for section 48 relating to mode of computation and deductions under the existing provisions, capital gain is computed by deducting from the consideration received as a result of the transfer of the capital asset, expenditure incurred in connection with such transfer, the cost of acquisition of the asset and the cost of improvement thereto in addition to the aforesaid deductions, section 80t provides for certain deductions in respect of long-term capital gains arising on transfer of a capital asset by a non-corporate assessee in case of a corporate assessee, concessionai treatment in respect of long-term capital gains is allowed, not by way of deduction, but through lower rates of tax prescribed in section 115 statutory deductions or concessions, as the case may be, hitherto available in sections 80t and 115, are being incorporated in section 48 itself alsoa uniform system of deductions from long-term capital gains arising to noncorporate as well as corporate assessees is being adopted in place of lowec rates of tax for corporate assessees as at present sin~ the statuux'y deductions are being incorporated in section 48 itself, the present sections 801' and 115 are being onuued ~ub-~tion ~ the fle:w sectiqn enumerates deductions already jlvailable in the exjsting sectionjor coidp'uting the ~ll:lt!iams it provldes that m the case of long-term capital gams, further deducbons as specified 10 sub-setlion {:t} willde alio sub-section (2) provides the rates of stablux'y deduction in respect of long-term capital gains as under:-1 non-corporate assessees 2 corporate assessees the deductions mentioned above will be in addition to the threshold deduction of rsi0,ooo which shall be allocable to all assessees  the first proviso to sub-section (2) lays down the 0i'lb of deductions in a case where the long-term capital gains relate to real estate, gold, bullion or jewellery as well as any other asset the second proviso provides that in relation to the amount received as enhanced compensation, the initial deduction of ten thousand rupees allowable under sub-section (2) win be reduced by the deduction already allowed under clause (a) of section 80t in the assessment for the assessment year 1987-88 or any earlier assessment year or by the deduction allowed under clause (a) of the new sub-section (2) sub-section (3) pro,-;ides that long-term capital loss where it exceeds rslo,ooo shall be scaled down by the same percenlage of deduction as is applicable to long-term capital gains these amendments will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 16 seeks to amend section 49 of the income-tax act relating to determination of cost with reference to certain modes of acquisition under the existing provisions, where the capital asset becomes the property of the assessee on any distripution of assets on the dissolution of a ftrm, body of individuals or other association of persons, the cost of acquisition of assets is deemed to be the cost for which the previous owner of the property acquired it, subject to certain adjustments relating to improvements, etc under the proposed amendment, the aforesaid provisions will apply only if the dissolution takes place any time before the 1st april, 1987 this amendment will take effect from 1st april, 1988 clause 17 seeks to omit section 52 of the income-tax act relating to consideration for transfer in cases of uncb'statemenl this amendment will take effect from 1st april 1988 clause 18 seeks to amend section 53 of the income-tax act relating to exemption of capital pin arising on sale of a residenti8l house belonging to an individual if the consideration does not exceed rs2 lakhs if the consideration exceeds rs2lakhs, capital gain would be exempted proportionaidy under the proposed amendment, this benefit which is at pruent available to individuals only, is being exaended to hindu undivided families also further, an explanation is  inienbd to the effect that refermc:es to capil8l gain in certain sections specified in the explanation shall"be coiiiuued as refercnccs to the amount of capital pin as computed undez new section 48(1)(8) these amendments will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment  year 1988-89 and subsequent yean clause 19 leeks to amend section 54 of the income-ib act reladng 10 exemption of clpital pins on the li'idsfer of 8 reaidential house under tbe existing provisiona if an lllellee being an individual, li'idifen bis residential boule aiyinl rile 10 capilli gains and purclwel a residential boule within one year before (]i' two yean after the date of sucb il'iiiifer (]i' coiiiii'ucii a residential house within three yalii after tbal dare, the capital pin is exempted 10 the extent such pin bas been utilijed for the aforesaid pmpoees unckl the propoaed 8ii1eijdment of sub-aectim (1) by sub-clawle (a), the exanpdon is beina exlalded to hiddu undivided families also the expldnllioil below sub-aeclion (1), which defines rlong_tam capilli asset" for jiuipoici of ibis aection, is being omitted, as the dcfinidon is being shifted to section 2 existing sub-aection (2) relating 10 computation of capital gains in the case of enhanced compensation received m  compulsory acquisition is being substituted the enbanced c<iilpensation is dow propoaed to be i8xed as the income of abe' year in which such compensation is received this has been incorporated in aectioo 45 the new sub-aection (2) povides ihat where the amount of capital gain is not appi'oiiiated or utilised by the aaeaee for purchase orconsauction of the new residential house before the date for furnishing the return of income, it shall be deposited by him on or before the due date of furnishing the return of income, in an accoimt with a bank or institution specified in, and utilised in accordance with, any scheme framed by the central government in this regard the amount already utilised for purchase or construction, of the new house together with the amount so deposited shall be deemed to be the amount utilised for the purchase of a new house the proviso to sub-section (2) provides that if the amount deposited is not utilised fully for purchase or construction of new house within the period stipulaled in sub-section (i), then the amount not so utilised shau be tn:ated as the capital pin of the previous year in which the period of three years from the date of transfer of original8llet expires it further provides that the assessee shall be entitled to withdraw such amount in accadance with the aforesaid scheme expiqllqlioil to the proviso provides that where any amount becomes chargeable to tax by virtue of the proviso, the initial deduction of ten thousand rupees shall not be allowed, nor shall the benefit of exemption under section s3 be admissible these amendments will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 20 seeks to amend section s4b of the income-tax act, relating to exemption of capital gains arising from uansfcr of land used for agricultural purposes under the existing provisions, if an ~ transfers land used for agricultural purposes giving rise to capital gains and purchases any other land used for agricultural purposes, within two years after the date of such transfer, the capilli pin is exempt to the extent sueh gain has been utilised for the aforesaid purchase the proposed amendments, apart from amending sub-section (1) to make its provisions subject to the provisions of subsection (2), substitutes the existing sub-section (2) dealing with enhanced compensation and provides for the deposit of the capital gain in a scheme to be framed by the centtai government, on the same lines as detailed in the norcs on sub-section (2) of section s4 these amendments will take effect from lst april, 1988 and will, accordingly, apply in relation to the assessment ytar 1988-89 and subsequent years clause 21 seeks to amend section s4d of the income-tax act, relating to capital gaihs on compulsory acquisition of land and building forming part of an induslrial undenaking un~r theexisting ~visions, if,the transfer is by way of col\l~~lsory acq~tion of any land or building, fon:ning ~ of an mdustrial undertaking belongang to the aslessee and such 1aiid or buildina was used for the purpose of the mdustrial undertaking for at least two years preceding the date of transce)'8fld the assessee has,purchased any other land or building within a period of three years after that date or constructed a building within that ~ for the pwposes of shifting or reestablishing the said undenaicing or seuing up another industrial undertaking, the capilllll gain is exempt to the extent such gain has been utilised for the aforesaid purposes the proposed amendments, apart from amending sub-section (i) to make its provisions subject to the provisions of subsection (2), substitutes the existing sub-section (2) dealing with enhanced compensation, and provides for the deposit of the capital gain in a scheme to be framed by the centtai government, on the same lines as dciailed in the notes on sub-section (2) of section s4 'i'hese uncndmencs will1lte effect from 1st april 1988 and wi1liccoidingly apply in relalion to the asscasmcnt year 1988-89 and ~ubsequent yean clause 22 seeks to amend iection 54b of abe income-tax act rejadng to exemption from capital pin on transfer of capijal uicu in cci1iin cases under the tmisting provisioas c:epiial pins arisina on lrid8fer of lily long-term capital asset are tmempt if the full value of the c:onsidenlion is invested or deposited in  y of die specified , within a period of six months from the date of such cransfer in ciic only a part of consideration is 10 investtld or deposited a proportiolllle part of capital pin will be exempt from lax where illy jona-trrm capijalliiict is compujaorily acquiralljld the compcnsatim aw8lded is subsequendy euhanc:ed abe additional oompensadon is exedlpim from tax if it is invested by the assessee in specified assets within six months from the date of receipt of additional compcnsition sub-daules (a), (b) and (d) mate amendmenl5 of cxmequential ~ in sub-sections (i), (2) and (6) sub-clawje (c) oldies sub-aections (3), (4) and (5) dealing with ie-investment ci enhanced compensation consequendy, the benefit awilable on re-invesancnt will not be awilable in respect of additimal compensatim received theile amendments will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 23 seeks to amend section 54f of the income-tax act relating to capilal gains on transfer of a long-tmn capital asset other than a house property udder the existing provisions, if an ulessee ~g an individual, transfers any long-term capital asset other than a residen1ial boule, giving rise to capilal pins and purchues a residential boule within one year before or after the dale of sucb llulfer or consii'ucts a residential boule within ibree yean after that dare, the entire capital pin is exempt, if the cost of the new boule is not less than the net considtzalion received on bwlsfer if die 00il of the new house is less than the net consideration received, the cempuon from iong-cam eipital gain is granted propcxtionatcly sub-clause (a) (1) as to amend sub-section (1) to extend the benefit of exemption to a hindu undivided family also further, sub-clauses (a> (ii) and (b) seek to amend sub-sections (1) and (2) to increase the period of one year after the date of transfer for purchase of another residential house to two years sub-clause (c) insens a new sub-section (4) to deal with deposit of the net consideration under a scheme to be framed by the central government, on the same lines as detailed in the notes on sub-section (2) of section 54 these amendments will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years  clauje 24 seeks to insert two new sections 54g and 54h in the income-tax aclthe new ilection 540 provides for exemption of capital gains on transfer of assets in cases of industtial undertaking shifting from urban area sub-section (1) provides that if  asaeuee transfers a long-term capital asset in the nature of machinery plant, building or land used for the purposes of the business of the industrial undertaking situated in an urban area in coildccuon with the shifting of such undertaking to a non-urban area, and within a period of one year before or three yean after the date of transfc'z, purchases new machinery or plant and acquires land or building or constructs building for the purposes of his business in the area to which the undertaking is shifted or incurs expenses on shifting the original asset and transferring the establishment of the undertaking to such area and incurs expenses on such other purposes as mjly be specified in a scheme framed by the centtal government, the capital gain shall be exempt to the extent such gain has been utilised for the aforesaid purposes expiamiion to sub-section (i) defmes "urban area" on the lines of the definition in section 280y sub-section (2) contains provijions dealing with deposits of the capital gain in a scheme to be framed by the centtal government oil the same lines as detailed in the notes on sub-section (2) of aection 54 the new iicciion s4h provides for exemption of capital gains arising from ttansfer of shares in a company,lo any public sectoi' company may be specified by the central government by a nctification in the official gueue these amendmeatl will take effect from lst april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subicquent years ciauie 2s -' 10 iiiieftd iec1ion ss, providin for meanin of the expressions "adjusted", "coat of any improvement" and -coil of acquisition- sub-clause (a) iccki to amend cllule (b) of "'loeb (1) of tbia 1oction, wbicb jives ibc i'deuinj of the expn:saion "cost of any improvement", to provide that in relltion to a capiwauet beida aoodwill of a busidea ibc "cost of any improvement" shall be liken to be 1iil ' sub-c1ause (b) seeks to amend sub-lcctioo (2) which jives the meaning of ihc cltjrllsion "cost of acquisition" to provide that in idation to a capital asset being goodwill of a business, the "cost of acquisition" shad be ibc purchue price in case the assessee purchased such goodwill and in any 0iha" case it shad be 1iil these amendments will tate effect from 1st april 1988 and will accordingly, apply in relation to the assessment yra 1988-89 and subsequent years  clause 26 seeks to amend section 56 of the income-tax act relating to income from other soul'ccsthe proposed amendment seeks to provide that income of the nature referred 10 in sub-clausc (x) of clause (24) r1 section 2 (relating to certain contributions received by the assessee as an employer from his employees) will be chargeable to income-tax under the head "income from other sources" if such income is not chargeable to income-tax under the head "profits and gains of business or profession" this amendment will take effect from lst april 1988 and will accordingly apply in relation 10 the assessment year 1988-89 and subsequent years clause 27 seeks to amend section 57 of the income-tax act relating 10 certain deductions the proposed amendment seeks to provide that in the case of income of the nature referred 10 in sulklause (x) of clausc (24) of section 2, which is chargeable to income-tax under the head "income from 'other sources", deductions shall be allowable in accordance with the provisions of clause (va) of sub-section (1) of sectioll36 this amendment will take effect from 1st april 1988 and will, accordingly apply in relation 10 the assessment year 1988-89 and subsequent years clauses 28 10 30 seek to amend the following sections of the income-tax act,-(i) section 70 relating to set off of loss from one source against income from another source under the same head of income; (ii) section 71 relating to set off of loss from one head against income from another head; (iii) section 72 relating 10 carry forward and set off of business losses the said amendments purport to treallosses arising on transfer of long-term capital assets after they are scaled down by the same percentage of deduction as the long-term capital gains as any other losses so that they can be set off against income under any other head in the same year and if not fully set off may be carried forward these amendments will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 31 seeks to substitute a new section for the existing section 74 of the income-tax act dealing with losses under the head "capital gains" under the existing section 74 there are separate provisions for carry forward of unabsorbed losses relating to short-term capital assets, which can be carried forward for ei~ht subsequent years ~ set off only ~ainst capital g~ relating 10 shortterm capital assets and unabsorbed losses re~ung to "oilg-~ ca~)ita1 assets which ~ be earned forward for four subsequent succeeding years and set off only agamst capital galds relating 10 long-term capital asse~ under the proposed provisions of sub-sections (1) and (2) this distinctioil betweenthe ~ forward ~fshort-term capital losses and long-term capital losses is sought to be removed and all capltallosscs (ldcludmg losses ansmg on transfer of long-term capital assets, after they are scaled down by the ~e ~tage of ~ucti~, as ':he long-term capital gains) are to be carried forward for eight succeeding years and set off only agaldst caplw gaids, if any, m those years new sub-section (3) lays down the manner in which the capitall~ relating !o the period prior to the date of coming into effect of the new section will be treated for carry forward and set off m succeeding years this amendment will take effect from 1st april 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 32 seeks to amend section 80c of the income-tax act relating to deductions in respect of life insurance premia contributions 10 provident fund, etc under the proposed amendment any payment made by the assessee towards the cost of purchase or construction of a residential house property construction of which is completed after 31st march 1987 wid qualify for deduction wider subsection (1) of section soc the deduction will be allowable in respect of the payments made up to rupees ten thousand dlu'ing the previous year and will be subject to the monetary limits mentioned in sub-section (4) of section 8oc the deduction will be allowable in the case of individuals hindu wldivided families and certain categories of associations of persons m bodies of individuals the payments in respect of which the deduction wid be illowable under the proposed provisions wid be any payment by way of instalment or part payment of the amount due under any self-fllwlcing or other schemes of any development authorities housing board or other similar authority; or any instalment (x' part payment of the amount due to any company or co-operative society the deduction wid also be allowable in respect of repayment of loans borrowed by the assessee from government or any bank or the life insurance corporation of india and certain categories of institutions engaged in the business of providing long-term fmance for construction or purchase of houses in india any repayment of a loan borrowed from the emplo¢· will also be covcl'cd if the employer happens to be a public company stamp duty, registration fee and other expenses fm the purposes of transfer shall also be covered payment towards cost of a house property wid not however, include admission fee or cost of share or initial depbsit or the cost of land (except where the consideration for the purchase of the house property is a ~omposite amount and the cost of the land cannot be separately ascertained) or the cost of any addition alteration, cu: payment towards any expenditure in respect of which a deduction is allowable wider the provisions of section 24 will also not be included in payments towards the cost of purchase or construction of a house property in a case where the house property in respect of which a deduction has been allowed wider the aforesaid provisions, is transferred by the assessee before the expiry of five years from the end of the financial year in which the possession of such property is obtained by him, then no deduction will be allowable under the aforesaid povisions in respect of the previous year in which the transfer is made and the aggregate amowlt of deductions allowed under the aforesaid provisions in the earlier assessment years shall be chargeable to tax wider the head "income from other sources" of the previous year in which such transfer takes place  these amendments will take effect from 1st april 1988, and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 33 seelcs to amend sub-sections (3) and (5) of section 80cc of the income-tax act relating to deduction in respect of investment in certain new shares under the existing provisions, a deduction is allowable, within limits, in respect of acquisition of cenain shares offered for subscription to the public before 1st april, 1987 the proposed amendment seeks to extend the concession by three years by providing that the deduction will be allowable subject to the satisfaction of other conditions, in respect of the shares offered for subscription before lst april, 1990 it is also proposed to reduce the period of holding the shares from five years to three years these amendments will take effect from 1st april 1987 clause 34 seeks to insert a new section 80cca in the income-tax act relating to deduction in respect of deposits in accordance with such scheme as may be specified (hereafter referred to as the national savings scheme) under the proposed provisions, deduction shall be allowed in the case of an assessee being an individual, a hindu wldivided family and certain categories of associations of persons or bodies of individuals a deduction shall be allowable in relation to the deposits made in the national savings scheme the deduction shall be restricted to flfty per cent of so much of the amount deposited as does not exceed twenty thousand rupees sub-section (2) seeks to provide that in case any withdrawals (together with intetelt accrued thereon) are made from the national savings scheme, an amooot equal to flfty pee cent of the amount in respect of which deduction has been allowed shall be deemed to be the income of the assessee for the previous year in which such withdrawal is made interest accruing on the amount so deposited will be taxable only in the year of withdrawal in accordance with this sub-section (2) this amendment will take effect from 1st april 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 35 seeks to amend sub-section (5) of section bog of the income-tax act relating to deduction in respect of donations made to certain institutions or funds established in india under the existing ~ cbjations made to institutions or fundi eslablisbed for chirii8ble purposes in india qualify for deduction within limilb the plopoaed amendment loeb to provide tijil donations made 10 any rejimcnill fund or non-public fund established ~ irmed forces of the uniod for the weffin of the , and present members of such forces or their dependants shall qualify for deduction subject to the limits and conditions laid down in section 8og this amendment will take effect from 1st april, 1988 and will, accordingly, apply in relation to the islcss1dent year 1988-89 and subsequent years clause 36 seeks to amend section 80-0 of the income-tax act relating to deduction in respect of royalties, etc, from certain foreign enterprises under the existing provisions, where the income of an uiesiiec includes any sum received as royally, commission, fees or any similar payment from the government of a foreign state or a foreign entelprise, a deduction of an amount equal to fifty per cent of the income so received or receivable is allowed subject to the condition that such amount is received or receivable in convertible foreign exchange in india, or if received or receivable outside india is brought into india in accordance with the law in force in this regard expianajioil (u), howev«, provides that if any amount of income is used outside india, in the manner approved by the reserve bank of india, such amount will be deerned'to have been brought into india the proposed amendment seeks to provide that the deduction under the section will be allowed onlr if the amount has been brought into india within a period of six months from the end of the relevant ~vious year or within such an extended period as may be allowed by the commissioner after taking into account the difficulties of the assessee in getting the amount remitted to india within the stipulated period of six months the proposed amendment also seeks to make a clarificatory amendment to provide that "foreign enterprise" will mean a person who is a non-resident these amendments will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 37 seeks to amend section 80rra of the income-tax act relating to deduction in respect of remuneration received for services rendered outside india under the existing provisions, a deduction of an amount equal to fifty pet cent of any remuneration received by an individual who is a citizen of india is allowed, if such remuneration is received by him in foreign exchange from any employer for any sel'vice rendered by him outside india the proposed amendment seeks to provide that a deduction of fifty per cent of the remuneration received by the usessee or seventy-five per cent of such remuneration as is brou$ht into india by or on behalf of the assessee in accordance with the foreign exchange regulation act, 1973, whichever is high«, wid be allowable this amendment will take effect from ist april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 38 seeks to omit section 80t of the income-tax act, relatinj to deductions in respect of long-term capital gains in the case of assessees other than companies these deductions are bemg incorporated in section 48 this amendment will take effect from ist april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 39 seeks to amend section sou of the income-tax act relating to deductions in cases of totally blind or physically handicapped persons by increasing the present deduction ofrs 10,000 to rs 15,000 this amendment will take effect from ist april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 40 seeks to omit section 80vv a of the income-tax act relating to restriction on certain deductions in the case of companies with effect from 1st april, 1988 clause 41 seeks to omit chapter xi of the income-tax act (containing sections 104 to 109) relating to additional income-tax on undistributed profits under the existln,- provisions of sections 104 to 109, additional income-tax is le~b~e on certain closc:ly held companies, if they fail to distribute a specified percentage of their distributable ~fits is divl~ these sections are beinj omitted and appropriate amendments are being made in the definition of dividend in aectioll2~22) (e) to extend its applacation to payments made to any shareholder or to any concern in which a shareholder has subllanbal mtcrest this amendment will take effect from 1st april 1988 and will accordingly apply in relation to the assessment year 1988-89 and subsequent years clause 42 seeks to omit section 115 of the income-tax act relating to tax on capital gains of companies as the provisions of this section have been incaporatcd in a modifted form in section 48 this amendment will take effect from 1st april 1988 and will accordingly apply in relation to the assessment year 1988-89 and subsequent years clause 43 seeks to insert a new chapter xllb containing special povisions relating to certain companies under the proposed amendments in the case of any company whose total income as computed under the other provisions of the income-tax act in respect of any previous year is less than thirty per cent of its book profit the total income of such assessee chargeable to tax shall be deemed to be an amolult equal to thirty per cenl of such book profit for the purposes of the aforesaid provision "book profit" means the net profit as shown in the profit and loss account for the relevant previous year prepared in accordance with the provisions of parts ii and m of the sixth schedule to the companies act 1956 subject to certain adjustments it has also been provided that the aforesaid provision shall not affect the detennination of the amounts to be carried forward to the subsequent year or years under the provisions of sub-section (2) of section 32 or sub-section (3) of section 32a or clause (ii) of sub-section (1) of section 72 or section 73 or section 74 or sub-section (3) of section 74a or subsection (3) of section 80j this amendment will take effect from 1st april 1988 and will accordingly apply in relation to the assessment year 1988-89 and subsequent years clause 44 seeks to omit sub-section (12) of section 155 of the income-tax act relating to amendment of an assessment in which deduction under section 8~0 has not been allowed on certain groun4s this amendment is consequential to the amendment proposed to section 80-0 and will take effect from 1st april, 1988 and will accordingly, apply in relation 10 the assessment year 1988-89 and subsequent years clause 45 seeks to insert new sub-sections (2), (2a) and (2b) in section 192 of the income-tax act, relating to deduction of tax at source from salaries sub-section (2) provides for deduction of tax at source by an employer (as the assessee may choose) from the aggregate salary of an employee who is or has been in receipt of salary from more than one employer in the same year sub-section (2a) provides that in a case where a government servant or an employee of a public sector undertaking receives arrears of salary, the deduction of tax at source be made after allowing relief under sub-section (1) of section 89 under a procedure to be prescribed in this regard sub-section (2b) enables an assessee having income under the head "salaries" in addition to income under any other head to furnish in the prescribed manner the details of total income to his employer who shall deduct out of salary payment the tax due on total income subject to the conditions prescribed in that sub-section sub-clause (b) of this clause makes a consequential amendment in sub-section (3) to incorporate a reference to new subsectiolls (2) (2a) and (2b) these amendments will take effect from 1st june, 1987 clause 46 seeks to amend section 194 of the income-tax act relating to dividends under the existing provisions no tax is required'to be deducted at source in respect of any payment of dividend, if such dividend is paid by an account payee cheque, and the amount of such dividend or the aggregate amoldlts of such dividend paid or plyable to the shareholder during the rmancial year does not exceed one thousand rupees the proposed amendment seeks to raise the afolesaid monetary limit to two thousand five hundred rupees this amendment will take effect from 1st june, 1987 - clause 47 seeks td amend section 194a of the income-tax act relating to deduction of tax at source from interest other than interest on securities sub-clause (a) seeks to amend sub-section (1) to insert an explanation deeming credits to "interest payable account"  "suspense account" or any 0_ account as credits 10 the account of payee for the purpose of deduction of lax at sourcesub-clause (b) seeks 10 amend clause (i) of sub-section (3) under the existing provisions, no lax need be deducted at source if the aggregate amount of interest does not exceed one thousand rupees this limit is sought to be raised 10 two thousand five hundred rupees these amendments will take effect from 1st june, 1987 clause 48 seeks to amend section 194d of the income-tax act, relating to deduction of tax at source from insurance commission, 10 provide that no tax be deducted at source where the aggregate amount of insurance commission payable in a year does not exceed five thousand rupees this amendment will take effect from 1st june, 1987  clause 49 seeks to insert a new section 194e in the income-tax actthe new section provides for deduction of tax at source on payments beyond specified amounts of fees for profcs:)ional services, royalty, fees for technical services, rent, commission, brokerage and for supply of goods to government, local authority, corporation, etc sub-section (1) enumerates the types of payments which will be subjected to deduction of tax at source at the time these are credited to the payee's account, etc, and the amounts in relation to which no deduction will be necessary sub-section (2) defines certain expressions for the purposes of the section this section will not apply when payments are made by individuals and hindu undivided families these amendments will take effect from 1st june, 1987 clause 50 seeks to amend section 195 of the income-tax act, relating to deduction of tax at source on certain payments to non-residents sub-clause (a) seeks to substitute a new suly--section (1) which provides for exclusion of salary from the puyiew of the section, as such deductions are taken care of by section 192 further, this sub-section provides that the person responsible for making the payment 10 a non-resident shall deduct tax at source either at the time of payment or at the lime of crediting the amount to the account of the non-resident, whichever is earlier the explanation seeks to secure that for the purposes of sub-section (1), any amount credited to "interest payable account" or "suspense account" or any other account as moneys payable to non-resident shall be deemed to be a credit for the purpose of tax deduction at source sub-clause (b) (i) seeks to amend sub-section (2) 10 provide that the income-tax officer may determine the proportion of sum chargeable to tax in the prescribed manner sub-clause (b) (ii) seeks to insert a proviso to exclude certain types of payments, viz ,interest, royalty and fees for technical services from the provisions of sub-section ·(2) these amendments will ~e effect from 1st june, 1987 clause 51 seeks to insert a new section 195a in the income-tax act to provide for the manner of grossing up of income for computing the tax deductible at source in a case where the lax is to be bome by the payer this amendment will take effect from 1 sl june, 1987 clause 52 seeks to amend section 197 of the income-tax act relating to grant of certificate for deduction of tax at lower rate sub-clause (a) amends sub-section (i) which is consequential to the insertion of new su~section (2a) in this section and the insertion ofnew section 194e sub-clause (b) seeks 10 insert new sub-section (2a) which enables the board to make rules for prescribing a procedure in regard to issue of ceztificate by the assessing officers as prescn"bed in sub-section (1) authorising not to deduct tax at source or deduct the same at a 1o~ rate these amendments will take effect from 1st lune 1'987 clause s3 seeks to amend sections 198 200 203 204 and los of the lncome-tax act to incorporaic a reference 10 new section 194e this amendment will lake effect from 1st june 1987 clauses s4 and s5 seek to amend sections 199 and 202 of the income-tax act consequential to the insertion of new section 194e in the act tbcse amendments will take effect from 1st june 1987 clause 56 seeks to amend section 203 of the income-tax act relating to ccrtificare for tax deducted under the existing provisions any person ~ible for deduction of tax at source in accordance wiab the povisiods of the act is required at the time of credit or payment of the amount or at the time of issue of warrant of the sum to issue a certificare that the tax has been deducted and specifying the amount deducted and any other particulars as may be prescribed in the rules the amended provisiod seeks to provide that the certiflcate shai1 be issued within such time limit as may be prescribed in the rules this amendment will lake effect from 1st june 1987 clause 57 seeks to insert a new section 203a in the income-tax act the proposed new section seeks to provide that every person deducting tax at source in accordance with the provisions of chapter xvll-b, in respect of any payment made by him and who has not been allotted tax-deduction account numbez, shall apply to the income-tax authority for the allotment of a tax-deduction account numbez the tax-deduction account number so allotted shall be quoted in all challans for payment of any sum under section 200, in all certificates issued under section 203, in all the prescribed returns filed in accordance with the provisions of sections 206, 206a and 206b and in all other documents pertaining to such ttansactions which the board may p-escribe in abe rules this amendment will take effect from ] st june, 1987 clause 58 seeks to substitute a new section for section 206 of the income-tax act relating to furnishing of prescribed returns by a person paying salajy  the new section enables the board to prescribe the fonn, time-limit and procedure for submission of such returns this amendment will take effect from 1st june, 1987 clause 59 seeks to substitute a new section for section 245a of the income-tax act relating to defmitions for the purposes of chapter xixa of the act the new section amends the existing definition of "case" to exclude time-baned appeals or revisions it also defmes "income-tax authority" and other expressions 1beseamendments will take effect from istjune,1987 clause 60 seeks to amend section 245b of the income-tax act relating to the income-tax settlement commission by omitting cenain words in view of the defmition of settlement commission included in section 245a this amendment will take effect from istjune 1987 clause 61 seeks to insert new sections 245ba to 245bd as a consequence of amendment of section 245b by the taxation laws (amendment and miscellaneous provisions) act, 1986, providing for additional benches of the settlement commission sub-section (i) of section 245ba confers jurisdiction powers and authority of the settlement commission to its benches sub-section (2) provides that a bench of the settlement commission shall be presided over by the chairman or the vi<»-chairman and shad include two oiher memben sub-section (3) provides that the bench presided over by the chairman shad be the principal bench and ada benches shall be known as addiiionai benches sub-section (5) secures functioning of a bench in certain situations wheze the presiding officer or one of the other members is unable to discharge his functions sub-section (6) provides for notification by the central government of the location of the additional benches of the setdement commission new section 24sbb provides for appoinbnent of acting chainnan in certain situations new section 245bc empowers the chainnan to transfc2' cases from one bench to another new section 245bd provides that if the members of a bench differ on any point, the opinion of the majority sball prevail where the membo's are equally divided they shall state the point of diffe'scllce and make a reference to the 0iairman who shall hear the point himself or refer the case for hearing to one or more members of the settlement commission and the point of difference shall be decided according to the opinion of the majaity of the membo's who have heard the case, including those who first heard it these amendments will take effect from 1st june, 1987 clause 62 seeks to amend section 245c of the income-tax act relating to application for settlement of cases sub-clause (i) seeks to substitute the proviso to sub-section (1) to provide that the assessee shall furnish the return of income which he is or was required to furnish under any of the provisions of the act before an application can be made undc2' section 245c sub-clause (ii) seeks to substitute new sub-sections (lb) and (lc) sub-sections (ib) and (lc) provide for the manner of computation of additional amount of income-tax payable in relation to the income disclosed in the application for settlement these amendments will take effect from 1 st june, 1987 clause 63 seeks to amend section 2450 of the income-tax act relating to the procedure on receipt of application by the settlement commission sub-clause (a) inserts new sub-section (5) which is consequential to the amendment of section 2458 of the act by the taxation laws (amendment and miscellaneous provisions) act, 1986, which provides for constitution of more than one bench of the settlement commission sub-clause (b) seeks to amend sub-section (6) to provide for the payment of interest by the assessee in addition to tax and penalty sub-clause (c) seeks to amend sub-section (8) to provide that the time-limit laid down in section 186 for cancellation of registration will not apply these amendments will take effect from 1st june, 1987 clause 64 seeks to amend section 245e of the income-tax act relating to power of the settlement commission to reopen completed proceedings under the existing proviso to section 245e, the settlement commission cannot re-open any proceeding after the expiry of a period of eight years from the end of the assessment year to which such proceeding relates it is proposed to provide that no proceeding relating to any assessment year shall be re-opened by the settlement commission if the period between the end of the assessment year to which such a proceeding relates and the date of application for settlement under section 245c exceeds nine years this amendment will lake effect from 1st june, 1987 clause 65 seeks to amend section 245f of the income--tax act relating to powers and procedure of the settlement commission it is proposed to omit the words "or by way of advance tax" in sub-section (3) sub-sections (5) and (6) are being omitted as consequential to insertion of new section 245ba these amendments will take effect from 1 st june, 1987 clause 66 seeks to amend section 24sh relating to power of the settlement commission to grant immunity from prosecution and penalty sub-clause (a) inserts a proviso to sub-section (1) to preclude the settlement commission from granting immunity from prosecution in cases where prosecution has been launched prior to the date of receipt of application for settlement under section 245c sub-clause (b) inserts new sub-section (ia) which provides that an immunity granted by the settlement commission to any person shall stand withdrawn on failure of such person to pay taxes, etc, within the time allowed as per the order of settlement or on failure of such a person to comply with any other condition subject to which the immunity is granted these amendments will take effect from 1 st june, 1987 clause 67 seeks to insert a new section 245ha in the income-tax act relating to powers of the settlement commission to send a case back to the income-tax officer in case the assessee does not co-operate with the commission under the existing provisions, the settlement commission does nol possess such powers sub-section (1) provides that where the settlement commission is satisfied that the assessee has not co-operated in the proceedings before it, it willhave the power to send the case back to the income-tax officer who will then make the assessment in the ordinary manner as if no application had ever been made before the settlement commission sub-section (2) provides that in a case referred to in sub-section (1), the income-tax officer can, for the purposes of making the assessment, use any material or other information produced before the settlement commission sub-section (3) provides that where a case has been sent back to the income-tax officer, the period commencing on and from the date of application to the settlement commission and ending with the date of receipt by the income-tax officer of the order of the settlement commission shall be excluded in computing the time limits under the act these amendments will take effect from 1 st june, 1987 clause 68 seeks to amend section 245k of the income-tax act relating to bar on subsequent application for settlement in certain cases, by inserting clause (iii) to provide that the assessee whose case is sent back by the settlement commission to the income-tax officer on account of non-co-operation shall not be entitled to make any further application to that commission these amendments will take effect from 1st june, 1987 clause 69 seeks to omit section 245m of the income-tax act relating to eligibility of certain persons to make application to the settlement commission despite having filed appeal to the appellate tribunal, as the existing provisions are no longer necessary  this amendment will take effect from 1st june, 1987 clause 70 seeks to insert a new section 272bb in the income-tax act, which deals with the penalty for failure to comply with the provisions of section 203a relating to the auotment of tax-deduction account number to the person responsible for deduction of tax at source the new section provides for a penalty of a sum which may extend up to five thousand rupees this amendment will take effect from 1st june, 1987 clause 71 seeks to amend section 273b of the income-tax act to include a reference to the new section 272bb so as to shift the burden of proving a reasonable cause for failure to comply with the provisions of section 203a on the person concerned this amendment will take effect from 1 st june, 1987 clause 72 seeks to omit section 280za of the income-tax act, as the provisions relating to transfer of an industrial undertaking from urban areas have been incorporated in the new section 54g this amendment will take effect from 1st april 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clause 73 seeks to omit sections 285 and 286 of the income-tax act, relatin, to information to be given in the prescribed manner by (i) persons respodsible for paying interest, and (ii) compames regarding shareholders to whom dividends have been paid, respectively this is consequential to the substitution of new section 206 this amendment will take effect from 1st june 1987 clause 74 seeks to amend section 293 of the income-tax acl under the existing provisions, it has been provided that no suit shall lie in any civil court to set aside or modify any assessment order made under the acl the proposed amendment seeks to provide that no suit shall lie in any civil court to set aside or modify any ordez made under the acl this amendment will take effect from 1st march 1987 clause 7s seeks to amend items s and 22 of the eleventh schedule to the income-tax act under item s of the eleventh schedule, aerated waters in the manufacture of which blended flavouring concenttates in any form are used are one of the non-priority articles or things to which section 32ab and other sections of the act would not be applicable in certain cases it is proposed to make a clarificatory amendment in the item to indicate that blended flavouring concenuates would include, and would have included, synthetic essences in any form the explanation below item 22 of the schedule defines "office machines and apparatus" to include all machines and apparatus used in offices for data processing it is proposed to make a clarificatory amendment to exclude computers from the expression "data processing" so that the benefits of the provisions of section 32ab and other sections may be made available in respect of computers it is also proposed to exclude office machines and apparatus used for transmission and reception of messages from the non-priority list of articles or things as contained in this item these amendments will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year t 988-89 and subsequent years clause 76 seeks to make certain amendments of a consequential nature in different provisions of the income-tax act clause 77 seeks to amend section 2 of the wealth-tax act relating to definitions it is proposed to provide that a building or part thereof referred to in clauses (iii), (iiia) or (iiib) of section 27 of the' income-tax act shall be includible in the net wealth of the person who is deemed to be the owner under these clauses of that building or part thereof this has been introduced to achieve uniformity and consistency in the provisions of the income-tax act and other direct tax laws this amendment will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years  clause 78 seeks to insert a new clause (xxv b) in section 5 of the wealth-tax act relating to exemptionsunder the proposed provision, any deposit made under the national savings scheme referred to in section 80cca of the income-tax act will not be includible in the net wealth of the assessee this amendment will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years clauses 79 to 89 seek to amend the provisions relating to settlement of cases in chapter v a of the wealth-tax act these provisions under the wealth-tax act have been broadly brought at par with those of corresponding provisions of the income-tax act these amendments will take effect from 1st june, 1987  clause 90 seeks to amend sub-section (2a) of section 31 of the wealth-tax actunder the existing provisions, the board is empowered to waive any interest payable on account of non-payment or delay in payment of tax, on the recommendation made by the commissioner, if the board is satisfied, that such payment would cause genuine hardship the proposed amendment seeks to empower the commissioners to exercise the powers under these provisions this amendment will take effect from 1st april, 1987 further, under the existing provisions, interest can be waived, only if the amount is payable and paymc~t of such amount is likely to cause genuine hardship the proposed amendment seeks to provide that the interest levied can be waived if the amount of interest is paid or payable'"and such paymem has caused or is likely to cause genuine hardship this amendment will take effect from 1st october, 1984  clause 91 seeks to amend section 43 of the wealth-tax actunder the existing provisions, it has been provided that no suit shall lie in any civi~ court t? ~t aside o~ modify any assessment made under the act the proposed amendmem seeks to provide that no suit shall he in any civil coun to set aside or modify any order made under the act this amendment will rake effect from 1st march, 1987  clause 92 seeks to amend section 2 of the gift-tax act relating 00 definitionsit is proposed to insert a new explanation to clause (xii) to provide that a transfer of ~ny building or part the,reof referred to in clauses (iii), (iiia) or (iiib) of section 27 of the inc0!lle-~ a~t by the person wit? is deemed under the slid clauses lo be the owner thereof made voluntarily and without conslderauon in money or money s worth, shall be deemed to be a gift made by such person this amendment will take effect from 1st april, 1988 and will, accordingly, apply in relation to the assessment year 1988-89 and subsequent years  clause 93 seeks 10 amend section 42 of the gift-tax actunder the existing provisions, it bas been provided that no suit sballlie in any civil court to set aside or modify any assessment made under the acl 1be poposed amendment seeks to provide that no suit shall lie in any civil court to set aside or modify any m:ier made ljllcb' the act this amendment will take effect from 1st march, 1987 clause 94 read with the second schedule seeks to amend the customs tariff act, 1975, to-<a) raise the rate of basic customs duty on crude peb'oleum and oils obtained from bituminous minerals; (b) restructure the basic customs duty rates in respect of the following goods on specific-cum-ad valorem basis-(1) inorganic cbemicals; (2) organic chemicals; (3) aanning or dyeing extracts, dyes, pigments and other similar chemicals; (4) essential oils and resinaids; perfumery and other similar preparations; (5) soap, organic surface-active agents, washing and lubricating preparations, artificial waxes and other similar chemicals; (6) albuminoidal substances; glues; enzymes and other similar chemicals; (7) miscellaneous chemical products; (8) plastics and articles thereof; (9) iron and steel; (c) raise the rate ohmic customs duty on project imports; (d) change chapter notes in respect of chapter 98 so as to provide for specific exclusions in respect of goods which would not be covered by the new heading no 9806; (e) create a new heading no "9806" which would cover parts of machinery, appliances, instruments and articles of chapters 84 10 86, 89 and 90 of the fim schedule clause 95 seeks to levy up to the jist march, 1988 auxiliary duties of customs on all imported goods at the rate of 50 per cenl of their value clause 96 seeks to amend section 37 of the central excises and salt act, 1944, so as to empower the central government to make rules for providing for the giving of credit of sums of money with respect to raw materials used in the manufacture of excisable goods clause 97 read with the third schedule seeks to amend the schedule to the central excise tariff act, 1985, to-(a> raise the basic excise duty on-(1) cheese; (2) spices;  (3) miul!mrojs prqaaiioas of areais, dour, starch and milk; (4) iilimdi wmi:i's md ar:raiiod wiiti's; (5) pan masala (6) zinc oxide; (7) organic surface-active agents; (8) pi  ed glues and adhesives; (9) conveyor belting; (10) tra~ goods; (11) cork and articles of cork; (12) paprz and paper board; (13) viscose filament yam; (14) allied, impregnated, laminatt:d and indusirial fabrics; (15) footmar (16) micles of stone, plaster, cement asbestos and mica; (17) ceramic products; (18) glass and glass mirrors; (19) copprz wile olher ttum electrical grade; (20) metal conl8iners; (21) eieciric l1lokji's and genezajors; (22) pimary c:dis aad baueries; (23) cjec:tric iam~ (b) change the tariff deiuiplioo of-(1) sub-heading no 190410 relating to prcparal foods obtained &om cqeals; ~ j (2) sub-heading no 3907 80 relating to polybutyl tcrephthalate; (3) heading no 4901 relating to products of printing industry; (c) change the chapter notes in respect of chapter 24 and make consequential changes in the tariff description of subheading no 240411 so as to specifically cover cut-tobacco in this sub-heading; (d) change the tariff description and restructure the duty rates in respect of-(1) hydrogenated vegetable fats and oils; (2) pasta products; (3) chewing-tobacco; snuff; (4) chl<n1es; (5) soap; (6) tread rubber and otha retreading materials; (7) particle boards; fibre boards; and plywoods; (8) cotton fabrics and man-made fabrics; (9) glazed tiles; (10) electric fans clause 98 seeks to levy up to the 31st day of march, 1988, special duties of excise on all excisable goods at the rate of 10 per cent of the duty leviable under !he centtal excise tariff act clause 99 read with !he fourth schedule seeks to amend the first schedule to the additional duties of excise (goods of special importance) act, 1957, ~ (1) raise additional excise duty on free sale sugar, (2) change !he tariff description of sub-heading no 240411 so as to specifically cover cut-tobacco in this subheading; (3) change the tariff description and restructure the duty rates in respect of chewing tobacco and snuff; (4) change !he tariff description and restructure the duty rates in respect of cotton fabrics and man-made fabrics chapter v (containing clauses 100 to 107) provides for the levy of foreign exchange conservation (travel) tax on all foreign exchange released for any foreign travel by any person clause 101 defines "foreign currency", "foreign exchange", "foreign travel" and certain o!her expressions used in !he chapter clause 102 seeks to provide for the levy of a tax on all foreign exchange released for any foreign travel by any person the tax will be levied at a rate of fifteen per cent on the rupee equivalent of every sum of foreign exchange so released and will be collected by the authorised dealers or money changers au!horised to deal in foreign exchange under the foreign exchange regulation act, 1973 c;lause 103 confers upon the central government power to grant exemptions from the payment of the tax by notification havmg regard to the purposes of the travel and o!ha special circumstances clause 104 provides for penalties and adjpdication of penalties the other clauses of this ciulpter deal with incidental and supplementary matters including the power of the central govanment to malce rules relating to the foreign exchange conservation (travel) tax clause 108 seeks to amend the schedule to the oil industry (development) act, 1974 which specifics ceilings on levy of excise duty as a cess on crude oil and natural gas 'the amendment proposes to raise the ceiling to one thousand rupees per tonne on crude oil and three hundred rupees per thousand cubic metres on natural gas clause 109 seeks to amend section 5 of the customs and excise revenues appellate tiibudal act, 1986, which deals with the qualifications for appointment as president and other members of the customs and excise revenues appellate tnbunal the proposed amendment seeks to clarify that in computing the pc:riod during which a penon has been a memljer of tbe indian customs and central excise service, group 'a', for the appoinbnent of technical member, diere shall ~ mcl~ any pc:riod durina which the penon has been a member of the incfian customs service class i, or ihe central exclsc servu:e oass i, as the case may be, rl the indian revenue service immediately before the constitution of ihe indian customs and central excise servicc group 'a',  memorandum regarding delegated legisla nonsub-clause (d) of clause 7 of the bill seeks to insert two new sub-sections (5a) and (5b) in section 32ab of the income-tax act relating to invesbilent deposit account under new sub-section (sa), it is provided that any amount standing to the credit of the assessee in the deposit account shall not be allowed to be withdrawn before the expiry of a period of five years from the date of deposit except for the purposes specified in the scheme to be made under that section sub-clause (e) of this clause seeks to amend sub-section (6) of this section so as to provide for a time limit to be specified in the said scheme before which any amount standing to the credit of the assessee in the deposit account should be utilised clauses 19, 20, 21 and 23 seek to amend sec·jons 54, 54b, 54d and 54f of the income-tax act to provide that if the amounts of capital gain arising under those sections are not appropriated by the assessee towards the purchase of the new asset within the period specified therein, they are required to be deposited in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the central government may, by notification in the official gazette, frame in this behalf clauses 24 of the bill seeks to introduce a new section 54g in the income-tax act which provides for exemption of capital gains on transfer of assets in cases of shifting of an industrial undertaking from urban area sub-section (2) of this new section provides that the amount of capital gain which is not appropriated by the assessee towards the cost and expenses incurred in relation to any of the purposes mentioned in sub-section (1) of that section within one year from the date on which the transfer of the original asset took place or which is not utilised by him for all or any of the purposes aforesaid before the date of furnishing the return of income under section 139 of the act, is required to be deposited by him before furnishing such return in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the central go,"emment may, by notification in th~ official gazette, frame in this behalf ~ cit ( per ( om mar ( clause 45 of the bill seeks to insert a new sub-section (2) in section 192 of the income-tax act which provides for tax to be deducted at source under the head "salaries" in a case where the assessee is employed simultaneously under more than onc employer or where he has held successively employment under more than one employer in such cases, the assessee wijj be required to furnish to the person responsible for making the payment of the tax deducted at source (being one of the employcrs) such details of the income under the head "salaries" due or received by him from the other employer or employers, the tax deducted at source therefrom and such other particulars, in such form and verified in such manner as may be prescribed by rules made under the act under a new sub-section (2b) inserted in this section, where an assessee who receives any income chargeable under the head "salaries" has in addition any income chargeable under any other head of income for the same financial year, he is required to send to the person responsible for making the payment regarding the salary income, the particulars of such other income and of any tax deducted therefrom in such form and verified in such manner as may be prescribed by rules made under the act clause 50 (b) of the bill proposes to amend sub-section (2) of section 195 of the income-tax act which enables a person responsible for paying to a non-resident any interest, not being interest on securities or other sums, etc, to deduct income-tax thereon at the rates in force under the said sub-section (2), if such pel'sqn considers that the whole of such sum would not be income chargeable in the case of the recipient, he may make an application to the income-tax officer to determine, by genetal or special order, the appropriate proportion of such sum so charged the amendment seeks to provide that the said determination should be made in the prescribed manner instead of by general or special order, as provided in the section clause s2 (b) of the bill seeks to insert a new sub-section (2a) in section 197 of the income-tax act which provides for the issue of a certificate for deduction at lower tate the new sub-section (2a) empowers the central board of direct taxes to make rules specifying the cases in which, and the circumstances, under which, an application may be made for the grant of such certificate and the conditions subject to which such certificate may be granted, and for providing for all other matters connected thezewitb clause s6 of the bill seeks to amend section 203 of the act which provides for the issue of tax-deduction certificate by the pmon who deducts the lax payable wder the act the amendment seeks to provide that the certificate shall be issued within sucb period as may be prescribed by the rules from the time of credit or payment of the same or from the issue of a cheque or warrant for payment of any dividend to a shareholder instead of issue of a certificate at the lilll~ of the credit or payment of the sum or at the time of the issue of a cheque or w8i1'8dt for the payment of any dividend to a shareholder as at present (i clause 57 of abe bill seeks to insert a new section 203a which provides for the allotment of tax-deduction account number sult-lection (1) of abe new sectim requires every person deducting tax in accordance with the provisions of the act to apply for the iiloiment« a -deduction acc;ount number within such time as may be prescribed by rules made under the act such rules may also jwvide abe dccuments relating to certain transactions in which ~ n","bet' shall be quoted clause 58 of the bill seeks to substitute a new section 206 in the income-tax act which requires ptnoil8 deducting the tax under the act to furnish the prescribed returns this section provides that the pelsoil who deducts tax shad prepare within ibe time prescribed under the rules, after the end of each financial year and deliver or cause to be delivered to the income-tax authority prescribed by rules, such returns in such form and verified in such manner and setting forth such particulars as may be prescribed by rules made under the acl clause 61 seeks to insert new section 245ba in the income-tax act sub-section (5) of this section provides for the functioning of the benches of the settlement commission, in the case of illness etc • of the members constituting a bench subject to such rules as may be made under the act clause 81 of the bill seeks to insert on the same lines a new section 22ba in the wealth-tax acl clause 96 of the bill seeks to insert a new clause (xvib) in section 37 of the central excises act to empower the centtal government to make rules to provide for the credit of sums of money with respect to raw materials used in the manufacture of excisable goods clause 106 of the bill empowers the central government, by notif1c8tion in the official gazette, 10 make rules for carrying out the pwtloses of chapter v of the bill relating to levy of foreign exchange conservation (travel) tax sub-clause (2) of this clause enumerates the matters with respect to which the central government may make rules 1bese matters relate, inter alia, to the collection of foreign exchange conservation (travel) tax, the authorities by whom adjudication of penalties or other functions under the chapter shall be discharged, the manner in which such tax or penalties due unc:b' the chapta' shall be payable the procedure for adjudication of penalties appeals against orc:b's made under the chapter, the manner in which and the time within which such appeals may be preferred and the fees payable therefor, the refunds and other particulars which may be required to be furnished for the purposes of the chapter and any other matter which is required 10 be provided for by rules under the chapter the matters in respect of which schemes or rules may be made in accordance with the aforesaid provisions are matters of procedure and detail, and it is not practicable to provide for them in the bill itself the delegation of legislative powers is, therefore, of a normal character a bill to give effect to the financial proposals of the central government for the financial year 1987-88 