 the finan(~e u'jl, 1m"(as introduced in lok sabha)  the finance bill, 1977 billco &oncinue for tile lin  tid yellf 1977-78 iiie aistin, races of 'n,olle"w "illl certain modifications and to provide for die concfnltlllct of die provisions relating to auxiliary duties of cltstoms and ucise gild ike distontinu  ce of the duty on salt for iiie said year be it enacted by parliament in the twenty-eighth year of the republic of india as follows:-1 (1) this act may be called ihe finance act, 1977 short title and commenceent (2) save as otherwise provided in this act, it shall be 5 deemed to have come into force on the 1st day of april, 1977 incometax 2 the provisions of section 2 of, and the first schedule to, 66 of 1976 the finance act, 1976, shall apply in relation to income-tax for the assessment year or, as the case may be, the flnanclal year commencing on the 1st day of april, 1977, as they apply in 10 relation to income-tax for the assessdlent year or, as the case may be, the financial year commencing on the 1st day of aprll, 1976, with the following modifications, namely:-(a) in socticm 2,-(i) for sub-sectioil (1), ule following sub-section shall 15 be substituted, namely:-"(l) 'subject to the provisions of sub-sections (2) and (4), for the assessment yeai' commencing on lho 1st day of april 1977 income-tax shall be charged at the rates speclfled in part i of the flrst schedule and shall be lncreased,-(a) in the cases to whlch paragraphs a, b, c and d ex that part apply, by a surcharge for purposes of the union; add 5 (b) in the cases to whlch paragraph e ex that part applles, by a surcharge, calculated in each case in the manner provlded therein: prov1ded that where an assessee being a company has made cmrlng the financial year commencing on the 10 1st day ex apru, 1976, any doposit with the industrial development bank of india establlshed under the lndustrlal development bank of indla act, 1964 under the companies 18 of 1964 deposits (surcharge on income-tax) scheme, 1976, then, the surcharge on income-tax payable by the company,-15 (a) in a case where the amount of the deposit so made 1s equal to or exceeds the amount of surcharge on lncome-tax payable by it, shall be nil; and (b) in a case where the amount of the deposit so made falls short of the amount of surcharge on in-20 come-tax payable by lt, shall be reduced by the amount of the depoe it "; (tt) sub-sectlon (3) shall be omitted; (ui) for sub-sectlon (8), the followlng sub-sectlon shall be substltuted, namely:-25 30 18 of 1964 "(8) where an assessee,belng a company, makes, during the financial year commencing on the 1st day of aprll, 1977, any deposit with the industrlal development bank ex india establlshed under the industrial development bank of india act, 1964 under any such scheme as the central government may, by notlficatlon in the official gazette, frame in this behalf, then, the surcharge 'oil income-tax payable by the company for the assessment year commencing on the 1st day of aprll, 1978-35 (i) in a case where the amount of the deposit so made is equal to or exceeds the amount of surcharge on [neome-tax payable by it, shall be nil; and (u) ld a cue where the amount of the deposit so made falls abort of tbe amount of aurcbarge od ldcometax pqable by it, shall be redlaced by the amount of the deposit "i (iv) ld sub-sectlod (9)' ld clause (b), for the figures "1976", the flgure "1977" shall be substltuted, (b) ld the first bchemle, -(i) id part 1,-10 ( 1) for paragraph a , the fo1lowldg paragraph shall be substituted, uame1yi- ", parqrcaph a sub-parqrcapja iin the case of every lddlvldual or hindu undivided famlly or unregistered flrm or other  soclatlon of persons or body of 15 individuals, whether idcorporated or dot, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of sectlod 2 of the income-tax act, not being a case to which sub-paragraph n of this paragraph or any other paragraph of this part applles,- 20 ra'es of incoiie-ta(1) where the total income nil; does not exceed ra 8,000 15 per cent of the amount by which the total income exceeds re 8,000, (2) where the total income exceeds ra 8, 000 but does not 25 exceed re 15,000 ra1,050 pill, 18 per cent of the amount by whtch the total income exceeds re15, 000; (3) where the total lncome exceeds ra 15,000 but does not exceed ra20,ooo 30 (4) where the total income exceeds ra 20,000 bit does not exceed re25,ooo re i, 950 plus 25 per cent of the amount by which the total income exceeds ra 20,000, (5) where the total income exceeds re 25, 000 bit does dot exceed rs30,000 ra 3, 200 phls 30 per cent of the amount by which the total ldcome exceeds ra 25, 000, (8) where the total ldcome exceeds ra 30,000 bat does dot exceed ra 50, 000 ra",,700 plus "'0 per cent of the amount by which the total income exceeds ra so,oooi 6 rii 12, 700 plus so per cent of the amount by which the total income exceeds ra 50, 000; (7) where the total ldcome exceeds ra s0, 000 but does ddt exceed ra70,ooo ra 22, 700 plus is per cent of the amount by which the total lncome exceeda ra 70,000; (8) where the totalldcome exceeds ra 70,000 bit doe8 ddt exceed rsl,oo,ooo (i~) where the total ldcome exceeds ral, 00,000 ra ;19, 200 plus 80 per cent of 10 the amount by which the total income exceeda ra 1,00, 000 the amount of income-tax computed in accordance with the precedldc provialona of thla sub-paragraph shall be increased 15 by a surcharge for purpolle8 of the union calculated at the rate of ten per cent of such income-tax  sub-p 'graph iiin the calle of every hindu undlvtded family which at any time durlng the prevlous year has at leaat one member whoae 20 total income of the prevlous year relevant to the a8sessment year commencing on the 1st day of april, 1977 exceeds bs8,000,- rates f 'ncoilhainfl; 25 (1) where the totallnoome does not exceed bs 8, 000 (2) where the total income exceeds bs 8, 000 but does not exceed bs 15,000 18 per cent of the amount by which the total income exceeda rs 8,000; 30 (3) where the total income exceeds r8 16, 000 but doea not exceed ra 20, 000 bs 1,260 plus 26 per cent of the amount by whlch the total income exceeds ra16,000; 35 (4) where the total income exceeda ra 20,000 but does not exceed ba 25, 000 bs 2, 510 plus 30 per cent of the amount by which the total income exceeds rs20,ooo; (5) where the total income exceeds bs25,ooo butdoes not exceed bs 30, 000 | bs        | 4,     | 010     ||------------|--------|---------|| plus       |        |         || 40         | per    | cent   || of         | the    | amount  || total      | income | exceeds || b825,ooo; |        |         |exceeds b8 30, 000 but does not exceadbs50,ooo 5 (6) where the total income bs 8, 010 plu 60 per cent of the amount by wblch the total income exceeds bs30,000; (7) where the total income 10 exceeds bs 50, 000 but does not exceed bs 70, 000 bs16,010 plus 66 per cent of the amount by which the total income exceeds rs60,000; 15 (8) where the total income exceeds bs 70, 000 rs 27,010 plus 80 per cent of the amount by which the total income exceeds rs70,000  surchll,se on income-tluthe amount of income-tax computed in accordance with the preceding provisions of tbls sub-paragraph shall be increased 20 by a surcharge for purposes of the union calculated at the ralb of ten per cent of such income-tax "i (2) pii'lis,aph e shall be omitted; (3) p"'asraph f shall be re-iettered as p"'iiij'liph e and in parasrapll e as so re-ietterec:l,-25 31 of 1958 (a) the words and figures ", other than the ufe insurance corporation of india established under the life insurance corporatim act, 1968" shall be omitted; 30 (b) for the words figures and letters "after the 31st day of march, 1981, or", the words, figures and letters "after the 31st day of march, 1981 but before the 1st day of april, 1978, or" shall be substituted; 31 (c) for the words, figures and letters "after the 29th day of february 1964,", the words figures and letters "after the 29th day of february, 1984 but before the 1st day of apru 1976, " shall be substituted: (ii) in part m, in sw-para&raph ii of parq",,1t a , for the figures "1977", the flgures "1978" shall be substituted; (iii) in part iv, in rule 9,-(a) for sub-rules (1) and (2), the following sub-niles 5 shall be substituted, namely:-t(l) where the assessee bas, in the previous year relevant to the assessment year commencing on the 1st day of aprll, 1977, any agricultural income and the net result of the computation of the agricultural 10 income of the assessee for anyone or more of the previous years relevant to the assessment years commencing on the 1st day of april, 1974 or the 1st day of april, 1976 or the 1st day of april, 1976, is a loss, then, for the purposes of sub-section (2) 15 of section 2 c4 this act,-(i) the loss so computed for the previous year relevant to the asseslment year commencing on the 1st day of april, 1974, to the extent, if any, such i08s has not been set off against the agrl-20 cultural income for the previous year relevant to the assessment year commencing on the 1st day of april, 1975 or the 1st day of april, 1976, (ii) the loss so computed for the previous year relevant to the assessment year commencing 25 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 assessment year commencing on the 1st day of april, 1976, add 30 (iii) the l08s so computed for the previous year relevant to the assessment year commencldg on the 1st day of apru, 1976, shall be set off against the agrlcultural income of the assessee for the previous year relevant to the 35 88sessment year commencing on the 1st day of aprll, 1977 erplgjicition - - in this sub-nile and sub-nile (2), the exprersion "section 2 of this act" means section 2 of the finance act 1976, as applied for the pur-40 66 of 1976 poses of this act (2) where the assessee bas in the previous year re1evaot to the assessment year commenclag on the 1st dq of april, 1978 or, if by virtue of any provilon of the income-tax act, income-tax is to be 5 charged 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 the assessee for any one or more of the previous years relevant to the 10 usessment years commenclag on the 1st day of april 1974 or the 1st day of april 1976 or the 1st day of apru, 1976 or the 1st day of april 19'17, ta a loss, then, for tile illrposes of sub-section (7) of section 2 of this act,-16 (i) the los8 so comp,ated for the previous year relevant to the assessment year commenclag or the 18t day of apru, 1974, to the extent, if any, such loss has not been set off ap1nst the agricultural income for the previous year relevant to 20 the asessment year commenc1dg en the 1st day of april, 1976 or the 1st day of apru, 1978 or the 1st day of apru, 1977 (u) the loss 80 computed {or the previous year relevant to the assessment year commenc-25 1ng on the 1st day of april, 1976 to the extent, if any, such loss has not been set off agaidst the agricultural income for the previous year relevant to the asseument year commeaolag on the 18t day of apru, 1978 or the 1st day of apru, 30 18'17, (iii) the loss 80 comp,ated for the previous year relevant to the assessment year oommencing on the 1st day of apru 1978 to the extent, if any luoh loss has not been set off against the agricul-36 tural income for the prevlou year relevant to the ubessment year commencing on the 1st day of april 1977, and (ill) the loss 80 computed for the prevloua year relevant to the assessment year commencl4g 40 on the 1t day of apru, 1977, ahall be set off again8t the agricultural income of the unsee for the previous year relevant to the uaessment year commencq on the 1st day of apru, 1978 or the period aforesald '; (b) for sub-rule (5), the following sub-rule shall be aubstltuted, aamely:-5 20 of 1974 25 of 1975 66 of 1976 10 "(s) notwithstanding anytbjdg oontained in this rule, no ios8 which has not been determined by the mcome-tax officer under the provisions of these rules or the rules contained in part iv of the first schedule to the finance act, 1974, or of the first schedule to the finance act, 19'15, or of the first schedule to the finance act, 19'16, shall be set off under sub-rule (1) or, as the case may be, subrule (2) " i (1) in the case of goods mentioned in the first schedule , a  lliary dilly of cato ••• to the customs tariff act, 19'15, (hereinafter referred to as 51 of 1975 the customs tariff act~'or in that schedule as amended from ume to time, there shall be levied and collected as an auxiliary duty of 15 cdstoms an amount equal to twenty per cent of the value of the good_ &8 determined in accordadce with the provisions of section 14 of the customs act, 1962 (hereinafter referred to as the customs 52 of 1962 act) (2) sub-section (1) sball come into force on the 1st day of 20 july,i9'1'1 and cease to have effect after the 31st day of march, 19'18, except as respects things done or om itted to be done before such cess~r, and section 6 of the general clauses act, 189'1, shall 10 of 1897 apply upon such cesser as if the said sub-section had then been repealed by a central act 25 (3) the auxiliary duties of customs referred to in subsection (l) shall be in addition to any duties of customs chargeable on such goods under the customs act, or any other law for the time being in (orce (4) the provisions of the customs act, aud the rules and 30 regulations made thereunder, including those relatlog to refunds and exemptions from duties, shall, as far as may be, apply in relation to tbe levy and collection of the auxiliary duties of customs leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of customs on such 35 goods under tbat act or those rules aod reculatiods, as the case may be aaslliar, dati •• of esci ••• 40 1 of 19  4 (1) in the case of goods mentioned in the first schedule to tho central excises and salt act 1944 (hereinafter referred to a8 the central excisos act), or in that schedule as amended from time to time, there shall be levied and oollected as an auxuillry duty of e  ,;cise an amount equal to twenty per cent of the value of the goods as determined lit accordance with the provisions of scction 4 of the central excises act (2) sub-section (1) shall come into force on the 1st day of july, 1977 and cease to have effect after the 31st day of march 1978 except 88 respect" things done or omitted to be done before 10 of 1897 such cesser and section 6 of the general clauses act 1897 shall 5 apply upon such cesser 88 if the said sub-section had then been repealed by a central act (3) the auxulary cuties of excise referred to in subsection (1) shall be in addition to any duties of excise chargeable on such goods under the central excises act, or any other law 10 for the time being in force (4) the provisions of the central excises act and the rules made thereunder, includjug those relating to refudds and exemptions from duties, shall as far 88 may be apply in relation to the levy and collection of the auxiltary duties of excise 15 leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that act or those rules as the case may be dillcontinuance of alt duty i for the year beginning on the 1st day of april, 1977 no cklty udder the central excises act or the customs tariff act 20 shall be levied in respect of salt manufactured in or imported into, india '!'be object of this short bill is to continue the existing tax structure for the flnancial yf!ar 1971-78 subject to certain modifications in relation to income-tax aad also to continue for that financial year the provisions elulbline companies to make deposits with the industrial development buk of india in lieu of payment of surcbarp on income-tax 2 clause 2 of the b111 deals with income-tax the rates of incometax aad aurcharp which were specified in part m of the first schedule to the flnance act 1976 for the purpose of deduction of tax at source from salaries during the financial year 1976-77 for computidj the "advance tax" payable during that financial year in relation to current incomes aad for certain special purposes are proposed'to be continued for the purpose of assessments for the assessment ye:lr 1977-78 further the same rates are proposed to be continued also for tbe purpose of deduction of tax at source from salaries during the f1nancial year 1977-78 for computing the "advance tax" payable during that financial year on current incomes and also for the said special purposes under the provisions of the finance act 1976 the net agricultural lncome <as computed in accordance with the rules contained in part iv of the first schedule to that act) in the case of individuals wndu undivided families, etc, is taken into account for determlnidj the rates of incometax applicable to their non-agricultural income these provisions are proposed to be continued for the p'ii'poses of determining the rates of income-tax applicable to the non-agrlculturalincome for the assessment year 1977-78, as also for computation of the "advance tax" and cbargldj of income-tax on current incomes in cases where accelerated assessments are required to be made during the financial year 1977-78 the rules relating to computation of net agricultural income are proposed to be modified to secure that the unabsorbed loss in agriculture for the previous year relevant to the assessment year 1976-77 is also set off against the agricultural income for the previous year relevant to the assessment year 1977-78 aad the unabsorbed loss in respect of the previous year relevant to the assessment year 1977-78 is set ou in determinidg the net agricultural income for the purposes of payment of "advance tax" during the financial year 1977-78 the rates for deduction of tax at source during the financial year 1976-77 from incomes other than salaries specified in part n of the first schedule to the finance act 1976 are also proposed to be continued for deduction of tax at source from such incomes duridg the financial year 1977-78 clause 2 of the bill accordingly proposes to apply to the financial year 1977-78 the provisions of section 2 of, and the first schedule to the finance act, 1976 with consequential and other necessary modifications  3 clauses 3, 4 and 5 deal with indirect taxesclause 3 seeks to levy up to 31st day of march, 1978 auxiliary duties of customs on all imported goods at the rate of twenty per cent of their value clause 4 seeks to levy up to 31st day of march, 1978, auxiliary duties of excise on all excisable goods at the rate of twenty per cent of their value clause 5 provides that salt shall be duty free for another year new delli; the 28111 march 1977 am • patel (copy of letter no f 3(9)-b(d)/77 dated the 28th march, 1977 from shrl r m patel, minister m pljuldce, to the 8ecretary-oeneral, lok sabba) the vlce- pre81dent actidg a8 pre8ldent, bavldg been informed of the 8ubject matter of the proposed bul, recommends under article 117(1) and (3) read with article 274(1) of the con8titution of lddla, the ldtrociuction of the f1nance blll, 1977 to the lok sabba and also recommedds to the lot &abba the con8ideration of the bill 2 the blll will be lntroduced in the lok sabba 1mmed1ately after the pre8entation of the budpt on the 28th karch, 1877  financial memoranduma thi bill seek to continue the exllltidg tax stnacture for the fldldclal year 1877-78, ilubject to certain modulcatiod8 in relation to income-tax, the bill, if enacted and broupt 1dto operation, \yould dot lnvol ve any additional expenditure from the conaoudated fudd of india udder bub-section (8) of section 2 of the fid8llce act, 1976, as proposed to be substituted and applied by clause 2 of the bill, the central government is being empowered to frame, by notification in the official gazette, a scheme to enable companies to make, during the fid8llcial year commencing on the 1st day of april, 1977, in lieu of payment of surcharge on income-tax, deposits with the industrial development bank of india the scbeme will contain details as to the manner of making sucb depomts, the periods for which sucb deposits may be made and otber connected matters 2 the delegation of legislative power under the aforementioned provision relates to matters of procedure or administrative detail bence, the delegation of legislative power is of a normal cbaracter  billto continue for the financial year 1977-78 the existing rates of income-tax with certain modifications and to provide for the continuance of the provialona relating to auxiuary duties of customs and excise and the discontinuance of the duty on salt for the said year (9sri h m petel, minister of f  ") 