 corrigendapage 21, in line 45, for "order of the" read "order of'; page 23, in line 28, for "or being a transfer" read "or a transfer"; page 74 in lines 5 and 4 from bottom, for "amen-ment" read uamendment"  the finan(je bill, 1d78(as introduced in lok sabha)  arrangement of clausesclavses  chapter i puumiji(aay1 short title uad oommeocem8llt  chapter iirates of iifcomiio-tax 2 income-tax  chapter mdract talu 3 ameddment of section 6 4 amendment of section 23 5 amendment of section 32 6 amendment of 8ection 35b 7 insertion of new aectlon 35cca 8 ameddment of 8ection 37 9 ameddment of section 52 10 amendment of section 54 11 amendment of section mb 12 amendment of section md 13 amendment of section 54e 14 ameddment of section 72a 15 amendm8dt of section 80a 18 amendment of 8ectlon 80c 17 insertion of new 8ectlon 80cc 18 amendment of section 80p 18 ameddment of 88otlon 155 20 am8ddmeat of 88ctjon '193 21 ld8eruon of new 8ectjon 194bb  clauses22 amendment of section 208 23 ameadmeat of section 209-24 insertion of new section 209a 25 amendment of section 211 26 amendment of section 212 27 amendment of section 215 28 amendmeat of section 216 29 amendmeat of section 217 30 substitution of new section for section 218 31 ameddment of section 273 32 consequentlal amendments to oertajn sections 33 amendment of act 45 of 19'14  chapter iv inoiuct talis34 amendment of act 51 of 1975 35 auxiliary dutle8 of onstams 36 amendment of act 1 of 1944 37 special duties d exol8e 38 dlaoontlnuanoe of salt duty  chapter v miscellaluovs39 amendment of act 6 of 1898 40 amendment of act 38 of 19'14  the schedule the finance bill, 1978 billto bive effect to the fiftlll'lcitd propostds of the centrtd gollemjlltnt for the fbumeitd yefll'1978'79 be it 8d8cted by parl1amedt in the tw8llty-nm1h year of the republic of idd1a as follow:- chapter i pileliminajlyi (1) this act may be called the ftnanoe act, 1978 5 (2) save as otherwise provided in thls act, s8ctiou 2 to 33 and section 40 shall be deemed to have come into force on the 1st day of aprn, 1918  chapter d10 rates ofincom~tax z (1) subject to the provisions of sub-aeotlou (2) add (3), for the assessment year commenciog on the 1st day of aprn, 1978, inoome-tu shall be charged at the rates specified in part i of the schedule aad shall be moreased,-15 (ca) in the c8888 to which paragraphs a, b, c add d of that part apply, by 8 surcharp for purposes of the unjon; add (b) in the case8 to which paragraph e of that part applies, by a surcharge, calculated in each oase in the m8lll1er provbied therein (2) in the cases to wjrlch sub-paragraph lor &lb-paragraph ii of paragraph a of part ! of the schedule applies, where the assessee bas, in the previous year, any net agrloultural income, in addition to totalldoome, and the total income exceeds ten thousand rupees, then, -6 (4) the net agricultural income shall be taken into account, in the manner provided in clause (b) (that is to say, aa if the net agricultural income were comprised 1d the total income after the first eight thousand rupees of the total income but wlthout beldg liable to tax), only for the 10 purpose of charging1dcome-tax 1d respect of the total income; and (b) the income-tax chargeable shall be calculated as follows:-(i) the total ldcome and the net agricultural income 16 shall be aggregated and the amount of inoome-tax shall be determined in respect of the aggregate income at the rates spec if ted in sub-paragraph lor, as the cue may be, sub-paragraph ii of the said paragraph a, as if such aggrepte bloome were the total inoome: 20 provided that for the purposes of determlnidg the amount of income-tax in acoordance wlth thts sub-clause, the provisioll8 of clause (ii) of the proviso below &lb-paragraph lor, aa the case may be, &lb-paragraph ii of the said paragraph a add the provisions relatlag to 25 surcharge on income-tax in the said &lb-paragraphs shall dot apply; (ii) the net agricultural income shall be increased by a sum of eight thousand rupees and the amount of income-tax shall be determined 1d respect of the net 30 agricultural income as 80 inoreased at the rates specified tn sub-paragraph lor, as the case may be, &lb-paragraph ii of the said paragraph a, as if the net agrioulturallncome as so increased were the totaltnoome: provided that for the purposes of determlnutg the 35 amount of income-tax in accordance with this sub-clause, the proviaioll8 of clause (i) and clause (ii) of the proviso below sub-paragraph lor, as the case may be, sub-paragraph ii of the said paragraph a and the provisions relatjdg to surcharge on income-tax tn the said sub-40 paragraphs shall not apply; (iii) the amoun, of idoome-tax determined in acoordadce with sub-clauae (t) ball be reduced by the amouut of income-tax determined in acoordance with aub-olause (ii): 5 provtded that where the sum 80 arrived at exceeds seventy per oent of the amount by which the total income exceeds ted thou88dd rupees, the exoe8s shall bed18regarded; 10 (itl) the amount of idoome-tax determined in acoordadce with aub-olauae (iii) aha11 be idoreased by a surcharge for pj,rpo8e8 of the ullidn calmljated at the rate of fjfteell per cent of auch income-tu add the sum 80 arrived at shall be theldoome-tax in respect of the totallnoome 15 (3) iii c8888 to whleb the pl'ov18lons of chapter xu or 43 of 1961 hction 184 of the idoome-tax act, 1961 (hereinafter referrild to 88 the liloome-tax act) apply, the tu chargeable shall be determined 88 provided in that chapter or that section ~ with reference to the rate8 imposed by sub-section (1) or the 20 rates 88 specified in that chapter or section, 88 the cue may be (4) iii c88es in which tax has to be'deduoted udder motions 193, 194, 194a, 1~, 194bb, 194» add 196 of the inoome-tax act at the rates in force, the deduction shall be 25 made at the rates 8pecifled in part u of the schedule (5) &lbject to the prov181ods of bub-section (6), in cues in which inoome-tax h88 to be calculated udder the fir8t provtao to sub-section (5) of section 132 of the inooble-tax act or oharged udder sub-section (4) of section 172 or sub-section (2) of 30 section 174 or section 175 or sub-section (2) of section 176 of the said act or deducted udder section 192 of the said act from idoome chargeable udder the head ''salaries'' or deducted udder sub-seotjon (9) of section 80b of the said act from aa,y payment referred to in the said 8ub-seouon (9) or in which the 35 liadvlldoe tax" payable udder chapter xvu-c of the said act has to be oomputed, at the rate or rate in force, such idoometax or, 88 the c88e may be, "advadce tax" shall be 80 caloulated charged, deducted or computed at til;"; rate or rates specified in ll~rt m of the sobedule: 40 provjded that in c88es to which the pl'ov ibions of chapter xu or section 164 of the idcome-tax act apply, "advaace tu" shall be oompj,ted with refereuce to the rates impolled by tb18 sub-section or the rates as specified in that chapter or section, 88 the cue may be (6) in the cases to whlch s~paragraph i or sub-paragraph n of paragraph a of part ill of the schedule applies where the assessee has in the previous year or if by virtue of any provision of the income-tax act, idcome-tax is to be charged m respect of the mcome of a period other than the previous 5 year in such other period any net agrlcultural income, in addition to total income and the total income exceeds ten thousand rupees,  then, in calculating income-tax udder the first proviso to sub-section (5) of secuon 132 of the incometax act or m chargldg income-tax under sub-section (2) of 10 section 174 or section 175 or sub-section (2) of section 176 of the said act or in computing the "advance tax" payable under chapter xvu-c of the said act,at the rate or rates in force,-(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) (that is to 15 say, as if the net agricultural fdcome were comprised in the total income after the first eight thousand rupees of the total inoome but without being liable flo tax) only for the purpose of calculattdg, cbarg1dg or computfdg such income-tax or as the case may be "advance tax" in 20 respect of the total idcome; &lid (b) such income-tu or, as the case may be, "advance tax" shall be 80 calculated charged or complted as follows:-(il the totallncome 8nd the net agrjcultural mcome bha1l be aggregated add the amount of tnoome-tax or 25 "advance tax" shall be determined in respect of the saregate income at the rates specified in bub-paragraph i or as the case may be &lb-paragraph n of the said paragraph a as if such aggregate income were the total income: 30 provided that for the plrpoaes of determining the amount of income-tax or "advance tax" in accordance with this sub-clause, the provisions of clause (ii) of the proviso below sub-paragraph i or as the case may be, sub-paragraph n of the said paragraph a and the 35 provisions re1atldg to surcharge on income-tax in the said 8ub-paragrapha ahall not apply; (ii) the net agrlculturallnoome shall be increased by a sum of eight tbousadd nlpees and the amount of idcome-tax or "advance tax" shall be determined in 40 respect of the net agricu1tural income as 80 mcreased at the rates specified iii lab-paragraph i or, as the case may be, sub-paragraph d of the said paragraph a, u if the det apicultura! fdcome u 80 idcreued were the tow idoome: 46 provided that for the purposes at determining the amount of income-tax or "advance tax" in accordance with this sub-clause the provisions of clause (t) add clause (ii) of the proviso below sub-paragraph i 5 or as the case may be bub-paragrapb n of the said paragraph a and the provisions relating to surcharge on inoome-tax in the said sub-paragraphs shall not apply; (iii) the amount of income-tax or "advance tax" 10 determined in accordance with sub-clause (i) shall be reducetd by the amollllt of income-tax or as the case may be "advance ux" determined in accordance with sub-clause (ii) : provjded that where the sum so arrived at exceeds 15 seventy per cent of the amount by which the total  income exceeds ten thoussdd rupees the excess shall be disregarded; (iv) the amount of income-tax or "advance tax" determined in accordance with sub-clause (iii) shall 20 be increased by a surcharge for purposes of the union calculated at the rate of fifteen per cent of such inoometax or as the case may be "advance tax" and the sum 80 arrived at shall be the income-tax or as the case may be "advance tax" in respect of the total income 25 (7) for the purposes of this section and the schecule-(a) "company in which the public are substanttally interested" means a company which is such a company as is 1"8ferred to in section 108 of the inoome-tax act; (b) "domestic company" means an idd1an oompany or any 30 other company which in respect of its income liable to income-tax udder tile idcome-tu act for the  eessment year commencjdg on the 1st day of april, 1978, baa made the prescribed arraaaements for the declaration and payment within india of the dlvtdeads (including dlvldedda on 35 prefereace aharea) payable out of such income in accordance with the provisions of section 194 of that act; (e) "1ndu8trial company" means a company which is mainly eagapd in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in m1djng eiplajl4tion - -for the purpoljes of this clau8e, a company shall be deemed to be mainly engaged in the bu8iness of generation or distribution of electricity or any 9ther form of power or in the construction of ships or in the manufacture or proc8ssldg of goods or 6 in mining, if the income attributable to anyone or more of the aforesaid activities included in its total income of the previous year (as oompgted before malddg any deduotion under chapter via of the income-tax act) is not less than flfty-one per cent of suoh total income; 10 (d) "insurance oonvnisslon" means any remuneration or reward, whether by way of commission or otherwise, for 80ucjtldg or proourldg insurance business (idoludldg business relating to the codtmubdce, renewal or revival of policies of tnsuranoe); 16 (t) "net qrlcultural1noome", in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person compgted in accordance wjth the rules codtaided in part iv of the sc~e; 20 (f) "tax-free security" means ildy security of the central government issued or declared to be idcome-tax free, or any security ot a state governmeat jasued income-tax free, the income-tax whereon ja payable by the state government; 25 (8) all other words &lid apreastou used in this aeotion or in the sohedul;e bat not defined in this subaeotjon add defined in the income-tax act shall have the meanidp, respect1vely, ass1ped to them in that act 80  chapter m diuct taus incdm~wl in section 6 of the ldoome-tax act, in clause (1), the following eiplanatjok ahall be inserted at the end with effeot from the 1st day of april, 1979, namely:-'eiplanauon - -in the case of an iddlvjdual, being a cwzen of india, who is renderldg service outside india and wild 18 or bas been in india on leave or vacatidd in the previous year, the provlalons of sub-clauses (b) and (c) hall apply in relation to that year as if for the words "thirty days" and "sixty days" respectively occurring in the said sub-clauses the words "ninety days" had been substituted: 5 amendment of section 23-10 provided that such service outside lddia has been sponsored by the central government or the terms and conditions of such service have bean approved by the central government or the presoribed authority' •• in section 23 of the income-tax act, in the second proviso to sub-section (1), with effect from the 1st day of aprll, 1979, -(a) in olause (b) for the words, fliores and letters "completed after ihe 318t day of march, 1970", the wordst figures add letters "completed after the 31st day of march, 1970 but before the 1st day of aprn, 1978" shall be substituted; 15 (b) for the words, braokets uu:lletters "so, however, that the income in respect of any residential unit referred to in clause (a) or clause (b) is in do case a loss ", the following shall be substituted namely:-20 ~'(c) in the case of a bundlng oomprisingone or more resjdedtial units, the erection of which is completed after the 31st day of march, 1978, for a period of five years from the date of completion of the buadlng, be t'educed by a sum equal to the aggregate of -26 (i) in respect of any residential unit whose bddual value as 80 determlded does not exceed two thousand four bundred rupees, the amount of such amwal value; 30 (ti) in respect of any resldedtial unit whose annual value as so determined exceeds two thousand four bundred rupees an amount of two tbouaand four bmdred rupees, 80, however that the income in respect of any residential unit referred to in olause (a) or clause (b) or olause (e) is in do case a 108s " | allead    ||-----------|| llt       || of        || action   || 32       || 36        |i in section 32 of the idoome-tax act, in ialb-seotlon (1), in olause (iv), for the words "twenty per cent ", the words "forty per oent" shall be substituted with effect from the 1st day of aprn 1979 amendmeat of aectioa 35b •• in section 36b of the inoome-tax act, in sub-section (1), in clause (a) -40 (a) after the words figures add letters "after the 29th day of february, 1868", the :orda, ftaures &lid letten ''but before the 1st dq of april, 1978" shall be ldserted; (b) in the proviso, after the words, figures add letter8 "after the 28th c:iaj of february, 1973", the words, figures add letter8 ''but before the 1st c:iaj of aprb, 1978" 8ball be 5 inserted iamrtioft of dew 1 in the 1dc0me-tax act, after sectiod 3scc, the following aectloe 35cca 8ectlon shall be ldserted with effect from the 1st day of june 1978, namely:-10 15 '35cca (1) where an assessee ldcurs any expeudlture by way of pifdleat of ady sum, to an association or ldbtltutlon to which this sectiod applles to be used for carrying out any programme of rural development approved by the pre8crlbed authority, the asse8bee 8hall be allowed a deduction of the amount 01 such expeddlture idcurred during the previous year dpeadiblle by ",ofp,t to uaoclati  a iidci lptltlltloaa for ciiiijul& oat raal devlopmeat  p_ (2) this sectiod applies to any associatlon or ldstitutlod-(a) which baa as its abject the uddertakidg of any programme of nlral developmedt; and (b) which ls for the time beldg approved 10 this behalf by the prescribed authority: 20 provided that the pre8cribed authority shall dot grant 8uch approval for more thad three years at a time ezplflllcltioli -for the purpose of thls sectlod, ''programme 01 rural development" shall have the meanlng asslped to it ld the etpl4lllauon to sub-8ectlon (1) of sectlod 25 36cc (3) where a de&lctlon udder this sectlod ls claimed add allowed for any as8es8ment year ld respect 01 any exp8ddlture referred to 10 sub-sectlod ( 1), deduction shall dot be allowed id· respect of such expenditure udder sectlon 36c or sectiod 3&cc 30 or sectlad log or any other provls ion of this act for the same or any other asessment year ' l in i8otlod 37 of the income-tax act after nb-sectloll (3), the followldl nb-aecucliui amd ••• of aectl37 sball be ldberted wl til effect from the 1st day of april 1979, luudely:-6 '(ja) notwtth8taddldg anything oontained in sub-section (1) but without prejudice to the provlslons of 8ub-sectlon (3) where the 81gregate expenditure ldcurred by ad as8essee on advertisement, publlolty add8ale8 promotion in india exoeeds twedty thouadd rupees, 80 muoh of suoh aggregate expenditure as is equal to ad amount oaloulated as provided hereunder shall not be allowed as a deduotlon, namelys-10 10 per cent of the adjusted expenditure; (t) where such aarepte up8ndlture does not exceed i per cent of the turnover or, as the case may be gros8 recelpt8 of the bu8lness or profe8slon 16 121 per cent of the adju8ted expenditure, 20 (if) where such aggregate expenditure exceeds i per cent but doel not exceed i per cent of the turnover or, as the case may be gross recelpt8 of the busines8 or profe881on 15 per oent of the adjusted expenditure 25 oil) where such aggregate expenditure exceeds i per cent of the turnover or as the case may be, gross receipts of the business or profession £%i'iiiiat'oii - for the purpo8es of this sub-sectlon-30 (a) "adjusted expenditure" means the aggregate expeddlture 'ldcurred by the assessee on advertlsement, publloity add sales promotion in india as reclloed by so much of such expenditure as is not allowed under sub-8ection (1) and as further reduced by so much of such expenditure a8 is not allowed under 8ub-section (jh 35 (b) ''turnover'' add "gross receipts" mean turnover or gross receipts as the case may be, as reduced by any discount or rebate allowed by the assessee 40 (3d) in a case where ad asses8ee has set up ad lndustrlal undertaking for the manufacture or produotlon of any articles, nothing in sub-section (3a) lhallapply in respect at any expenditure on advenllement, publicity or sales promotion incurred by the asse8see, lor the purposes of the business of sucb' undertaking, in the previous year in which such undertaking begins to manufacture or produce such articles and each of the two previous years immediat'=!ly succeeding that previous year ' 5 amendment of section 52 t in section 52 of the income-tax: act, in sub-sectlon(2) , in clause (b) of the proviso, the words "and the adequacy of the full value of the consideration so determined or approved is not questioned by the assessee" shall be omitted and shall be dtjemed always to have been omitted 10 amendment of secticlll 54 111 section 54 of the income-tax act shall be renumbered and shall be deemed to have been renumbered with effect from the 1st day of apru, 1974, as sub-section (1) thereof and,-(a) in sub-section (1) as so renumbered,-(i ) after the words ''for the purposes of his own or the parent's own residence", the brackets and words 15 "(hereafter in this section referred to a8 the origlnal &sset)" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of apru, 1974; (ii ~ in clause (i), for the words "18 greater than the cost of the new asset", the words and brackets "is 20 greater than the cost of the house property so purchased or constructed (hereafter in this section referred to as the new asset)" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of apru, 1974; 25 (b) after sub-section (1) as so renumbered, the followidg sub- section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of apru, 1974, namely:-'(2) where the transfer of the ortginal asset 18 by way of compulsory acqulsitioo under any law and the compensa-30 tion awarded for such acquisition is enhanced by any court, tribunal or other authority, then, (a) so much of the capital gain, computed under section 48 by taking the compensation as 80 enhanced as the full value of the consideration received or 35 accruing as a result of such transfer, as is not excluded under sub- section (1) from being oharged to tax under section 45, or (b) the capital gain attributable to the enhancement of the compensation, 40 5 whichever 18 les8 (that wbic'h is lesl beldg hereafter ld this sub-section referred to as the unadjulted capital gatn), shall, if the as8essee has within a period of one year before or after the date of receipt of the additional compensation purchased, or has within a period of two years after that date constructed, a house property for the purposes of his own residence (hereafter in this sub-section referred to as the relevant asset), be dealt with in the following manner, that is to say, -10 15 (i) if the amount of the unadjusted capital gain is gr_ter than the cost of the relevant asset, the difference between the amount of the unadjusted capital gain and 'the cost of the relevant asset lhall be charged under section 45 as the income of the previous year in which the transfer took place; and for the purpose of computing in respect of the relevant alset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be nil; or 20 25 (ii) if the amount of the unadjulted capital gain is equal to or less than the cost of the relevant asset i the unadjusted capital ga1d shall not be charged under section 45; and for the purpose of oomputlng in respect of the relevant asaetany capital gain arising from its transfer wltbld a period of three years of its purchase or construction, as the case may be, the oolt lhall be reduced by the amount of the unadjusted capital gain ejplgllgtiott -for the'purposes of this sub-section, sub-section (2) of section 54b add sub-section (2) of section 640,-30 (1) "additional compensation", in relation to the transfer of any capital asset by way of compulsory acquisition under any la\\lmeana the difference between the compensation for the acquisition of such asset as enhanced by any court, tribunal or other authority and the 36 compensation which would have been payable if such enhancement had not been made (2) the capital gain attributable to the enhancement by any court, tribunal or other authority of the compensation for the compulsory acquisition of any capital 4{) asset shall be -(a) where the computation of the capltal galn under section 48 by taking the compensatlon which would have been payable if such enhancement had not been made as the full value of the consideration received or accrul~ as a result of the transfer results in a loss or does not result in any proflts or gains chargeable to idcclme-tax udder the head "capltal galds", the capital gain computed under section 48 by taking the compensation as so enhadced as the full value of the consideratlon received or acorulng as a result of the trldsfer; and 5 (b) ld any other oa88, the difference between-(i) the capital gain computed udder section 48 by taking the oompensation as so enhanced as the full value of the consideration so received or accruing, and 10 (ii) the capital °gald oomputed under aeotion 48 by taking the compensation which would have been payable if such enhancement had dot been made as the full value of the consideration eoo-recelved or accruing ' 15 11 section 54b of the i:ncome-tax act shall be renumbered and shall be deemed to have been renumbered with effect from the 1st day of apru, 1974, as sub-section (1) thereof and-(ca) in sub-section (1) as so renumbered after the words ''used by the assessee or a parent of his for agricultural purposes" the braokets and worde "(heretnafter referred 20 to as the original asset)" shall be inserted add shall be deemed to have been lnserted with effect from the 1st day of apru, 1974; (b) after 8ub-section (1) as so renumbered the follow\dg sub- section shall be inserted and shall be deemed to have 25 been inserted with effect from the 1st day of apru, 1974, namely:-"( 2) where the transfer of the original asset is by way of compulsory acquisition ldlder any law and the compensation awarded for such acquisition is enhanced by any 30 court, trlbldlal or other authority, then, (a) so much of the capital gain, computed under sectiqn 48 by taking the compensation as so enhanced as the full value of the consideration received or accruing as a result of such transfer, as is dot excluded 35 under sub-section (1) from being charged to tax under section 45, or (b) the capital gain attributable to the enhancement of the compensation, whichever is less (that wblch is les8 being 40 hereinafter referred to 88 the unadjusted capital gain), shall tf the &iisessee has within a period of two years after the date of receipt of the additional compensation purchased any land for beldg used for agricultural purposes (hereinafter referred to as the relevant asset), be dealt with in the following 6 manner, that is to sily, -(i) tf the amount of the unadjusted capital gain is greater than the cost of the relevant asset, the difference between the amount of the unadjusted capital gain and the cost of the relevant asset shall be charged under section 45 10 as the income of the prevlous year in which the transfer took place; and for the purpose of computing in respect of the' relevant asset any capital gain' arising from its transfer within a period of three years of its purchase, the cost shall be kil; or 15 iii) if the amount of the unadjusted capital gain is equal to or less than the cost of the relevant asset, the ud-adjusted capital gain shall not be charged under section 45; and for the purpose of computing in respect of the relevant a88et any capital gain arising from its 20 transfer within a period of three years of its purchase, the cost shall be reduced by the amount of the unadjusted capital galn ti iz sectlon 54d of the income-tax act shall be renumbered and shall be deemed to have been renumbered with effect from 25 the 1st day of april, 1974, as sub-sectlon (1) thereof and,-(a) in sub-section (1) as so renumbered, after the words ''for the purposes of the business of the sald undertaking", the brackets and words "(hereafter in this section referred to as the original asset)" shall be inserted and shall be 30 deemed to have been inserted with eft'ect from the 1st day of aprll, 1974; (b) after sub- section (1) as so renumbered, the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of april, 1974, 35 namely:-ti (2)wbere the compensation awarded for the compulsory acquisition of the origtnal asset is enhanoed by any court tribunal or other authority, then, (a) so much of the capital gain, computed under 40 section 48 by taking the compensation as so enhanced as the full value of the consideration received or accruing as a result of such transfer, as is not excluded udder sub-section (1) from beidi charged to tax under section 45, or (b) the capital gain attributable to the enhadcemen~ of the compensation, whichever ia less (that which i8 leaa beldg hereafter in this bub-section referred to as the unadjusted capital galn), shall, if the use8see has within a period of three yeara after the 5 date of receipt of the additional comped8ation purchased any land or buuding or any right ld any land or buuding or coutructed any buuding for the purposes of shifting or re-establlshldg the undertaking referred to in sub- section (1) or setting up another industrial undertaking (such land, 10 building or right being hereafter in this sub-section refel"red to as the nlevant asset), be dealt with in the following manner, that is to say -(i) if the amount of the udadjusted capital gain is greater than the cost of the relevant asset, the difference between 15 the amount 01 the unad,usted capital gaid and the c08t of the relevant asset shall be charged under 8ection 45 as the 1dcome of the previoua year id which the transfer took place; and for the purpose of computing ld respect of the relevant asset any capital gaid arising from its 20 transfer within a period of three years of its purchase or cod8tnlctlon, as the case may be, the cost shall be nil; or 25 30 (if) if the amount of the udadjusted capital gaid is equal to or les8 than the cost of the relevant asset the unadjusted capital gaid shall not be charged under section 46; and for the purpose of computing ld respect of the relevant asset any capital gaid arisldg from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be recuced by the amoudt of the unadjusted capital gald " 11 in secttcm 54e is directed to be ldeerted by sectlon 13 of the fldadce (no2) act, 197'0 of tbe ldcome-tax act,-(a) tn sub-ectlon (1),-35 (i) in explanation i, -(1) id the opedlbg portion, after the words "for the purposes of this sub-section", the words, brackets and figure "and sub-section(3) " shall be inserted; (1) id clause (v), the words, figures and letters "where the investment in such shares is made before 40 the 1st day of march, 1978" shall be inserted at the end; (3) after clause (v), ·the following clause sball be inserted, namely:-" (11(1) equity shares forming part of any eugthle issue of cbpital~wbere the investment ld such shares is made 5 after the 28th day of february, 1878,,~ (4) in clause (vi), the words, figures and letters' ", wbere such deposits are made before the 18t day of march, 1978" shall be inserted at the end, (it) erplcmation 2 shall be renumbered a8 ecplgtlgtimt 4 10 add before the erplciiigtion as 80 relumbered, tbe following erp14l14tions shall be tdserted,namely:-, explghation 2 -"ellgtble issue of capital" shall have the meaning assigned to it in sub-section (3) of section 8occ 15 explanation 3 -an assessee shall not be deemed to have invested the full value of the oonslderation or any part thereof in any equity shares referred to in clause (va) of explanation 1 unless the assessee has subscribed to or purchased the shares in the manner specified in 20 sub-section (4) of section 80cc '; (b) after sub- section ( 2) the followlng sub-sections shall be inserted, namely:-'(3) where the transfer of the origlnal asset is by way of compulsory acqulsition wider any law or where the full value 25 of the codblderation for the transfer of the capital asset is determined or approved by the central government or the reserve bank of india, and the compensaudill awarded for ~ such acquisition or, as the case may be, the full value of the consideration so determined or approved is enhanced 30 by any court, tribunal or other authority, then, so much of the capital gain, computed under section 48 by taking the compensation or consideration as so enhanced as the full value of the conslderation received or accruing as a result of such transfer, as is attributable to the enhancement of 35 the oompensation or consideration (hereafter in thla subsection referred to as the unadjusted capital galn) shall, tf the assessee has, within a period of six months after the date of receipt of the additional compensation or, as the case may be, the additional conslderation, invested 40 or deposited the whole or any part of such additional compensation or consideration in any specified 88set (hereafter in this section referred to as the relevant a  t) be dealt with in the following manner that is to say (a) if the cost of the relevant asset is not less than the additional compensation or consideration the whole of the unadjusted capltal gain shall not be charged 5 under section 45; (b) if the cost of the relevant asset is les8 than the additlonal compensation or consideration, so much of the unadjusted capital gain as bears to the whole of the unadjusted capital gain the same proportion as the cost 10 of acquisition of the relevant asset bears to the additional compensation or consideration shall not be charged under section 45 explanation - for the purposes of this sub-section-(i) "additional compensation" shall have the meaning 15 assigned to it in clause (1) of the explanation to subsection (2) of section 54; (if) "additional consideration" in relation to the transfer of any capital asset the consideration for which was determined or approved by the central govern- 20 mant or the reserve bank of india means the difference between the amount of consideration for such transfer as enhanced by any court tribunal or other authority and the amount of consideration which would have been payable if such enhancement had not been made; 25 (iii) "cost'~ in relation to any relevant asset being a deposit referred to in clause (vi) of explanation 1 below sub-section (1) means the amount of such deposit; (iv) the capital gain attributable to the enhancement by any court, tribunal or other authortty of the com-30 pensation for the compulsory acquisltlon of any capital alset or of the consideration for the transfer of any capital asset as determined or approved by the central government or the reserve bank of india shall be deemed to be so much of the capital gain arising from the transfer 35 of the capital asset as bears to the whole of the capital gain as computed under section 48 by taking the compensation or consideration as so enhanced as the full value of the consideration received or accruing as a result of the transfer, the same proportion as the amount 40 of additional compensatlon or consideration bears to the compensation or consideration as 80 enhanced (4) where the relevant asset is transferred, or comerted (otherwise than by transfer) into money, within a period of three years from the date of its acquisition, the amount of capital gain arising from the transfer of the orlglnal asset not charged under section 45 on the basis of the cost of such relevant asset as provided in clause (a) or as the case may 5 be, clause (b) , of sub-section (3) shall be deemed to be income ohargeable under the head "capital gains" relating to capital assets other than short-term capital assets of the previous year in which the relevant asset is transferred or converted (otherwise than by transfer) into money - 10  (5) where the cost of the equity shares referred to in clause (va) of explanation 1 is taken into account for the purposes of clause (a) or clause (b) of sub-section (i) or olause (a) or clause (b) of sub-section (3), a deduction with reference to such cost shall not be allowed under 15 section aocc' 29 of 1977· u id section 72a(as directed to be inserted by section 15 of the finance (no2) act, 197'!jof the income-tax act, after subsection (2) and before the explanation, the following sub-section shall be inserted, namely:-20 "(3)where a company owning an industrial undertalddc or a ship proposes to amalgamate witja any other company aad such other company submits the proposed scheme of  alpmatton to the specified authority and that authority is satisfied, after examinldg the scheme and taking into account 25 all relevant facts, that the conditions referred to in subsection (1) would be fulfilled if such amalgamation is effected in accor~e with suer scheme or, as the case may be in accordance with suoh scheme as modified in such muaer as that authority may specify, it shall lntlmate such otller 30 compauy that, after the amalgamation is effected lntlmordance with such scheme or, as the case may be, such sch  a •• 0 modified, it would make (unless there is any material chance in the relevant facts) a recommendation to the central gevernmeat under sub-sectiod(i) it a •• ii_nt of aecti_ iia 35 11 in section 80a of the income-tax act, sub-section (4) hall be omltted with effect from the 1st day of april, 1979 a  eadeat of aecti~ ioc ii • in aecti<l1 8tc of ihe income-tax: act, with effect from the 1st day of april, 1979-(4) for sub-sectioll (1), the following sub-secu •• liall he 40 substituted, namely:-"( 1) iii computing the total income of an assesee, titer shall be deducted, ill acoordmce with and subject to the provtsims of this section, an amount calculated, with reference to the aggregate of the sums specified in sub-ilecugil (2), at the following rates, namely:-the wbole of such aggregate; 6 (a) wbere nell aggregate does not exceed rs 6, 000 (b) wbere auch agrepte exoeeds r  6, 000 bat does not exoeed its 10,000 rs 5,000 plus 50 per oent of the amowlt by which suoh aggrega12 exceeds rs 5,000: (c) wilen suoh aaregate exceeds rsi0,ooo rs 7,500 plus 40 per 10 cent of the amount by which such aggregate exceeds rb 10,000 ": (b) in sub-aect1on(4), in clauses (ii) and (i&l), for the words ''twenty thousand rupees", the words ''thirty thousaud 15 rupees" shall be substituted idaertion f4 new 11o, in the income-tax act, after section soc, the following aection iocc section shall be inserted, namely:- 'socc (1) where an assessee, being-| (              | ci)    ||----------------|--------|| an individual, | or     || 20             |        || deduction      |        || ill            |        || le8pktof       |        || lav_tment     |        || c:ertaill new  |        || sh_           |        || (b)            |        || a              |        || hindu          |        || undi~ded       |        || family,        | or     |cel an usooiatim of persods or a body of individual con8iattng only of husband and wife govemed by the system of community of pr~ert'y in force in the union territories of dadra and nagar havell and goa, daman and diu, 25 hu purchased in the previous year (being a previous year relevant to the assessment year commencing on the 1st day of april, 1979 or any subsequent assessment year), out of his inoome ohargeable to tax, equity shares formjng part orgy eugible issue of oapital, he shall, in accordance 30 with and subject to the provisions of this section, be allowed - a deductlm in the oomputation of his total income of an amount equal to fifty per cent of the cost of such shares to him (2) where the aggregate cost to the a8sess88 of the 36 shares referred to in sub-section (1) which are purcba8ed by him to the previous year exceeds ten thousand rupees, the deduction under that nb-•• ctiod shall be allowed oaly with reference to such of those shares (being shares the aggregate oost whereof to the assessee does not exceed ten thousand rupees) as are specified by him in this behalf 6 (3) for the purposes of this section, "eligible issue of capital" means an is8ue of equity shares which satisfies the following conditims, namely:-(a) the issue is made by a public company formed add registered in india with the main object of carrying m 10 the business of construcum, manufacture or production of any article or thing, not being an article or thing specified in the list in the eleventh schedule; (b) the issue is an issue of capital made by the company for the first time; 15 (c) the shares forming part of the issue are offered for subscription to the public; (d) suchother cooditioils as may be prescribed: 10f 1956· provided that in the oase of a company which had orlgtnally been incorporated as a private company but has become a 20 public company under the provisions of the companies act, 1956, an issue of equity shares made by it for tbe first time after it has become a public company shall not be regarded as an eugible issue of capital, if-(i) such company had declared, distributed or paid 26 any dividend when it was a private company; or (ii) any of the shares forming part of such issue is offered for subscription at a premium explanation 1 -if any questioo arises as to whether any issue of equity shares would constitute an eligible issue of 30 capital for the purposes of tbls section, the questim shall be referred to the central government whose decislol1 thereon shall be final explanation 2- in this sub-sect101l and sub-sectlon (4), ''publio oompany ti shall have the mean1nc assigned to it in 86 section 3 of the companies act, 1956 1 cll956-(4) the deduction under sub-sect101l (1) shall not be allowed udl8s8 the assessee bas -(i) subscribed to the shares in pursuance of an offer for subscriptioll to the public made by the publio coidpai\v or in pur8uance of a reservation or an option in his favour by reason of hi8 being a promoter of the company; or 5 1 of 1956 (ii) purchased the shares from a person who is specified as an underwriter in respect of the issue of such shares in pursuance of clause 11 of part i of schedule n to the companies act, 1956 and who has acquired such shares by virtue of his obligation as such underwriter (5) if any equity shares, with reference to the cost of which a deduction is allowed under sub-section (1), are 10 sold or othenrise transferred by the assessee to any person at any time within a period of five years from the date of their purchase, an amount equal to fifty per cent of the cost to the usessee of the shares so sold or otherwise transferred shall be deemed to be the income of the as_ssee 15 of the previous year in which· the shares are so sold or transferred and shall be chargeable to tax accordingly explanation -a person shall be treated as having purchased any shares on the date on which his name is entered in relation to those shares in the register of 20 members of the company (6) where a deduction i8 claimed and allowed ldlder subsection (1) with reference to the cost of any equity shares, the cost of such shares shall not be taken into account for tbe purposes of section me ' 25 a meddment of sec:tioa lop 11 in section sop of the income-tax act, in sub-section (2), for clause (t) the following clause sha1l be substituted with effect from tbe 1st day of april, 1979, namely:-" (b) in the cue of aco-operati ve society being a primary society engaged in supplying milk raised by ita members to - 30 (i) a federal milk co-operative society; or (ii) the government or a local authority; or (iii) a govenunent company as defined in section 617 of the companies act, 1956 or a corporation establlshed by 1 of 1956 or wlder a central, state or provillcial act (being a company 35 or corporation engaged in supplying muk to the publio), the whole of the amoldlt of profits and gains of such business;" u iii aeotion 155 of tbe idcome-tax act,-() tter nb-sectlon (7),tiie foilowml8u~ctlca sball be inserted and shall be ~emed to have been inserted with effect from the 1st day of apru, 1974, namely:-"(7a) where, in the assessment for any year, the capital gain arlslng from the transfer of a capital asset, being a 5 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, is computed under section 48 and the compensation for such acquisition or the consideration for such transfer 10 is enhanced or further enhanced by any court, tribunal or other authority, the computation or, as the case may be, computations made earlier shall be deemed to have been wrongly made and the income-tax offloer shall, notwithstanding anything contained in this act, recompute in 15 accordance with section 8 the capltal gain arising from such transfer by taking the oompensation or the consideration as enhanoed or further enhanced, as the case may be, to be the full value of the consideration received or aooruing as a result of such transfer and shall make the 20 necessary amendment: and the provlsions of seotion 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which the additional compensation or consideration was received by 25 the assessee ": (b) in su~sect1on(8), for the words and figures ''under the provisions of section 54 ", the words, brackets and figures "under the provisions of sub-sectim( 1) of section 54" shall be substituted and shall be deemed to bave been 30 substltuted with effect from the 1st day of april, 197; (c) after sub-section (8), the following sub  ctim shall be inserted and shall be deemed to have bee inserted with effect from the 1st day of aprll, 1974, namely:-, 35 0 46 "(8a) where in the assessment for any year, a capital gain arising from the transfer by way of oompulsory acquisition under any law of any such oapital &88et as is refelted to in seoticn 54 is charged to tax and if ibe compensation for such acquisition 1s enhanced or further enhanced, as the case may be, by any oourt, trlb1dlal or other authority and the assessee purobabes, within a pertod of one year after the date of reoeipt of the addlt1mal oompensation, or construota, within a pertod of two years after that date, a house property for tbe purposes of his own residence, the jnoome-tax <>t!loer aha1l ammd the order of the assessment so as to exclude tbe amount of capital pm not chargeable to tax: udder the provisions of aub-secttoo (2) 01 aectiog mi and the provis1oda of seetl_1m ahall so far as ml\y be, apply thereto, the period of four years speolfied in sub-sect1cd (7) of that seotion being reeded from tbe end of 1he previous year in wbjch the addtuonal oompenaatlcld was received by the  8888 n; (d) in 8ub-sectlon (9), for the words, fipres add letter ''udder the provisicld8 of section 54b", the words, brackets, bearea and letter ''under the proviaigds of ilub-8eotlon (1) of section 54b" 8hall be ij!lbstitu1lad and ahall be deemed to have 10 been subsututed with effect from the 1st dbj of april, 197"; (e) after sub-sect:lm (9) the following aub-ohctlcd abalj be inserted and shad be deemed to bave been lnaer1ed with effect from the 1st day of apru, 19'7", name1y:-"(ga) where in the asse8sment for any year, a capital 15 gain arising from the transfer by way of compulsory acquisition under any law of any such capital aseet as is referred to in section 54b is charged to tax: and if the compensation for such acquisition 18 enhanced or further enhadced,as the case may be,by any court, trlbunal or 20 other authority, and within a perlod of two years after the receipt of the additional compensation, the asse8see purchases any land for being used for agricultural purposes, the income-tax officer shall amend the order of assebsment so as to exclude thet-amount of capital 25 gain not chargeable too tax under the provision8 of subsection (2) of section 54b; and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the previous year in which 30 the additlcmal compensation was received by the assessee " (f) in sub-sectfon (10), for the words, figures add letter ''under the provisions of sectlon 54d" the words, brackets, , figures and letter ''under the provisions of sub-secuoil (1) of section 54d" shall be substituted and shall be deemed to 36 have been substituted with effect from the 1st da,y of aprn, 1974; (8) subo-seotim (10) shall be renumbered and shall be deemed to have been renumbered with effect from 1he 181 day d apru 1974 as clause (i) of tbat sub-aecuciil and 40 after claue (,,) as 80 renumbered, the followm, olauae shall be blaerted and shall be deemed to have beed inserted with heet from that date, namely:-,,( b) where in the assessment for lily year a capital pin artamc from the traufer by w88 of compulsory acquisluon of any such capital uset u is referred to in section 64d 18 oharged to tax and if the oomped8&tioll for such acqulsltlon ii edhadced or further edhadced, u the oaae may be, by any court, tribunal orotber authorlty, and within a perlod of three years after the date of receipt ri the addltlcmal compensatlon, the  selbee purchues any land or buudlng or any rllbt in any ladd or buudlul or constructs any buudlag for the porpoee of shlfttng or re-8stabu8hlng the undertaking referred to in 8ub-sectlon 10 (1) 01 that 8ectlon or setting up any other industrlal undertaking, the income-tax omcer 8hall amend the order of  sessment 80  to exclude the amount of capital pin not chargeable to tax under the provl810d8 of sub1ectlclll (2) of sectlon 641>; and the provtslons of sectlon 164 shall, 16 80 far as may be, apply thereto, the perlod of four years speclfted in sub-sectlon (7) of that sectlon belog reckoned from the end of the prevlou8 year in whloh the addltloaal oomped8atlon was received by the aaaessee "; ·29 of 1977· 20 (h) in sub-section (loa), (as directed to be inserted' by 8eotim 23 of the ftdadoe (no2) act, 1977j for the words, figures and letter '  der the provislms of sectlm 64e", the words, brackets, figures and letter ''under the provl81ms of sub-secuon (1) ri secuciil me" aball be 81lbst1tuted; (i) after the aaid sub-eecttm (loa), tile follmrtng 8ub-25 sectiorl sball be inserted,namely:-"flab) where in the 888e8lp1ledt for lily year, a olllital pin artslng from the traufer bamg a transfer by wq of oompul80ry acquisitlal or being a transfer the ood8iderauon for which w  determined or approved by the central go1"8rn-30 medt or the reserve buk ri india, ri any capltal uset, not belog a 8hort-term oapltal asset, is charged to tax and if the oompensatlon or  the oa88 may be, oonslderatlclll for such transfer is enbanced or further enbanced, as the case may be, by any court, tribunal or other authorlijy, and within a period 36 of 8lx montha after the receipt of the additlonal compensauon or consideration, the assessee lmreeta or depoblts the whole or iq" part of the addltlodal oompenaatloo or ooludderatlon in any spectfted abset referred to in exptarl4tidn 1 of sub-seotion (1) of sectloll 6'e, tile income-tax ofrloer 40 sball amead the order of 88sesm_t so as to exclude the &m01dlt of oapltal gain dot chargeable to tax 1dlder· the provtsloo8 of sub-eeottoll (3) of section 54e; d the provlslon8 of 8ection 154 sball 80 far as may be, apply thereto, the period of four years spec1fted in sub-aeotim '6 (7) of that seotim being reok<ded from the end of tile previous year in whloh the addlu(lil8l comp_sauon or ocaalderatlon 9188 reoelved by the 88se8188 ft (j) the followida eql4lllgtion iiha11 be id8erlllld at the ejid ad sllall be deemed to have been so meerted lih ejreot bom the let , of april, 1"4 namely:-- ezp'iiiigtl"",, - for the purpoees 01 tbls 8eotia:a,-(~ "addftfa:aal ocmpenatlod" sball have the meanfdg & usfaded to it in olaii8e (1) of the e%p'4iiujt'''fi to sub-mctiod (2) of _dtoll mi a  tof mcti08 198 | ,               | tdil'lmkut1ou1    ||-------------------|-------------------|| oodtideratloll'~  |                   || 1q                |                   || relata            |                   || to                |                   || the               |                   || ~~               |                   || of                |                   || lily              |                   || capital           |                   || umt               |                   || the               |                   || o0ll8iderauon     |                   || far               |                   || '                | whloh             || wu                |                   || determtded        |                   || or                |                   || approved          |                   || by                |                   || the               |                   || central           | 10                || govemment         |                   || or                |                   || the               |                   || be8erve           |                   || bat               |                   || of                |                   || 1ddia,            |                   || melds             | the               || dufereaoe         |                   || betweell          |                   || the               |                   || amoudt            |                   || of                |                   || 0cid81dei'at:l0ll |                   || i                 |                   || for               |                   || aaoh              |                   || transfer          |                   || as                | en),anced         || by                |                   || 8ij1              |                   || court,            |                   || tr1budal          |                   || ar                |                   || otber             |                   || author1ty         |                   || add               |                   || tbe               | amount            || <i                |                   || ooila1deratloil   |                   || which would       | have              || if                |                   || such              | edbadcemedt       || 1&                |                   || bad               |                   || dot               |                   || been              |                   || made             | '                || ••                | in                || at101l            |                   || 183               |                   || of                |                   || the               |                   || 1i100me-tax       | act,              || the               | proviso,          || after             |                   || cl8lule           |                   || (icl)~            |                   || folldwfdc         |                   || olaaae            |                   || 8ball             |                   || be                |                   || iuerw,            |                   || nameiy:-          |                   |rt(i b) ally idtereat plfable od nattooal development balds; or" 20 ii after eect10d 194:b of the income-tax act, the follmrldg eecticlll shall be ineerted,' namely:-idli8iuaa of aew mcuaalt4bb ''lmbb ally perboil, bem, a bookmaker or a persoll to wbold a 1l08ll08 baa been p'mted by the gogel'lllllmt under any taw for the ume beld, ill force for horae raoin,in lily race 2& 0gu'88 or lor u'i'8iliidi far  rid, or betudg in 1liiy race cciilr_ w1lo 18 re8poludble for p,mg to any persod any idcome by if of wiluddp from iidy hor_ race in ad amcmmt uceedtn, two thouaad five bimdrec:i rupees shall at the time of pli1ident thereof, dedalct iiloome-tax tbel'eoll at the 30 rue8 1d force: prcmde4 tbat do de6ictloil 8_11 be made udder tlds aectta:a from iiv paymeiit iiuide before 1:be 1st da¥ <i june, 1978 fl aamiiicia_ 01 11 iii 1iecti0il joe d the liloome-tu act, ill aub-beotla1 (1l, mctiaa _ m 018l1li8 (b) for the worda, brackets ad flpres ''sub-eeotla:a 3& (3) 01 ijeouc:iili12n, the word, ftpres iiuiletter "aeotlad 209a" slwl be aubetltated with effect from the 1at d, 01 j1ule, 1978 ~ fjl ii in section 209 of the income-tax act, with effect from mctiod the lit day of june, 1978,-() in aub-seotion (1), for clause (e), the following cl  _hall be substituted, namely:-"(e) in cases where an estimate (including a revised estimate) is sent by the assessee under section 20fta or section 212, the tota1inoome so estimated shall, for the purposes of calculation of tax under this bection, be substituted for the total income referred to in clause f');"; - (b) in sub-section (2),-(i) ill clause (a>, tn the opening portion, after the words 10 "in c  s", the wolds, brackets, figures and letter "where the assessee sends a statement mder sub-section (1) of aection 209a or" shall be inserted; (ti) in clause (b), for the words, brackets, figures and letter "in cases where an estimate is sent by the assessee 15 under sub-section (1) or sw>-section (2) or sub-section (3) or sub-section (la) of section 212", the wo,rds, brackets, figures and letter "in cases where an estimate (including a revised estimate) is sent by the assessee mder section 209a or section 212" shall be substituted iamltl 01 new 20 iq in the income-tax act, after sectlc1l 209, the followmg mctkia 2q9a section shall be inserted with effect from the 1st day of june, 1978, namely :-coiipatatiod tel , pay_tof  ce ta by  '209a (1) every perlioil shall, in each financial year, 25 before the date on which the first instalment of advance tax is due in his case under sub-aecuon (1) of sectlm 211, if his current income is like 1y to exceed the amoldlt specified in sub-section (2) of section 208, lend to the income-tax officer -30 (i) where he has been previously asse88ed by way of regulu: asseslment under this act, a statement of adyance tax payable by him computed in the manner laid down in clause (i) or,  the case may be, sub-clause (i) of clause (d) of sm-lectloli (1) of seotlcll 209, or (b) where be haa not previously been auelllhd by way of repler uaeasment udder till ad, iii estimate 0'-(i) tile current income, and 40 (ii) the adyance tu payable by him on the oone  mcc:ae caloulated iii the manner laid dowd ill hctiolli09, aad ball pay such amomt of advance tax as accords with the aatement or, as the case may be, estimate in equalinbtalmenta on the date applicable in his cue under section 211 (2) where an il8seuee who i8 required to send a statement under clause (a) of sub-section (1) estimates at any time before 5 the date on wbiob the first inatalment of advance tax is due in his case under sw,-&eotiod (i) of seotioo 211 that, by reason 'of his current income being likely to be less than the incolde on which advauce tax i payable by him qdder sub-eotion (1) or for any other reason, tbe amount of advanee tax ocmputed 10 in the manner laid down in section 209 on the current idcome would be less than the amoldlt of advance tax payable by blm udder sub-section (1), he may send to the lucome-tax offtcer, in l1eu of such statement, an estimate of-(i) the current income, and 15 (il) the advuce'tax payable by him on the current income calculated m the manner laid down in section 209, and shall pay such amoudt of advance tax as accords with his estimate in equal instalments on the dates applicable in bib case mder aection 211 20 (3) where an assessee who has sent-a statement under clause (a) cl sub-section (1) estimates at any time before the last instalment of advance tax is due in his case that, by reason of his current income being likely to be less than the income on wblch advance tax is payable by him under 25 sub-section (1) or for lui)' other reason, the amount of advance tax computed in the manner laid down in 8ection 209 on the current inoome would be less than the amoudt of advance tax payable by him under sub-section (i),be may, at his option,send to the income-tax offtcer an estimate of-30 (i) the current 1doome, and (u) the advance tax'payable by him on the current inoome calculated in the madder laid down in section 209, and shall pay such amount of advance tax as accords with his estimate in equal instalments on such of the dates applicable 36 in his case tmder _ction 211 as have not expired, or in ode sum 11 only the last of such dates has not expired 5 10 (4) in the oue of any 88se •• ee who 18 uable to pay advance tax under sam-motion (1) or 8ub-aect1m (2) or, 88 the case may be sub-section (3), if by reason of the current income being iskely to be greater than tbe¥'idoome on whicb the advance tax 80 payable by him baa beed oomputed or for any ~er reason, the amount of advance tax computed in the madder laid down in aection 209 on the ourrent income (wbicb shall ~ esttm,d by the absesbee) exceeda tbe amoudt of advance tax bo payable by b1m by more thm 33-1/3 per cent of the latter amount, be shall, at any time before the date em whlcb tbe lut iillltalment of adraaoe tax 18 payable by him, aend to the income-tu ofttcer an ellt1mate of-(f)tbe cv~ent 1ncome, and (if) the advance tax payable by him em the current 11 income calculated in the m8dder lald down in section 209, md _11 pay sucb amount of advance tax as accords with bis estimate on sucb of the dates applicable in his case udder bection 211 as bave not expired, by instalments wbicb may be revised accordlng to sub-section (5): 20 25 30 35 provided tbat in a case where the commissioner is satisfied that having regard to the nature of the t;m8iness oarried on by the assessee and the date of expiry of th~ previous year in respect of such business it wul be difficult for the assessee to furnish the estimate required to be furnished by him in accordanoe with the provisions of this sub-section before the date oil whicb the last instalment of advance tax 111 due in his cue, he may, if the assessee pays the advance tax which he is liable to pay udder sm,-section (1) or sub-secticll (2) or, as the case may be, sub-section (3) before such date extend the date for furnishing such estimate up to a period of thirty days immediately following the last date of the previous year in respect ofthat business and, where the date is so extended, the assessee shall par, on or before the date as so extended, the amount by which the advance tax already paid by him falls short of the advance tax payable in accordance with his estimate (s) the assessee may send a revised estimate of the advance tax payable by him before anyone of the dates speci-bed in section 211 and adjlbt any exbess or de'dciency in respect of 8iiy instalment already paid in a subsequent tnstalment or in smsequent instalments (6) every statement or estimate under this section shall be sent in the prescribed form and verified in the prescribed 6 manner explgllatidll"'" for the purposes of this section and section 212, "current income", in relation to the advance tax payable by an assessee during fldy financial year, means the total income of the assessee ["exclusive of capital gains 10 and income referred to in sub-clause (ir) of clause (24) of section 2 if any10f the period which would be the previous year for the assessment year immediately following, that ftftancial year ' -  in section 211 ofthe income-tax ac'" in sub-section (1) 15 with effect from the let day of june, 1978,-a""", of mctioa 211 (a) in the opening portion, for the words and figures ''subject to the provisions of this section and of section 212 ", the words, figures and letter ''subject to the provisioos of this section and of sections 209a and 212" shall be substlttud; 20 (b) for the e%plgllati~ the fol1clwing eqlanfluoll shall be substituted, name 1y :-'ezplcmat'dn:- in this sub-sectiod, ''total income" means,-(a) in a cue where the advance tax is paid by the 26 uses8m in accordance with the statement sent by him udder bub-section (1) of sectioa 209a or in accordance wuh ad order 01 the lucome-tax offteer under section 210, the total incodle with reference to which the advance tax payable has been calculated in such statement or order; 30 (b) in a cue where the advance tax is paid in aecordadoe with an estimate (including a rftised estimate) made by tbb  nee under sectiod 209a or sectlod 212, the total income with reference to which the advance -tax 18 80 estimated, u reduced, in either cue, by the amount of capital pin and inoome referred to in sub-qlause (ix) of clause (24) of secti0ll2 11 any included therein i 5 a in 8ection 212 of the lacome-tax act, with effect from the 1st day of june, 1978-10 15 (~ in sub-section (lll for the words, brackets and fipres ''by reason of his totalinccme fexclusive of oapital gains and income referred to in sub-olause (ii) c:l clause (24) of sectiqll 2, u myj of the period which would be the previous year for the immediately followmg use8smeat year (suoh total income belng, hereafter in this section, referred to as curreit inccme)", the words ''by reuon of his current income" shall be 8ubstituted; (b) 8ub-section (3) shall be omitted 20 25 ft in section 215 of the income-tax act, in" sub-section (1), for the words and figures "advauce tax uqder section 212 on the basis of his own etlmate", the wprds, figures letter and bracket8 "advance tax under section 209a or sectiem 212 em the basts of his own estimate (includlng revised estimate)" 8hall be substituted with effect from the 1st day of jude, 1978 a in aection 216 of the ldcome-tax act, in clause (4) for the words brackets, figures ad letter ''under 8ub-seotion (1) or sub-section (2) or 8ub-section (3) or sub-section (ja) of section 212", the words figures and letter "under section 209a or section 212" shall be 8ubsututeld with effect free the 1st day of june 1978  in secti0l1217 ofthe inoome-tax act, with effect from the 1st day of june 19'18-30 () in 8ub-se~tod(l)-(i) for the port1od be"nntng with the word8 ''the ldoometax oftloer ftnda tht my uoh person" add eudin& with tile words "twelve per ceot per "dum", the followldg sball be sab8tituted, namely:-"the inoome-tax officer ftnda-co) that any sucb per801l as iar4tferred to in clause (g) of sub-sectioll (1) ofalton 209a h  not 6 aent the statement referred to in that clauee or tile e8t1mate in ueu of such statement referred to in sub-section (2) of that seot101l; or (b) that any such persoll  11 referred to in claue (b) ofsub-sectioll (1) of section 209a bas dot 10 seat the estimate referred to in that clau8e, 81mpe interest at the rue of twelve per cent per bnaum"; (ii) for the words ''the ,aid 8ub-seotion", tbe worda, brackets and figures ''the sald sub-section (1) or s"'-16 section (2)" shall be 8ubstituted; (b) in bub-section (la),-(l) after the words ''the ldoome-tuofflcer finds that", the words, brackets, figures and letter "lily pencll1flio  required to ~ an eatlmate udder'sub-8ection (4) 01 20 sectlon 209a qr" 8hall be ld8erted; (it) for the words "the 8aid sub-_etlon", the warda, br:kets, flpres and letter ''the sald aub-8ecticlll(4) or, as the oue may be sub-section ()a) " shall be sub8tltated ~tatloa of  for section 218 of the income-tu act, the foilowldi - mctioa for section shall be substituted with effect frem the 1st day of nctiaa 218-june 19'18, namely:- eee ''218 (1) if any asse8see has eent- tobe ta"ult (/i) under 8ub-eect1an (1) of sectiod 20ta, a statemeat, or (b) udder aecttoo 209a or seotion 212 an est1mate- or a jo revised estimate, of the advance tax payable by hjm, but does dot pay any tutalmeat in acoon:luce therewith 011 tbe date or datea 8pecifled iii hction 211, be shall be deemed to be an umame in default in respect of 8ilch jutalment or tutalmeots ii (2) if any uuee does dot pay on the specified date any tutalment of aaiyldoe tax that be is required to pay udder etion 210 and does not: before the date oil which any such instalment u is not paid becomes due, sud under subsection (1) or sub-section (2) or section 212 an estimate or a revised estimate or the advance tax payable by him, be shall - be deemed to be an assessee in default in respect or such instalment or instalments (3) notwithstanding anything contained in sub-secticlll (1) or sub-section (2) an usessee shall not be deemed to be in default in reapect of any amount of which the payment is 10 deferred under section 213 ldltu after the date communicated by him to the income-tax officer under that section " amendment' of nctlan 2730 11 in the income-tax act with effect from the 1st day of june, 1978, section 273 shall be renumbered as sub-section (1) thereof and -15 ( 1) before sub-section (2) as 80 renumbered, the following sub-section shall be inserted, namely :-' "( 1) if the income-tax officer, in the course of any proceedings in connection with the regular assessment for any assessment year, is satisfied that any assesaee-20 (41) has furnished under clause (ii) of sub-section (1) of section 209a a statement of the advance tax payable by him which he knew or had reuon to believe to be untrue, or 25 (b) has without reasonable cause fatled to furnish a statement of the advance tax payable by him in accordance with the provisions of clause (ii) of sub-section (1) of section 209a, be may direct that such person shall, in addition to the amount oftax, if any, payable by him, pay by way of penalty a sum-30 35 (i) which, in the case referred to in clause (a)lshall not be less than ten per cent but shall not exceed one and a half time a the amoldlt by which the tax actually paid during the ftnadcw year immediately preceding the assesameat year under the provisions of chapter xvu-c falls abort of-(1) seventy-five per cent of the assessed tax as defined in sub-section (5) of section 215, or (2) the amount which would have been payable by way of advlldoe tax if the usesaee had furnished a oorreot 'add complete atatemeat 111' ~e with the provtslalla of c18l1lle (4 of bub-aeotioll (1) of ection 2 09a whichever is less; (ii) which in the cue referred to in o1a_ c') shall 5 dot be less than ten  r cent but sball not·eaeed me ad a half times of sneaty-fift per ceat of the asseued tax as defined 1n sub-section (5) of aectton 215 "; (2) in 8ub-section (2) as so renumbered-(1'4 for clause (ea) the foilowldl clause auli be "-1-10 tuted namely :-"(0) has furnished udder sd»-aeot1oa (1) or nbeectlm (2) or sub-hctioa (3) or aub-hgtlgd (5) of section 209a or under aub-aectloil (1) or aub-_otis (2) of section 212 an estimate of the _uii08 tu parable 16 by him which he kdew or bad reaaoa to beune to be udtrue or"; (b) in clause (ca), der the words ''us furatllaed", the words brackets fisur" ad letter ''udder aab--gtlclll (4) of aeetion 209a or" iiha1l be 1daerted; (e) in olause fb) for the words br,ketb and flprea "awl-section (3) of aectioa 212", the ward8 bracketa, letters and figures ''clause (b) of aub- ctioll (1) of eection209a" shall be substituted; (i) in clause (e) for the worda, bnoketa, ftprea 8dd 25 letter "sub-section (la) of sectlm 212", the worda, brackets fipres 8ild lettera ",_  ouoo (4) clhotion209a or sub-section (la) of eeotlon 212" shall be a1lbawated; (t) for sam-olause (2) of clauae ci> the fonowingsmclause shall be substituted namely :-30 "(2)wbere a statement wilder clauae () of s"'-8eetlon (1) of aeot1oa 209a was ful'llubed by the  e or where a notice gilder aeatlgd 210 wm lmtad to tile  , the 1dl000t payable udder aaoh  or, 88 the case may be, such notice, "; 35 (f)for cl  (iii) tile following 01  un be aatttuted namely :-1t1(,u) which in, the cue referred to in 01  ie) _ball dot be ie  tbad ted per 0811& but  lut _ued one idd a balf ttmee the amouat by wblcb-(ii) wilere the u  e h  _at a "'im uiider clauae (4, or an elm  ader clame (b), of_ section (1) of  ctlo1l 2ota, 01' an eattmete 10 ltell of a statement udder sub-hctiod (l) of that aeattaa, tbe tax payable in aooordadce wtth such  or estimlde; or 10 (b) where the  aee u required to pay adndoe tax 1d aocordadce with the notice 1aued to bim adder section 210, the tax payable udder such dotice, falls libort ~ seventy-five per cent of the  ee  ed tax  deftded til ub-aecsloa (5) of  ollon 215 it; (,) ill tbeejp~ for the warde, brackets, ftpre_ 1& and letter ''provio to sd»-aeetlon (]a) of aectlod 212", the words, brackets, ftprea add letters ''prorillo to smeectlo1l (4) of eect101l 209a or, u the aue may be, prorijlo to sub-aeotiod (]a) of aectlcm 212" shall be a~ - tbe idllowlaa ·,dmeata (beida lliiuilc1meote of a coaae--ao quaatlal utare) 8bal1 be jude 10 tile ldcome-tu act, umely :-ca , , -  c-_u_ (aj til 8ub-claue (u) of claue (l1a) of nat1cll1 a add bl cat (a) of  (1) at aeattad m ~r tile flcarea ad leuer "1mb;', the ftpre add letters "1mb, 1mbb" iibtil be aub8tltuted; (b) til  ctiode 198, 199 200, 202 203, 204 aud 206 for the ward f1aure aad l  r "ii8ctlod 1mb, ", tbe words, b- ud1ettera "1iecu0il 1mb,  ation 1mbb, " _ball be aututed a i f  of act 45 fil1t740 30  in the mterest-ta act 19"", bld»-aectloil (z) of _cltiod 8, far the worda, 8pre add letteh "before tile l8t , 01 aapat 19"''' the warda, f1pree _d leulera ''before the 18t day of aqut 11'74 or after the 2mb day 01 febnu7 11'18" 1ib8l1 be _ub8tltuted with effect from the lilt day of april, 11'79  chapter iv inojaect tausamead  t of act 51 of 1975  in the first schedule to the customs tariff act, 1976 (hereinafter referred to as the customs tariff act)-(i) after the existing entry in column (3), &gaut subheading no (2) of heading no 3'101/01 the following explanation shall be inaerted namely:-"explgftotion - - for the purpose of this sub-heading, where a fum is designed wtth a view to different vertical sections thereof being exposed separately ita length shall 10 be deemed to be the aggregate of the lengths of all such sections "i (ti) in heading no 51 01/03, for the entry in column (3), the entry "200% plus rs30 per kllol1'8d1" shall be substituted a_iliary dulies •• (1) in the cue of goods mentloned 1ft the flret schedule 16 of catoula to the customs tariff aot or in that schedule as amended from time to time, there shall be levied and collected as u auxulary duty of customs an amount equal to twenty per cent of the value of the goods as determined in accordance with the provisions of section 14 of the customs act, 1962 (hereinafter referred to as 20 52 of 1962 the customs act) (2) sub-section ( i) shall cease to have effect after the 31st day of march, 1979 except as respects thlngs 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 25 10 olll97 sub-section had then been repealed by tl central act (3) the auxtliary duties of customs referred to in sub- section (i) shall be in addttlon to any duties of customs chargeable on such goods under the customs act, or any other law for the time being in force 30 (4) the provisions of the customs act and the rules and regulatiods made the1'8udder including those relattuc to refunds and exemptiods from cmtles, shall, as far as may be apply id relation to the levy add collectlon of the auxulary duties of customs levlahle udder this section in respect of 8dy goods as 35 they apply in relation to the leyj and collection of the ciatles of culjtoms on such goods under that aot or those rules and regulations, as the case may be •• in the central excises and salt act, 1944 (herelnafter referred to as the central exclses act) in the first schedule-(i) in item no8, the eq'tiiui£idn shall be numbered as eipiancl£ton i and after the e%plancl£ton as so numbered the 5 folfowiiig explanation shall be ldaerted namely:-" fzplllntjtion ii - this item does dot lnclude -(4) base mineral ous (suitable for use in the manufacture of lubricating oils and greases) including mineral ous commonly known as transformer ou base stock or 10 transformer ou feed stock; and (b) lubricating ous ldcludlng spindle oust dushing ous and jute batchlng oils "; (ii) in item no 10 the e,tpltulgtion shall be numbered as erplcll4£ion i and after the eipi  ati on as 10 numbered tlw 15 following e%piangtion shall be inserted, namely:-"erpiclll4tioft ii - this aem does not include -(ii) base mineral ous suitable for use in the manufacture of lubricating olls and greases; and (b) lubricating ous tncludlng axle ou "; 20 (iii) in item nolla sub-item (4) shall be renumbered as sub-item (5) and before sub-item (5) as 80 renumbered, the followidg sub-item shall be inserted, namely:-three thousand and five hundred rupees per metric tonne "(4) (4) base mineral ous (suitable for use in the manu-25 facture of lubricating ous and greases) ldcludlng mineral ous commonly known as transformer oll base stock or transformer ou feed stock; three thousand and five hundred rupees per metric todd8 "; 30 (b) lubricating ous (including splddle oust dushlng oub lute batching ous and axle ou) and lubricating greases (t"l alta itedl no 11c, tile fou~  aball be ld8erted dajdi8iyt-tea rupee per metric toade i  "lld coal (excwding ugnite), and cod not elsbwiiere sp£cii'iidill ltlectluclty - two palae per kuowatt-hour ttc (11) in item no-18, after sub-item m, the followldg subitem iiha11 be luerted, lwile1y:-''iv non-cellulosic wastes, nine rupees per 10 all sor'i'b kuogram it; enlaucin - 'nats item bidludee oaly waites arialdg in, or ld relation to, tho lduufmtgn 01 mad-made fibres (other thad mmeral flbrm) add dwt-jilade filamedt yards (11i) id item no 19 m, for the entry id the third column, 11 the err ''the ddb' fortbe time be_leviable on the  fabrics, if dot a1ready paid, plus thirty per cent " 11"'  - ball be substituted, (vii) ld item no 22(3), for the 8dtry id the third columa tile 8iltry ''1'be _ for the time heidi leviable oil &be bue - furies, if dot alreuij paid, plas thlrtj per cem  11_ •• " ud1 be subatltuteda {lliil, id i  no db, for tile eatry iii the third oolulllde the eutry ''thirty per cedt " ii  '! bhall be subatltuted (il) in item no m -(a) for the word8 ''iiotob veblcld and tbactolii- tt• the"words "1i0ror vehicles and tbactobs, includ-ing traders-i' shall be substituted; (b) after ilub-ltem n, the followlda "ital ajaul be ldserted, aamely:- 30 "di tratlera twelye add half per oeal  ,, •• , (e) for ejpl  1 tm foilowbii &pl - " mall be -,ututed, diidleiy:-'ejpl __ 1 - ''iiotor yehle,," "tractor, 1dcludl1li apicultural tractortt  "tra4er" shall ldolade a cbaaaia; i but sball dot iddlude a "iole l"wiilidi upcm fixed raus '; " (~) for item no au; the fol1gwiic--u-  ted, aamely:- 5 'ma parts and accesiobles, not eujewhere specified of motoa veiucles and tractors including trailerserplg114ltion 1 - the expression "motor vehlcles" has the meanidg dslgned to it in item no m elpjlulgtidft ii - the expression ''tractors'' shall1dclude 10 acrlcultural tractors (it> ld item no88, for the eatry iii tile tblrd coblldd, the a-y 'tlve per cent tid hlorai"  be 8umutated 15 ft (1) iii the cue of aoocts c~e wttb - diity ~ trkidlee udder the central exclau act  sm_dad from time to time, read with any notlfication for tile time belpllp force luuedby tile cedtral goyermneat ip re1at1ojl to tba duty so charpable there sml1 be levied add collected - ,,w duty of acl8e eqql to five per cent of the amount so cllarpmle on such pds 20 10 011197 (2) aab-hctlon (1) shall cease to bave teeot after  31m day of march 1979 except as reepecte tb1ip doae or amtued to be dime before such c  add mdt_ 8 fil the 0ediral claues act, 1897 shall ~y upad cb c8s  r  if tbe aald sub-section had then been repealed by - cedtra1 act 25 (3) the speclal duties of excise referred to id sub-1i8ctloa (i) shall be in addition to any dutte of aol8e cbargeable on ilucb goods under the central excls  act or ~ other law for the time belpg in force 30 (4) the provisions of the central eke  act and the ruiea made thereunder lncludldc tbom re1atlnc to refunde  tiona from duties shall as far as mq be apply in relattoll to the levy and collection of the special dru •• of uclae levtble udder this sectlon in respect of ad1 idods as they apply ld relatlon to the levy and couectloll of the duuea of emt on __ joodi under that act or those rulea as  oue mq be 31 :   for the year belidjlldc on the l8t , 01, april, 1971 do draly udder the central emi8e8 act or till· cutmds tartif aat shall be levied in r88pect of alt ld&iiifactured id, or imparted idto, india  chapter v  iii the fir schedule to tile iild1ld post office act, 1898  -(4) for the sub-headlng ''"l,tters'' add the entries there-udder, the followidg ball be substituted, name1y:-"lefters 26 palae for a weight not exceeding ten grams is palte n; for every ten grams or fraction therecl, exceeding ten grams 10 (b) for the sub-headings" &,,' cards ", ''"bdh pattern'" s,i, p"kds 11 and "resistered nelupapers" and the atriel 1dlder those sub-headings, the following sball be substttuted, namely:-| "post       | 'ltds             ||-------------|-------------------|| betns       |                   || post        | cards             || contclin'ns |                   || printed     | co'"              || "limi,      |                   || ation)      |                   || 15          |                   || single      |                   || 15          |                   || palse      |                   || reply       |                   || 30          |                   || paise      |                   || post        | 'ltds             || contain'ng  |                   || print"      | colllllluk;,gtion || for         |                   || a           |                   || post        |                   || card        |                   || 20          |                   || palae      |                   |elplallgu" - -a post card shall be deemed to ccntam a 20 printed commudicat1cll, if any matter (except the name and addreu of, and other particulars rejaung to, the aender and the place and date of despatch) is recorded by pridtidi or by cyclostyung or by any other meobanical proces8, not being typewriting, ci1 any part of the post card except the right-25 band half of the address-side thereof | &ok, pattern          | ad           | scullple    ||-----------------------|--------------|-------------|| 26                    |              |             || palse                |              |             || for                   |              |             || the                   |              |             || first                 |              |             || fifty                 | grams        | or          || fraatlclll            |              |             || thereof               |              |             || 30                    |              |             || 16                    |              |             || palh                 |              |             || for                   |              |             || every                 |              |             || addfuoil8l            | twenty-five  |             || grams                 | or           |             || fractlclll tbereof,id | exoeas       |             || of                    |              |             || fifty                 |              |             || grams                 |              |             || resistered            | nellispapers |             || for                   | a weight not | exceedtn,   || fifty                 |              |             || grams                 |              |             || 2                     |              |             || palh                 |              |             || for         | a               | weight                  | exceeding fifty    | grams         ||-------------|-----------------|-------------------------|--------------------|---------------|| but         | not             | exceeding               | one hundred        | grams         || 6           |                 |                         |                    |               || paise      |                 |                         |                    |               || for         | every           | additional one hundred  | grams              |               || or          | fraction        | thereof,                | exceeding          | one hundred   || grams       |                 |                         |                    |               || 10          |                 |                         |                    |               || paise      |                 |                         |                    |               || 5           |                 |                         |                    |               || in          |                 |                         |                    |               || the         | case            | of                      | more               | than one copy || of          |                 |                         |                    |               || the         | same            |                         |                    |               || issue       |                 |                         |                    |               || of          |                 |                         |                    |               || a           |                 |                         |                    |               || registered  | newspaper       | being                   | carrjed            |               || in          |                 |                         |                    |               || the         | same            |                         |                    |               || packet-     |                 |                         |                    |               || for         | a weight        | not                     | exceeding          | one hundred   || grams       |                 |                         |                    |               || 5           |                 |                         |                    |               || paise;      |                 |                         |                    |               || 10          |                 |                         |                    |               || for         | every           | addttiollal one hundred | grams              |               || or          | fractim         | thereot,                |                    |               || in          |                 |                         |                    |               || excess      | of one hldldred |                         |                    |               || grams       |                 |                         |                    |               || 10          |                 |                         |                    |               || paise:      |                 |                         |                    |               || provided    | that            | such                    | packet             | shall         || be          |                 |                         |                    |               || delivered   | at              | any                     |                    |               || addressee's | residence       |                         |                    |               || but         |                 |                         |                    |               || sball       |                 |                         |                    |               || be          |                 |                         |                    |               || given       |                 |                         |                    |               || to          |                 |                         |                    |               || a           | recognised      |                         |                    |               || 15          |                 |                         |                    |               || agent       |                 |                         |                    |               || at          |                 |                         |                    |               || the         |                 |                         |                    |               || post        |                 |                         |                    |               || office     | "              |                         |                    |               |amendmetlt of act 38 of 1974  in the compulsory deposit scheme (income-tax payers) act 1974-( a) in sub-section (1) of section 4 -(1) in clause (i) the word "and" ocourring at the end 20 shall be omitted; (2) for clause (ii), the following clauses shall be substituted namely:-"(ii) for the assessment year oommenoing on the 1st day of april 1977 and the assessment year oommen-25 cing on the 1st day of april, 1978, at the rates specified in paragraph b of the schedule; and (iii) for the assessment year commencing on the 1st day of april 1979 at the rates specified in paragraph c of the schedule "; 30 (b) in the schedule for the proviso, the following shall be substituted namely:-45 per cent of the current incom e; (i) where the current income exceeds rs 15 - 000 but 35 does not exceed rs25000 rs1,125 plus 11 per oent of the amowlt by which the ourrent inoome exceeds rs25,000; (it, where the ourrent inoome exceeds r825, 000 but does not exceed r835,ooo (iii) where the ourrent income exceeds rs 35 ,000 but does rs 2225 pjus 125 per cent 5 of the amount by which the ourrent inoome exceeds rs35000i notex~d as 70, 000 (tv) where the ourrent income exceeds rs70, 000 rs6,600 pjus15 per cent 10 cf the amount by wblch the current income exceeds rs70,ooo: provlded that -(a) in a cue fallmg under paragraph a or paragraph b 15 where the current inccme exceeds rs15,ooo but does not exceed as 15620, the oompulsory deposit shall in no case exceed the amount by which the current income exceeds •• 15,000; (b) in a cue falling under plfn8nph c where tbe 20 current income exceeds rs15,ooo but does not exceed ri 15 , 710, the compullory deposit shall in no cue exceed the amount by which the current idocme exceeds al150oo; (e) where the amount of compullory deposit calculated 15 in accordadoe with the foregoing provl81ons 18 leu iaa ba100, it shall not be necessary for the taxpayer colloerned to make such deposit "  d,erauoll - " di, p"i'iioii" collec:uoii of tall o4el,1931 aoit is hereby declared that it is expedlent in the publlc interest that the provllllons of clau  s 34 35, 38 and 3'1 of this bul shall have lmmec:llate effect wider the provisional collection of taxes act 1931 11 of 11sl  (su hctlon 2) part i income-tall and suicharge on income-tall6 in the case of every lddlvidual or bindu undivided famlly or unrepstered firm or other asbociatlon of persons or body of indivlcuals, whether incorporated or not, or every artlflclal 10 juridical person referred to in sub-clause (iiif) of clause (31) of section 2 of the income-tax act, not being a case to which 8ub-paragraph n of this pnagraph or any other paragraph of this part appues, - rttl f 'liuiiie16 (1) where the total income nil; does not exceed as 8, 000 | 16    | per    | cent    | of      ||-------|--------|----------|---------|| which |        |          |         || the   | total  | income   | exceeds || rs   | 8,000; |          |         |(2) where the total income exceeds rs (5000 but does not exceedrs16,000 10 (3) where the total income exceeds rs 16,000 but does not exceed ra20,ooo rs1,050 plus 18 per cent of the amount by which the total income exceeds rb 16,000; 25 (4) where the total income exceeds rs 20,000 but does not exceed ra 25, 000 | rs    | 1,950    ||--------|----------|| plus   |          || 26     | per      || the    | amount   || the    |          || total  |          || income | exceeds  |(5) where the total income exceeds ra 25,000 but does not exceed re 30, 000 | rs    | 3,200    ||--------|----------|| plus   |          || 30     | per      || the    | amount   || income | exceeds  |30 (6) where the total income exceeds as 30,000 but does not exceed re 50,000 | rs    | 4,700    ||--------|----------|| plus   |          || 40     | per      || the    | amount   || the    |          || total  |          || income | exceeds  |(7) nen the total lncome exceeds rs 60,000 but does not exceed rs 70000 | rs    | 12700              ||--------|---------------------|| plus   |                     || 50     | per                 || the    | amount by which tbe || lncome | exceeds             || a    |                     || $g,    |                     || 000,   |                     |(8) where tbe total income ra 22,700 phu 55 per cent of exceeds rs 70,000 but does not the amount by which the total exceed rs i, 00, 000 income exceeds bs 70,000; | bs      | 39,200      ||----------|-------------|| plus     |             || 60       | per         || (9)      | where       || exceeds  | rsl,oo,ooo || the      | amount      || the      |             || total    | 5           || income   | exceeds     || i,       |             || 00, 000: |             |provided tbat for the purposes of this sub-paragraph,-(i) no income-tax sball be payable on a total income not exceeding ra 10,000; (ii) where the total income exceeds rs 10,000 but does 10 not exceed rs 10, 540, the income-tax payable thereon shall not exceed seventy per cent of the amount by which the total income exceeds bs10, 000  surcharge on incolle-iuthe amount of income-tax computed in accordance with the 15 preceding provisions of this sub-paragraph shall be increased by a surcharge for purposes of the union calculated at the, rate of fifteen per cent of such income-tax  s"b-p cuqrraph iiin the case of every hindu undivided famlly which at any time 20 during the previous year bas at least one member whose total income of the previous year relevant to the assessment year commencing on the 1st day of april, 1978 exceeds bs 10,000,- rates ofincome-t1unil; 25 (1) where the total income doe8 not exceed ra 8, 000 (2) where the total income exceeds re 8,000 but does not exceed rs15, 000 | 18    | per    | cent    | of      ||-------|--------|----------|---------|| which |        |          |         || the   | total  | income   | exceeds || re   |        |          |         || 8,    |        |          |         || 000;  |        |          |         |(3) where the total income exceeds bs 15,000 but does not exceed rs20,000 | rs    | 1,260    ||--------|----------|| phlsi  |          || 25     |          || per    |          || oent  | of       || the    | amount   || income | exceeds  |(4) where the total income exceeds re 20,000 but does not exceed re 25,000 rs 2, 510 phu 30 per cent of the amount by which the total income exceeds rs 20,000; 35 (5) where the total income exceeds rs 25,000 but does not exceed rs 30,000 rs 4,010 plus 40 per cent of the amount by which the total income exceeds rs 25, 000; 5 (6) where the total income exceeds rs 30,000 but does not exceed rs 50,000 | rs        | 6,      | 010             ||------------|---------|-----------------|| plus       |         |                 || 50         | per     | cent           || the amount | by      | which the total || income     | exceeds | rs             || (7)        | where   | the             || exceeds    | rs     | 50,000          || but        |         |                 || does       | not     |                 || exceed     |         |                 || ra        |         |                 || 70,000     |         |                 || rs        | 16,010  |                 || plus       |         |                 || 55         | per     | cent           || the        | amount  | by              || income     | exceeds | rs             || 10         |         |                 || (8)        |         |                 || where      | the     | total           || rs        | 27,010  |                 || plus       |         |                 || 60         | per     | cent           || the amount | by      | which the       || income     | exceeds | rs             || exceeds    | rs     | 7(;,000         |provided that for the purposes of this sub-paragraph,-(i) no income-tax shall be payable on a total income not 15 exceeding rs 10,000; (ii) where the total in<lome exceeds rs 10,000 but does not exceed rs 10,690, the income-tax payable thereon shall not exceed seventy per cent of the amount by which the total income exceeds rslo,ooo 20 the amount of income-tax c,omputed in accordance with the preceding provisions of thi sub-paragraph shall be increased by a surcharge for purposes of the union calculated at the rate of fifteen per cent of such income-tax  paragraph b25 in the case of every co-operative society,-|                         |         | (1)                | where the total    | income    ||-------------------------|---------|--------------------|--------------------|-----------|| does                    | not     | exceed             | rs                | 10,000    || 15                      | per     | cent of the total |                    |           || income;                 |         |                    |                    |           || 30                      | (2)     | where              | the total          | income    || rs                     | 1,500   |                    |                    |           || plus                    |         |                    |                    |           || 25                      |         |                    |                    |           || per                     |         |                    |                    |           || cent of                |         |                    |                    |           || the amount by which the |         |                    |                    |           || total                   |         |                    |                    |           || income                  | exceeds | rs                | 10,000;            |           |exceeds rs 10,000 but does not exceed rs 20,000 | (3)                           | where     | the      ||-------------------------------|-----------|----------|| exceeds                       | rs20,ooo |          || rs                           |           |          || 4,                            |           |          || 000                           |           |          || plus                          |           |          || 40                            |           |          || per                           |           |          || cent of                      |           |          || the amount by which the total |           |          || income                        |           |          || exceeds                       | rs       | 20, 000 |35  surd_be on income futhe amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increased by a surcharge for purposes of the union calculated at the rate of fifteen per cent of such idcome-tax 5  suh' ,r,"",,1i1in the case of every registered firm, not befng a case to which sub-paragraph n of this paragraph applies,-| rates                  | of           ||------------------------|--------------|| mcome-fu               |              || 10                     |              || (1)                    |              || where                  |              || the total1dcome        |              || nil;                   |              || does                   |              || not                    | exceed       || 10,000                 |              ||  (2)                  |              || where the total income |              || 5                      |              || per                    | cent of the || exceeds                | rs          || but                    |              || does                   |              || not                    |              || which the total ldcome |              || exceed                 |              || as                    |              || 25,000                 |              || ~eeda                  |              || rs                    |              || 10,000;                |              || 15                     |              || (3)                    |              || where the total income | rs          || 750                    |              || plus                   |              || 7                      |              || per                    | cent of the || exceeds                |              || rs                    | 25,000       || but does not           |              || amount by which        |              || the                    | total        || exceed                 |              || rs                    | 50,000       || 1dcome                 | exceeds      || 25,                    |              || 000;                   |              || 20                     |              || (4)                    |              || wbere the total ldcome | rs          || 500                    |              || plus                   |              || 15                     |              || per                    | o8nt        || exc4!leds              |              || ra                    |              || 50,000                 |              || but                    |              || does                   |              || not                    | the amount   || by                     |              || which the total        |              || exceed                 | re          || 1,00,000               |              || lncome                 | exceeds      || ra                    |              || 60,000;                |              || (6)                    |              || where the              |              || total                  |              || idcome                 |              || ra                    |              || 10,000                 |              || plus                   |              || 24                     |              || per                    | cent        || exceeds                |              || rsl,oo,ooo            |              || of the amount          |              || by                     |              || which the total        |              || income                 |              || exceeds                | rs          || 1,00,000              |              || surcharge              |              || 011                    |              || income-t41             |              || 26                     |              |the amoun~ of inoome-tax computed in accordance with the preceding provisions of this sub-paragraph shall be idcreued by a surcharge for purposes of the union calculated at the rate of fifteen per cent of such income-tax sub-p arqraph ii 30 in the cue of every rellatered firm whom total ldoome !dolude ldoome derlved from a profe8lllon carrled on by it and the income 80 "included is not less than flfty-one per cent of such total income, -"  rates of i  colfte-wrnfl; (1) where the total tncome does not exceed re 10,000 5 4 per cent of the amount by which the total income exceeds rsi0,000; (2) where the total income exceeds ra 10,000 but does not exceed ra 26,000 10 rs 800 p'"s 7 per cent of the amount by which the total income exceeds rs 26, 000; (3) where the total ldcome exceed rs 25,000 but does not exceed ra 50,000 r •• 2, 350 ph 13 per cent of the amount by which the total income exceeds rs 50,000; (4) where the total 1dcome exceeds ra 50,000 but does not exceedrsl,oo,ooo 15 (5) where the total income rs 8850 plus 22 per cent of the amount by which the total income exceeds rs1, 00, 000 exceeds ra 1,00, 000  surdtarqt on income-taxthe amount of income-tax computed in accordance with the 20 preceding provisions of this sub-paragraph shall be increased by a iurcbarge for purposes of the union calculated at the rate of fifteen per cent of such income-tax explancltidn - - for the purposes of this paragraph, "registered firm" includes an unregistered firm assessed 8s a regis-25 tered firm under clause (b) of section 183 of the income-tax act  p crclflraph din the case of every local autborlty,- rate of incolleo£aon the whole of the total income 50 per cent  surcharqe on income-ta30 the amount of income-tax computed at the rate hereinbefore apeolfled shall be increased by a surcharge for purposes of the unioil calculated at the rate of fifteen per cent of such idcometax  paragraph sin the case of a company, - rilles of income~w l in the case of a domestic company,-| (1)           | where        | the              | company    | is    ||---------------|--------------|------------------|------------|-------|| 5             |              |                  |            |       || a company     | in           | which the public |            |       || are           |              |                  |            |       || substantially | interested,- |                  |            |       || (i)           | in           |                  |            |       || a             | case         | where            | the        |       || 45            |              |                  |            |       || per           | cent        | of               | the        | total || total         | incom e      |                  |            |       || does          |              |                  |            |       || not           | exceed       |                  |            |       || rs           | 1,00,000     | 10               |            |       || (ii)          |              |                  |            |       || in            | a            | case             | where      | the   || 55            |              |                  |            |       || per           | cent        | of               | the        | total || total         | income       | exceeds          |            |       || rs1,00,ooo   |              |                  |            |       || 15            |              |                  |            |       || (2)           |              |                  |            |       || where         |              |                  |            |       || the           |              |                  |            |       || company       | is           |                  |            |       || not           | a company    | in               | which      | tbe   || public       | are          | substantially    |            |       || interested,   | -            |                  |            |       || (i)           |              |                  |            |       || in the        | case         | of               |            |       || an            |              |                  |            |       || industrial    | company,_    |                  |            |       || 20            |              |                  |            |       || 55            |              |                  |            |       || per           | cent        | of               | 'the       | total || (a)           |              |                  |            |       || where         | the          | total            |            |       || income        |              |                  |            |       || does          |              |                  |            |       || not           | exceed       |                  |            |       || rs2,00,ooo   |              |                  |            |       || 60            |              |                  |            |       || per           |              |                  |            |       || cent         | of           | the              |            |       || total         |              |                  |            |       || income;       |              |                  |            |       || 25            |              |                  |            |       || (b)           |              |                  |            |       || wbere the     |              |                  |            |       || total         |              |                  |            |       || income        | exceeds      |                  |            |       || rs2,oo,ooo   |              |                  |            |       || (ii)          |              |                  |            |       || in            | any          | other            | case       |       || 65            |              |                  |            |       || per           |              |                  |            |       || cent         | of the       | total            | income:    |       |provided tbat-(i)  the income-tax payable by a domestic company, being a company in which the public are substantially interested, the total income of which exceeds rs 1,00,000, shall not 30 exceed the aggregate of-(a) the income-tax which would have been payable by the company if its totallnc'jme bad been rsl,oo,ooo (the income of rs 1,00,000 for this purpose being computed as if suc!l income included income from various 35 sources in the same proportion as the total income of the company); and (b) eighty per cent of the amount by which its total income exceeds rs 1,00,000; 5 (ii) the income-tax payable by a domestic company, not being a company in which the public are substantially interested, which is an industrial company and the total income of which exceeds rs 2,00,000, shall not exceed the aggregate of-10 (a) the income-tax which would have beenpayable by the company if its total income bad been rs 2, 00, 000 (the income of rs 2,00,000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of 15 the company); and (b) eighty per cent of the amount by which its total income exceeds rs 2, 00, 000 u in the case of a company other than a domestic company,-(i) on so much of the total 20 income as consists of-(a) royalties received from an indian concern in pursuance of an agreement made by it with the indian 25 concern after the 31st day of march, 1961 but before the 1st day of april, 1976, or 30 35 (b) fees for rendering technical services received from an indian concern in pursuance of an agreement made by it with the indian concern after the 29th day of february, 1964 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 40 ('i) on the balance, if any, of the total income '70 per cent the amount of income-tax computed in accordance with the preceding provisions of this paragraph shall be increased by a 8urcbarp calculated at the rate of five per cent of such income-tax  partd rgtes for deduction of teu atsourc:e in certldn ,altsiii every case in which under the provisions of secuons 193 10 184 194a 194b 194bb und and 195 of the inoome-taz act ta is to be deducted at the rates ill force deductioll 8hall be made from the income subject to deduction at the following ratea:-ldoome-tax rate of rate of 15 income-tax surcharge 1 in the case of a persoll other than a company-(a) where the perboil is resident ill india-10 (i) od income by way of 10 per cent nil; interest other than ''intere8t 011 8ecurlties" (ii) od income by way of 30 per cent 41 per cent; widdldgs from lotteries and 25 orosaword puzzle8 (iii) on inoome by way c\f so per cent 46 per oem; wldlllac from horae races ('") od moome by way of 10 per oedt nl; tuurance oommlaioil so (ii) oil 8111 other idcome 20 per oedi s per oent ; (ao]ndlnl latere payable oil a tax-free aeourlty) ldcome-tax rate of ldoome-tax rate of surcharge (b) where the person fa not 6 resident in india-(i) on the whole income (excluding interest pqable on a tax-free securtty) income-tax at 30 per cent 8dd surcharge at 45 per cent of the amount of the income or 10 15 income-tax and surcharge on income-tax in respect of the income at the rates prescribed in sub-paragraph i of paragraph aof part m of this schedule if such lncom e had been the total income, whichever is higher; 15 per cent 2 26 per cent (ii) on income by way of interest payable on a tax-20 free securtty 2 m the case of a company-(4) ·where the company fa a domestic company-20 per cent , 1 per cent; (i) on income by way of 25 interest other than "interest on securities" 22 per cent 1 per cent; (u) on any other income (excluding interest payable on a tax-free security) 30 (b) where the company fa not a domestic company-25 per 0_ nil; (i) on income by way of dividends payable by any domestic company income-tax rate of rate of income-tax surcharge (ii) on income by way of 40 per cent nil; royalty payable by an indian 5 concern in pursuance of an agreement made by it with the indian concern after the 31st day of march, 1976, where such royalty is in 10 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 15 in the proviso to sub-section (la)of section u5a of the income-tax act, to the indian concern (iii) on income by way of 20 royalty lnot being royalty of the nature referred to in sub-ltem (b) (ii)] payable by 811 indian concern in pursuance of an agreement 25 made by it with the indian concern and which has been approved by the central government, -(a) where the agreement 50 per cem 25 per cent; 30 is made after the 318t day of march, 1961 but before the 1st day of aprll, 1976 (8) where the agreement is made &£~r the 31st day 35 of march, 1976-(1) on 80 much of the 20 per cent, nil; amount of such income as consists of lump sum consideratjod for the traufer 40 income-tax rate of rate of lncome-tax surcharge outside india of, or the 5 imparting of information outside india in respect of, any data, documentation, drawing or specification relating to any 10 patent, invention, model, design, secret formula or process, or trade mark or similar property (2) on the balance, if 40 per cent nil; 15 any of such income (iv) on income by way of fees for technical services payable by an indian concern in pursuance of an agreement 20 made by it with the indian concern and which has been approved by the central government-(a) where the agreement 50 per cent 25 per cent; 25 is made after the 29th day of february 1964 but before the 1st day of april, 1976 (b) where the agreement 40 per cent nil; 30 is made after the 31st day of maroh 1976 (v) on incom e by way of 44 per cent 22 per cent i interest payable on a taxfree security 35 (vi) on any other incom e 70 per cent 35 per cent  part mraws for cca1cldcltlns or chargins inc:oe-tgj in certain cases, deducung incollle-tai frolfl income chargeable iuider the head "salaries" or illy payllent referred to in sub-section (9) of section 80e and computing "advance tar-, 5 iii cases in which ldcome-tax bas to be calculated udder the first proviso to sub-sectton (5) of section 132 of the income-tax act or charged under sub-section (4) of secuon 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 15 of the said act or deducted under section 192 of the said act from 10 iucome chargeable udder the head ''salaries'' or deducted udder subsection (9) of section 80e of the said act from any payment referred to in the said su,b-sectlon (9) or in which the "advance tax" payable udder chapter xvn-c of the said act has to be computed, at the rate or rates in force suoh income-tax or as the case may be "advance tax" (not beldg "advance tax" in respect of any income chargeable to tax udder chapter xu or section 164 of the income-tax act at the rates as specified in that chapter or section), shall be so calculated charged deducted or computed at the following rate or rates:-20  parqrqh a sub-p arqraph iiii the case of every individual or hindu undivided fam fiy or unregistered firm or other association of peraons or body of individuals whether incorporated or not or every artificial 25 jur1d1cal peraon referred to in sub-clause (liii) of clause (31) of seot~n 2 of the income-tax act not being a cue to whjch sub-pargraph u of th1s paragraph or any other parll1'aph of this part appues-| rates                  | of incolle-tar    | 30           ||------------------------|-------------------|--------------|| (1)                    |                   |              || where                  |                   |              || the                    |                   |              || total income           |                   |              || ntl;                   |                   |              || does                   |                   |              || not                    |                   |              || exceed                 | rs               |              || 8                     |                   |              || 000                    |                   |              || (2)                    |                   |              || where the total income |                   |              || uceeds                 |                   |              || ra 8                 | 000               | but doea not || exceed                 | rs               |              || 16,000                 |                   |              || 15                     | per               | cent        || the                    |                   |              || amount                 |                   |              || by                     |                   |              || which                  | the               | total income || exceeds                | re               |              || 8000;                 |                   |              || 35                     |                   |              |(3) where the total income exceeds rs 15, 000 but does dot exceed rs 20, 000 rs 1,050 plus 18 per cent of the amount by which the total income exceeds rs15, 000; (4) where the total income rs i, 950 phis !per cedt of the amount by w~h the total inoome exceeds re 20, 000: 5 exceeds rs 20,000 but does dot exceed rs 25, 000 (5) where the total income exceeds rs 25, 000 but does not exceed ri30, 000 rs 3,200 phu 30 per cent of the amount by which the total income exceeds rs 25,000; 10 rs 4,700 pins 40 per cent of the amount by which the totallnoome exceeds rs30, 000; (6) where the totalldoome exceeds rs 30,000 but does not aoeed rs 50,000 15 (7) where the total income exceeds ri 50,000 but does dot aceed rs 70, 000 rs 12,700 pins 50 per cej¢ of the amount by which the total inoome exceeds ri 50, 000; rs 22,700 pins 55 per cent of the amount by which the total income exceeds rs 70, 000; (8) where the total income exceeds rs 70,000 but does dot aceed rs 1,00,000  20 (9) where the total moome rs 39,200 pllts 80 per cellt of the amount by which the total inoome exceeds rs 1,00,000: exceeds rs 1,00,000 provided that for the purposes of tb18 ~ parcraph, -(i) do idoome-tax ahall be payable on a total income dot 25 exceedjdg rs 10, 000; (ii) wbere the totalldcome exceeds rb 10,000 but doee dot exceed rb 10,540, the income-tax payable thereon shall dot exceed seventy per oedt of the amount by which the total idoome exoeeds rb 10,000  sothe amount of ldoame-tax oomprteci in acoordadce with the precedtdc provtalou of this sab-parap-aph sball be tnoreued by a surchage for purposes of the udioil calculated at the rate ~ fifteen per cent of such idcome-tu  sub-paragraph iiin the case of every hindu undivided famuy which at any time during the prev:lous year has at least one member whose total income of the prev:lous year relevant to the &ssessment year commencing on the 1st day of apru, 1979 exceeds rs 10,000, -5 ratts of incomt~t4i (1) where the total income nil; does not exceed rs 8,000 (2) where the total income 18 per cent of the amount exceeds ra 8,000 but does not by which the total income 10 exceed rs 15, 000 exceeds rs 8,000: (3) where the total income rs 1,260 plus 25 per cent exceeds rs 15, 000 but does i10t of the amount by which the exoeed rs 20,000 total income exceeds rs15, 000: (4) where the total income rs 2,510 plus 30 per cent of 15 exceeds rs 20,000 but does not the amount by which the total exoeed rs 25,000 income exceeds rs20, 000: (5) where the total income rs 4,010 plus 40 per cent exceeds rs 25,000 but does of the amount by which the dot aceed rs 30,000 total income exceeds 20 rs 25,000; (6) where the total income rs 6,010 plus 50 per cent exceeds rs 30,000 but does not of the amount by which the exoeed rs 50,000 total income exoeeds rs 30,000: 25 (1) where the total income rs 16,010 plus 55 per cent exceeds re 50,000 but does of the amount by which the total dot exceed rs 70,000 income exceeds rs 50,000; (8) where the total income rs 27,010 plus 60 per cent exceeds re 70,000 of the amount by which the 30 total income exceeds rs 70,000: provided that for the purposes of this sub-paragraph,-(i) do income-tax shall be payable (ii a total income not exceedidg rs 10, 000; (ti) where the total income exoeeds ra 10 000 but does not exceed rs 10,690, the income-tax payable thereon shall 5 not exceed seventy per cent of the amount by which the total income exceeds rs 10, 000  surcharge on incotne-ta%the amount of income-tax oomputed in accordance with the precec:udg provisions of this sub-paragraph shall be 1acreued 10 by a surcharge for purposes of the union calculated at the rate of fifteen per cent of ialch lncome-tax  pgi'qraph bin the cue of every co-operative l!ioclety-rite of incollle-f4lr 15 (1) where the total income does not exceed r8 10000 15 per cent of the total idoome; (2) where the total income exceeds rs 10, 000 but does dot exceed rs 20 000 20 rs 1,500 p!u's 25 per oem of the amoudt by which the totallncome eatoeed8 rs 10,000; (3) where the total mcome exceeds r8 20,000 r8 4,000 pills 40 per cent of the amoudt by which the total income exceeds rs 20000 25  surcharse on incollle-tathe amoudt of tncome-tax computed in acoordance with the precedidg provisions of tb18 parqraph aball be tncreued by a surcharge for purposes of the union calculated at the rate of fifteen per cent of such idcome-tu  sub-p","h iiii the cue of every ~ firm, dot beldl a cue to whtch sub-parqraph u of th1a parqnpb appllea,-5 rates of inco,"w (1) where the total income nil; doea dot gceed ra 10,000 10 (2) where the total income 6 per cedt of the amount by exceeda ra 10,000 but doea dot whjoh the total idoome aceeda _ceed ra 25,000 ra 10,000; (3) where the total idoome ra 750 plus 7 per ceat of aceeda rs 25, 000 but does dot the amount by which the total exceed ra 50 000 mcome exceeda r825,ooo: 15 (4) where the total mcome ra 2500 plus 16 per cent aceeda ra 50,ooobut does dot of the amoudt by which the exceed rs 100,000 total iilcome exceeds ra 60,000: 20 (5) where the total idoome ra 10,000 plus 24 per ceat uoeeda ra 1 00,000 of the amount of whtch the total idoome exceeds ra 100,000  surehar, on incoli'''igl'the amount of 1dc0me-tax complteci in iiccorcladoe with the prececudg provlalona of th1a sub-par8p'aph shall be jdcreued by a 8ul'charge for purposes of the umon calculated at the f&te 25 of fifteen per cent of such idoome-ta  ' in the cue of every reglaerted firm whose tot81ldoome 1dc1udea lucome derived from a profeasion carried on by it add the income 80 mcluded 18 dot less thad flfty-one per cent of suoh total income,-nil; (1) where the total 1ncome does not exoeed rs 10,000 5  per oent of the amoudt by wmch the totalldoome exoeeda ra 10,000; (2) where the total iaoome exceeda rs 10, 000 but does dot aoeed rs 25,000 rs 800 ,ius 7 per cent of the amoudt by whjoh the total income exceeds rs 26,000; (3) where the total income 10 '8ltoeeda rb 25,000 but does dot soeed rs 50,000 (4) where the total income exceeds rs 60,000 but does dot aoeeci ri 1,00,000 15 ra 2,360 plus 13 per cent of the amouat by which the totalldoome exceeds rs 60,000: (5) where the total income exoeeda rs 1,00,000 rs 8, 860 pjus 22 per cent of the amount by which the total income exceeds rs 1,00,000  surck4fse on incom,tur20 the amount of income-tax computed in accordance with the precechag prov18jou of this sub-paragraph shall be increased by a suroharp for p,trp088s of the union calculated at the rate of flfteell per oent, of such moome-tu 26 eip' •• "n  - for the purposes of this paragraph, "reclaered firm" idclude& an unrec18tered firm assessed as a recl8tered firm udderolause (b} of section 183 of the income-tax act  p"qraph did the cue of every local authority,-rate of inco  e~ 30 50 per oedt oil the whole of the total inoome surc;hgfse on tncoill~w the amount of inoome-tax computed at the rate herembefore apeo1fied shall be increueci by a surohup for purpoa8 of the unlall oaloulated at tile rate of fifteen per cent ofuch ldoometak in the case of a company t - rates of income-tari in the case of a domestic company,-5 (1) where the company ia a company in which the public are substantially interested, -45 per cent of the totalincomei 10 (i) in a case where the total income does not exceed rs 1,00,000 (iil in a case where the total 55 per centof the total income; income ex~eds rs i, do, 000 (2) where the company is not a company in which the public are substantially interested, -15 (i) in the case of an industrial company-(ca) wbere the total 55 per cent of the total income; income does not exceed rs 2,00,000 20 (b) wbere the total 80 per cent of the total income; income exceeds be 2,00,000 (ii) in any other case 65 per cent of the total income: provided that -(i) the income-tax payable by a domestic company t being a 25 company in which the public are substantially interested, the total income of which exceeda rs1, 00, ooo,shall not exceed the aggregate of -(a) the income-tax which would have been payable by the company if its total income had been rsi, do, 000 (the income 30 of rs i, 00, 000 for this purpose being computed as if such income included income from various sources in the same proportion as the total income of the company) i and (b) eighty per cent of the amount by which its total income exceeds rs 1,00,000; (u) the income-tax payable by a domestic compal\y, not being a company in which the public are substantially interested, which 5 is an industrial company and the total income of which exceeds re 2,00,000, shall not exceed the aggregate of-(a) the income-tax which would have been payable by the company if its total income had been rs 2, 00,000 (the income of rs 2, 00, 000 for this purpose being computed as if such 10 income included income from various sources in the same proportion as the total income of the company); and (b) eighty per cent of the amount by which its totalinoome exceeds rs 2, 00,000 do in the case of a company other than a domestic company,-15 (i) cd so much of the total income as consists of -20 (a) royalties received from an indian cc:mcern in pursuance of an agreement made by it with the indian concern after the 31st da,y of march 1961 but before the 1st day of april 1976, or "\''1, ':  ' 26 - (b) fees for rendering technical services received from an indian concern in pursuance of an agreement made by it with the indian concern after the 29th dq of february 1964 but before the 1st day of april, 1976, 30 | and              | where    | such          ||------------------|----------|---------------|| 50               |          |               || per              |          |               || cent ;          |          |               || in               |          |               || either           | case,    | been approved || by               |          |               || the              | central  | government    || (ii)             |          |               || on the balance,  |          |               || if               |          |               || any,             |          |               || 70               |          |               || per              |          |               || cent            |          |               || of               |          |               || the total income |          |               |35 the amount of income-tax: computed in accordance with the preceding provisions of this paragraph shall be increased by a surcharge calculated at the rate of five per cent of such income-tax 5  part iv ~e section 2(7)(e), rules for computation of net agrlc1jltural incomerule 1 -agricultural income of the nature referred to in sub-clause (a) of clause (1) of sectlon 2 of the income-tax act 10 shall be computed as if it were income chargeable to income-tax under that act under the head ''income from other sources" and the provisions of sections 57 to 59 of that act shall so far as may be apply accordingly: provided that sub-section (2) of section 58 shall apply subject 15 to the modification that the reference to section 40a therein shall be construed as not including a reference to sub-sectlons (3) and (4) of section 40a rille 2 -agricultural income of the nature referred to in 8ub-clause (b) or sub-clause (c) of clause (1) of section 2 of the 20 income-tax act [other than income derived from any buudlng 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 "profits 25 and gains of business or profession" and the provisions of sections 30,31,32,34,36,37,38,40, 40a (9tber than subsections (3) and (4) thereo~, 41 43 and 43a of the income-tax act shall, so far as may be apply accordingly ride 3 -agricultural income of the nature referr'jd to in 30 sub-clause (c) of clause (1) r:4 section 2 of the income-tax act being income derived from any buudlng 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 subclause (c) shall be computed as if it were income chargeable 35 to income-tax under that act udder the bead "income from house property" and the provisions of sections 23 to 27 of that act shall so far as may be apply accordtnglyz , provided that sub-section (2) of the said section 23 shall apply subject to the modifications that the references to "total income" therein shall be construed as references to net agricultural income and that the words, figures and letter "and before mak-5 log any deduction under chapter via" shall be omitted rule 4 - notwithstanding anything contained in any other provisions of these rules, in a case where the assessee derives income from sale of tea grown and manufactured by him in india, such income shall be computed in accordance with rule 10 8 of the income-tax rules, 1962, and slxty per cent of such income shall be regarded as the agricultural income of the assessee rule 5, - where the assessee is a partner of a -registered firm or an unregistered firm assessed as a registered firm 15 under clause (b) of section 183 of the income-tax act, which in the previous year has any agricultural income, or is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of the said section 183 and which in the previous year has either no income charge-20 able to tax under the income-tax act or has total income not exceeding the maximum amount not chargeable to tax in the case of an unregistered firm but has any agricultural income, then, the agricultural income or loss of the firm shall be computed in accordance ~th these rules and his share in the 25 agricultural1ncome or loss of the firm shall be computed in the manner laid down in sub-section (1) , sub-section (2) and sub-section (3) of section 67 of the income-tax act and the s hare so computed shall be regarded as the agricultural income or loss of the assessee -  30 rule 6 -where the assessee is a member of an association of persons or a body of individuals (other than a hindu undivided famuy, a company or a firm) which in the previous year has either no income chargeable to tax under the income-tax act or has total income not exceeding the maximum amount not charge-35 able to tax in the cue of an association of persons or a body of individuals (other than a hindu undivided famuy, a company or a firm) but has any agricultural income, then, the agrlculturallncome or loss of the association or body shall be computed in accordance with these rules and the share of the 40 assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee rut e 7 • -where the result of the cojdputation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessoe, if any, for that previous year from any other source of agricultural income: provided that where the assessee is a partner of an unregistered firm which has not been assessed as a registered firm under clause (b) of section 183 of the income-tax act or is a member of an as soc tatton of persons or a body of 1nd1v1duals and the share of the assessee in the agricultural income of the firm, association or body, as the case may be, is a loss, such loss shall not be sat off against any income of the assessee from any other source of a,grlculturalincome rut e b -any sum payable by the assessee on account of any tax levied by the state government on the agrtcultural1ncome shall be deducted in computing the agricultural income rule 9 -(1) where the assessee has, in the previous year relevant to the assessment year commedclng on the 1st day of april, 1978, any agrtculturalldcome and the net result of the computation of the agricultural income of the assessee for any one or more qf the previous years relevant to the assessment years commencing on the 1st day of april, 1974 or the 1st day of april, 1975 or the 1st day of april, 1976 or the 1st day of april, 1977, 1s a 1088, then, for the purposes of sub-section f 2) of section 2 of this act, -fi> the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april 1974 to the extent if any such loss has not been set off against the agricultural income for the previous year relt:vant to the assessment year commencing on the 1st day of april 1975 or the 1st day of april 1976 or the 1st day of april 1977 (ii) the loss so computed for the previous year relevant to the assessment year commenoing on the 1st day of april 1975 to the extent if any such loss bas not been set off against the agricultural income for the previous year relevant to the assessment year comld8doidg ()il the 1st day of april, 1976 or the 1st day of april, 1977, (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april 1976, to the extent, if any, such loss bas not been, set off against the agricultural income for the previous year relevant to the 5 assessment year commencing on the 1st day of april 1977, and (tv) the loss so oomputed for the previous year relevant to the assessment year commencing on the 1st day of april, 1977, 10 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, 1978 (2) where the assessee has in the previous year relevant to the assessment year commencing on the 1st day of april, 1979 15 or, if by virtue of any provisicl1 f1 the income-tax act income-tax is to be oharged in respect of the income of a period other than that previous year in such other period any agricultural income and the net result of the computation of the agricultural income of ti1e assessee for anyone or more of the previous years rele-20 vant to the assessment years commencing on the 1st day of april, 1974 or the 1st day of april 1975 or the 1st day of april 1976 or the 1st day of april, 1977 or the 1st day of april, 1978, is a loss then, for the purposes of sub-section (6) of seetlon 2 of this aot,-25 (i) the loss so computed for the previous year relevant to the assessment year commencing 00 the 1st dlt3 of april, 1974, 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, 30 1975 or the 1st day of april, 1976 or the 1st day of april, 1977 or the 1st day of april, 1978, (it) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of april 1975, to the extent, if any such loss has not been set off 35 against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1976 or the 1st day of april, 1977 or the 1st day of april, 1978 (iii) the loss so oomputed for the previoub year relevant to the assessment year commencing on the 1st day of april, 1976, to the extent, if any, such los8 bas not been bet off against the agricultural income for the previous year relevant to the assessment year commencing on the lat day of april, 5 1977 or the 1st day of april, 1978, (iv) the loss so computed for the previous year relevant to the assessment year commencing on the lat day of april, 1977, to the extent, if any, such loss bas not been set off apinst the agricultural income for the previous year relevant to the 10 assessment year commenoing on the lat day of april, 1978, and (v) the loss so computed for the previous year relevant to the assessment year commencing on the lat day of april, 1978, 15 shall be set off against the agricultural income of the assessee for the previous year relevant to the a&8ebbment year commencing on the lat day of april, 1979 or the period aforesaid (3) where a change has occurred in the constitution of a firm, nothing in sub-rule (1) or sub-rule (1) shall entitle the firm to 20 set off so much of the 108s proportionate to the share of a retired or deoeased partner computed in the manner laid down in sub-section(l) , sub-section (2) and sub-section (3) of seotion 67 of the income-tax act as exceeds his share of profits, tf any, d the previous year in the firm, or entitle any partner to the 25 benefit of any portion of the said loss (computed in"the manner aforesaid) which is not apportionable to him (4) where any person dert vfng any agricultural income from any souroe has been succeeded in such capacity by another persoll, otherwise than by inheritance, nothing in sub-rule 30 (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as 1i1e oase may be, sub-rule (2) 35 20 of 19'14" 25 of 1975 66 of 19'76 (5) notwithstanding anything oontained in this rule, no 1088 which haa not been determined by the income-tax officer under the provisions m these rules, or the rules oontained in part iv of tbe first schedule to the finance act, 19'14, or of the first schedule to the finance act, 1975, or of the first schedule to the finance act, 1976, or of the first sohedule to the finanoe (no2) act, 1977, shall be set off under sub-rule (1) or, as the case may be, sub-rule (2) 40 29 of 1977 ride 10 -where the net·result of the computation made in accordance with these rules is a loss, the loss 80 computed shall be ignored and the net agricultural income shall be deemed to be nil 5 rule 11 -the provisions of the income-tax act relating to procedure for assessment (including the provisions of section 288a relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to 10 the assessment of the total income rule 12 -for the purposes of computing the net agricultural income of the assessee, the income-tax officer shall have the same powers as he has under the income-tax act for the purposes of assessment of the total income  statement of objects and reasonsthe object of the bulls to give effect to the flnadclal proposals of the central government for the financial year 1978-79 the notes em clauses explaln the varlous provtslons contalned in the blll new delhi; hm patel the 28th february 1978  president's recommendati~ under articles 117 and 274 of the constitutrctl of lndia(copy of letter no f4(1)-b(d)/78 dated the 28th february, 1978 from shrl h m patel minister of finance to the secretary, ldt sabha) the president having been lnformed of the subject matter of the proposed bill, recommends under article 117(1) read with article 274(1) of the constitution of india, the introduction of the finance bill, 1978 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, 1978 clause 2, read with the schewle to the bill seeks to prescribe the rates at which income-tax (including surcharge thereon) is to be levled on income chargeable to tax for the assessment year 1978-79 further, it lays down the rates at which tax is to be dewcted at source wring the financial year 1978-79 from incomes subject to 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 financial year 1978-79 rates of inoome-tax for the assessment year 1978-79 - part i d the schedule to the -bill specifies the rates of income-tax (including surcharge) on incomes liable to tax for the assessment year 1978-79 these rates are the same as those specified in part w of the first schedule to the finance (no2) act 1977 for the purpose of deduction of tax at source from ''salaries'' and for computation of "advance tax" pilyable during the financial year 1977-78 rates for deduction of tax at source during the financial year 1978-79 from incomes other than "salaries" - part n of the schedule to the bill specifies the rates at which income-tax (including surcharge where applicable) is to be dewcted at source during the financial year 1978-79 from incomes other than ''salaries'' and retirement annuities under section 80e(9) of the income-tax act the rates specified in this part for deduction of tax at source are the same as those specified in part n of the first schedule to the finance (no2) act' 1977 for the purposes of deduction of tax at source during the financial year 1977-78 except for the modification tbat whereas hitherto tax was not deductible at source from winnings from horae races, the bill provides that in the case of income by way of winnings from horae races payable to a resident recipient (other than a company) during the financial year 1978-79 tax will be deductible at the rate of 34 5 per cent (made up of basic income-tax of 30 per cent and surcharge of 4 5 per cent ) rates for deduction of tax at source from "salaries" and retirement annuities com-putation of "advance tax" and charging of income-tax in special cases during the financial year 1978-79- part ill of the schedule to the bill specifies the rates at which income-tax (including surcharge) is to be deducted at source from "salaries" and retirement annuities referred to in section 80e(9) of the income-tax act and also the rates at which "advance tax" is to be paid and income-tax is to be calculated or charged in special cases for the financial year 1978-79 these rates a re the same;&s those specified in part i of the schedlle to the bill for the assessment of incomes liable to tax for the assessment year 1978-79 clause 3 seeks to insert an explanation in clause (1) of section 6 of the incometax act under sub-clauses (b) and (c) of the said clause, an individual is said to be resident in india in any previous year if (1) be maintains or causes to be maintained for him a dwelling place 1n india for at least 182 days and is in india for at least thirty days in that year; or (u) having been in india for at least 365 days during the four preceding years he is in india for at lea8t sixty days in that year the proposed amendment seeks to provide that where an indian citizen who is rendering service outside india is or has been in india on leave or vacation in the previous year, the period of ''thirty days" and "sixty days" referred to in the aforesaid subclauses shall, in the case of such indian citizen be extended to ninety days this relaxation will be available only where the service of the indian citizen outside india haa been sponsored by the central government or the terms and conditions of such service have been approved by the central government or the prescribed authority this amendment will take effect from 1st april, 1979 and will accordingly apply in relation to the assessment year 1979-80 and subsequent years clause 4 seeks to amend the second proviso to sub-section (1) of section 23 of the income-tax act under the proposed amendment, the existing concession in the case of let-out residential units constructed after lit april, 1970 (by way of reduction of the annual value of each such residential unit by an amount up to rs 1,200 fur a period of five years) is being enlarged in relation to let-out residential units constructed after 311t march, 1978 in respect of let-out residential units constrocted after 31st march, 1978, the annual value will be reduced, in each case, by an amount up to rs 2,400 for the year, for a period of five years from the date of completion of the building clause 5 seeks to amend clause (iv) of sub-section (1) of section 32 of the incometax act at present buildings newly erected by the assessee which are solely used for the purposes of the residence of such of his employees as have incomes chargeable under the head ''salaries'' of rs 10,000 or less or are solely or mainly used for the welfare of such employees as a hospital, creche, canteen,etc, are entitled to the grant of initial depreciation allowance at the rate of twenty per cent under the amendment, the rate of initial depreciation allowance is proposed to be increased to forty per cent this amendment will take effect from 1st april, 1979 and will accordingly apply in relation to the assessment year 1979-80 and subsequent years clause 6 seeks to amend section 35b of the income-tax act relatlngto the export markets development allowance under the existing provisions, domestic companies and other non-corporate resident taxpayers who incur elq)enditure under specified categories for development of export markets are entitled to a weighted deduction in the computation of their taxable profits in the case of widely-held companies such deduction is allowed at the rate of one and one half times, and in the case of other taxpayers at the rate of one and one third times, the qualifying expenditure the qualifying expenditure includes, inter alia, expenditure on advertisement or publicity outside india in respect of goods, services or faci11ues whinh the asselsee deals in or provides in the course of his business, expenditure on maintaining outside india a brancb, office or agency udder the proposed amendments, such weighted demction will be restricted to such expenditure incurred before 1st april, 1978 these amendments w1ll take effect from 1st april, 1978 clause 7 seeks to insert a new section 35cca in the income-tax act the new section provides for the deduotion, in the computation of the taxable profits of expenditure incurred by an assessee engapd in a business or profession by way of payment of any sum, to an assooiation or institution having the object of undertaking any programme of rural development, to be used for the purposes of carrying out suoh programme the deduotion will be admissible only in oases where the association or institution is one approved by the presoribed authority and the approval of the prescribed authority has been obtained by such association or institution in respect of buch programme the amendment will take effect from 1st june 1978 and will accordingly apply in relation to the assessment year 1979-80 and subsequent years clause 8 seeks to insert two new sub-sections (3a) and (3b) in section 37 of the income-tax act new sub-section (sa) seeks to provide that the aggre,ate expenditure incurred by an assessee on advertisement, publicity and sales promotion in india shall not be allowed to the extent mentioned below:-10 per cent of such expenditure (i) where such aggregate expenditure does not exceed 1/4 per cent of the turnover or the gross receipts of the business or profession 12i per cent of such expenditure (11) where such aggregate expenditure exceeds 1/4 per cent but does not exceed 1/2 per cent of the turnover or the gross receipts of the business or profession 15 per cent of such expenditure (iii) where such aggregate expenditure exceeds 1/2 per cent of the turnover or the gross receipts of the business or profession the turnover or the gross receipts of the business or profession for this purpose will not include any discount or rebate allo\y8d by the assesbee no disallowance under new sub-section (3a) will be made in o&ses where the aggregate expenditure on advertisement, etc, does not exceed rs 20000 new sub-aection (3b) seeks to provide that in the case of a new industrial undertaking, no disallowanoe under new subsection (3~ will be made for three assessment years commencing from the assessment year relevant to the previous year in which the industrial undertaking begins to manufacture or produce articles these amendments will take effect from 1st aprtl, 1979 and will aocordidlly apply in relation to the assessment year 1979-80 and subsequent years clause 9·seeks to amend clause (b) of tbe proviso to sub-section (2) of section 52 of the incomfl-tax act under the existing provisions, the provisions of sub-section (2) of section 52 relating to determination of consideration for transfer in cases of under-statement are inapplicable to cases where the full value of tbe consideration for the transfer of the capital asset is determined or approved by the central government or the reserve bank of india and the adequacy of the full value of the consideration 80 determined or approved is not questioned by the assessee under the proposed amendment,the provisions of section 52(2) will be inapplicable to cases where the full value of the consideration for the transfer of the oapital asset is 80 determined or approved whether or not the assessee questions the adequacy of the full value of the consideration this amendment wfil take effect retrospecuvely from 1st aprll, 1974 and wfil accordingly apply in relation to the assessment year 1974-7:> and subsequent years clause 10 seeks to make certain amendments in section 54 of the incod-tax act under the existing provisions, capital gain arising from the transfer of a self-occupied bouse property is exempted from tax if the assessee utilises such capital gain for the purpose of acquiring another bouse property for the purpose of his residence within the time-limit specified in section 54 ~re only a part of the capital gain is 80 utilised, the proportionate part thereof is exempted from tax the proposed amendments seek to provide that where any such house property is compulsorily acquired under any law and additional compensation is awarded by any court tribunal or other authority the capital gain attributable to such,additional compensation would be exempted from tax if such additional compensation is utilised by the 8 ssessee for the purpose of purchase or construction of a house property for his personal residence within the specified time-limit these amendments will apply retrospectively from 1st april 1974 and will accordingly apply in relation to the assessment year 1974-75 and subsequent years clause 11 seeks to make certain amendments in section 54b of the income-tax act under the existing provisions, capital gain arising from the transfer of any agricultural land is exempted from tax if the assessee utilises the capital gain for the purchase of any other agricultural land within the specified period under the proposed amendments where any agricultural land is compulsorily acquired under any law and additional compensation is awarded to the assessee by any court tribunal or other authoritv the capital gain attributable to such enhanced compensation will be exempted from tax if the additional compensation is utilised for the purchase of other agricultural land within the specified period these amendments w1ll apply retrospectively from the 1st april 1974 and will accordingly apply in relation to the assessment year 1974-75 and subsequent yeara clause 12 seeks to make certain amendments in section 54d of the income-tax act under the existing provisions capital gain arising on the compul80ry acquisition, under any law, of any land or bullding or any rights therein forming part of an industrial undertaking belongidg to the assessee is exempted from tax, if such capital gain is utilised within the specified period for the purchase of similar asset where only a part of such capital gain is so utilised the proportionate part of the capital gain is exempted from tax under the propoaed amendments where any additional compensation is awarded to the assessee by any court tribunal or other authority the capital gain attributable to sueh additional compensation would be exempted from tax, if such additional compensation is utilised within the specified period for acquisition of the asset referred to in section 54d these amendments will apply retrospectively from 1st april 1974 and will accordingly apply in relation to the assessment year 1974-75 and subsequent years  clause 13 seeks to make certain amendments in section 54e of the income-tax actsub-clause <a> (i) seeks to make certain modifications in explanation 1 to subsection (1) of section 64e one of the modifications seeks to secure that investment after the 28th february 1978 in shares in an indian company will qualify as investment in a specified asset only where such shares form part of an initial issue of equity capital made by a public company another modification seeks to provide that fixed deposits with banks w1ll cease to be an eligible mode of investment after 28th february 1978 sub-cl811se (b) seeks to insert three new sub-sections (3) (4) and (6) in section 54e under the proposed amendment where a capital asset not being a short-term capital asset is transferred by way of compulsory acquisition or where the consideration for the transfer of the capital asset is determined or approved by the central government or the reserve bank of india and subsequently any additional compensation is awarded by any cwrt tribunal or other 8llthority the capital gain attributable to such addit100al compensation would be exempt from tax, if such additional compensatioo is invested or deposited within the specified period in any specified 88set referred to in sectim me the amendments proposed will take effect from 1st april, 1978 and will accordingly apply in relation to the assessment year 1978-79 and subsequent years  clause 14 seeks to insert a new sub-section (3) in section 72a of the income-tax actunder the existing provisions where a company owning an industrial undertaking or a sblp amalgamates with any other company the accumulated loss and unabsorbed depreciation allowance of the amalgamating company is deemed to be the loss or the depreciation allowance of the amalgamated company of the previous year in which the amalgamation was effected if on the recommendation of the specified authority the central government is satisfied that the amalgamation was in the public interest and that the other conditions mentioned in this behalf are fulfilled the new sub-section seeks to provide ~hat where a company owning an industrial undertaking or a sbip proposes to amalgamate with any other company under a scheme of amalgamation such other company may submit the proposed scheme of amalgamation to the specified authority where the specified authority after exam1d1n, the scheme and taking into account the relevant facts is satisfied that the amalpmation if effected in accordance with such scheme or with such scheme as modified in suoh manner as that authority may specify, would satisfy the conditions referred to in 8ub-'section (1) the specified authority would send an intimation to such oompany that after the amalgamation takes place in accordance with the scheme or with the scheme as modlfied it would make unless there is any material change in the relevant facts the recommendation to the central government under sub-section (1) this amendment will take effect from 1st april, 1978 and will accordingly apply in relation to the assessment year 197~-79 and subsequent years clause 16 seeks to omit sub-section (4) of section 80a of the income -tax act under the existing provisions, no deduction is allowed under section 80g or section 8000 or section 80d or section 80j or section sol or section 80qq in the oase of a hindu undivided family which has at least one member whose total income of the previous year exceeds the maximum amount not chargeable to tax the proposed amendment seeks to omit this provision accordingly, the deduction under section 80g, 8ogg 80sh 8oj 80l or 80qq would also be allowed in the case of such hindu undivided families this amendment will take effect from 1st april, 1979 and will accordingly apply in relation to the assessment year 1979-80 and subsequent years clause 16 seeks to amend section soc of the income-tax aot relating to deduction in respect of life insurance premia, contributions to provident fund, etc under the amendment proposed in sub-clause (a), the quantum of demction from taxable income in respect of long-term savings through life insurance, provident fund etc, will be varied so as to allow a deduction of the whole of the first rs 6000 of the qualifying savings plus 60 per cent of the next rs 5000 plus 40 per cent of the remainder of the qualifying savings under the amendment proposed in sub-clause (b), the monetary limit of the savings qualifying for tax relief in the case of an individual (not being an author, playwright artist, musician or actor) and in the -case j of an association of persons or a body of individuals consisting only of husband and wife governed by the system of community of property in force in the union territories of dadra and nagar havel1 and goa daman and dlu, will be raised from rs 20000 to rs 30000 these amendment will take effect from 1st april 1979 and w1ll accordingly apply in relation to the assessment year 1979-80 and subsequent years  clause 17 seeks to insert a new section 80cc in the inoome-tax actthe dew section seeks to provide that where an assessee being an individual, or a hindu udcilvided family, or an association of persons or a body of indlvlduals consisting only of husband and wife governed by the system of community of property in force in the union territories of dadra and nagar baveli and goa, daman and diu, purchases new equity shares out of his income chargeable to tax he will be allowed a deduction, in the computation of his total idcome, of an amount equal to fifty per cent of the cost of the shares so purchased where such cost exceeeds rs 10,000, the amount with reference to which the deduction will be allowed will be limited to rs 10,000 for the purposes of this tax concession, the investment will be required to be made in equity shares issued by a public company engaged in the business of construction, manufacture or production of any article or thing, not being an article or thing specified in the list in the eleventh schedule to the income-tax act the equity shares should form part of the initial issue of capital of the company, i e , an issue of capital made by the public company for the first time in cases \were the public company issuing the share capital was originally incorporated as a· private company, an issue of equity shares made for the first time after it has become a public company will not be regarded as an eligible issue of capital if the shares are offered for subscription at a premium or the company had declared, distributed or paid any dividends when it was a private company the investment in equity shares will qualify for the proposed tax concession only if the taxpayer has sub'icribed to the shares in pursuance of an offer for public subscription made by the oompany or in pursuance of a reservation or an optim in bis favour by reasm d his being a promoter of the company or has acquired them from a person who is specified as an underwriter in pursuance of clause 11 of part i of schedule ii to the companies act, 1956 the taxpayer will be required to hold the shares for a period of five years the exemption will be forfeited if the taxpayer transfers the new shares before the end of the aforesaid period once a deduction is allowed in respect of any equity shares under the new section 8occ, investment in those shares will not ap1n be taken into account for the purposes of the tax concession under section su the deduction under this section will be available in t'elatlon to the previous year relevant to the assessment year commencing on the 1st april, 1979 and subsequent years clause 18 beeks to subdutute clause (b) of sub-secuon (2) of section 80p of the income tax act by a new clause under the existing provisions, praflts derived by a primary co-operauve society engaged in supplytng milk raised by its members to a federal milk co-operauve society are exempt from income-tax the proposed amendment seeks to extedd the scope of the existing tax concession to primary co-operative societies which ar~ engaged in the supply of mllk raised by their members to the government or to a loop1 authority or to a government -company or statutory corporation, engaged in supply-ing muk to the publlc thls ameddment will take effect from 1st aprll, 1979 and will accordtngly apply in relation to the assessment year 1979-80 and subsequent years clause 19 seeks to make certain amendments in sectlm 155 of the income-tax act sub-clause (a) seeks to insert a new sub-sectlon (7 a) in section 155 « the income-tax act the proposed amendment seeks to provlde that where in relation to any assessment year a capltal gain arising on the compulsory acquisition of a capltal asset is,charged to tax and subsequently any additionaii compensation is awarded by any court tribunal or other authority, the income-tax officer shall amend the order of assessment and recompute the capltal gain on the basis of the enhanced compensation for thls purpose, the provisions of secuon 154 of the income-tax ~ct relatldg to rectifloation of mistakes shall apply and the perloe of four years for amendment of orders specified in sub- section (7) of that section shall be reckoned from the end of the previous year in whlch the additional compensation was received by the assessee sub-clause (b) seeks to amend sub-section (8) of section 155 this amendment is consequential to the insertion of a new sub-sectlon (2) in section 54 of the l'dcome-tax act under clause 10 of the bill sub-clause (c) seeks to insert a new sub-secuon (8a) in sectlon 155 the proposed amendment seeks to provide that where in relatlon to any assessment year a capital gain arising on the compulsory acqulsltlon of a self-occupied bouse property is charged to tax and subsequently on receipt d any additional compensation awarded by any court, tribunal or other authority, the assessee purchases or constructs any other house property for the purposes of his residence wlthln the specified time limit tile income-tax officer shall amend the ofder of assessment so as to exclude the amount of cap( tal galn not chargeable to tax under new sub-sectlon (2) proposed to be inserted in sectlon 54 d the income-tax act under clause 10 of the bill for this purpose the provisions of section 154 relating to rectlftcatioo d mlstakes shall apply and the period d four years for amendment of orders speclfled1n sub-section (7) of that sectlon shall be reckoned from the end of the previous year in wblch the additional compensatlon was received by the assessee sub-clause (d) seeks to amend sub-section (9) of section 155 this amendment is consequenttal to the insertion d a new sub-section (2) in sectlon 54b of the incometax act under clause 11 of the bul  sub-clause (e) seeks to insert a new sub-aecuon (9a) in section 155 the proposed amendment seeks to provtde that where in relation to any assessment year a capital gain arising on the compulsory acquisition of any agricultural land is charged to tax and subsequently on receipt of any addl tlonal compensatl oil' awarded by any court, tribunal or other authority the as8essee purchases any other acrlculturalladd within the specified time limit, the idcome-tax officer shall amend the order of assessment so as to exclude the amount of capital pin dot ohargeable to tax under dew~sub-sectlon (2) proposed to be inseried in aecuon 54b of the income-tax act undc?r clause 11 of the bill for this purpose, the provisions of section 164 relating to rectlflcatlod of mistakes shall apply and the period of four years for amendment of orders specified in sub-section (7) of that section shall be reckoned from the end of the previous year in which the additlonal compensation was received by the assessee sub-clauses (f) and (g) seek to amend sub-section (10) of section 155 the first amenment is coilsequentlal to the insertion of a dew sub-sectlm (2) in section 540 of the incometax act under clause 12 of the b' n the effect of the second amendment will be that where in relatlclll to any assessment year a capltal gain arising on the compulsory acquisltlon of any land or building or any rights therein forming part of an industrial undertaking belonging to the &8se88ee is charged to tax and subsequently on receipt of any additional compensatton awarded by any oourt, trtb1dlal or other authority, the assessee acquires a slmllar as8et within the specified time limit, the income-tax officer shall amend the order of asses8ment so as to exclude the amount of capital gain not chargeable to tax under bub-section (2) proposed to be inserted in section 540 of the incometax act under clause 12 of the blll for this purpose, the provisions of section 154 relating to rectification of mistakes shall apply and the period of four years for amendment of orders specified in sub-sectton (7) of that section shall be reckmed from the end of the previous year in which the additional compensation was received by the assessee sub-olause (h) seeks to amend sub-section (loa) of section 155 this amendment is consequential to the insertion of a new sub-section (2) in section 54e of the incometax act under clause 13 of the bill sub-clause (i) seeks to insert a new sub-section (lob) in section 155 the proposed amendment seeks to provide that where in relation to any assessment year a capital gain arlslng from the transfer being a transfer by way of compulsory ac quisltlon or being a transfer the consideration for which is determined or approved by the central government or the reserve bank of india, of any capital asset is charged to tax and subsequently on receipt of any addt tlonal compensatt on awarded by any court tribunal or other authority the assessee invests or deposits the additional compensation in any speclfled asbet referred to in bectlm 54e within the period specified therein the income-tax officer shall amend the order of assessment so as to exclude the amount of capital gain not chargeable to tax under new sub-section (3) proposed to be inserted in section 54e of the income-tax act under clause 13 of the bill for this purpose the provisions of section 154 relating to rectification of mistakes shall apply and the period of four years for amendment of orders specified in sub-sectton (7) of that section shall be reckoned from the end of the previous year in which the additional compensation was received by the assessee the amendments proposed under suo-clauses <a) to (g) will apply retrospectively from 1st april 1974 and the amendments proposed under clauses (h) and (i) wul take effect from 1st april, 1978 clause 20 seeks toamend section 193 of the income-tax act by adding a new clause (ib) in the existing proviso to that section the effect of the proposed amendment wlll be that no income-tax will be deductible at source from any interest payable on national development bonds this amendment will take effect from 1st april 1978  clause 21 seeks to insert a new section 194bb in the income-tax actunder the new section 1948b, income-tax will be deducted at source by bookmakers and race clubs from winnings from horse races at the rates in force (1 e, the rates as may be prescribed in the finance act of the relevant year) where the payment exceeds re 2 500 no deduction wlll, however oe made from any such payment made before - 1st june 1978  clause 22 seeks to amend section 208 of the income-tax act relating to condition of llablllty to pay advance tax this ameddment is consequential to the insertlon of new section 209a in the income-tax act 1dlder clause 24 of the bill this amendment will take effect from 1st june 1978 clause 23 seeks to make certain amendments in section 209 of the income-tax act relattng to computation m advance tax these amendments are consequentlal to the insertion of new section 209a in the income-tax act under clause 24 of the btll these amendments wlll take effect from 1st june 1978  clause 24 seeks to insert a new section 209a in the income-tax actunder the exlstlng provisions of section 210 of the income-tax act a taxpayer, who has been previously assessed by way of regular assessment under the provisions of the income-tax act, i s required to pay advance tax cxl the basis of a notice issued by the income-tax officer sub-section (1) of the proposed secuon 209a seeks to provlde that such assessee, if his current inccime is likely to exceed the amount speclfled in subsectlon (2) of section 208 of the income-tax act, wul be required to fue a statement of advanoe tax payable by him the ldoome that will form the basis of oomputatlon of advance tax for the purposes of furnishing the statement will be the total income of the latest previous year in respect of which he has been assessed by way of regular assessment or if a return has been filed by him for a later previous year oil the basis of which tax has been pald by way of self-assessment under sectlon 140a of the incometax act, the total income whlob forms the basis of such self-assessment sub-section (2) of the proposed section 209a seeks to provide that in cases where the assessee estimates that his current income of the previous year in respect of wblcb he is requi red to furnl sh the statement of advance tax would be less than the total income as aforesald, be will have the option to furnish an estimate of sucb current income ldstead of furnishidg the statement a taxpayer who hu not previously beed usessed will have to seud, as at present, an estimate of the advance tax pa,yab1e by bim with reference to his current income the advance tax so computed on the basis of the statement or, as the case ma,y be, the estimate, wul be required to be paid in equal instalments oil the datel appucable in bls cue under sectiaa 211 &1b-sectiaa (3) of the proposed sectim 209a seeks to provide that where an assessee has furnished a statement as aforesaid, he will have the optim to file an estimate if he estimates that his current income is ukely to be less than the income on the basis of which he is so required to pay advance tax the elltimate can be furnished at any time before the last instalment of advance tax is due in bis cue sub-sectlclo (4) of the proposed section 209a seeks to provtde that in a case where the advance tax payable by a taxpayer on the basts d hls current income exceed the tax payable by him on the basis of the statement or estimate furnished by blm by more 1han 33-1/3 per cent he will be required to furnish an estimate d advance tax payable by him cxl the basts of his current income before the date on which the last instalment of such tax is due from him the commtssloner of income-tax wfi, however, be empowered to exteud the tlme-llmlt for furnishing the esumate of advance tax in tbll t;ype of cases up to a period of thirty days immediately following the accountlng period in respect of the taxpayer's business provlded the taxpayer has pald the advance tax payable on the basis d the statement or estimate furnished by him before the date on whlch the last tnat\ment is ordlnarlly due such extension wlll be permissible only in cases where the commissioner of income-tax is satisfied that, havtng regard to the nature of the taxpayer's business and the accounting year of the taxpayer, it will be difficult for hlm to furnish the estimate of advance tax before the last date fixed for the purpose sub-section (5) seeks to provide that the assessee may send a revised estimate of the advance tax payable by hlm before any of the dates speclfied in section 211 and adjust any excess or deficiency in respect of an instalment already pald in a subsequent instalment or any subsequent instalments sub-section (6) seeks to provide that every statement or estimate under new section 209a wlll be sent in the prescrlbed form and verified in the prescribed manner these provisions wlll take effect from 1st june, 1978 clause 25 seeks to make certain amendments in section 211 of the income-tax act relating to instalments of "advance tax" these amendments are collbeq'!ential to the insertion of new section 209a in the income-tax act under clause 24 01 the blll these amendments will take effect from 1st june 1978 clause 26 seeks to amend section 212 of thelncome-tax act relating to estimate of advance tax by assessee8 these amendments are consequentlal to the insertlon of new section 209a tn the income-tax act under clause 24 of the blll these amendment/3 wlll take effect from 1st june 1978 clause 27 seeks to amend sub-section (1) of section 215 of the income-tax act the propo8ed amendment seeks to provide that where an assessee has paid advance tax on the basis of an estlmate furnished by him under new section 209a proposed to be inserted in the income-tax act under clause 24 of the bm and the advance tax so paid is le8s than seventy-five per cent of the assesed tax simple interest at the rate of twelve per cent per annum from the 1st day of aprll next following the financial year in which the advance tax is paid up to the date of the regular assessment shall be payable by him upon the amount by which the advance ~ so paid falls short of the assessed tax this amendment wlll take effect from 1st june 1978 clause 28 seeks to amend section 216 of the income-tax act relating to the interest payable by the assesseesln cases where the advance tax payable bas been under-estimated this amendment is consequential to the insertion of new section 209a in the income-tax act under clause 24 of the blll this amendment wlll take effect from 1st june 1978 clause 29 seeks to make certain amendments in secticm 217 of the income-tax act relating to interest payable by the as8essees in cases where no estimate of advance tax is made these amendments are consequentlal to the insertion of new section 209a in the income-tax act under clause 24 of the bill and will take effect from 1st june 1978 clause 30 seeks to substttute a new section in place of existing section 218 of the income-tax act the substltuuon of the exlstlng sectlon ls consequential to the lnsertlon of new section 209a in the income-tax act under clause 24 of the bu! the effect of the substl tutlon will be that if an assessee does not pay any lnstalment of advance tax by the due date in accordance with the statement or the estimate furnished under the proposed new sectlon 209a,he will be deemed to be an assessee in default this amendment will take effect from 1st june, 1978 clause 31 seeks to make certain amendments in sectlm 273 of the income-tax act the changes made are consequential to the insertion of new section 209a in the incometax act under clause 24 of the bill the effect d the proposed changes will be that default wlthout reasonable cause in furnishing the statement or estimate required under the proposed new section 209a will attract a penalty under section 273 of the income-tax act the penalty for furnishing of a false statement under the proposed new section 209a wul be a minimum or 10 per cent and a maximum of 150 per oent of the amount by which the advance tax actually paid faus short of 75 per cent of the assessed tax or the amount wjich would have been payable if the assessee had furnlshed the statement in accordance with clause <a) of sub-section (1) of the proposed new section 209a whichever is less the penalty for non-furnishing of a statement will be a minimum of 10 per cent and a maximum of 150 per cent of 75 per cent of the assessed tax the penalty for non-furnishing of an estimate under sub-section (4) of the proposed new section 209a or for furnishing a false est{ mate under the said section will be the same a8 for non-furnishing of an estimate under sub-section (3a) of sectioll 212 or for furnishing a false estlmate under that sub-section these amendments wlll take effect from 1st june, 1978 clause 32 seeks to make certain amendments of a consequential nature in different provisions of the income-tax act these amendments are consequential to the insertion of new section 194bb in the income-tax act under clause 21 of the bill clause 33 seeks to amend sub-section (2) of sectlon 6 of the interest-tax act 1974 under the existing provtslons the amount of interest accruing or artsl~ to a scheduled bank before the 1st august 1974 is no~ taken into account in computing the chargeable interest for the purposes of interest-tax the proposed amendment seeks to provlde that the amount of interest which accrues or arises to a scheduled bank after 28th february 1978 wul not be taken into account in computing the chargeable interest for the purposes of the interest-tax act 1974 this amendment will take effect from 1st aprtl 1979 and will accordingly apply in relation to the assessment year 1979-80 and subsequent years clause 34 seeks -(1) to insert an explanatlon under the customs tarlff entry 3701/08(2) relating to cinematograph film not exposed so as to provide for calculauod of import duty on fllms designed for more than one exposure (2) to raise the rate of import duty on yarn of man-made fibres clause 35 seeks to levy up to 31st march, 1979, auxuiary duties of customs on all imported goods at the rate of 20 per cent of their value clause 36 seeks -<a) to raise the rate of hulc excise duty m -(1) fabrics impregnated, coated or laminated with preparattmi of cellulose dertvatives or of other arttftcfal plastic materials, falling udder item nos 19 m, 22(3) and 22b; (2) all other goods, dot elsewhere specified; (b) to ohange the tariff descrtptim and/or to restructure the duty rates in the central excise tariff in respect of -(1) reflnd diesel 011 and vaporising all; (2) fum&ce 011; (3) petroleum products not otherwise spectfled; (4) parts and accessories, not elsewhere specffled, of motor vehioles and tractors, inoluding trailers j (c) to maert specific entries in the central excise tariff for -(1) non-cellulosio wastes; (2) trailers  - (d) to include new items in the central excise tariff for -(1) coal; (2) electricity clause 37 seeks to levy up to 31st march, 1979, spactal duties of excise on all excisable goods at the rate of five per oent of the duty leviable under the central excises act, read with any notl ftoaum for the ume being in force issued under the sa1d act, or the rules made thereunder clause 3~l1ke sectlm 5 of the finance act, 197\ provides that salt shall be duty free for another year clause 39 seeks to· amend the first schedule to the indian post otftce act, 1898 with a view to revising tbe postage rates for letters, registered newspapers and bookpattem and sample packets and also to f:bdng a separate postage for post cards containing printed oommunioat1on clause 40 seeks to make certain amendments m tjie compulsory deposit sobeme (moometax payers) act 19'14 bub-olau8e (a) seeks to amend sub-section (1) of seotion 4 of the act the ameddment in 8ub-clause (8)(2) seeks to seoure that in relation to the ab8888lnent years 1977-71 add 197 8-79, compulsory depo8its are made at the rates speclfled in existing paragraph b of the schedule and that in relation to the 88sessment year 1979-80, oompul8ory deposits are made at the rates specified in new paragraph c of the schedule 8ub-clauae (b) seeks to maert a new paragraph c which lays down the rates at which compulsory deposits are required to be made in relation to the a8se88ment year 1979-80 add to make suitable modfficatioos m the proviso these amendments will take effect from 1st april, 19'18  memorandum regarding delegated legisla nonclause 3 seeks to add iljl explanatlm to clause (1) of section 6 under the explanation, an indian citizen rendermg service outside india wwld be able to stay in india on leave or vacation for a period up to 19 days without acquiring the status of a resident, if his service outside india has been lponsored by the central government or the terms and conditions of his service outside india have been approved by the central government or any authority prescribed by rules made udder section 295 of the income-tax act clause 7 seeks to insert a new section 35cca in the income-tax act the section provides for the deduction of expenditure incurred by an asses8ee engaged in a business or profession by way of payment of any sum to an association or institution having the object of undertaking any rural development programme, to be used for the purposes of carrying out such programme the deduction will be admissible only in cases where such associations or institutions and such programmes of rural development are approved by the authority prescribed in that behalf by rules made under section 295 of the income-tax act clause 17 seeks to insert a new section 80cc in the income-tax act under the new section, the assessee being any individual' or a hindu undivided family or an association ~ persons or a body of individuals consisting only of husband and wife governed by the system of community of property in force in the udtm territories of dadra and nagar haveli and goa, daman and diu w1ll be allowed a deduction in the computatioo of total income equal to 50 per cent of the cost of new equity shares purchased by the assessee if such shares form part of an eligible issue of capital as defined in sub-section (3) of the section the said sub-section (3) spella out expressly the main conditions which an issue of equity shares should satisfy in order to be regarded as an eligible issue of capital with a view to covering matters of detail and matters which cannot be foreseen, the sub-section eil1powers the central board of direct taxes to prescribe, by rules made under section 295 of the income-tax act, the other conditions which an issue of equity shares should satisfy in order to qualify as an eligible issue of capital clause 24 seeks to insert a new section 209a in the income-tax act to provide for the statements and estimates of advance tax whic'h the assessees will have to send to the income-tax officers sub-section (6) of the section provides that all such statements and estimates shall be in such form and verified in such manner as may be prescribed by rules made under section 295 of the income-tax act the matters aforesaid are matters of detail or matters which cannot be foreseen at this stage the delegation of legislative power is, therefore, of a normal character  billto give effect to the financial proposals of the central government for the financial year 1978-79 (shri hm patel, minister of finance) 